L. Todd Fisher, CPA Accountant s Report January 18, 2007 18302 Wild Lilac Trail Humble, TX 77346 office: 281-852-1119 fax: 281-812-4789 todd@toddfishercpa.com Attn: Board of Directors 16202 Old Humble Road Humble, TX 77396 Member American Institute of Certified Public Accountants Texas Society of Certified Public Accountants Dear Board of Directors: I have compiled the accompanying balance sheet of (a nonprofit organization) as of December 31, 2007, and the related statements of income and expense and cash flows for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user s conclusion about the Organization s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. L. Todd Fisher, CPA
Balance Sheet As of December 31, 2007 Dec 31, 07 ASSETS Current Assets Checking/Savings Petty cash 2,500 Merchant account (3578) 5,156 Operating (0224) 89,217 Fundraising (9986) 32,966 Designated (4022) 444 Savings (1695) 50,527 Total Checking/Savings 180,810 Accounts Receivable Accounts Receivable 470,597 Total Accounts Receivable 470,597 Other Current Assets Prepaid Insurance 14,156 Undeposited Funds 334 Total Other Current Assets 14,489 Total Current Assets 665,897 Fixed Assets Fixed Assets Accumulated Depreciation -172,102 Land 1,584,142 Furniture 2,321 Buildings and Leasehold Improve 393,175 Computer Equipment 31,454 Office Equipment/Furniture 29,989 School Equipment 60,633 Total Fixed Assets 1,929,614 Total Fixed Assets 1,929,614 TOTAL ASSETS 2,595,511 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 1,600 Total Accounts Payable 1,600 Other Current Liabilities Payroll Liabilities -44 N/P - S & S #1 - ST 15,973 N/P - S & S #2 - ST 1,366 N/P - S & S #3 - ST 1,850 N/P - Billy Smith - ST 3,360 N/P - Tatonka - ST 9,162 Total Other Current Liabilities 31,667 Total Current Liabilities 33,266 Long Term Liabilities N/P- S & S #1 - LT 1,012,039 N/P- S & S #2 - LT 180,530 N/P- S & S #3 - LT 244,504 N/P - Billy Smith - LT 63,669 N/P - Tatonka - LT 17,519 Total Long Term Liabilities 1,518,261 Total Liabilities 1,551,527 See Accountant's Report
Balance Sheet As of December 31, 2007 Dec 31, 07 Equity Net assets 587,668 Net Income 456,315 Total Equity 1,043,983 TOTAL LIABILITIES & EQUITY 2,595,511 See Accountant's Report
Profit & Loss July through December 2007 Jul - Dec 07 Ordinary Income/Expense Income Tuition and fees Tuition 943,637 Book Fees 54,780 Meal fees 40,300 Extended Care 15,143 Lab Fees 7,140 Registration Fees 6,900 Testing Fees 1,625 Uniforms 1,442 Returned Check Fee 395 Library fees 14 Total Tuition and fees 1,071,375 Fundraising Income Magazines 19,092 Candles 16,838 Cheerleaders 11,515 Class of 2008 8,345 Homecoming 5,963 Spiritual Emphasis Retreat 4,125 Class of 2009 3,710 PTF 3,475 Fundraising Income - Other 708 Teacher's Fund 20 Total Fundraising Income 73,791 Contributions Unrestricted 9,247 Temp Restricted - Lewis Fdn 3,500 Gifts in kind 500 Total Contributions 13,247 Miscellaneous Income 6,897 Yearbook 6,255 Vending income Vending income - Other 1,499 Kroger Share Card 478 Coca-Cola 309 Total Vending income 2,286 Sports Income 221 Total Income 1,174,072 Expense Compensation expense Compensation expense - Other 297,475 Payroll taxes 27,794 Contract Labor 12,468 Substitute wages 3,722 Salaries and wages 3,684 Employee Gift 180 Total Compensation expense 345,324 Administrative expenses Interest Expense 34,674 Computer Expenses Computer Expenses - Other 29,568 Software 3,220 Total Computer Expenses 32,788 See Accountant's Report Page 1
Profit & Loss July through December 2007 Jul - Dec 07 Depreciation 22,705 Accountant & Legal Fees 13,250 Liability Insurance 10,111 Administrative expenses - Other 7,131 Returned checks 5,311 Bad Debt Expense 4,890 Office Supplies 3,533 Copier Expenses 2,221 Credit Card Fees 929 Printing 730 Dues & subscriptions 720 Bank Fees 673 Postage and Fax 425 Total Administrative expenses 140,090 School Expenses Curriculum 52,927 Food and supplies 27,291 Refunds Refunds - Other 7,050 Registration 1,550 Book Fees 150 Total Refunds 8,750 Conferences 7,915 School Expenses - Other 6,164 Teacher Supplies 4,128 Scholarships & benevolence 4,100 Yearbook 3,810 Spiritual Emphasis Retreat 3,783 Activities Expense 2,524 Medical 1,502 Library Materials 615 Graduation Expenses 450 Academic Expense 411 Advertising 116 Staff Support Materials 24 ACSI Fees -45 Total School Expenses 124,464 Facilities expenses Electricity 17,065 Grounds Maintenance 7,502 Cleaning Service 6,786 Property taxes 6,114 Classroom Equipment 3,970 Sewer and Water 3,368 Telephone 2,937 Building Maintenance 1,902 Facilities expenses - Other 1,460 Natural Gas 685 Cleaning Supplies 609 Trash Removal 443 Mortgage 0 Building Lease 0 Total Facilities expenses 52,840 See Accountant's Report Page 2
Profit & Loss July through December 2007 Jul - Dec 07 Fundraising Magazines 10,525 Candles 8,561 Cheerleaders 8,079 Class of 2008 6,325 Homecoming 5,294 Class of 2009 Expense 1,297 PTF 1,084 Golf Tournament 315 Fundraising - Other 209 Total Fundraising 41,688 Sports Athletic Equipment 5,086 Referee and Court usage fees 4,068 Sports - Other 1,053 Sports Banquet 267 Total Sports 10,474 Miscellaneous 2,877 Reconciliation Discrepancies 0 Total Expense 717,757 Net Ordinary Income 456,315 Net Income 456,315 See Accountant's Report Page 3
Statement of Cash Flows July through December 2007 Jul - Dec 07 OPERATING ACTIVITIES Net Income 456,315 Adjustments to reconcile Net Income to net cash provided by operations: Accounts Receivable -297,353 Prepaid Insurance -14,156 Accounts Payable -17,781 Staff Tuition Holding Account 190 Payroll Liabilities -3,622 N/P - S & S #1 - ST 2,136 N/P - S & S #2 - ST 982 N/P - S & S #3 - ST 1,330 N/P - Billy Smith - ST 131 N/P - Tatonka - ST 383 Net cash provided by Operating Activities 128,556 INVESTING ACTIVITIES Fixed Assets:Accumulated Depreciation 22,705 Fixed Assets:Buildings and Leasehold Improve -0 Fixed Assets:Office Equipment/Furniture -15,694 Fixed Assets:School Equipment -29,850 Net cash provided by Investing Activities -22,840 FINANCING ACTIVITIES N/P- S & S #1 - LT -12,098 N/P- S & S #2 - LT -982 N/P- S & S #3 - LT -1,330 N/P - Billy Smith - LT -1,713 N/P - Tatonka - LT -4,888 Net cash provided by Financing Activities -21,012 Net cash increase for period 84,705 Cash at beginning of period 96,439 Cash at end of period 181,144 See Accountant's Report
Comparative Profit Loss Jul 2007 - Dec 2007 Operating activities Income Dec 2007 Jul 2007 - Dec 2007 Actual Budget Diff Actual Budget Diff Contributions $ 6,150 $ - $ 6,150 $ 13,247 $ - $ 13,247 Fundraising 1,983 50 1,933 73,791 33,500 40,291 Tuition and fees 12,464 22,948 (10,484) 1,071,375 1,071,284 91 Sports and other 250 580 (330) 15,659 6,350 9,309 Total income 20,848 23,578 (2,730) 1,174,072 1,111,134 62,938 Expense Fundraising 1,335 - (1,335) 41,688 17,000 (24,688) Administrative 13,829 2,650 (11,179) 140,090 96,574 (43,516) Compensation 75,031 80,000 4,969 345,324 343,063 (2,261) Facilities 4,537 18,410 13,873 52,840 95,617 42,777 Academics 11,786 5,708 (6,078) 124,464 115,502 (8,962) Sport and other 1,930 1,650 (280) 13,351 16,600 3,249 Total expense 108,448 108,418 (29) 717,757 684,356 (33,401) Net income $ (87,600) $ (84,840) $ 2,760 $ 456,315 $ 426,778 $ (29,537) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 3,820-3,820 22,705-22,705 (Increase) / Decrease in accounts receivable 67,285 67,285 - (297,353) (297,353) - (Increase) / Decrease in prepaid insurance 2,022 - - (14,156) - - Increase / (Decrease) in accounts payable 256-256 (17,781) - (17,781) Increase / (Decrease) in payroll liabilities (12,322) - (12,322) (3,432) - (3,432) Increase / (Decrease) in short-term notes payable - - - 4,962 4,962 - Net cash provided by operating activities (26,539) (17,555) (8,984) 151,260 134,387 16,873 Investing Activities (Increase) / Decrease in school equipment - - - (29,850) (30,000) 150 (Increase) / Decrease in office equipment - - - (15,694) (17,000) 1,306 - - - (45,544) (47,000) 1,456 Financing Activities Increase / (Decrease) in long-term notes payable - - - (21,012) (21,012) (0) Net cash increase/ (decrease) for period (26,539) (17,555) $ (8,984) 84,704 66,375 $ 18,329 Cash at beginning of period 207,683 96,440 Cash at end of period $ 181,144 $ 181,144 See Accountant's Report