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Pinecrest Academy Wesley ChapelWL# 4332(A Charter School under Pinecrest Academy, Inc.)Wesley Chapel, FloridaFinancial Statements andIndependent Auditors' ReportJune 30, 2021
TABLE OF CONTENTSGeneral Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Independent Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Management’s Discussion and Analysis(Required Supplementary Information) . . . . . . . . . . . . . . . . . . . .Basic Financial Statements:Government-wide Financial Statements:Statement of Net Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fund Financial Statements:Balance Sheet - Governmental Funds. . . . . . . . . . . . . . . . . . .Reconciliation of the Governmental Fund BalanceSheet to the Statement of Net Position. . . . . . . . . . . . . . . . . .Statement of Revenues, Expenditures and Changesin Fund Balance - Governmental Funds. . . . . . . . . . . . . . . . .Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balanceof Governmental Funds to the Statement of Activities. . . . . .Notes to the Basic Financial Statements . . . . . . . . . . . . . . . . . . .12-34-89101112131415-28Required Supplementary Information:Budgetary Comparison Schedule. . . . . . . . . . . . . . . . . . . . . . .29-30Independent Auditor’s Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based on anAudit of Financial Statements Performed in Accordance WithGovernment Auditing Standards. . . . . . . . . . . . . . . . . . . . . . . .Management Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31-3233-34
Pinecrest Academy Wesley ChapelWL# 433233347 State Road 54Wesley Chapel, Florida 335432020-2021BOARD OF DIRECTORSCarlos Alvarez, Chair and DirectorShannie Sadesky, Treasurer, DirectorJuan Molina, Secretary, DirectorErin Demirjian, DirectorCarlos Coello, DirectorAlbert Maillo, DirectorSheila Gonzalez, DirectorSCHOOL ADMINISTRATIONMs. Aimee Mielke, Principal
INDEPENDENT AUDITORS' REPORTTo the Board of Directors ofPinecrest Academy Wesley ChapelWesley Chapel, FloridaWe have audited the accompanying financial statements of the governmental activities, eachmajor fund, and the aggregate remaining fund information of Pinecrest Academy Wesley Chapel(the “School”), a charter school under Pinecrest Academy, Inc., which is a component unit of theSchool Board of Pasco County, Florida, as of, and for the year ended June 30, 2021, and therelated notes to the financial statements which collectively comprise the School’s basic financialstatements as listed in the table of contents.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States of America. Thosestandards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity’s internal control.Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinions.
OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, each major fund, and theaggregate remaining fund information of Pinecrest Academy Wesley Chapel as of June 30, 2021,and the respective changes in financial position for the year then ended in accordance withaccounting principles generally accepted in the United States of America.Other MattersAs described in Note 1, the accompanying financial statements referred to above present only thefinancial position of Pinecrest Academy Wesley Chapel as of June 30, 2021, and the respectivechanges in financial position for the year then ended, and is not intended to be a completepresentation of Pinecrest Academy, Inc. These financial statements do not purport to and do notpresent fairly the financial position of Pinecrest Academy, Inc. as of June 30, 2021 and itschanges in financial position for the year then ended in conformity with accounting principlesgenerally accepted in the United States of America.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated August31, 2021, on our consideration of the School's internal control over financial reporting and on ourtests of its compliance with certain provisions of laws, regulations, contracts, grant agreementsand other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to providean opinion on the internal control over financial reporting or on compliance. That report is anintegral part of an audit performed in accordance with Government Auditing Standards inconsidering the School’s internal control over financial reporting and compliance.Required Supplementary InformationAccounting principles generally accepted in the United States of America require that themanagement’s discussion and analysis and budgetary comparison information on pages 4through 8 and 29 through 30 be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States ofAmerica, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management’s responses to ourinquiries, the basic financial statements, and other knowledge we obtained during our audit of thebasic financial statements. We do not express an opinion or provide any assurance on theinformation because the limited procedures do not provide us with sufficient evidence to expressan opinion or provide any assurance.Coral Gables, FloridaAugust 31, 2021CERTIFIED PUBLIC ACCOUNTANTS3
Management’s Discussion and AnalysisPinecrest Academy Wesley Chapel(A Charter School Under Pinecrest Academy, Inc.)June 30, 2021The corporate officers of the Pinecrest Academy Wesley Chapel (the “School”) have preparedthis narrative overview and analysis of the School’s financial activities from inception throughJune 30, 2021, which is the School’s first year of operations.Financial Highlights1. The net position of the School at June 30, 2021 was 1,055,095.2. At year-end, the School had current assets of 1,557,096.3. The net position of the School increased by 1,055,095 during the year.4. The unassigned fund balance at year end was 440,602.Overview of the Financial StatementsThis discussion and analysis are intended to serve as an introduction to the School’s basicfinancial statements. The School’s financial statements for the year ended June 30, 2021 arepresented in accordance with GASB Codification Section 2200. The financial statements havethree components: 1) government-wide financial statements, 2) fund financial statements, and 3)notes to the financial statements. This report also contains other required supplementaryinformation in addition to the basic financial statements themselves.Government-Wide Financial StatementsThe government-wide financial statements are designed to provide readers with a broad overviewof the School’s finances, in a manner similar to a private-sector business.The Statement of Net Position presents information on all of the School’s assets, deferredoutflow of resources, liabilities and deferred inflows of resources. The difference is reported asnet position. Over time increases or decreases in net position may serve as an indicator ofwhether the financial position of the School is improving or deteriorating.The Statement of Activities presents information on how the School’s net position changedduring the fiscal year. All changes in net position are reported when the underlying event occurswithout regard to the timing of related cash flows. Accordingly, revenues and expenses arereported in this statement for some items that will only result in cash flows in future fiscalperiods.The government-wide financial statements can be found on pages 9 – 10 of this report.Fund Financial StatementsA “fund” is a collection of related accounts grouped to maintain control over resources that havebeen segregated for specific activities, projects, or objectives. The School like other state andlocal governments uses fund accounting to ensure and report compliance with finance-relatedlegal requirements.4
All of the funds of the School are governmental funds. Governmental Funds are used to accountfor essentially the same functions reported as governmental activities in the government-widefinancial statements. Governmental fund financial statements, however, focus on near-terminflows and outflows of spendable resources, as well as on the balances of spendable resourceswhich are available at the end of the fiscal year. Such information may be used to evaluate agovernment’s requirements for near-term financing.The Board of the School adopts an annual appropriated budget for its major governmental funds.A budgetary comparison statement has been provided for the major governmental funds todemonstrate compliance with the School’s budget.The basic governmental fund financial statements can be found on pages 11 - 14 of this report.Notes to Financial StatementsThe notes to the financial statements provide additional information that is essential to a fullunderstanding of the data provided in the government-wide and fund financial statements.The notes to the financial statements can be found on pages 15 - 29 of this report.GOVERNMENT-WIDE FINANCIAL ANALYSISAs noted earlier, net position may serve over time as a useful indicator of a charter school’sfinancial position. In the case of the School, assets exceeded liabilities by 1,055,095 at the closeof the fiscal year. A summary of the School’s net position as of June 30, 2021 is as follows:CashInvestmentsPrepaid expensesDue from other agenciesDeposits receivable, long termCapital assets, netTotal Assets Deferred outflows of 0,3932,942,489-Accounts payable and accrued liabilitiesDue to Pinecrest Academy, Inc.Due to Pinecrest Academy, Inc. - Long termLong-term payableTotal d inflows of resources-Net Position:Net investment in capital assets and depositsUnrestrictedTotal Net Position 188,553866,5421,055,095At the end of the year, the School is able to report positive balances in its total net position.5
A summary and analysis of the School’s revenues and expenses for the years ended June 30,2021 is as follows:2021REVENUESProgram RevenuesCapital outlay fundingOperating grants and contributionsLunch program feesCharges for servicesGeneral RevenuesLocal sources (FTE and other non specific)Other revenuesTotal Revenues EXPENSESGovernmental Activities:InstructionBoardGeneral administrationSchool administrationFiscal servicesFood servicesCentral servicesOperation of plantMaintenance of plantAdministrative technology servicesCommunity servicesTotal ExpensesIncrease in Net PositionNet Position at Beginning of YearNet Position at End of Year This is the School’s first year of operations. The School had an increase in its net position of 1,055,095 for the current year.Lease of FacilityThe School leases a facility located at 33347 State Road 54, Wesley Chapel, FL, 33543.Capital Improvement RequirementsThe School maintains a continuous capital improvements program to enhance facilities andupdate fixtures and equipment as required.6
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDAs noted earlier, the School uses fund accounting to ensure and demonstrate compliance withfinance-related legal requirements.Governmental FundsThe focus of the School’s governmental funds is to provide information on near-term inflows,outflows, and balances of spendable resources. Such information is useful in assessing theSchool’s financing requirements. In particular, the unassigned fund balance may serve as auseful measure of a government’s net resources available for spending at the end of the fiscalyear.Most of the School’s operations are funded in the General Fund. The majority of the GeneralFund revenues are distributed to the School by the District through the Florida EducationFinance Program (FEFP), which uses formulas to distribute state funds and an amount of localproperty taxes (i.e., required local effort) established each year by the Florida Legislature.At the end of the fiscal year, the School’s governmental general fund reported ending fundbalance of 816,345. The fund balance unassigned and available for spending at the School’sdiscretion is 440,602. These funds will be available for the School’s future ongoing operations.Capital AssetsThe School’s investment in capital assets as of June 30, 2021 amounts to 1,380,393 (net ofaccumulated depreciation). This investment in capital assets includes building improvements,audiovisual and software and furniture, fixtures and equipment. The School had 1,196,840 inlong term debt associated to its capital assets.7
Governmental Fund Budget Analysis and HighlightsPrior to the start of the School’s fiscal year, the Board of the Charter School adopted an annualbudget. A budgetary comparison statement has been provided for the governmental funds todemonstrate compliance with the School’s budget.Governmental FundOriginalBudgetREVENUESProgram RevenuesState capital outlay fundingFederal sourcesLunch programGeneral RevenuesFTE and other nonspecific revenuesCharges and other revenuesTotal Revenues CURRENT EXPENDITURESGovernmental ActivitiesInstructionBoardGeneral administrationSchool administrationFood servicesFiscal servicesCentral servicesOperation of plantMaintenance of plantAdministrative technology servicesCommunity servicesTotal Current Expenditures262,500812,500-Final Budget 461,905856,337-Actual 461,905872,3653004,335,300247,525 5,657,8254,487,191251,983 6,057,4164,500,949211,570 6,047,089 300276,30042,000 5,008,572 6,705178,69953,190 4,845,992 2,226143,98252,81512,191 4,656,876Most variances occurred as a result of the budget adopted being more conservative than actualresults for the year.Requests for InformationThis financial report is intended to provide a general overview of the finances of the CharterSchool. Requests for additional information may be addressed to Ms. Ana Martinez atAcademica Dade, LLC 6340 Sunset Drive, Miami, Florida 33143.8
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Statement of Net PositionJune 30, 2021GovernmentalActivitiesAssetsCurrent assets:CashInvestmentsDue from other agenciesPrepaid expensesTotal Current Assets Capital assets, non-depreciableCapital assets, depreciableLess: accumulated ,715,511(335,118)1,380,393Deposits receivable5,000Total Assets2,942,489Deferred Outflows of Resources-LiabilitiesCurrent liabilities:Salaries and wages payableAccounts payableDue to Pinecrest Academy, Inc.Total Current Liabilities150,595539,92930690,554Due to Pinecrest Academy, Inc.Notes payableTotal Long-Term Liabilities803,103393,7371,196,840Deferred Inflows of Resources-Net Position:Net investment in capital assets and depositsUnrestrictedTotal Net Position The accompanying notes are an integralpart of these financial statements.9188,553866,5421,055,095
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Statement of ActivitiesFor the year ended June 30, 2021Program RevenuesNet (Expense)Charges forPrimary rants andGrants andContributions Contributionsand Changesin Net PositionGovernmental activities:Instruction 2,994,431 148,965 872,365 - (1,973,101)Board22,575---(22,575)General administration82,501---(82,501)School 33,356300150,572-Fiscal servicesFood servicesCentral servicesOperation of plantMaintenance of plantAdministrative technology servicesCommunity servicesTotal governmental 71)General revenues:FTE and other nonspecific revenues4,500,949Interest and other revenues217Change in net position1,055,095Net position, beginningNet position, endingThe accompanying notes are an integralpart of these financial statements.10 1,055,095
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Balance Sheet - Governmental FundsJune 30, 2021General FundAssetsCashInvestmentsDue from other agenciesDue from fundPrepaid expensesTotal Assets undsFunds50,197799,227849,424 - ,197375,74350,197440,602866,542 1,506,899 849,424Deferred Outflows of ResourcesLiabilitiesSalaries and wages payableAccounts payableDue to Pinecrest Academy, Inc.Due to fundTotal LiabilitiesDeferred Inflows of ResourcesFund balanceNonspendable, not in spendable formAssignedUnassignedTotal Liabilities, Deferred Inflows ofResources and Fund The accompanying notes are an integralpart of these financial statements.11- - 2,356,323
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net PositionJune 30, 2021Total Fund Balance - Governmental Funds 866,542Amounts reported for governmental activities in the statement of net positionare different because:Capital assets of 1,715,511 net of accumulateddepreciation of 335,118 used in governmental activitiesare not financial resources and therefore are not reportedin the fund.1,380,393Deposits receivable are considered long term and are notfinancial resources and therefore are not reported in thegovernmental funds.5,000Long term liabilities in governmental activities arefinancial resources and therefore are not reported in thegovernmental funds.Total Net Position - Governmental Activities(1,196,840) The accompanying notes are an integralpart of these financial statements.121,055,095
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental FundsFor the year ended June 30, 2021SpecialRevenueFundGeneral FundRevenues:State capital outlay fundingState passed through localFederal sourcesLunch program feesCharges and other revenueTotal Revenues Expenditures:CurrentInstructionBoardGeneral administrationSchool administrationFood servicesFiscal servicesCentral servicesOperation of plantMaintenance of plantAdministrative technology servicesCommunity servicesCapital Outlay:Other capital outlayTotal Expenditures4,500,949149,1824,650,131Other financing sources (uses)Transfers in (out)DepositsNet change in long term liabilitiesNet change in fund balance 461,905461,905 00)1,196,840816,34550,197-866,542----Fund Balance at beginning of year 52,8155,024,166Excess of revenues over expendituresFund Balance at end of year Non-MajorGovernmentalFunds816,345The accompanying notes are an integralpart of these financial statement.13 50,197 - 866,542
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balanceof Governmental Funds to the Statement of ActivitiesFor the year ended June 30, 2021Net Change in Fund Balance - Governmental Funds 866,542Amounts reported for governmental activities in the statement of activities aredifferent because:Governmental funds report capital outlays asexpenditures. However, in the statement of activities, thecost of those assets is allocated over their estimateduseful lives as depreciation expense. This is the amountby which capital outlays of 1,715,511 differed fromdepreciation expense of 335,118.1,380,393Deposits receivable are considered long term and are notfinancial resources and therefore are not reported in thegovernmental funds.5,000Increase in long-term liabilities is an resource in thegovernmental funds, but an increase of such liabilitiesincreases long term liabilities in the statement of netposition. This is the amount by which increase in longterm liabilities of 1,196,840 exceeded collection of 0.Change in Net Position of Governmental Activities(1,196,840) 1,055,095The accompanying notes are an integralpart of these financial statements.14
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Notes to Financial StatementsJune 30, 2021Note 1 – Summary of Significant Accounting PoliciesPinecrest Academy Wesley Chapel (the "School"), is a charter school sponsored by the DistrictSchool Board of Pasco County, Florida (the “District”). The Schools’ charter is held by PinecrestAcademy, Inc., a not-for-profit corporation organized pursuant to Chapter 617, Florida Statutes,the Florida Not-For-Profit Corporation Act. The governing body of the School is the board ofdirectors of Pinecrest Academy, Inc., which is composed of seven members and also governsother charter schools. The board of directors has determined that no component units exits thatwould require inclusion in the School’s financial statements.The general operating authority of the School is contained in Section 1002.33, Florida Statutes.The School operates under a charter granted by the sponsoring district, the School Board ofPasco County, Florida. The School is considered a component unit of the District. The currentcharter expires on June 30, 2023 and it can be renewed in accordance with law. A charter canalso be terminated before its date of expiration for reasons set forth in the charter and Section1002.33 of the Florida Statutes.The School is located in Wesley Chapel, Florida for students from kindergarten through eighthgrade and is funded by the District. These financial statements are from inception through June30, 2021, when on average 602 students were enrolled for the school year in grades Kindergartenthrough six. This is the School’s first year of operations.Basis of presentationThe School’s accounting policies conform to accounting principles generally accepted in theUnited States as applicable to state and local governments. The Governmental AccountingStandards Board (“GASB”) is the accepted standard setting body for establishing governmentalaccounting and financial reporting principles. Accordingly, the basic financial statementsinclude both the government-wide and fund financial statements.Government-wide and Fund Financial StatementsGovernment-wide Financial StatementsThe government-wide financial statements include the statement of net position and thestatement of activities. These statements report information about the School as a whole. Anyinternal interfund activity has been eliminated from these financial statements. Both statementsreport only governmental activities as the School does not engage in any business type activities.These statements do not include fiduciary funds.15
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Notes to Financial StatementsJune 30, 2021Note 1 – Summary of Significant Accounting Policies (continued)The statement of activities reports the expenses of a given function offset by program revenuesdirectly connected with the functional program. A function is an assembly of similar activitiesand may include portions of a fund or summarize more than one fund to capture the expensesand program revenues associated with a distinct functional activity. Program revenues include:(1) charges for services, such as food service and student activity fees; (2) operating grants suchas the National School Lunch Program, Federal grants, and other state allocations; and (3) capitalgrants specific to capital outlay. In addition, revenues not classified ad program revenues areshown ad general revenues, which include Florida Education Finance Program (FEFP) revenues,and other miscellaneous sources.Fund Financial StatementsFund financial statements are provided for governmental funds. The operations of the funds areaccounted for with a separate set of self-balancing accounts that comprise its assets, liabilities,equity, revenues and expenditures. The School reports the following major governmental fundswith all other non-major funds aggregated in a single column:General Fund - is the School’s primary operating fund. It accounts for all financial resources ofthe school, except those required to be accounted for in another fund.Special Revenue Fund – accounts for specific revenues, such as federal funding, federal lunchprogram, and COVID-19 emergency relief funding that are legally restricted to expenditures forparticular purposes. Also, accounts for resources of the School’s Internal Fund, which is used toadminister monies collected in connection with school, student athletics, class, and club activities.Measurement Focus and Basis of AccountingThe financial statements of the School are prepared in accordance with generally acceptedaccounting principles (GAAP). The School’s reporting entity applies all relevant GovernmentalAccounting Standards Board (GASB) Codification of Accounting and Financial ReportingGuidance.The government-wide statements report using the economic resources measurement focus andthe full accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of related cash flows.16
Pinecrest Academy Wesley Chapel(A charter school under Pinecrest Academy, Inc.)Notes to Financial StatementsJune 30, 2021Note 1 – Summary of Significant Accounting Policies (continued)The School recognizes assets of non-exchange transactions in the period when the underlyingtransaction occurs, when an enforceable legal claim has arisen, or when all eligibilityrequirements are met. Revenues are recognized, on the modified accrual basis, when they aremeasurable and available. Non-exchange transactions occur when the school provides (orreceives) value to (from) another party without receiving (or giving) equal or nearly equal valuein return. Most donations are examples of non-exchange transactions. Revenues from grants anddonations are recognized on the accrual basis, in the fiscal year in which all eligibilityrequirements have been satisfied.Governmental fund financial statements report using the current financial resources measurementfocus and the modified accrual basis of accounting. Revenues are recognized when they are bothmeasurable and available. “Measurable” means the amount of the transaction can be determined.“Available” means collectible within the current period or soon enough thereafter to payliabilities of the current period. The School considers revenues to be available if they arecollected within 60 days of the end of the fiscal year.Florida Education Finance Program (FEFP) revenues are recognized whe
Pinecrest Academy Wesley Chapel . WL# 4332 (A Charter School under Pinecrest Academy, Inc.) Wesley Chapel, Florida . Financial Statements and . Independent Auditors' Report
