Summary

Summary of Report on Financial Statements

The Academie Da Vinci Charter School, Inc., has prepared its financial statements for the fiscal year ended June 30, 1998, in accordance with prescribed financial reporting standards.

Because of the unprecedented nature of the year 2000 issue, we do not provide assurance with regard to the ultimate impact of the year 2000 issue on the Academie Da Vinci Charter School, Inc.

Summary Report on Compliance and Internal Control

The School generally complied with significant provisions of laws, administrative rules, regulations, contracts and grants, and other guidelines. The School has established and implemented procedures which generally provide for internal control of School operations. We did note compliance and internal control findings and other matters which are summarized in the Summary of Audit Findings section below.

Summary of Audit Findings

Board Meetings

School records showed that the Board of Academie Da Vinci Charter School, Inc., held three meetings during the 1997-98 fiscal year. However, contrary to the provisions of Section 286.011(1), Florida Statutes, School records did not indicate that two of the Board meetings were advertised or that reasonable notice of the meetings was otherwise provided. We did note that beginning with a Board meeting in June 1998, procedures were implemented to provide reasonable notice for meetings of the Board in accordance with Section 286.011, Florida Statutes.

Employee Fingerprinting

Although School procedures provided for evidence of employee fingerprinting to be maintained by the Pinellas County District School Board, our review of School personnel files and documentation maintained on file at the Pinellas County District School Board disclosed that documentation was not maintained to evidence that the fingerprinting process including the related background checks had been completed for six School employees. We recommend that the School continue its efforts to provide for the fingerprinting of all employees as required by law and that such procedures provide for the retention of appropriate documentation to evidence compliance with the law.

Procedures and Practices

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 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 financial planning, accountability and control of tangible personal property, the receipt and deposit of funds, record retention and filing, and the acquisition of goods and services including the awarding of contracts. We recommend that the School give appropriate consideration to the development of written procedures and practices in these areas pertinent to the day-to-day operations of the School.

Year 2000

Unless corrected before January 1, 2000, many computer applications will either stop working or, worse, begin producing erroneous results on or before that day. The year 2000 problem is a two-digit-year representation problem. Although the year 2000 problem’s impact on the operations of the School may be limited due to the size of the School’s operations and the limited number of computer resources effected, School management should continue its efforts to ensure that existing computer resources and any computer resources purchased in the future are year 2000 compliant.

The President’s written response to the audit findings and recommendations included in audit report No. 13356 is presented as Exhibit E.