KIPP DALLAS - FORT WORTH, INC.

Transcription

1 Financial Statements June 30, 2011

2 FINANCIAL STATEMENTS -5-

3 TABLE OF CONTENTS Certificate of Board Independent Auditor s Report Financial Statements: Statement of Financial Position Statement of Activities Statement of Cash Flows Notes to Financial Statements Supplementary Information: Schedule of Expenses Schedule of Capital Assets Schedule of Budgetary Comparison Compliance and Internal Controls Section Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...23 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A Schedule of Findings and Questioned Costs Schedule of Status of Prior Findings Schedule of Expenditure of Federal Awards

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8 Statement of Financial Position June 30, 2011 Temporarily Unrestricted Restricted Total ASSETS Current assets: Cash and cash equivalents $ 1,297,139 (5,213) 1,291,926 Due from state 541, ,663 Other receivables 284, ,566 Prepaid expenses 16,198 16,198 Due (to)/from other funds 86,107 86,107 Total current assets 1,684, ,450 2,220,460 Capital assets, net 1,724,038 1,724,038 Total assets $ 3,408, ,450 3,944,498 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $ 114,367 4, ,823 Accrued liabilities 221, ,874 Due to other funds 86,107 86,107 Current portion of long term debt 90,783 90,783 Total current liabilities 513,131 4, ,587 Long Term Liabilities: Long term portion of note payable 902, ,179 Total long term liabilities 902, ,179 Total liabilities 1,415,310 4,456 1,419,766 Net assets: Unrestricted 1,992,738 1,992,738 Temporarily restricted 531, ,994 Total net assets 1,992, ,994 2,524,732 Total liabilities and net assets $ 3,408, ,450 3,944,498 The notes to the financial statements are an integral part of this statement. -6-

9 Statement of Activities Temporarily Unrestricted Restricted Total REVENUES Local support: Contributions $ 720,544 95, ,166 Other income 48,777 48,777 Total local support 769,321 95, ,943 State program revenues: Foundation School Program 2,542,265 2,542,265 Other State Aid 30,160 30,160 Total state program revenues 2,572,425 2,572,425 Federal program revenues: ESEA Title 1, Part A 106, ,807 ESEA Title I, Part A, ARRA 26,643 26,643 IDEA Part B 46,797 46,797 IDEA Part B, ARRA 29,057 29,057 Child nutrition 220, ,708 ESEA Title II, Part A 26,858 26,858 ESEA Title IV, Part A 1,171 1,171 Title XIV, SFSF, ARRA 47,238 47,238 Total federal program revenues 505, ,279 Net assets released from restrictions: Restrictions satisfied by payments 3,728,962 (3,728,962) Total revenues $ 4,498,283 (555,636) 3,942,647 -continued- -7-

10 Temporarily Unrestricted Restricted Total EXPENSES Program services: (11) Instruction $ 1,428,474 1,428,474 (13) Curriculum development and instruction staff development 36,019 36,019 (21) Instructional leadership 73,115 73,115 (23) School leadership 270, ,491 (31) Guidance counseling and evaluation 189, ,914 (33) Health services 1,375 1,375 (34) Transportation 191, ,707 (35) Food services 226, ,805 Total program services 2,417,900 2,417,900 Support services: (41) General administration 537, ,997 (51) Facilities maintenance and operations 542, ,591 (52) Security and monitoring services 1,207 1,207 (53) Data processing services 53,620 53,620 (61) Community services 2,051 2,051 (71) Debt service 30,944 30,944 (81) Fund raising 142, ,652 Total support services 1,311,062 1,311,062 Total expenses 3,728,962 3,728,962 Revenues over/(under) expenses 769,321 (555,636) 213,685 Net assets, beginning of year 1,223,417 1,087,630 2,311,047 Net assets, end of year $ 1,992, ,994 2,524,732 The notes to the financial statements are an integral part of this statement. Statement of Activities -continued- -8-

11 Statement of Cash Flows Cash flows from operating activities: Foundation School Program payments $ 2,542,265 Other State aid 30,160 Federal program revenues 497,703 Contributions 816,166 Other income 48,777 Payments to vendors (2,092,516) Payments to employees (1,685,321) Net cash provided by operating activities 157,234 Cash flows from investing activities: Purchase of capital assets (667,443) Net cash used in investing activities (667,443) Cash flows from financing activities: Proceeds from long-term debt 1,019,455 Payments on long term debt (43,909) Net cash provided by financing activities 975,546 Net increase/(decrease) in cash 465,337 Cash, beginning of year 826,589 Cash, end of year $ 1,291,926 Reconciliation of change in net assets to net cash provided by operating activities: Change in net assets $ 213,685 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 198,045 (Increase)/decrease in assets: Accounts receivable 137,164 Due from state (27,310) Prepaid expenses 2,874 Due to other funds (86,107) Increase/(decrease) in liabilities: Accounts payable (321,517) Accrued liabilities (45,707) Due to other funds 86,107 Net cash provided by operating activities $ 157,234 The notes to the financial statements are an integral part of this statement. -9-

12 Notes to Financial Statements (A) BACKGROUND KIPP Dallas - Fort Worth, Inc. (School) was incorporated in 2003 to operate a charter school in Dallas, Texas. It is part of a national network of free, open enrollment, college preparatory schools known as Knowledge is Power Program (KIPP). It is the mission of the School to provide underserved children in our community with a free, rigorous, high quality education that offers the knowledge, skills and character traits necessary to thrive in school, college and the competitive world beyond. The School s enrollment for the school year was approximately 303 students in the fifth, sixth, seventh, and eighth grades at one campus located in Dallas, Texas. The charter holder, KIPP Dallas - Fort Worth, Inc., operated a single charter school and did not conduct any non-charter activities. (B) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the School conform to accounting principles generally accepted in the United States of America. The following is a summary of the significant policies. 1. Basis of Accounting The financial statements of the School were prepared using the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. Encumbrances representing outstanding purchase orders and other commitments for materials or services not yet received are not liabilities as of the reporting date. 2. Basis of Presentation In order to comply with accounting principles generally accepted in the United States of America, the School must prepare its external financial statements in accordance with statements issued by the Financial Accounting Standard Board as described in the AICPA Audit and Accounting Guide for not for profit organizations. The Audit Guide requires classification of the School s net assets and its revenues, expenses, gains, and losses based on the existence or absences of donor-imposed restrictions. It requires that the amounts for each of three classes of net assets - permanently restricted, temporarily restricted, and unrestricted - be displayed in a statement of financial position and that the amounts of change in each of those classes of net assets be displayed in a statement of activities. Unrestricted - net assets that are not subject to donor-imposed stipulations. Temporarily restricted - net assets subject to donor-imposed stipulations that may or will be met, either by actions of the corporation, the charter school and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. -continued- -10-

13 (B) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2. Basis of Presentation (continued) Permanently restricted - net assets required to be maintained in perpetuity with only the income to be used for the charter school s activities due to donor-imposed restrictions. The School has no permanently restricted funds. 3. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 4. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and equivalents include cash on hand and short term investments with original maturities of three months or less. 5. Income Tax Status The School is exempt from federal income taxes under Section 501(c)3 of the Internal Revenue Code. 6. Contributions Contributions are recognized when the donor makes a promise to give that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted assets. 7. Donated Services and Property During the year ended June 30, 2011, the value of contributed services meeting the requirements for recognition in the financial statements was $84,078 which has been recorded as revenue and expense. However, a substantial number of individuals have donated significant amounts of their time in the School s programs and supporting services which have not been recorded as revenue and expense. Donations of property and equipment are recorded at the estimated fair value as of the date the contribution is received. Notes to Financial Statements -continued- -continued- -11-

14 (C) TEMPORARILY RESTRICTED ASSETS The School reports gifts of cash and other assets as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are classified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. Temporarily restricted net assets were released from donor restrictions by incurring expenses satisfying the following restricted purposes: Construction related matters $ 1,085,976 State funded educational programs 2,085,431 Federally funded educational programs 505,279 Technology 9,072 Child nutrition 1,654 Extended day program 41,550 Total $ 3,728,962 Temporarily restricted assets, as of June 30, 2011, are available for the following purposes: State funded educational programs $ 486,994 Technology 20,000 Extended day program 25,000 Total $ 531,994 (D) ACCOUNTS RECEIVABLE Accounts receivable consist of: Due from state State foundation revenue $ 451,770 Federal grant revenue 65,500 School breakfast/lunch program 16,860 Texas Fitness Now Grant 7,533 Subtotal 541,663 Other receivables Expansion pledges 172,844 Unrestricted pledges 103,543 ERATE credits 8,071 Reimbursement 108 Subtotal 284,566 Total $ 826,229 Notes to Financial Statements -continued- -continued- -12-

15 (D) ACCOUNTS RECEIVABLE (continued) Gross expansion pledges receivable are $205,000 however they have been discounted to net present value at a rate of.5 percent per month. Pledges are expected to be collected as follows: Fiscal Pledge Year Ending Amount 2012 $ 40, , , ,000 Present value discount (32,156) Net present value $ 172,844 (E) CAPITAL ASSETS Capital assets are stated at cost or, if donated, at fair value on the date received. Assets with a cost of $5,000 or more and a life expectancy of greater than three years are capitalized. Capital assets acquired with public funds constitute public property pursuant to Chapter 12 of the Texas Education Code. A summary of changes in capital assets follows: Disposals Net Physical Beginning and Ending Accumulated Properties Balance Additions Transfers Balance Depreciation Balance Leasehold improvements $ 1,651, ,764 2,301, ,219 1,695,371 Furniture & equipment 202,400 17, , ,412 28,667 Total $ 1,854, ,443 2,521, ,631 1,724,038 Assets are depreciated on the straight-line basis as follows: Leasehold improvements Furniture and equipment 5 years 5 years For the period ended June 30, 2011, $198,045 was charged to depreciation expense. (F) NOTES PAYABLE On April 6, 2010, the School entered into an agreement with NCB Capital Impact for a construction loan from which advances were taken as construction of leasehold improvements progressed. The loan is collateralized by all present and future furniture, fixtures, equipment, supplies, inventory and accounts of the School and all other personal property of the School as outlined in the security agreement. The loan carries a fixed interest rate of 6 percent. The loan balance as of June 30, 2011 was $992,962. The loan is being paid in 110 monthly payments of $12,492, including interest. Notes to Financial Statements -continued- -continued- -13-

16 Notes to Financial Statements -continued- (F) NOTES PAYABLE (continued) Estimated future year debt service requirements are as follows: Fiscal Year Ending Principal Interest Total 2012 $ 90,782 59, , ,580 53, , ,750 47, , ,312 40, , ,294 33, ,904 Thereafter 477,244 60, ,426 Total $ 992, ,984 1,286,946 (G) PENSION PLAN OBLIGATION Plan Description - The School contributes to the Teacher Retirement System of Texas (the System), a public employee retirement system. It is a cost sharing, multiple-employer defined benefit pension plan with one exception; all risks and costs are not shared by the School, but are the liability of the State of Texas. The System provides service retirement and disability retirement benefits, and death benefits to plan members and beneficiaries. The System operates under the authority of provisions contained primarily in Texas Government code, Title 8, Public Retirement Systems, Subtitle C, Teacher Retirement System of Texas, which is subject to amendment by the Texas Legislature. The System s annual financial report and other required disclosure information are available by writing the Teacher Retirement System of Texas, 1000 Red River, Austin, Texas , or by calling , or by downloading from the system website Contribution requirements are not actuarially determined but are established and amended by the Texas state legislature. The state funding policy is a follows: (1) the state constitution requires the legislature to establish a member contribution rate of not less than 6.0% of the member s annual compensation and a state contribution rate of not less than 6.0% and not more than 10% of the aggregate annual compensation of all members of the system; (2) A state statute prohibits benefit improvements or contribution reductions if, as a result of a particular action, the time required to amortize TRS unfunded actuarial liabilities would be increased to a period that exceeds 31 years, or, if the amortization period already exceeds 1 year, the period would be increased by such action. State law provides for a member contribution rate of 6.4% for fiscal years 2011 and 2010, and a state contribution rate of 6.644%and 6.40% for fiscal years 2011 and 2010 respectively. The charter school s employees contributions to the System for the years ending June 30, 2011 and 2010 were $111,392 and $99,432, respectively, equal to the required contributions for each year. -continued- -14-

17 (H) COMMITMENTS and CONTINGENCIES The School receives funds through state and federal programs that are governed by various statutes and regulations. State program funding is based primarily on student attendance data submitted to the Texas Education Agency and is subject to audit and adjustment. Expenses charged to federal programs are subject to audit and adjustment by the grantor agency. The programs administered by the School have complex compliance requirements, and should state or federal auditors discover areas of noncompliance, school funds may be subject to refund if so determined by the Texas Education Agency or the grantor agency. (I) RELATED PARTIES The School licenses the KIPP trademark from KIPP Foundation. If the School voluntarily relinquishes its license rights, it must reimburse KIPP Foundation $200,000. Under this agreement, annual license fees are to be paid to KIPP Foundation, as determined by both parties. The School paid the KIPP Foundation $20,784 for 2010 license rights and will pay $24,640 for 2011 license rights. License rights are normally paid at the end of each fiscal year. (J) HEALTH CARE COVERAGE During the period ended June 30, 2011, employees of the School were covered by a Health Insurance Plan. The School contributed $400 per month per employee to the Plan. Employees, at their option authorized payroll withholdings to pay contributions or premiums for dependents. All premiums were paid to licensed insurers. (K) LEASES The School has a copier lease dated March 26, Future minimum payments under the lease are as follows: Fiscal Year Ending 2012 $ 7, , ,661 $ 20,757 The School leases its facilities. The lease is through May 31, 2019 at $8,000 per month plus common area maintenance and tax charges. (L) EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the year ended June 30, 2011, actual expenses exceeded budgeted amounts by more than ten percent in seven functions and total actual expenses were $172,522 more than budgeted. Notes to Financial Statements -continued- -continued- -15-

18 (M) CONCENTRATION OF CREDIT RISK At June 30, 2011 the School had cash accounts with a carrying value of $1,291,926 and a bank balance of $1,342,576. Of the bank balance, $150,245 was FDIC insured. (N) EVALUATION OF SUBSEQUENT EVENTS The School has evaluated subsequent events through October 28, 2011, the date which the financial statements were available to be issued. Notes to Financial Statements -continued- -16-

19 SUPPLEMENTARY INFORMATION -17-

20 Schedule of Expenses EXPENSES 6100 Payroll costs $ 2,035, Professional and contracted services 684, Supplies and materials 550, Other operating costs 427, Debt 30,944 Total expenses $ 3,728,

21 Schedule of Capital Assets Ownership Interest Local State Federal 1100 Cash and cash equivalents $ 1,291, Buildings and improvements 1,695, Furniture and equipment 28,667 Total capital assets $ 3,015,

22 Schedule of Budgetary Comparison Original and Final Variance Budgeted Actual from Final REVENUES Amounts Amounts Budget Local support: 5740 Other revenue from local sources $ 635, , , Revenue from Cocurriculum 11,514 12,642 1,128 Total local support 647, , ,943 State program revenues: 5810 Foundation school program act revenues 2,483,930 2,542,265 58, State program revenue distributed by Texas Education Agency 35,016 30,160 (4,856) Total State program revenues 2,518,946 2,572,425 53,479 Federal program revenue: 5920 Federal revenue distributed by Texas Education Agency 445, ,279 60,051 Total Federal program revenue 445, ,279 60,051 EXPENSES Total revenues 3,611,174 3,942, , Instruction 1,445,387 1,428,474 16, Curriculum development and Instructional staff development 5,324 36,019 (30,695) 21 Instructional leadership 78,435 73,115 5, School leadership 308, ,491 38, Guidance counseling and evaluation services 160, ,914 (29,285) 33 Health services 2,586 1,375 1, Student transportation 148, ,707 (42,967) 35 Food service 198, ,805 (28,782) 41 General administration 639, , , Plant maintenance and operations 335, ,591 (207,228) 52 Security and monitoring services 500 1,207 (707) 53 Data processing 51,190 53,620 (2,430) 61 Community services 2,051 (2,051) 71 Debt service 43,278 30,944 12, Fund raising 139, ,652 (3,435) Total expenses 3,556,440 3,728,962 (172,522) Change in net assets 54, , ,951 Net assets, beginning 2,311,047 2,311,047 Net assets, ending $ 2,365,781 2,524, ,

23 COMPLIANCE AND INTERNAL CONTROLS SECTION -21-

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25 PINGLETON, HOWARD & COMPANY, P. C. CERTIFIED PUBLIC ACCOUNTANTS P. O. BOX 148 FRISCO, TEXAS /FAX TOM W. PINGLETON, CPA RANDY HOWARD, CPA KIRK EVANS, CPA ROBIN TURNBULL, CPA WHITNEY YOUNTS, CPA MEMBERS AMERICAN INSTITUTE of CPAs AICPA DIVISION for CPA FIRMS TEXAS SOCIETY of CPAs REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Dallas, Texas Board of Directors: We have audited the financial statements of KIPP Dallas - Fort Worth, Inc. as of and for the year ended June 30, 2011, and have issued our report thereon dated October 28, 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered KIPP Dallas - Fort Worth, Inc. s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of KIPP Dallas - Fort Worth, Inc. s internal control over financial reporting. A deficiency in control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. -23-

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27 PINGLETON, HOWARD & COMPANY, P. C. CERTIFIED PUBLIC ACCOUNTANTS P. O. BOX 148 FRISCO, TEXAS /FAX TOM W. PINGLETON, CPA RANDY HOWARD, CPA KIRK EVANS, CPA ROBIN TURNBULL, CPA WHITNEY YOUNTS, CPA MEMBERS AMERICAN INSTITUTE of CPAs AICPA DIVISION for CPA FIRMS TEXAS SOCIETY of CPAs REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 INDEPENDENT AUDITOR'S REPORT Board of Directors Dallas, Texas Board of Directors: Compliance We have audited the compliance of the KIPP Dallas - Fort Worth, Inc. with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, KIPP Dallas - Fort Worth, Inc.'s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of KIPP Dallas - Fort Worth, Inc.'s management. Our responsibility is to express an opinion on KIPP Dallas - Fort Worth, Inc.'s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about KIPP Dallas - Fort Worth, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on KIPP Dallas - Fort Worth, Inc.'s compliance with those requirements. In our opinion KIPP Dallas - Fort Worth, Inc. complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30,

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29 KIPP DALLAS - FT. WORTH, INC. Schedule of Findings and Questioned Costs I. Summary of Auditor s Results 1. Type of auditor s report issued on the financial statements of the auditee 2. Significant deficiencies in internal controls disclosed by the audit of the financial statements Unqualified None a. Significant deficiencies that were material weaknesses None 3. Noncompliance material to the financial statements of the auditee disclosed by the audit of the financial statements 4. Significant deficiencies in internal controls over major programs disclosed by the audit of the financial statements None None a. Significant deficiencies that were material weaknesses None 5. Type of auditor s report issued on compliance for major programs Unqualified 6. Findings disclosed by the audit of the financial statements which the auditor is required to report None 7. Major Programs: ARRA, TTL, XIV, SFSF (CFDA A) $ 47,238 National School Lunch Program (CFDA ) $ 149,219 National School Breakfast Program (CFDA ) $ 63, The dollar threshold used to distinguish between Type A and Type B programs $ 300, Auditee qualified as a low- risk auditee No II. Findings relating to the financial statements which are required to be reported in accordance with generally accepted government auditing standards None identified. III. Findings and questioned costs for state and federal awards None identified. -27-

30 KIPP DALLAS - FT. WORTH, INC. Schedule of Status of Prior Findings Program Status of Prior Year's Finding/ Noncompliance - NONE

31 KIPP DALLAS - FT. WORTH, INC. Schedule of Expenditure of Federal Awards Grantor/Program Title Federal Pass Through CFDA Entity Identification Federal United States Department of Education Number Number Expenditures Passed Through State Department of Education: IDEA - Part B, Formula A $ 46,797 IDEA - Part B, Formula, ARRA A ,057 Title XIV, ARRA (SFSF) A ,238 Total Passed Through State Department of Education 123,092 Passed Through Region X ESC: ESEA, Title IV, Part A, SDFS A ,171 ESEA, Title I, Part A, IBP A ,807 ESEA, Title I, Part A, IBP, ARRA A ,643 ESEA, Title II, Part A, T/PT A ,858 Total Passed Through Region X ESC 161,479 United States Department of Agriculture Passed Through State Department of Agriculture National School Lunch Program ,219 School Breakfast Program ,913 Donated Commodities ,576 Total Passed Through State Department of Agriculture 220,708 Total Expenditures of Federal Awards $ 505,279 NOTE 1: Standard Financial Accounting System For all federal programs, the School used the net asset classes and codes specified by the Texas Education Agency in the Special Supplement to Financial Accounting and Reporting, Nonprofit Charter School Chart of Accounts. Temporarily restricted net asset codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is generally accounted for in temporarily restricted net asset codes. -29-