Summary

Summary of Report on Financial Statements

The Micanopy Area Cooperative 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 Micanopy Area Cooperative 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 internal control findings and other matters which are summarized in the Summary of Audit Findings section below.

Summary of Audit Findings

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. Such procedures and practices may be beneficial to address such matters as financial systems and records; human resource administration; budget preparation and monitoring; accountability and control of tangible personal property; receipt, deposit, and disbursement of funds; record retention; and the acquisition of goods and services. We recommend that the School continue its efforts in the development of written procedures and practices in the 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 affected, School management should take appropriate action to ensure that existing computer resources and any computer resources purchased in the future are year 2000 compliant.

The School’s written response to the audit findings and recommendations included in audit report No. 13365 is presented as Exhibit E.