D'Arbonne Woods Charter School Inc - Louisiana...D'Arbonne Woods Charter School, Inc. Farmerville,...

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D^Arbonne Woods Charter School, Inc. Farmerville, Louisiana

Financial Report For the Years Ended June 30,2013 and 2012

Under provisions of state law. this report is a public document Acopy of the report has been submitted to the entity and other appropnate public officials The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and. where appropnate, at the office of the pansh clerk of court

Release Date MAR 2 6 201^

D'ARBONNE WOODS CHARTER SCHOOL, INC. Farmerville, Louisiana

Table of Contents

Independent Auditors* Report

Statements of Financial Position

Statements of Activities --

Statements of Cash Flows

Financial Statements

Notes to the Financial Statements

Page

1

3

5

7

8

Supplementary Information

Independent Auditors' Report on Intemal Control Over Financial Reporting and Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance With Govemment Auditing Standards

Schedule ofFindings

Status of Prior Year Findings

17

19

20

I uFFEY, HUFFMAN, RAGSDALE & SOIGNIER

JohnL Luffey,MBA.CPA(1963-2002) Francis I Huffman. CPA Philip A Ragsdale, CPA David Ray Soignier, CPA, MBA, CGMA

(A PROFESSIONAL ACCOUNTING CORPORATION)

CERTIFIED PUBLIC ACCOUNTANTS

John Herman. CPA Lynn Andries, CPA, CGMA Esther Atteberry. CPA Lon Woodard, MBA. CPA. CGMA, CITP

INDEPENDENT AUDITORS' REPORT

Board of Directors D'Arbonne Woods Charter School, Inc. Farmerville, Louisiana

We have audited the accompanying financial statements of the D'Arbonne Woods Charter School (the School), which comprise the statements of financial position as of June 30,2013 and 2012, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accoimting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 fmancial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

1100 North 18th Street Monroe, Louisiana 71201 Tet (318)387-2672 • Fax (318)322-«866 - Website www afutlsen/jcecpafirm com

MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

D'Arbonne Woods Charter School, Inc. Farmerville, Louisiana

entity's intemal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropnateness of accoimting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial positions ofthe School as of June 30, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Reporting Required by Govemment Auditing Standards In accordance with Govemment Auditmg Standards, we have also issued our report dated September 6, 2013, on our consideration of the School's intemal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The puipose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testmg, and do not provide an opinion on intemal control over financial reporting or compliance. That report is an integral part of an audit perfonned m accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audits.

i i C ^ / ( i ^ ^ ^ - ^ - s i ^ - ^ . y s-^f^^B^

(A Professional Accounting Corporation) September 6,2013


Statements of Financial Position

Assets Cash Cash heM for school ^icility construction Funds held by fiscal agent Accounts receivable Grants receivable Unamortized bond issuance cost Land Construction in progress Equipment Land held for sale Accumulated depreciation

Unrestricted

$ 737,466 3,550,090

536,590 4,844

121,796 121,225 473,787 843,206 444,687

55,310 (245,968)

June 30,2013

Temporarily

Restricted

$ - $

-

-

-

-

-

-

-

-

-

-

Total

737,466 3,550,090

536,590 4,844

121,796 121,225 473,787 843,206 444,687

55,310 (245,968)

Total assets

Liabilities and net assets

$ 6,643,033 $ $ 6,643,033

Liabilities Accounts payable School activity funds Payroll liabilities Compensated absences Bond payable

Total habilities

Net assets Unrestricted net assets Temporarily restricted net assets

Total net assets

Total liabilities and net assets

296,116 $ 100

465,690 107,806

5,100,000 5,969,712

$ 296,116 100

465.690 107,806

5,100,000 5,969,712

673,321

673,321

$ 6,643,033 $

The accompanying notes are an integral part of these statements

3

673,321

673,321

$ 6,643,033

Unrestricted

376,208 4,291,010

320,325 10,950

124,592 128,801 473,787

29,000 386,702 55,310

(168,997)

6,027,688

June 30,2012

Temporarily Restricted

$ 6,564 $

-

-

-

-

-

-

-

-

$ 6,564 $

Total

382,772 4,291,010

320,325 10,950

124,592 128,801 473,787 29,000

386,702 55,310

(168,997)

6,034,252

156.374 $ - $ 156,374 3,448 - 3,448

271,853 - 271,853

74,783 - 74,783

5,100,000 - 5,100,000

5,606,458 - 5,606,458

421,230 - 421,230

6,564 6,564

421,230 6,564 427,794

$ 6,027,688 $ 6,564 $ 6,034,252

D'ARBONNE WOODS CHARTER SCHOOL, INC.

Support and revenue State public school funding Federal sources State sources School activity funds

Donations Fundraisers Cost of direct benefit to donors Othermcome

Meal income Donations Othermcome Interest mcome

Total

Net assets released from restnctions

Total support and revenue

Expenses

Program eqjenses Ri^ular programs School admimstratioa Food service Operation and mamtenance of plant Special education programs Pupil transportation Special programs Pupil 5U]q}ort

Other instructional programs Instructional staff services Community services DepreciaUon School activity funds

Management and general Facilities acquisition Business services General administration Central services Fundraising expenses £)ebt sca-viccs - mterest

Total expenses

Increase (decrease) in net assets

Net assets at beginning of year

Net assets at end of year


Farmerville, Louisiana

Statements of Activities

For the Year Ended

Unrestricted

S 4,636,117 $ 339,697

5,155

-

---

92,530 -

14,366 16.296

5,104,161

165,818

June 30,2013 Temporarily

Restricted

$ -•

19,788 61,756

(31,442) 82,921

-26.231

--

159.254

(165,818)

Total

4,636,117 339,697

5,155

19,788 61,756

(31.442) 82.921 92,530 26.231 14,366 16,296

5,263,415

-

5,269.979 (6.564) 5,263,415

1,959,047 123.916 384,208 468.995 204.884 211,156 149.107 119.667 81.762

368.988 5.000

76,971 140.520

4,146 166,935 366.532 128.869

4,935 52.250

5.017.888

252.091

421,230

673.321 $

---------•

---

.

---

--

(6.564)

6,564

$

1,959,047 123.916 384,208 468.995 204.884 211.156 149.107 119,667 81.762

368.988 5.000

76,971 140,520

4.146 166,935 366,532 128.869

4,935 52,250

5,017,888

245.527

427.794

673.321

Unrestricted

3.137,622 $ 424,109

14,387

----

49,333

43,716 42,041

3.711,208

132,053

June 30,2012 Temporanly

Restncted

$ --

4.482 39,456

(22.868) S,300

•

--

29.370

(132.053)

Total

3.137.622 424,109

14,387

4,482 39.456

(22,868) 8,300

49.333

43,716 42,041

3,740.578

-

3.843,261 (102,683) 3,740,578

1,472,444 283.118 316.671 363.745 173.726 131.724 145,488 154,846 57,879

263,255 3.000

80,493 21,982

77,870 150,572 94,372 9.410

51.620 3.852;J15

(8.954)

430,184

421.230 $

-------------

. ---

.

-

(102.683)

109.247

6.564 S

1,472,444 283.U8 316.671 363,745 173.726 131.724 145,488 154,846 57.879

263,255 3,000

80.493 21.982

77,870 150,572 94,372

9,410

51.620 3.852,215

(111,637)

539,431

427.794

D'ARBONNE WOODS CHARTER SCHOOL, INC. Famierville, Louisiana

Statements of Cash Flows

Cash flows f om operating activities

Increase (decrease) in net assets l

Adjmtment to reconcile operating loss to net cash provided by operating activities

Depreciation and amortization Bond amortization

Changes in assets and liabilities Accounts receivable Grants receivable Accounts payable Payroll liabilities

Net cash provided (used) by operating activities

Cash flows from capital and related financing activities

Purchase of land, construction in progress and equipment

Net cash provided (used) by capital and related financing activities

Cash flows ft'om Investing activities

Increase in funds held by fiscal agent

Net cash provided (used) by capital and related financing activities

Net increase (decrease) in cash

Cash at beginning of year

Cash at end of year

For the Year Ended June 30, 2012

(restated) 2013

245.527 $

(872,191)

(872,191)

(216,265)

(111,637)

76.971

7,576

6,106

2,796

136.394

226.860

702.230

80,501

7,577

1,852

150.147

106,947

(231,579)

3,808

(643.483)

(643.483)

(216,245)

(216.265)

(386,226)

4.673,782

4,287,556 $

(216.245)

(855.920)

5.529.702

4,673,782

Supplemental disclosure of cash flow mformation Interest paid 52,250 $ 51.620


7



For the Years Ended June 30,2013 and 2012

1. Summary of SigniHcant Accounting Policies

The D'Arbonne Woods Charter School, Inc. (the School) was granted a Type 2 charter by the Louisiana Board of Elementary or Secondary Education (BESE) to provide ^ucational services in Union Parish to students beginning with the 2009-2010 school year. The cumculum is designed to meet the unique needs of rural, at-risk students. The School served eligible students in kindergarten through ninth grade in the 2012-2013 school year. At its March 9, 2012 meeting the Louisiana State Board of Elementary and Secondary Education approved a material amendment to the School's charter allowing an increase in total enrollment from 323 to 560 students and to add grades nine through twelve beginning with grade nine in the fall of 2012 subject to certain conditions set by the State Superintendent of Education. The School expects the charter to be renewed in September 2013. The School is governed by a seven member board of directors.

A. Financial Reporting

The School follows the guidance of the Not-for-Profit Entities Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958. The School is required to report information regarding its financial position and activities according to three classes of net assets: unrestncted, temporanly restricted and permanently restricted. In addition, the School IS required to present a statement of cash flows. Restricted contributions, for which the restnction is met in the same year, are classified as unrestricted. When both restricted and unrestricted resources are available for use, it is the School's policy to use restncted resources first and then the unrestricted resources.

B. Basis of Accounting

Basis of accountmg refers to when revenues and expenses are recognized in the accounts and reported on the financial statements. The financial statements of the School are prepared on the accrual basis of accounting whereby revenues are recognized when eamed and expenses are recognized when incurred

C Revenues

The School's primary source of fimding is through the Minimum Foimdation Program (MFP) fimded through the State Public School Fund. The School receives funding per eligible student in attendance on October 1 , payable in monthly installments. Adjustments are normally made in the following year.




State and Federal grants are generally on a cost reimbursement basis whereby revenues are recognized when related eligible expenses are incurred

D. Property, Plant, and Equipment

The School has adopted the practice of capitalizing all expenditures for depreciable assets where the unit cost exceeds $500 and the usefiil life exceeds one year. Effective July 1, 2011, the School changed the capitalization policy to $2,000 for all new assets. Fixed assets are recorded at historical cost or estimated historical cost if historical cost is not available Betterments that naturally add to the value of related assets or materially extend the useful lives of assets are capitalized. Normal building maintenance and minor equipment purchases are included as expenses ofthe School

Depreciation of capital assets is calculated usmg the straight-line method over the estimated useful lives ofthe assets. The following are the estimated usefiil lives of the capital assets ofthe School:

Asset Buildings Portable School Building Furmture and Equipment Computer Equipment Buses Software

Usefiil Life (in vears) 30 5

5-7 3

5-10 5

E. Compensated Absences

The School grants all employees of the School a total of ten days of paid sick leave per year. Sick leave may be accumulated from year to year, not to exceed 90 days. Upon retirement or death prior to retirement, the School will pay to the employee or his/her estate for any unused sick leave not to exceed 25 days. In addition, all full-time personnel employed on a twelve month fiscal year basis are entitled to annual leave of ten to fifteen days per year, based upon years of consecutive service. Leave may be accumulated at a rate of five days per year vwth a maximum of twenty days.




F. Income Taxes

The School is recogmzed by the Intemal Revenue Service as a Section 501(c)(3) tax-exempt organization. However, mcome fi-om certain activities not directly related to the School's tax-exempt purpose is subject to taxation as unrelated business income.

G. Investments

Investments are composed of United States Treasury Stnps and Treasury Secunties - State and Local Govemment Series (SLGS) and are earned at fair value. The Financial Accounting Standards Board's Accounting Standards Codification (ASC) Section 820 establishes the fi^mework for measurmg fair value. That firamework provides a fair value hierarchy that priontizes the mputs to valuation techniques used to measure fair value The hierarchy gives the highest pnonty to unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest pnonty to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy imder ASC 820-10 are descnbed as follows:

Level 1 Inputs to the valuation methodology are unadjusted quoted pnces for identical assets and liabilities in active markets that the School has the ability to access;

Level 2 Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in inactive maricets; inputs other than quoted pnces that are observable for the asset or liability; and mputs that are denved principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term ofthe asset or liability.

Level 3 Inputs to the valuation methodology are imobservable and significant to the fair value measurement

The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any mput that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs

The investments held at June 30, 2013, are valued at quoted market prices and other relevant information generated by market transactions at that date, and are

10




considered to be level 1 in the fair value hierarchy.

Fair values for investments are determined by reference to quoted market prices and other relevant information generated by market transactions.

The valuation methodologies used for these items, as well as the general classification of such items pursuant to the fair value hierarchy of ASC Section 820 encompass that mvestments are reported on the basis of quoted market prices.

The methods descnbed above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future value. Furthermore, while the School believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certam financial instruments could result m different fair value measurements within the fair value hierarchy.

H Statement of Cash Flows

For purposes ofthe Statement of Cash Flows, the School considers all investments purchased with an onginal matunty of three months or less to be cash equivalents.

I. Use of Estimates

The preparation of financial statements in conformity with accounting pnnciples generally accepted m the United States of Amenca requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

J. Concentrations

The School received 91% and 85% of its revenues in the years ended June 30, 2013 and 2012 respectively, fix)m the State of Louisiana's Minimum Foimdation Program, m accordance with its charter school contract with the State.

K. Comparability

The comparability of the financial statements between the prior year and the current year is limited. The School added another grade and increased classroom size thus greatiy increasing revenues and expenditures.

11


\ \ Notes to the Financial Statements


L. Reclassifications

Minor reclassifications have been made to the previous year financial statements to make them comparable to the current year presentation.

2. Cash

The School's cash (bank balance) was $4,375,487 and $5,163,825 June 30, 2013 and 2012, respectively. Of these amounts, $250,000 was covered by Federal Deposit Insiuance Corporation and $3,588,897 and $4,593,500 were unsecured A complete breakdown of cash is as follows*

Bank Balance (secured)

Bank Balance

(unsecured)

Bank Balance (total)

Book Balance

June 30.2012

Cash Cash held for school facility construction

June 30,2013

Cash Cash held for school facility construction

$ 250.000 $ 302.490 $ 552.490 $ 382,772

- 4,291.010 4.291.010 4.291,010

$ 570325 $ 4,593,500 $ 5.163.825 $ 4,673.782

$ 250.000 $ 38,807 $ 288,807 $ 200,876

- 3,550,090 3,550,090 3,550,090

$ 786,590 $ 3.588,897 $ 4,375.487 $ 4,287,556

3. Investments Held By Fiscal Agent

(Quarterly cash deposits are made by the School to a fiscal agent to be held in trust for the repayment of the School's Qualified School Construction Bond when the full principal amount comes due at matunty on December 15, 2029. The balances of fiinds held by the agent on behalf of the School of $536,590 and $320,325 at June 30, 2013 and 2012, respectively consist of secunties issued or guaranteed by the U. S. government Investments m U. S Treasury securities were as follows*

12




June 30,

U. S. Treasury Strips $ Treasury Securities - State

and Local Govemment Series - (SLGS) $

2013 119,052

417,538 536,590

$

$ ~

2012 68,424

251,901 320,325

For the years ended June 30,2013 and 2012, the School's investments (including gains and losses on investments bought, sold and held during the year) appreciated (depreciated) in value as follows'

Interest income (Thange in market value Change in value of Investments Held By Fiscal Agent

$

$

June 30, 2013

8,990 $ (5,860)

3,130 $ r.'rs

2012 4,039

14,887

18,926

4. Grants and Other Receivables Grants receivables are as follows:

June 30, June 30, Grant 2013 2012 Tide I IDEA Part B Titien State (jrants Total _

$62,363 56,951 2,482

-

$121,796 •• -1-.SBS =:

$92,646 18,645 3,434 9,867

$124,592

The other receivables are compnsed pnmanly of various refiinds, commissions and student lunch balances. The School expects to collect substantially all outstanding balances and, therefore, does not include an estimate for allowance for doubtful accounts.

5. School Activity Funds School Activity Funds are monies collected through dues, fundraisers, admissions or other money generating activity by an orgamzational unit withm the School. It also includes donations fi*om outside sources when such donation is made for a specific or

13




restncted purpose. These momes are kept separate from govemmental monies provided for regular instructional programs or facilities

Any School Activity Funds collected for a specific purpose are considered temporanly restricted imtil such funds are spent unless eamed and spent dunng the same period Refer to Note 10.

6. Land and Construction in Progress In August 2011, the School purchased 21.65 acres of land at a cost of $55,310 for the purpose of constructmg its school facility Subsequent to the purchase it was determined that this tract of land was not suitable for construction ofthe school. The School has approved advertising the land for sale and it is classified as Land Held for Sale on the finanaal statements.

In March 2012, die School purchased 41.55 acres of land at a total cost of $473,387 for the purpose of constructing its school facility. Work on the construction of the school facility is classified as Construction in Progress.

7. Equipment

Depreciation expense totaled $76,971 and $80,493 for the years ended June 30, 2013 and 2012 respectively. All assets acquired with Louisiana Department of Education funds are owned by the School while used for the purpose for which they were purchased. The Louisiana Department of Education, however, has a reversionary interest in these assets. Should the charter not be renewed, tide in any assets purchased with those funds will transfer to the appropnate agency.

8. Retirement Plan

Certain employees of the School participate in the Teachers' Retirement System of Louisiana (TRSL) The TRSL is a cost-sharmg, multiple-employer defined benefit pension plan administered by a separate board of trustees. Pertinent information relative to the plan follows Plan Description* The TRSL provides retirement benefits as well as disability and survivor benefits. Ten years of service credit are required to become vested for retirement benefits, and five years to become vested for disability and survivor benefits. Benefits are established and amended by state statute. The TRSL issues a publicly available financial report that includes financial statements and required supplementary information for the TRSL. That report may be obtained by writmg to the Teachers' Retirement System of Louisiana, P O Box 94123, Baton Rouge, LA 70804-9123

14




Funding Policy Plan members are required to contnbute 8% of their annual covered salary. The School is required to contribute at an actuarially determined rate. The current rate is 15.5% of annual eligible covered payroll. Member contributions and employer contiibutions for the TRSL are established by state law, and rates are established by the Public Retirement System's Actuanal Ck)mmittee. The School's contiibutions to the plan were $517,902 and $381,323 for the years ended June 30, 2013 and 2012 respectively, which is equal to the required contiibution.

9. Bond Payable The School issued a $5.1 million Qualified School Constiruction Bond dated December 21, 2010 bearing interest at 1.0% for the purpose of constructing a school facility. Interest is payable quarterly with the full pnncipal amount due at maturity on December 15, 2029

10. Temporarily Restricted Net Assets Net assets in the amount of $165,818 and $132,053 were released from restrictions during the years ended June 30, 2013 and 2012, respectively. Of diese, $133,023 and $21,982 were School Activity Funds eamed and expended. $6,564 was School Activity Funds received in 2012 but spent in 2013. The remaining $824 and $26,231 released fh)m restrictions were donations in the General Fund received and expended dunng the period.

June 30.2012

Walton Grant

School Acuvity Funds

DonaUons

Total Temporarily Restncted Net Assets

June 30,2013

School Activity Funds

Donations

Total Temporanly Restncted Net Assets

S

$ ,

$

$

Beginning

Balance

109,247

-

_

109,247

6,564

_

6.564

$

$ !

$

$

Received

-

28,546

824

29,370

133,023

26,231

159,254

$

$

$

$

Released

(109,247)

(21,982)

(824)

(132,053)

(139,587)

(26,231)

(165,818)^

$

$ a

$

$

Ending

Balance

-

6.564

_

6,564

-

_

15




11. Restatement

Beginning cash balance on the Statement of Cash Flows for the year ended June 30, 2012 has been reduced by $104,080 which was the Investments Held by Fiscal Agent at that date. The cash balance as of June 30, 2012 has also been reduced by $216,245 which was the increase in investments held by fiscal agent dunng the year ended Jime 30, 2012. Funds held by fiscal agent were included m the cash balances in 2012 but were pnmanly comprised of investments and therefore have been restated to Investments Held by Fiscal Agent.

12. Uncertain Income Taxes

The School has adopted the provisions of FASB ASC 740 Accoimting for Uncertainty m Income Taxes. The implementation of this topic had no impact on the statement of financial position or statement of activities.

13. Subsequent Events

Management has evaluated subsequent events through the date that the financial statements were available to be issued, August 9, 2013, and determined that two events occurred that requires disclosure.

Dunng the month of July, the Board President and one other Board Member resigned.

On August 1, 2013, the School signed a Letter of Intent to Meet Conditions of a United States Department of Agriculture Rural Development loan not to exceed $18,000,000.

16

I UFFEY, HUFFMAN, BAGSDAIE & SOIGNIER



John L Luffey. MBA. CPA (1953-2002) Francis I Huffman, CPA Philip A Ragsdale. CPA David Ray Soignier, CPA. MBA

John Herman, CPA Lynn Andries, CPA Esther Atteberry, CPA Lon Woodard. MBA. CPA

INDEPENDENT AUDITOR'S 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 D'Arbonne Woods Charter School, Inc. Farmerville, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contmned in Government Auditing Standards issued by the Comptroller General of the United States, the fmancial statements of D'Arbonne Woods Charter School, Inc (the School), which comprise the statement of financial position as of June 30, 2013, and the related statements of activities, and cash fiows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated September 6,2013.

Intemal Control over Financial Reporting In planning and perfomiing our audit ofthe financial statements, we considered the School's intemal control over financial reporting (intemal control) to determine the audit procedures that are appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness ofthe School's intemal control.

A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the nonnal course of performing their assigned fimctions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement of the entity's fmancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

Our consideration of intemal control was for the limited puipose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control that might be material weaknesses or sigmficant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identity any deficiencies that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified

1100 North 18th Street Monroe, Louisiana 71201 Tel (318)387-2672 • Fax (318)322-6866 • Website wwwafullservtoecpafirmcom

MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 17


We did identity certain deficiencies in intemal control, described in the accompanying schedule of findmgs as finding 13-01 that we consider to be significant deficiencies.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the School's financial statements are firee from material misstatement, we perfonned tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a dnect and material eifect 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 or other matters that are required to be reported under Government Auditing Standards.

We noted certain other matters that we reported to management of D'Arbonne Woods Charter School in a separate letter dated September 6,2013.

School's Responses to Findings The School's responses to the finding identified in our audit are described in the accompanying schedule of findings. The School's responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe orgamzation's intemal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School's intemal control and compliance. Accordingly, this communication is not suitable for any other purpose.

This report is intended solely for the infonnation and use of management ofthe School, others within the entity, federal awarding agencies and pass-through entities, and other entities granting fimds to the School and the Legislative Auditor for the State of Louisiana and is not intended to be and should not be used by anyone other than these specified parties. However, under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

(A Professional Accounting Corporation)

September 6,2013

18

D'ARBONNE WOODS CHARTER SCHOOL, INC. Farmerville, LA

Schedule ofFindings For the Year Ended June 30,2013

13-01 Personnel and Payroll (First reported in 2011)

Finding For the year ended June 30,2013 four employees were paid a total of approximately $4,100 over what was authori2:ed in the board approved pay scale. These employees were overpaid in a prior year but their 2013 contracts were renewed at rates above the approved pay scale. The education level and/or experience levels were incorrectiy classified for pay purposes for five employees resulting in underpayments totaling approximately $6,400.

Ten of twenty-nine (34%) time-off requests reviewed were not approved by a supervisor. In addition, there are no written policies or procedures concerning attendance

Recommendation Employees should be paid as appropriate for their position, education, experience and hours worked based upon the board approved pay scale. Written policies and procedures on attendance should be implemented and enforced.

Management's Response We have reviewed all employees' personnel files to ensure that their years of teaching experience and degrees eamed have been updated and that their years of teaching experience agree to the years they have been given credit for in their 2013-2014 contracts.

We currentiy have informal procedures for attendance and the approval process for leave. We will develop these mformal procedures into formal procedures for the Board to approve as policy.

19


Status of Prior Year Findings For the Year Ended June 30,2013

The following is a summary of the status of the prior year findings reported in the Luffey, Huf&nan, Ragsdale & Soignier (APAC) audit report dated November 9, 2012 covering the examination of the financial statements of the D'Arbonne Woods Charter School, Inc. (the School) as of and for the year ended June 30,2012.

12-01 Intemal Controls

Finding Intemal control is a process designed to provide reasonable assurance about the achievement of the entity's objectives with regard to the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Our audit discovered significant deficiencies in the design and implementation of intemal control. For the year ended June 30, 2012, the School did not have sufficient controls to ensure that School fimctions were handled appropriately.

Status The Board has adopted procedures for the receipt and recording of receipts in the accounting records. The Business Manager is reconciling bank accounts monthly. Monthly financi^ statements, including budget-to-actual comparison, are being presented monthly to the Board and the Finance Committee. The Board has not developed a fonnal/written plan to eliminate deficit spending in previous years The Board annually adopts a balanced budget and tries to stay within the budgeted amounts. The General Fund had an excess of revenues over expenditures of for the 2012-13 fiscal year and an unrestricted fimd balance.

12-02 Personnel and Payroll

Finding Compensated absences were inaccurate, teachers were overpaid, the policies and procedures did not address payroll processing, merit pay was not provided for in contracts and not all employees are documenting their daily attendance.

Status The 2012-13 school food service catering contract was ^proved by the Board and was reviewed by the Board's attomey. The 2012-13 compensated absences calculation was reviewed to ensure that the prior year balances agreed to the 2011-12 audited balance, salaries were compared to contract amounts and leave taken and used was obtained fix)m the payroll records. We have implemented controls over payroll to ensure that employees' pay is adequately documented. We are in the process of reviewing and updating our personnel records to ensure that the employee's files contain adequate documentation. We are in the process of reviewing all employees' leave

20

D'ARBONNE WOODS CHARTER SCHOOL, INC. Fannerville, LA


records to ensure that the leave reported in the payroll system is accurate. We have submitted request for confirmation to all employee's previous employer for all leave transferred in from other systems. We have recentiy purchased a time and attendance system to help keep attendance records. The new system will interface with the payroll software for all leave.

12-03 Contributions and Fundraisers

Finding The School follows the guidance ofthe Not-for-Profit Entities Topic ofthe Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958 which differentiates revenues eamed from contributions separate from those eamed as part of operations. During the audit year, the School did not differentiate monies contributed as compared to those from operating sources. In addition, there was no accounting of the revenues eamed from several fundraisers or the associated cost of benefits to donors. All contributions were recorded in miscellaneous revenue, ofren without appropriate designation as contributions.

Status The Board has approved procedures for conducting fundraisers. All fundraisers must be approved by the Executive Director prior to conducting the fimdraiser. These procedures also require that a recap of each fundraiser be completed. From this recap, the fimdraiser is recorded m the accounting records reflecting revenue generated from the fund raiser, fundraiser expenses, and cost of benefits to donors.

12-04 Debit/Credit Cards

Finding Transactions conducted with debit / credit cards (to include gas cards) were not appropriately documented, there were no associated written policies and procedures and there was no evidence that any ofthe bank statements were reviewed for approval ofthe debit card purchases, including supporting documentation.

Status The Board has adopted policies and procedures for the use and approval process of debit card purchases and for the recording of the transactions in the accounting records. Debit card purchases follow the same approval process and documentation as any other expenditure. The Board has not adopted formal procedures for the use and approval of the fuel card. We do not feel that formal written procedures are necessary as the fiiel card can only be used in one place to purchase fiiel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval ofthe fuel credit card.

21


Status of Prior Year Fmdings For the Year Ended June 30,2013

12-05 Policies and Procedures

Finding Written comprehensive policies and procedures are necessary for continuity and success of the School. The policies and procedures currently in place are repetitive in some areas and incomplete or nonexistent in other areas. Policies and procedures are not noted as to whether Board approved, date of such approval nor date of implementation. In addition, various policies and procedures in place are not being followed.

Status The Board has adopted policies and procedures for budgeting, purchasing, disbiusements, receipts, and contracts. As previously stated, the Board has not adopted formal written procedures for the use and approval of the fuel credit card but has implemented informal procedures. Travel requests for reimbursement are being reviewed prior to payment to ensure that proper approval and documentation have been included. The Board has adopted procedures for the processing of payroll and time and attendance records.

Statuses of exceptions from additional Agreed-Upon Procedure engagement

Financial Management

Exception: Management was not presented with timely and accurate montfily financial statements, including budget-to-actual comparisons on funds ofthe entity, durmg the year imder examination.

Status: Management of the School Board was provided financial data throughout the year at each monthly finance meeting to include cash balances, outstanding invoices, checks issued during each month, grant reimbursements received during the period and outstanding reimbursements, and any other data requested by the committee. We provide budget vs actual financial statements to the Fmance Committee and the Board

Exception: Management had no formal/written plan to eliminate the deficit spending during the period.

Status: We closely monitor our expenditures to help ensure they do not exceed revenue and are currentiy budgeting a surplus.

22


Status of Prior Year Findings For die Year Ended June 30,2013

Exception: No such written policies and procedures were in place for the period.

Status: The Board has adopted policies related to purchasing, disbursements, and receipts. We are currently following Louisiana Revised Statutes 39:1301-1315, the Louisiana Local Govemment Budget Act. We implemented a formal policy in accordance with the provisions of the Budget Act.

Credit Cards

Exception: No such written policies and procedures were in place for the period.

Status: A debit card policy has been adopted by the Board. We do not feel that formal written procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for die use and approval ofthe fiiel credit card.

Exception: Ofthe 43 purchases made with the debit card that we reviewed, 13 purchases had no supporting documentation ^^fetsoever, to include an original itemized receipt Of the 16 purchases made with the gas card that we reviewed, 10 were not supported by an original itemized receipt.

Status: The Board has adopted a debit card policy. The Business Office is monitoring debit card purchases to ensure that purchases are in accordance with Board policy and they are properly authorized, accounted for, and documented.

Exception: Of the 43 purchases made with the debit card that we reviewed, 21 did not document the business/public purpose. Ofthe 16 purchases made with the gas card that we reviewed, 13 did not document the business/public purpose.

Status; The Board has adopted a debit card policy. The policy will be amended to require the purchase requisition to include a purpose ofthe item to be purchased. We do not feel that formal written procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fuel was charged on the fiiel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval ofthe fuel credit card.

Exception: No such written policies and procedures were in place for credit and debit cards for the period.

Status: The Board has adopted a policy for debit card purchases. The policy requires that a purchase requisition be completed and approved prior to the purchase.

23



Exception: No such written policies and procedures were in place conceming purchasing for the period.

Status: The Board has adopted a debit card policy for purchases. The policy has established thresholds and guidelines for use ofthe debit card. We do not feel that formal written procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval ofthe fuel credit card.

Exception: Of the 43 purchases made with the debit card that we reviewed, we were unable to determine if 14 were for an appropriate and necessary business purpose Ofthe 16 purchases made with the gas card that we reviewed, there was no way to discern from the documentation provided whether any ofthe purchases were for an appropriate and necessary business purpose.

Status: The Board has adopted a debit card policy. The policy will be amended to require the purchase requisition to include a purpose ofthe item to be purchased. We do not feel that formal vmtten procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval ofthe fiiel credit card

Exception: Ofthe 43 purchases made with the debit card that v/e reviewed, 13 purchases had no supporting documentation whatsoever, to include an original itemized receipt. However, we did not determine that any of the remaining 30 transactions were for personal purposes. Of the 16 purchases made with the gas card that we reviewed, we were unable to determine who had made the purchase or the purpose for the purchase.

Status: The Board has adopted a debit card policy. The policy will be amended to require the purchase requisition to include a purpose ofthe item to be purchased. We do not feel that formal written procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fiiel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval ofthe fuel credit card.

Exception: Ofthe 43 purchases made with the debit card that we reviewed, we were unable to determine if 13 were travel related. Of the 16 purchases made with the gas card that we reviewed, there was no way to discem fijom the documentation provided who made the purchase and, therefore, no way to determine if there were any duplications of expenses.

Status: The Board has adopted a debit card policy. The policy will be amended by January 31, 2013, to require that travel expenses paid by the debit card be compared to the persons travel reimbursement form. We do not feel that formal written procedures are necessary as the fiiel

24

D'ARBONNE WOODS CHARTER SCHOOL, INC, Farmerville, LA

Status of Prior Year Findings For die Year Ended June 30, 2013

card can only be used in one place to purchase fiiel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year However, we will adopt written procedures for the use and approval of the fiiel credit card. The board has adopted a travel policy that prohibits the use of school board purchased fuel being used in a personal vehicle.

Exception: There is no evidence that any ofthe bank statements were reviewed for approval of the debit card purchases, including supportmg documentation.

Status: The Board has adopted a debit card policy for purchases. Debit card purchases are being reviewed by the Business Office to determine that proper purchasing procedures were followed. We do not feel that formal wntten procedures are necessary as the fuel card can only be used in one place to purchase fuel and only $2,688 of fuel was charged on the fuel card for the 2012-13 fiscal year. However, we will adopt written procedures for the use and approval of the fuel credit card.

Travel and Expense Reimbursement

Exceptions: There are no dollar thresholds by category of expense provided for in the written policies and procedures.

Status: The Board has adopted a travel policy that includes allov^ble expenses, dollar thresholds by category of expense, required documentation, and required approvals.

Exceptions: One of the mileage and one of the meal payments were not in accordance with policy.

Status: The Board has adopted a travel policy. Travel reimbursement requests are being monitored by the Business Office to ensure reimbursement requests are in compliance with Board policy. Employees are bemg trained in travel policies and procedures to help ensure they follow travel policies and procedures

Exceptions: The policies and procedures require prior Executive Director approval for all travel. Ofthe three requests reviewed, only one had Executive Director approval and it failed to indicate that travel was approved prior to the trip.

Status: The Board has adopted a travel policy. Travel reimbursement requests are being monitored by the Business Office to ensure reimbursement requests are in compliance with Board policy and that proper approval has been obtained prior to making the reimbursement Exceptions: We found that two of the reimbursement requests had no documentation to support that they were for appropriate and necessary business purposes.

25



Status: The Board has adopted a travel policy that requires the employee to document that the travel was appropriate and necessary. Travel reimbursement requests are being monitored by the Business Office to ensure reimbursement requests are in compliance with Board policy.

Exceptions: We found that two ofthe reimbursement requests had no documentation to support that they were for appropriate and necessary business/public purposes.

Status: The Board has adopted a travel policy that requires the employee to document that the travel was appropriate and necessary. Travel reimbursement requests are being monitored by the Business Office to ensure reimbursement requests are in compliance with Board poUcy.

Exceptions: The policies and procedures require a voucher be received from the Executive Director prior to travel. There were no such vouchers in the supporting documentation provided.

Status: The Board has adopted a travel policy that requires all travel to be approved prior to travel. Travel reimbursement requests are being monitored by the Business Office to ensure reimbursement requests are in compliance with Board policy.

Exceptions: One of the reimbursement requests reviewed was not approved in writing by someone other than the person receiving reimbursement. One of the approved reimbursement requests was not approved until more than eight months after travel occurred.

Status: The Board has adopted a travel policy that requues all travel reimbursement requests to be reviewed and approved prior to being paid. Travel reimbursement requests are being monitored by the Business Office to ensiu-e reimbursement requests are in compliance with Board policy.

Contracts

Exception: No such written policies and procedures pertaining to contracts were in place for the period.

Status: Refer to Management Letter.

Exceptions: While dociunentation was provided that showed a request for bids for the service contract and a bid selection sheet notating which bid vras accepted, the losing bid was not provided. For the materials and supplies contract, there was no documentation of an open or competitive atmosphere.


26


Status of Prior Year Findings For die Year Ended June 30,2013

Exceptions: There is no evidence to indicate that the School's legal advisor reviewed contract or advised on either contract.


Exceptions: There is no documentation that the board approved either contract.


Payroll and Personnel

Exceptions: The policies and procedures do not address the processing of payroll, including reviewing and approving time and attendance records, including leave and overtime worked.

Status: Referto Finding 13-01.

Exceptions: There were payments paid to the employee for merit pay but there is no mention of merit pay in the contract. While the contract was not signed until more than a month after the contract period, employment, began (policies and procedures state that the School shall execute a contract prior to begimiing work for all full-time employees), the salary payments indicated that the employee was paid for the entire contract period.

Status: The Board has chosen not to include merit pay in an employee's contract as merit pay is not guaranteed to the employee. The Board decides if merit pay will be paid and ^proves payment of it in a Board meeting. We are trying to ensure that all employees' contracts are signed prior to the employee starting to work.

Exceptions: Not all employees are doctimenting their daily attendance.

Status: We are currently working under an informal policy that requires all employees to complete leave records When preparing payroll, leave records are compared to leave records mamtained by the school secretary. We implemented a leave policy to include documentation of leave taken and review procedures of leave taken prior to entering leave into the payroll system.

Exceptions: Supervisors did not approve attendance in writmg for any ofthe attendance records reviewed. While leave forms appeared to be completed and approved in advance for instances that employees were requesting time off, there were no forms completed or approved in instances when employees did not request the time off in advance.

Status: Refer to Finding 13-01.

27



Exceptions: The leave records were maintained in a computer program and were found to be inaccurate during the course of the audit. There were two instances of employees being paid a total of $878 for leave they had not eamed.

Status: Refer to Fuiding 13-01.

Exceptions: There is nothing in the policies and procedures that pertains to changing the contract terms (q>proving new contract in mid-term) including changes in compensation.

Status: Refer to Fmding 13-01.

Exceptions: We determined that one of the two termination payments was not made in accordance with policy (74 hours of sick time was not paid to employee) and neither termination payments were properly approved.

Status: The Board has amended its policy regarding termination pay. In the fiiture, any termination payments will be reviewed by the Business Department to ensure that the payments are in accordance with the Board policy.

28

lyUFFEY, HUFFMAN, RAGSDME & 5 O I G N I E R

JohnL Luffey. MBA. CPA (1963-2002) Francis I Huffman. CPA Philip A Ragsdale. CPA David Ray Soignier, CPA, MBA



John Herman. CPA Lynn Andnes. CPA Esther Atteberry, CPA Lorl Woodard. MBA, CPA

MANAGEMENT LETTER

Board of Directors D'Arbonne Woods Charter School Monroe, Louisiana

In planning and performing our audit of the financial statements of D'Arbonne Woods Charter School (the School) as of and for the years ended June 30, 2013 we considered its intemal control structure in order to determine our auditmg procedures for purposes of expressing our opinion on the financial statements and not to provide assurance on the intemal control structure or overall compliance with laws and regulations.

However, during our audit we became aware of certain matters that are opportunities for strengdiening intemal controls and the overall environment for compliance with laws and regulations. This letter will summarize our comments and suggestions regarding those matters. This letter does not affect our report dated September 6, 2013 on the financial statements ofthe School.

Purchasing Policies and Procedures

Finding The School's purchasing policies and procedures provide that any purchase less than $500 may be approved by the Business Manager and purchases of $500 and above must be approved by the Executive Director. The School is subject to the Public Bid Law for public work projects in excess of $150,000. The School's policies and procedures are silent as to Board approval of any purchase or contract below $150,000 and therefore the Executive Director, according to die current policies and procedures, can approve anything up to $150,000.

Recommentlation We recommend the School revise its purchasing policies and procedures to include Board approval of purchases above a certain dollar amount. The Board should also consider including in the policies and procedures contracts and leases above a certain amount having board approval.

1100 North 18th Street Monroe. Louisiana 71201 Tel (318)387-2672 • Fax. (318)322-6866 • Website www afullservicecpafirm com


D'Arbonne Woods Charter School Farmerville, Louisiana Management Letter Page 2 of 2

Management's Response We will review our purchasing policy approval process between $500 and $150,000 and consider requiring Board approval for purchases in this dollar range and above.

^^•#y /ljf**fi^i^f>d<^ j

(A Professional Accounting Corporation)

September 6,2013

D'Arbonne Woods Charter School Farmerville, Louisiana

Independent Accountants' Report On Applying Agreed-Upon Procedures

For The Year Ended June 30,2013

D'ARBONNE WOODS CHARTER SCHOOL FARMERVILLE, LOUISIANA

AGREED-UPON PROCEDURES

JUNE 30,2013

TABLE OF COIVTENTS

Page

Independent Accountants* Report 1

Schedules Required by State Law 4

Schedule 1 - General Fund Instructional and Support Expenditures

and Certain Local Revenue Sources 6

Schedule 2 - Education Levels of Public School Staff 7

Schedule 3 - Nxmiber and Type of Public Schools 8

Schedule 4 - Experience of Public Principals and Full-Time Classroom Teachers 9

Schedule 5 - Public School Staff Data 10

Schedule 6 - Class Size Characteristics 11

Schedule 7 - Louisiana Educational Assessment Program (LEAP) forthe 21'* Century 12

Schedule 8 - The Graduation Exit Exam for die 21"* Century 14

Schedule 9 - The iLEAP Tests 15

I uFFEY, HUFFMAN, RAGSDALE ST SOIGNIER

John L Luffey. MBA. CPA (1963-2002) Franas I Huffman, CPA Philip A Ragsdale, CPA Davtd Ray Soignier. CPA, MBA, CGMA

tA PROFESSIONAL ACCOUNTING CORPORATION)


John Herman. CPA Lynn Andnes, CPA, CGMA Esther Atteberry, CPA Lon Woodard. MBA, CPA, CGMA, CITP

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

FOR THE YEAR ENDED JUNE 30,2013

D'Arbonne Woods Charter School, Inc. FarmerviUe, Louisiana

We have perfonned the procedures mcluded in the Louisiana Govemmental Audit Guide and enumerated below, which were agreed to by the management of D'Arbonne Woods Charter School, Inc. (the School) and the Legislative Auditor, State of Louisiana (collectively, the Specified Users), solely to assist users m evaluating management's assertions about the performance and statistical data accompanying the annual financial statements of D'Arbonne Woods Charter School and to determine whether the specified schedules are free of obvious errors and omissions as provided by the Board of Elementary and Secondary Education (BESE). This agreed-upon procedures engagement was performed in accordance with standards established by the American Institute of Certified Public Accountants and ^plicable standards of Govemment Auditing Standards, The suf&ciency of these procedures is solely the responsibility of the Specified Users of the report. Consequentiy, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Our procedures and findings relate to the accompanying schedules required by state law and are as follows:

General Fund Instructional and Support Expenditures and Certain Local Revenue Sources (Schedule I)

1. We examined in excess of 25 transactions and reviewed supporting documentation to deteraiine if the tested expenditures/revenues are classified correctiy and are reported in the proper amounts for each ofthe following amoimts reported on the schedule:

• Total General Fund Instructional Expenditures, • Total General Fund Equipment Expenditures, • Total Local Taxation Revenue, • Total Local Eammgs on Investment in Real Property, • Total State Revenue in Lieu of Taxes, • Nonpublic Textbook Revenue, and o Nonpublic Transportation Revenue.

1100 North 18th Street Monroe, Louisiana 71201 Tel (318)387-2672 • Fax (318)322-8866 • Website www afullservicecpafirm com Page 1


D'Arbonne Woods Charter School, Inc. Fannerville, Louisiana

Education Levels of Public School Staff (Schedule 2)

2. We reconciled the total number of fiill-time classroom teachers per the schedule "Experience of Public Pnncipals and Full-time Classroom Teachers" (Schedule 4) to the combmed total number of fiill-time classroom teachers per this schedule and to School supporting payroll records as of October 1st.

3. We reconciled the combined total of principals and assistant principals per the schedule "Experience of Public Prmcipals and Full-time Classroom Teachers" (Schedule 4) to the combined total of principals and assistant principals per this schedule.

4. We obtamed a list of fiill-time teachers, principals, and assistant principals by classification as of October 1st and as reported on the schedule. We traced all teachers to die individual's personnel file and determined if the individual's education level was properly classified on the schedule

Number arul Type of Public Schools (Schedule 3)

5. We obtamed a hst of schools by type as reported on the schedule. We compared the list to the schools and grade levels as reported on the Tide 1 Grants to Local EducaUonal Agencies (CFDA 84.010) application and/or die National School Lunch Program (CFDA 10.555) ^plication.

Experience of Public Principals and Full-time Classroom Teachers (Schedule 4)

6. We obtamed a hst of fiill-time teachers, pnncipals, and assistant principals by classification as of October 1st and as reported on the schedule and traced the same sample used in procedure 4 to the mdividual's persormel file and determined if the individual's experience was properly classified on the schedule.

Pubhc School Staff Data (Schedule 5)

7. We obtained a hst of all classroom teachers including their base salary, extra compensation, and ROTC or rehired retiree status as well as fiill-time equivalent as reported on the schedule and traced all teachers to the individual's personnel file and determined if the individual's salary, extra compensation, and full-time eqmvalents were properly included on the schedule

8. We recalculated the average salaries and fiill-time equivalents reported in the schedule.

Class Size Characteristics (Schedule 6)

9. We obtained a list of classes by school, school type, and class size as reported on die schedule and reconciled school type classifications to Schedule 3 data, as obtained m procedure 5. We then traced all classes to the October 1st roll books for those classes and determined if the class was properly classified on the schedule


Louisiana Educational Assessment Program (LEAP) for the 21st Century (Schedule 7)

10. We obtained test scores as provided by the testing authonty and reconciled scores as reported by the testing authority to scores reported in the schedule by the School We traced all schedules to actual test results.

The Graduation Exit Exam for the 21st Century (Schedule 8)

11. This exam is given to students in the 10* and 11* grades and die School only offered grades kindergarten ttuough 9* grade dunng the audit year, therefore this procedure does not apply.

The iLeap Tests (Schedule 9)

12. We obtained test scores as provided by the testing authonty and reconciled scores as reported by the testing authority to scores reported in the schedule by the School. We traced all schedules to actual test results.

Our twelve procedures enumerated above did not disclose any exceptions

We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opimon. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is mtended solely for the use of management of the Specified Users, the Louisiana Department of Education and the Louisiana Legislature and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a pubhc document.

^ " j K * y fUSf*>»'>^K»y^e»^^ f £ ^ « J M ^

(A Professional Accounting Corporation) November 22,2013


Schedules Required by State Law (R.S. 24:514 - Performance and Statistical Data) As of and for the Year Ended June 30,2013

Schedule 1 - General Fund Instructional and Support Expenditures and Certain Local Revenue Sources This schedule includes general fiind instructional and equipment expenditures. It also contains local taxation revenue, earnings on investments, revenue in lieu of taxes, and nonpublic textbook and transportation revenue. This data is used either in the Minimum Foundation Program (MFP) fonnula or is presented annually in the MFP 70% Expenditure Requirement Report

Schedule 2 - Education Levels of Public School Staff This schedule includes the certificated and uncertificated number and percentage of fiill-time classroom teachers and the number and percentage of principals and assistant principal's with less than a Bachelor's; Master's; Master's +30; Specialist in Education; and Ph. D or Ed. D. degrees. This data is currentiy reported to the Legislature in the Annual Financial and Statisticed Report (AFSR).

Schedule 3 - Number and Type of Public Schools This schedule includes the number of elementary, middle(junior high, secondary and combination schools in operation during the fiscal year This data is currentiy reported to the Legislature in the Annual Financial and Statistical Report (AFSR).

Schedule 4 - Experience of Public Principals, Assistant Principals, and Full-time Classroom Teachers This schedule includes the number of years of experience in teaching for assistant principals, principals, and fiill-time classroom teachers. This data is currentiy reported to the Legislature in the Annual Financial and Statistical Report (AFSR).

Schedule 5 - Public School Staff Data: Average Salaries This schedule includes average classroom teachers salary using fiill-time equivalents, including and excluding ROTC and rehired retiree teachers. This data is currentiy reported to the Legislature in the Annual Financial and Statistical Report (AFSR).

Schedule 6 - Class Size Characteristics This schedule includes the percent and number of classes with student enrollment in the following ranges: 1-20, 21-26, 27-33, and 34+ students. This data is currently reported to the Legislature in the Annual School Report (ASR).

Schedule 7 - Louisiana Educational Assessment Program (LEAP) This schedule represents student performance testing data and includes summary scores by district for grades 4 and 8 in each category tested. Scores are reported as Advanced, Proficient, Basic, Approaching Basic, and Unsatisfactory. This schedule includes three years of data.


Schedules Required by State Law (R.S. 24:514 - Performance and Statistical Data) As of and for the Year Ended June 30,2013

Schedule 8 - Graduation Exit Examination (GEE) This schedule represents student performance testing data and includes summary scores by district for grades 10 and 11 in each category tested. Scores are reported as Advanced, Proficient, Basic, Approaching Basic, and Unsatisfactory. This schedule includes three years of data.

Schedule 9 -iLEAP Tests This schedxde represents student performance testing data and includes a summary score for grades 3, 5, 6, 7 and 9 for each district. The summary score reported is the National Percentile Rank showing relative position or rank as compared to a large, representative sample of students in the same grade fiom the entire nation. This schedule includes three years of data.

Schedule 1 D'Arbonne Woods Charter School

Famerville, Louisiana

General Fund Instructional and Support Expenditures and Certain Local Revenue Sources

Fiscal Year Ended June 30» 2013

General Fund Instructional and Equipment Expenditures General Fund Instructional Expenditures Teacher and Student Interaction Activities Classroom Teacher Salanes Other Instructional Staff Activities Instructional StaffEmployee Benefits Purchased Professional and Technical Services Instructional Matenals and Supplies Instructional Equipment

Total Teadier and Student Interaction Activities Other Instructional Activities PnpU Support Services Less: Equipment for Pupil Support Services

Net Pupil Support Services Instructional Staff Services Less- Equipment &r Instructional Staff Services

"Net Instructional Staff Services School Administration Less: Equipment for School Administration Net School Administration

Total General Fund Instructional Expenditures

Total General Fund Equipment Expenditures

Certain Local Revenue Sources Local Taxation Revenue Constitutional Ad Valorem Taxes Renewable Ad Valorem Tax Debt Service Ad Valorem Tax Up to 1% of Collections by the Sheriff on Taxes Other than School Taxes

Sales and Use Taxes Total Local Taxation Revenue

Local Earnings on Investment In Real Property Earnings from 16th Section Property Earnings from Other Real Properly

Total Local Earnings on Investment m Real Property

State Revenue in Lieu of Taxes Revenue Sharing - Constitutional Tax Revenue Sharing - Other Taxes Revenue Sharing - Excess Portion Other Revenue in Lieu of Taxes

Total State Revenue in Lieu of Taxes

Nonpublic Textbook Revenue Nonpublic Transportation Revenue

$ U04.947 350^91 612.949

638 316368

7,699

165,567

323.088

128,869

$

S

$

2,492,891 100330

165.567

323.088

128.869

3^10.745

-

Schedule 2

D'ARBONNE WOODS CHARTER SCHOOL, INC Education Levels of Public School Staff

As ofOctober 1,2012

Category

Less than a Bachelor's Degree

Bachelor's Degree

Master's Degree

Master's Degree+ 30

Specialist in Education

Ph. D. or Ed. D.

Total

Full Time Classroom Teachers

Certificated

Number

_

21

6 .

.

-

27

Percent

.

78%

22%

*•

-

.

100%

Uncertificated

Number

_

1

«

„

_

.

1

Percent

_

100%

_

,

.

-

100%

Principals & Assistant Principals

CertiGcated

Number

_

_

1 _

.

1

Percent

_

.

100% .

.

-

100%

Uncertificated

Number

_

_

-

_

.

-

-

Percent

-

_

_

_

,

-

-

Schedule 3

D'ARBONNE WOODS CHARTER SCHOOL, INC. Number and Type of Public Schools

Fiscal Year Ended June 30.2013

Type

Elementary

Middle/Jr. High

Secondary

Combination

Total

Number -

-

-

1

1

Schedaie 4

D^AKBONNE WOODS CHARTER SCHOOL, INC. Experience of Public Principals, Assistant Principals

and Full-time Classroom Teachers As ofOctober 1,2012

Assistant Principals

Principals Classroom Teachers

Total

0-1 Yr

.

.

8

8

2-3Yra.

-

2

2

4-lOYrs.

-

-

10

10

ll-14Yrs.

.

-

4

4

15-19Yrs.

.

1 -

1

20 - 24 Yrs.

-

-

0

0

25+Yrs

-

-

4

4

Total

-

1 28

29

Schedule 5

D'ARBONNE WOODS CHARTER SCHOOL, INC. Public School Staff Data. Average Salaries

AsofJune30,2013

AH Classroom Teachers

Classroom Teachers Excluding ROTC,

Rehired Retirees, and Flagged Salary Reductions

Average Classroom Teachers* Salary Including Extra Compensation

Average Classroom Teachers' Salary Excluding Extra Compensation

Number of Teacher Full Time Equivalents (Jf IILS) used in Computation of Average Salaries

1 — •

$41,261

$40,408

28

$39,972

$39,147

25

Note' Figures reported include all sources of funding (i.e., federal, state and local) but exclude employee benefits. GeneraUy, retired teachers rehired to teach receive less compensation than non-retired teachers and ROTC teachers receive more compensation because of federal supplement Therefore, these teachers are excluded from the computation in the last column. This schedule excludes day-to-day substitutes and temporary employees.

10

Schedule 6

D'ARBONNE WOODS CHARTER SCHOOL, INC. Class Size Characteristics

As ofOctober 1, 2012

School Type

Combination

Combination Activity Classes

Class Size Range

1-20

Percent

13%

-

Number

3 w

21-26

Percent

71%

-

Number

17

-

27-33

Percent

17%

-

Number

4

-

34+

Percent

-

-

Number

-

-

Note: The Board of Elementary and secondary education has set specific limits on the maximum size of classes at various grade levels. The maximum enrollment in grades K-3 is 26 students and the maximum enrollment in grades 4-12 is 33 students. These limits do not apply to activity class is such as physical education classes, band and other classes without maximum enrollment standards. Therefore, these classes are included only as separate line items.

II

Schedule 7

D'ARBONNE WOODS CHARTER SCHOOL, INC. Louisiana Educational Assessment Program (LEAP) for the 21st Century

For the Three Fiscal Years Ended June 30,2013

District Achievement Level 1 Results [Students Grade 4 Advanced JMastery Basic Approaching Basic Unsatisfactory

Total

English Laneuage Arts 2013

Number

1 14 23 8 3

49

Percent

2% 29% 47% 16% 6%

100%

2012 Number

1 14 10 6

31

Percent

3% 46% 32% 19%

100%

2011 Number

4 27 9 6

46

Percent

9% 59% 19% 13%

100%

Mathematics 2013

Number

7 5

30 6 1

49

Percent

14% 10% 62% 12% 2%

100%

2012 Number

7 8 11 4 I

31

Percent

23% 26% 35% 13% 3%

100%

20U Number

I 4 23 14 4

46

Percent

2% 9% 50% 30% 9%

100%

District Achievement Levei Results

[Students Grade 4 Advanced [Mastery Basic Approaching Basic Unsatisfactory

Total

Science 2013

Number

1 5

29 14

49

Percent

2% 10% 59% 29%

100%

2012 Number

1 12 14 4

31

Percent

3% 39% 45% 13%

100%

2011 Number

I 4

27 12 2

46

Percent

2% 9% 59% 26% 4%

100%

Social Studies 2013

Number

1 5

31 11 I

49

Percent

2% 10% 64% 22% 2%

100%

2012 Number

1

n 16 3

31

Percent

3% 35% 52% 10%

100%

2011 Number

4 24 14 4

46

Percent

9% 52% 30% 9%

100%

12

Schedule 7

D'ARBONNE WOODS CHARTER SCHOOL, INC. Louisiana Educational Assessment Program (LEAP) for the 21st Century


District Achievement Level Results

Students Grades Advanced Mastery Basic Approaching Basic Unsatisfactoiy

Total

English Language Arts 2013

Number

3 15 21 9 1

49

Percent

6% 31% 43% 18% 2%

100%

2012 Number

2 10 14 3 -

29

Percent

7% 34% 49% 10%

-

100%

2011 Number

. -. » -

-

Percent

---.

-

-

Mathematics 2013

Number

I 4 32 9 3

49

Percent

2% 8%

66% 18% 6%

100%

2012 Number

3 2 17 7 -

29

Percent

10% 7% 59% 24%

-

100%

2011 1 Number

-----

-

Percent

-----

-


Students Grades Advanced Mastery Basic Approaching Basic Unsatisfectoiy

Total

Science 2013

Number

1 15 25 7 I

49

Percent

2% 31% 51% 14% 2%

100%

2012 Number

2 7 16 3 1

29

Percent

7% 24% 56% 10% 3%

100%

2011 Number

-

-

Percent

-

Social Studies 2013

Number

2 8

29 6 4

49

Percent

4% 16% 60% 12% 8%

100%

2012 Number

1 3

24 1

29

Percent

3% 10% 84% 3%

100%

2011 1 Number

"

-

Percent

-

-

13

Schedule 8

D'ARBONNE WOODS CHARTER SCHOOL, INC. The Graduation Exit Exam (GEE) for the 21st Century

For the Fiscal Year Ended June 30,2013

D'Arbonne Woods Charter School did not offer classes to grades that take the GEE. This exam is given to students in the 10th and 11th grades and the D'Arbonne Woods Charter School only offered grades kindergarten through 9th grade dunng the audit year.

14

Schedule 9

D'ARBONNE WOODS CHARTER SCHOOL, INC. iLEAP Tests



Students Grade 3 Advanced Mastery Basic Approaching Basic Unsatisfactory

Total


Number

-

5 16 10 11

42

Percent

.

12% 38% 24% 26%

100%

Mathematics 2011

Number

2 6 U 8 15

42

Percent

5% 14% 26% 19% 36%

100%

Science 2011

Number

1 9 17 9 6

42

Percent

2% 21% 40% 21% 14%

100%

Social Studies 2011

Number

2 8 12 9 11

42

Percent

5% 19% 29% 21% 26%

100%


Students Grades Advanced Mastery Basic AppiDaching Basic Unsaltsfectory

Total


Number

1 6 20 7 6

40

Percent

3% 15% 50% 18% 15%

100%

Mathematics 2011

Number

1 2

21 6 10

40

Percent

3% 5%

53% 15% 25%

100%

Science 2011

Number

1 6 19 6 8

40

Percent

3% 15% 48% 15% 20%

100%

Social Studies 2011

Number

2 7 18 10 3

40

Percent

5% 18% 45% 25% 8%

100%

15

Schedule 9




Students Grade 6 Advanced Mastery Basic Approaching Basic Unsatis&ctory

Total


Number

2 8 17 6 1

34

Percent

6% 24% 50% 18% 3%

100%

Mathematics 2011

Number

3 2 18 5 6

34

Percent

9% 6%

53% 15% 18%

100%

Science 2011

Number

-

10 15 6 3

34

Percent

-

29% 44% 18% 9%

100%

Social Studies 2011

Number

1 3 19 9 2

34

Percent

3% 9% 56% 26% 6%

100%


Students Grade? Advanced Mastery Basic Approaching Basic Unsatisfactory

Total


Number

3 6 9 2 2

22

Percent

14% 27% 41% 9% 9%

100%

Mathematics 2011

Number

2 1 13 3 3

22

Percent

9% 5%

59% 14% 14%

100%

Science 2011

Number

I 3 13 4 1

22

Percent

5% 14% 59% 18% 5%

100%

Social Studies 2011

Number

1 14 5 2

22

Percent

5% 64% 23% 9%

100%

16

Schedule 9



1 District Achievement 1 Level Results Students Grade 3 Advanced Mastery iBasic Approaching Basic Unsatisfactory

Total


Number

1 2

23 13 6

45

Percent

2% 4%

51% 29% 13%

100%

Mathematics 2012

Number

1 5

28 9 2

45

Percent

2% 11% 62% 20% 4%

100%

Science 2012

Number

1 10 22 U 1

45

Percent

2% 22% 49% 24% 2%

100%

Social Studies 2012

Number

12 20 6 7

45

Percent

27% 44% 13% 16%

100%

1 Distnct Achievement Level Results

Students iGrade 5 Advanced jMastery Basic Approaching Basic Unsatisfactory

Total


Number

12 23 9 1

45

Percent

27% 51% 20% 2%

100%

Mathematics 2012

Number

8 6

28 3

45

Peicent

18% 13% 62% 7%

100%

Science 2012

Number

1 6

26 10

44

Percent

2% 14% 59% 23% 2%

100%

Social Studies 2012

Number

2 9 27 6

44

Percent

5% 20% 61% 14%

100%

17

Schedule 9




Students Grade 6 Advanced Mastery Basic Approaching Basic Unsatisfactory

Total


Number

-9 18 5 1

33

Percent

-27% 55% 15% 3%

100%

Mathematics 2012

Number

2

4 18 5 4

33

Percent

6% 12% 55% 15% 12%

100%

Science 2012

Number

-4 19 8 2

33

Percent

-12% 58% 24% 6%

100%

Social Studies 2012

Number

-3 15 9 6

33

Percent

-9%

45% 27% 18%

100%

18

Schedule 9



1 District Achievement 1 Level Results Students Grade 3 Advanced Mastery ISasic Approaclimg Basic lUnsatisfactoiy

1 Total


Number

1 9

22 15 4

51

Percent

2% 18% 43% 29% 8%

100%

Mathematics 2013

Number

2 8

28 9 4

51

Percent

4% 16% 54% 18% 8%

100%

Science 2013

Number

3 6

24 13 5

51

Percent

6% 12% 47% 25% 10%

100%

Social Studies 2013

Number

2 8

25 9 7

51

Percent

4% 16% 48% 18% 14%

100%


! Students IGrade5 Advanced iMasteiy Basic Approaching Basic lUnsatisfectory

Total


Number

3 15 21 7 -

46

Percent

7% 33% 45% 15%

-

100%

Mathematics 2013

Number

-

9 24 10 3

46

Percent

.

20% 51% 22% 7%

100%

Science 2013

Number

-

11 27 8 -

46

Percent

-24% 59% 17%

•

100%

Social Studies 2013

Number

1 2 25 10 8

46

Percent

2% 4% 55% 22% 17%

100%

19

Schedule 9




Students Grade 6 Advanced Mastery Basic Approaching Basic Unsatisfactoiy

Total


Number

3 8

34 4 I

50

Percent

6% 16% 68% 8% 2%

100%

Mathematics 2013

Number

4 9

33 2 2

50

Percent

8% 18% 66% 4% 4%

100%

Science 2013

Number

2 8

33 7

50

Percent

4% 16% 66% 14%

-

100%

Social Studies 2013

Number

2 1

29 13 5

50

Percent

4% 2%

58% 26% 10%

100%


Students Grade? Advanced Mastery Basic Approachmg Basic Unsatisfactory

Total


Number

2 5

29 12 1

49

Percent

4% 10% 60% 24% 2%

100%

Mathematics 2013

Number

5 29 10 5

49

Percent

10% 60% 20% 10%

100%

Science 2013

Number

8 24 14 3

49

Percent

16% 49% 29% 6%

100%

Social Studies 2013

Number

1 31 10 7

49

Percent

2% 64% 20% 14%

100%

20

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