RUSHMORE ACADEMY (A COMPONENT UNIT OF MARION …

[Pages:25]RUSHMORE ACADEMY (A COMPONENT UNIT OF MARION CITY

SCHOOL DISTRICT) MARION COUNTY, OHIO

AUDIT REPORT

FOR THE YEAR ENDED JUNE 30, 2016

Board of Education Rushmore Academy 420 Presidential Drive, Suite B Marion, Ohio 43302

We have reviewed the Independent Auditor's Report of the Rushmore Academy, Marion County, prepared by Charles E. Harris & Associates, Inc., for the audit period July 1, 2015 through June 30, 2016. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. The Rushmore Academy is responsible for compliance with these laws and regulations.

Dave Yost Auditor of State April 7, 2017

88 East Broad Street, Fifth Floor, Columbus, Ohio 43215-3506

Phone: 614-466-4514 or 800-282-0370

Fax: 614-466-4490



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RUSHMORE ACADEMY (a Component Unit of Marion City School District)

MARION COUNTY AUDIT REPORT For the year ended June 30, 2016

Table of Contents

Title

Page

Report of Independent Auditors.................................................................................................................1-2

Management's Discussion and Analysis....................................................................................................3-5

Statement of Net Position ? Cash Basis...............................................................................6

Statement of Cash Receipts, Disbursements and Changes in Net Position? Cash Basis .......................7

Notes to the Basic Financial Statements .................................................................................................. 8-14

Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards........... ....................... 15-16

Schedule of Findings................................................................................................................................... 17

Corrective Action Plan................................................................................................................................ 18

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Charles E. Harris & Associates, Inc.

Certified Public Accountants

Rockefeller Building 614 W Superior Ave Ste 1242 Cleveland OH 44113-1306 Office phone - (216) 575-1630 Fax - (216) 436-2411

REPORT OF INDEPENDENT AUDITORS

Rushmore Academy Marion County 420 Presidential Drive, Suite B Marion, Ohio 43302

To the Board of Directors:

Report on the Financial Statements

We have audited the accompanying cash-basis financial statements of the Rushmore Academy, Marion County, Ohio (the Academy), a component unit of the Marion City School District, as of and for the year ended June 30, 2016 and the related notes to the financial statements, which collectively comprise Academy's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for preparing and fairly presenting these financial statements in accordance with the cash accounting basis Note 1 describes. This responsibility includes determining that the cash accounting basis is acceptable for the circumstances. Management is also responsible for designing, implementing and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States' Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the Academy's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the Academy's internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management's accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the cash financial position of Rushmore Academy, Marion County Ohio as of June 30, 2016, and the changes in cash financial position for the year then ended in accordance with the accounting basis described in Note 1.

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Rushmore Academy Marion County Report of Independent Auditors Page 2 Accounting Basis Ohio Administrative Code ? 117-2-03(B) requires the Academy to prepare its annual financial report in accordance with accounting principles generally accepted in the United States of America. We draw attention to Note 1 of the financial statements, which describes the basis applied to these statements. The financial statements are prepared on the cash basis of accounting, which is a basis other than generally accepted accounting principles. We did not modify our opinion regarding this matter. Other Information We applied no procedures to Management's Discussion & Analysis as listed in the table of contents. Accordingly, we express no opinion or any other assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2016 on our consideration of the Academy's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Academy's internal control over financial reporting and compliance.

Charles E. Harris & Associates, Inc.

December 15, 2016

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RUSHMORE ACADEMY

(A Component Unit of Marion City School District) MARION COUNTY, OHIO

Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2016

Unaudited

The management's discussion and analysis of Rushmore Academy's ("the Academy") financial performance provides an overall review of the Academy's financial activities for the fiscal year ended June 30, 2016. The intent of this discussion and analysis is to look at the Academy's financial performance as a whole; readers should also review the financial statements and notes to the basic financial statements to enhance their understanding of the Academy's financial performance.

HIGHLIGHTS

The Academy began operations in July 2009. The Academy is a standalone brick and mortar school which served 87 students during fiscal year 2010. In fiscal year 2016, the Academy's student population increased to 280. The Academy hires and provides specialized training for its entire staff.

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report is presented in a format consistent with the presentation requirements of Governmental Accounting Standards Board Statement No. 34, as applicable to the Academy's cash basis of accounting.

Report Components

The statement of net position and the statement of activities provide information about the cash activities of the Academy as a whole. The notes to the financial statements are an integral part of the Academy's government-wide financial statements and provide expanded explanation and detail regarding the information reported in the statements.

Basis of Accounting

The basis of accounting is a set of guidelines that determine when financial events are recorded. The Academy has elected to present its financial statements on a cash basis of accounting. This basis of accounting is a basis of accounting other than generally accepted accounting principles. Under the Academy's cash basis of accounting, receipts and disbursements are recorded when cash is received or paid. As a result of using the cash basis of accounting, certain assets and their related revenues (such as accounts receivable) and certain liabilities and their related expenses (such as accounts payable) are not recorded in the financial statements. Therefore, when reviewing the financial information and discussion within this report, the reader must keep in mind the limitations resulting from the use of the cash basis of accounting.

DRAFT

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12/15/2016

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