WHEFA Annual Report 2015

2015Annual Report

Since its creation in 1979, WHEFA has completed 790 financings

totaling more than $22.1 billion and representing more than

$9.4 billion in new money capital projects, supporting more than

5,300 jobs on average annually in the Badger State.

Executive Director’s LetterOn behalf of the Members and staff of the Wisconsin Health and Educational Facilities Authority (WHEFA), I am pleased to present this Annual Report of WHEFA activity for our fiscal year ending June 30, 2015 (FY2015).

By the Numbers - FY2015

This annual report highlights another successful year in WHEFA’s 36-year history. During FY2015, WHEFA completed 37 tax-exempt bond financings totaling more than $1.47 billion on behalf of various Wisconsin non-profit institutions (including certain of their out-of-state affiliates).

WHEFA new money capital financings in FY2015 helped to provide an estimated 829 new jobs at the financed facilities and an estimated 2,134 jobs related to the construction of such new capital projects. Additionally, WHEFA refinancings in FY2015 enabled certain borrowers to save more than $59 million in future interest payments by providing them with access to lower cost refinancing of their outstanding debt. In total, 30 different non-profit borrowers, employing over 39,000 persons, benefited from the issuance of tax-exempt bonds by WHEFA in FY2015.

WHEFA is a Great Resource

As I travel the state and talk and meet with various organizations, my overall message is clear – WHEFA is a great, no-cost resource. Please let us know how we can help.

Our mission is simple: to assist Wisconsin’s non-profit institutions to obtain access to low-cost capital in order to finance or refinance their building and equipment improvements and expansion needs. Regardless of whether or not WHEFA is involved in the ultimate issuance of bonds for a particular project or refinancing, WHEFA is a wonderful resource when researching and evaluating various financing options. I encourage all organizations to call when contemplating a borrowing for a new money project or refinancing. Irrespective of the ultimate plan of finance, WHEFA is here to help.

Looking Forward - FY2015 and Beyond

Having completed 790 financings totaling over $22.1 billion in the past 36 years, the Members and staff are proud of our accomplishments and we all look forward to continuing to fulfill our mission of ensuring competitive access to low-cost capital financings for all Wisconsin non-profit institutions for many years to come.

Best regards,

Dennis P. ReillyExecutive Director

“This fiscal year, WHEFA helped create 829 new jobs in Wisconsin by providing non-profit organizations with access to low-cost capital. We look forward to continuing our partnership with them as more non-profit institutions seek to expand and create jobs right here in Wisconsin.”

- Governor Scott Walker

ContentsMission & Vision Statements ............................................................................. 2 Location of WHEFA Borrowers ........................................................................ 24 - 25WHEFA ..................................................................................................................... 2 - 3 Charts of WHEFA Activity .................................................................................. 26 - 28WHEFA Members, Staff and Consultants ....................................................... 3 - 4 Independent Auditors’ Report ........................................................................ On CDThe Year in Review ............................................................................................... 5 - 23 Financial Statements ......................................................................................... On CD

Mission StatementThe Wisconsin Health and Educational Facilities Authority (“WHEFA”) assists all eligible borrowers to obtain and maintain access to the broadest range of low cost, private capital market funding possible.

Vision StatementWHEFA will be an ally to borrowers fulfilling its mission by providing prompt, user friendly services including communication, education, and advocacy directed towards borrowers, lenders, government, the public, trade associations, and financing team participants.

WHEFA’s ability to be successful is dependent on effective Member leadership and a staff that can provide operational excellence. This success will require Members and staff who are well informed about the industries served and who stay abreast of financing needs and options; they will exercise strong oversight using performance indicators to ensure strategic objectives are being identified and met; and employee policies and incentives that provide for the recruitment and retention of high quality, experienced staff to implement programs and services.

WHEFAWHEFA, created by the Legislature in 1973 (Chapter 231, Wisconsin Statutes), has been providing active capital financing assistance to Wisconsin non-profit health care institutions since 1979. Over the years, the Wisconsin legislature has expanded the types of non-profit entities eligible for WHEFA financing assistance. In July 2013, WHEFA’s charter was permanently expanded to permit all Wisconsin 501(c)(3) non-profit organizations access to WHEFA’s low-cost capital financing.

Funds for each project financed by WHEFA are obtained through the sale of revenue bonds of WHEFA. Bonds are sold to institutional lenders in “direct placement” transactions and to individual and institutional investors in “public offerings”. Bond sale proceeds are loaned by WHEFA to the borrowing institution or project sponsor. No state or other public funds are used.

WHEFA’s bonds are payable solely out of loan repayments from the borrowing institution, sponsor or guarantor. They are not a debt, liability, or “moral” obligation of the State of Wisconsin or any of its political subdivisions. WHEFA has no taxing power.

The credit supporting any WHEFA bond issue is the credit of the borrowing institution involved. The availability of financing and its terms and conditions depends in each case upon the credit-worthiness of each borrower. Interest paid on WHEFA bonds is exempt from federal income taxation, resulting in materially lower financing

2 WHEFA 2015 Annual Report

WHEFA 2015 Annual Report 3

WHEFA (continued)

costs to the borrowing institution. Interest on bonds issued by WHEFA is not exempt from present Wisconsin income taxation, with limited exception, or unless such exemption is already available on bonds eligible to be issued for the same purpose through another Wisconsin conduit issuer.

WHEFA MembersRichard Canter, ChairpersonMr. Canter, a resident of Milwaukee, Wisconsin, is the former Senior Vice President for Strategy and Corporate Affairs at Wheaton Franciscan Healthcare, Inc., Glendale. Mr. Canter was appointed as a Member in 2008. His current term expired June 30, 2015 and he continues to serve until reappointed or until a successor is appointed by the Governor and confirmed by the Wisconsin State Senate.

Tim Size, Vice-ChairpersonMr. Size, a resident of Madison, Wisconsin, is the Executive Director at the Rural Wisconsin Health Cooperative, Sauk City. Mr. Size was appointed as a Member in 1988. His current term expires June 30, 2018.

James Dietsche, MemberMr. Dietsche, a resident of DePere, Wisconsin, is Chief Financial Officer at Bellin Health, Green Bay. Mr. Dietsche was appointed as a Member in 2012. His current term expires June 30, 2019.

Kevin Flaherty, MemberMr. Flaherty, a resident of Milwaukee, Wisconsin, is Vice President/Relationship Manager in the Asset-Backed Lending Division of Associated Bank, NA, Milwaukee. Mr. Flaherty was appointed as a Member in 2008. His current term expires June 30, 2017.

Paul Mathews, MemberMr. Mathews, a resident of Milwaukee, Wisconsin, is the President and CEO at the Marcus Center for the Performing Arts, Milwaukee. Mr. Mathews was appointed as a Member in 2014. His term expires June 30, 2021.

Jim Oppermann, MemberMr. Oppermann, a resident of Brookfield, Wisconsin, is the Senior Vice President for Finance and Management at Alverno College, Milwaukee. Mr. Oppermann was appointed as a Member in 2015 to fill a term that expires June 30, 2016 and serves pending confirmation by the Wisconsin State Senate.

Robert VanMeeteren, MemberMr. VanMeeteren, a resident of Reedsburg, Wisconsin, is President/CEO of Reedsburg Area Medical Center, Reedsburg. Mr. VanMeeteren was appointed as a Member in 2011. His current term expires June 30, 2020.

WHEFA StaffDennis P. Reilly, Executive DirectorMr. Reilly has been the Executive Director at WHEFA since October 2012. He began his career with WHEFA in 1996 and most recently served as the Associate Executive Director. Mr. Reilly has been a member of the staff for 19 years.

Tanya L. Coppersmith, Manager of Operations & FinanceMs. Coppersmith has been the Manager of Operations and Finance at WHEFA since 2010. She began her career with WHEFA in 1987 and most recently served as the Operations and Finance Analyst. Ms. Coppersmith has been a member of the staff for 28 years.

Tatiana M. Graver, Manager of FinanceMs. Graver has been the Manager of Finance at WHEFA since August 2012. Ms. Graver has been a member of the staff for three years.

Stephanie L. Schirripa, Executive AssistantMs. Schirripa has been the Executive Assistant at WHEFA since May 2015. She began her career with WHEFA in 2002 and most recently served as the Senior Administrative Assistant. Ms. Schirripa has been a member of the staff for 13 years.

WHEFA ConsultantsQuarles & Brady LLPGeneral CounselQuarles & Brady LLP has been General Counsel to WHEFA since 1979.

Schenck SCIndependent AuditorsSchenck SC has been Independent Auditors to WHEFA since 2001.



The Year In ReviewWHEFA is pleased to submit its report on activities for its fiscal year 2015 (July 1, 2014 through June 30, 2015). 2015 represents WHEFA’s 36th year of fulfilling its mission of assisting Wisconsin’s non-profit institutions to obtain access to low-cost capital in order to finance or refinance their building and equipment improvements and expansion needs.

During fiscal year 2015, 37 financings totaling $1,478,417,098 were successfully completed. As of June 30, 2015, WHEFA has cumulatively completed 790 financings totaling over $22.1 billion.

Financing highlights for the fiscal year ending June 30, 2015 include:

● $445,731,520 (30%) was issued for new capital projects.

● $1,032,685,578 (70%) was issued for refinancing existing debt.

● 11 public placements totaling $726,181,000.

● 26 private placements totaling $752,236,098.

● 22 financings totaling $715,473,598 had a variable or reset interest rate.

● 15 financings totaling $762,943,500 had a fixed interest rate.

● 8 financings for new capital only.

● 15 financings for refinancing only.

● 14 financings for both refinancing and new capital.

● 6 financings totaling $141,894,964 was issued for the following first time borrowers:

○ Dickson Hollow (Menomonee Falls)

○ Kirkland Crossings (Pewaukee)

○ Spooner Health System (Spooner)

○ The Cumberland Memorial Hospital and Extended Care Unit (Cumberland)

○ Woodland Hill Senior Housing (Hudson)

○ Woodside Senior Communities (Green Bay)

The Year In Review (continued)

30 different non-profit borrowers benefited from the bond proceeds during fiscal year 2015, including:


● 3 Other Facilities:

○ Goodwill Industries of Southeastern Wisconsin

○ Riverfront Foundation and Riverfront Activity Center

○ Sixteenth Street Community Health Centers

● 5 Educational Facilities:

○ Alverno College x 2

○ Carthage College

○ Edgewood College

○ Lawrence University of Wisconsin

○ The Medical College of Wisconsin x 2 ● 7 Multi-Site Acute Care Facilities:

○ Aspirus x 2

○ Bellin Memorial Hospital

○ Hospital Sisters Services

○ ProHealth Care x 2

○ Rogers Memorial Hospital

○ ThedaCare x 2

○ Wheaton Franciscan Services

● 5 Single-Site Acute Care Facilities:

○ The Cumberland Memorial Hospital and Extended Care Unit

○ Divine Savior Healthcare

○ Fort HealthCare x 2

○ Spooner Health System

○ Vernon Memorial Healthcare

● 10 Long-Term Care Facilities:

○ All Saints Assisted Living Center

○ Dickson Hollow

○ Felician Services

○ Franciscan Sisters of Christian Charity Sponsored Ministries

○ Kirkland Crossings

○ Marquardt Village x 2

○ Sheboygan Senior Community

○ Wisconsin Illinois Senior Housing

○ Woodland Hill Senior Housing

○ Woodside Senior Communities


INDIVIDUAL BOND ISSUES FOR THE FISCAL YEAR ENDING JUNE 30, 2015

$13,000,000 Woodside Senior Communities Close Date: July 11, 2014

This project will create 20 permanent jobs with an annual payroll of $400,000, as well as 25 construction jobs. 320 jobs will be retained with an annual payroll of $8,040,000. Woodside Senior Communities employs 155 full-time equivalents.

“Our ability to access tax-exempt bond financing for this deal played a vital role in our ability to

successfully reposition our senior living campus. Partnering with WHEFA was a seamless process

and the services we received were excellent.”

- Scott Ross, Executive Director, Woodside Senior Communities

Woodside Senior Communities is comprised of three corporations serving Green Bay and the surrounding communities: Bay Area Lutheran Homes, Inc. which owns Woodside Lutheran Home, a 130-bed skilled nursing and rehabilitation facility, and Woodside Manor, a 97-unit community based residential facility; Woodside Oaks, Inc. which owns Woodside Oaks, a 75-unit independent senior living facility; and Woodside Haven Inc. which owns Woodside Haven, a 24-unit independent senior living facility for low-income tenants.

Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction, improvement, remodeling and equipping of Woodside Senior Communities’ skilled nursing facility, community based residential facility and other senior living facilities, including the construction and equipping of an addition to its existing 97-unit CBRF (known as Woodside Manor) to add 20 memory care units, and the renovation and remodeling of its existing 130-bed skilled nursing facility (known as Woodside Lutheran Home) to renovate certain resident units, to provide a new rehabilitation center and new therapy area, and to make certain other capital expenditures related to the operations of Woodside Senior Communities’ facilities. This federally tax-exempt financing process has enabled Woodside Senior Communities to operate more effectively by financing its capital expenses at a lower interest rate (initially 3.196%).

$11,486,000 Sheboygan Senior Community Close Date: July 9, 2014

This project will create 6 permanent jobs with an annual payroll of $112,000, as well as 89 construction jobs. 124 jobs will be retained

with an annual payroll of $3,500,000.

“WHEFA’s exceptional and knowledgeable staff has assisted us through a successful financial journey. Sheboygan Senior Community is very appreciative for their outstanding service

which provides us the tax-exempt financing we needed to build our replacement Facility. A Facility that will carry on its traditions but also will begin a new, updated way of delivering care. A way which will provide our Resident’s a more home-like environment with the comforts they deserve for many, many years to come.”

- Joan Kleist, Executive Director, Sheboygan Senior CommunitySheboygan Senior Community employs

84 full-time equivalents.

Sheboygan Senior Community has been serving the Sheboygan community with senior living services meeting the full continuum of senior care needs since 1962.

Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction, and equipping of an approximately 70,000 square-foot replacement skilled nursing (60 beds) and community based residential facility (25 beds) on a 38.5 acre parcel of land in the Town of Sheboygan for Sheboygan Senior Community. The replacement skilled nursing facility will be comprised entirely of private rooms and will be arranged in a contemporary neighborhood design with smaller scale household units. This federally tax-exempt financing process has enabled Sheboygan Senior Community to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.00%).



$11,554,244 ThedaCare Close Date: August 6, 2014

“Each of our WHEFA deals has involved unique components, but the reliability of having a responsive, helpful, and professional WHEFA team has consistently been a pleasure to work with.”

- Keith Taubel, Controller, ThedaCare, Inc.

ThedaCare employs approximately 5,000 full-time equivalents.

ThedaCare is a community health system consisting of seven hospitals, numerous clinics and related services including home care and senior living. The hospitals in the system include Appleton Medical Center in Appleton, Wisconsin; Theda Clark Medical Center in Neenah, Wisconsin; New London Family Medical Center in New London, Wisconsin; Shawano Medical Center in Shawano, Wisconsin; Riverside Medical Center in Waupaca, Wisconsin; Community Health Network in Berlin, Wisconsin; and Wild Rose Community Memorial Hospital in Wild Rose, Wisconsin.

Bond financing facilitated by WHEFA was used to help ThedaCare refinance bonds previously issued by WHEFA in 2004 on behalf of Community Health Network, Inc. (“CHN”) in Berlin, Wisconsin, in connection with the affiliation of CHN with ThedaCare. The net present value savings following the refinancing of the prior bonds was approximately $4.3 million. This federally tax-exempt financing process has enabled ThedaCare to operate more effectively by financing its capital expenses at a lower interest rate (initially 1.065%).

$26,772,390 Alverno College Close Date: August 8, 2014

This project will create 25 permanent jobs with an annual payroll of $1,250,000, as well as 250 construction jobs. 165 jobs

will be retained with an annual payroll of $8,250,000. Alverno College employs 450 full-time equivalents.

“WHEFA’s assistance and service throughout the process were invaluable. With their help, we’ll provide the next generation of Alverno

students with the classrooms, collaboration spaces and advanced learning technologies they need to develop their abilities to the fullest.”

- James Oppermann, Senior Vice President – Finance and Management Services, Alverno College

Alverno College, a four-year, independent, Catholic liberal arts college for women, was founded by the School Sisters of St. Francis in 1887. Alverno College is located on a 46-acre campus on the southwest edge of Milwaukee, Wisconsin.

Bond financing facilitated by WHEFA was used to help refinance bonds previously issued by WHEFA in 1997 for Alverno College and finance the acquisition, construction, renovation, remodeling and equipping of certain of Alverno College’s educational facilities. The project is Alverno College’s largest expansion and renovation in its 126-year history and includes nine new high-tech classrooms; a state-of-the-art nursing simulation center; an expanded commons that will provide the Alverno community a strong center for students, faculty and staff to collaborate; a new “Student Main Street” that will combine critical student services in one easy-to-access location; a larger food service area; a coffee shop and private group study rooms. In addition, the current conference center in the Sister Joel Read Center will be expanded. This federally tax-exempt financing process has enabled Alverno College to operate more effectively by financing its capital expenses at lower interest rates (initially 0.90%-2.15%).



$51,785,000 Rogers Memorial Hospital Close Date: August 15, 2014

Rogers Behavioral Health System employs approximately 860 full-time equivalents.

“The professionals at WHEFA were an invaluable part of our financing team, bringing deep insight, strong support and broad expertise to the transaction. Through WHEFA,

Rogers created a solid capital foundation supporting increased access to the highest quality behavioral health care so that the patients, families and communities we serve can experience hope and healing in their lives.”

- Michael Hedrick, Chief Financial Officer, Rogers Behavioral Health System

The Brown Deer location project will create 300 permanent jobs with an annual payroll

between $8 million to $12 million.

Rogers Memorial Hospital owns and operates mental health facilities offering child, adolescent, adult care and specialized residential programming, offering treatment programs at five Wisconsin locations: Oconomowoc, West Allis, Madison, Kenosha and Brown Deer.

Bond financing facilitated by WHEFA will help finance certain capital expenditures of Rogers Memorial Hospital, including the renovation and equipping of an approximate 28-bed obsessive compulsive disorder residential facility located on the Oconomowoc campus; the acquisition, construction, renovation and equipping of an approximate 56-inpatient unit psychiatric hospital located in Brown Deer; and the acquisition, construction, renovation and equipping of a building to house day treatment and intensive outpatient programs located adjacent to the Brown Deer campus. Proceeds of the bond financing were also used to refinance bonds previously issued by WHEFA in 2000 and 2004 on behalf of Roger’s Memorial Hospital and to refinance other outstanding indebtedness of Rogers Memorial Hospital. This tax-exempt financing process has enabled Rogers Memorial Hospital to operate more effectively by financing its capital expenses at lower interest rates (2.00%-5.00%).

$35,900,000 Felician Services Close Date: September 2, 2014

The St. Joseph Academy project will create 8 permanent jobs with an annual payroll of $266,000, as well as 20 construction jobs. All 86 full-time equivalents will be

retained with an annual payroll of $2.7 million.

“All of us at Felician Services and its Sponsored Ministries are very grateful for all of the assistance provided by

WHEFA and its staff throughout its recent bond financing process. In addition, their suggestions on improving the flexibility for future bond financings will be invaluable as we look in the future to maintaining and expanding the high quality services we provide to the communities

we serve, in particular to the poor and underserved.”

- Joe Parrillo, Chief Financial Officer, Felician Services, Inc. Felician Services employs approximately 275 full-time equivalents across its ministries in Wisconsin.

Felician Services, Inc., an Illinois non-profit corporation, was incorporated in December 1989 by the Congregation of the Sisters of Saint Felix of Cantalice, Chicago Province. Felician Services is the parent organization/sole corporate member of 24 sponsored ministries in various states, including Wisconsin, and provides governance and support services to its sponsored ministries. Felician-sponsored ministries provide high quality long-term care and education services to their communities with special focus on serving low-income populations.

Bond financing facilitated by WHEFA was used to help Felician Services refinance bonds previously issued by WHEFA in 2007 and 2008 on behalf of Felician Village and St. Mary’s Home for the Aged, located in Manitowoc. Bond proceeds will also help finance the costs of the construction of an approximate 22,500 square foot addition to the existing educational facilities of St. Joseph Academy in Milwaukee, including adding ten classrooms and a gym. This federally tax-exempt financing process has enabled Felician Services to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.92%).



$16,049,964 Kirkland Crossings Close Date: September 4, 2014

“Kirkland Crossings and Presbyterian Homes and Services very much appreciates the opportunity to work with WHEFA to facilitate the tax-exempt financing that closed in September, 2014. Using WHEFA as the conduit to issue the new bonds was a smooth process that closed quickly. Lowering our cost of capital will enhance our ability to keep rents affordable and the campus in Pewaukee up to date and marketable for years to come.”

- Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services Kirkland Crossings employs approximately 48 full-time equivalents.

Kirkland Crossings, Inc., an affiliate of Presbyterian Homes and Services, Inc. (“PHS”), offers senior living, assisted living and memory care on its Pewaukee, Wisconsin campus, which includes 22 independent living townhomes, 60 independent living apartments, and 60 assisted living units with supportive services and memory care with a dedicated staff. PHS, based in St. Paul, Minnesota, is a non-profit, faith-based organization providing a broad array of high quality housing choices, care and service options for older adults. 5,800 employees serve nearly 24,000 older adults through 40 PHS-affiliated senior living communities in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service division of PHS.

Bond financing facilitated by WHEFA was used to help Kirkland Crossings refinance certain of its outstanding indebtedness which originally financed certain of its senior residential facilities in Pewaukee, Wisconsin. The net present value savings following the refinancing was approximately $2.3 million. This federally tax-exempt financing process has enabled Kirkland Crossings to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.88%).

$44,235,000 Dickson Hollow Close Date: October 15, 2014

“Dickson Hollow and Presbyterian Homes and Services very much appreciate the opportunity to again work with WHEFA to facilitate the tax-exempt financing that closed in October, 2014. Using WHEFA as the conduit to issue the bonds was a smooth process that closed quickly. Borrowing on a tax-exempt basis

through WHEFA will keep our cost of capital low and help us build a beautiful campus in Menomonee Falls. It will also enhance our ability to keep rents affordable and the campus marketable for years to come.”

- Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services

This project will create 50 permanent jobs with an annual payroll of $1.5 million, as well as 100 construction jobs. Dickson Hollow

expects to employ 33 full-time equivalents.

PWH Menomonee Falls, Inc. (“PWH”) is an affiliate of Presbyterian Homes and Services, Inc. (“PHS”). PHS, based in St. Paul, Minnesota, is a non-profit, faith-based organization providing a broad array of high quality housing choices, care and service options for older adults. 5,800 employees serve nearly 24,000 older adults through 40 PHS-affiliated senior living communities in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service division of PHS.

Bond financing facilitated by WHEFA will help PWH finance the acquisition, construction and equipping of a new comprehensive senior campus in Menomonee Falls, Wisconsin to be known as Dickson Hollow that will provide residential rental housing and related services to seniors and that will consist of 120 independent living apartments expected to be licensed as a residential care apartment complex, 42 assisted living units, and 18 memory care units expected to be licensed as a community based residential facility, and a town center. This tax-exempt financing process has enabled PWH to operate more effectively by financing its capital expenses at lower interest rates (2.75%-5.50%).



$21,200,000 Spooner Health System Close Date: October 23, 2014

Spooner Health System employs 129 full-time equivalents.

Spooner Health SystemThis project will create 13 permanent jobs with an annual

payroll of $379,000, as well as 75 construction jobs.

146 jobs will be retained with an annual payroll of $7,720,000.

“Securing tax-exempt financing allows us to continue offering many employment opportunities with great economic impact for our community. We will also be able

to continue providing high quality care and excellent service to our patients.”

- Michael Schafer, Chief Executive Officer, Spooner Health System

“WHEFA helped us to obtain tax-exempt financing for a replacement hospital we are building in Spooner. Working with WHEFA has been a

great experience. They offered a vast amount of knowledge and a smooth process for helping us acquire the financing we needed for our project.”

- Rebecca Busch, Chief Financial Officer, Spooner Health System

Spooner Health System, Inc. has been dedicated to caring for and improving the health of the citizens of Spooner and surrounding communities in northwest Wisconsin since 1955.

Bond financing facilitated by WHEFA will help finance the acquisition, construction and equipping of an approximately 82,500 square foot, 20-bed replacement critical access hospital. The replacement hospital will be located on an approximately 58-acre parcel of property in Spooner, Wisconsin. Construction started in late September 2014 with an anticipated occupancy in May 2016. The replacement hospital will provide inpatient and outpatient services similar to those currently offered in the existing facility. This federally tax-exempt financing process has enabled Spooner Health System to operate more effectively by financing its capital expenses at a lower interest rate (initially 3.65%).

$2,925,000 Cumberland Memorial Hospital and Extended Care Unit Close Date: October 28, 2014

“WHEFA was a valuable part of our financing team. We are grateful to WHEFA and their helpful staff for working with us on this project and helping us obtain tax-exempt financing to expand the services

we are able to offer our patients and keep healthcare local.”

- Angie Martens, Chief Financial Officer, Cumberland Healthcare This project will create 2 permanent jobs with an annual payroll of $110,000. Cumberland Healthcare employs approximately 180 full-time equivalents.

The Cumberland Memorial Hospital and Extended Care Unit, Inc. (“Cumberland Healthcare”) operates of a 25-bed acute care critical access hospital, a 50-bed skilled nursing home, and a 20-unit elderly housing facility in Cumberland, Wisconsin.

Bond financing facilitated by WHEFA was used to help refinance certain outstanding indebtedness of Cumberland Healthcare and finance the relocation of the hospital’s pharmacy and other general capital expenditures and equipment acquisitions. This federally tax-exempt financing process has enabled Cumberland Healthcare to operate more effectively by financing its capital expenses at a lower interest rate (3.03%).



$35,505,000 Lawrence University of Wisconsin Close Date: November 3, 2014

“Lawrence University’s partnership with WHEFA to issue tax-exempt bond financing ensures that we are able to provide a high quality of housing, invest in our scholar athletes

and be an efficient and responsible energy consumer. Each of these is an important component of a Lawrence education and the students and families who invest in it.”

- Christopher Lee, Vice President for Finance and Administration, Lawrence University of WisconsinThis project will create more than 165 construction jobs.

Lawrence University of Wisconsin employs 525 full-time equivalents.

Founded in 1847, Lawrence University of Wisconsin has a current enrollment of 1,500 students from nearly every state and 50 countries outside the U.S. Lawrence University of Wisconsin is located on an 84-acre campus in the City of Appleton, WI.

Bond financing facilitated by WHEFA was used to help refinance bonds previously issued by WHEFA on behalf of Lawrence University in 2009. Proceeds of the bond financing will also finance the acquisition, construction, renovation and equipping of certain of its educational and related facilities, including the renovation of an existing residence hall to add additional student rooms, the renovation of the existing football stadium, certain infrastructure capital improvements at the University’s facilities and other general capital expenditures and equipment acquisitions. This federally tax-exempt financing process has enabled Lawrence University to operate more effectively by financing its capital expenses at a lower interest rate (initially 0.98%).

$9,950,000 Divine Savior Healthcare Close Date: November 7, 2014

“Our ability to secure tax-exempt financing was enhanced by the support and expertise the WHEFA staff brought to our financing team. Accessing the tax-exempt marketplace

has enabled us to continue improving access to quality, high valued services to our Community, the cornerstone of our strategic plan. As with our previous financing

issues, working with the WHEFA staff on our recent placement has been a pleasure.”

- Marlin “Pete” Nelson, Vice President of Finance, Divine Savior Healthcare, Inc.

This project will create 11 permanent jobs with an annual payroll of $340,500, as well as 100 construction jobs. 107 jobs will be retained with an annual payroll of $8,598,300.

Divine Savior Healthcare employs 701 full-time equivalents.

Incorporated in 1967, Divine Savior Healthcare, Inc. owns and operates an acute care hospital in the City of Portage, Wisconsin with 73 approved beds, 52 of which are staffed. Divine Savior Healthcare also operates an 83 licensed bed extended care facility which includes an additional 40-bed assisted living unit on the same campus of the hospital. Additionally, Divine Savior Healthcare owns and operates ambulatory care facilities in the neighboring communities of Pardeeville and Westfield and also operates an industrial medicine clinic, a home health agency and an ambulance service in Portage.

Bond financing facilitated by WHEFA will help finance costs associated with the acquisition, construction and equipping of a new medical office building and rehabilitation facility, and certain remodeling and improvements to Divine Savior Healthcare’s existing hospital facility, including the expansion of the surgery facilities at the hospital. This federally tax-exempt financing process has enabled Divine Savior Healthcare to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.30%).



$180,000,000 Hospital Sisters Services Close Date: November 12, 2014

“Working with WHEFA on tax-exempt financing has allowed us to effectively coordinate care and lower our cost of funds, which will ultimately benefit our patients and communities served. WHEFA

was easy and enjoyable to work with and were able to help streamline our financing process.“

- Mike Cottrell, Chief Financial Officer, Hospital Sisters Services, Inc.Hospital Sisters Services employs approximately

3,946 full-time equivalents in Wisconsin.

Hospital Sisters Services, Inc., an Illinois not-for-profit corporation, is the sole member of 13 tax-exempt corporations (referred to collectively as the Hospital Affiliates) that own and operate acute care hospitals, eight located in Illinois and five located in Wisconsin. The Hospital Affiliates located in Illinois currently are licensed to operate 1,497 acute care beds, and the Hospital Affiliates located in Wisconsin currently are approved for 1,421 acute care beds. The Wisconsin Hospital Affiliates include St. Joseph’s Hospital in Chippewa Falls; Sacred Heart Hospital in Eau Claire; St. Mary’s Hospital Medical Center in Green Bay; St. Vincent Hospital in Green Bay; and St. Nicholas Hospital in Sheboygan.

Bond financing facilitated by WHEFA was used to help Hospital Sisters Services refinance bonds previously issued by WHEFA in 2012 on behalf of certain Hospital Affiliates located in Wisconsin. Proceeds of the bond financing were also used to refinance certain other bonds previously issued in 2012 on behalf of certain Hospital Affiliates located in Illinois. This federally tax-exempt financing process has enabled Hospital Sisters Services to operate more effectively by refinancing its capital expenses at low interest rates (0.23%-3.35%).

$44,485,000 Woodland Hill Senior Housing Close Date: November 13, 2014

“Woodland Hill and Presbyterian Homes and Services very much appreciates the opportunity to again work with WHEFA to facilitate the tax-exempt financing that closed in November, 2014. Using WHEFA as

the conduit to issue the bonds was a smooth process that closed quickly. Borrowing on a tax-exempt basis through WHEFA will keep our cost of capital low and help us build a beautiful campus in Hudson. It will also enhance our ability to keep rents affordable and the campus marketable for years to come.”

- Mark Meyer, Chief Financial Officer, Presbyterian Homes and Services

This project will create 50 permanent jobs with an annual payroll of $1.54 million, as well as 100 construction jobs. Woodland Hill

Senior Housing expects to employ 35 full-time equivalents.

Hudson Senior Housing, LLC (“Hudson Senior Housing”) and its sole member, Presbyterian Homes, Housing and Assisted Living, Inc. are affiliates of Presbyterian Homes and Services (“PHS”). PHS, based in St. Paul, Minnesota, is a non-profit, faith-based organization providing a broad array of high quality housing choices, care and service options for older adults. 5,800 employees serve nearly 24,000 older adults through 40 PHS-affiliated senior living communities in Wisconsin, Minnesota and Iowa and through Optage®, the home and community service division of PHS.

Bond financing facilitated by WHEFA will help Hudson Senior Housing finance the acquisition, construction and equipping of a new comprehensive senior campus in Hudson, Wisconsin to be known as Woodland Hill Senior Housing that will provide residential rental housing and related services to seniors consisting of 95 independent living apartments expected to be licensed as a residential care apartment complex, 46 assisted living units and 19 memory care units expected to be licensed as a community based residential facility, a dialysis clinic and a town center. This tax-exempt financing process has enabled Hudson Senior Housing to operate more effectively by financing its capital expenses at lower interest rates (2.00%-5.25%).


$36,065,000 Goodwill Industries of Southeastern Wisconsin Close Date: November 25, 2014

“It has been very easy to work with WHEFA in securing tax-exempt financing for Goodwill’s project investments. Their efforts have provided Goodwill with an opportunity to offer

additional services for individuals with disabilities and disadvantages seeking employment.”

- Tammy Jung, Vice President and Chief Financial Officer, Goodwill Industries of Southeastern Wisconsin, Inc. This project will create 25-30 permanent jobs

and approximately 400 jobs will be retained.

Goodwill Industries of Southeastern Wisconsin, Inc. is the largest of more than 165 Goodwill organizations in North America. More than 6,500 Goodwill Industries of Southeastern Wisconsin employees work in over 90 locations throughout 23 counties in southeastern Wisconsin and metropolitan Chicago. Goodwill Industries of Southeastern Wisconsin has been providing services since 1919, and last year served over 72,000 individuals with disabilities and disadvantages who were seeking independence through job training and work opportunities.

Bond financing facilitated by WHEFA was used to help refinance bonds for Goodwill Industries of Southeastern Wisconsin previously issued by WHEFA in 2005 and 2009. Proceeds of the bond financing will also finance the acquisition, construction, renovation, remodeling and equipping of a 154,000-square-foot facility in Greendale, Wisconsin. The new location enables Goodwill Industries of Southeastern Wisconsin to consolidate programs and services at three buildings into one, and more efficiently fulfill its mission of providing training, employment and supportive services for people with disabilities and disadvantages who seek greater independence. This federally tax-exempt financing process has enabled Goodwill Industries of Southeastern Wisconsin to operate more effectively by financing its capital expenses at lower interest rates.

$18,615,000 Vernon Memorial Healthcare Close Date: December 9, 2014

“Tax-exempt financing can be a daunting undertaking for any organization. Healthcare organizations in Wisconsin are extremely fortunate to have WHEFA to assist with the process, and it was great to work with them again during our recent re-financing. The staff was professional,

knowledgeable and extremely helpful as we worked through the process. They were always available and were instrumental in achieving a very positive outcome for our organization.“

- Mary Koenig, Chief Financial Officer, Vernon Memorial Healthcare, Inc.Vernon Memorial Healthcare employs approximately

420 full-time equivalents in Wisconsin.

Vernon Memorial Healthcare, Inc., incorporated in 1946, owns and operates a critical access designated acute care hospital located in the City of Viroqua, Wisconsin. Vernon Memorial Healthcare also owns and operates four physician clinics in La Farge, Soldiers Grove, Westby and Viroqua, Wisconsin.

Bond financing facilitated by WHEFA was used to help Vernon Memorial Healthcare refinance bonds previously issued by WHEFA in 2005. The net present value savings following the refinancing was approximately $2.58 million. This federally tax-exempt financing process has enabled Vernon Memorial Healthcare to operate more effectively by refinancing its capital expenses at lower interest rates (4.00%–5.00%).




$13,780,000 Wisconsin Illinois Senior Housing Close Date: December 15, 2014

“We have worked with WHEFA on 7 bond issues since 2006, and find the relationship to be incredibly beneficial. The staff are wonderful to work with, and for a smaller not-for-profit like WISH, WHEFA has

provided us with an opportunity to obtain the funds to carry out our mission of quality care and services for the elderly in mostly rural

Wisconsin locations. We consider them a valuable partner.”

- Robert Siebel, President, Carriage Healthcare Companies, Inc. as Managers for Wisconsin Illinois Senior Housing, Inc.

This project will create 12 permanent jobs with an annual payroll of $355,000, as well as approximately 35 construction jobs. 94 jobs will be retained with an annual payroll of $2,048,594.

Wisconsin Illinois Senior Housing employs 937 full-time equivalents in Wisconsin.

Wisconsin Illinois Senior Housing, Inc. (“WISH”) currently owns and operates eight skilled nursing facilities with a total of 482 licensed beds. Two of the skilled nursing homes are licensed for a total of 40 community based residential facility beds in addition to the skilled nursing beds. All of the WISH facilities are located in rural areas of Wisconsin, except for one facility in a northwestern suburb of Chicago, Illinois.

Bond financing facilitated by WHEFA will be used to help WISH finance costs associated with the renovation, remodeling and equipping of its East Troy Manor facility, including a new 16-bed, one-story, 11,500 square foot addition to its skilled nursing facility. Portions of the addition will be dedicated to short term care rehabilitation and hospice residents. Proceeds of the bond financing were also used to refinance bonds previously issued by WHEFA in 2006 for the benefit of WISH, the proceeds of which originally financed projects in Elkhorn and Wild Rose, Wisconsin. The net present value savings following the refinancing was approximately $2.0 million. This federally tax-exempt financing process has enabled WISH to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.85%).

$32,380,000 The Medical College of Wisconsin Close Date: December 16, 2014

“WHEFA is an important business partner for MCW and other higher education entities in Wisconsin. The access to tax-exempt debt allows MCW to reduce its cost of capital and enhance its academic facilities. The WHEFA team is

knowledgeable and they were supportive throughout the refinancing process.”

- Pamela J. Stanick, Controller, Medical College of Wisconsin, Inc.The Medical College of Wisconsin employs approximately 5,000 full-time equivalents.

The Medical College of Wisconsin, Inc. is a private, medical college which offers medical and graduate degrees and maintains multi-specialty clinical programs in which faculty physicians provide medical care. The Medical College of Wisconsin also performs research in numerous basic and clinical sciences. The Medical College of Wisconsin has a current enrollment of 1,208 students. The campus is located on approximately 33 acres on the Milwaukee Regional Medical Center campus in Milwaukee.

Bond financing facilitated by WHEFA was used to help The Medical College of Wisconsin refinance bonds previously issued by WHEFA in 2004 and 2010. The net present value savings following the refinancing was approximately $4.5 million. This federally tax-exempt financing process has enabled The Medical College of Wisconsin to operate more effectively by financing its capital expenses at lower interest rates (2.10%-2.36%).



$22,088,000 Marquardt Village Close Date: December 17, 2014

“The tax-exempt financing process was made easier due to the professionalism and efficiency of Dennis and his team which we greatly appreciate.”

- Matt Mauthe, Chief Executive Officer, Marquardt Village, Inc.

This project will create 18 permanent jobs with an annual payroll of $330,000, as well as 67 construction jobs. 75 jobs will be retained with an annual payroll of $2,625,000.

Marquardt Village employs 200 full-time equivalents.

Since 1969, Marquardt Village’s continuing care retirement community has been providing Watertown and the surrounding-area with housing and senior living facilities. Currently Marquardt Village, along with its affiliated entities, own and operate independent living apartments, assisted living apartments, a skilled nursing facility, as well as rehabilitation, home health, hospice, supportive home care, and lifeline services to those living in southeastern Wisconsin. Through Marquardt at Home, Marquardt Village also brings home health and hospice care to individuals living in private homes in the 8-county region surrounding Watertown.

Bond financing facilitated by WHEFA will be used to help Marquardt Village finance costs associated with the construction and equipping of a new 44-unit replacement assisted living facility, the construction of an approximately 29,000 square foot town center to be used by residents, and certain other renovations, remodeling and improvements to existing facilities. Proceeds were also used to refinance certain other outstanding debt that financed Marquardt Village’s capital expenditure needs. This federally tax-exempt financing process has enabled Marquardt Village to operate more effectively by financing its capital expenses at lower interest rates (initially 3.90%).

$204,800,000 ProHealth Care Close Date: December 18, 2014

“We have high praise for the WHEFA team. In addition to providing professional and knowledgeable guidance on our recent bond financing transaction, the WHEFA team

was very easy to work with. WHEFA is a great business partner and has been an important contributor to our success. ProHealth Care is lowering our cost of capital and obtaining funding for important strategic initiatives. We now are able to better allocate scarce resources that support the activities vital to the mission and vision of

the organization. It would not have been possible without support from WHEFA.”

- Ronald J. Farr, Chief Financial Officer, ProHealth Care, Inc.

These projects will create 193 full-time equivalent permanent jobs with an annual payroll of $4,700,000, as well as 250 construction jobs. 396 full-time equivalents will work at the

Pewaukee and Mukwonago Campuses with an annual payroll of $32,000,000. ProHealth Care employs 3,500 full-time equivalents.

ProHealth Care, Inc. is the sole corporate member of Waukesha Memorial Hospital, Inc., Oconomowoc Memorial Hospital, Inc. and National Regency of New Berlin, Inc. Waukesha Memorial Hospital owns and operates an acute care hospital located on a 23-acre campus in the City of Waukesha with 265 staffed beds. Oconomowoc Memorial Hospital owns and operates an acute care hospital on an 18.5 acre campus in Oconomowoc with 58 staffed beds. National Regency owns and operates assisted and independent living facilities in Waukesha County and a medical office building located adjacent to Waukesha Memorial Hospital.

Bond financing facilitated by WHEFA will be used to help ProHealth Care finance costs associated with the construction and equipping by Waukesha Memorial Hospital of a 160,000-square-foot cancer center and multi-specialty clinic in Pewaukee, and a 66,000-square-foot expansion of an outpatient center in Mukwonago to add emergency services. Proceeds of the bond financing also were used to refinance bonds issued by WHEFA in 2005 on behalf of National Regency in New Berlin, Wisconsin and bonds issued by WHEFA in 2008 for the benefit of Waukesha Memorial Hospital and Oconomowoc Memorial Hospital. This federally tax-exempt financing process has enabled ProHealth Care and its affiliates to operate more effectively by financing their capital expenses at a lower cost.



$17,329,000 Franciscan Sisters of Christian Charity Sponsored Ministries Close Date: December 19, 2014

“Our ability to obtain lower interest cost through tax-exempt financing is ultimately a great benefit to the people and communities who depend on our services. It enables the Franciscan

Sisters of Christian Charity to carry out and expand their mission, attending to the health needs of the elderly, especially for those who experience challenges accessing our services.”

- James Vopat, Senior Vice President, Finance, Franciscan Sisters of Christian Charity Sponsored Ministries, Inc.

This project will create 11 permanent jobs with an annual payroll of $525,000, as well as approximately 60 construction jobs. 25 jobs will be retained with an annual payroll of $870,000.

FSCCSM employs over 1,200 full-time equivalents in Wisconsin.

Franciscan Sisters of Christian Charity Sponsored Ministries, Inc. (“FSCCSM”), is a not-for-profit healthcare and higher education holding company incorporated to monitor and manage the healthcare and higher education ministry of the Franciscan Sisters of Christian Charity, Manitowoc, Wisconsin. FSCCSM is the sole corporate member of Holy Family Memorial, Inc., and St. Paul Elder Services, Inc.

Bond financing facilitated by WHEFA will be used to help St. Paul Elder Services in Kaukauna finance costs associated with the construction of a 13-bed addition to and renovations and improvements to the existing skilled nursing facility and the construction of a new 24-unit community based residential facility. In addition, proceeds of the bond financing will help Holy Family Memorial in Manitowoc finance the construction and expansion of clinic facilities, and other capital expenditures and equipment acquisitions. Proceeds of the bond financing were also used to refinance bonds previously issued by WHEFA in 2003 on behalf of Holy Family Memorial and St. Paul Elder Services. This federally tax-exempt financing process has enabled FSCCSM and its affiliates to operate more effectively by financing their capital expenses at a lower interest rate (initially 1.12%).

$28,195,000 Fort HealthCare Close Date: December 23, 2014

“WHEFA’s assistance in assembling a high quality financing team greatly helps organizations like Fort HealthCare efficiently access funds necessary to continue our mission and vision.”

- James Nelson, Senior Vice President – Finance and Strategic Development / Chief Financial Officer, Fort HealthCare, Inc.

Fort HealthCare employs approximately 680 full-time equivalents in Wisconsin.

Fort HealthCare, Inc. presently owns and operates Fort Memorial Hospital, an 82-staffed bed, general acute care hospital located on a 6.5 acre site in Fort Atkinson, Wisconsin. Fort HealthCare is also the sole shareholder of Fort Medical Group, consisting of 40 physicians.

Bond financing facilitated by WHEFA was used to help Fort HealthCare refinance bonds previously issued by WHEFA in 2004 to finance certain capital expenditures at its hospital facilities. The net present value savings following the refinancing was approximately $6.76 million. This federally tax-exempt financing process has enabled Fort Healthcare to operate more effectively by refinancing its capital expenses at lower interest rates (4.00%–5.00%).



$125,670,000 ThedaCare Close Date: January 7, 2015

“Implementing wonderful ideas and technologies that better serve the healthcare customer consumes critical resources. The financial process with WHEFA was efficiently managed and delivered a product that can serve our organization and the communities we serve for many years to come. We feel fortunate to have such a partner here in Wisconsin.”

- Keith Taubel, Controller, ThedaCare, Inc. The projects will create 18 permanent jobs with an annual payroll of $1,300,000, as well as 194 construction jobs. ThedaCare employs 4,893 full-time equivalents.

ThedaCare is a community health system consisting of seven hospitals, numerous clinics and related services including home care and senior living. The hospitals in the system include Appleton Medical Center in Appleton, Wisconsin; Theda Clark Medical Center in Neenah, Wisconsin; New London Family Medical Center in New London, Wisconsin; Shawano Medical Center in Shawano, Wisconsin; Riverside Medical Center in Waupaca, Wisconsin; Community Health Network in Berlin, Wisconsin; and Wild Rose Community Memorial Hospital in Wild Rose, Wisconsin.

Bond financing facilitated by WHEFA will help ThedaCare finance the acquisition, construction and equipping of a 127,555 square foot replacement hospital in Shawano, Wisconsin; the construction and equipping of a new 80,000 square foot cancer center facility in Appleton, Wisconsin; the acquisition, construction and equipping of a replacement clinic facility in Neenah, Wisconsin; and the construction and remodeling of a hybrid operating room suite in Appleton, Wisconsin. Bond proceeds were also used to refinance bonds previously issued by WHEFA in 2005 to finance certain capital expenditures of ThedaCare and its affiliates . The net present value savings following the refinancing was approximately $4.7 million. This federally tax-exempt financing process has enabled ThedaCare and its affiliates to operate more effectively by financing their capital expenses at lower interest rates (3.00%-5.00%).

$1,457,500 Riverfront Foundation and Riverfront Activity Center Close Date: January 8, 2015

“We were very fortunate to work with a great group of people that helped us every step of the way. The process was well planned out and well communicated.

WHEFA stayed on top of everything for us and really put our mind at ease that the process was going as planned. The tax-exempt financing will save our non-

profit thousands of dollars. Dollars we can put back into our programs.”

- Tom Kabat, Financial Director, Riverfront Foundation, Inc. and Riverfront Activity Center, Inc. Riverfront employs approximately 196 full-time equivalents.

Riverfront Foundation, Inc. (the “Foundation”) and Riverfront Activity Center, Incorporated (the “Center”) (collectively, “Riverfront”), founded in La Crosse, Wisconsin in 1977, help nearly 1,200 people annually with disabilities in order to maximize their independence and full potential. Riverfront is comprised of the Foundation which is a non-profit supporting organization formed solely for charitable and educational purposes to support the activities and purposes of the Center. The Center provides real life services to people with disabilities in Wisconsin and the Midwest and focuses primarily on adults and young adults in Wisconsin and Minnesota, helping them live independently, work and earn paychecks and be part of the community as workers, neighbors and friends.

Bond financing facilitated by WHEFA was used to help Riverfront refinance bonds previously issued by WHEFA in 1998. The net present value savings following the refinancing was approximately $655,000. This federally tax-exempt financing process has enabled Riverfront to operate more effectively by refinancing its capital expenses at a lower interest rate (3.35%).



$133,630,000 ProHealth Care Close Date: January 29, 2015

“WHEFA is a great business partner. The professional and knowledgeable team at WHEFA is an indispensable member of our financing team. ProHealth Care’s operating cost was significantly

reduced as a result of our recent debt refinancing. We now have an opportunity to better allocate resources to activities vital to the mission and vision of the organization. It would not have been

possible without support from WHEFA. WHEFA is an important contributor to our success.”

- Ronald J. Farr, Chief Financial Officer, ProHealth Care, Inc. ProHealth Care employs 3,500 full-time equivalents.

ProHealth Care, Inc. is the sole corporate member of Waukesha Memorial Hospital, Inc., Oconomowoc Memorial Hospital, Inc. and National Regency of New Berlin, Inc. Waukesha Memorial Hospital owns and operates an acute care hospital located on a 23-acre campus in the City of Waukesha with 265 staffed beds. Oconomowoc Memorial Hospital owns and operates an acute care hospital on an 18.5 acre campus in Oconomowoc with 58 staffed beds. National Regency owns and operates assisted and independent living facilities in Waukesha County and a medical office building located adjacent to Waukesha Memorial Hospital.

Bond financing facilitated by WHEFA was used to help ProHealth Care refinance bonds issued by WHEFA in 2009 for the purpose of financing capital expenditures of Waukesha Memorial Hospital and Oconomowoc Memorial Hospital. The net present value savings following the refinancing was approximately $27.7 million. This federally tax-exempt financing process has enabled ProHealth Care and its affiliates to operate more effectively by financing their capital expenses at a lower cost (2.75%-5.00%).

$4,985,000 Sixteenth Street Community Health Centers Close Date: April 1, 2015

“As a community health center serving patients regardless of the ability to pay, we operate on very slim margins. Our ability to access low cost capital through WHEFA frees up funds

to enable us to continue to serve those disadvantaged patients and to develop and maintain innovational programming to address the social and health needs of the communities we serve.”

- Betsy Spahiu, Vice President Financial Services, Sixteenth Street Community Health Centers, Inc.Sixteenth Street Community Health Centers employs

approximately 320 full-time equivalents.

Sixteenth Street Community Health Centers (“SSCHC”) is an innovative, case-managed, and family-based primary health care provider committed to improving the health and well-being of Milwaukee and surrounding communities. SSCHC has provided quality health care, health education and social services on Milwaukee’s multi-cultural south side since 1969 and is recognized as a leader in the community in terms of the excellent care provided, as well as advocacy for public health issues. SSCHC’s health services are designed to serve people in the context of their community, family and culture and free of linguistic and economic barriers. SSCHC is one of 18 community health centers in the state of Wisconsin that are located in ‘medically under-served’ communities. SSCHC has three locations on Milwaukee’s south side and one location in Waukesha.

Bond financing facilitated by WHEFA was used to help SSCHC refinance bonds previously issued by WHEFA in 2006 for the purpose of financing and refinancing certain capital expenditures of SSCHC. The net present value savings following the refinancing was approximately $824,000. This federally tax-exempt financing process has enabled SSCHC to operate more effectively by refinancing its capital expenses at a lower cost.



$45,105,000 Bellin Memorial Hospital Close Date: April 9, 2015

“Bellin is very appreciative of WHEFA. The ability to secure tax-exempt financing through WHEFA is vital to our operations and will allow us to reduce our overall borrowing costs which we

believe will translate into lowering the cost of care for our community. Bellin does not issue debt very often and WHEFA’s experience and expertise is something we relied on to achieve our

savings. WHEFA is an organization that can be counted on to be a true business partner.”

- James Dietsche, Chief Financial Officer, Bellin Health Systems, Inc. Bellin Memorial Hospital and Bellin Psychiatric Center employ approximately 2,488 full-time equivalents in Wisconsin.

Bellin Health Systems, Inc. was formed in 1983 to own, operate and support various healthcare providers and institutions, and is the sole member of Bellin Memorial Hospital, Inc., which owns and operates a 174-staffed bed hospital in Green Bay, Wisconsin; Bellin Psychiatric Center, Inc.; and certain other entities. Today, Bellin Health Systems operates an integrated healthcare delivery system based in Green Bay, Wisconsin with 37 physician clinics, as well as FastCare retail health clinics serving residents of northeast Wisconsin and the Upper Peninsula of Michigan.

Bond financing facilitated by WHEFA was used to help Bellin Memorial Hospital refinance bonds previously issued by the Redevelopment Authority of the City of Green Bay in 2008 for the purpose of financing and refinancing certain capital expenditures of Bellin Memorial Hospital and Bellin Psychiatric Center. The net present value savings following the refinancing was approximately $4.21 million. This tax-exempt financing process has enabled Bellin Health Systems and its affiliates to operate more effectively by refinancing their capital expenses at lower interest rates (2.00%-5.00%).

$10,250,000 Carthage College Close Date: April 30, 2015

“For the third time in the last three years, WHEFA’s very knowledgeable staff has successfully guided Carthage College through the process of a tax-exempt bond issue. The staff’s in-depth

knowledge of tax-exempt financing, along with a positive customer service approach, has been a tremendous resource for our College as we expand our campus to meet our growing enrollment.”

- William Abt, Senior Vice President for Administration & Business, Carthage CollegeCarthage College employs approximately 378 full-time equivalents.

Carthage College, founded in 1847, is an Illinois non-profit corporation located in Kenosha, Wisconsin. Carthage College is a private college of the liberal arts and sciences, affiliated with the Evangelical Lutheran Church in America. Located midway between Chicago and Milwaukee, Carthage’s 80-acre campus on the Lake Michigan shore is home to 2,748 full-time equivalent students. Carthage College awards the Bachelor of Arts degree with majors in more than 40 subject areas, and the Master of Education degree.

Bond financing facilitated by WHEFA was used to help Carthage College refinance bonds previously issued by WHEFA in 1995 and 1999 for the purpose of financing capital improvements to the Carthage College campus. This federally tax-exempt financing process has enabled Carthage College to operate more effectively by financing its capital expenses at a low interest rate (2.46%).



$76,660,000 Aspirus Close Date: May 7, 2015

“WHEFA did a very nice job assisting Aspirus with the bond issue and assuring everything was managed appropriately and legally. They are extremely accommodating which makes for a very smooth process. Given thin operating margins and the need to maintain access to healthcare in the central and northern part of the State, plus, in our case, the Upper Peninsula of Michigan,

tax-exempt financing is very important to our sustainability and growth as a system.”

- Sidney Sczygelski, Chief Financial Officer, Aspirus, Inc. Aspirus employs 4,800 full-time equivalents in Wisconsin.

Aspirus, Inc. is a regional provider of health care services and its operations include eight acute care hospitals (four in Wisconsin; four in Michigan) with an aggregate 431 available beds, primary and specialty physician care (including occupational medicine) in more than 30 communities, and 11 facilities offering long-term care and senior living with 195 skilled nursing beds, 82 assisted living units, ten community-based residential units, 40 independent living units and eight adult family home units.

Bond financing facilitated by WHEFA was used to help Aspirus refinance bonds previously issued by WHEFA in 2008 and 2010 on behalf of Aspirus Riverview Hospital, Inc. located in Wisconsin Rapids. Bond proceeds will also help Aspirus acquire, construct, renovate, equip and refinance certain hospital and clinic facilities on behalf of certain affiliates located in Michigan. The net present value savings following the refinancing is approximately $3.3 million. This federally tax-exempt financing process has enabled Aspirus and its affiliates to operate more effectively by financing their capital expenses at lower interest rates (2.00%-5.00%).

$30,430,000 All Saints Assisted Living Center Close Date: May 20, 2015

“The All Saints journey started about 20 years ago with an idea of providing independent living options for seniors. We have been careful to set achievable and sustainable

goals. Now, thanks to community partners such as WHEFA, a supportive Board, and dedicated employees, we can move forward in creating an even greater resource than originally imagined, one that will serve the West-side of Madison for years to come.”

- Jackson Fonder, President & Chief Executive Officer, Catholic Charities, Inc.

This project will create 50 permanent jobs with an annual payroll of $1,400,000, as well as approximately 240 construction jobs. 45 jobs will be retained with an

annual payroll of $1,200,000. All Saints Assisted Living Center employs 65 full-time equivalents in Wisconsin.

All Saints Assisted Living Center, Inc. (“All Saints”) currently owns and operates a 58-unit community based residential facility on the west side of Madison. The sole member of All Saints is Catholic Charities, Inc., Diocese of Madison (“Catholic Charities”). Catholic Charities has served individuals and families in an 11 county area in south central Wisconsin since 1946 and its mission is to serve the Diocese of Madison by providing compassionate caring services designed to help those in need.

Bond financing facilitated by WHEFA will be used to help All Saints finance costs associated with the construction and equipping of new senior living facilities on the west side of Madison, including a 48-unit residential care apartment complex and 63 memory-care units. Proceeds of the bond financing will also be used to finance the renovation of its existing facility and to refinance bonds previously issued by WHEFA in 2007 for the construction and equipping of a community based residential facility. The net present value savings following the refinancing was approximately $2.2 million. This federally tax-exempt financing process has enabled All Saints to operate more effectively by financing its capital expenses at a lower interest rate (initially 2.78%).



$138,780,000 Wheaton Franciscan Services Close Date: May 28, 2015

“The ability to access tax-exempt financing is vital to our operations. WHEFA is a great partner that helps simplify the financing process. We truly appreciate all their work.”

- Jon Sohn, Senior Vice President & Chief Financial Officer, Wheaton Franciscan Services, Inc.

Wheaton Franciscan employs approximately 8,695 full-time equivalents in Wisconsin.

Wheaton Franciscan Services, Inc. is the parent organization for health care and shelter service organizations located in Wisconsin, Illinois, Iowa and Colorado (collectively the “System”). Today the System is comprised of over 100 sites, including 14 hospitals, three long-term care facilities, two home health agencies, numerous physician clinics, and 2,620 units of assisted living and other housing for fixed-income, elderly, and low-income families. The System also owns several physician groups including Wheaton Franciscan Medical Group.

Bond financing facilitated by WHEFA was used to help Wheaton Franciscan Services refinance bonds previously issued by WHEFA in 2003 and 2007 to finance and refinance the hospital and related facilities of certain affiliates of Wheaton Franciscan Services. This federally tax-exempt financing process has enabled the System to operate more effectively by financing its capital expenses at a lower interest rate (initially 0.83%).

$16,870,000 Edgewood College Close Date: May 29, 2015

“Securing tax-exempt financing through WHEFA allows Edgewood College to improve the quality of our student’s learning experience while enhancing the

vitality of our community. We are grateful for the partnership with WHEFA and for the support of their knowledgeable staff throughout the process.”

- Michael Guns, Vice President of Business and Finance & Chief Financial Officer, Edgewood College

This project will create 2 permanent jobs with an annual payroll of $46,000, as well as 105 construction jobs. Edgewood College employs 467 full-time equivalents.

Edgewood College, Inc. is an educational institution sponsored by the Sinsinawa Dominican Congregation of the Most Holy Rosary offering graduate and undergraduate degrees. Founded in 1927 on a 55-acre campus in Madison, Wisconsin, Edgewood College has a current undergraduate enrollment of 1,935 students and offers over 40 undergraduate programs.

Bond financing facilitated by WHEFA was used to help Edgewood College refinance bonds previously issued by WHEFA in 2006 for the purpose of financing and refinancing capital improvements to its educational and student residence facilities. Proceeds of the bond financing will also finance the renovation and remodeling of an existing residence hall facility to increase capacity by approximately 110 student beds, certain infrastructure capital improvements, and other general capital expenditures and equipment acquisitions, including providing unique classroom and meeting spaces. This federally tax-exempt financing process has enabled Edgewood College to operate more effectively by financing its capital expenses at a lower interest rate (initially 1.09%).



$16,480,000 Fort HealthCare Close Date: June 30, 2015

“We are so lucky in Wisconsin to have WHEFA available to achieve tax-exempt financing. They are the perfect guides for the process and work very hard to help our organization

achieve the lowest cost financing to help us meet our mission and vision.”

- James Nelson, Senior Vice President - Finance and Strategic Development / Chief Financial Officer, Fort HealthCare, Inc.

Fort HealthCare employs approximately 680 full-time equivalents in Wisconsin.

Fort HealthCare, Inc. presently owns and operates Fort Memorial Hospital, an 82-staffed bed, general acute care hospital located on a 6.5 acre site in Fort Atkinson, Wisconsin. Fort HealthCare is also the sole shareholder of Fort Medical Group, consisting of 40 physicians.

Bond financing facilitated by WHEFA was used to help Fort HealthCare refinance bonds previously issued by WHEFA in 2007 for the purpose of financing and refinancing capital improvements to its hospital facilities. This federally tax-exempt financing process has enabled Fort HealthCare to operate more effectively by refinancing its capital expenses at lower interest rates (initially 2.69%).

WHEFA is proud to have been able to assist these borrowers by reducing their overall debt service andallowing them to grow and compete by providing access to low-cost capital.

La Crosse

Milwaukee

Eau Claire

Madison

Green Bay

Wausau

27

7

29

1

12

6 & 21

17

18

14

2-815-16

12

9

2

28

3024

24

26

20

2020

22-24

19-20

20

24-25

13

8-9 9-10

11

Wisconsin Locations of WHEFA Borrowers – Fiscal Year 2015 (07/01/14 – 06/30/15)


1. Carthage College (Kenosha)

2. Wheaton Franciscan Services (Milwaukee, Wauwatosa, Brown Deer, Brookfield, Racine)

3. Alverno College (Milwaukee)

4. Sixteenth Street Community Health Centers (Milwaukee)

5. The Medical College of Wisconsin (Milwaukee)

6. Felician Services (Manitowoc, Milwaukee)

7. Goodwill Industries of Southeastern Wisconsin (Greendale, Franklin, Oak Creek, Milwaukee, Wauwatosa, Waukesha, Beaver Dam)

8. Rogers Memorial Hospital (Oconomowoc, West Allis, Brown Deer)

9. ProHealth Care (Pewaukee, Mukwonago, New Berlin, Waukesha, Oconomowoc)

10. Kirkland Crossings (Pewaukee)

11. Dickson Hollow (Menomonee Falls)

12. Wisconsin Illinois Senior Housing (East Troy, Elkhorn, Wild Rose)

13. Fort HealthCare (Fort Atkinson)

14. Marquardt Village (Watertown)

15. All Saints Assisted Living Center (Madison)

16. Edgewood College (Madison)

17. Divine Savior Healthcare (Portage)

18. Aspirus (Wisconsin Rapids)

19. Lawrence University of Wisconsin (Appleton)

20. ThedaCare (Berlin, Shawano, Appleton, Neenah, Waupaca, New London, Menasha)

21. Franciscan Sister of Christian Charity Sponsored Ministries (Kaukauna, Manitowoc, Two Rivers)

22. Bellin Memorial Hospital (Green Bay)

23. Woodside Senior Communities (Green Bay)

24. Hospital Sisters Services (Chippewa Falls, Eau Claire, Sheboygan, Green Bay)

25. Sheboygan Senior Community (Sheboygan)

26. Vernon Memorial Healthcare (Viroqua)

27. Riverfront Foundation and Riverfront Activity Center (La Crosse)

28. The Cumberland Memorial Hospital and Extended Care Unit (Cumberland)

29. Spooner Health System (Spooner)

30. Woodland Hill Senior Housing (Hudson)


Number of Issues Dollars Issued

Rated Unrated TotalFiscal 2015 - # 9 28 37

Fiscal 2015 - $ $637,461,000 $840,956,098 $1,478,417,098

Credit Structure - Total WHEFA Activity Dollars IssuedNumber of Issues

Enhanced Rated Unrated TotalTotal Activity - # 314 135 341 790

Total Activity - $ $9,957,321,000 $8,202,344,430 $4,006,573,709 $22,166,239,139


Credit Structure - 2015 Fiscal Year Activity

Borrower Type - 2015 Fiscal Year Activity Number of Issues Dollars Issued

Acute Care Long-Term Care Other Education TotalFiscal 2015 - # 16 11 3 7 37

Fiscal 2015 - $ $1,065,349,244 $248,782,964 $42,507,500 $121,777,390 $1,478,417,098

Borrower Type - Total WHEFA Activity Dollars IssuedNumber of Issues

Acute Care Long-Term Care Other Education TotalTotal Activity - # 408 200 65 117 790

Total Activity - $ $17,012,871,979 $2,338,612,467 $882,221,000 $1,932,533,693 $22,166,239,139


Number of Issues Dollars Issued

Refinancing New Money TotalFiscal 2015 - # 26 11 37

Fiscal 2015 - $ $1,032,685,578 $445,731,520 $1,478,417,098

Use of Bond Proceeds - Total WHEFA Activity Dollars IssuedNumber of Issues

Refinancing New Money TotalTotal Activity - # 315 475 790

Total Activity - $ $9,911,550,107 $12,254,689,032 $22,166,239,139

Use of Bond Proceeds - 2015 Fiscal Year Activity


WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY

FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2015 AND 2014


CONTENTS

Page

INDEPENDENT AUDITORS' REPORT ................................................................................... 1 - 3

FINANCIAL STATEMENTS

Statements of Net Position ...................................................................................................... 4

Statements of Revenues, Expenses and Changes in Net Position ........................................ 5

Statements of Cash Flows ...................................................................................................... 6

Notes to Financial Statements ........................................................................................ 7 – 27

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Authority’s Proportionate Share of the Net Pension Asset – Wisconsin

Retirement System ................................................................................................................ 28

Schedule of Authority Contributions – Wisconsin Retirement System .................................. 29

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ..................................................................................................... 30 - 31

SchenckCPAs AND SO MUCH MORE.

INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS

To the Members of the Wisconsin Health and

Educational Facilities AuthorityBrookfield, Wisconsin

Report on the Financial Statements

We have audited the accompanying financial statements of Wisconsin Health and EducationalFacilities Authority ("the Authority") which comprise the Statements of Net Position as of June 30,2015 and 2014, and the related Statements of Revenues, Expenses and Changes in Net Positionand Cash Flows for the years then ended and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation 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 audits. Weconducted our audits in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors' judgment,including the assessment of the risks of material misstatement of the financial statements, whetherdue to fraud or error. In making those risk assessments, the auditors consider internal controlrelevant to the Authority's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Authority's internal control. Accordingly, weexpress no such opinion. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of significant 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 abasis for our audit opinion.

AGN"""""""""" Appleton • Fond du Lac • Green Bay • Manitowoc • Milwaukee • Oshkosh • Sheboygan • Wausau schencksc.com • 800-236-2246

Schenck sc

2

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wisconsin Health and Educational Facilities Authority as of June 30, 2015 and 2014, and the changes in its net position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the Authority implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - An Amendment of GASB Statement No. 27. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the schedules relating to pensions and other post-employment benefits on pages 28 and 29 be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 22, 2015 on our consideration of Wisconsin Health and Educational Facilities Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the Wisconsin Health and Educational Facilities Authority's internalcontrol over financial reporting and compliance.

jJek^^^ aCCertified Public Accountants

Milwaukee, WisconsinOctober 22, 2015


STATEMENTS OF NET POSITIONJune 30, 2015 and 2014

2015 2014

Current assetsCash and cash equivalents 125,522$ 272,207$ Investment securities 2,194,590 2,136,963Accrued annual fees 254,984 251,174Receivables and other assets 22,348 24,653

Total current assets 2,597,444 2,684,997

Other assetsNet pension asset 52,053 -

Property and equipmentOffice furniture, equipment and

leasehold improvements 125,116 123,627Less: accumulated depreciation 96,474 82,227

Net property and equipment 28,642 41,400

Total assets 2,678,139 2,726,397

Deferred outflows related to pension 62,507 -

Total assets and deferred outflows of resources 2,740,646$ 2,726,397$

Current liabilitiesAccounts payable 20,484 26,787 Accrued expenses 55,422 50,857

Total liabilities 75,906 77,644

Net Investment in capital assets 28,642 41,400 Unrestricted 2,636,098 2,607,353

Total net position 2,664,740 2,648,753

Total liabilities and net position 2,740,646$ 2,726,397$

See accompanying notes to financial statements.

ASSETS

LIABILITIES

NET POSITION

DEFERRED OUTFLOWS OF RESOURCES

4


STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONYears Ended June 30, 2015 and 2014

2015 2014

Operating revenuesAnnual fees 603,870$ 585,276$

Total operating revenue 603,870 585,276

Operating expensesSalaries and benefits 465,617 450,036Professional fees 67,254 71,707Board expense 4,956 6,780Rent 59,299 60,164Insurance 18,931 19,445Supplies 22,581 18,947Telephone 7,714 7,606Travel 17,083 16,615Membership dues 6,629 3,987Hosted seminars 11,511 12,525Staff education/training 4,560 4,208Sponsorships 20,200 30,650Depreciation 14,247 13,223Other 12,172 14,998

Total operating expenses 732,754 730,891

Operating loss (128,884) (145,615)

Nonoperating income (expense)Interest 32,947 38,797Net realized investment loss (9,047) (6,219) Net unrealized investment gain 7,348 3,037

Total nonoperating income 31,248 35,615

Change in net position (97,636) (110,000)

Cummulative effect of change in accounting principle 113,623 -

Net position, beginning of year 2,648,753 2,758,753

Net position, end of year 2,664,740$ 2,648,753$

See accompanying notes to financial statements.

5


STATEMENTS OF CASH FLOWSYears Ended June 30, 2015 and 2014

2015 2014

Cash flows from operating activitiesCash received from customers 602,365$ 598,709$ Cash paid to vendors and employees (721,182) (694,731)

Net cash used in operating activities (118,817) (96,022)

Cash flows from capital and related financing activitiesPurchases of property and equipment (1,489) (3,708)

Net cash used in capital and related financing activities (1,489) (3,708)

Cash flows from investing activitiesPurchases of investment securities (1,066,777) (820,243) Proceeds from sales and maturities of investment securities 1,007,451 960,961 Interest received 32,947 38,797

Net cash (used in) provided by investing activities (26,379) 179,515

Net (decrease) increase in cash and cash equivalents (146,685) 79,785

Cash and cash equivalents, beginning of year 272,207 192,422

Cash and cash equivalents, end of year 125,522$ 272,207$

Reconciliation of operating loss to net cashused in operating activities

2015 2014

Operating loss (128,884)$ (145,615)$ Adjustments to reconcile operating loss to

net cash used in operating activities:Depreciation 14,247 13,223 Net pension asset (937) - Increase (decrease) in operating assets:

Accrued annual fees (3,810) 8,743 Receivables and other assets 2,305 4,690

(Increase) decrease in operating liabilities:Accounts payable (6,303) 12,514 Accrued expenses 4,565 10,423

Total adjustments 10,067 49,593

Net cash used in operating activities $ (118,817) $ (96,022)

See accompanying notes to the financial statements.

6


NOTES TO FINANCIAL STATEMENTS Years Ended June 30, 2015 and 2014

7

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization: Wisconsin Health and Educational Facilities Authority (the Authority) is a public body politic and corporate of the State of Wisconsin created and existing under Chapter 231 of the Wisconsin Statutes. The Authority consists of seven members (the Members), appointed by the governor, with the advice and consent of the state senate. The Authority is not considered a component unit of the State of Wisconsin for purposes of the state's Comprehensive Annual Financial Report.

The financial statements of the Authority have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The purpose of the Authority is to facilitate financing for capital expenditures and refinancing of indebtedness for qualified Wisconsin not-for-profit institutions through the issuance of tax-exempt debt instruments.

The Authority issues tax-exempt instruments (bonds, notes, or other obligations), which do not constitute a debt of the State of Wisconsin or any political subdivision. These debt instruments are limited obligations of the Authority, payable solely from payments made by the related borrowing institutions and related assets held by trustees. The Authority has no general liability with respect to these obligations and has no beneficial interest in the related assets held by trustees. Therefore, the Authority has excluded these obligations, and the related assets held by trustees, from the financial statements (see Notes 5 and 6).

Cash and cash equivalents: The Authority considers all highly liquid debt instruments purchased with maturities less than 90 days to be cash equivalents.

Investment securities: Investments in debt securities are carried at fair value, which is determined based on quoted market prices. Purchases and sales of debt securities are recorded as of the transaction date. Gains or losses on sales of debt securities are recognized using the specific identification method.

Office furniture, equipment and leasehold improvements: Office furniture, equipment and leasehold improvements are carried at cost. Maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Depreciation is computed using the straight-line method. The estimated useful lives of office furniture, equipment and leasehold improvements are three to seven years. Depreciation expense for the years ended June 30, 2015 and 2014 was $14,247 and $13,223, respectively.

Deferred Outflows/Inflows of Resources: In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority has one item that qualifies for reporting in this category.



8

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

This item is related to the Authority’s proportionate share of the Wisconsin Retirement System pension plan and is deferred and amortized over the expected remaining service lives of the pension plan participants.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Authority currently does not have any items that qualify for reporting in this category.

Accrued annual fees: The Authority considers accrued annual fees to be fully collectible; accordingly, no allowance is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Operating revenue – annual fees: Revenues consist primarily of annual fees charged to borrowing institutions. Revenues are recognized when earned. The fee charged to borrowing institutions for the years ended June 30, 2015 and 2014 was 0.625 of a basis point on the amount of bonds outstanding at the end of the year.

Income tax status: The Authority is considered a quasi-governmental entity under Chapter 231 of the Wisconsin statutes and therefore is exempt from federal and state income taxes.

Basis of presentation: Financial transactions of the Authority and the results thereof are presented in the financial statements as an enterprise fund. Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the Authority is that the costs (expenses, including depreciation) of providing services to its users on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.



9

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Net position: Net position is classified and displayed in three components:

Net Investment in capital assets – Amount of capital assets, net of accumulated depreciation, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of these assets.

Restricted net position – Amount of net position that is subject to restrictions that are imposed by 1) external groups, such as creditors, contributors or laws or regulations or other governments or 2) law through constitutional provisions or enabling legislation.

Unrestricted net position – Net position that is neither classified as restricted nor as net investment in capital assets.

The Authority does not have any restricted net position as of June 30, 2015 and 2014.

Pensions: For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Wisconsin Retirement System (WRS) and additions to/deductions from WRS’ fiduciary net position have been determined on the same basis as they are reported by WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Cumulative Effect of Change in Accounting Principle: The Authority has adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27, which revised and established new financial reporting requirements for governments that provide their employees with pension benefits. The new standard recognizes pension costs as employment services are provided, rather than when the pensions are funded. Financial statements for the year ended June 30, 2014, have not been restated. The cumulative effect of this change was to increase the June 30, 2015 net position of the governmental activities by $113,623.

NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENT SECURITIES

Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following: Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin local government investment pool.



10

NOTE 2 - CASH AND CASH EQUIVALENTS AND INVESTMENT SECURITIES (CONTINUED)

The carrying amount of the Authority’s cash and cash equivalents totaled $125,522 and $272,207 on June 30, 2015 and 2014, respectively. The fair values and cost of investment securities held as of June 30, 2015 and 2014 are summarized as follows:

June 30, 2015

Net Unrealized Cost Fair Value Gains (Losses)

U.S. government and federal agency obligations $ 1,352,985 $ 1,350,907 $ (2,078)

Other commercial asset-backed obligations 346,414 339,945 (6,469)

Corporate bonds 431,503 433,202 1,699Municipal agency obligations 72,495 70,536 (1,959)Other bonds - - -

Total $ 2,203,397 $ 2,194,590 $ (8,807)

June 30, 2014

Net Unrealized Cost Fair Value Gains (Losses)

U.S. government and federal agency obligations $ 936,173 $ 926,144 $ (10,029)

Other commercial asset-backed obligations 512,470 506,217 (6,253)

Corporate bonds 550,021 552,763 2,742Municipal agency obligations 117,766 116,018 (1,748)Other bonds 36,686 35,821 (865)

Total $ 2,153,116 $ 2,136,963 $ (16,153)

Deposits and investments of the Authority are subject to various risks. Presented below is a discussion of the specific risks.

Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Authority will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, the Authority will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. The Authority does not have an additional custodial credit risk policy.



11


Deposits with financial institutions within the State of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for time and savings deposits and $250,000 for interest-bearing demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in the amount of $250,000 for all time accounts, savings accounts and interest-bearing demand deposit accounts per official custodian per depository institution. In addition, the Authority’s non-interest bearing transaction accounts are fully insured through December 31, 2014. As of January 1, 2015 the Authority’s noninterest-bearing accounts are combined with its interest-bearing demand deposits for FDIC insurance coverage. Also, the State of Wisconsin has a State Guarantee Fund which provides a maximum of $400,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund's total coverage, total recovery of insured losses may not be available.

As of June 30, 2015 and 2014, the Authority had no deposits with financial institutions in excess of federal depository insurance limits.

Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit the purchase of investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. Presented below is the actual rating as of year end for each investment type. The Authority does not have an additional credit risk policy.

Investment Type Amount AAA Aa A

U.S. government andfederal agency obligations 1,350,907$ 1,350,907$ -$ -$

Other commercialasset-backed obligations 339,945 223,639 116,306 -

Corporate bonds 433,202 29,954 403,248 - Municipal agency obligations 70,536 - 70,536 -

June 30, 2015

Investment Type Amount AAA Aa A

U.S. government andfederal agency obligations 926,144$ 926,144$ -$ -$

Other commercialasset-backed obligations 506,217 398,558 107,659 -

Corporate bonds 552,763 29,923 522,840 - Municipal agency obligations 116,018 116,018 - - Other bonds 35,821 - 35,821 -

June 30, 2014



12


Concentration of Credit Risk The investment policy of the Authority contains no limitations on the amount that can be invested in any one issuer. There were no investments in any one issuer (other than U.S. Treasury Securities) that represent 5% or more of the total Authority’s investments held at June 30, 2015 and 2014.

Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority’s investments by maturity:

Investment Type Amount12 Months

or Less13 - 24 Months

25 - 60 Months

More than 60 Months

U.S. government andfederal agency obligations 1,350,907$ -$ 160,469$ 1,089,738$ 100,700$

Other commercialasset-backed obligations 339,945 - 55,792 160,553 123,600

Corporate bonds 433,202 45,545 212,605 175,052 - Municipal agency obligations 70,536 15,000 25,536 30,000 -

Remaining Maturity (in Months)June 30, 2015

Investment Type Amount12 Months

or Less13 - 24 Months

25 - 60 Months

More than 60 Months

U.S. government andfederal agency obligations 926,144$ -$ 56,275$ 713,310$ 156,559$

Other commercialasset-backed obligations 506,217 2,719 40,199 337,592 125,707

Corporate bonds 552,763 50,771 132,963 369,029 - Municipal agency obligations 116,018 25,025 34,997 55,996 - Other bonds 35,821 35,821 - - -

Remaining Maturity (in Months)June 30, 2014



13


Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The Authority’s investments include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information already provided above):

June 30, 2015 June 30, 2014Mortgage back securities. These securities are subject to earlypayment in a period of declining interest rates. The resultant reduction in expected total cash flows affects the fair value ofthese securities and makes the fair values of these securities highly sensitive to changes in interest rates. 231,255$ 491,181$

Highly Sensitive InvestmentsFair Value at Year End

NOTE 3 - OPERATING LEASE COMMITMENT

The Authority has an agreement to lease its office space through October 31, 2020. The lease agreement provides for a basic monthly rental payment of $2,587 plus operating costs through October 31, 2016 increasing by 2% every 12 months until October 31, 2020. Rental expense related to the office space amounted to $57,211 and $57,868 for the years ended June 30, 2015 and 2014, respectively.

NOTE 4 - PENSION PLAN

Plan Description: The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee’s date of hire are eligible to participate in the WRS.

Vesting: For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested.

Benefits Provided: Employees who retire at or after age 65 (54 for protective occupation employees, 62 for elected officials and State executive participants) are entitled to receive an unreduced retirement benefit. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable service, and (3) a formula factor.



14

NOTE 4 - PENSION PLAN

Final average earnings is the average of the participant's three highest years' earnings. Creditable service is the creditable current and prior service expressed in years or decimal equivalents of partial years for which a participant receives earnings and makes contributions as required. The formula factor is a standard percentage based on employment category.

Employees may retire at age 55 (50 for protective occupation employees) and receive reduced benefits. Employees terminating covered employment before becoming eligible for a retirement benefit may withdraw their contributions and forfeit all rights to any subsequent benefits.

The WRS also provides death and disability benefits for employees. Post-Retirement Adjustments: The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system’s consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the “floor”) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows:

Year

Core Fund Adjustment

Variable Fund Adjustment

2005 2.6% 7% 2006 0.8 3 2007 3.0 10 2008 6.6 0 2009 (2.1) (42) 2010 (1.3) 22 2011 (1.2) 11 2012 (7.0) (7) 2013 (9.6) 9 2014 4.7 25

Contributions: Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for general category employees, including teachers, and Executives and Elected Officials. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate.



15

NOTE 4 - PENSION PLAN (CONTINUED)

During the reporting period, the WRS recognized $20,040 in contributions from the Authority.

Contribution rates as of June 30, 2015 are:

Employee Category Employee Employer General (including teachers) 6.8% 6.8% Executives & Elected Officials 7.7% 7.7% Protective with Social Security 6.8% 9.5% Protective without Social Security

6.8%

13.1%

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At June 30, 2015, the Authority reported an asset of $52,053 for its proportionate share of the net pension asset. The net pension asset was measured as of December 31, 2014, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2013 rolled forward to December 31, 2014. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The Authority’s proportion of the net pension asset was based on the Authority’s share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2014, the Authority’s proportion was .0021%, which was a decrease of .0001% from its proportion measured as of December 31, 2013.

For the year ended June 30, 2015, the Authority recognized pension expense of $20,712.

At June 30, 2015, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of of Resources Resources

Differences between expected and actual experience 7,546$ -$ Changes in assumptions - - Net differences between projected and actual earnings on pension plan investments 25,207 - Changes in proportion and differences between employer contributions and proportionate share of contributions 1,253 - Employer contributions subsequent to the measurement date 28,501 - Total 62,507$ -$



16


$28,501 reported as deferred outflows related to pension resulting from the Authority’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension asset in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows:

Year ended Deferred Outflow of Deferred Inflows ofJune 30 Resources Resources

2015 6,675$ -$ 2016 6,675 - 2017 6,675 - 2018 6,675 - 2019 6,675 -

Thereafter 631 - Actuarial Assumption: The total pension liability in the December 31, 2014, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Actuarial Valuation Date: December 31, 2013 Measurement Date of Net Pension Liability (Asset)

December 31, 2014

Actuarial Cost Method: Entry Age Asset Valuation Method: Fair Market Value Long-Term Expected Rate of Return: 7.2% Discount Rate: 7.2% Salary Increases: Inflation Seniority/Merit

3.2% 0.2% - 5.8%

Mortality: Wisconsin 2012 Mortality Table Post-retirement Adjustments* 2.1%

* No post-retirement adjustment is guaranteed. Actual adjustments are based on

recognized investment return, actuarial experience and other factors. 2.1% is the assumed annual adjustment based on the investment return assumption and the post-retirement discount rate.

Actuarial assumptions are based upon an experience study conducted in 2012 using experience from 2009 – 2011. The total pension liability for December 31, 2014 is based upon a roll-forward of the liability calculated from the December 31, 2013 actuarial valuation.



17


Long-term expected Return on Plan Assets: The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

Long-Term Real Rate of Return

Target

Allocation US Equities 5.3% 21% International Equities 5.7% 23% Fixed Income 1.7% 36% Inflation Sensitive Assets

2.3%

20%

Real Estate 4.2% 7% Private Equity/Debt 6.9% 7% Multi-Asset 3.9% 6% Cash 0.9% -20%

Single Discount rate: A single discount rate of 7.20% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.20% and a long term bond rate of 3.56%. Because of the unique structure of WRS, the 7.20% expected rate of return implies that a dividend of approximately 2.1% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.



18


Sensitivity of the Authority’s proportionate share of the net pension asset to changes in the discount rate: The following presents the Authority’s proportionate share of the net pension asset calculated using the discount rate of 7.20 percent, as well as what the Authority’s proportionate share of the net pension asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current rate:

1% Decrease to 1% Increase toDiscount Rate Current Discount Discount Rate

(6.2%) Rate (7.2%) (8.2%)District's proportionate share of the net pension liability (asset) 146,851$ (52,053)$ (209,140)$ Pension plan fiduciary net position:. Detailed information about the pension plan’s fiduciary net position is available in separately issued financial statements available at http://legis.wisconsin.gov/lab/ and reference report number 15-11.

NOTE 5 - ASSETS HELD BY TRUSTEES

Resolutions adopted by the Authority have provided for trust and other agreements that establish specific funds to account for the proceeds of the various bond and note issues, notes receivable, debt service payments, payments by the participating health care and educational institutions, and construction and issuance costs. The investments held in specific funds established by such agreements are held by trustees and are excluded from the Statements of Net Position of the operating fund, as described in Note 1.


NOTES TO FINANCIAL STATEMENTSYears Ended June 30, 2015 and 2014

NOTE 6 - REVENUE BONDS

As of June 30, 2015 revenue bonds outstanding were as follows (dollars in thousands):

Revenue Bonds Outstanding Due Interest RateAmount

Outstanding

Meriter Hospital, Series 1992A 1998-2022 5.00%-6.30% 6,960$ Marian College Project, Series 1993 1994-2022 (b) 990 Bellin Memorial Hospital, Inc. Obligated Group, Series 1993 1994-2022 3.00%-5.875% 15,130 Aurora Health Care Obligated Group, Series 1993 1996-2023 3.80%-5.50% 86,295 The Blood Center of Southeastern Wisconsin, Inc., Series 1994A & 1994B 1995-2023 (c) 4,430 St. Francis Home of Fond du Lac, Wisconsin, Inc. Project, Series 1997 1998-2017 (a) 165 Wausau Hospital, Inc. Project, Series 1998B 2011-2021 (a) 13,345 SSM Health Care, Series 1998B 2003-2019 (a) 10,000 Children’s Hospital of Wisconsin, Inc., Series 1998 2011-2028 5.00%-5.625% 4,370 The Richland Hospital, Inc. Project, Series 1998A & 1998B 2001-2028 5.375%-8.00% 13,935 Middleton Glen, Inc. Project, Series 1998 1999-2028 4.40%-5.90% 3,610 Aurora Health Care, Inc., Series 1999C 2029 (a) 50,000 University of Wisconsin Medical Foundation, Inc., Series 2000 2008-2030 (a) 40,070 Madison Family Medicine Residency Corporation, Inc. Project, Series 2000 2001-2021 (a) 2,315 Franciscan Sisters of Christian Charity Healthcare Ministry, Inc. Project, Series 2000 2001-2015 (b) 460 Oakwood Village Project, Series 2000B 2003-2030 (a) 4,105 Wausau Regional Healthcare, Inc. Project, Series 2001 2007-2031 (b) 6,900 Senior Housing of Middleton, Inc. Project, Series 2001 2002-2030 6.00%(c) 3,262 Sinsinawa Nursing, Inc. Project, Series 2001 2003-2026 (a) 1,565 Pooled Loan Financing Program-St. Camillus Health System, Inc., Series 2002E 2003-2022 (a) 990 WHA Capital Access Designated Pool Program- Meriter Retirement Services, Series 2002 2003-2025 (a) 5,290 Viterbo College, Inc., Series 2002 2003-2022 (a) 1,750 Marian College, Series 2003 2004-2022 (a) 840 Mequon Jewish Campus, Inc. Project, Series 2003 2006-2028 (b) 17,135 Watertown Memorial Hospital, Inc. Project, Series 2003 2004-2023 (a) 1,980 Oakwood Village, Series 2003 2004-2028 (a) 7,610 Group Health Cooperative of South Central Wisconsin Project, Series 2004 2006-2024 (a) 5,000 Ministry Health Care, Inc., Series 2004 2008-2034 4.00%-5.00% 106,225

19




Outstanding

Maranatha Baptist Bible College, Inc., Series 2004 2007-2026 (a) 7,700$ Aspirus Wausau Hospital, Inc. Obligated Group, Series 2004 2005-2034 (a) 27,200 Eastcastle Place, Inc. Project, Series 2004A 2008-2034 5.25%-6.125% 17,340 Eastcastle Place, Inc. Project, Series 2004B1 & 2004B-2 2008-2034 6.31%-10.00% 3,724 Oakwood Village, Series 2005 2007-2030 (a) 28,510 Valley Packaging Industries, Inc., Series 2005 2006-2025 (a) 2,150 Community Living Alliance, Inc., Series 2005 2005-2025 4.68% (c) 1,829 Goodwill Industries of North Central, Wisconsin, Inc., Series 2005 2006-2025 (a) 7,390 Marshfield Clinic, Series 2006A 2011-2034 5.00%-5.375% 61,130 Marshfield Clinic, Series 2006B 2011-2036 (a) 56,145 Divine Savior Healthcare, Inc., Series 2006 2006-2032 4.00%-5.50% 22,270 Jewish Home & Care Center, Inc., Series 2006 2011-2035 (a) 12,750 Carroll College, Inc. Project, Series 2006 2006-2026 4.00%-5.25% 4,400 Reedsburg Area Medical Center, Inc., Series 2006A 2008-2026 5.65% 9,150 Ripon College, Series 2006 2036 (a) 23,165

Upland Hills Health, Inc., Series 2006A & 2006B 2007-2036 4.00%-5.125% 16,785 Upland Hills Health, Inc., Series 2006C 2007-2036 (a) 9,450 Watertown Memorial Hospital, Inc. Project, Series 2006 2018-2036 (a) 15,000 Wheaton Franciscan Healthcare System, Series 2006A 2008-2034 5.00%-5.25% 274,780 Ascension Health Senior Credit Group, Series 2006A 2028-2036 5.00% 118,830 Wheaton Franciscan Healthcare System, Series 2006B 2007-2030 4.00%-5.125% 200,150 St. Clare Terrace, Inc., Series 2006A & 2006B 2009-2036 4.50%-5.75% 3,695 Indian Community School of Milwaukee, Inc., Series 2007 2013-2036 (a) 63,000 Franciscan Sisters of Christian Charity Healthcare Ministry, Inc., Series 2007 2008-2033 5.00% 40,335 Catholic Residential Services, Inc., Series 2007 2008-2028 4.25%-5.25% 3,110 Benevolent Corporation Cedar Community, Series 2007 2008-2037 (a) 25,655 Milwaukee Regional Medical Center, Inc., Series 2007 2007-2017 3.89%-4.90% 7,175 Wellington Homes of Wisconsin, LLC Project, Series 2007A & 2007B 2009-2037 5.25%-6.75% 12,255 Community Care, Inc., Series 2007 2008-2032 (a) 4,140 Marquette University Projects, Series 2007A & 2007B 2008-2032 4.00%-5.00% 45,295 Bay Area Medical Center, Inc., Series 2008 2010-2038 (a) 33,115 Essentia Health Obligated Group, Series 2008B-1 2029-2030 5.125% 12,975 St. Norbert College, Inc., Series 2008 2014-2038 (a) 13,255 Meriter Retirement Services, Inc., Series 2008A, 2008B & 2008C 2012-2038 (a) 46,885 Luther Hospital, Series 2008 2011-2030 4.00%-5.75% 77,720

20




Outstanding

Goodwill Industries of North Central, Wisconsin, Inc., Series 2008 2008-2028 (a) 6,220$ Gundersen Lutheran, Series 2008B 2020-2033 (b) 61,400 AE Nursing Centers, Series 2008 2013-2038 7.15%-7.25% 10,945 Children's Hospital of Wisconsin, Inc., Series 2008A 2017-2037 4.50%-5.25% 103,640 Wisconsin Lutheran Child & Family Service, Inc., Series 2008 2010-2033 (a) 2,910 Children's Hospital of Wisconsin, Inc., Series 2008B 2017-2037 4.00%-5.50% 152,300 The Medical College of Wisconsin, Inc., Series 2008A 2009-2035 4.00%-5.25% 78,035 The Medical College of Wisconsin, Inc., Series 2008B 2024-2033 (a) 67,500

The Village at Manor Park/Trinity Health Services, Inc. Project, Series 2008 2008-2028 (a) 19,077 Marquette University, Series 2008B-1 & 2008B-2 2010-2029 2.00%-5.00% 29,825 Aurora Health Care, Inc., Series 2008A & 2008B 2028-2038 (a) 160,000 Marquette University, Series 2008B-3 2010-2029 2.00%-5.00% 20,305 Agnesian HealthCare, Inc., Series 2008 2010-2035 (a) 45,480 Gundersen Lutheran Administrative Services, Inc., Series 2009A & 2009B 2016-2033 (b) 78,715 ThedaCare, Inc., Series 2009A & 2009B 2011-2038 3.50%-5.50% 101,765 Catholic Residential Services, Inc., Series 2009 2015-2039 5.75%-7.75% 4,000 Aurora Health Care, Inc., Series 2009A & 2009B 2010-2027 (c) 157,025 Agnesian Healthcare, Inc., Series 2009 2009-2016 4.072% (c) 1,102

Saint John's Communities, Inc., Series 2009A, 2009B, 2009C-1 & 2009C-2 2010-2039 6.60%-7.625% 39,145 Door County Memorial Hospital Project, Series 2009 2011-2036 (a) 9,614 Froedtert & Community Health, Inc., Obligated Group, Series 2009C 2010-2039 3.00%-5.25% 170,845 Cardinal Stritch University, Series 2009 2011-2034 3.37% (c) 11,225 New Glarus Home, Inc. Project, Series 2009 2010-2034 4.41% (c) 3,517 Divine Savior Healthcare, Inc., Series 2009 2009-2029 3.51% (c) 11,862 Aurora Health Care, Inc., Series 2010A 2011-2039 2.50%-5.625% 166,780 Ascension Health Senior Credit Group, Series 2010E 2029-2033 5.00% 167,320 Sheboygan Senior Community Inc., Series 2010 2010-2020 4.40% 625 Ministry Health Care, Inc., Series 2010A 2011-2023 2.00%-5.00% 42,970 Beloit College, Series 2010A 2012-2039 3.50%-6.125% 24,360 Wisconsin Illinois Senior Housing, Inc. Project, Series 2010 2011-2033 5.00%-7.00% 8,400 SSM Health Care, Series 2010A 2011-2034 2.00%-5.25% 117,415 ThedaCare, Inc., Series 2010 2010-2027 2.50%-5.50% 19,645 Mercy Alliance, Inc., Series 2010A 2011-2026 3.50%-5.50% 27,640 Lakeland College, Series 2010 2011-2028 (c) 13,575

21




Outstanding

Ministry Health Care, Inc., Series 2010B 2014-2035 3.50%-5.50% 59,700$ Viterbo University, Inc., Project, Series 2010 2011-2020 3.36% 5,917 Odd Fellow-Rebekah Home Association, Inc., Series 2010 2010-2030 4.35% (c) 5,117 Reedsburg Area Medical Center, Inc., Series 2010A 2012-2028 2.50%-6.10% 5,025 Beloit Health System, Inc., Series 2010B 2012-2036 3.00%-5.125% 28,710 Pius XI High School, Inc., Series 2010 2010-2035 3.68% (c) 5,671 Watertown Regional Medical Center, Inc., Series 2010 2011-2035 2.95% (c) 1,845 Columbus Community Hospital, Inc., Project, Series 2010 2012-2021 4.01% (c) 4,829 Agnesian Healthare, Inc., Series 2010 2011-2040 3.00%-5.75% 53,510 Aurora Health Care, Inc., Series 2010B 2011-2020 4.00%-5.00% 98,340 Aurora Health Care, Inc., Series 2010C 2013-2026 (a) 103,080 St. Camillus Health System, Inc., Series 2010 2010-2040 3.70% (c) 4,189 Goodwill Industries of North Central Wisconsin, Inc., Series 2010 2011-2030 (a) 10,508 Madison Family Medicine Residency Corporation, Inc., Series 2000 2011-2040 3.68% (c) 5,383 First Assembly of God of Kenosha, Inc., Series 2010 2020-2035 (a) 2,301 Silver Lake College of the Holy Family, Inc., Series 2010 2011-2030 4.08% (c) 3,938 ProHealth Care, Inc. Obligated Group, Series 2011 2011-2019 2.00%-5.00% 18,950 Marquette University, Series 2011A 2011-2020 2.00%-5.00% 15,755 Oconto Hospital & Medical Center, Inc. Project, Series 2011 2013-2041 3.85% (c) 12,872 Gundersen Lutheran, Series 2011A 2012-2039 1.00%-5.25% 143,880 Gundersen Lutheran, Series 2011B 2041 (a) 40,000 Bellin Memorial Hospital, Inc., Series 2011 2012-2024 2.95% 10,375 Agnesian Healthcare, Inc. Series 2011 2012-2020 2.78% 7,154 Aurora Health Care, Inc., Series 2012A 2013-2028 2.50%-5.00% 214,875 Aurora Health Care, Inc. Series 2012B-D 2013-2028 (a) 143,645 Wisconsin Lutheran College, Series 2012 2013-2032 (a) 47,915 St. Camillus Health System, Inc., Series 2012 2012-2035 (a) 14,975 Aspirus Wausau Hospital, Inc., Series 2012 2012-2020 2.22% 22,890 Marshfield Clinic, Series 2012A 2013-2024 2.91% 100,965 The Village at Manor Park, Inc. Project, Series 2012 2012-2033 (a) 1,809 The Monroe Clinic, Inc., Series 2012A 2013-2022 2.59% 11,981 The Monroe Clinic, Inc., Series 2012B 2013-2027 3.20% 20,136 Ministry Health Care, Inc., Series 2012C 2013-2032 2.50%-5.00% 138,335 ProHealth Care, Inc. Obligated Group, Series 2012 2012-2032 2.00%-5.00% 43,005 Beaver Dam Community Hospitals, Inc., Series 2012A 2013-2028 3.05% (c) 14,300 Beaver Dam Community Hospitals, Inc., Series 2012B 2012-2034 (a) 8,220 Ascension Health Alliance Senior Credit Group, Series 2012D 2041 5.00% 88,145

22




Outstanding

Mercy Alliance, Inc., Series 2012 2018-2039 4.375%-5.00% 169,475$ Howard Young Health Care, Inc., Series 2012 2012-2030 2.50%-5.00% 18,310 Divine Savior Healthcare, Inc., Series 2012 2012-2027 2.08% (c) 9,287 Carthage College, Inc., Series 2012 2029 2.05% (c) 6,250 Marshfield Clinic, Series 2012B 2013-2040 1.10%-5.00% 103,185 Agnesian HealthCare, Inc., Series 2012A 2013-2027 4.00% 11,563 Attic Angel Obligated Group, Series 2012A & 2012B 2012-2032 3.00% (c) 14,071 Attic Angel Obligated Group, Series 2012C 2022-2034 3.029% (c) 5,800 Tomah Memorial Hospital, Inc., Series 2012 2012-2027 3.65% 6,659 Wisconsin Illinois Senior Housing, Inc. Project, Series 2012 2015-2042 3.00%-5.875% 13,600 Meriter Hospital, Series 2012A 2012-2024 2.16% (c) 15,275 Meriter Hospital, Series 2012C 2013-2037 1.28% (c) 19,215 Southwest Health Center, Inc., Series 2012A 2012-2027 3.50% 15,301 Southwest Health Center, Inc., Series 2012B 2012-2034 2.86% (c) 4,949 Watertown Regional Medical Center, Inc., Series 2012A 2013-2042 1.50%-5.00% 15,625 Watertown Regional Medical Center, Inc., Series 2012B 2013-2037 2.72% (c) 11,370 Lawrence University of Wisconsin, Series 2012 2014-2023 1.40%-3.50% 9,455 United Lutheran Program for the Aging, Inc., Series 2012A 2012-2028 2.79% (c) 13,460 United Lutheran Program for the Aging, Inc., Series 2012B 2012-2022 (a) 4,675 Gundersen Lutheran, Series 2012 2013-2044 2.00%-5.00% 69,685 Hospital Sisters Services, Inc. Obligated Group, Series 2012B 2013-2021 2.00%-5.00% 62,430 Stoughton Hospital Association, Series 2012 2012-2025 1.92% (c) 3,608 Hudson Hospital, Inc., Series 2012 2012-2029 3.61% 18,064 Marquette University, Series 2012 2013-2032 2.00%-5.00% 82,625 Froedtert Health, Inc. Obligated Group, Series 2012A 2014-2042 3.00%-5.00% 153,180 Maryhill Manor, Inc., Series 2012 2012-2022 4.25% 1,682 Goodwill Industries of North Central Wisconsin, Inc., Series 2012 2013-2032 (a) 1,221 ThedaCare, Inc., Series 2012A 2015-2030 1.95% (c) 49,745 LindenGrove, Inc., Series 2012A 2013-2035 1.50%-5.00% 17,015 LindenGrove, Inc., Series 2012B 2014-2026 (a) 6,070 LindenGrove, Inc., Series 2012C 2014-2032 2.42% (c) 7,375 Milwaukee Catholic Home, Inc., Series 2012 2015-2032 (a) 5,300 Goodwill Industries of Southeastern Wisconsin, Inc., Series 2012 2014-2037 (a) 12,625 Harwood Place, Inc., Series 2012 2013-2028 2.90% (c) 10,990 Carroll University, Inc., Series 2012 2013-2021 1.90% (c) 3,638

23




Outstanding

Saint John's Communities, Inc., Series 2012 2016-2032 2.91% (c) 9,580$ Sauk-Prairie Memorial Hospital, Inc., Series 2013A 2032-2048 5.125%-5.375% 38,000 Sauk-Prairie Memorial Hospital, Inc., Series 2013B 2015-2032 (a) 29,387 Beloit Health System, Inc., Series 2013 2014-2029 (a) 9,838 Clement Manor, Inc., Series 2013 2013-2030 3.09% (c) 13,570 Agnesian HealthCare, Inc., Series 2013A 2017-2024 1.89% 5,705 Agnesain HealthCare, Inc., Series 2013B 2024-2036 3.65%-5.00% 48,265 Aspirus, Inc. Obligated Group, Series 2013 2013-2043 2.00%-4.25% 89,130 Community Memorial Hospital, Incorporated, Series 2013 2013-2033 2.72% (c) 8,283 SASC, Inc. Project, Series 2013 2014-2038 1.65%-4.90% 6,740 Three Pillars Senior Living Communities, Series 2013 2014-2043 2.00%-5.00% 22,435 Ascension Health Alliance Senior Credit Group, Series 2013A 2013-2043 2.00%-5.00% 96,540 Ascension Health Alliance Senior Credit Group, Series 2013B 2018-2043 (b) 413,315 Beaver Dam Community Hospitals, Inc. Series 2013 2013-2034 .75%-5.25% 41,520 Wheaton Franciscan Services, Inc. Obligated Group, Series 2013A 2014-2023 2.00% 76,680 Mount Mary University, Inc., Series 2013A & 2013B 2014-2039 (a) 9,690 Aurora Health Care, Inc., Series 2013A 2030-2035 5.125%-5.250% 115,750 Youth Services LLC Project, Series 2013 2013-2038 4.57% (c) 1,579 Colonial View, Ltd., Series 2013 2013-2033 3.469% (c) 2,360 Wisconsin Illinois Senior Housing, Inc. Project, Series 2013 2016-2043 4.00%-7.00% 7,955 Carthage College, Series 2013 2017 1.66%-1.93% 20,000 St. Norbert College, Inc., Series 2013 2014-2033 2.85% (c) 4,085 Milwaukee Catholic Home, Inc., Series 2013 2014-2026 2.95% 10,166 Southwest Health Center, Inc., Series 2013 2015-2038 3.30% (c) 7,072 Froedtert Health, Inc. Obligated Group, Series 2013A & Series 2013B 2014-2035 (a) 170,630 Cedar Crest, Inc., Series 2013 2014-2035 1.42% (c) 17,595 Evergreen Retirement Community, Inc. Project, Series 2013 2014-2033 3.25% (c) 7,000 Benevolent Corporation Cedar Community Project, Series 2013 2014-2033 1.17%-3.11% (c) 3,853 Reedsburg Area Medical Center, Inc., Series 2014A & Series 2014B 2014-2036 2.56% (c) 14,343 Bethany Lutheran Homes, Inc. Project, Series 2014 2015-2041 3.22% (c) 21,400 Mile Bluff Medical Center, Inc., Series 2014 2015-2039 2.00%-5.75% 27,725 Pine Haven Christian Home, Inc., Series 2014A 2014-2034 3.00% (c) 10,000 Pine Haven Christian Home, Inc., Series 2014B 2014-2044 3.29% (c) 18,660 Beloit College, Series 2014 2014-2037 (a) 29,426

24




Outstanding

UnityPoint Health, Series 2014A 2014-2029 1.00%-5.00% 85,560$ UnityPoint Health, Series 2014B-1 & Series 2014B-2 2030-2041 (a) 85,000 District Council of Madison, Inc., Society of St. Vincent de Paul Project, Series 2014 2014-2039 2.88% (c) 9,423 Sheboygan Senior Community, Inc. Project, Series 2014 2015 2.00% 11,486 Woodside Senior Communities Project, Series 2014 2017-2044 (c) 13,000 ThedaCare, Inc., Series 2014A 2015-2024 (a) 11,554 Alverno College, Series 2014A 2015-2029 (c) 13,100 Alverno College, Series 2014B 2015-2021 (a) 10,607 Rogers Memorial Hospital, Incorporated., Series 2014A & 2014B 2015-2044 2.00%-5.00% 51,785 Felician Services, Inc., Series 2014 2015-2024 (c) 35,900 Kirkland Crossings, Inc., Series 2014 2014-2034 (c) 15,718 Dickson Hollow Project, Series 2014 2017-2049 2.75%-5.50% 44,235 Spooner Health System, Inc., Series 2014 2015-2039 (c) 21,200 The Cumberland Memorial Hospital and Extended Care Unit, Inc., Series 2014 2015-2024 3.03% 2,800 Lawrence University of Wisconsin, Series 2014 2023-2040 (a) 35,505 Divine Savior Healthcare, Inc. Project, Series 2014 2014-2034 (c) 9,725 Hospital Sisters Services, Inc. Obligated Group, Series 2014A 2015-2029 5.00% 180,000 Woodland Hill Senior Housing Project, Series 2014 2017-2049 2.00%-5.25% 44,485

Goodwill Industries of Southeastern Wisconsin, Inc., Series 2014A, Series 2014B, Series 2014C and Series 2014D 2015-2039 (a) 35,395 Vernon Memorial Healthcare, Inc., Series 2014 2016-2034 4.00%-5.00% 18,615 Wisconsin Illinois Senior Housing, Inc., Series 2014 2015-2036 (c) 13,780 The Medical College of Wisconsin, Inc., Series 2014A 2015-2024 2.10% 18,450 The Medical College of Wisconsin, Inc., Series 2014B 2015-2026 2.36% 13,930 Marquardt Village Obligated Group, Series 2014A 2017-2045 (c) 11,044 Marquardt Village Obligated Group, Series 2014B 2017-2045 (a) 11,044 ProHealth Care, Inc. Obligated Group, Series 2014A & 2014B 2016-2044 (a) 204,800 Franciscan Sisters of Christian Charity Sponsored Ministries, Inc., Series 2014A & 2014B 2016-2034 (a) 17,329 Fort Healthcare, Inc., Series 2014 2015-2034 4.00%-5.00% 28,195 ThedaCare, Inc., Series 2015 2015-2044 3.00%-5.00% 125,670 Riverfront Foundation, Inc. & Riverfront Activity Center, Incorporated, Series 2015 2015-2024 3.35% 1,405 ProHealth Care, Inc. Obligated Group, Series 2015 2025-2039 2.75%-5.00% 133,630 Sixteenth Street Community Health Centers, Inc., Series 2015 2015-2032 (a) 4,946

25




Outstanding

Bellin Memorial Hospital, Inc., Series 2015 2015-2031 2.00%-5.00% 45,105$ Carthage College, Series 2015 2020-2029 (c) 10,250 Aspirus, Inc. Obligated Group, Series 2015A 2015-2045 2.00%-5.00% 42,975 Aspirus, Inc. Obligated Group, Tax-Exempt Loan, Series 2015 2022-2039 (c) 33,685 All Saints Assisted Living Center, Inc., Series 2015A & 2015B 2015-2045 (a) 30,418 Wheaton Franciscan Services, Inc. Obligated Group, Series 2015A & 2015B 2015-2036 (a) 138,780 Edgewood College, Inc., Series 2015 2015-2040 (a) 16,870 Fort HealthCare, Inc., Series 2015 2016-2035 (c) 16,480

Total revenue bonds outstanding 9,211,546$

Advance Refunded Bonds Due Interest RateAmount

Outstanding

Felician Health Care, Inc., Series 1992B 2004-2022 6.25% 2,670$ Villa St. Francis, Inc., Series 1992C 1996-2022 4.80%-6.25% 4,665 Milwaukee Catholic Home, Inc., Series 2006 2007-2017 3.85%-5.00% 10,700 Riverview Hospital Association, Series 2008 2009-2018 4.00%-5.75% 25,885 Marquette University, Series 2008B-1 & 2008B-2 2015-2019 2.85%-5.00% 13,685 Marquette University, Series 2008B-3 2015-2019 3.50%-5.00% 8,275 ProHealth Care, Inc. Obligated Group, Series 2009 2009-2019 6.00%-6.625% 126,855 Meriter Hospital, Inc., Series 2009 2012-2019 4.00%-6.00% 41,175 The Medical College of Wisconsin, Inc., Series 2010 2011-2022 2.00%-5.50% 22,630 Riverview Hospital Association, Series 2010 2011-2021 3.00%-5.375% 17,825 Meriter Hospital, Inc., Series 2011 2012-2021 3.00%-6.00% 38,800

Total advance refunded bonds outstanding 313,165$

Total bonds outstanding 9,524,711$

As of June 30, 2015, the following bond issues had all or a portion of their bonds advance refunded. The amounts outstanding were as follows (dollars in thousands):

(a) Adjustable rate determined by remarketing agreement or agent.(b) Adjustable rate as an applicable percentage of the 13-week T-Bill rate, LIBOR or SIFMA Index; or as an applicable percentage of non-financial commercial paper rate.(c) Rate is reset at end of applicable term.

26



NOTE 6 - REVENUE BONDS (CONTINUED)

Fiscal Year Ending June 30,

Mandatory Sinking Fund Requirements

2016 285,170$ 2017 275,670 2018 334,500 2019 473,155 2020 339,398 2021 372,099 2022 344,690 2023 340,791 2024 369,164 2025 383,806 2026 376,890 2027 404,782 2028 412,285 2029 530,375 2030 380,840 2031 397,493 2032 392,005 2033 445,651 2034 400,356 2035 384,241 2036 351,524 2037 272,521 2038 217,965 2039 177,685 2040 136,884 2041 107,527 2042 233,216 2043 88,844 2044 181,065 2045 75,284 2046 10,050 2047 7,595 2048 8,020 2049 6,365 2050 6,805 Total 9,524,711$

As of June 30, 2015, there were 244 revenue bond issues outstanding. These bonds mature at various dates, with mandatory sinking fund requirements due as follows (dollars in thousands):

27

THE NET PENSION ASSET

2015

Authority's proportion of the net pension asset 0.002%Authority's proportionate share of the net pension asset 52,053$ Authority's covered-employee payroll 286,280$ Plan fiduciary net position as a percentage of the total

pension asset 102.74%

* The amounts presented for each fiscal year were determined as of the calendar year-end that occurred within the fiscal year. The Authority implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - An amendment of GASB 27 for the fiscal year ended June 30, 2015. Information for prior years is not available.


SCHEDULE OF AUTHORITY'S PROPORTIONATE SHARE OF

WISCONSIN RETIREMENT SYSTEMLast 10 Fiscal Years*

28

2015

Contractually required contributions 20,040$ Contributions in relation to the contractually required contributions (20,040)$ Contribution deficiency (excess) -$ Covered-employee payroll 286,280$ Contributions as a percentage of covered-employee payroll 7.00%

* The amounts presented for each fiscal year were determined as of the calendar year-end that occurred within the fiscal year. The Authority implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - An amendment of GASB 27 for the fiscal year ended June 30, 2015. Information for prior years is not available.


SCHEDULE OF AUTHORITY CONTRIBUTIONSWISCONSIN RETIREMENT SYSTEM

Last 10 Fiscal Years*

29

SchenckCPAs AND SO MUCH MORE.

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING

STANDARDS

Independent Auditors' Report

To the Members of the Wisconsin Health and

Educational Facilities AuthorityBrookfield, Wisconsin

We have audited in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States, the financial statements ofWisconsin Health and Educational Facilities Authority ("the Authority") as of and for the year endedJune 30, 2015 and the related notes to the financial statements and have issued our report thereonwhich included an emphasis of matter paragraph October 22, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Authority'sinternal control over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinion on the financialstatements, but not for the purpose of expressing an opinion of the effectiveness of the Authority'sinternal control. Accordingly, we do not express an opinion on the effectiveness of the Authority'sinternal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct misstatements on a timely basis. A material weakness is a deficiency, orcombination of deficiencies, in internal control such that there is a reasonable possibility that amaterial misstatement of the Authority's financial statements will not be prevented, or detected andcorrected on a timely basis. A significant deficiency is a deficiency, or a combination ofdeficiencies, in internal control that is less severe than a material weakness, yet important enoughto merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and was not designed to identify all deficiencies in internal controlthat might be material weaknesses or significant deficiencies. Given these limitations, during ouraudit we did not identify any deficiencies in internal control over financial reporting that we considerto be material weaknesses. However, material weaknesses may exist that have not been identified.

IHTEKNATIONit Appleton • Fond du Lac • GreenBay • Manitowoc • Milwaukee • Oshkosh • Sheboygan • Wausau schencksc.com • 800-236-2246

Schenck sc

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Authority's financial statements arefree of material misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinionon compliance with those provisions was not an objective of our audit, and accordingly, we do notexpress such an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theAuthority's internal control or on compliance. This report is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the Authority's internal control andon compliance. Accordingly, this communication is not suitable for any other purpose.

^duyv^J^ A-t^Certified Public Accountants

Milwaukee, WisconsinOctober 22, 2015

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WHEFA Annual Report 2015

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