orleans parish charter school - edgar p. harney spirit of ... · spirit of exeellence academy, inc....

EDGAR P. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC.

FINANCIAL AND COMPLIANCE AUDIT TOGETHER WITH

INDEPENDENT AUDITORS' REPORT

FOR THE YEAR ENDED JUNE 30,2015

Rouge office of the Legislative Auditor and, ̂ ere apprapriate, at the office of the paristi clerk of court

Release Date_ 1*12 7 tme—

-Biuno.i Terv>:!(>n-

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITORS' REPORT I

STATEMENT OF FINANCIAL POSITION - JUNE 30, 2015......,,.....:... 4

STATEMENT OF ACTIVITIES - FOR THE YEAR ENDED JUNE 30,2015 5

:STATEMENT OF CASH FLOWS' - FOR THE YEAR ENDED JUNE 30^2015... ....] 6

NOTES TO THE FINANGIAL STAT^^ 8

SUPPLEMENTARY INFORM SCHiEDULE T- Schedule ofObmpen^tion, Benefit

Payments to Chief Executive Officer.........:...... 19

INDEPENDENT AUDITOliS'^ INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMepS PERFORMED IN ACCORDANCE WITH GOVE^hiMrAUDITING STANDARDS,. : .,. .^ 20

SGHEDULEOF FINDINGS AND QUESTIONED COSTS 23

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDING ... 25

EXIT CONFERENCE. 26

Member American Institute of Certified Public Accountants

Society of Louisiana Cettif'sd Public Accountants

jBruno & Tervalon LLP Certified Public Accountants

Wcide J. Tervalon, Jr.. CPA Waldo J, Moret, Jr.. CPA Paul K. ArKlGfi. Sr.. CPA

Joseph A. Akanll, CPA

(Retired) Michael B. Bruno, CPA (2011)

INDEPENDENT AUDITORS' REPORT

To the Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orleans, Louisiana

Report on the Financial Statements

We have audited the accompanying financial statements of Edgar P. Harney Spirit of Excellence Academy, Inc. (the School) (a nonprofit organization) which comprise the School's statement of financial position as of June 30, 2015 and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fin^cial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of intemal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers intemal control relevant to the entity's preparation

4298 ELYSIAN FIELDS AVLNUE MtW ORLLANS. LA 70122 ihU4> 284 3/33 f/0( (SO-lj

6424 LAKEOVER RD.. SUITE A JACKSON. MS 39213

(601)366-2344 FAX (601) 366-8440

INDEPENDENT AUDITORS^ REPORT, continued

To the Boafd of pirectors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orleans, Louisiana P^e-2-

Auditors' Responsibility, continued

fair presentation, of the financial statements in order to desigii audit procedures that are appropriate in the circumstances, but not for the purpose of e?q)ressing an opinion on the effectiveness of the ehti^'s internal .control. Accordingly; we. express no' such opmioii. An audit also includes evaluating file appropriateness of accounting policies used md the reasonableness of significant- accoimting estimates made by - management, as well aS; evaluating the overallpresentetion of the fm^cial statements.

We believe that the audt evidence we havedbtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the accompanying,financial statements referred to above present fairly, in. all material respects, the.financial ppsifibn of Edgar P. Harney Spiritpf Excellence Academy; Inc. as of June 30, 2015 Md the changes in i^ net assets and its cash flows for the ye^^then ended, in accordance with accountiiig principles generally accepted jri the United States of America.

Other Matter

Our audit was made fpr the purposes of forming an opinion on the financial statements taken as a whole. The accompmying Schedule of Compensation, Reimbursements, Benefits ^d Other Payments to Chief Executive Officer is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived fi*om and relates directly to the underlying accounting and other records used to prepare the financi^ statements.

INDEPENDENT AUDITORS^ REPORT, continued

To the Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orlea^, Louisiana Page -3-

Other Matter, continue

The information has been subjected to the auditing procedmes applied in the audit of the^ financial statements and cert^ additional procedures, induing comparing ^d reconciling such infofmatipri direcdyno the m accduriting and other records used tpprep^e the fin^cial statements or to the financial statements thernselves, and other additional procedures in accord^ce with'auditing s^dards generally accepted in the United States'of Anienca.. In our opinion,, the Schedule of Gpmpensation, Reimbursements, Benefits and'other Payments to Chief Executive Officer is fairly stated in all material respects in relation to the financial statements taken as:.a.whble.

In accordance with Government Auditing Standards^ we have also issued our report dated November 20, 2015, pri-oiir consideration of the SchooPs internal control over finahciai: reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grpt agreemerits and other matters; Thepurpose of that report is'tp describe;the scope of pur testing of:internd control over financial reporting^arid compliance.and the. results of that testing and mot to provide an opinion on jntemal control over financial reporting or on compliance. TTiat Teport is an integral part of an audit performed in accordance widi Government Auditing Standards in considering the SchooPs internal control over financial reporting and compliance.

BRUNO & TERVALON LLP CERTIFIED PUBLIC ACCOUNTANTS New Orleans, Louisiana

November 20, 2015

& I ermmn ed- Accoiuitant's

\y

EDGAR p. HARNEY SPIRIT OF EXGELLENCE ACADEMY, INC.

STATEMENT OF FINANCIAL POSITION JUNE 30, 2015

ASSETS

Cash and cash equivalents - unrestricted Cash and cash equivalents ^ restricted (NOTE 15) Gi^ts receivable (NO'teS 2 and; 6) Acebrints receivable Prepaid expenses (NOTE 7) Capital assets^, net (NOTES 2 andiS) Otherassets

- J ,

Total assets'

$ 274,577 18,590 69,463 31,731 87,520 25,434

. 6j854

S: 514,169

LIABILITIES AND NET ASSETS Liabilities; Accounts payable Accrued liabilities Coiiipensatedabsences (NOTE 2) Arnounts held for others (N0TEi5) Line of credit (NOTE 9)

Total liabilities

$: 35^106 223,336 79;501 18,590 60,673

417,206

Net assets: Unrestricted net assets (NOTE 2)

Total net assets

96^963

96,963

Total liabilities and net assets $ 514,169

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

EDGAR p. HARNEY

SPIRIT OF EXCELLENCE ACADEMY, INC.

STATEMENT OF ACTIYTTIES

FOR THE YEAR ENDED JUNE 30.2015

REVENUES Local sources:

LocarMihimumTbuhdationProgram (NOTES 2, 4 and 14) Contributions and donations (NOTE 2) Other

Total local sources

State sources: State Minimum Foundation Program (NOTES 2, 4 and 14) Grants (NOTE 4) ' ,

Total state sources

$ 1,938,547 25,000 8,726

1,972,273

1,637^811 39,772

l,677.58T

Federal sources: Grants (NOTE 4)

tbtabrevenues

412,301

$ 4,062.157

EXPENSES Program services

Regul ar progr^^ Special education progr^s ;Special programs

Supporting services PupiLservices General admihistration School administration Business services Operation and maintenance of plant services Student transportation services Food sei^ice operations

Total expenses

Change in net assets

Net assets - July 1, 2014

Net assets - June 30. 2015 •

1,755,520 308,927 295i930

236,294 82,218

515^080 166,823 329,804 448,114 iU610

4,150,320

.(88,163)

185,126

$ 96,963

The accompanying notes are an integral part of these financial statements;

5

EDGAR p. HARNEY SPIRIT QF EXCELLENCE ACADEMY, INC.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2015

CASH FLOWS FROM OPERATING ACTIVmES Gh^ge in net'assets Adji^trnehts to reconcile change in net ^sets to cash

provided by operating activities: Depreciation,expense '

Ch^ges in asset and liabilities: increase) decrease in:

Gr^ts r^eivable Accounts receivable Prepaid expenses

IhcreaS;ei(decrease) in: Accounts payable., Accrued: liabilities Gompensated ;absences. Amounts held for bthers Other liabilities

Net cash prpyided by operating activities

$ (88,163)

12,717

67;746 2,106

42,795

01.391) 17,481 (7,259)

887 (830)

46,089

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of capital ^sets

Net cash uSed in investing activities

(38,151).

(38,151)

The accompanying notes are an integral part of these Financial statements.


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30. 2015

CONTINUED

CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on note payable and line of credit $ (33,521)

Net cash used in financing activities (33,521)

Net decrease in cash and cash equivalents (25,583)

Cash and cash equivalents, beginning of year 318,750

Cash and cash equivalents, end of year $ 293,167

Supplemental Disclosure: Interest paid $ 4,074

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

NOTE 1 -

EDGAR RHAimEY SPIRIT OF EXeELLENCE ACADEMY, INC. NOTES TO THE FINANCIAL STATEMENTS

Edgar P. Harney Spirit of Excellence Academy, Inc. (the School) was organized as a non-profit cpipofation under thelaws of the State of Louisiana on August 29, 2007. The cdiporation is organized exclusively for charitable and educational purposes. The;SchooPs niissi6nis tOiCreate,and maintain an prderly, trusting environmeht where teaching and leMing are innovative and exciting, where students are taught to read, write, compute, and think critically according to their-fiallest potential.

Effective July 1, 2010, the School entered into a chaitjer school contract with the Louisiana State Board ofElernentary Education (BESE) to operate a Type 5 public charter school in theEpuisiana Recovery School District as defmed in LSA R.S. 17:3992 and 399,8. The charter school contract was granted for an initial term of three (3) years ,and was extended for to additipnal two (2) years.

Subsequently, the charter school contract with BESE was renewed for a term of four. (4) years and will terminate on June 30^ 2019.

NOTE 2 - SUMMARY OF SIGNIFICANT AGCQUNTING-POLICIES:

Basis of Accounting

The School prepares it financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

EDGAR p. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC.

NOTES TO THE FINANCIAL STATEMENTS, CONTINUED

NOTE 2 - SUMMARYOF SIGNIFICANT ACCOUOTING POLICIES. CONTINUED:

Financial Statement Presentation

Financial statement presentation follows the recorhmendation ofFASB ASC 95i'2QSyFinaricialStatements ofNbt-for-Profits Organization. Under FASB ASC 958-205, the School is required to report information regarding its financial ppsitioii and activities according to three classes of net assets -unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets, as appiicabie.

Unrestrictedvr Support, revenues, and expenses for the general operation of (he School.

Temporarily Restricted - Contributions specifically authorized by the donor to be used for a certain purpose or to benefit a specific period.

Permanently Restricted - Contributions siibjectto donor-imposed festrictions and that are to be held in perpetuity by the^School. Generally, the donors of these assets permit the School to use all or part of the income derived from the investment of these contributions.

At June 30,2015, the School had no temporarily or permanently restricted net assets.

Public Support and Revenue

The School's primary source of funding is through the Minimum Foundation Program (MFP) funded by the state of Louisi^a and the Orleans Parish SchoolBoard. TheSchoolreceived$l,637,811 fromtheStateand$l,938,547 from the Orleans Parish School Board based upon eligible students at the official pupil count date of October 1" and February 1", payable in monthly installments. State and federal grants are on a cost reimbursement basis.



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. CONTINUED:

Cash and Cash Equivalents

For purposes of reporting the Statement of Cash Flows, the School considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

Grants Receivable

Grants receivable are stated at the amount management expects to collect from outstanding balances. The financial statements do not include an estimate for allowance for doubtful accounts. Management believes that all receivables are collectible.

Capital Assets

Capital assets, which include property, equipment, and intangible assets (contractual agreement), are reported at historical cost or estimated cost. Donated assets are recorded at their estimated fair market value at the date of donation. The School's policy is to capitalize property and equipment over $ 1,000. Repairs and maintenance and small equipment purchases are charged to expense when incurred.

Depreciation expense is recognized using the straight-line method over the estimated useful lives of the assets. Amortization of contractual agreements are recognized using the straight-line method over the lesser of the useful life of the improvement or the remaining tenn of the lease at the time the improvement is placed in service.

10



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. CONTINUED

Capital Assets, Continued

Depreciation and amortization are being recognized over the following periods:

Years

Office flimiture and equipment 5 Contractual agreement 3

Use of Estimates

The preparation of financial statements in confonnity with generally accepted accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes

Income taxes are not provided for in the financial statements since the School is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and similar state provisions. Should that status be challenged in the future, the School's 2012, 2013 and 2014 tax years respectively, are open for examination by the Internal Revenue Service.

n



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOT JNTING POLICIES. CONTINUED:

Contributions

The School accounts for contributions received and made in accordance with FASB ASG.'Section 958-605, Not-for-Profit Entities, Revenue Recognition, In accordance, with FASB ASG 958-605, contributions are recorded as uiirestricted, temporally festricted or per^ restricted depending on the existence and nature of any donor imposed restrictions,

)

Gontributions are generallyirecbrded ordyupon receipt,, unless eyidenceor,an unconditibnai promise to give has been received. Unconditionai pronlises to giybthat are,expected to be cpllected in fiimre years are recorded atthe present value for the amounts e?q)ected to be collected. Conditional promises to give-are notmcluded as support untilisuch time-as, theconditionsare^substantially inet. All contributions are considered available for unrestricted use unless sjpecifically restricted by the donor.

Gompensated Absences

•^Upoii bompletion of the employee trial period, fiill-time employees will are eligible to accrue personal leave, which is paid time off from work. Personal leaveniay be used for vacation, illness (of employees or family members), or other personal reasons. Personal leave:shall be accrued at the rate of biie (l) day per month up to ten (10) days a year. Employees may carry forward any mused personal leave to the subsequent year. Employees may not take personalleave that exceeds the amount they have accrued, and employees may not donate personal leave to other employees of the School. Upon separation, employees shall be paid no more than twenty-five (25) days of their accrued balance.

12

EDGAR R HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC.


NOTE 3 - FUNCTIONAL ALLOCATION OF EXPENSES:

The cost of providing various programs and other activities has been summarized on a functional basis in the Statement of Activities. Accordingly, certain costs have been allocated among instructional and support services in the accompanying Statement of Activities.

NOTE 4- CONCENTRATIONS:

At June 30,2015, the School had bank balances totaling $307,766 on deposit in a fmancial institution located in Louisiana with a carrying value of $293,167. The bank is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. At June 30, 2015, the School had $57,766 uninsured cash balances.

The primary funding sources of the School are the Minimum Foundation Program (MFP) funding provided by the state to all public school systems in Louisiana and various direct and pass-through grants from federal and state agencies. If the amount of MFP and grants received fall below the expected student count and contract levels, respectively, the School's operating results could be adversely affected.

NOTE 5 - RETIREMENT PLAN:

Substantially all employees of the School are members of a safe harbor 403(b) contributions plan. Covered employees may elect to contribute a portion of their salaries to the plan. The School matching contribution to the plan is 100% of the participant's compensation up to 5% and an additional 2% for contributions exceeding 4% of the participant's compensation. The School made contributions of $143,557 to the plan for the year ended June 30,2015.

13



NOTE 6 - GRANTS RECEIVABLE:

As of June 30,2015, grants receivable consist of amounts due from the following sources:

Federal: Title I $42,038 Title U 12,425 Special Education - IDEA 12.893

Total federal 67.356

State of Louisiana: Extended School Year Services 2.107

Total grants receivable

NOTE 7 - PREPAID EXPENSES:

Prepaid expenses consist of the following at June 30, 2015:

Recovery School District - Alternative Education Services $23,753

Other goods and services for 2015-16 63.767

Total $87.520

14



NOTE 8 - CAPITAL ASSETS:

Capital assets consist of the following at June 30, 2015:

Capital assets: Intangible assets - Contractual agreement $ 646,206 Equipment 38.151

Total capital assets

Less accumulated amortization and depreciation for: Intangible assets - Contractual agreement Equipment

Total accumulated amortization and depreciation (658.923)

Capital assets, net $ 25.434

Depreciation expense for the year ended June 30, 2015, totaled $12,717.

NOTE 9 - LINE OF CREDIT:

The School has a revolving line of credit with a local bank with a limit of $200,000 maturing on December 19,2015. Interest accrues at the interest rate of 6%. The line of credit is secured by pledge of BESE funding payments. The balance as of June 30, 2015 is $60,673.

15



NOTE 10 ^ RELATED PARTY TRANSACTIONS:

During the year ended June 30, 2015, the School engaged the services of a Professipnal Coipofatidn of Accountants and M^agement Consultants (the Corporation),to assist with vmous accounting related services. The owner of the Corporation is employed by the School as the School's Chief Financial Offieer; Amounts paid to the Corporation was $3 6,500 for the ye^ ended Juh&30,20B.

NOTE 11- SCHOOLTACILITIES:

Effectiye July 1,2013, the School ehtered.irito & agreement' with thevBESE, which allows' the School to use the school facilitiesiand its contents located at 2503 Willow Street, New Orleans, Lpuisi^a TQl B. The agreement expifed oh June 30,12015. Subsequently, upon MSE granting an extension for four (4) additional .years, (see NOTE 1) the agreement will now expired on June 30, 201^

Alterations made by the School shall not diminish thevalue of the property at the time the sdterations are approve Any physical additions or improvements to the property will become property of BESE. All assets purchased with public funds obtained from public sources will autpmaticaliy revert to BESE at the tinie the charter school agreement is, tenxiinated. The School must maintain records of all school property in compliance with BESE policy and shall update the School's property inventory quarterly.

TheSchool is responsible forxepair and replacement of physical property. In addition, the School is responsible for and obligated to provide for routine maintenance and repairs such that the facilities and property are maintained in as good condition as when the right of use was acquired, excluding ordinary we^.

16



NOTE 11- SCHOOL FACILITIES. CONTINUED:

Use of the property is not recorded as an in-kind contribution from or related rent expense to BESE. The value of the land and building is not readily determinable. The agreement is classified as an exchange transaction because both parties receive significant value from this arrangement. Accordingly, the present value of the benefit to be received in future years has not been recorded.

NOTE 12- CONTINGENCIES:

The School is the recipient of grant funds from various federal and state agencies. The grants are governed by various guidelines, regulations, and contractual agreements. The administration of the programs and activities funded by the grants are under the control and administration of the School and are subject to audit and/or review by the applicable funding sources. Any grant funds found not to be properly spent in accordance with the terms, conditions, and regulations of the funding source may be subject to recapture.

NOTE 13- RISK MANAGEMENT:

The School is exposed to various risks of loss from torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters; and employee health and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters. There were no settled claims that exceeded this commercial coverage for the year ended June 30, 2015.

NOTE 14 - MINIMUM FOUNDATION PROGRAM (MFPL

The State of Louisiana provides funding which is determined on an annual basis based on the number of pupils enrolled in the School as of October T^ and February 1^ This state-funded per pupil allocation is based on the most recently approved minimum foundation program formula resolution. For the year ended June 30, 2015, the School recognized revenue of $1,637,811.

17

EDGAR p. HAJUSEY SPIRIT OF EXCELLENCE ACADEMY, INC.


NOTE 14 - fiJM FOUNDATION PROnRAM rMFPy CONTINUED:

The Orleans Pansh School Board (OPSB) provides funding to the State of Louisi^a collected from local agencies, which pass through to the School as Local MFP. Revenues received by OPSB froin sales taxes, ad valorem taxes, and other sources are allocated to each school based on its enrollment, as of October 1" and February 1". For the year, ended June 30, 2015, the School recognized revetiue of $1,938,547.

t ''

NOTE 15 - AMOUNTS HFXD FOR OTHERS:

The.School acts as a cu^odian for student activi^ accounts; Funds held on behalf:of thfese ^bups amounted to $18^590 at Jlihe 30,2015, and is reported as both an asset (restricted.e^h) an4 ,a liabihty (founts held for others). Consequently, there is no effect on the Schooris net assets.

NOTE 16 - BOARD OF DIRECTORS' GOMPENSATIQN-

The members of the Board of D>irectors serve in a voluntary capacity! therefore, no compensaition, per diem, or travel allo\yances were paid tp any board mernber during the year ended June 30, 2015.

NOTE 17 - SUBSEOUENT EVENTS:

The School is required to evaluaite events or transactions that may occur after the statement of financial position date .for potential recognition or disclosure in the,financial statemerits. TheiSchoolperfGrmed such an evaluation through November 20,2015, the date which the financial statements were available to be issued, and noted no subsequent events or transactions that occurred after the statement of financial position date requiring recognition or disclosure.

18

SUPPLEMENTARY INFORMATION

EDGAR ?. HARNEY SIPRIT OF EXCELLENCE ACADEMY, INC. SCHEDULE OF COMPENSATION, BENEFITS

AND OTHER PAYMENTS TO CHIEF EXECUTIVE OFFICER FOR THE YEAR ENDED JUNE 30,2015

Chief Executive Officer: Ms. Eileen Williams, CEG/Principal

Purpose Amount

Salary Benefits-insurance Benefits-retirement Benefits-other Car allowance Vehicle provided by entity Per diem Reimbursements Travel Registration fees Conference travel Continuing professional education fees Housing Unvouchered expenses Special meals

95,000 . 5,094

6,650

0 0 0

3,720 0 0 0 0 0 0 0

See Independent Auditors' Report on Supplementary Information.

19

JBruno & Tervalon LLP Certified Public AccouiUants

Member Alcide J, Tervalon. Jr.. CPA American InsUtute of Waldo J. Moret, Jr., CPA Certified Public Accountants Paul K. Andoh. Sr., CPA

Society of Louisiana Joseph A. Akanji, CPA Certified Public Accountants


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 A UDITING STANDARDS


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standsirds applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fmancial statements of Edgar P. Harney Spirit of Excellence Academy, Inc. (the School) (a nonprofit organization), which comprise the statement of financial position as of June 30, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated November 20, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the School's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School's internal control. Accordingly, we do not express an opinion on the effectiveness of the School's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

.l?98 ELYSIAN FIELDS AVENUE 6424 LAKEOVER RD.. SUITE A NEW ORLEANS. LA 70122 JACKSON, MS 39213 (504128^1-8733 FAX 2H-1 H296 20 (601,1366-2344 FAX (601) 366-8440


BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GayEmMENTA UDIITNG STANDARDS. Continued

To the B oard of Directors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orleans, Louisiana

Internal Control Oyer Financial Reporting, continued

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and not designed to identify all deficiencies in internal control that might be material, we^esses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be matenaJ weaknesses. However, material weaknesses may exist that have not been identified.

Compliancennd Other Matters

As part of obtaining reasonable assurmce about whether the SchooPs fm^cial statements are free from material misstatement, we performed tests of its compliance with certa:in provisions of laws, regulations, contracts,, and grant agreements, noncompliance with which could have a direct ^d material effect on the deterrninatipn of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no inst^ces of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards \n considering the Schoors internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

21


BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT A UDITING STANDARDS. Continued


Purpose of this Report, continued

Additionally, this report is intended solely for the information and use of management, others within the School, the Board of Directors, the Louisiana Legislative Auditor and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.


November 20, 2015

JBruuos. icn-glofi 22 1f^


SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2015

SECTION I - SUMMARY OF INDEPENDENT AUDITORS' RESULTS

1. Type of report issued on the financial statements: Unmodified.

2. Did the audit disclose any material weaknesses in internal control over financial reporting? None reported.

3. Did the audit disclose any significant deficiencies in internal control over financial reporting that are not considered to be material weaknesses? None reported.

4. Did the audit disclose ^y non-compliance which is material to the fmancial statements? No.

5. Did the audit disclose any material weaknesses in internal control over major Federal programs? Not applicable.

6. Did the audit disclose £my significant deficiencies in internal control over major prpgraifhs that are hot considered to be material weaknesses? Not applicabie.

7. Type of report/issued on compliance for major programs: Not applicable.

8; Did the audit disclose any audit findings required to be reported in accordance with 0MB Circular A-133, Section .5,10(a)? Not applicable.

9. Was a management letter issued? Yes.

lO.Identification of major programs; Not applicable

.11.Dollar threshold used to distinguish between Type A and Type B programs: Not.applicable.

12.1s the auditee a "low-risk" auditee, as defined by 0MB Circular A-133? Not applicable.

23


SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2015

SECTION II - FINANCIAL STATEMENT FINDINGS

No matters reported.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

Not applicable.

24


SUMMARY SCHEDULE OF PRIOR AUDIT FINDING

SECTION I - FINANCIAL STATEMNT FINDINGS

2014-01 - Unrecorded Payroll Related Liabilities

It was reported that during the year ended June 30, 2014 that a prior period adjustment to beginning net assets was necessary to record previously unrecorded payroll related liabilities (liability for compensated absences).

Current Status

Resolved

SECTION n -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

25


EXIT CONFERENCE

The audit report was discussed during the course of the audit and at an exit conference held with the management of the School. The individuals who participated in those discussions and/or exit conference were as follows:


Pastor Charles J. Southall, III President - Board of Directors Mr. Brent Washington, Sr. Chief Financial Officer

BRUNO & TERVALON LLP CERTIFIED PUBLIC ACCOUNTANTS

Mr. Alcide J. Tervalon, Jr., CPA Managing Partner Mr. Armand E. Pinkney Engagement Manager Ms. Kesha Briscoe Engagement Staff

26

EDGAR p. HARNEY SPIRIT OF EXCELLENCE ACADEMY

INDEPENDENT ACCOUNTANTS' REPORT ON

APPLYING AGREED-UPON PROCEDURES FOR THE YEAR ENDED JUNE 30,2015

fervalon LL Public Accouiu't^.m's

TABLE OF CONTENTS

PAGE

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES 1

1

SCHEDULES REQUIRED BY STATE LAW (R.S. 24:514 PERFORMANCiE AND STATISTICAL DATA) 6

Schedule 1 - General Fund Instructional and Support:E;q>enditures ^d Certain Local Revenue Sources;.,. 8

Schedule 2 - Educational Levels of Public School Staff............ 9

Schedule 3 - Number and Type of Public Schools,. . .. .;.. ..;............... 10

Scheduled - Experience of Public Principals, Assistant^Principals . 11 ^^d Full-Time Cl^sroom Tubers.

Schedules - Public;SchooI Staff Data: Average Salves 12

Schedule'6 - Class SizeCh^^teristics 13

Schedule 7 - Louisiana Educational Assessment Program................. 14

Schedule 8 - Graduation Exit Exam (GEE)... 15

Schedule 9 - iLEAPTests 16

Member American Institute ot Certified Public Accountants

Society of Louisiana Certified Public Accountants

JBruno & Tervalon ^^Certified Public AccoiutU

LLP Accoumtants

Alcide J. Tervalon, Jr.. CPA Waldo J. Moret, Jr.. CPA Paul K. Andoh, Sr.. CPA

Joseph A. AkanjI, CPA



APPLYING AGREED-UPON PROCEDURES

To the Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc.

We have performed the procedures included in the Louisiana Governmental Audit Guide and enumerated below, which were agreed to by the management of Edgar P. Hamcy Spirit of Excellence Academy, Inc. (the School) and the Legislative Auditor, State of Louisiana, solely to assist users in evduating management's assertions about the performance and statistical data accompanying the annual financial statements of the School and to determine whether the specified schedules are free of obvious errors and omissions as provided by the Board of Elementary and Secondary Education (BESE). Management of the School is responsible for its performance and statistical data. This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of this report. Consequently, we m^e no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Our procedures and findings relate to the accompanying schedules of supplemental information and are as follows:

General Fund Instructional and Support Expenditures and Certain Local Revenue Sources (Schedule 1)

1. We selected a random sample of 25 transactions and reviewed supporting documentation to determine if the sampled expenditures/revenues are classified correctly and are reported in the proper amounts for each of the following amounts reported on the schedule:

• Total General Fund Instructional Expenditures, • Total General Fund Equipment Expenditures, • Total Local Taxation Revenue, • Total Local Earnings on Investment in Real Property, • Total State Revenue in Lieu of Taxes, • Nonpublic Textbook Revenue, and • Nonpublic Transportation Revenue.

No differences noted.

4298 ELYSIAN FIELDS AVENUE NEW PHLEANS, l.A 70122 (S04) 284-8733 FAX (504) 284 -B29F.

6424 LAKEOVER RD.. SUITE A JACKSON. MS 39213

(601) 366-2344 FAX (SO'l) 366-8440

INDEPENDENT AGCOUNTANTS' REPORT ON


To the.Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc.

2. Wefeconciled the total jlumberof classroom teachers per the schedtile "Experience of Public Principals^ Assistant Prihcipals, and Full-time Classroom Teachers" (Schedule 4) to tiie cpmbmed tbtaj number of M teachers per this schedule and to schobj board supporting payroll recordsas of October Ist;.


3. We reconciled, the cbrnbihed" total of principals and assistant princip^s per thei schedule "Experience of Public Principds, Assist^t Principals, and Full-time Classroom Teachers" (Schedule 4) to the combined total of principals and assistant principals per this schedule^

No differerices'-noted-

4', We-obtained a list.pf full-time teachers, principals, and assistant princij)ais by classification as.of October 1 st and as reportied on the schedule. We traced a random sample of 25 teachers to the individual's personnel file and determine if the individual's education leyel vvas: properly classified on the schedule.


Number and Type of Public Schools (Schedule 3}

5. We obtained a list Pf schools by t)^e as reported on the schedule. We compared the list to the schools and grade levels as reported on the Title 1 Grants to Local Educational Agencies (CFDA 84.010) application. The School only operates grades one through 8.



M»PLYING AGREED-UPON PROCEDURES

To the Board of Directors Edgar P. Hainey Spirit of Excellence Academy, Inc.

Experience of Public PrincipdlSi Assistant Frincipals, and Full-time Classroom Teachers (Schedule 41

6. We obtained a list ;of fhU-tinie teachers, principals^ and assistant principals by classification as of October 1st and as reported on die schedule and traced the same sample" used in Procedure 4 to the mdiyidual's personnel file and detennined if the individual's exp^ence wasrproperly classified on the schedule.

No differences noted.,

Public School Staff Data: Averaee Salaries (Schedules)

7. We obtained a list of all classroom teachers including their base salky, exUu compensation, and RGTC.or rehired retiree status as well as full-time equivalent as reported on the schedule and traced a random sample of 25; teachers to the individual's personnel file and determined if the individual's sala^, extra compensation^ md full-time equivalents were prbpCTly included on the schedide.

No differenceis noted.

8. We recalculated the average salaries and full-time equivalents reported in the schedule.


Class Size Characteristics (Schedule 6)

9. We obtained a list of classes by school, school type, and class size as reported on the schedule and reconciled .school type classifications to Schedule 3 data, as obtained in Procedure 5. We then traced a.random,sample of 10 classes to the October 1st roll books for those classes and determined if the class was properly classified on the schedule.




To the Board of Directors I Edgar P. Haraey Spirit of Excellence Academy, inc.

Louisiana Educational Assessment Proeram (LEAF) (Schedule 7) i

10. We obtmned>test scores as provided by the testing authority and reconciled.scbrestas^reported ' by the testing authority toiscores reported in;the. schedule by the School. — i

No differences rioted. , '

Graduation Exd Exdmination (GEE) (Schedule 8) •• . i

11. We obtained test.scoresrds pfoyided by the testing authority and reconciled scares as;repprted | by the te^rig authority to scores reported in the schedule by the School. \

T^CvGEE is no longer:administered. This Schedule;is no longer applicable. !

. , ' !

iLEAP Tests (Schedule 9)

12. We obtained test scores as provided by the testing authority and reconciledscores as:reported by the testing audiority^to scores reportedln the schedule by the SchooL ' ^

No differences noted

We were not engaged tO: perform, and did not perform, an audit, the objective of which woidd be the expression of an opinion on management's assertions. Accordingly, we dp riot express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.



To the Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc.

This report is intended solely for the use of management of the School, the School's Board of Directors, the Louisiana Department of Education, the Louisiana Legislature, and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

ULf BRUNO & TERVALON LLP CERTIFIED PUBLIC ACCOUNTANTS New Orleans, Louisiana

November 20, 2015

jBruno& Tervalon m-Certified Public Accauutanis

EDGAR p. HARNEY SPIRIT OF EXGELLENCE ACADEMY, INC.

Schedules Required By State Law (R.S. 24:514 - Perfomiance and Statistical Data)

Schedule 1 - General Fund Instructional and Support Expenditures and Certain Local Revenue Sources

This: schedide includes general fund instructional and equipment expenditures. It also contains local taxation revenue, earnings on investments, revenue in lieu of taxes, and nonpubhc textbook and fransportation revenue. This data is used either in the. Minimum Foundation Pfb^am (MEP) formula or is presented annually in the MFP 70% Expenditure Requirement Report.

Scbeduie> 2 -Education Levels of Public School Staff

"Diis schedule includes the certificated and uncertificated number and percentage of full-time classroom teachers and the number and percentage of principals and, assistant principal's With less tihan a Bachelor's; Master's; Master's +30; Specialist m Education; and Ph. D or Ed. D, de^ees. This data is currently reported to the Legislature in the Annual Financial and Statistical Report (AFSR).

I

Schedule 3 r,Number and Type of Public Schools

This schedule includes the number of elementary, middle/junior high, secondary and combination schools in operation during the fiscal year. This data is currently reported to the Legislature in the AFSR.

Schedule 4 - Experience of Public Principals, Assistant Principals, and Full-tjnie Classroom Teachers

This schedule includes the number Of years of experience in teaching for assistant' principals, principals, and full-time classroom teachers. This data is currently reported to the Legislatijre in the AFSR.

Schedule 5 - Public School Staff Data: Average Salaries

This schedule includes average classroom teachers salary using full-time equivalents, including and excluding ROTC and rehired retiree teachers. This data is currently reported to the Legislature in the AFSR.


Schedules Required By State Law (R.S. 24:514 -Performance and Statistical Data)

Schedule 6 - Class Size Characteristics

This schedule includes the percent ^d number of classes with student enrollment in the foUGwing ranges: 1-20; 21-26, 27^33, and 34+ students. This data is currently reported to die Le^siature in die Annual School Riepprt ,(ASR).

Scheduie 7 - Louisiaha Educational Assessment Program (LE^):

This schedule represents student ;performance testing data and includes: siimmary scores by district for ^ades 4 arid 8 in each category tested. Scores are report^ as Advanced, Mastery, Basic, Approaching Basic, and U^atisfactory. This schedule includes three years of data.

NOTE: Testing data for English and Math in 2015 reflects summaty scores for the PARGC-test, which replaced LEAP test iri those categories.

Schedule 8 - GraduatipniEut Examination (GEE)

The Graduation E?dt Examination (GEE) is no longer administered. This schedule is no longer applicable.

Schedule 9 - /LEAP Tests

This schedule represents student performance testing data and includes a summary score for grades 3, 5,- 6, and 7 for each district. The summary score reported iS; the National Percentile Rank showing relative position or rank as compared to a large, representative sample of students in the same grade from the entire nation. This schedule includes three years of data. Scores are reported as Advanced, Mastery, approaching Basic and Unsatisfactory.

NOTE: Testing data for English and Math in 2015 reflects summary scores for the PARCG test, which replaced LEAP test in those categories.

EDGAR P. HARNEV SPnUT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

Schedule 1

General ^nd Instructional and Support Expenditures and Certain Local Revenue Sources For the Year Ended June 30,2015

General Fund Instructional and EouipTnent Expenditures, GeneralFi^dlnsthicdonal Expend^ Teacher and Student Interaction Activities: Oassi^m Teachêrr Salaries Other Instructional SlafTActivities ihstnictidnalStaffEmployee'Beneflts Purchased Profteiona! and Technical Services ^truciionai Materials and Supplies Instnictional Equipment.

Total Teacher and Student Interaction Activities

Other Instruction^ Activities

Pupil Support Activities. Less; Equ ipment for. Pupil Support Activities

Net Pupil Support Activities

Iti^ctipnal Staff Services .Less: ûipmentifor|lhs^ctibnal StafTScrvices

Net iristructionai.S^ Services

Column A

$ 1,135,954 192,518 459,508 131,590 41,650

8,771

236,294 0

Coiunin

$ 1,969.991

0

236.294

School Admiiustration Less: Equipment'forSchool-Adininistration Net School Administration

515,080 (17.450)

497,630

Total General Fiuid ihstmaioha] Expenditures (Total of Colurhn B)

Toiid General Fund ûipment Expenditures (Object 730; Function Series 106074000)

Certain Local Revenue Sonrces L6^ tâtion Revenue: Constitutional Ad Valorem .taxes Rcnevrabic Ad, Valorem tax Dbbt Service Ad Valorem tax Up to 1% of Collections by the SherifT on Taxes Other than School Taxes Sales,and.Usc Taxes

Total Local Taxation Revenue

Iâl Eainings on Investment in Real Property; Earnings from 16th;Sectioii Property Earnings llrom Other Real Property

Total.Local Earnings on Investment in Real Properly

State Revenue in Lieu of Taxes: Revenue Sharing • Constitutional Tax Revenue Sharing - Ottirt Tartes Revenue Shoring .- Excess Portioii Other Revenue in Lieu of Taxes

Total State Revenue in Lieu of Taxes

Nonpublic.TextboDk Revenue Nonpublic Transportation Revenue

S 2.703.'915

J 26,221

XXX XXX XXX XXX XXX

XXX

XXX XXX

XXX

XXX XXX XXX XXX

XXX

XXX

See accompanying independent accounianls' report on applying agreed-upon procedures,

Schedule 2 EDGAR P. HARNEV SPIRIT OF EXCELLENCE ACADEMY, INC. Ne>v Orleans, Louisiana

Education Levels of Public School Staff As of October 1,2014

Full-time Classroom, Teachers Principals & Assistant Principals Certificated Uncertificated Certificated Uncertificat^

Gategoiy Number Percent Number Percent Number Percent dumber Percent Less than a Bachelor's De^ee 0 0% 0 Q% 0 6% 0 0% Bachelor's Degree 6 43% 9 69% 0 0% 0 0% Mastei^s Degree 7 50% 3 23% 1 50% 0 0% Mastoids D^ee + 30 I 7% 1 8% 1 .50% 0 0% Specialist in Education 0 0% 0 0% ;0 0% 0 0% Ph. D. or Ed. D, 0 0% 0 0% 6 .0% 0 0%

Total 14 100% 13 100% 2 100% 0 0%

See independent accountants* report on applying agreed-upon procedmes.

9

Schedules EDGAR P. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

Number and Type of Public Schools For the Year Ended June 30,2015

Type Number Elementary 1 Middle/jr; High 0

Secondary 0

Gombinalion 0 Total 1

See accompanying independent accountants' report on applying agreed-upon procedures.

10

Schedule 4 EDGAR P. HARNEY SPIIUT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

Experience of Public Principals, Assistant Principals, and FuH-time Classroom Teachers As ofGctober 1,2014

0-1 Yr. 2-3 YTS. 4-10 Yrs. ll-14Yrs 15-19 Yrs. 20-24 Yrs. 25+ Yrs. Total

Assistwt Principals 0 0 .0 0 0 1 . 0 I Principals 0 0 .0 0, 0 0 1 I Classroom Teachers 2 2 9 7 1 1 5 27

total 2 2 • 9 7 1 .2 6 •29

See accompanying independenl accountants' report on applying agreed-upon procedures.

11

Schedules EDGAR P. HARJSEY SPIRIT OF EXCELLENCE ACADEMY, INC, New Orleans, Louisiana -

Public School Staff Data: Average Salaries For the Year Ended June 30,2015

AU Classroom Teachers

Classroom Teachers Excluding ROTC,

Rehired Retiree^ and Flagged Salary

Reductions

Average Classroom Teachers^ Salary Including Extra Compensation

$45,635 $45,635

AverageClassroom Teachers' Salary Excluding Extra Compensation

$44,766 $44,766

Number of Teacher FulMime Equivalents (F lEs) uised ip Cbmpatation of Average Salaries

27 27

Note; Figures report^ include all SOUTCM of iundihg.(l.e., federal;state,>and loc^) but:exclude:stipends and employe benefits. Generally, retired teacb^ rehired to teach receive less compensation than nonrretired teachd^; some teachers may have been flagged as receiving r^uced salmes:(e.g., extended mediM^^ leave);iand,ROTC teachers usually receive more compensatjon because of a federal supplement For these reasons, the^ teachers are excluded from the compulation in the last column. This schedule excludes day-to-day substitutes, temporary employees, and any teachere qn^sabbatical leave during any part of the schopl year.

See accompanying independent accountanis' report on applying agreed-upon procedures.

12

EDGAR p. HARNEY SFDUT OF EXCELLENCE ACADEMY, INC. New Orleans; Louisiana

Class Size Characteristics As of October 1,2014

Schedule 6

School Type

Class Size Range

School Type 1 - 20 2i - 26 27-33 34+

School Type Percent Number Pefcerit Number Percent' Number, Percent Number

Elementary 20% 18 73®/o' 66 7% 6 0% 0 Elementary, Activity Glasses, 0% 0 .28% . 2 0% 0 •_ 72% 5 Middle/Jr. Hi^ 0%, 0 0% 0 0% 0 0% 0 Middle/Jr.Hi^ ActivitytCI^ses 0% ...a ' 0% 0 0% 0, • , 0% 0 High 0% •0 • 0% 0 0% 0. . 6% 0 High Activity Classes 0% 0 0% 0 0% , 0 0% 0 Combination 0% ; 0 0% 0 0% ; 0. 0%^ . 0 Coihbination Activity'Classes 0%. 0 _ 0% 0 0% 0 , 0% 0

Note; The Bo^d of Elementary and Secondary Education has set specific limits on the maximum,si^ ofclasses at various^de levels. iTie-maximihh enrollment inigrades K-1 isi26 students and m^mum enrollment invades 4-12 is 33';students. These limits do not ^ply to activity classes such as physical education, chorus, band, and other closes without maximuih enrollirieht standards. Therefore, th^^^^^^ classes are included only as separate;line items.


13

Schedule 7 EDGAR P. HARNEY SPnUt OF EXCELLENCE ACADEMY, ING. New Orleans, Louisiana

Partnership for Assessment of Readiness for College and Careers (PARCQ.and Louisiana Educational Assessment Program (LEAP) For the Year Ended June 30, 2015

District Achievement Level Results ,

English Language Arts Mathematics District Achievement Level Results , 2015^ 2014 2013 . 2015* 2014 .. ,2013

Grade 4 Students Number Percent Number Percent •Number. Percent Number Percent Number Percent Number Percent

Advanced 1 3% 2 ,5% 1 2% 6 0% 9, 24% 7 15% M^teiy 14 37% .M 38% 23 49% 5 13% 17 46% 11 23°>o

Basic 15 39% 15 41% 19. 40% 20 53% 7 19% 22 47% Approaching Basic 5 13% . .1 3% 4 9% 10 26% 1 3% 3 6% Uhsatisfactoty 3 8% 5, 14% 0 0% 3 8% 3 8% 4 9%

Total •38 100% 37. 100% 47 100% 38 : 100% 37 100% 47 100%

Distnct Achievernent. LeverR^iilts

Science - SociaiStudies Distnct Achievernent. LeverR^iilts 2015 2014 '2013 2015 2614 2013

Grade 4'Studeiits Number Percent NumbCTv Percent Number, Percent Number Percent Number Percent 'Niimbef :'Pcrccni'

Advanced 1 2% 0 0% I, 2% 0 0% 2 6% . 5 11% Mastery- 4 11% 8 22% 5 11% 4 11% 4 ,11% -9 ; 19% Basic 16 42% 20 56«/o 25 ,53% 20 52% ,23 64% • 22 47% Approaching Basic 13 •34% 5 14% 13 28% 10 26% 3 8% 9 19% Unsatisfactoi^ 4 11% 3 • 8% '•'3. 6% ,4 11% 4 11% 2 4%

Total 38 100% 36 100% 47 100% 38 100% 36 100% .47 . 100%

District Achievement Level Results

English Language Aiis Mathematics District Achievement Level Results 2015* 2014 2013 , 2015* 2014, 2013

Grade 8 Students Number" . Percent Numbw Pwcenf Number, • Percent Number Percent Number Percent Number Percent Advanced 1 3% 0 .0% 0 0% 2 6% 0 0% 0 0% Mastery 12 39% 2 11% 1 4% 19 61% 0 0% 0 0% Basic 1:1 35% 10 56% . 13, 57% 5 16% 14 78% 16 70% Approaching Basic 5 1'6% 3 17% 7 - 30% 2 6% 0 0% 2 .9% Unsatisfactory 2 6% 3 17% 2 9% 3 10% 4 22% 5 ^ 22%

Total 31 100% 18 100% 23 100% 31 100% 18 100% 23 100%

District Achievement

Level Results

Science Social Studies District Achievement

Level Results 2015 2014 2013 2015 2014 2013

Grade 8 Students Number Percent Number Percent Number I^rcent Number Percent Number Percent Number Percent Advanced 2 6% 0 0% 0 0% 0 0% 0 0% 0 0% Mastery 0 0% 0 0% 0 0% 1 3% 0 0% 0 0% Basic, 12 39% .6 33% 8 35% 16 51% 9 50% 7 30% Approaching Basic 13 42% 7 39% 7 30% 7 23% 6 33% 10 43% Unsatisfactory 4 13% 5 28% 8 35% 7 23% 3 17% 6 26%

Total 31 100% 18 100% 23 100% 31: 100% . 18 100% 23 100%

PARCCResults See accompanying independent accountants' report on applying agreed-upon procedures.

14

Schedule 8 EDGAR P. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

Graduation Exit Examination (GEE) For the Year Ended Jiine 30,2015

The .Graduation Exit Examination is.nbdpnger administered. This schedide is no longer applicable.

See accompanying independent accountanls* report on applying agreed-upon procedures.

15

Schedules EDGAR P. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

PARCC and iLEAP Tests For the Year Ended June 30,2015


English Language Arts Mathematics Science Social Studies _ District Achievement Level Results 2015* 2015* 2015 2015

Grade d Students Number Percent Number Percent Number Percent Number. Percent' Advanced 0 0% 0 0% 0 0% 0 . 0% Mastery 7 17% • 5 12% 0 0% 1 ,2% Basic 12 29% 20 49% 16 39% 13 32% Approaching Basic 14 34% 15 37% 17 42% 16 39% Unsatisfactory 8 20% 1 2% .8 19% 11 27%

Total 41 ,100% 41 100% 41 100% 41 100%


English Language,Arts Mathematics Science Sbcial'Studies District Achievement Level Results 2015'^ . 2015* ,2015 2015

Grade s Students . Number-i Percent Number : Percent Number Percent Number Percent" Advanced . , 0 0% 4 11% •0 0% 0 0% Mastery . ' - 5 14% 13 :35% 0 0% 0 0% Basic . ' , 12 , 32% 12 32% 11 30% 9 25% Approaching Basic ^ " 20 54% . 7 19% ^•15 40% 17 45% Unsatisfactory " 0 0% 1 3% n 30% 11 30%

Total 37 ,100% 37 100% 37 100% 37 100% II.

District Achievemerit Level Results

EhglishLanguage Arts . Mathematics Science Social Studies. District Achievemerit Level Results 2015? 2015* 2015 2015

Grade 6'Stiidents Number - i Percent ^ Nuihber, Percent Number Percent Number' Percent: Advanced 0 0% 0 0% 0 0% 0 • 0% Mastery 7 17% 12 29% 1 2% 0 0% Basic 17 40% 19 45% T2 29% 11 26% Approaching Basic 17 40% .7 . 17% 19 45% 21 50% Unsatisfactory . • 1: 2% 4 10% 10 24% 10 , 24%

Total 42 100% 42 100% 42 100% 42 100%


English Language Arts Mathematics Science Social Studies District Achievement Level Results 2015* 2015* 2015 2015:

Grade 7 Students Number Percent Number Percent Number Percent Number Percent Advanced 0 0% 0 0% 0 0% 0 0% Mastery 6 21% 4 14% ; 3 10% 1 3% Basic 10 34% 12 41% 11 38% 13 45% Approaching Basic 9 31% 11 38% 10 ,35% 11 38% Urisatisfactoiy 4 • 14% 2 7% 5 17% 4 14%

Total 29 100% 29 100% 29 100% 29 100%

See accompanying independent accountants' report on applying agreed-upon procedures,

• PARCC Results 16

Schedule 9 EDGAR P. HARNEY SPIRIT OF EXCELLENCE AGADEMV, INC. New Orleans, Louisiana

FARGC iand ILEAP Tests For the Year Ended June 30,2015


English Language Arts Mathematics Science Social Studies District Achievement Level Results 2014 2014 2014 2014

Grade 3 Students Number Percent Number percent Number Percent Number Percent Advanced 0 0% 2 5% 0 0% 0 .0% Mastery 4 10% 4 10% 1 2% 1 2% Basic 16 39% 18 44% .13 32% 16 39% Approaching Basic 13 32% J3 32% .13 32% 13 32% Unsatisfactory 8 20% 4 10% 14 34% 11 27%

Total 41 100% 41 ,100% 41 100% 41 100%

District Achievement Level . n Results

English Language Arts Mathem^ics Science Social Studies District Achievement Level . n Results 2014 2014 2014 2014

Gra'de.5 Students Number Perceht- Number , ;Percent^ • Number; Percent Number Percent' Advanced 0 0% 0 0% 0 0% 0 :0% Mastery 2 6% 1 : 3% 1 .4% 1 4% Basic: , . . 1:7 52% '24 ' 73% 1-2 35% 2 6% Approaching Basic 9 27% 5 15% :9 26% 15 45% Uhsatisfactbiy. : ; ... -.5 15% 3 9% .12 .35% ^ 15 , 45,%

" Total 33 100% 33 100% •34 100% 33 100%

District Achievement Level Resiiltis

EhglishL^guage Arts Mathematics ,. Science SocialShjdies. District Achievement Level Resiiltis . 2014 2014 2014 2014

Grade 6 Students Number Percent Number Percent Number percent Numbd- Percent Advanced , 0 0% . 0 . 0%: 0 0% 0 ' 0% Mastery 2 6% : "• 2 6% , 1 4% 0 0% Basic 19 61% 12 • '39% . 11 35% 18 58% Approaching Basic 9 29% 14 • 45% 17 55% 9 29% Unsatisfactory 1 4% 3 10% 2 6% 4 13%

Total 31 100% 31 100% 31 100% 31 100% • District Achievement Level

Results English Language Arts Mathematics Science Social Studies District Achievement Level

Results 2014 2014 2014 2014 Grade 7 Students Number Percent Number Percent Niirhber; Percent Number Percent Advanced 1 2% 2 5% 0 0% 0 0% Mastery 2 5% 8 19% 4 9% 0 0% Basic 27 66% 21 . 50% 14 34% 21 51% ApproachihgBasic 2 5% 3 7% 15 37% 15 37% Unsatisfactory 9 22% 8 19% 8 20% 5 12%

Total 41 100% 42 - 100% 41 100% 41 100%

See accompanying Independent accountants' report on applying agreed-upon procedures.

^ PARCC Results 17

Schedule 9 EDGAR P. HARNEY SPIRIT OF EXCELLENCE ACADEMY, INC. New Orleans, Louisiana

PARCC and iLEAP Tests For the Year Ended June 30,2015



Grade 3 Students Number Percent Number Percent Number Percent Number Percent Advanced 0 0% 2 4% 0 0% 0 0% Mastery 2 4% 6 13% 2 4% 2 5% Basic 15 33% 18 39% 14 30% 10 22% Approaching Basic 20 43% 11 24% 21 46% 20 43% Unsatisfactory 9 20% 9 20% 9 20% 14 30%

Total 46 100% 46 100% 46 100% 46 100%




Total 38 100% 38 100% 38 100% 38 100%




Total 44 100% 44 100% 44 100% 44 100%




Total 22 100% 22 100% 22 100% 22 100%


PARCC Results 18

Member American Institute of Certified Public.Accountants

Society of Louisiana Certified Public Accountants

mm ife Tervalon LW Certified Public AccountufUs

Alclde J. Tervalon, Jr., CPA Waldo J. Moret, Jr.. CPA Paul K.Andoh, Sr., CPA

Joseph A. Akanji, CPA


INDEPENDENT AUDITORS^ COMMENTS TO MANAGEMENT


In planning and performing our audit of the financial statements of Edgar P. Harney Spirit of Excellence Academy, Inc. (the School) as of and for the year ended June 30, 2015, in accordance with auditing st^dards generally accepted in the United States of America, we considered the School's internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in ihc circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School's internal control. Accordingly, we do not express an opinion on the effectiveness of the School's internal control.

During our audit we became aware of the following matters that are an opportunity for strengthening internal controls and operating efficiency. A separate report dated November 20, 2015, contains our report on the School's internal control. This letter does not affect our report dated November 20,2015, on the financial statements of the School.

MCL 2015-01 - Internal Controls Over Check Disbursements

During the course of our audit, we selected a sample of thirty (30) non-payroll related check disbursements for testing. The results of that testing indicated the following weaknesses in internal control:

o In twenty-seven (27) instances there was no documentation on the invoice indicating verification that the service was performed as requested, as required by the School's Accounting Policies and Procedures Manual; and

o In twenty-nine (29) instances, when payment was made, the mvoice (or other supporting documentation) along with the purchase authorization was not canceled (or otherwise defaced) to prevent duplicate payment, as required by the School's Accounting Policies and Procedures Manual.

4298 ELYSIAN FIB.DS AVENUE NEW ORLEANS. 17^70122 l-SO;) 264-8733 FAX (SO-!) 264-8295

6424 LAKEOVER RD.; SUITE A JACKSON, MS 39213

(601)366-2344 FAX {601) 366-8440

INDEPENDENT AUPITQRS' COMMENTS TO MANAGEMENT CONTINUED

To the Board of ,Directors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orleans, Louisiana Page 2

MLC 2015-01 -Interna! ipontrols Over Check Disbursements, continued

Recomm en dation

We recommend, that internal coiiitrbls over check disbursements be strengthened ensure the receipt of goods and services are evidenced on the invoice and supporting docimentation for check disbursements are cahceled (or otheivwse defaced) to prevent duplicate payment.

Management's Response and Planned Corrective Action

We concur. Management will ensiire -that receipt of goods ^d services rendered to the School are evidenced on the invoice and supporting documentation for check disbursements are canceled (or otherwise defaiped) to prevent duplicate payment.

MLC 2015-02 - Accounting Policies and Procedures Manual

The School maintains: ̂ Accosting Fdlictes, and Procedures Manual that was prepared by m independent consultant at the request, of the management of the School. We noted however, that many of the policies and procedures are not being followed in the day-to-day operations of the School, particularly involving the requirements Section 6; - Operating Procedures contained in the Accounting Ppiicies and Procedures Manual,

Recommendation

We recommend that the School adhere to the policies and procedures contained in its Accounting Policies and Procedures Manual and, if necessary, the appropriate modifications be made to the manual to conform to day-to-day operations.

INDEPENDENT AUDITORS^ COMMENTS TO MANAGEMENT CONTINUED

To the Board of Directors Edgar P. Harney Spirit of Excellence Academy, Inc. New Orleans, Louisiana Page 3

MLC 2015-02 - Accounting Policies and Procedures Manual, continued

Management's Response and Planned Corrective Action

We concur. Management will review its cunent Accounting Policies and Procedures manual and make the appropriate modifications, as necessary to conform to day-to-day operations.

Status of Prior Year Management Letter Comments

No matters were reported.

We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestions with various School personnel, and we will be pleased to discuss them in fluther detail at your convenience, to perform an additional study of these matters or to assist you in implementing the recommendations.

This communication is intended solely for the information and use of management, the Board of Directors, others within the School and the Louisiana Legislative Auditor and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distribute by the Louisiana Legislative Auditor as a public document


November 20,2015

ûno& Tervalon LLF îiêrtified Public Accountants

orleans parish charter school - edgar p. harney spirit of ... · spirit of exeellence academy, inc....

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