TheNewStandardAcademy Flint,Michigan AuditedFinancialStatements June30,2015
CONTENTS Page
IndependentAuditor’sReport iͲiii Management’sDiscussionandAnalysis ivͲix BasicFinancialStatements StatementofNetPosition 1 StatementofActivities 2 CombinedBalanceSheet–AllGovernmentalFunds 3 ReconciliationofTotalGovernmentalFundBalance toNetPositionofGovernmentalActivities 4 StatementofRevenues,ExpendituresandChangesin FundBalance–AllGovernmentalFunds 5 ReconciliationoftheStatementofRevenues,Expenditures andChangesinFundBalanceofGovernmentalFundsto theStatementofActivities 6 NotestoFinancialStatements 7Ͳ17 SupplementalInformation BudgetaryComparisonSchedule–GeneralFund 18 ScheduleofRevenues–GeneralFund 19 ScheduleofExpenditures–GeneralFund 20Ͳ21
CONTENTS–Continued
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AppendixͲFederalAwardsSupplementalInformation IndependentAuditor’sReportonInternalControlOverFinancialReporting andonComplianceandOtherMattersBasedonanAuditofFinancial StatementsPerformedinAccordancewithGovernmentAuditingStandards AͲ1–AͲ2 IndependentAuditor’sReportonComplianceforEachMajorProgram andonInternalControlOverComplianceRequiredbyOMBCircularAͲ133 AͲ3–AͲ4 ScheduleofExpendituresofFederalAwards AͲ5–AͲ6 ReconciliationofBasicFinancialStatementsFederalRevenueand ReceivableswithScheduleofExpendituresofFederalAwards AͲ7 NotestoScheduleofExpendituresofFederalAwards AͲ8 ScheduleofFindingsandQuestionedCosts AͲ9
345 Diversion Street Ɣ Suite 400 44725 Grand River Avenue Ɣ Suite 204 2505 NW Boca Raton Blvd. Ɣ Suite 202 Rochester, MI 48307 Novi, Michigan 48375 Boca Raton, Florida 33431-6652 Phone: 248.659.5300 Phone: 248.659.5300 Phone: 561.241.1040 Fax: 248.659.5305 Fax: 248.659.5305 Fax: 561.368.4641 www.croskeylanni.com
David M. Croskey, CPA Thomas B. Lanni, CPA Carolyn A. Jones, CPA, CFP® MST Clifton F. Powell Jr., CPA, CFP®, PFS Roger J. DeJong, CPA Patrick M. Sweeney, CPA Leonard A. Geronemus, CPA, PFS
INDEPENDENTAUDITOR’SREPORT
TotheBoardofDirectors ofTheNewStandardAcademy Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,eachmajorfundandthe aggregateremainingfundinformationofTheNewStandardAcademy,asofandfortheyearendedJune30,2015,and therelatednotestothefinancialstatements,whichcollectivelycompriseTheNewStandardAcademy’sbasicfinancial statementsaslistedinthetableofcontents. Management’sResponsibilityfortheFinancialStatements Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewith accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludesthedesign,implementation,and maintenanceofinternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefree frommaterialmisstatement,whetherduetofraudorerror. Auditor’sResponsibility Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedourauditin accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaandthestandardsapplicableto financialauditscontainedinGovernmentAuditingStandards,issuedbytheComptrollerGeneraloftheUnitedStates. Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancial statementsarefreefrommaterialmisstatement. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial statements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksof materialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,the auditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsin ordertodesignauditproceduresthataretheappropriateinthecircumstances,butnotforthepurposeofexpressingan opinionontheeffectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalso includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccounting estimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit opinion.
Opinions Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,therespectivefinancial positionofgovernmentalactivities,eachmajorfund,andtheaggregateremainingfundinformationofTheNew StandardAcademy,asofJune30,2015,andtherespectivechangesinfinancialpositioncashflowsthereoffortheyear thenendedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica. OtherMatters RequiredSupplementaryInformation AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericarequirethatthemanagement’sdiscussionand analysisandbudgetarycomparisoninformationonpagesivͲixand18bepresentedtosupplementthebasicfinancial statements.Suchinformation,althoughnotapartofthebasicfinancialstatements,isrequiredbytheGovernmental AccountingStandardsBoard,whoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicfinancial statementsinanappropriateoperational,economic,orhistoricalcontext.Wehaveappliedcertainlimitedprocedures totherequiredsupplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedintheUnited StatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethodsofpreparingtheinformationand comparing the information for consistency with management’s responses to our inquiries, the basic financial statements,andotherknowledgeweobtainedduringourauditofthebasicfinancialstatements.Wedonotexpressan opinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficient evidencetoexpressanopinionorprovideanyassurance. OtherInformation OurauditwasconductedforthepurposeofformingopinionsonthefinancialstatementsthatcollectivelycompriseThe NewStandardAcademy’sbasicfinancialstatements.Theintroductorysection,combiningandindividualnonͲmajor fundfinancialstatements,statisticalsection,andschedulesofrevenuesandexpendituresarepresentedforpurposesof additionalanalysisandarenotarequiredpartofthebasicfinancialstatements.Thescheduleofexpendituresoffederal awardsispresentedforpurposesofadditionalanalysisasrequiredbyU.S.OfficeofManagementandBudgetCircularAͲ 133,AuditsofStates,LocalGovernments,andNonͲProfitOrganizations,andisalsonotarequiredpartofthebasic financialstatements. ThecombiningandindividualnonͲmajorfundfinancialstatements,thescheduleofexpendituresoffederalawards,and schedulesofrevenuesandexpendituresaretheresponsibilityofmanagementandwerederivedfromandrelatedirectly totheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatements.Suchinformationhas beensubjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsandcertainadditional procedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccountingandother recordsusedtopreparethebasicfinancialstatementsortothebasicfinancialstatementsthemselves,andother additionalproceduresinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inour opinion,thecombiningandindividualnonͲmajorfundfinancialstatements,thescheduleofexpendituresoffederal awards,andschedulesofrevenuesandexpendituresarefairlystated,inallmaterialrespects,inrelationtothebasic financialstatementsasawhole. Theintroductoryandstatisticalsectionshavenotbeensubjectedtotheauditingproceduresappliedintheauditofthe basicfinancialstatementsand,accordingly,wedonotexpressanopinionorprovideanyassuranceonthem. ii
OtherReportingRequiredbyGovernmentAuditingStandards InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedOctober20,2015onour consideration of The New Standard Academy’s internal control over financial reporting and on our tests of its compliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.The purposeofthatreportistodescribethescopeofourtestingofinternalcontroloverfinancialreportingandcompliance andtheresultsofthattesting,andnottoprovideanopiniononinternalcontroloverfinancialreportingoron compliance.ThatreportisanintegralpartofanauditperformedinaccordancewithGovernmentAuditingStandardsin consideringTheNewStandardAcademy’sinternalcontroloverfinancialreportingandcompliance.
CroskeyLanni,PC October20,2015 Rochester,Michigan iii
MANAGEMENT’SDISCUSSIONANDANALYSIS
ThissectionofTheNewStandardAcademy’s,annualfinancialreportpresentsourdiscussionandanalysisoftheschool’s financialperformanceduringthefiscalyearthatendedonJune30,2015.Pleasereaditinconjunctionwiththeschool’s financialstatements,whichimmediatelyfollowthissection. FINANCIALHIGHLIGHTS Thetotalcostofbasicprogramswas$1,767,137. Revenueswereat$5,469,584whileexpenditureswere$5,318,560intheGeneralFund. Blendedenrollmentusedforstateaidpurposeswas611,anincreaseof101. TheschoolhasapositiveGeneralFundbalanceof$178,611. OVERVIEWOFTHEFINANCIALSTATEMENTS Thisannualreportconsistsofthreeparts–management’sdiscussionandanalysis(thissection),thebasicfinancial statementsandrequiredsupplementaryinformation.Thebasicfinancialstatementsincludetwokindsofstatements thatpresentdifferentviewsoftheschool: ThefirsttwostatementsareschoolͲwidefinancialstatementsthatprovidebothshortͲtermandlongͲ terminformationabouttheschool’soverallfinancialstatus. Theremainingstatementsarefundfinancialstatementsthatfocusonindividualpartsoftheschool, reportingtheschoolsoperationsinmoredetail. Thegovernmentalfundstatementstellhowbasicserviceslikeregularandspecialeducationwere financed. Fiduciaryfundsstatementsprovideinformationaboutthefinancialrelationshipsinwhichtheschool actssolelyasatrusteeoragentforthebenefitofothers.Theseconsistofstudentactivityfundsheld bytheschoolonbehalfofthestudentgroup. iv
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Summary Detail Thefinancialstatementsalsoincludenotesthatexplainsomeoftheinformationinthestatementsandprovidemore detaileddata.Thestatementsarefollowedbyasectionofrequiredsupplementaryinformationthatfurtherexplains andsupportsthefinancialstatementswithacomparisonoftheschool’sbudgetfortheyear.FigureAͲ1showshowthe variouspartsofthisannualreportarearrangedandrelatedtooneanother. FundFinancialStatements SchoolͲWide Statements GovernmentFunds FiduciaryFunds Scope Entireschool(except fiduciaryfunds) Theactivitiesoftheschoolthatarenot proprietaryorfiduciary,suchasspecial educationandbuildingmaintenance. Instancesinwhichtheschool administersresourcesonbehalf ofsomeoneelse,suchas scholarshipprogramsand studentactivitiesmonies Required financial statements *Statementofnet assets *Statementofactivities *Balancesheet *Statementofrevenues,expenditures andchangesinfundbalances *Statementoffiduciarynet assets *Statementofchangesin fiduciarynetassets Accounting basisand measurement focus Accrualaccountingand economicresources focus Modifiedaccrualaccountingandcurrent financialresources Accrualaccountingand economicresourcesfocus Typeof asset/liability information Allassetsandliabilities bothfinancialand capital,shortͲtermand longͲterm Generallyassetsexpectedtobeusedup andliabilitiesthatcomedueduringthe yearorsoonthereafter,nocapitalassets orlongͲtermliabilitiesincluded Allassetsandliabilities,both shortͲtermandlongͲterm Typeof inflow/outflow information Allrevenuesand expensesduringyear, regardlessofwhencash isreceivedorpaid Revenuesforwhichcashisreceived duringorsoonaftertheendoftheyear, expenditureswhengoodsorservices havebeenreceivedandtherelated liabilityisdueandpayable Alladditionsanddeductions duringtheyear,regardlessof whencashisreceivedorpaid v FigureAͲ1 OrganizationofTheNewStandard’sAnnualFinancial Report Management’s Discussionand Analysis BasicFinancial Statements Required Supplementary Information Notesto Financial Statements SchoolͲWide Financial Statements FundFinancial Statements FigureAͲ2 MajorFeaturesofSchoolͲWideandFundFinancialStatements
FigureAͲ2summarizesthemajorfeaturesoftheschool’sfinancialstatements,includingtheportionoftheschools activities they cover and the types of information they contain.The remainder of this overview section of management’sdiscussionandanalysishighlightsthestructureandcontentsofeachofthestatements. SCHOOLͲWIDESTATEMENTS TheschoolͲwidestatementsreportinformationabouttheschoolasawholeusingaccountingmethodssimilartothose usedbyprivateͲsectorcompanies.Thestatementofnetpositionincludesalloftheschool’sassetsandliabilities.Allof thecurrentyear’srevenuesandexpensesareaccountedforinthestatementofactivitiesregardlessofwhencashis receivedorpaid. ThetwoschoolͲwidestatementsreporttheschool’snetpositionandhowithaschanged.Netposition–thedifference betweentheschool’sassetsandliabilities–areonewaytomeasuretheschool’sfinancialhealthorposition. Overtime,increasesordecreasesintheschool’sassetsareanindicatorofwhetheritsfinancialpositionis improvingordeteriorating,respectively. Toassesstheoverallhealthoftheschool,youneedtoconsideradditionalnonͲfinancialfactorssuchaschanges intheschool’senrollmentandtheconditionofschoolbuildingsandotherfacilities. FUNDFINANCIALSTATEMENTS Thefundfinancialstatementsprovidemoredetailedinformationabouttheschool’sfunds,focusingonit’smost significantor“major”funds–nottheschoolasawhole.Fundsareaccountingdevicestheschoolusestokeeptrackof specificsourcesoffundingandspendingonparticularprograms: Governmentalactivities–Mostoftheschool’sbasicservicesareincludedinthegeneralfund,suchasregular andspecialeducationandadministration.Statefoundationaidfinancesmostoftheseactivities. Theschoolestablishesotherfundstocontrolandmanagemoneyforparticularpurposes(likerepayingitslongͲ termdebts)ortoshowthatitisproperlyusingcertainrevenues. Theschoolhasonekindoffund: Governmentalfunds–Mostoftheschool’sbasicservicesareincludedingovernmentalfunds,whichgenerally focuson(1)howcashandotherfinancialassetsthatcanreadilybeconvertedtocashflowinandoutand(2)the balancesleftatyearͲendthatareavailableforspending.Consequently,thegovernmentalfundsstatements provide a detailed shortͲtermview that helps you determine whether there are more or fewer financial resourcesthatcanbespentinthenearfuturetofinancetheschool’sprograms.Becausethisinformationdoes notencompasstheadditionallongͲtermfocusoftheschoolͲwidestatements,weprovideadditionalinformation withgovernmentalfundsstatementsthatexplainstherelationship(ordifferences)betweenthem. vi
FINANCIALANALYSISOFTHESCHOOLASAWHOLE Theschool’sfinancialpositionistheproductofmanyfactors. GeneralFundBudgetaryAnalysis Overthecourseoftheyear,theschoolreviewedandamendedtheannualoperatingbudgetseveraltimes. FinancialOutlook TheNewStandardAcademy’sfinancialforecastcontinuestobeoptimisticheadingintothe2015/2016schoolyear. Enrollmentcontinuestogrowforthe2015Ͳ2016schoolyearwithanexpectedenrollmentof641upfrom611 forthe2014Ͳ2015schoolyear.
2015 2014
1,785,692$ 1,669,346 $ 296,126 373,777
2,081,818 2,043,123
146,939 249,107 1,538,016 1,641,759
1,684,955 1,890,866
Netinvestmentincapitalassets 149,187 124,670 247,676 27,587 396,863$ 152,257 $
TableAͲ3 TheNewStandardAcademy'sNetPosition
Totalliabilities
Currentandotherassets Capitalassets
Totalassets
Totalnetposition
LongͲtermdebtoutstanding Otherliabilities
Netposition:
Unrestricted
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Revenues: 2015 2014
Ͳ$ 138 $ 1,459,390 1,316,834
4,456,484 3,653,096 8,093 11,372
5,923,967 4,981,440
Expenses:
2,358,809 2,080,756 3,175,856 2,671,472 25,416 37,363 119,280 113,444
5,679,361 4,903,035
Increase(decrease)innetposition 244,606 $ 78,405 $
TableAͲ4 ChangesinTheNewStandardAcademy'sNetPosition
Federalandstateoperatinggrants Chargesforservices Programrevenues:
Supportservices InterestonlongͲtermdebt Unallocateddepreciation
Totalexpenses
Generalrevenues: StateaidͲunrestricted Miscellaneous
Totalrevenues
Instruction
CAPITALASSETANDDEBTADMINISTRATION CapitalAssets Bytheendof2015,theschoolhadinvested$619,910incapitalassets,includingcomputersandsoftware.SeetableAͲ5 belowforalistingofcapitalassets,andtheaccumulateddepreciation.
Balance Balance June30,2015 June30,2014 Equipment 132,259 $ 132,259 $ Furniture 193,640 170,476 Technologyequipment 252,557 252,557 Other 41,454 22,989 Subtotal 619,910 578,281 Less:accumulateddepreciation 323,784 204,504 Netbookvalueofassets 296,126 $ 373,777 $
TheNewStandardAcademy'sCapitalAssets TableAͲ5
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LongͲTermDebt TheAcademyhad$146,939inlongͲtermdebtasofJune30,2015.AdditionalinformationcanbefoundinNote8ofthe financialstatements. FACTORSBEARINGONTHESCHOOL’SFUTURE x Continuationofpositiveenrollmenttrends x Stateaidfoundationgrantstabilization CONTACTINGTHESCHOOL’SFINANCIALMANAGEMENT Thisfinancialreportisdesignedtoprovideourstudents,parentsandcreditorswithageneraloverviewoftheschool’s financesandtodemonstratetheschool’saccountabilityforthemoneyitreceives.Ifyouhavequestionsaboutthis reportorneedadditionalinformation,contactthemanagementofficeat: TheRomineGroup7877Stead,Utica,MI48317(586)731Ͳ5300 ix
THENEWSTANDARDACADEMY STATEMENTOFNETPOSITION JUNE30,2015 SeeIndependentAuditor’sReport
CurrentAssets
Cashandcashequivalents 295,997 $ Duefromothergovernmentalunits 1,480,743 Prepaidexpenses 8,952
Totalcurrentassets 1,785,692
CapitalAssetsͲNetofAccumulatedDepreciation 296,126
Totalassetsanddeferredoutflows 2,081,818 $
CurrentLiabilities Accountspayable 983,525 $ Notespayable 181,170 Otheraccruedexpenses 373,321 LongͲtermdebtͲcurrentportion 115,696
Totalcurrentliabilities 1,653,712
LongͲTermDebtͲLongͲTermPortion 31,243
NetPosition
Netinvestmentincapitalassets 149,187 Unrestricted 247,676
Totalnetposition 396,863
Totalliabilities,deferredinflowsandnetposition 2,081,818 $
ASSETSANDDEFERREDOUTFLOWS
LIABILITIES,DEFERREDINFLOWSANDNETPOSITION
Seeaccompanyingnotestofinancialstatements
Ͳ1Ͳ
THENEWSTANDARDACADEMY STATEMENTOFACTIVITIES FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
Net(Expense) Revenuesand Changesin ProgramRevenues NetAssets Government Chargesfor Operating Type Expenses Services Grants Activities
Functions Instruction Basicprograms 1,767,137 $ Ͳ $ 455,859 $ (1,311,278) $ Addedneeds 591,672 Ͳ 506,487 (85,185) Supportservices Pupilsupportservices 5,856 Ͳ Ͳ (5,856) Instructionalstaffsupportservices 17,089 Ͳ 10,337 (6,752) Generaladministration 664,812 Ͳ Ͳ (664,812) Schooladministration 390,861 Ͳ Ͳ (390,861) Businesssupportservices 11,725 Ͳ Ͳ (11,725) Operationsandmaintenance 1,364,213 Ͳ 32,324 (1,331,889) Pupiltransportationservices 320,000 Ͳ Ͳ (320,000) Centralsupportservices 6,441 Ͳ Ͳ (6,441) Athleticactivities 9,541 Ͳ Ͳ (9,541) Foodservices 385,318 Ͳ 454,383 69,065 Unallocateddepreciation 119,280 Ͳ Ͳ (119,280) Unallocatedinterest 25,416 Ͳ Ͳ (25,416)
Totalprimarygovernment 5,679,361 $ Ͳ $ 1,459,390 $ (4,219,971)
GeneralPurposeRevenues StateschoolaidͲunrestricted 4,456,484 Miscellaneousrevenues 8,093 Totalgeneralpurposerevenues 4,464,577
Changeinnetposition 244,606
NetpositionͲJuly1,2014 152,257
NetpositionͲJune30,2015 396,863 $
Seeaccompanyingnotestofinancialstatements
Ͳ2Ͳ
THENEWSTANDARDACADEMY COMBINEDBALANCESHEET–ALLGOVERNMENTALFUNDS JUNE30,2015 SeeIndependentAuditor’sReport
NonͲMajor General SpecialRevenue Total
Cashandcashequivalents 295,997 $ Ͳ $ 295,997 $ Duefromothergovernmentalunits 1,480,743 Ͳ 1,480,743 Duefromotherfunds Ͳ 69,065 69,065 Prepaidexpenses 8,952 Ͳ 8,952
Totalassets 1,785,692 $ 69,065 $ 1,854,757 $
Liabilities Accountspayable 983,525 $ Ͳ $ 983,525 $ Notespayable 181,170 Ͳ 181,170 Duetootherfunds 69,065 Ͳ 69,065 Otheraccruedexpenses 373,321 Ͳ 373,321
Totalliabilities 1,607,081 Ͳ 1,607,081
FundBalance Nonspendable 8,952 Ͳ 8,952 Restricted Ͳ 69,065 69,065 Unassigned 169,659 Ͳ 169,659
Totalfundbalance 178,611 69,065 247,676
Totalliabilitiesand fundbalance 1,785,692 $ 69,065 $ 1,854,757 $
ASSETS
LIABILITIESANDFUNDBALANCE
Seeaccompanyingnotestofinancialstatements
Ͳ3Ͳ
THENEWSTANDARDACADEMY RECONCILIATIONOFTOTALGOVERNMENTALFUNDBALANCETONETPOSITION OFGOVERNMENTALACTIVITIES JUNE30,2015 SeeIndependentAuditor’sReport Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionaredifferentbecause:
TotalGovernmentalFundBalances 247,676 $
Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand, therefore,arenotreportedinthefunds.Thecostoftheassetsis$619,910 andtheaccumulateddepreciationis$323,784. 296,126
LongͲtermliabilitiesarenotdueandpayableinthecurrentperiodand, therefore,arenotreportedinthefunds. (146,939)
NetPositionofGovernmentalActivities 396,863 $
Seeaccompanyingnotestofinancialstatements
Ͳ4Ͳ
THENEWSTANDARDACADEMY STATEMENTOFREVENUES,EXPENDITURES ANDCHANGESINFUNDBALANCE–ALLGOVERNMENTALFUNDS FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport NonͲMajor Special General Revenue Total
Revenues Localsources 8,093 $ Ͳ $ 8,093 $ Statesources 5,031,626 9,114 5,040,740 Federalsources 397,693 445,269 842,962 Interdistrictsources 32,172 Ͳ 32,172 Ͳ Totalgovernmentalfundrevenues 5,469,584 454,383 5,923,967
Expenditures Instruction Basicprograms 1,767,137 Ͳ 1,767,137 Addedneeds 591,672 Ͳ 591,672 Supportservices Pupilsupportservices 5,856 Ͳ 5,856 Instructionalstaffsupportservices 17,089 Ͳ 17,089 Generaladministration 664,812 Ͳ 664,812 Schooladministration 390,861 Ͳ 390,861 Businesssupportservices 11,725 Ͳ 11,725 Operationsandmaintenance 1,364,213 Ͳ 1,364,213 Pupiltransportationservices 320,000 Ͳ 320,000 Centralsupportservices 6,441 Ͳ 6,441 Athleticactivities 9,541 Ͳ 9,541 Foodservices Ͳ 385,318 385,318 Communityservices Ͳ Ͳ Ͳ Capitaloutlay 41,629 Ͳ 41,629 Debtprincipalandinterest 127,584 Ͳ 127,584
Totalgovernmentalfundexpenditures 5,318,560 385,318 5,703,878
Excess(deficiency)ofrevenuesover expenditures 151,024 69,065 220,089
FundbalanceͲJuly1,2014 27,587 Ͳ 27,587
FundbalanceͲJune30,2015 178,611 $ 69,065 $ 247,676 $
Seeaccompanyingnotestofinancialstatements
Ͳ5Ͳ
THENEWSTANDARDACADEMY RECONCILIATIONOFTHESTATEMENTOFREVENUES,EXPENDITURESANDCHANGESIN FUNDBALANCEOFGOVERNMENTALFUNDSTOTHESTATEMENTOFACTIVITIES FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport Amountsreportedforgovernmentalactivitiesinthestatementofactivitiesaredifferentbecause:
NetChangeinFundBalancesͲTotalGovernmentalFunds 220,089 $
Governmentalfundsreportcapitaloutlaysasexpenditures.However, inthestatementofactivities,assetsarecapitalizedandthecostis allocatedovertheirestimatedusefullivesandreportedasdepreciation andamortizationexpense.Thisistheamountbywhichcapitaloutlays exceededdepreciationandamortizationinthecurrentperiod:
Capitaloutlay 41,629 $ Depreciationandamortizationexpense (119,280) (77,651)
Thegovernmentalfundsreportloanproceedsasanotherfinancing source,whilerepaymentofloanprincipalisreportedasan expenditure.Interestisrecognizedasanexpenditureinthe governmentalfundswhenitisdue.Theneteffectofthesedifferences inthetreatmentofgeneralloanobligationsisasfollows:
Repaymentofloanprincipal 102,168
ChangeinNetPositionofGovernmentalActivities 244,606 $
Seeaccompanyingnotestofinancialstatements
Ͳ6Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTS FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES TheaccountingpoliciesofTheNewStandardAcademy(the“Academy”)conformtogenerallyacceptedaccounting principlesapplicabletopublicschoolacademies.Thefollowingisasummaryofthesignificantaccountingpolicies: ReportingEntity TheNewStandardAcademywasformedasapublicschoolacademypursuanttotheMichiganSchoolCodeof1976,as amendedbyActNo.362ofthePublicActsof1993andActNo.416ofthePublicActsof1994.TheAcademyfiled articlesofincorporationasanonprofitcorporationpursuanttotheprovisionsoftheMichiganNonprofitCorporation Actof1982,asamended,andbeganoperationinMay2012. InJuly2012,theAcademyenteredintoacontractwiththeSaginawValleyStateUniversityBoardofControltochartera publicschoolacademythroughJune30,2016.ThecontractrequirestheAcademytoactexclusivelyasagovernmental agencyandnotundertakeanyactioninconsistentwithitsstatusasanentityauthorizedtoreceivestateschoolaidfunds pursuanttotheStateconstitution.TheUniversity’sBoardofControlisthefiscalagentfortheAcademyandis responsibleforoverseeingtheAcademy’scompliancewiththecontractandallapplicablelaws.TheAcademypaysthe SaginawValleyStateUniversityBoardofControlthreepercentofstateaidasadministrativefees.Totaladministrative feespaidfortheyearendedJune30,2015wereapproximately$131,680. InJuly2012,theAcademyenteredintoanagreementwithTheRomineGroup,Inc.throughJune30,2016.Underthe terms of this agreement, The Romine Group, Inc. provides a variety of services including financial management, educationalprogramsandconsulting,aswellasteachertraining.TheAcademyisobligatedtopayTheRomineGroup, Inc.tenpercentofitsstateschoolaidrevenueandallothergovernmentalrevenuesources.Totalcompensationinno eventshallbelessthan$250,000andnomorethan$500,000inanyfiscalyear.Thetotalpaidfortheseservices amountedtoapproximately$509,800fortheyearendedJune30,2015. The accompanying financial statements have been prepared in accordance with criteria established by the GovernmentalAccountingStandardsBoardfordeterminingthevariousgovernmentalorganizationstobeincludedin thereportingentity.Thesecriteriaincludesignificantoperationalorfinancialrelationshipswiththepublicschool Academy.Basedonapplicationofcriteria,theAcademydoesnotcontaincomponentunits. FundFinancialStatements FundfinancialstatementsreportdetailedinformationabouttheAcademy.Thefocusofgovernmentalfundfinancial statementsisonmajorfundsratherthanreportingfundsbytype.Eachmajorfundispresentedinaseparatecolumn. NonͲmajorfundsareaggregatedandpresentedinasinglecolumn. Ͳ7Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESͲContinued BasisofPresentation–FundAccounting TheaccountsoftheAcademyareorganizedonthebasisoffunds.Theoperationsofafundareaccountedforwitha separatesetofselfͲbalancingaccountsthatcompriseitsassets,liabilities,fundbalance,revenueandexpenditures. Governmentresourcesareallocatedtoandaccountedforinindividualfundsbasedonthepurposesforwhichtheyare tobespentandthemeansbywhichspendingactivitiesarecontrolled.Thevariousfundsaregrouped,inthecombined financialstatementsinthisreport,intogenericfundtypesintwobroadfundcategories. GovernmentalFunds Agovernmentalfundisafundthroughwhichmostacademyfunctionstypicallyarefinanced.Theacquisition,useand balancesoftheAcademy’sexpendablefinancialresourcesandtherelatedcurrentliabilitiesareaccountedforthrougha governmentalfund. GeneralFundͲThegeneralfundisusedtorecordthegeneraloperationsoftheAcademypertainingtoeducationand thoseoperationsnotprovidedforinotherfunds.Includedarealltransactionsrelatedtotheapprovedcurrentoperating budget. SpecialRevenueFundͲThespecialrevenuefundisusedtoaccountforthefoodserviceprogramoperations.The specialrevenuefundisasubsidiaryoperationandisanobligationofthegeneralfund.Thereforeanyshortfallinthe specialrevenuefundwillbecoveredbyanoperatingtransferfromthegeneralfund.Thespecialrevenuefunddoesnot maintainitsownassetsandliabilities;accordingly,nobalancesheetispresentedforthisfund. DebtServiceFundͲThedebtservicefund,whichtheAcademydoesnotcurrentlymaintain,isusedtorecordcertain revenueandthepaymentofinterest,principalandotherexpendituresonlongͲtermdebt. CapitalProjectsFundͲThecapitalprojectsfund,whichtheAcademydoesnotcurrentlymaintain,accountsforfinancial resourcestobeusedfortheacquisition,construction,orimprovementofcapitalfacilities. FiduciaryFundͲThefiduciaryfund,whichtheAcademydoesnotcurrentlymaintain,isusedtoaccountforassetsheld bytheAcademyinatrusteecapacityorasanagent.Theagencyfundiscustodialinnatureanddoesnotinvolvethe measurementofresultsofoperations. Activity(Agency)FundͲTheAcademydoesnotpresentlymaintainanactivityfund,whichwouldbeusedtorecordthe transactionsofastudentgroupforschoolandschoolͲrelatedpurposes.Thefundwouldbesegregatedandheldintrust forthestudents. Ͳ8Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESͲContinued Governmentalandagencyfundsutilizethemodifiedaccrualbasisofaccounting.Modificationsinsuchmethodfromthe accrualbasisareasfollows: a. Revenuethatisbothmeasurableandavailableforusetofinanceoperationsisrecordedasrevenuewhen earned.Revenuesareconsideredtobeavailablewhentheyarecollectiblewithinthecurrentperiodorsoon enoughthereaftertopayliabilitiesofthecurrentperiod.Forthispurpose,theAcademyconsidersrevenuesto beavailableiftheyarecollectedwithinsixtydaysoftheendofthecurrentfiscalperiod. b. Paymentsforinventoriabletypesofsupplies,whicharenotsignificantatyearend,arerecordedasexpenditures atthetimeofpurchase. c. PrincipalandinterestofgenerallongͲtermdebtarenotrecordedasexpendituresuntiltheirduedates. d. TheStateofMichiganutilizesafoundationallowancefundingapproach,whichprovidesforspecificannual amountofrevenueperstudentbasedonastateͲwideformula.Thefoundationallowanceisfundedfroma combinationofstateandlocalsources.RevenuefromstatesourcesisprimarilygovernedbytheSchoolAidAct andtheSchoolCodeofMichigan.ThestateportionofthefoundationisprovidedfromtheState’sSchoolAid Fundandisrecognizedasrevenueinaccordancewithstatelaw.AmajorportionoftheAcademy’srevenueis derivedfromthisstateaid.Assuch,theAcademyisconsideredtobeeconomicallydependentonthisaid.The Academy’sexistenceisdependentuponqualificationforsuchaid. GovernmentͲWideFinancialStatements ThegovernmentͲwidefinancialstatements(i.e.thestatementofNetPositionandtheStatementofActivities)report informationonallofthenonͲfiduciaryactivitiesoftheprimarygovernment.ThegovernmentͲwidefinancialstatements arepreparedusingtheeconomicresourcesmeasurementfocusandtheaccrualbasisofaccounting.Thisapproach differsfromthemannerinwhichgovernmentalfundfinancialstatementsareprepared.Therefore,governmentalfund financialstatementsincludereconciliationswithbriefexplanationstobetteridentifytherelationshipsbetweenthe governmentͲwidestatementsandthestatementsforgovernmentalfunds. ThegovernmentͲwideStatementofActivitiespresentsacomparisonbetweenexpensesandprogramrevenuesforeach segmentofthebusinessͲtypeactivitiesoftheAcademyandforeachgovernmentalprogram.Directexpensesarethose thatarespecificallyassociatedwithaservice,programordepartmentandarethereforeclearlyidentifiabletoa particularfunction.TheAcademydoesnotallocateindirectexpensestoprograms.Programrevenuesincludecharges paidbytherecipientsofthegoodsorservicesofferedbytheprogramsandgrantsandcontributionsthatarerestricted tomeetingtheoperationalorcapitalrequirementsofaparticularprogram.Revenuesnotclassifiedasprogram revenuesarepresentedasgeneralrevenues.Thecomparisonofprogramrevenuesandexpensesidentifiestheextent towhicheachprogramorfunctionisselffinancingordrawsfromthegeneralrevenuesoftheAcademy.Whenboth restrictedandunrestrictedresourcesareavailableforuse,itistheAcademy’spolicytouserestrictedresourcesfirst. Ͳ9Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESͲContinued Netpositionshouldbereportedasrestrictedwhenconstraintsplacedonnetposition’suseareeitherexternally imposedbycreditors,grantors,contributors,orlawsorregulationsofothergovernmentsorimposedbylawthrough constitutionalprovisionsorenablinglegislation.TheAcademyfirstutilizesrestrictedresourcestofinancequalifying activities. Separatefinancialstatementsareprovidedforgovernmentalfundsandfiduciaryfunds,eventhoughthelatterare excludedfromthegovernmentͲwidefinancialstatements. CashandCashEquivalents The Academy's cash and cash equivalents are considered to be cash on hand, demand deposits and shortͲterm investmentswithmaturitiesofthreemonthsorlessfromthedateofacquisition.TheAcademyreportsitsinvestments inaccordancewithGASBStatementNo.31,AccountingandFinancialReportingforCertainInvestmentsandforExternal Investment Pools and GASB No. 40, Deposit and Investment Risk Disclosures.Under these standards, certain investmentsarevaluedatfairvalueasdeterminedbyquotedmarketpricesorbyestimatedfairvalueswhenquoted marketpricesarenotavailable.Thestandardsalsoprovidethatcertaininvestmentsarevaluedatcost(oramortized cost)whentheyareofashortͲtermduration,therateofreturnisfixed,andtheAcademyintendstoholdthe investmentuntilmaturity.TheAcademyheldnoinvestmentsduringtheyear.StatestatutesauthorizetheAcademyto investinbondsandotherdirectandcertainindirectobligationsoftheU.S.Treasury;certificatesofdeposit,saving accounts,depositaccounts,andordepositoryreceiptsofabank,savingsandloanassociation,orcreditunion,whichisa memberoftheFederalDepositInsuranceCorporation,FederalSavingsandLoanCorporationorNationalCreditUnion Administration,respectively;incommercialpaperratedatthetimeofpurchasewithinthethreehighestclassifications establishedbynotlessthantwostandardratingservicesandwhichmaturesnotmorethan270daysafterthedateof purchase.TheAcademyisalsoauthorizedtoinvestinU.S.GovernmentorFederalagencyobligationrepurchase agreements,bankers'acceptancesofU.S.banks,andmutualfundscomposedofinvestmentsasoutlinedabove. Receivables ReceivablesatJune30,2015consistprimarilyofstateschoolaidduefromtheStateofMichiganandthefederal government.AllreceivablesareexpectedtobefullycollectedinJulyandAugustof2015andareconsideredcurrentfor thepurposesofthesefinancialstatements. PrepaidAssets PaymentsmadetovendorsforservicesthatwillbenefitperiodsbeyondJune30,2015,arerecordedasprepaiditems usingtheconsumptionmethod.Acurrentassetfortheprepaidamountisrecordedatthetimeofthepurchaseandan expenditureisreportedintheyearinwhichservicesareconsumed. Ͳ10Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESͲContinued CapitalAssetsandDepreciation Allcapitalassetsarecapitalizedatcost(orestimatedhistoricalcost)andupdatedforadditionsorretirementsduringthe year.TheAcademyfollowsthepolicyofnotcapitalizingassetswithausefullifeoflessthanoneyear.TheAcademy doesnotpossessanyinfrastructureassets. Allreportedcapitalassets,withtheexceptionofland,aredepreciated.Improvementsaredepreciatedoverthe remainingusefullivesoftherelatedcapitalassets.DepreciationiscomputedusingthestraightͲlinemethodoverthe followingusefullives: Buildingandimprovements 10–50years Furnitureandequipment 5–15years Computersandsoftware 3–10years AccruedLiabilitiesandLongͲTermObligations Allpayables,accruedliabilitiesandlongͲtermobligationsarereportedinthegovernmentͲwidefinancialstatements.In general,payablesandaccruedliabilitiesthatwillbepaidfromgovernmentalfundsarereportedonthegovernmental fundfinancialstatementsregardlessofwhethertheywillbeliquidatedwithcurrentresources.However,thenonͲ currentportionofcapitalleasesthatwillbepaidfromgovernmentalfundsarereportedasaliabilityinthefundfinancial statementsonlytotheextentthattheywillbepaidwithcurrent,expendable,availablefinancialresources.Ingeneral, paymentsmadewithinsixtydaysafteryearͲendareconsideredtohavebeenmadewithcurrentavailablefinancial resources.OtherlongͲtermobligationsthatwillbepaidfromgovernmentalfundsarenotrecognizedasaliabilityinthe fundfinancialstatementsuntildue. NetPosition Netpositionrepresentsthedifferencebetweenthesumofassetsanddeferredoutflowsandthesumofliabilitiesand deferredinflows.Netpositionisreportedasrestrictedwhentherearelimitationsimposedonitsuseeitherthroughthe enablinglegislationadoptedbytheAcademyorthroughexternalrestrictionsimposedbycreditors,grantorsorlawsof regulationsofothergovernments. FundEquity TheAcademyhasadoptedGASB54aspartofitsfiscalyearreporting.TheintentionoftheGASBistoprovideamore structuredclassificationoffundbalanceandtoimprovetheusefulnessoffundbalancereportingtotheusersofthe Academy’sfinancialstatements.Thereportingstandardestablishesahierarchyforfundbalanceclassificationsandthe constraintsimposedonthoseresources. GASB54providesfortwomajortypesoffundbalances,whicharenonspendableandspendable.Nonspendablefund balancesarebalancesthatcannotbespentbecausetheyarenotexpectedtobeconvertedtocashortheyarelegallyor contractuallyrequiredtoremainintact.Thiscategorytypicallyincludesprepaiditemsandinventories. Ͳ11Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESͲContinued Inadditiontononspendablefundbalance,GASB54hasprovidedahierarchyofspendablefundbalances,basedona hierarchyofspendingconstraints. a. Restrictedfundbalance – amounts constrained to specific purposes by their providers (such as grantors, bondholders,andhigherlevelsofgovernment),throughconstitutionalprovisions,orbyenablinglegislation. b. Committedfundbalance–amountsconstrainedtospecificpurposesbytheBoard;tobereportedascommitted, amountscannotbe usedforanyotherpurpose unlesstheBoardtakesaction toremoveorchangethe constraint. c. Assignedfundbalance–amountstheBoardintendstouseforaspecificpurpose;intentcanbeexpressedbythe BoardorbyanofficialorcommitteetowhichtheBoarddelegatestheauthority. d. Unassignedfundbalance–amountsthatareavailableforanypurpose;theseamountsarereportedonlyinthe generalfund. TheAcademyfollowsthepolicythatrestricted,committed,orassignedamountswillbeconsideredtohavebeenspent whenanexpenditureisincurredforpurposesforwhichbothunassignedandrestricted,committed,orassignedfund balancesareavailable. Estimates ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates ofAmericarequiresmanagementtomakeestimatesandassumptionsthataffecttheamountsreportedinthefinancial statementsandaccompanyingnotes.Actualresultsmaydifferfromthoseestimates. NOTE2ͲSTEWARDSHIP,COMPLIANCEANDACCOUNTABILITY AnnualbudgetsareadoptedonaconsistentbasiswithaccountingprinciplesgenerallyacceptedintheUnitedStatesof Americaandstatelawforthegeneralfund.Allannualappropriationslapseatfiscalyearendandencumbrancesarenot formallyrecorded. Thebudgetdocumentpresentsinformationbyfundandfunction.Thelegallevelofbudgetarycontroladoptedbythe governingbodyisthefunctionlevel.StatelawrequirestheAcademytohaveitsbudgetinplacebyJuly1.Expenditures inexcessofamountsbudgetedisaviolationofMichiganLaw.TheAcademyisrequiredbylawtoadoptageneralfund budget.DuringtheyearendedJune30,2015thebudgetwasamendedinalegallypermissiblemanner.Duringtheyear endedJune30,2015theAcademyincurredexpendituresincertainfunctionalareasthatwereinsignificantlyinexcessof theamountsappropriated,asdetailedonpage18ofthesefinancialstatements. Ͳ12Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport NOTE3ͲDEPOSITSANDINVESTMENTS InterestRateRisk Inaccordancewithitsinvestmentpolicy,theAcademywillminimizeinterestraterisk,whichistheriskthatthemarket valueofsecuritiesintheportfoliowillfallduetochangesinmarketinterestrates,by;structuringtheinvestment portfoliosothatsecuritiesmaturetomeetcashrequirementsforongoingoperations,therebyavoidingtheneedtosell securitiesintheopenmarket;and,investingoperatingfundsprimarilyinshorterͲtermsecurities,liquidassetfunds, moneymarketmutualfunds,orsimilarinvestmentpoolsandlimitingtheaveragematurityinaccordancewiththe Academy'scashrequirements. CreditRisk Statelawlimitsinvestmentsincommercialpaperandcorporatebondstoaprimeorbetterratingissuedbynationally recognizedstatisticalratingorganizations(NRSROs).AsofJune30,2015,theAcademyheldnoinvestments. ConcentrationofCreditRisk TheAcademywillminimizeconcentrationofcreditrisk,whichistheriskoflossattributedtothemagnitudeofthe Academy'sinvestmentinasingleissuer,bydiversifyingtheinvestmentportfoliosothattheimpactofpotentiallosses fromanyonetypeofsecurityorissuerwillbeminimized. CustodialCreditRiskͲDeposits Inthecaseofdeposits,thisistheriskthatintheeventofabankfailure,theAcademy'sdepositsmaynotbereturnedto it.AsofJune30,2015,$118,501oftheAcademy'scashwasexposedtocreditriskasitwasnotcoveredbyfederal depositinsurance.AllcashbalanceswereuncollateralizedasofJune30,2015. CustodialCreditRiskͲInvestments Foraninvestment,thisistheriskthat,intheeventofthefailureofthecounterparty,theAcademywillnotbeableto recoverthevalueofitsinvestmentsorcollateralsecuritiesthatareinthepossessionofanoutsideparty. TheAcademywillminimizecustodialcreditrisk,whichistheriskoflossduetothefailureofthesecurityissueror backer,by;limitinginvestmentstothetypesofsecuritiesallowedbylaw;andpreͲqualifyingthefinancialinstitutions, broker/dealers,intermediariesandadvisorswithwhichtheAcademywilldobusiness. ForeignCurrencyRisk TheAcademyisnotauthorizedtoinvestininvestmentswhichhavethistypeofrisk. Ͳ13Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE4–DUEFROMOTHERGOVERNMENTALUNITS Amountsduefromothergovernmentalunitsconsistofthefollowing: Localsources 16,102 $ Statesources 1,030,330 Federalsources 434,311
Total 1,480,743 $
NOTE5ͲCAPITALASSETS CapitalassetactivityoftheAcademy'sgovernmentalactivitieswasasfollows: Balance Balance July1,2014 Additions Disposals June30,2015
Capitalassetssubjecttodepreciation Equipment 132,259 $ Ͳ $ Ͳ $ 132,259 $ Furniture 170,476 23,164 Ͳ 193,640 Technologyequipment 252,557 Ͳ Ͳ 252,557 Other 22,989 18,465 Ͳ 41,454
SubͲtotal 578,281 41,629 Ͳ 619,910
Accumulateddepreciation Equipment 60,619 33,065 Ͳ 93,684 Furniture 42,328 27,627 Ͳ 69,955 Technologyequipment 99,009 56,440 Ͳ 155,449 Other 2,548 2,148 Ͳ 4,696
SubͲtotal 204,504 119,280 Ͳ 323,784
Totalnetcapitalassets 373,777 $ (77,651) $ Ͳ $ 296,126 $
DepreciationandamortizationexpensewasnotchargedtoactivitiesastheAcademyconsidersitsassetstoimpact multipleactivitiesandallocationisnotpractical. Ͳ14Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
NOTE6–NOTESPAYABLE LoanInformation
Interest Maturity Rate Date
SAAN13/14 2.80% August,2014
SSAN14/15 1.84% August,2015
LoanActivity
Balance Retirements Balance July1,2014 Additions andPayments June30,2015
SAAN13/14 143,958 $ Ͳ $ 143,958 $ Ͳ $ SAAN14/15 Ͳ 900,000 718,830 181,170
143,958$ 900,000 $ 862,788 $ 181,170 $
Other
Paidinfull IssuedtoprovideAcademywithoperatingfundsand securedbyfuturestateschoolaid.
NOTE7–ACCRUEDEXPENSES Accruedexpensesmaybesummarizedasfollows: PurchasedservicesͲpayrollandbenefits 227,794 $ Managementfee 121,573 Universityoversightfee 23,954
Totalaccruedexpenses 373,321 $
Ͳ15Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport NOTE8ͲLONGͲTERMOBLIGATIONSPAYABLE ThefollowingisasummaryoflongͲtermobligationsfortheAcademyduringtheyearendedJune30,2015: LoanInformation Interest Maturity Rate Date Equipmentloan 12.5% October,2017
LoanActivity
Balance Retirements Balance DueWithin July1,2014 Additions andPayments June30,2015 OneYear Equipmentloan 249,107 $ Ͳ $ 102,168 $ 146,939 $ 115,696 $
FollowingarematuritiesoflongͲtermobligationsforprincipalandinterestforthenexttwoyearsandintotal:
Principal Interest 2016 115,696 $ 11,888 $ 2017 31,243 652
Other Securedbyequipment
NOTE9–OPERATINGLEASES LeaseInformation
Maturity Approximate Date Payment
Facilitieslease June,2016 $365,000yearly
Theapproximateamountofleaseobligationscomingdueduringthenextyearisasfollows:
2016 365,000 $
Other Baserentwillbethegreaterof$365,000or 14%ofallfundstheAcademyisentitledto receivepursuanttotheStateSchoolAidAct of1979,asamended.
TheAcademyincurredleaseexpenseofapproximately$620,350duringtheyearendedJune30,2015. Ͳ16Ͳ
THENEWSTANDARDACADEMY NOTESTOFINANCIALSTATEMENTSͲContinued FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport NOTE10ͲRETIREMENTPLAN AllleasedemployeesoftheAcademyareeligibletoparticipateinaretirementplanestablishedbytheAcademy's managementcompany(theemployer)whichqualifiesundertheprovisionsofSection401(k)oftheInternalRevenue Code.TheAcademy,underthisplan,willreimbursetheemployer’scontributionof4%ofsalariesregardlessofthe amountthe employee contributes.TheAcademywilladditionallyreimbursetheemployer’smatchupto4% of employeecontributedfunds.Eligibleemployeesmaycontributeupto15%oftheirsalariesunderthetermsofthisplan. NOTE11ͲRISKMANAGEMENT TheAcademyisexposedtovariousrisksoflossrelatedtopropertyloss,torts,errorsandomissionsandemployee injuries(worker’scompensation),aswellasmedicalbenefitsprovidedtoemployees.TheAcademyhaspurchased commercialinsuranceforallclaims.Settledclaimsrelatingtothecommercialinsurancehavenotexceededtheamount ofinsurancecoveragesinceitsinception. Ͳ17Ͳ
SUPPLEMENTALINFORMATION
THENEWSTANDARDACADEMY REQUIREDSUPPLEMENTALINFORMATION BUDGETARYCOMPARISONSCHEDULE–GENERALFUND FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport Original Final Budget Budget Actual Variance
Revenues Localsources 354,700 $ 6,800 $ 8,093 $ 1,293 $ Statesources 4,497,000 5,084,821 5,031,626 (53,195) Federalsources 378,000 463,248 397,693 (65,555) Interdistrictsources 27,000 27,000 32,172 5,172
Totalgeneralfundrevenues 5,256,700 5,581,869 5,469,584 (112,285)
Expenditures Instruction Basicprograms 1,903,505 1,865,922 1,767,137 (98,785) Addedneeds 684,987 674,651 591,672 (82,979) Supportservices Pupilsupportservices 5,808 5,808 5,856 48 Instructionalstaffsupportservices 55,235 20,500 17,089 (3,411) Generaladministration 583,710 664,906 664,812 (94) Schooladministration 343,471 395,487 390,861 (4,626) Businesssupportservices 679,584 12,392 11,725 (667) Operationsandmaintenance 608,500 1,426,768 1,364,213 (62,555) Pupiltransportationservices 320,000 320,000 320,000 Ͳ Centralsupportservices Ͳ 6,000 6,441 441 Athleticactivities Ͳ 16,212 9,541 (6,671) Foodservices Ͳ Ͳ Ͳ Ͳ Communityservices 10,000 Ͳ Ͳ Ͳ Capitaloutlay Ͳ Ͳ 41,629 41,629 Debtprincipalandinterest 20,000 127,584 127,584 Ͳ
Totalgeneralfundexpenditures 5,214,800 5,536,230 5,318,560 (217,670)
Excess(deficiency)ofrevenues overexpenditures 41,900 45,639 151,024 105,385
FundbalanceͲJuly1,2014 27,587 27,587 27,587 Ͳ
FundbalanceͲJune30,2015 69,487 $ 73,226 $ 178,611 $ 105,385 $
Ͳ18Ͳ
THENEWSTANDARDACADEMY SCHEDULEOFREVENUES–GENERALFUND FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
LocalSources Otherlocalrevenues 8,093 $
StateSources Atrisk 274,945 Greatstartreadinessprogram 259,471 Specialeducation 40,726 Stateaid 4,456,484
Totalstatesources 5,031,626
FederalSources IDEA 44,789 TitleI 298,359 TitleIIA 54,545
Totalfederalsources 397,693
InterdistrictSources 32,172
Totalgeneralfundrevenues 5,469,584 $
Ͳ19Ͳ
THENEWSTANDARDACADEMY SCHEDULEOFEXPENDITURES–GENERALFUND FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
BasicPrograms Purchasedservices 1,691,678 $ Suppliesandmaterials 66,308 Otherexpenditures 9,151
Totalbasicprograms 1,767,137
AddedNeeds Purchasedservices 539,264 Suppliesandmaterials 52,408
Totaladdedneeds 591,672
PupilSupportServices Guidanceservices 5,856
InstructionalStaffSupportServices Purchasedservices 10,337 Suppliesandmaterials 6,752
Totalinstructionalstaffsupportservices 17,089
GeneralAdministration Purchasedservices 22,777 Managementfees 509,811 Universityoversight 131,684 Otherexpenditures 540
Totalgeneraladministration 664,812
SchoolAdministration Purchasedservices 382,013 Suppliesandmaterials 6,234 Otherexpenditures 2,614
Totalschooladministration 390,861
Ͳ20Ͳ
THENEWSTANDARDACADEMY SCHEDULEOFEXPENDITURES–GENERALFUNDͲCONTINUED FORTHEYEARENDEDJUNE30,2015 SeeIndependentAuditor’sReport
BusinessSupportServices Otherexpenditures 11,725
OperationsandMaintenance Purchasedservices 340,365 Repairsandmaintenance 195,243 Rentals 620,352 Suppliesandmaterials 208,253
Totaloperationsandmaintenance 1,364,213
PupilTransportationServices Otherexpenditures 320,000
CentralSupportServices Otherexpenditures 6,441
AthleticActivities Purchasedservices 4,737 Otherexpenditures 4,804
Totalathleticactivities 9,541
CapitalOutlay 41,629
DebtPrincipalandInterest 127,584
Totalgeneralfundexpenditures 5,318,560 $
Ͳ21Ͳ
APPENDIX FederalAwards SupplementalInformation
345 Diversion Street Ɣ Suite 400 44725 Grand River Avenue Ɣ Suite 204 2505 NW Boca Raton Blvd. Ɣ Suite 202 Rochester, MI 48307 Novi, Michigan 48375 Boca Raton, Florida 33431-6652 Phone: 248.659.5300 Phone: 248.659.5300 Phone: 561.241.1040 Fax: 248.659.5305 Fax: 248.659.5305 Fax: 561.368.4641 www.croskeylanni.com
David M. Croskey, CPA Thomas B. Lanni, CPA Carolyn A. Jones, CPA, CFP® MST Clifton F. Powell Jr., CPA, CFP®, PFS Roger J. DeJong, CPA Patrick M. Sweeney, CPA Leonard A. Geronemus, CPA, PFS
INDEPENDENTAUDITOR’SREPORTONINTERNALCONTROLOVERFINANCIALREPORTINGANDON COMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMED INACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS TotheBoardofDirectors ofTheNewStandardAcademy Wehaveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedintheUnitedStatesofAmericaandthe standardsapplicabletofinancialauditscontainedinGovernmentAuditingStandardsissuedbytheComptrollerGeneral oftheUnitedStates,thefinancialstatementsofthegovernmentalactivities,eachmajorfund,andtheaggregate remainingfundinformationofTheNewStandardAcademy,asofandfortheyearendedJune30,2015,andtherelated notestothefinancialstatements,whichcollectivelycompriseTheNewStandardAcademy’sbasicfinancialstatements, andhaveissuedourreportthereondatedOctober20,2015. InternalControlOverFinancialReporting Inplanningandperformingourauditofthefinancialstatements,weconsideredTheNewStandardAcademy’sinternal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstancesforthepurposeofexpressingouropinionsonthefinancialstatements,butnotforthepurposeof expressinganopinionontheeffectivenessofTheNewStandardAcademy’sinternalcontrol.Accordingly,wedonot expressanopinionontheeffectivenessofTheNewStandardAcademy’sinternalcontrol. Adeficiencyininternalcontrolexistswhenthedesignoroperationofacontroldoesnotallowmanagementor employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatementsonatimelybasis.Amaterialweaknessisadeficiency,oracombinationofdeficiencies,ininternal control,suchthatthereisareasonablepossibilitythatamaterialmisstatementoftheentity’sfinancialstatementswill notbeprevented,ordetectedandcorrectedonatimelybasis.Asignificantdeficiencyisadeficiency,oracombination ofdeficiencies,ininternalcontrolthatislessseverethanamaterialweakness,yetimportantenoughtomeritattention bythosechargedwithgovernance. Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthissectionandwas notdesignedtoidentifyalldeficienciesininternalcontrolthatmightbematerialweaknessesor,significantdeficiencies. Giventheselimitations,duringourauditwedidnotidentifyanydeficienciesininternalcontrolthatweconsidertobe materialweaknesses.However,materialweaknessesmayexistthathavenotbeenidentified.
ComplianceandOtherMatters AspartofobtainingreasonableassuranceaboutwhetherTheNewStandardAcademy’sfinancialstatementsarefree frommaterialmisstatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts andgrantagreements,noncompliancewithwhichcouldhaveadirectandmaterialeffectonthedeterminationof financialstatementamounts.However,providinganopiniononcompliancewiththoseprovisionswasnotanobjective ofouraudit,andaccordingly,wedonotexpresssuchanopinion.Theresultsofourtestsdisclosednoinstancesof noncomplianceorothermattersthatarerequiredtobereportedunderGovernmentAuditingStandards. PurposeofthisReport Thepurposeofthisreportissolelytodescribethescopeofourtestingofinternalcontrolandcomplianceandthe resultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheentity’sinternalcontroloron compliance.ThisreportisanintegralpartofanauditperformedinaccordancewithGovernmentAuditingStandardsin consideringtheentity’sinternalcontrolandcompliance.Accordingly,thiscommunicationisnotsuitableforanyother purpose.
CroskeyLanni,PC October20,2015 Rochester,Michigan AͲ2
345 Diversion Street Ɣ Suite 400 44725 Grand River Avenue Ɣ Suite 204 2505 NW Boca Raton Blvd. Ɣ Suite 202 Rochester, MI 48307 Novi, Michigan 48375 Boca Raton, Florida 33431-6652 Phone: 248.659.5300 Phone: 248.659.5300 Phone: 561.241.1040 Fax: 248.659.5305 Fax: 248.659.5305 Fax: 561.368.4641 www.croskeylanni.com
David M. Croskey, CPA Thomas B. Lanni, CPA Carolyn A. Jones, CPA, CFP® MST Clifton F. Powell Jr., CPA, CFP®, PFS Roger J. DeJong, CPA Patrick M. Sweeney, CPA Leonard A. Geronemus, CPA, PFS
INDEPENDENTAUDITOR’SREPORTONCOMPLIANCEFOREACHMAJORPROGRAMANDON INTERNALCONTROLOVERCOMPLIANCEREQUIREDBYOMBCIRCULARAͲ133
TotheBoardofDirectors ofTheNewStandardAcademy ReportonComplianceforEachMajorFederalProgram WehaveauditedTheNewStandardAcademy’scompliancewiththetypesofcompliancerequirementsdescribedinthe OMBCircularAͲ133ComplianceSupplementthatcouldhaveadirectandmaterialeffectoneachofTheNewStandard Academy’smajorfederalprogramsfortheyearendedJune30,2015.TheNewStandardAcademy’smajorfederal programsareidentifiedinthesummaryofauditor’sresultssectionoftheaccompanyingscheduleoffindingsand questionedcosts. Management’sResponsibility Managementisresponsibleforcompliancewiththerequirementsoflaws,regulations,contracts,andgrantsapplicable toitsfederalprograms. Auditor’sResponsibility OurresponsibilityistoexpressanopiniononcomplianceforeachofTheNewStandardAcademy’smajorfederal programsbasedonourauditofthetypesofcompliancerequirementsreferredtoabove.Weconductedourauditof complianceinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica;thestandards applicabletofinancialauditscontainedinGovernmentAuditingStandards,issuedbytheComptrollerGeneralofthe UnitedStates,andOMBCircularAͲ133,AuditsofStates,LocalGovernments,andNonͲProfitOrganizations.Those standardsandOMBCircularAͲ133requirethatweplanandperformtheaudittoobtainreasonableassuranceabout whethernoncompliancewiththetypesofcompliancerequirementsreferredtoabovethatcouldhaveadirectand materialeffectonamajorfederalprogramoccurred.Anauditincludesexamining,onatestbasis,evidenceaboutThe NewStandardAcademy’scompliancewiththoserequirementsandperformingsuchotherproceduresasweconsidered necessaryinthecircumstances. Webelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforeachmajorfederalprogram. However,ourauditdoesnotprovidealegaldeterminationofTheNewStandardAcademy’scompliance. OpiniononEachMajorFederalProgram In our opinion, The New Standard Academy, complied, in all material respects, with the types of compliance requirementsreferredtoabovethatcouldhaveadirectandmaterialeffectoneachofitsmajorfederalprogramsfor theyearendedJune30,2015.
ReportonInternalControlOverCompliance ManagementofTheNewStandardAcademyisresponsibleforestablishingandmaintainingeffectiveinternalcontrol overcompliancewiththetypesofcompliancerequirementsreferredtoabove.Inplanningandperformingourauditof compliance, we considered The New Standard Academy’s internal control over compliance with the types of requirementsthatcouldhaveadirectandmaterialeffectoneachmajorfederalprogramtodeterminetheauditing proceduresthatareappropriateinthecircumstancesforthepurposeofexpressinganopiniononcomplianceforeach majorfederalprogramandtotestandreportoninternalcontrolovercomplianceinaccordancewithOMBCircularAͲ 133,butnotforthepurposeofexpressinganopinionontheeffectivenessofinternalcontrolovercompliance. Accordingly,wedonotexpressanopinionontheeffectivenessofTheNewStandardAcademy’sinternalcontrolover compliance. Adeficiencyininternalcontrolovercomplianceexistswhenthedesignoroperationofacontrolovercompliancedoes notallowmanagementoremployees,inthenormalcourseofperformingtheirassignedfunctions,topreventordetect andcorrect,noncompliancewithatypeofcompliancerequirementofafederalprogramonatimelybasis.Amaterial weaknessininternalcontrolovercomplianceisadeficiency,orcombinationofdeficiencies,ininternalcontrolover compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirementofafederalprogramwillnotbeprevented,ordetectedandcorrected,onatimelybasis.Asignificant deficiencyininternalcontrolovercomplianceisadeficiency,oracombinationofdeficiencies,ininternalcontrolover compliancewithatypeofcompliancerequirementofafederalprogramthatislessseverethanamaterialweaknessin internalcontrolovercompliance,yetimportantenoughtomeritattentionbythosechargedwithgovernance. Ourconsiderationofinternalcontrolovercompliancewasforthelimitedpurposedescribedinthefirstparagraphofthis sectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolovercompliancethatmightbematerial weaknessesorsignificantdeficiencies.Wedidnotidentifyanydeficienciesininternalcontrolovercompliancethatwe considertobematerialweaknesses.However,materialweaknessesmayexistthathavenotbeenidentified. Thepurposeofthisreportoninternalcontrolovercomplianceissolelytodescribethescopeofourtestingofinternal controlovercomplianceandtheresultsofthattestingbasedontherequirementsofOMBCircularAͲ133.Accordingly, thisreportisnotsuitableforanyotherpurpose. CroskeyLanni,PC October20,2015 Rochester,Michigan
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THENEWSTANDARDACADEMY SCHEDULEOFEXPENDITURESOFFEDERALAWARDS FORTHEYEARENDEDJUNE30,2015 AccruedFederalFunds/Accrued Approved(MemoOnly)(Deferred)AdjustmentsPayments(Deferred) CFDAAwardsPriorYearRevenueatandInͲkindRevenueat NumberAmountExpendituresJuly1,2014TransfersReceivedExpendituresJune30,2015
USDepartmentofAgriculture PassedthroughMichigan DepartmentofEducation:
ChildNutritionCluster SchoolBreakfastProgram10.553158,819 $Ͳ $16,140 $Ͳ $158,819 $157,154 $14,475 $ NationalSchoolLunchProgram10.555306,968Ͳ 45,826Ͳ 306,968 283,285 22,143 Entitlement14Ͳ1510.5554,830ͲͲͲ 4,830 4,830Ͳ
TotalUSDepartmentofAgriculture, PassedthroughMichigan DepartmentofEducation470,617Ͳ 61,966Ͳ 470,617 445,269 36,618
USDepartmentofEducation PassedthroughGenesseCountyISD
I.D.E.A.Cluster 13Ͳ14Flowthrough84.027Ͳ 54,447 54,447Ͳ 54,447ͲͲ 14Ͳ15Flowthrough84.02744,789ͲͲͲͲ 44,789 44,789
TotalUSDepartmentofEducation PassedthroughGenesseCountyISD44,789 54,447 54,447Ͳ 54,447 44,789 44,789
ProgramTitle/Project NumberSubrecipientName
Seeaccompanyingnotestoscheduleofexpendituresoffederalawards
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THENEWSTANDARDACADEMY SCHEDULEOFEXPENDITURESOFFEDERALAWARDSͲContinued FORTHEYEARENDEDJUNE30,2015
AccruedFederalFunds/Accrued Approved(MemoOnly)(Deferred)AdjustmentsPayments(Deferred) CFDAAwardsPriorYearRevenueatandInͲkindRevenueat NumberAmountExpendituresJuly1,2014TransfersReceivedExpendituresJune30,2015
USDepartmentofEducation PassedthroughtheMichigan DepartmentofEducation
TitleI84.010 14152013143,000 3,000 3,000 3,000 1415301314261,026 214,492 214,492Ͳ 214,492ͲͲ 1515301415363,951ͲͲͲͲ 298,359 298,359
TotalTitleICluster627,977 217,492 217,492Ͳ 217,492 298,359 298,359
CharterSchoolGrant84.282 1306101213109,913Ͳ (40,088)Ͳ (40,088)ͲͲ
TitleIIA84.367 140520131486,471 46,982 46,982Ͳ 46,982ͲͲ 150520141588,416ͲͲͲͲ 54,545 54,545
TotalUSDepartmentofEducation PassedthroughfromMichigan DepartmentofEducation912,777 264,474 224,386Ͳ 224,386 352,904 352,904
Totalfederalawards1,428,183 $318,921 $340,799 $Ͳ $749,450 $842,962 $434,311 $
ProgramTitle/Project NumberSubrecipientName
Seeaccompanyingnotestoscheduleofexpendituresoffederalawards
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THENEWSTANDARDACADEMY RECONCILIATIONOFBASICFINANCIALSTATEMENTSFEDERALREVENUE ANDRECEIVABLESWITHSCHEDULEOFEXPENDITURESOFFEDERALAWARDS FORTHEYEARENDEDJUNE30,2015 RevenuestoExpenditures RevenuefromfederalsourcesͲAsreportedonfinancialstatements (includesallfunds):
GeneralFund 397,693 $ SpecialRevenueFund 445,269
Federalexpendituresperthescheduleofexpendituresoffederalawards 842,962 $
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THENEWSTANDARDACADEMY NOTESTOSCHEDULEOFEXPENDITURESOFFEDERALAWARDS FORTHEYEARENDEDJUNE30,2015 NOTE1ͲSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES Theaccompanyingscheduleofexpendituresoffederalawards(the“Schedule”)includesthefederalgrantactivityofThe NewStandardAcademyunderprogramsofthefederalgovernmentfortheyearendedJune30,2015.Expenditures reportedontheSchedulearereportedonthesamebasisofaccountingasthebasicfinancialstatements,althoughthe basisfordeterminingwhenfederalawardsareexpendedispresentedinaccordancewithrequirementsofOMBCircular AͲ133,AuditsofStates,LocalGovernments,andNonͲProfitOrganizations.Inaddition,expendituresreportedonthe Schedule are recognized following the cost principles contained in OMB Circular AͲ87, wherein certain types of expendituresarenotallowableorarelimitedastoreimbursement.Therefore,someamountspresentedinthis Schedulemaydifferfromamountspresentedin,orusedinthepreparationof,thebasicfinancialstatements. BecausetheSchedulepresentsonlyaselectedportionoftheoperationsofTheNewStandardAcademy,itisnot intendedtoanddoesnotpresentthefinancialposition,changesinnetassets,orcashflows,ifapplicable,ofTheNew StandardAcademy.PassͲthroughentityidentifyingnumbersarepresentedwhereavailable. NOTE2ͲNONCASHASSISTANCE ThevalueofthenoncashassistancereceivedwasdeterminedinaccordancewiththeprovisionsofOMBCircularAͲ133. NOTE3ͲGRANTAUDITOR'SREPORT ManagementhasutilizedtheGrantAuditor'sreportinpreparingthescheduleofexpendituresoffederalawards.UnͲ reconcileddifferences,ifany,havebeendisclosedtotheauditor. AͲ8
THENEWSTANDARDACADEMY SCHEDULEOFFINDINGSANDQUESTIONEDCOSTS FORTHEYEARENDEDJUNE30,2015
SECTIONIͲSUMMARYOFTHEAUDITOR’SRESULTS FinancialStatements Typeofauditor’sreportissued:Unmodified Internalcontroloverfinancialreporting: x Materialweakness(es)identified? ___yes _x__no x Significantdeficiency(ies)identifiedthatarenot consideredtobeamaterialweakness(es)? ___yes _x__no Noncompliancematerialtofinancialstatementsnoted? ___yes _x__no FederalAwards Internalcontrolovermajorprograms: x Materialweakness(es)identified? ___yes _x__no x Significantdeficiency(ies)identifiedthatarenot consideredtobeamaterialweakness(es)? ___yes _x__no Typeofauditor’sreportissuedoncomplianceformajorprograms:Unmodified Anyauditfindingsdisclosedthatarerequiredtobereported inaccordancewithSection510(a)ofCircularAͲ133? ___yes _x__no Identificationofmajorprograms: CFDANumber(s) NameofFederalProgramorCluster #10.553 NationalSchoolBreakfastProgram 10.555 NationalSchoolLunchProgram&Commodities Dollarthresholdusedtodistinguishbetween TypeAandTypeBprograms: $300,000 AuditeequalifiedaslowͲriskauditee? ____yes _x__no SECTIONII–FINANCIALSTATEMENTFINDINGS None SECTIONIII–FEDERALAWARDFINDINGSANDQUESTIONEDCOSTS None AͲ9