Course En Ligne Geant Casino Montpellier
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Course En Ligne Geant Casino Montpellier
Academy of Flint Flint, Michigan Annual Financial Statements and Auditors’ Report June 30, 2011 Table of Contents Section Page 1 Members of the Board of Directors and Administration 1-1 2 Independent Auditors’ Report 2-1 3 Management’s Discussion and Analysis 3-1 4 Basic Financial Statements Academy-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Notes to Financial Statements 5 4-3 4-4 4-5 4-6 4-7 Required Supplemental Information Budgetary Comparison Schedule – General Fund 6 4-1 4-2 5-1 Other Supplemental Information General Fund Comparative Balance Sheet Schedule of Revenues Compared to Budget Schedule of Expenditures Compared to Budget 6-1 6-2 6-3 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 6 - 11 Academy of Flint Members of the Board of Directors and Administration June 30, 2011 Members of the Board of Directors Daniel Hall President Samuel Warren Vice President Yolanda Urquhart-Williams Treasurer/Secretary Administration Elnora Crutchfield Chief Administrative Officer April Jackson Chief Financial Officer 1-1 4468 Oak Bridge Drive Flint, MI 48532 Phone (810) 732-3000 / (800) 899-4742 Fax (810) 732-6118 Independent Auditors’ Report To the Board of Directors Academy of Flint Flint, Michigan We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Academy of Flint as of and for the year ended June 30, 2011, which collectively comprise the Academy’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of Academy of Flint’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Academy of Flint as of June 30, 2011, and the respective changes in financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1 to the financial statements, the Entity adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definition, during the year ended June 30, 2011. In accordance with Government Auditing Standards, we have also issued a report dated October 10, 2011, on our consideration of the Academy of Flint’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 Governmental Auditing Standards and should be considered in assessing the results of our audit. 2-1 Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information identified in the table of contents be presented to supplement the basic financial statements. Such 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. 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Academy of Flint's financial statements as a whole. The accompanying other supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and, other than the prior year information, was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. We also have previously audited, in accordance with auditing standards generally accepted in the United States, the Academy of Flint’s financial statements for the year ended June 30, 2010, which are not presented with the accompanying financial statements. In our report dated November 3, 2010, we expressed unqualified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information. That audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Academy of Flint‘s financial statements as a whole. The 2010 information in the comparative statements is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2010 financial statements. The information has been subjected to the auditing procedures applied in the audit of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 2010 information in the comparative statements is fairly stated in all material respects in relation to the financial statements from which they have been derived. Flint, Michigan October 10, 2011 2-2 MANAGEMENT’S DISCUSSION AND ANALYSIS Academy of Flint Management’s Discussion & Analysis June 30, 2011 Within this section of the Academy of Flint's annual financial report, the Academy’s management is providing a narrative discussion and analysis of the financial activities of the Academy for the fiscal year that has ended on June 30, 2011. This narrative discusses and analyzes the activity within the context of the accompanying financial statements and disclosures following this section. Overview of the Financial Statements Management’s Discussion and Analysis introduces the Academy’s basic financial statements. The basic financial statements include the following: 1) government-wide financial statements, 2) fund financial information, 3) notes to the financial statements. The Academy also includes in this report additional information to supplement the basic financial statements. Government-Wide Financial Statements The Government-Wide Financial Statements are designed to provide the reader a broad overview of the Academy’s finances. Although this is a government entity, the manner in which they are presented is similar to a private-sector business. The statement of net assets presents information on all of the Academy’s assets and liabilities, with the difference between the two reported as net assets. As the Academy continues to operate, increases and decreases in net assets will occur and may serve as a useful indicator of whether the financial position of the Academy is improving or deteriorating. The statement of activities demonstrates information on how the Academy’s net assets changed during the current fiscal year. The design of this statement is to show the financial reliance of the Academy’s distinct activities or functions on the revenues generated by the Academy. Both government-wide financial statements distinguish governmental activities of the Academy that are intended to recover all or a significant portion of their costs through contributions, user fees, and charges. The Academy’s financial reporting includes all the funds that the Academy is accountable for. Fund Financial Statements A fund is an accountable unit used to maintain control over resources segregated for specific activities or objectives. The Academy uses funds to ensure and demonstrate compliance with finance-related laws and regulation. 3-1 Academy of Flint Management’s Discussion & Analysis June 30, 2011 The Academy's fund financial statements provide detailed information about the most significant funds - not the Academy as a whole. Some funds are required to be established by state law and by bond covenants. However, the Academy establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using grants and other money. All of the Academy's services are reported in governmental funds. Governmental funds are reported in the financial statements and encompass essentially the same functions as governmental activities in the government-wide financial statements except with a different focus on the financial activity. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of these resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near-term. Since the focus of the government-wide financial statements includes a long-term view, a reconciliation of these fund balances has been completed to detail it’s relation to net assets. Notes to the Financial Statement The accompanying notes to the Financial Statements provide information essential to a full understanding of both the governmentwide and fund financial statements. Other information This report includes Statement of Net Assets. Along with the Assets, this statement includes all liabilities both current and noncurrent of the Academy. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Other supplementary information includes detail by fund for receivables, payables, transfers and payments within the reporting entity. Financial Analysis of the Academy as a Whole The Academy’s net assets at the end of the fiscal year 2011 were $ 1,821,704. This is a $ 391,315 increase over the 2010 fiscal year that ended at $ 1,430,389. 3-2 Academy of Flint Management’s Discussion & Analysis June 30, 2011 The following tables provide a summary of the Academy’s financial activities in the net assets: Summary of Net Assets Governmental Activities 2010 2011 Assets Current and other assets $ 1,857,140 $ 1,772,620 599,921 399,074 2,457,061 2,171,694 Liabilities - Current liabilities 635,357 741,305 Net Assets Invested in capital assets 599,921 399,074 1,221,783 1,031,315 $ 1,821,704 $ 1,430,389 Capital assets Total assets Unrestricted Total net assets 3-3 Academy of Flint Management’s Discussion & Analysis June 30, 2011 Summary of Changes in Net Assets Governmental Activities 2011 2010 Revenue Program revenue: Charges for services Operating grants Capital grants General revenue: State grants Other $ Total revenues Functions/Program Expenses Instruction Support services Community services Food services Total functions/program expenses Increase in Net Assets $ 3-4 41,479 1,237,771 14,105 $ 3,840 1,599,324 18,896 3,869,219 3,502 3,841,103 10,330 5,166,076 5,473,493 1,922,644 2,506,152 34,640 311,325 2,776,072 2,222,489 33,253 327,619 4,774,761 5,359,433 391,315 $ 114,060 Academy of Flint Management’s Discussion & Analysis June 30, 2011 Financial Analysis of the Academy’s Funds The Academy uses funds to help it control and manage money for particular purposes. Looking at funds helps the reader consider whether the Academy is being accountable for the resources the State and others provide to it and may provide more insight into the Academy's overall financial health. As the Academy completed this year, the governmental funds reported a combined fund balance of $ 1,221,783, which is an increase of $ 290,818 from last year. General Fund fund balance is available to fund costs related to allowable school operating purposes. Our Special Revenue Fund remain the same as prior years, in that it maintains a $ 0 fund balance. Excess of expenditures over revenues are funded through a fund balance transfer from the General Fund. General Fund Budgetary Highlights Over the course of the year, the Academy revises its budget as it attempts to deal with unexpected changes in revenues and expenditures. State law requires that the budget be amended to ensure that expenditures do not exceed appropriations. The final amendment for the budget was adopted just before year end. A schedule showing the Academy's original and final budget amounts compared with amounts actually paid and received is provided in the required supplemental information to these financial statements. 3-5 Academy of Flint Management’s Discussion & Analysis June 30, 2011 Capital Asset and Debt Administration As of June 30, 2011, the Academy had approximately $ 1,209,653 invested in capital assets, including construction in progress, building improvements, portable classrooms, and furniture and equipment. This amount represents a net decrease of $ 289,276. 2011 Construction in progress Building improvements Portable classrooms Furniture and equipment Total capital assets 2010 $ 18,695 277,848 279,330 633,780 $ 622,986 279,330 596,613 $ 1,209,653 $ 1,498,929 No debt was issued for the current year additions; the General Fund balance was sufficient to cover these additions. At the end of the current year, the Academy did not have any outstanding debt other than normal trade payables, which are recorded on an accrual basis. Economic Conditions and Future Activities Approximately 80 percent of the Academy's total General Fund revenue is from the State of Michigan. As a result, the Academy funding is heavily dependent on the State's ability to fund local school operations. Based on early enrollment data at the start of the 2011 school year, we anticipate that the fall student count will be in excess of the estimates used in creating the 2012 budget. Once the final student count and related per pupil funding is validated, state law requires the Academy to amend the budget if actual Academy resources are not sufficient to fund original appropriations. Since the Academy's revenue is heavily dependent on state funding and the health of the State's School Aid Fund, the actual revenue received depends on the State's ability to collect revenues to fund its appropriation to academies. The State periodically holds a revenue-estimating conference to estimate revenues. If the State estimates funds are not sufficient to fund the appropriation, the legislature must revise the appropriation or proration of state aid will occur. The impact on the Academy of the State's projected revenue shortfall is not known. 3-6 Academy of Flint Management’s Discussion & Analysis June 30, 2011 Contacting the Academy’s Financial Management This report was designed to provide a general overview of the Academy’s financial position and comply with finance-related regulations. If you have any further questions about this report or request additional information, please contact the Academy of Flint at 4058 North Linden Road, Suite F, Flint, Michigan 48504. 3-7 BASIC FINANCIAL STATEMENTS Academy of Flint Statement of Net Assets June 30, 2011 Governmental Activities Assets Cash Accounts receivable Due from other governmental units Prepaid items Capital assets not being depreciated Capital assets - net of accumulated depreciation $ 811,922 12,762 979,243 53,213 18,695 581,226 2,457,061 Total assets Liabilities Accounts payable Accrued expenditures Accrued salaries payable Deferred revenue 126,329 349,517 8,041 151,470 Total liabilities 635,357 Net Assets Invested in capital assets Unrestricted 599,921 1,221,783 $ Total net assets See Accompanying Notes to Financial Statements 4-1 1,821,704 Academy of Flint Statement of Activities For the Year Ended June 30, 2011 Program Revenues Charges for Services Expenses Functions/Programs Governmental activities Instruction Supporting services Food services Community services Total governmental activities Operating Grants and Contributions Net (Expense) Revenue and Changes in Net Assets Capital Grants and Contributions $ 1,922,644 2,506,152 311,325 34,640 $ 38,039 3,440 - $ 915,121 46,230 276,420 - $ 14,105 - $ 4,774,761 $ 41,479 $ 1,237,771 $ 14,105 $ (3,481,406) General revenues State aid - unrestricted Other 3,869,219 3,502 3,872,721 Total general revenues Change in net assets 391,315 1,430,389 Net assets - beginning Net assets - ending See Accompanying Notes to Financial Statements 4-2 (969,484) (2,459,922) (17,360) (34,640) $ 1,821,704 Academy of Flint Governmental Funds Balance Sheet June 30, 2011 Nonmajor Governmental Funds General Fund Assets Cash Accounts receivable Due from other funds Due from other governmental units Prepaid items Total assets Liabilities and Fund Balance Liabilities Accounts payable Due to other funds Accrued expenditures Accrued salaries payable Deferred revenue $ 811,922 12,762 979,243 53,213 $ - $ 811,922 12,762 979,243 53,213 $ 1,857,140 $ - $ 1,857,140 $ 126,329 349,517 8,041 151,470 $ - $ 126,329 349,517 8,041 151,470 Total liabilities Fund Balance Non-spendable Prepaid items Unassigned Total fund balance Total liabilities and fund balance Governmental Activities $ 635,357 - 635,357 53,213 1,168,570 - 53,213 1,168,570 1,221,783 - 1,221,783 1,857,140 See Accompanying Notes to Financial Statements 4-3 $ - $ 1,857,140 Academy of Flint Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2011 Total fund balances for governmental funds $ 1,221,783 Total net assets for governmental activities in the statement of net assets is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Capital assets not being depreciated Capital assets - net of accumulated depreciation 18,695 581,226 $ 1,821,704 Net assets of governmental activities See Accompanying Notes to Financial Statements 4-4 Academy of Flint Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2011 Nonmajor Governmental Funds General Fund Revenues Local sources State sources Federal sources Interdistrict sources $ 41,541 3,958,851 945,973 26,096 $ 3,440 8,200 282,325 - Total Governmental Funds $ 44,981 3,967,051 1,228,298 26,096 4,972,461 293,965 5,266,426 Expenditures Current Education Instruction Supporting services Food services Community services Capital outlay 1,912,516 2,456,249 34,640 267,077 305,126 - 1,912,516 2,456,249 305,126 34,640 267,077 Total expenditures 4,670,482 305,126 4,975,608 Total revenues 301,979 (11,161) 290,818 (11,161) 11,161 - 11,161 (11,161) Total other financing sources (uses) (11,161) 11,161 - Net change in fund balance 290,818 - 290,818 930,965 - 930,965 Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Transfers in Transfers out Fund balance - beginning Fund balance - ending $ 1,221,783 See Accompanying Notes to Financial Statements 4-5 $ - $ 1,221,783 Academy of Flint Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2011 Net change in fund balances - Total governmental funds $ 290,818 Total change in net assets reported for governmental activities in the statement of activities is different because: Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. Operating grants (100,350) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Depreciation expense Capital outlay Change in net assets of governmental activities See Accompanying Notes to Financial Statements 4-6 (94,958) 295,805 $ 391,315 Academy of Flint Notes to Financial Statements June 30, 2011 The statement of net assets presents governmental activities on a consolidated basis, using the economic resources measurement focus and accrual basis of accounting. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Academy of Flint (Academy) conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The following is a summary of the Academy’s significant accounting policies: The statement of activities reports both the gross and net cost of each of the Academy’s functions. The functions are also supported by general government revenues (certain intergovernmental revenues, investments and earnings, etc.). The statement of activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the function. Operating grants include operating-specific and discretionary (either operating or capital) grants. Reporting Entity The Academy was established on July 13, 1999 as a public school academy pursuant to the Michigan School Code of 1976, as amended, and administered by Central Michigan University. The original charter was renewed July 1, 2010. The Academy is located in the Flint area providing education for approximately 544 students from kindergarten through grade eight. The net costs (by function) are normally covered by general revenue (state sources and federal sources, interest income, etc.). In creating the Academy-wide financial statements the Academy has eliminated interfund transactions. Academy of Flint was organized on a non-stock, directorship basis, as a Michigan nonprofit corporation. The Academy-wide focus is on the sustainability of the Academy as an entity and the change in the Academy’s net assets resulting from current year activities. The accompanying basic financial statements have been prepared in accordance with criteria established by the Governmental Accounting Standards Board for determining various governmental organizations to be included in the reporting entity. These criteria include significant operational or financial relationships with the Academy. Based on application of the criteria, the Academy does not contain component units. Fund Financial Statements Academy-wide Financial Statements Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. The Academy’s basic financial statements include both Academywide (reporting for the Academy as a whole) and fund financial statements (reporting the Academy’s major funds). The Academywide financial statements categorize all nonfiduciary activities as either governmental or business type. All of the Academy’s activities are classified as governmental activities. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available. Revenue is considered to be available if it is collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the 4-7 Academy of Flint Notes to Financial Statements June 30, 2011 Receivables and Payables – Generally, outstanding amounts owed between funds are classified as “due from/to other funds”. These amounts are caused by transferring revenues and expenses between funds to get them into the proper reporting fund. These balances are paid back as cash flow permits. Academy considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Prepaid Items – Certain payments to vendors reflect costs applicable to future fiscal years. For such payments in governmental funds the Academy follows the purchase method, and they therefore are expensed when paid in both the Academy-wide and fund financial statements. Unrestricted state aid, intergovernmental grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenue items are considered to be available only when cash is received by the government. Capital Assets – capital assets, which include building improvements, portable classrooms, equipment and furniture, are reported in the applicable governmental column in the Academy-wide financial statements. The Academy defines capital assets as assets with an initial individual cost in excess of $1,000 and an estimated useful life in excess of 3 years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Costs of normal repair and maintenance that do not add to the value or materially extend asset lives are not capitalized. The Academy does not have infrastructure assets. The Academy reports the following major governmental funds: General Fund – The General Fund is used to record the general operations of the Academy pertaining to education and those operations not required to be provided for in other funds. Additionally, the Academy reports the following fund types: Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. The Academy’s Special Revenue Fund is the Food Service Fund. Leasehold improvements, portable classrooms, and equipment and furniture are depreciated using the straight-line method over the following useful lives: Assets, Liabilities and Equity Deposits – Cash includes cash on hand and demand deposits. Leasehold improvements Portable classrooms Equipment and furniture 4-8 20-50 years 20-50 years 3-10 years Academy of Flint Notes to Financial Statements June 30, 2011 Eliminations and Reclassifications Fund Equity – In the fund financial statements, governmental funds report fund balance in the following categories: In the process of aggregating data for the statement of net assets and the statement of activities, some amounts reported as interfund activity and balances in the funds were eliminated or reclassified. Interfund receivables and payables were eliminated to minimize the "grossing up" effect on assets and liabilities within the governmental activities column. Non-spendable - assets that are not available in a spendable form. Restricted – amounts that are legally imposed or otherwise required by external parties to be used for a specific purpose. Economic Dependency Committed – amounts constrained on use imposed by the District’s highest level of decision-making, its board of education. A fund balance commitment may be established, modified, or rescinded by a resolution of the board of education. The Academy received approximately 80% of their General Fund revenue from the Michigan Department of Education. Due to the significance of this revenue source, the Academy is considered to be economically dependent on the Michigan Department of Education. Assigned – amounts intended to be used for specific purposes, as determined by the board of education. Residual amounts in governmental funds other than the general fund are automatically assigned by their nature. Adoption of New Accounting Standard The Government Accounting Standards Board issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which the District adopted effective July 1, 2010. The new standard changes fund balance classifications to depict the relative strength of the spending constraints and clarifies the definitions of various governmental fund types. The standard includes a new definition of special revenue funds, and athletic funds no longer meet that definition. As a result, balances and activities previously reported under the athletic fund are combined with the general fund. Unassigned – all other resources; the remaining fund balances after non-spendable, restrictions, commitments and assignments. When expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Academy’s policy is to consider restricted funds spent first. When expenditure is incurred for purposes for which committed, assigned, or unassigned amounts could be used, the District’s policy is to consider the funds to be spent in the following order: (1) committed, (2) assigned, (3) unassigned. 4-9 Academy of Flint Notes to Financial Statements June 30, 2011 Excess of Expenditures over Appropriations NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY The Academy’s significant expenditure budget variances are as follows: Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America and state law for the General and Special Revenue Funds. All annual appropriations lapse at fiscal year end, thereby cancel all encumbrances. These appropriations are reestablished at the beginning of the year. Final Budget Function General Fund Pupil Instructional staff School administration The budget document presents information by fund and function. The legal level of budgetary control adopted by the governing body is the function level. State law requires the Academy to have its budget in place by July 1. The Academy is not considered in violation of the law if reasonable procedures are in use by the Academy to detect violations. $ 198,783 278,774 271,117 Budget Variances Over (Under) Amount of Expenditures $ 202,370 303,450 271,499 $ 3,587 24,676 382 NOTE 3 - DEPOSITS AND INVESTMENTS The Academy’s deposits and investments were reported in the basic financial statements in the following categories: The Chief Administrative Officer is authorized to transfer budgeted amounts within functions in any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Board of Directors. Total Primary Government Governmental Activities Cash $ 811,922 $ 811,922 Interest rate risk – The Academy does not have a formal investment policy to manage its exposure to fair value losses arising from changes in interest rates. Budgeted amounts are as originally adopted or as amended by the Board of Directors throughout the year. Individual amendments were not material in relation to the original appropriations. Credit risk – State statutes authorize the Academy to make deposits in the accounts of federally insured banks, credit unions, and savings and loan associations that have an office in Michigan; the Academy is allowed to invest in U.S. Treasury or Agency obligations, U.S. government repurchase agreements, bankers’ acceptances, commercial paper rated prime at the time of purchase that matures not more than 270 days after the date of purchase, mutual funds, and 4 - 10 Academy of Flint Notes to Financial Statements June 30, 2011 investment pools that are composed of authorized investment vehicles. The Academy has no investment policy that would further limit its investment choices. Depreciation expense for the fiscal year end amounted to $ 94,958. The Academy allocated depreciation to the various governmental funds as follows: Concentration of credit risk – The Academy has no policy that would limit the amount that may be invested with any one issuer. Governmental activities Instruction Support services Food services Custodial credit risk – deposits – In the case of deposits, this is the risk that in the event of a bank failure, the Academy’s deposits may not be returned to it. The Academy does not have a deposit policy for custodial credit risk. As of year end, $ 639,808 of the Academy’s bank balance of $ 892,834 was exposed to custodial credit risk because it was uninsured and uncollateralized. Total governmental activities Decreases Governmental funds report deferred revenue in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. At the end of the current fiscal year, the Academy reported deferred revenue as follows: Balance Governmental activities Capital assets not being depreciated Construction in progress $ - $ 18,695 $ $ - $ - $ 94,958 NOTE 6 - DEFERRED REVENUE Ending Increases $ Interfund transfers were made during the year from the General Fund to the Food Service fund in the amount of $11,161. A summary of the changes in governmental capital assets is as follows: Bal ance 38,856 49,903 6,199 NOTE 5 - TRANSFERS NOTE 4 - CAPITAL ASSETS Beginning $ 18,695 Capital assets being depreciated 345,138 $ 277,848 Portable classrooms Leasehold improvements 279,330 - - 279,330 Equipm ent and furniture 596,613 37,167 - 633,780 Total capital assets being depreciated 1,498,929 37,167 345,138 1,190,958 Less accum ulated depreciation 1,099,855 94,958 585,081 609,732 Net capital assets $ 622,986 $ 399,074 $ (39,096) $ (239,943) Unearned Grant and state aid revenue recognized as receivable but not received until after 60 days $ 599,921 4 - 11 $ 151,470 Academy of Flint Notes to Financial Statements June 30, 2011 NOTE 7 - RISK MANAGEMENT NOTE 9 – RELATED PARTY The Academy is exposed to various risks of loss related to property loss, torts, errors and omissions, employee injuries (workers’ compensation) and certain medical benefits provided to employees. The Academy has purchased commercial insurance for all other claims. Settled claims relating to commercial insurance have not exceeded the amount of coverage since inception. All of the personnel of the Academy are employed by MEP Services. The Academy makes contributions to a defined contribution pension plan administered by MEP Services who leases employees to the Academy. The Academy matches 100% of employee contributions up to 3% of gross wages. Total contributions for the year ended June 30, 2011 was $5,796. The Academy is subject to the Michigan Employment Security Act and has elected to pay unemployment claims on a direct self-insured basis. Under this method, the Academy must reimburse the Employment Commission for all benefits charged against the Academy for the year. The Academy had $115,677 of unemployment compensation expense for the year. No provision has been made for possible future claims. NOTE 10 - CONTINGENT LIABILITIES Amounts received or receivable from grantor agencies are subjected to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of costs which may be disallowed by the grantor cannot be determined at this time although the Academy expects such amounts, if any, to be immaterial. A separate report on federal compliance has been issued for the year June 30, 2011. NOTE 8 - CAPITAL LEASE The Academy has entered into a lease for its facility with a Michigan nonprofit corporation, Academy of America, whose officers are also The Academy is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Academy’s attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the Academy. stockholders of Charter School Administration Services, Inc., the previous management agent for the Academy. The lease expired July 31, 2009 and on August 1, 2009, the lease was renewed at the existing terms for the following five years. The future minimum lease payments are $27,318 per month through July 31, 2014. 4 - 12 REQUIRED SUPPLEMENTAL INFORMATION Academy of Flint Required Supplemental Information Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2011 Budgeted Amounts Original Revenues Local sources State sources Federal sources Interdistrict sources Total revenues Expenditures Instruction Basic programs Added needs Supporting services Pupil Instructional staff General administration School administration Business Operations and maintenance Pupil transportation services Central Community services Capital outlay Total expenditures $ 4,120 3,952,472 659,195 24,982 Final $ 34,284 4,067,950 882,719 24,982 Over (Under) Budget Actual $ 41,541 3,958,851 945,973 26,096 $ 7,257 (109,099) 63,254 1,114 4,640,769 5,009,935 4,972,461 (37,474) 1,546,434 521,672 1,464,456 546,225 1,423,161 489,355 (41,295) (56,870) 197,715 157,638 512,037 219,647 94,685 875,185 154,000 115,000 39,757 97,000 198,783 278,774 475,186 271,117 124,279 880,380 178,687 105,962 44,577 323,523 202,370 303,450 469,497 271,499 121,720 818,395 166,425 102,893 34,640 267,077 3,587 24,676 (5,689) 382 (2,559) (61,985) (12,262) (3,069) (9,937) (56,446) 4,530,770 4,891,949 4,670,482 (221,467) 5-1 Academy of Flint Required Supplemental Information Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2011 Budgeted Amounts Original Excess of revenues over expenditures Other Financing Sources (Uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - beginning Fund balance - ending $ Actual 109,999 117,986 301,979 183,993 14,684 - 56,236 (52,772) (11,161) (56,236) 41,611 14,684 3,464 (11,161) (14,625) 124,683 121,450 290,818 169,368 930,965 930,965 930,965 1,055,648 5-2 Final Over (Under) Budget $ 1,052,415 $ 1,221,783 $ 169,368 OTHER SUPPLEMENTAL INFORMATION Academy of Flint Other Supplemental Information General Fund Comparative Balance Sheet June 30, 2011 2011 Assets Cash Accounts receivable Due from other governmental units Prepaid items Total assets Liabilities and Fund Balance Liabilities Accounts payable and other liabilities Accrued expenditures Accrued salaries payable Deferred revenue $ 811,922 12,762 979,243 53,213 $ 418,317 1,500 1,321,517 31,286 $ 1,857,140 $ 1,772,620 $ 126,329 349,517 8,041 151,470 $ 100,436 441,780 28,756 270,683 Total liabilities Fund Balance Non-spendable Prepaid items Unassigned Total fund balance $ Total liabilities and fund balance 6-1 2010 635,357 841,655 53,213 1,168,570 31,286 899,679 1,221,783 930,965 1,857,140 $ 1,772,620 Academy of Flint Other Supplemental Information General Fund Schedule of Revenues Compared to Budget For the Year Ended June 30, 2011 Original Budget Revenue from local sources Earnings on investments Student activities Community service activities Other local revenues $ 1,000 3,000 120 Final Budget $ 1,200 1,800 31,284 Over (Under) Final Budget Actual $ 1,319 1,805 58 38,359 $ 119 5 58 7,075 4,120 34,284 41,541 3,586,756 365,716 3,778,432 289,518 3,869,219 89,632 90,787 (199,886) 3,952,472 4,067,950 3,958,851 (109,099) 659,195 882,719 945,973 63,254 Interdistrict sources Other 24,982 24,982 26,096 1,114 Other financing sources Transfers in 14,684 56,236 - (56,236) $ 4,655,453 $ 5,066,171 Total revenues from local sources Revenues from state sources Grants - unrestricted Grants - restricted Total revenues from state sources Revenues from federal sources Grants Total revenue 6-2 $ 4,972,461 7,257 $ (93,710) Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Basic program - elementary Salaries Employee benefits Purchased services Supplies and materials $ 652,528 196,201 28,065 55,022 Final Budget $ 632,160 213,925 50,170 27,063 Actual $ 632,160 217,210 50,379 25,225 Over (Under) Final Budget $ 3,285 209 (1,838) Total elementary 931,816 923,318 924,974 1,656 Basic program - middle school Salaries Employee benefits Purchased services Supplies and materials 351,001 96,037 18,796 148,784 324,703 81,558 29,302 15,000 324,731 81,940 29,350 12,961 28 382 48 (2,039) 614,618 450,563 448,982 (1,581) - 72,863 6,667 6,050 4,995 40,069 3,305 1,626 4,205 (32,794) (3,362) (4,424) (790) - 90,575 49,205 (41,370) Total middle school Basic program - summer school Salaries Employee benefits Purchased services Supplies and materials Total summer school 6-3 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Added needs - special education Salaries Employee benefits Purchased services Supplies and materials $ 160,470 45,510 - Final Budget $ 148,662 32,625 6,111 4,509 Actual $ 149,222 31,605 5,772 2,478 Over (Under) Final Budget $ 560 (1,020) (339) (2,031) 205,980 191,907 189,077 (2,830) Added needs - compensatory education Salaries Employee benefits Purchased services Supplies and materials 227,975 63,797 23,920 230,833 51,871 21,273 50,341 201,137 40,746 20,233 38,162 (29,696) (11,125) (1,040) (12,179) Total compensatory education 315,692 354,318 300,278 (54,040) 64,000 15,368 - 71,381 21,850 2,500 1,122 71,492 22,681 2,502 63 111 831 2 (1,059) 79,368 96,853 96,738 (115) Total special education Pupil - guidance services Salaries Employee benefits Purchased services Supplies and materials Total guidance services 6-4 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Pupil - health services Purchased services Supplies and materials $ 20,000 - Final Budget $ 10,000 1,029 Actual $ 8,667 1,028 Over (Under) Final Budget $ (1,333) (1) Total health services 20,000 11,029 9,695 (1,334) Pupil - psychological services Purchased services 10,000 10,000 9,579 (421) Pupil - speech services Purchased services 46,800 38,738 38,738 - Pupil - social work services Salaries Employee benefits Purchased services 35,853 5,694 - 35,854 5,054 1,255 40,866 5,436 1,318 5,012 382 63 41,547 42,163 47,620 5,457 84,319 15,017 7,894 10,589 14 52,403 3,688 43,692 3,008 50,787 2,765 33,103 2,994 (1,616) (923) 107,230 66,694 100,252 33,558 Total social work services Instructional staff - improvement of education Salaries Employee benefits Purchased services Supplies and materials Total improvement of education 6-5 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Instructional staff - educational media services Salaries Employee benefits Purchased services Supplies and materials $ Total educational media services 35,000 8,008 - Final Budget $ 29,304 4,402 1,087 99,020 Actual $ 26,364 4,150 984 99,017 Over (Under) Final Budget $ (2,940) (252) (103) (3) 43,008 133,813 130,515 (3,298) - 7,949 13,496 7,949 12,167 (1,329) - 21,445 20,116 (1,329) - 35,757 8,401 1,193 2,471 33,568 7,234 1,174 2,286 (2,189) (1,167) (19) (185) - 47,822 44,262 (3,560) 7,400 9,000 8,305 (695) Instructional staff - educational television Instructional staff - technology assisted instruction Purchased services Supplies and materials Total technology assisted instruction Instructional staff - supervision and direction of instructional staff Salaries Employee benefits Purchased services Supplies and materials Total supervision and direction of instructional staff Instructional staff - academic student assessment Purchased services 6-6 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget General administration - board of education Purchased services Supplies and materials Other $ 139,948 9,000 500 Final Budget $ 121,418 7,600 - Actual $ 123,440 7,553 - Over (Under) Final Budget $ 2,022 (47) - 149,448 129,018 130,993 1,975 95,000 8,015 208,574 1,000 95,000 13,129 130,749 - 94,126 12,557 124,531 - (874) (572) (6,218) - 312,589 238,878 231,214 (7,664) General administration - grant writer/grant procurement Purchased services 50,000 107,290 107,290 - School administration - office of the principal Salaries Employee benefits Purchased services Supplies and materials Other 99,668 34,479 23,000 25,500 2,000 136,278 59,104 27,695 25,226 2,086 136,277 59,619 28,357 24,690 2,085 (1) 515 662 (536) (1) 184,647 250,389 251,028 639 Total board of education General administration - executive administration Salaries Employee benefits Purchased services Other Total executive administration Total office of the principal 6-7 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget School administration - other Supplies and materials $ Business - fiscal services Salaries Employee benefits Purchased services Supplies and materials Other Total fiscal services Business - other Other Operations and maintenance - operating building services Salaries Employee benefits Purchased services Supplies and materials Other Total operating building services 6-8 35,000 Final Budget $ 20,728 Actual $ 20,471 Over (Under) Final Budget $ (257) 75,000 6,385 5,500 2,400 1,000 96,691 12,463 8,153 2,400 214 95,726 11,680 7,797 1,945 214 (965) (783) (356) (455) - 90,285 119,921 117,362 (2,559) 4,400 4,358 4,358 92,400 28,744 614,828 95,000 1,000 117,328 40,680 549,669 127,750 300 114,930 40,408 495,687 122,331 129 (2,398) (272) (53,982) (5,419) (171) 831,972 835,727 773,485 (62,242) - Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Operations and maintenance - security services Salaries Employee benefits Purchased services Supplies and materials $ 29,936 11,577 1,700 - Final Budget $ 21,721 9,966 12,166 800 Actual $ 21,719 10,236 12,165 790 Over (Under) Final Budget $ (2) 270 (1) (10) 43,213 44,653 44,910 154,000 178,687 166,425 (12,262) Central - communication services Purchased services 15,000 12,000 9,340 (2,660) Central - staff/personnel services Purchased services - 3,962 3,843 (119) 85,000 15,000 85,000 5,000 84,742 4,968 (258) (32) 100,000 90,000 89,710 (290) Total security services Pupil transportation services Purchased services Central - support services technology Purchased services Supplies and materials Total support services technology 6-9 257 Academy of Flint Other Supplemental Information General Fund Schedule of Expenditures Compared to Budget For the Year Ended June 30, 2011 Original Budget Community services - community activities Salaries Employee benefits Purchased services Supplies and materials $ Total community activities Capital outlay Basic program - elementary School administration - office of the principal Operations and maintenance - operating building services Operations and maintenance - security services Building acquisition and construction services Total capital outlay Other financing uses Transfers out 25,000 6,845 7,912 6 - 10 $ 25,503 6,655 1,983 10,436 Actual $ 25,503 4,199 1,097 3,841 $ (2,456) (886) (6,595) 39,757 44,577 34,640 (9,937) 87,000 10,000 - 800 4,160 1,000 1,267 316,296 800 4,160 2,212 1,266 258,639 1,212 (1) (57,657) 97,000 323,523 267,077 (56,446) - 52,772 11,161 (41,611) $ 4,944,721 $ 4,681,643 $ 4,530,770 Total expenditures and financing uses Final Budget Over (Under) Final Budget $ (263,078) Academy of Flint Other Supplemental Information Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2011 Special Revenue Fund Food Service Fund Revenues Local sources State sources Federal sources $ 3,440 8,200 282,325 293,965 Total revenues Expenditures Current Education Food services 305,126 (11,161) Deficiency of revenues over expenditures Other Financing Sources (Uses) Transfers in 11,161 Net change in fund balance - Fund balance - beginning $ Fund balance - ending 6 - 11 -