RUSHMORE ACADEMY MARION COUNTY REGULAR …

[Pages:27]RUSHMORE ACADEMY MARION COUNTY

REGULAR AUDIT

FOR THE YEAR ENDED JUNE 30, 2012

RUSHMORE ACADEMY MARION COUNTY

TABLE OF CONTENTS

TITLE

PAGE

Independent Accountants' Report................................................................................................................. 1

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

Basic Financial Statements:

Statement of Net Assets ........................................................................................................................ 7

Statement of Revenues, Expenses, and Change in Net Assets ........................................................... 8

Statement of Cash Flows ....................................................................................................................... 9

Notes to the Basic Financial Statements .................................................................................................... 11

Independent Accountants' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards ...................................................................................... 19

Independent Accountants' Report on Applying Agreed-Upon Procedures................................................. 21

THIS PAGE INTENTIONALLY LEFT BLANK

INDEPENDENT ACCOUNTANTS' REPORT

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

To the Board of Directors:

We have audited the accompanying basic financial statements of 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, 2012, as listed in the table of contents. These financial statements are the responsibility of the Academy's management. 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 the Comptroller General of the United States' Government Auditing Standards. Those standards require that we plan and perform the audit to reasonably assure 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 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 financial position of Rushmore Academy, Marion County, Ohio, as of June 30, 2012, and the changes in its financial position and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2012, 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. While we did not opine on the internal control over financial reporting or on compliance, that report describes the scope of our testing of internal control over financial reporting and compliance and the results of that testing. That report is an integral part of an audit performed in accordance with Government Auditing Standards. You should read it in conjunction with this report in assessing the results of our audit.

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

Phone: 614-466-3402 or 800-443-9275

Fax: 614-728-7199



1

Rushmore Academy Marion County Independent Accountants' Report Page 2 Accounting principles generally accepted in the United States of America require this presentation to include Management's discussion and analysis, as listed in the table of contents, to supplement the basic financial statements. Although this information is not part of the basic financial statements, the Governmental Accounting Standards Board considers it essential 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 other assurance.

Dave Yost Auditor of State December 18, 2012

2

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, 2012

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, 2012. 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.

FINANCIAL 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 2012, the Academy's student population increased to 154. The Academy hires and provides specialized training for its entire staff.

OVERVIEW OF THE FINANCIAL STATEMENTS

This financial report consists of two parts ? management's discussion and analysis and the basic financial statements. These statements are organized so the reader can understand the financial position of the Academy. Enterprise accounting uses a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the statement of net assets. The statement of net assets represents the basic statement of position for the Academy. The statement of revenues, expenses, and changes in net assets presents increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. The statement of cash flows reflects how the Academy finances and meets its cash flow needs. Finally, the notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided on the basic financial statements.

FINANCIAL ANALYSIS OF THE ACADEMY AS A WHOLE

The Academy is not required to present government-wide financial statements as the Academy is engaged in only business-type activities. Therefore, no condensed financial information derived from governmentwide financial statements is included in the discussion and analysis.

The following tables represent the Academy's condensed financial information for 2012 and 2011 derived from the statement of net assets and the statement of revenues, expenses, and changes in net assets.

Net Assets

Current and other assets Capital assets, Net

Total assets

2012

$794,178 127,233 921,411

2011

$701,457 160,570 862,027

Other liabilities Total liabilities

134,847 134,847

90,005 90,005

Net assets Invested in capital assets Unrestricted

Total net assets

127,233 659,331 $786,564

160,570 611,452 $772,022

DRAFT

- 3 -

1/7/2013

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, 2012

Unaudited

Changes in Net Assets ? The following table shows the changes in net assets for the fiscal year 2012 and

2011:

Change in

Net Assets

2012

2011

Operating Revenues

Foundation Payments

$1,062,007

$774,487

All Other Revenue

1,133

13,068

Total operating revenues

1,063,140

787,555

Operating Expenses Purchased Services Supplies and Materials Depreciation Total operating expenses Operating Income (Loss)

964,409 110,230 41,925 1,116,564 (53,424)

607,818 119,265 33,531 760,614 26,941

Nonoperating Revenues (Expenses) Federal and State Restricted Grants Total Nonoperating Revenues (Expenses)

67,966 67,966

418,082 418,082

Total Change in Net Assets Net Assets Beginning of Year Net Assets End of Year

14,542 772,022 $786,564

445,023 326,999 $772,022

The Academy operates as one business-type enterprise fund; therefore, no analysis of balances and transactions of individual funds are included in the discussion and analysis. The increase in current and other assets reflects an increase in cash and cash equivalents; the Academy received more State foundation monies in fiscal year 2012 due to higher enrollment. This was somewhat offset by a decrease in intergovernmental receivables for amounts due to the Academy for various grants (such as Education Jobs). The decrease in net capital assets and invested in capital assets reflects current year depreciation. The increase in current liabilities reflects increased costs associated with the higher enrollment (services acquired from Marion City School District and TRECA).

BUDGET

Unlike other public schools located in the state of Ohio, community schools are not required to follow budgetary provisions set forth in Ohio Revised Code Chapter 5705.

DRAFT

- 4 -

1/7/2013

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download