Summary

Financial Statements

We found that the Charter School’s general purpose financial statements fairly presented, in all material respects, its financial position as of June 30, 1997, and the results of its operations for the fiscal year then ended. (See paragraphs 11 through 14.)

Compliance Matters

The results of our tests of compliance indicated that, with respect to the items tested, the Charter School had generally complied with the significant provisions of laws, administrative rules, regulations, contracts and grants, and other guidelines governing those programs, activities, and functions and classes of transactions within the scope of audit. (See paragraph 16.)

Internal Control

Charter School personnel have established and implemented procedures which generally provide for internal control of Charter School operations; however, our examination of the Charter School’s internal control and its operation disclosed certain deficiencies which we considered to be "reportable conditions." Although none of the reportable conditions noted is considered to be a material weakness in the Charter School’s internal control, these conditions should be promptly addressed by Charter School management. Specific deficiencies noted included the following: (See paragraphs 17 through 23.)

• School personnel indicated that the Board held eight meetings during the 1996-97 fiscal year. According to School personnel, minutes for the Board meetings held October 14, 1996, and March 18, 1997, were not available. (See paragraphs 20 and 21.)
   
• Established procedures and practices provide guidance for employees in carrying out their duties and responsibilities and in conducting the day-to-day operations of the School. School personnel indicated that formal operating procedures and practices had not been developed and reduced to writing. Such procedures and practices may be beneficial to address such matters as budget preparation and amendment; preparation and review of bank reconciliations; the electronic transfers of money; accountability and control of tangible personal property; the receipt and deposit of funds; and the acquisition of goods and services including the awarding of contracts. (See paragraphs 22 and 23.)