LAKESIDE ACADEMY, INC. FINANCIAL STATEMENTS JUNE … rpts/2016 lakeside academy.pdfThe Lakeside...

LAKESIDE ACADEMY, INC.

FINANCIAL STATEMENTS

JUNE 30, 2016


FOR THE FISCAL YEAR ENDED JUNE 30, 2016

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 Balance - Governmental Funds .................... 12 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance 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, 2016

The Lakeside Academy, Inc. ("Academy") is a public charter school operated in Palm Beach County, Florida, 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, 2016. 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 $409,371 (net position) for the fiscal year reported. This compared to the previous year when assets exceeded liabilities by $293,770. Total net position is comprised of the following:

$3,828 invested in capital assets which consist of furniture, fixtures, and equipment, net of accumulated depreciation.

$405,543 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, 2016 was approximately 115 students. 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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LAKESIDE ACADEMY, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2016 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, 2016, the Academy did not have any proprietary funds.

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JUNE 30, 2016 The summary of the Academy’s government-wide statement of net position is as follows:

Condensed Statement of Net Position Governmental Activities June 30, 2016 and 2015

2016 2015 Change Current and Other Assets $ 427,030 $ 315,647 $ 111,383 Capital Assets 3,828 8,153 (4,325) Total Assets 430,858 323,800 107,058 Current Liabilities 21,487 30,030 (8,543) Total Liabilities 21,487 30,030 (8,543) Net position $ 409,371 $ 293,770 $ 115,601 Invested in Capital Assets $ 3,828 $ 8,153 $ (4,325) Restricted - - - Unrestricted 405,543 285,617 119,926 $ 409,371 $ 293,770 $ 115,601 As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Academy, assets exceeded liabilities by $409,371 at June 30, 2016. A portion of the Academy’s net position (1%) reflects its net investment in capital assets. The Academy uses these capital assets to provide educational services; consequently, these assets are not available for future spending. An additional portion of the Academy’s net position (99%) represents an unrestricted net position that is available to meet the financial obligations of the Academy. At the end of the current fiscal year, the Academy is able to report positive balances in both categories of net position.

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JUNE 30, 2016

Condensed Statement of Activities

For the years 2016 and 2015 2016 2015 Change Program Revenues: Operating Grants and Contributions $ 70,205 $ 52,154 $ 18,051 Capital Grants and Contributions 33,441 37,564 (4,123) General Revenues: FEFP 862,022 715,310 146,712 Miscellaneous 3,077 16,493 (13,416) Interest 43 54 (11) Total Revenues 968,788 821,575 147,213 Functions/Program Expenses: Instructional services 340,113 382,715 (42,602) Pupil Personnel Services - 16,937 (16,937) Instructional Staff Training 110 5,480 (5,370) Board of Directors Services 12,545 8,176 4,369 School Administration 313,619 299,746 13,873 Facilities Operations 60,960 59,184 1,776 Fiscal Services 8,739 8,656 83 Student Transportation Services 59,281 7,810 51,471 Operation of Plant 39,834 36,274 3,560 Administrative Technology Services 13,661 13,299 362 Community Services - 752 (752) Unallocated Depreciation 4,325 5,850 (1,525) Total Expenses 853,187 844,879 8,308 Change in Net position 115,601 (23,304) 138,905 Net position – Beginning 293,770 317,074 (23,304) Net position – Ending $ 409,371 $ 293,770 $ 115,601 The Academy relies primarily on general revenues (i.e. FEFP dollars) to fund the expenses of the governmental activities. General revenues comprise 89% of total revenues. The increase in FEFP funding was due to the increase in FTE from 106 students in the prior year to 115 students in the current fiscal year-end. Instructional services decreased as a result of the Academy’s five-year options agreement on textbooks and workbooks purchased that is only needed to pay shipping costs for materials obtained in the 2015-2016 school year. The Academy did not need to purchase new furniture, fixtures and equipment in the current year. In the prior year a portion of the instructional services was reclassified to pupil personnel services due to grant reimbursement requirements. This adjustment was not necessary in fiscal year 2015-2016. Academy administration costs increased due to additional support staff needed to assist the new principal. Student transportation increased due to the Academy contracting with an independent bus company in order to replace the transportation previously provided by the District. Overall the Academy was able to maintain its positive net position for the year.

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MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2016

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 $865,142 in total revenues offset with $745,216 in expenditures. This resulted in an excess of revenues over expenditures in the amount of $119,926. Fund balance at the beginning of the year was $285,617. The beginning balance of $285,617, combined with the current year’s activity, resulted in an end of year fund balance of $405,543.

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 $33,441 in total revenues with offsetting expenditures of $33,441.

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 $70,205 in total revenues with offsetting expenditures of $70,205. DUE FROM OTHER AGENCY Due from other agency at June 30, 2016 consists of amounts due from the District for operating grant funding in the amount of $72,449.

CAPITAL ASSETS As of June 30, 2016, the Academy had $3,828 invested in capital assets, as reflected below. 2016 2015 Change Equipment and fixtures $ 25,726 $ 25,726 $ - Less: Accumulated depreciation (21,898) (17,573) (4,325) Capital Assets $ 3,828 $ 8,153 $ (4,325) 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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Governmental Business-Type Activities Activities Total

ASSETSCurrent Assets Cash and Cash Equivalents 309,190$ -$ 309,190$ Cash and Cash Equivalents - Walton Family Foundation 45,391 - 45,391 Due from Other Agency 72,449 - 72,449

Total Current Assets 427,030 - 427,030

Non-Current Assets Equipment and Fixtures (Total cost of $25,726, net of accumulated depreciation of $21,898) 3,828 - 3,828

TOTAL ASSETS 430,858 - 430,858

LIABILITIES Salaries and Wages Payable 21,487 - 21,487

TOTAL LIABILITIES 21,487 - 21,487

NET POSITION Net Investment in Capital Assets 3,828 - 3,828 Unrestricted 405,543 - 405,543

TOTAL NET POSITION 409,371$ -$ 409,371$

LAKESIDE ACADEMY, INC.STATEMENT OF NET POSITION

June 30, 2016

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

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

Program Activities Expenses Services Contributions Contributions Activities Activities Total

Governmental Activities: Instructional Services 340,113$ -$ 70,205$ -$ (269,908)$ -$ (269,908)$ Instructional Staff Training 110 - - - (110) - (110) Board of Directors Services 12,545 - - - (12,545) - (12,545) School Administration 313,619 - - - (313,619) - (313,619) Facilities Operations 60,960 - - 33,441 (27,519) - (27,519) Fiscal Services 8,739 - - - (8,739) - (8,739) Student Transportation Services 59,281 - - - (59,281) - (59,281) Operation of Plant 39,834 - - - (39,834) - (39,834) Administrative Technology Services 13,661 - - - (13,661) - (13,661) Unallocated Depreciation 4,325 - - - (4,325) - (4,325)

Total Government Activities 853,187$ -$ 70,205$ 33,441$ (749,541) - (749,541)

General Revenues FEFP Income 862,022 - 862,022 Miscellaneous 3,077 - 3,077 Interest Income 43 - 43

Total General Revenues 865,142 - 865,142

Change in Net Position 115,601 - 115,601

Net Position-Beginning 293,770 - 293,770

Net Position-Ending 409,371$ -$ 409,371$

Net (Expense) Revenues and Change in Net Position

LAKESIDE ACADEMY, INC.GOVERNMENT-WIDE STATEMENT OF ACTIVITIES

June 30, 2016

Program Revenues


Capital TotalGeneral Outlay Governmental

Fund Fund FundsASSETS Cash and Cash Equivalents 309,190$ -$ 309,190$ Cash and Cash Equivalents - Walton Family Foundation 45,391 - 45,391 Due from Other Agency 72,449 2,807 75,256

TOTAL ASSETS 427,030$ 2,807$ 429,837$

LIABILITIES Salaries and Wages Payable 21,487$ -$ 21,487$ Due to Other Funds - 2,807 2,807

TOTAL LIABILITIES 21,487 2,807 24,294

FUND BALANCE Unassigned 405,543 - 405,543

TOTAL FUND BALANCE 405,543 - 405,543

TOTAL LIABILITIES AND FUND BALANCE 427,030$ 2,807$ 429,837$

LAKESIDE ACADEMY, INC.BALANCE SHEET

June 30, 2016GOVERNMENTAL FUNDS


Total Fund Balance - Governmental Funds 405,543$

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

Governmental capital assets 25,726$ Less accumulated depreciation (21,898)

3,828

Net Position of Governmental Activities 409,371$

For the Fiscal Year Ended June 30, 2016

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) 862,022$ -$ -$ 862,022$ Capital Outlay - 33,441 - 33,441 Title One - - 44,378 44,378 IDEA - - 25,827 25,827 Miscellaneous 3,077 - - 3,077 Interest 43 - - 43

Total revenues 865,142 33,441 70,205 968,788

Expenditures: Instructional Services 269,908 - 70,205 340,113 Instructional Staff Training 110 - - 110 Board of Directors Services 12,545 - - 12,545 School Administration 313,619 - - 313,619 Facilities Operations 27,519 33,441 - 60,960 Fiscal Services 8,739 - - 8,739 Student Transportation Services 59,281 - - 59,281 Operation of Plant 39,834 - - 39,834 Administrative Technology Services 13,661 - - 13,661

Total expenditures 745,216 33,441 70,205 848,862

Excess of Revenues over Expenditures 119,926 - - 119,926

Fund balance - July 1, 2015 285,617 - - 285,617

Fund balance - June 30, 2016 405,543$ -$ -$ 405,543$

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

For the Fiscal Year Ended June 30, 2016GOVERNMENTAL FUNDS


Net Changes in Fund Balance - Governmental Funds 119,926$

Expenditures for Cost of Assets - Less current year depreciation (4,325)

(4,325)

Change in Net Position of Governmental Activities 115,601$

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

AND CHANGES IN FUND BALANCE OF GOVERNMENTAL

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. This is the amount of depreciation expense of ($4,325) in excess of capitalized capital outlay in the current period.

FUNDS TO THE STATEMENT OF ACTIVITIESFor the Fiscal Year Ended June 30, 2016



NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

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 Academy is contained in Section 1002.33, Florida Statutes. The Academy 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 Academy 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 Academy 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 Academy. The Academy 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 Academy is financially accountable and other organizations for which the nature and significance of their relationship with the Academy are such that exclusion would cause the Academy's basic financial statements to be misleading or incomplete. Based on these criteria, no component units are included within the reporting entity of the Academy. 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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NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

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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LAKESIDE ACADEMY, INC. NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2016 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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JUNE 30, 2016 NOTE B - CONCENTRATION OF RISK The Academy 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 Academy’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 ended on June 30, 2016. The Academy has surrendered its charter voluntarily because they could not obtain a busing contract. NOTE D - OFFICE EQUIPMENT AND FIXTURES The changes in office equipment and fixtures during the year ended June 30, 2016 were as follows: Balance Balance 06/30/15 Additions Deletions 06/30/16 Equipment and fixtures $ 25,726 $ - $ - $ 25,726 Less: Accumulated depreciation (17,573) (4,325) - (21,898) Net capital assets $ 8,153 $ (4,325) $ - $ 3,828 The Academy removed from inventory two computers that were purchased with private donor funds in the prior fiscal year-ended June 30, 2014 for $4,435 and the corresponding accumulated depreciation of $1,051. The remaining asset value of $3,384 was expensed. Depreciation expense for year ended June 30, 2016 was $4,325. 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 total lease payments were $2,240 for the year ended June 30, 2016

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JUNE 30, 2016 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 31, 2017 and with monthly rent and utility is $5,245. 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 2017 $ 68,668 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 2012-2015 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 August 23, 2016, the date that the financial statements were available to be issued. NOTE K - RELATED PARTY During the period August 1, 2015 through April 3, 2016 a consultant was retained by the Academy. The consultant is the founder and Executive Director of Lakeside Academy.

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REQUIRED SUPPLEMENTARY INFORMATION

Original and Final

Budget Actual VarianceRevenues: School District of Palm Beach County (FEFP) 774,616$ 862,022$ 87,406$ Miscellaneous 3,850 3,077 (773) Interest - 43 43

Total revenues 778,466 865,142 86,676

Expenditures: Instructional Services 322,200 269,908 52,292 Instructional Staff Training Services 4,000 110 3,890 Board of Director Services 8,200 12,545 (4,345) School Administration 303,307 313,619 (10,312) Facilities Operations 23,500 27,519 (4,019) Fiscal Services 8,800 8,739 61 Student Transportation Services 58,500 59,281 (781) Operation of Plant 35,400 39,834 (4,434) Administrative Technology Services 14,500 13,661 839

Total expenditures 778,407 745,216 33,191

Excess (Deficiency) of Revenues over Expenditures 59$ 119,926 119,867$

Fund balance - July 1, 2015 285,617

Fund balance - June 30, 2016 405,543$

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

GENERAL FUNDFor the Fiscal Year Ended June 30, 2016


Original and Capital Original Special OriginalFinal Outlay Final Revenue Final Governmental

Budget Fund Variance Budget Fund Variance Budget Funds VarianceRevenues: Title One and IDEA -$ -$ -$ 46,000$ 70,205$ 24,205$ 46,000$ 70,205$ 24,205$ Capital Outlay 37,600 33,441 (4,159) - - - 37,600 33,441 (4,159) Interest - - - - - - - - -

TOTAL REVENUES 37,600 33,441 (4,159) 46,000 70,205 24,205 83,600 103,646 20,046

Expenditures: Instructional Services - - - 46,000 70,205 24,205 46,000 70,205 24,205 Instructional Support Services - - - - - - - - - Pupil Personnel Services - - - - - - - - - Instructional Staff Training Services - - - - - - - - - Board of Directors Services - - - - - - - - - School Administration - - - - - - - - - Facilities Operations 37,600 33,441 (4,159) - - - 37,600 33,441 (4,159)

TOTAL EXPENDITURES 37,600 33,441 (4,159) 46,000 70,205 24,205 83,600 103,646 20,046

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

Fund Balances - July 1, 2015 - - -

Fund Balances - June 30, 2016 -$ -$ -$

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, 2016


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