LAKESIDE ACADEMY, INC. FINANCIAL STATEMENTS JUNE … rpts/2014 lakeside academy.pdfLAKESIDE ACADEMY,...

LAKESIDE ACADEMY, INC.

FINANCIAL STATEMENTS

JUNE 30, 2014


FOR THE FISCAL YEAR ENDED JUNE 30, 2014

TABLE OF CONTENTS Page Independent Auditors' Report ...................................................................................................................... 1-2 Management’s Discussion and Analysis ..................................................................................................... 3-7 Basic Financial Statements: Government-wide Financial Statements: Statement of Net position ................................................................................................................................ 8 Statement of Activities .................................................................................................................................... 9 Fund Financial Statements: Balance Sheet - Governmental Funds ........................................................................................................... 10 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net position .......................................................................................................................... 11 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................... 12 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds to the Statement of Activities ................................... 13 Notes to Basic Financial Statements............................................................................................................. 14-18 Required Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual-General Fund .............................................................................................................. 19 Budget and Actual-Capital Outlay and Special Revenue Funds ............................................................... 20 Independent Auditors’ 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 ................................................................................... 21 Management Letter Pursuant to Florida Statutes and Rules of the Florida Auditor General ...................... 22-23

LAKESIDE ACADEMY, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS

JUNE 30, 2014

The Lakeside Academy, Inc. ("Academy") is a public charter school operated in Palm Beach County, FL, under the sponsorship of the School District of Palm Beach County. Within this section of Lakeside Academy Inc.'s annual financial report, the Academy's management provides narrative discussion and analysis of the financial activities of the Academy for the fiscal year ended June 30, 2014. The Academy's financial performance is discussed and analyzed within the context of the accompanying financial statements and disclosures following this section. Financial Highlights The Academy's assets exceed its liabilities by $317,074 (net position) for the fiscal year reported. This compared to the previous year when assets exceeded liabilities by $358,293. Total net position is comprised of the following:

• $17,387 invested in capital assets which consist of furniture, fixtures, and equipment, net of accumulated depreciation.

• $299,687 in unrestricted funds which represents that portion of net position that is available to fund future

operations. Non Financial Highlights The Academy’s daily enrollment for fiscal year ended June 30, 2014 was approximately 98 students, 22 less than budgeted. The Academy expects to have an enrollment of 125 students for the school year 2014-2015. Overview of the Financial Statements The Management's Discussion and Analysis introduces the Academy's basic financial statements. The basic financial statements include: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. The Academy also includes in this report additional information to supplement the basic financial statements. Financial Analysis of School Government funds are reported in the fund financial statements and encompass essentially the same functions reported as government activities in the government wide financial statements. All of the Academy's revenue is received through the sponsor and generally was provided by the State of Florida. The revenue per student each year is determined by the State of Florida and paid to the School based upon the number of full time equivalent (FTE) students and related data to the District. Under the provisions of Florida Statutes, the District reports the number of FTE students and related data to the Florida Department of Education (FDOE) for funding through the Florida Education Finance Program (FEFP).

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MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2014

Government-Wide Financial Statements The Academy's annual report includes two government-wide financial statements. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting. This includes financial statements prepared on a full accrual accounting. The first of these government-wide statements is the Statement of Net position. This is the Academy-wide statement of position presenting information that includes all the of the Academy's assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator whether the financial position of the Academy as a whole is improving or deteriorating. Evaluation of the overall health of the Academy would extend to other nonfinancial factors such as student education, progress and improvements. The second government-wide statement is the Statement of Activities, which reports how the Academy's net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. An important purpose of the design of the statement of activities is to show the financial reliance of the Academy's distinct activities or functions on revenues provided by the school district and other private grants. The accompanying notes to the financial statements provide information essential to a full understanding of the financial statements. Both government-wide financial statements distinguish governmental activities of the Academy that are principally supported by intergovernmental revenues, and other grants. Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Academy uses funds to ensure and demonstrate compliance with finance-related laws and regulation. Within the basic financial statements, fund financial statements focus on the Academy's most significant funds. One fund used is the general fund for all financial resources not designated to any other specific fund. The school also uses a special revenue fund for all financial resources that are restricted. Government Funds Government funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with funds statements providing a distinctive view of the Academy's government funds. These are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near term. Proprietary Funds Proprietary funds are reported in the fund financial statements and generally report services for which the Academy charges a fee. For fiscal year ended June 30, 2014, the Academy did not have any proprietary funds.

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The summary of the Academy’s government-wide statement of net position is as follows:

Condensed Statement of Net Position Governmental Activities June 30, 2014 and 2013

2014 2013 Change Current and Other Assets $ 320,963 $ 372,903 $ (51,940) Capital Assets 17,387 18,077 (690) Total Assets 338,350 390,980 (52,630) Current Liabilities 21,276 32,687 (11,411) Total Liabilities 21,276 32,687 (11,411) Net position $ 317,074 $ 358,293 $ (41,219) Invested in Capital Assets $ 17,387 $ 18,077 $ (690) Restricted - - - Unrestricted 299,687 340,216 (40,529) $ 317,074 $ 358,293 $ (41,219) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the School, assets exceeded liabilities by $317,074 at June 30, 2014. A portion of the Academy’s net position (5%) reflects its net investment in capital assets. The School uses these capital assets to provide educational services; consequently, these assets are not available for future spending. An additional portion of the School’s net position (94%) represents an unrestricted net position that is available to meet the financial obligations of the School. At the end of the current fiscal year, the School is able to report positive balances in both categories of net position.

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Condensed Statement of Activities For the years 2014 and 2013

2014 2013 Change Program Revenues: Operating Grants and Contributions $ 52,857 $ 66,204 $ (13,347) Capital Grants and Contributions 41,303 36,347 4,956 General Revenues: FEFP 653,092 670,512 (17,423) Miscellaneous 18,482 19,377 (892) Interest 97 169 (72) Total Revenues 765,831 792,609 (26,778) Functions/Program Expenses: Instructional services 366,891 399,971 (33,080) Instructional Staff Training 2,168 - 2,168 Instructional Support Services - 38,118 (38,118) Board of Directors Services 17,752 12,238 5,514 School Administration 289,309 290,647 (903) Facilities Operations 57,600 73,118 (15,518) Fiscal Services 8,455 8,854 (399) Student Transportation Services 15,540 14,525 1,015 Operation of Plant 35,844 21,103 17,741 Administrative Technology Services 12,273 14,475 (2,202) Community Services 93 - 93 Unallocated Depreciation 5,125 4,719 406 Total Expenses 807,050 877,768 (71,239) Change in Net position (41,219) (85,159) 43,940 Net position – Beginning 358,293 443,452 (85,159) Net position – Ending $ 317,074 $ 358,293 $ (41,219) The School relies primarily on general revenues (i.e. FEFP dollars) to fund the expenses of the governmental activities. General revenues comprise 88% of total revenues. The reduction in FEFP funding was due to the decrease in FTE from 108 students in the prior year to 98 students in the current fiscal year. Instructional services and support services decreased because more full-time substitutes were used in the current year rather than teachers and aides in the prior year.

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MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014

FINANCIAL ANALYSIS OF THE MAJOR FUNDS GOVERNMENTAL FUNDS

GENERAL FUND The general fund is the operating fund used to account for all financial resources not required to be accounted for in another fund. It recognized $671,671 in total revenues offset with $712,200 in expenditures. This resulted in a deficiency of revenues over expenditures. Fund balance at the beginning of the year was $340,216. The beginning balance of $340,216, combined with the current year activity, resulted in an end of year fund balance of $299,687.

CAPITAL OUTLAY FUND The capital outlay fund is used to account for charter school capital outlay funding and other revenues restricted for capital outlay. The capital outlay fund recognized $41,303 in total revenues with offsetting expenditures of $41,303.

SPECIAL REVENUE FUND The special revenue fund is used to account for all funding of specific revenue sources and federal grants that are restricted by law or administrative action to expenditure for specific purposes. It recognized $52,857 in total revenues with offsetting expenditures of $52,857. DUE FROM OTHER AGENCY Due from other agency at June 30, 2014 consists of amounts due from the District for operating grant funding.

CAPITAL ASSETS As of June 30, 2014, the Academy had $17,387 invested in capital assets, as reflected below. 2014 2013 Change Equipment and fixtures $ 30,161 $ 25,726 $ 4,435 Less: Accumulated depreciation (12,774) (7,649) (5,125) Capital Assets $ 17,387 $ 18,077 $ (690) REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the Academy’s finances and to show the Academy’s accountability for the money it receives. Questions concerning the information found in this report or requests for additional information should be directed to George Litinski, Business Administrator, Lakeside Academy, Inc., Inc. 716 S. Main Street, Belle Glade, FL 33430.

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The accompanying notes are an integral part of these financial statements.-8-

Governmental Business-Type

Activities Activities TotalASSETS

Current Assets Cash and Cash Equivalents 306,800$ -$ 306,800$ Due from Other Agency 14,163 - 14,163

Total Current Assets 320,963 - 320,963

Non-Current Assets Equipment and Fixtures (Total cost of $30,161 net of accumulated depreciation of $12,774) 17,387 - 17,387

TOTAL ASSETS 338,350 - 338,350

LIABILITIES Salaries and Wages Payable 21,276 - 21,276

TOTAL LIABILITIES 21,276 - 21,276

NET POSITION Net Investment in Capital Assets 17,387 - 17,387 Unrestricted 299,687 - 299,687

TOTAL NET POSITION 317,074$ -$ 317,074$

LAKESIDE ACADEMY, INC.STATEMENT OF NET POSITION

June 30, 2014


Operating Capital Charge for Grants and Grants and Governmental Business-Type

Program Activities Expenses Services Contributions Contributions Activities Activities Total

Governmental Activities: Instructional Services 366,891$ -$ 52,857$ -$ (314,034)$ -$ (314,034)$ Instructional Staff Training 2,168 - - - (2,168) - (2,168) Board of Directors Services 17,752 - - - (17,752) - (17,752) School Administration 285,309 - - - (285,309) - (285,309) Facilities Operations 57,600 - - 41,303 (16,297) - (16,297) Fiscal Services 8,455 - - - (8,455) - (8,455) Student Transportation Services 15,540 - - - (15,540) - (15,540) Operation of Plant 35,844 - - - (35,844) - (35,844) Administrative Technology Services 12,273 - - - (12,273) - (12,273) Community Services: Fundraising 93 - - - (93) - (93) Unallocated Depreciation 5,125 - - - (5,125) - (5,125)

Total Government Activities 807,050$ -$ 52,857$ 41,303$ (712,890) - (712,890)

General Revenues FEFP Income 653,092 - 653,092 Miscellaneous 18,482 - 18,482 Interest Income 97 - 97

Total General Revenues 671,671 - 671,671

Change in Net Position (41,219) - (41,219)

Net Position-Beginning 358,293 - 358,293

Net Position-Ending 317,074$ -$ 317,074$

Net (Expense) Revenues and Change in Net Position

LAKESIDE ACADEMY, INC.GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

June 30, 2014

Program Revenues


Capital TotalGeneral Outlay Governmental

Fund Fund FundsASSETS Cash and Cash Equivalents 306,800$ -$ 306,800$ Due from Other Agency 14,163 - 14,163

TOTAL ASSETS 320,963$ -$ 320,963$

LIABILITIES Salaries and Wages Payable 21,276$ -$ 21,276$

TOTAL LIABILITIES 21,276 - 21,276

FUND BALANCES Unassigned 299,687 - 299,687

TOTAL FUND BALANCES 299,687 - 299,687

TOTAL LIABILITIES AND FUND BALANCES 320,963$ -$ 320,963$

LAKESIDE ACADEMY, INC.BALANCE SHEET

June 30, 2014GOVERNMENTAL FUNDS


Total Fund Balance - Governmental Funds 299,687$

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds.

Governmental capital assets 30,161$ Less accumulated depreciation (12,774)

17,387

Net Position of Governmental Activities 317,074$

For the Fiscal Year Ended June 30, 2014

LAKESIDE ACADEMY, INC.RECONCILIATION OF THE BALANCE SHEET

OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION


Special TotalGeneral Capital Outlay Revenue Governmental

Fund Fund Fund FundsRevenues: School District of Palm Beach County (FEFP) 653,092$ -$ -$ 653,092$ Capital Outlay - 41,303 - 41,303 Title One - - 43,743 43,743 IDEA - - 9,114 9,114 Miscellaneous 18,482 - - 18,482 Interest 97 - - 97

Total revenues 671,671 41,303 52,857 765,831

Expenditures: Instructional Services 316,142 - 50,749 366,891 Instructional Staff Training 60 - 2,108 2,168 Board of Directors Services 17,752 - - 17,752 School Administration 289,744 - - 289,744 Facilities Operations 16,297 41,303 - 57,600 Fiscal Services 8,455 - - 8,455 Student Transportation Services 15,540 - - 15,540 Operation of Plant 35,844 - - 35,844 Administrative Technology Services 12,273 - - 12,273 Community Services 93 - - 93

Total expenditures 712,200 41,303 52,857 806,360

(Deficiency) of Revenues over Expenditures (40,529) - - (40,529)

Fund balances - July 1, 2013 340,216 - - 340,216

Fund balances - June 30, 2014 299,687$ -$ -$ 299,687$

LAKESIDE ACADEMY, INC.STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

For the Fiscal Year Ended June 30, 2014GOVERNMENTAL FUNDS


Net Changes in Fund Balances - Governmental Funds (40,529)$

Expenditures for Cost of Assets 4,435 Less current year depreciation (5,125)

(690)

Change in Net Position of Governmental Activities (41,219)$

Amounts reported for governmental activities in the statement of net position are different because:

Governmental funds report capital outlay as expenditures. However, in the government-wide statement of activities, the costs of the cost of those assets is allocated over the estimated useful lives as depreciation expense. The is the amount of by which capital outlays of $4,435 differed from depreciaiton expense of $5,125 in the current period

FUNDS TO THE STATEMENT OF ACTIVITIESFor the Fiscal Year Ended June 30, 2014

LAKESIDE ACADEMY, INC.RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL


NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Organization Lakeside Academy, Inc. (“Academy”) was established as a non-profit organization in February 1998 under the laws of the State of Florida. The governing body of the Academy is the not-for-profit corporation Board of Directors which is composed of not less than three members. The Academy operates under Florida statutes 1002.33 as a Charter Contract with the School District of Palm Beach County, Florida (“the District”). Under the Charter the Academy provides education to children of elementary school age that live in Belle Glade, Pahokee and South Bay from kindergarten through the sixth grade. The Charter requires the District to provide the Academy’s primary source of funding based upon the number of full-time equivalent students registered at the Academy. The general operating authority of the School is contained in Section 1002.33, Florida Statutes. The School operates under a charter of the sponsoring school district, the School District of Palm Beach County, Florida. The current charter is effective until June 30, 2016 and is subject to annual review and may be renewed by mutual agreement between the School and the District. At the end of the term of the charter, the District may choose not to renew the charter under grounds specified in the charter. In this case, the District is required to notify the school in writing at least 90 days prior to the charter’s expiration. During the term of the charter, the District may also terminate the charter if good cause is shown. In the event of termination of the charter, the District shall assume operation of the School. The School is required to follow generally accepted accounting principles applicable to state and local governmental units. Criteria for determining if other entities are potential component units which should be reported within the School's basic financial statements are identified and described in the Governmental Accounting Standards Board's (GASB) Codification of Governmental Accounting and Financial Reporting Standards, Sections 2100 and 2600. The application of these criteria provides for identification of any entities for which the School is financially accountable and other organizations for which the nature and significance of their relationship with the School are such that exclusion would cause the School's basic financial statements to be misleading or incomplete. Based on these criteria, no component units are included within the reporting entity of the School. 2. Reporting Entity The Academy's financial reporting entity consists of the following:

• The primary government • Organizations for which the primary government is financially accountable • Other organizations that, because of the nature and significance of their relationship with the primary

government, may not be excluded from the financial reporting entity.

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LAKESIDE ACADEMY, INC. NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government-Wide Financial Statements The government-wide financial statements include the statement of net position and the statement of activities. These statements report financial information for the Academy as a whole. The statement of activities report the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include positions of a fund or summarize more than one fund to capture the expense and program revenues associated with a district functional activity. Program revenues include: (1) charges for services which report fees and other charges, (2) operating grants and contributions which finance annual operating activities including restricted investment income, and (3) capital grants and contributions which fund the acquisition, construction, or rehabilitation of capital assets. These revenues are subject to externally imposed restrictions to these programs uses. Fund Financial Statements Fund financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns with composite columns for non-major funds. 3. Measure Focus, Basis of Accounting and Financial Statement Presentation The financial statements of the Academy are prepared in accordance with generally accepted accounting principles (GAAP). The reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements. The government-wide financial statements apply Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinion issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. The government-wide statements report using the economic resources, measurement focus, and the accrual basis of accounting; generally including the reclassification or elimination of internal activity (between or within funds). Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing or related cash flows. Governmental fund financial statements report using the current financial resources, measurement focus, and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The Academy considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditures are recorded when the related fund liability is incurred. Major revenues sources susceptible to accrual include: intergovernmental revenues and investment income. 4. Major Funds General Fund is the general operating fund. It is used to account for all current financial resources except those required to be accounted for in another fund of the Academy. Special Revenue Fund is used to account for certain Federal grant program resources and food service. Capital Outlay Fund is used to account for the resources segregated for the acquisition or constriction of designated fixed assets except those financed by Enterprise Funds.

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JUNE 30, 2014 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 5. Total (Memorandum Only) The total data is the aggregate of the fund type and account group. No consolidation or eliminations were made in arriving at the total; thus, this does not present consolidated information. This column is presented for analytical purposes only. 6. Encumbrances Encumbrances accounting, under which purchase orders and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed. 7. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 8. Cash and Cash Equivalents For purposes of the statement of cash flows the Academy considers demand deposits and short-term investments with original maturities of 90 days or less to be cash equivalents. 9. Capital Assets and Depreciation The Academy’s property, equipment, and infrastructure with useful lives of more than one year are stated at historical cost and comprehensively reported in the government-wide financial statements. The Academy generally capitalizes assets with cost of $750 or more as outlay occur. The costs of normal maintenance and repairs that do not add to the asset value or materially extends the useful lives are expensed. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recorded in operations. Estimated useful lives, in years, for depreciable assets are as follows: Furniture, fixtures and equipment 3 to 7 years

10. Budget Budget to actual comparison are reflected in the accompanying financial statements for general fund, capital outlay fund, and special revenue fund types which the Academy has adopted for its operations. The Academy adopts its budget on basis consistent with generally accepted accounting principles. The budget control is total expenditures since there are no departments. 11. Net Position and Fund Balances Net position in the government-wide statements is classified as net investment in capital assets and unrestricted. GASB Statement No. 54 requires fund balances reported in governmental funds to be classified under the following classifications: nonspendable, restricted, committed, assigned, and unassigned. For the purposes of fund balance classification, expenditures are to be spent from unassigned fund balance first, followed by restricted. Accordingly, the fund balances have been presented on the governmental fund balance sheet.

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NOTES TO FINANCIAL STATEMENTS JUNE 30, 2014

NOTE B - CONCENTRATION OF RISK The School maintains bank accounts at a single financial institution that is a qualified public depository under Florida Law. For all accounts, including interest bearing accounts that do not qualify for the unlimited Federal Deposit Insurance Corporation insurance (FDIC), coverage is now permanently set at $250,000 per depositor. The School’s cash deposits are insured by FDIC and collateralized by Florida’s Multiple Institution Collateral Pool as provided for in Florida Statutes 280. NOTE C - SCHOOL DISTRICT OF PALM BEACH COUNTY The Academy has an agreement with the School District of Palm Beach County, Florida, to operate the Academy. The Academy receives funding from the School District of Palm Beach County, Florida, based on the projected number of full time equivalent (FTE) students. The term of the agreement began in July 2011, and will end on June 30, 2016. Thereafter, the agreement may be renewed by mutual agreement of the parties. NOTE D - OFFICE EQUIPMENT AND FIXTURES The changes in office equipment and fixtures during the year ended June 30, 2014 were as follows: Balance Balance 06/30/13 Additions Deletions 06/30/14 Equipment and fixtures $ 25,726 $ 4,435 $ - $ 30,161 Less: Accumulated depreciation (7,649) (5,125) - (12,774) Net capital assets $ 18,077 $ (690) $ - $ 17,387 Depreciation expense for year ended June 30, 2014 was $5,125. NOTE E - CONTINGENCIES The Academy receives funding through the School District of Palm Beach, Florida, that is based in part on a computation of the number of full time equivalent (“FTE”) students enrolled. The accuracy of data compiled supporting the FTE count is subject to audit, and if found to be in error, could result in refunds or in decrease of future funding allocations. It is the opinion of management that the amount of revenue which may be remitted back due to errors in the FTE count, if any, will not be material to the financial position of the Academy. In addition, the continued operations of the Academy are dependent upon an agreement with the School District of Palm Beach County, Florida. NOTE F - OPERATING LEASE The Academy leases office equipment from a third party. The future minimum lease payments are as follows: June 30 2015 $ 3,360

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JUNE 30, 2014 NOTE G - RENT The Academy leases the school facility from the Catholic Diocese of Palm Beach County in Belle Glade. The lease expires in July 2015 and with monthly rent and utility is $4,944. In addition, the Academy leases another space for administration office with a monthly lease of $490. The future minimum lease payments are as follow: June 30 2015 $ 65,208 NOTE H - RISK MANAGEMENT

The Academy is exposed to various risks of loss related to limited torts; theft of, damage to and destruction of assets; errors and omissions and natural disasters for which the Academy carries commercial insurance. NOTE I - INCOME TAXES The Academy is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code (IRC), though it would be subject to tax on income unrelated to its exempt purposes (unless that income is otherwise excluded by the IRC). The tax years ending 2010-2013 are still open to audit for federal purposes. Contributions to the Academy are tax deductible to donors under Section 170 of the IRC. The Academy is not classified as a private foundation. NOTE J - DATE OF MANAGEMENT’S REVIEW In preparing the financial statements, the Academy has evaluated events and transactions for potential recognition or disclosure through September 10, 2014, the date that the financial statements were available to be issued.

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REQUIRED SUPPLEMENTARY INFORMATION


Original and Final

Budget Actual VarianceRevenues: School District of Palm Beach County (FEFP) 570,501$ 653,092$ 82,591$ Miscellaneous 59,853 18,482 (41,371) Interest - 97 97

Total revenues 630,354 671,671 41,317

Expenditures: Instructional Services 182,155 316,142 (133,987) Instructional Support Services 30,540 - 30,540 Instructional Staff Training - 60 (60) Board of Director Services 11,280 17,752 (6,472) School Administration 243,759 289,744 (45,985) Facilities Operations 12,261 16,297 (4,036) Fiscal Services 9,048 8,455 593 Student Transportation Services 12,000 15,540 (3,540) Operation of Plant 41,162 35,844 5,318 Administrative Technology Services 5,000 12,273 (7,273) Community Services 750 93 657

Total expenditures 547,955 712,200 (164,245)

Excess (Deficiency) of Revenues over Expenditures 82,399$ (40,529) (122,928)$

Fund balance - July 1, 2013 340,216

Fund balance - June 30, 2014 299,687$

LAKESIDE ACADEMY, INC.SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GENERAL FUNDFor the Fiscal Year Ended June 30, 2014


Original and Capital Original and Special Original andFinal Outlay Final Revenue Final Governmental

Budget Fund Variance Budget Fund Variance Budget Funds VarianceRevenues: Title One and IDEA -$ -$ -$ 69,375$ 52,857$ 16,518$ 69,375$ 52,857$ 16,518$ Capital Outlay 45,339 41,303 4,036 - - - 45,339 41,303 4,036 Interest - - - - - - - - -

TOTAL REVENUES 45,339 41,303 4,036 69,375 52,857 16,518 114,714 94,160 20,554

Expenditures: Instructional Services - - - 69,375 50,749 18,626 69,375 50,749 18,626 Instructional Support Services - - - - 2,108 (2,108) - 2,108 (2,108) Pupil Personnel Services - - - - - - - - - Instructional Staff Training Services - - - - - - - - - Board of Directors Services - - - - - - - - - School Administration - - - - - - - - - Facilities Operations 45,339 41,303 4,036 - - - 45,339 41,303 4,036 Capital Outlay - - - - - - - - -

TOTAL EXPENDITURES 45,339 41,303 4,036 69,375 52,857 16,518 114,714 94,160 20,554

Excess of Revenues Over Expenses -$ - -$ -$ - -$ -$ - -$

Fund Balances - July 1, 2013 - - -

Fund Balances - June 30, 2014 -$ -$ -$

Governmental Funds Totals

LAKESIDE ACADEMY, INC.SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUALCAPITAL OUTLAY AND SPECIAL REVENUE FUNDS

For the Fiscal Year Ended June 30, 2014

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