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 a deficiency which we considered to be a "reportable condition." Although the reportable condition noted is not considered to be a material weakness in the Charter School’s internal control, this condition should be promptly addressed by Charter School management. The deficiency noted was as follows: (See paragraphs 17 through 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 Charter School. Charter School personnel indicated that operating procedures and practices for certain areas had not been developed and reduced to writing. Such procedures and practices may be beneficial to address such matters as budget preparation and amendment, long-term planning, 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. The effective implementation of these procedures and practices also would enhance internal control to provide a mechanism for planning and monitoring the Charter School’s financial position and for continually adjusting its planned level of expenditures to both meet the Charter School’s obligation to provide for the educational needs of its students and, at the same time, remain within its financial capability. (See paragraphs 20 and 21.)