HOGAN PREPARATORY ACADEMY, INC. KANSAS CITY, MISSOURI FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS' REPORT

Transcription

1 KANSAS CITY, MISSOURI FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS' REPORT FOR THE YEAR ENDED JUNE 30, 2009

2 TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT... 1 FINANCIAL STATEMENTS: Statement of Assets, Liabilities and Net Assets - Modified Cash Basis... 2 Statement of Support, Revenue and Expenses - Modified Cash Basis... 3 NOTES TO THE FINANCIAL STATEMENTS... 4 SUPPLEMENTARY INFORMATION:... 7 Statement of Assets, Liabilities and Fund Balances - Modified Cash Basis - Governmental Funds... 8 Statement of Revenues, Expenditures and Changes in Fund Balances - Modified Cash Basis - Governmental Funds... 9 Schedule of Revenues Collected by Source - Modified Cash Basis Comparison of Revenues Collected by Source - Modified Cash Basis Schedule of Expenditures by Object - Modified Cash Basis Selected Trends Schedule of Selected Statistics INTERNAL CONTROL AND COMPLIANCE: Report on Internal Control over Financial Reporting and on Compliance Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report on the Administration's Assertions About Compliance with Specified Requirements of Missouri Laws and Regulations Schedule of State Findings i -

3 WESTBROOK & CO., P.C. Certified Public Accountants To the Board of Directors Hogan Preparatory Academy, Inc. INDEPENDENT AUDITORS' REPORT 749 Driskill Dr. Richmond, Missouri Telephone: (816) KC Line: (816) Fax: (816) We have audited the accompanying statement of assets, liabilities and net assets - modified cash basis of Hogan Preparatory Academy, Inc. (a non-profit corporation) as of June 30, 2009 and the related statement of support, revenue and expenses - modified cash basis for the year then ended. These financial statements are the responsibility of the School's administration. Our responsibility is to express an opinion 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 the administration, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note B, these financial statements were prepared on the modified cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets of Hogan Preparatory Academy, Inc. as of June 30, 2009 and the change in its net assets for the year then ended, on the modified cash basis of accounting described in Note B. In accordance with Government Auditing Standards, we have also issued our report dated October 13, 2009 on our consideration of the School s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information presented on pages 7 through 15 is presented for purposes of complying with the requirements of the Missouri Department of Elementary and Secondary Education and is not a required part of the financial statements. This information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. October 13, 2009

4 STATEMENT OF ASSETS, LIABILITIES AND NET ASSETS - MODIFIED CASH BASIS JUNE 30, 2009 ASSETS Cash $ 559,559 Property and equipment, net 1,071,283 Total assets $ 1,630,842 LIABILITIES AND NET ASSETS LIABILITIES Note payable $ 70,000 Payroll withholdings 14,987 Total liabilities 84,987 NET ASSETS Unrestricted 1,545,855 Total Liabilities and Net Assets $ 1,630,842 See accompanying notes

5 STATEMENT OF SUPPORT, REVENUE AND EXPENSES - MODIFIED CASH BASIS FOR THE YEAR ENDED JUNE 30, 2009 Change in Unrestricted Net Assets: SUPPORT AND REVENUE: Local $ 373,249 State 2,682,976 Federal 493,253 Total support and revenue 3,549,478 EXPENSES: Instruction 2,089,290 Student services 204,808 Instructional staff support 220,115 General administration & central services 119,724 Building level administration 312,192 Operation of plant 336,602 Transportation 20,232 Food service 90,462 Debt service: Interest and fees 3,562 Total expenses 3,396,987 Change in Unrestricted Net Assets 152,491 Net assets, beginning of year, restated 1,393,364 Net assets, end of year $ 1,545,855 See accompanying notes

6 NOTE A - BUSINESS ACTIVITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 The Hogan Preparatory Academy, Inc. is a not-for-profit public benefit corporation organized on June 8, 1998 under Chapter 355, RSMo and governed by Senate Bill No. 781 of the 89 th General Assembly of the Missouri legislature. The corporation operates a charter school, which is sponsored by University of Central Missouri. The School is exempt from most Missouri laws and statutes governing educational institutions. The afore-mentioned Senate Bill No. 781 governs it. The School s charter allows for the provision of education for students in grades nine through twelve. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation: The School has adopted Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SAS No. 117, the School is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. At June 30, 2009, all net assets are considered unrestricted. Basis of Accounting: Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. The financial statements are presented on the modified cash basis of accounting. This basis recognizes assets, liabilities, net assets/fund equity, revenues and expenses when they result from cash transactions, with a provision for depreciation and for long-term liabilities, such as promissory notes, which are recognized when incurred. Accordingly, the accompanying financial statements are not intended to present financial position or results of operations in accordance with accounting principles generally accepted in the United States of America. Estimates: The preparation of financial statements in conformity with the modified cash basis requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Income Taxes: The School is exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code and has been classified as an organization that is not a private foundation under Section 509(a)(2). Personal Leave: Personal days are considered as expenditures in the year paid. Full-time employees accumulate personal days based on length of service and number of months of employment during the fiscal year. A maximum of five unused personal days for nine month employees and ten unused personal days for 12 month employees may be carried over to the next fiscal year. Unused personal days, except as specified above, are forfeited. Part-time employees are not allowed personal days. Property and Equipment: All property and equipment are valued at historical cost, if acquired, or fair value, if donated. Depreciation is provided over the assets estimated useful lives using the straight-line method of depreciation. A capitalization threshold of $1,000 is used to report capital assets. Equipment Buildings and improvements 5 years 50 years - 4 -

7 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE C - CASH At June 30, 2009, the carrying amount of cash was $559,559 as reported on the School s statement of assets. The bank balance was $561,122 of which $480,624 was covered by federal depository insurance and $80,498 was not insured. NOTE D - INSURANCE The School is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The School maintains commercial insurance to protect itself from such risks. NOTE E - RETIREMENT PLAN The School contributes to The Public School Retirement System of the School District of Kansas City, Missouri a cost-sharing multiple-employer defined benefit pension plan. Participation is mandatory for employees of the Kansas City, Missouri Public School District, the Kansas City Public Library, and the Public School Retirement System. The Retirement System provides service and disability retirement benefits to full-time employees and optional benefits to members' beneficiaries. Positions covered by The Retirement System are also covered by Social Security. A twelve member Board of Trustees administers the Retirement System. The Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to: The Public School Retirement System of the School District of Kansas City, Missouri, 324 E. 11 th St., Kansas City, Missouri, 64106, or by calling The Retirement System members are required to contribute 7.5% of their annual covered salary and the School is required to contribute a matching amount. The contribution requirements of members and the School are established, and may be amended, by the Board of Trustees. The School's required contributions to the System for the year ended June 30, 2009 were $138,432, equal to the required contributions. NOTE F - PROPERTY AND EQUIPMENT Buildings and improvements $ 1,085,973 Land 115,933 Equipment 8,134 1,210,040 Accumulated depreciation (138,757) $ 1,071,283 Depreciation expense for the period ended June 30, 2009 was $21,830. The depreciation expense was allocated to the operation of plant function

8 NOTE G - NOTE PAYABLE NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 On January 31, 2005, the School executed an unsecured revolving line of credit from a bank in the amount of $130,000 with a maturity of January 31, This note was renewed and is now due January 31, 2010 and bears interest at 1% over prime, which is currently 4.25%. The balance at June 30, 2009 was $70,000. NOTE H - RESTATEMENT OF NET ASSETS In prior years the School did not record property and equipment and related accumulated depreciation. The net effect on beginning net assets was $1,041,793. The beginning net assets have been restated to reflect the above change

9 SUPPLEMENTARY INFORMATION - 7 -

10 STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES - MODIFIED CASH BASIS - GOVERNMENTAL FUNDS JUNE 30, 2009 ASSETS SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTALS Cash $ 546,594 $ 12,965 $ - $ 559,559 LIABILITIES AND FUND BALANCES Liabilities: Note payable $ 70,000 $ - $ - $ 70,000 Payroll withholdings 2,022 12,965-14,987 Total liabilities 72,022 12,965-84,987 Fund Balances: Unreserved 474, ,572 Total liabilities and fund balances $ 546,594 $ 12,965 $ - $ 559,

11 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2009 SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTALS REVENUES: Local $ 269,538 $ 103,711 $ - $ 373,249 State 672,934 2,010,042-2,682,976 Federal 493, ,253 Total Revenues 1,435,725 2,113,753-3,549,478 EXPENDITURES: Instruction 436,745 1,652, ,089,290 Student services 78, , ,808 Instructional staff support 95, ,702 3, ,115 General administration & central services 119, ,724 Building level administration 98, , ,192 Operation of plant 314,772-8, ,906 Transportation 20, ,232 Food service 90, ,462 Facility construction and acquisition ,186 43,186 Interest and fees 3, ,562 Total Expenditures 1,257,955 2,113,753 54,769 3,426,477 Revenues Over (Under) Expenditures 177,770 - (54,769) 123,001 Other Financing Sources (Uses): Transfers (54,769) - 54,769 - Net change in fund balances 123, ,001 Fund balance, beginning 351, ,571 Fund balance, ending $ 474,572 $ - $ - $ 474,

12 SCHEDULE OF REVENUES COLLECTED BY SOURCE - MODIFIED CASH BASIS FOR THE YEAR ENDED JUNE 30, 2009 SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTALS LOCAL: Sales tax $ 172,851 $ 103,711 $ - $ 276,562 Food service 4, ,229 Student activities 55, ,111 Donations 5, ,552 Rental 1, ,377 Grant 4, ,401 Other 26, ,017 Total Local 269, , ,249 STATE: Basic formula 560,750 2,010,042-2,570,792 Basic formula - classroom trust fund 110, ,596 Food service Other state revenue Total State 672,934 2,010,042-2,682,976 FEDERAL: Medicaid 18, ,343 Title I 284, ,778 Individuals with Disabilities 60, ,351 Food service 85, ,170 Title II, A 40, ,858 Title IV 3, ,454 Title V Total Federal 493, ,253 Total Revenues $ 1,435,725 $ 2,113,753 $ - $ 3,549,

13 COMPARISON OF REVENUES COLLECTED BY SOURCE FOR THE YEARS ENDED JUNE 30, 2009, 2008 AND Local $ 373,249 $ 392,727 $ 409,501 State 2,682,976 2,443,554 2,743,136 Federal 493, , ,626 $ 3,549,478 $ 3,117,548 $ 3,496,263 90% 80% 70% 60% 76% 78% 78% 50% 40% 30% % 10% 11% 13% 12% 13% 9% 10% 0% Local State Federal

14 SCHEDULE OF EXPENDITURES BY OBJECT - MODIFIED CASH BASIS FOR THE YEARS ENDED JUNE 30, 2009, 2008 AND 2007 SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTALS TOTALS TOTALS Salaries $ 247,976 $ 1,762,942 $ - $ 2,010,918 $ 1,842,509 $ 1,914,026 Employee benefits 72, , , , ,378 Purchased services 649, , , ,734 Supplies 285, , , ,440 Capital outlay ,685 54,685 88,702 24,023 Interest and fees 3, ,562 6,482 7,119 $ 1,257,955 $ 2,113,753 $ 54,769 $ 3,426,477 $ 3,139,424 $ 3,146,720 90% 80% 70% 71% 72% 74% 60% 50% 40% 30% 20% 10% 0% 19% 15% 15% 8% 10% 10% 2% 3% 1% Salaries and employee benefits Purchased services Supplies Capital outlay

15 SELECTED TRENDS June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 Total Fund Balances - Funds 1 and 2 $ 163,564 $ 23,904 $ 373,447 $ 351,571 $ 474,572 Total Expenditures - Funds 1 and 2 2,377,254 2,756,765 3,121,323 3,050,306 3,371,708 Reserve ratio 6.88% 0.87% 11.96% 11.53% 14.08% Average Daily Attendance Reserve ratio 20.00% 15.00% 10.00% 5.00% 0.00% June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 Average Daily Attendance June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30,

16 SCHEDULE OF SELECTED STATISTICS FOR THE YEAR ENDED JUNE 30, 2009 Type of audit performed: Yellow Book X Single Audit 1. CALENDAR A The number of hours classes were in session and pupils were under the direction of teachers during the year was 1, B. The number of days classes were in session and pupils were under the direction of teachers during the year was 175 days. 2. AVERAGE DAILY ATTENDANCE 3. SEPTEMBER MEMBERSHIP Grades Grades 9-12 remedial 6.17 Summer School September membership FTE Count FREE AND REDUCED PRICED LUNCH FTE COUNT (Section (6), RSMo) State FTE Total Free Reduced FINANCE A. A bond is not required by Section , RSMo. since the School is organized under the charter school laws of Missouri. B. The School s deposits were secured during the year as required by Section and , RSMo No C. The School maintained a separate bank account for its Debt Service Fund in accordance with Section , RSMo. N/A D. The School did not issue any general obligation refunding bonds. E. The School has appropriately included all current and prior year crossover refunding bonds in the financial statements N/A F. The School has a school improvement plan. N/A G. The School is not required to participate in professional development activities

17 SCHEDULE OF SELECTED STATISTICS FOR THE YEAR ENDED JUNE 30, FINANCE (continued) H. The amount spent for approved professional development committee plan activities was: $38,829 I. The School did not use state funded grant monies to supplant existing salaries. N/A J Salaries reported for educators in the October Core Data Cycle are supported by payroll/contract records. True K The School did not make a $162,326 or 7% x SAT x WADA transfer. N/A L. The School took action prior to October 31 to cause the audit to be performed. True M. The School published a summary of the prior year s audit report within thirty days of the receipts of the audit pursuant to Section , RMSo. N/A 6. TRANSPORTATION A. The School did not provide transportation for its pupils. 7. MISSOURI SCHOOL IMPROVEMENT PROGRAM (MSIP) The School has made representation regarding the following: A. The School has adequate procedures that allow for the proper recording and reporting of hours of absence. N/A B. The School has adequate procedures that allow for the identification and recording of dropouts as defined in the Core Data Manual (Exhibit 6) and the subsequent reporting of those students to the Adult Literacy Hotline and on the June Cycle of Core data. N/A C. School has a set of adequate procedures for following up on the College and Vocational Placement of all of the previous years graduates 180 days after graduation. N/A D. The School has a set of procedures that ensures Advanced Courses and Vocational Courses (approved by the state) are properly identified and reported according to Core Data standards.n/a

18 INTERNAL CONTROL AND COMPLIANCE

19 WESTBROOK & CO., P.C. Certified Public Accountants 749 Driskill Dr. Richmond, Missouri Telephone: (816) KC Line: (816) Fax: (816) 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 To the Board of Directors Hogan Preparatory Academy, Inc. We have audited the financial statements of Hogan Preparatory Academy, Inc. as of and for the year ended June 30, 2009, and have issued our report thereon dated October 13, These financial statements were prepared on the modified cash basis, which is a comprehensive basis of accounting other than U.S. generally accepted accounting principles. 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 the School 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 the School s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the School s internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies in internal control over financial reporting that we consider to be significant deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned function, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the School s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the School s financial statements that is more than inconsequential will not be prevented or detected by the School s internal control. We consider the deficiency described below to be a significant deficiency in internal control over financial reporting. FINANCIAL ACCOUNTING AND REPORTING - Statement on Auditing Standards 112, which is effective for audits of periods ending on or after December 15, 2006, require auditors to communicate control deficiencies whereby material misstatements will not be prevented or detected by the School s internal control. Under SAS 112, the auditor cannot be part of the School s internal control, nor can any audit procedure be considered a compensating control. In prior years, material misstatements have often been identified by auditors during the audit process, and the resulting adjustments were then accepted and posted by the auditee. The auditors then rendered an opinion on the materially correct financial statements. The new audit regulations require that material misstatements in the financial statements for the period under audit should be identified by the School s internal control and not by the auditor. Therefore, the School will need to have management and accounting employees with expertise in financial accounting and reporting. These employees should possess qualifications and training to be able to prepare materially correct financial statements and

20 disclosures in conformity with the comprehensive basis of accounting used by the School. If financial statements are prepared by the auditors or other outside source, then the School must be able to detect any omission of material disclosure or material misstatement of account. We noted that the School does not have the expertise in financial accounting and reporting as required under SAS 112. Internal controls should be designed to prevent, detect and correct misstatements in financial accounting and reporting. The lack of controls could allow misstatements in the financial statements to occur and go undetected. In order to remove this material weakness in the School s internal control, the School would need to hire an accounting firm independent of the auditing process; however, costs would exceed benefits. The School would incur costs for the accounting firm which would need to perform additional procedures in order to prepare materially correct financial statements and disclosures. The only benefit of this action would be to remove this comment from the report as the independent audit process will ultimately result in materially correct financial statements. Response: We do not believe it is cost beneficial to hire additional personnel or outsource this work in order to mitigate this condition. Further, we agree with the auditors comment and see no benefit of this action other than the removal of this comment from this report. SEGREGATION OF DUTIES - During our audit, we noted that the business manager s duties include setting up new employees in the computer system, inputting payroll information, processing direct deposit payroll authorizations, processing accounts payable checks and reconciling bank accounts. The assignment of these duties to the same person does not provide adequate control since the person preparing the payroll and vendor disbursements may also execute payments and reconcile the accounts. We also noted and concur with the additional accounts payable clerk being hired and the changes made in the payroll procedures for the upcoming year. These changes will substantially mitigate the risk; however the opportunity for a fraudulent transaction to occur and go undetected still remains. We recommend the School continue to look at this area and modify controls as needed, if possible and deemed cost beneficial. Response: The School has indicated that with limited office personnel, proper segregation of duties is difficult to achieve, however they will continue to look for avenues to mitigate this exposure. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the School s internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe the significant deficiencies described above are material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the School s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. We noted other matters involving internal control and compliance that we have reported to the administration of the School in a separate letter dated October 13, This report is intended solely for the information and use of the Board of Education, administration, University of Central Missouri, and the Missouri Department of Elementary and Secondary Education and is not intended to be and should not be used by anyone other than these specified parties. October 13,

21 REPORT ON THE ADMINISTRATION'S ASSERTIONS ABOUT COMPLIANCE WITH SPECIFIED REQUIREMENTS OF MISSOURI LAWS AND REGULATIONS To the Board of Directors Hogan Preparatory Academy, Inc. We have audited the administration's assertions, included in its representation letter dated October 13, 2009 that Hogan Preparatory Academy, Inc. complied with the requirements of Missouri Laws and Regulations regarding the operation of a charter school; accurate disclosure by the School's attendance records of average daily attendance, resident membership on the last Wednesday of September, 2008 and the number of students eligible to receive free or reduced price lunches on the last Wednesday of January, As discussed in that representation letter, the administration is responsible for the School's compliance with those requirements. Our responsibility is to express an opinion on the administration's assertions about the School's compliance based on our audit. Our audit was made in accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis evidence about the School s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our opinion does not provide a legal determination on the School's compliance with specified requirements. In our opinion, the administration's assertions that the School complied with the aforementioned requirements for the year ended June 30, 2009, are fairly stated in all material respects. We noted an immaterial instance of noncompliance with the aforementioned requirements that we have reported to the administration of the School in the accompanying Schedule of State Findings This report is intended solely for the information and use of the Board of Directors, administration, University of Central Missouri, and the Missouri Department of Elementary and Secondary Education. It is not intended to be and should not be used by anyone other than these specified parties. October 13,

22 SCHEDULE OF STATE FINDINGS FOR THE YEAR ENDED JUNE 30, 2009 ATTENDANCE Attendance statistics are among the primary numbers that drive school revenues. For this reason, we spend a significant amount of time auditing this area. During our audit, we noted the summary Core Data report was not reconciled to the actual attendance data generated from the SIS software after the School uploaded the data using MOSIS. We recommend that the School review its procedures for attendance reporting and revise them as necessary to increase the accuracy of its reporting to DESE. As a result of our audit, Core Data has been corrected