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THE ELYSIAN CHARTER SCHOOL OF HOBOKENHOBOKEN, NEW JERSEYCOMPREHENSIVE ANNUALFINANCIAL REPORTFOR THE FISCAL YEAR ENDED JUNE 30, 2021
THE ELYSIAN CHARTER SCHOOL OF HOBOKENCOMPREHENSIVE ANNUAL FINANCIAL REPORTFISCAL YEAR ENDED JUNE 30, 2021
THE ELYSIAN CHARTER SCHOOL OF HOBOKENThe Elysian Charter School of HobokenBoard of TrusteesHoboken, New JerseyComprehensive Annual Financial ReportFor The Fiscal Year Ended June 30, 2021
COMPREHENSIVE ANNUAL FINANCIAL REPORTOF THETHE ELYSIAN CHARTER SCHOOL OF HOBOKENHOBOKEN, NEW JERSEYFOR THE FISCAL YEAR ENDED JUNE 30, 2021Prepared byThe Elysian Charter School of HobokenFinance DepartmentAndMeshinsky & Associates LLC, CPAs
STATE BOARD OF EDUCATIONKATHY A. GOLDENBERG .BurlingtonPresidentANDREW J. MULVIHILL .SussexVice PresidentARCELIO APONTE. . .MiddlesexMARY BETH BERRY HunterdonELAINE BOBROVE .CamdenFATIMAH BURNAM-WATKINS .UnionRONALD K. BUTCHER .GloucesterJACK FORNARO .WarrenMARY ELIZABETH GAZI . .SomersetNEDD JAMES JOHNSON, Ed. D .SalemERNEST P. LEPORE .HudsonJOSEPH RICCA, JR., Ed.D . .MorrisSYLVIA SYLVIA-CIOFFI .MonmouthAngelica Allen-McMillian Acting Commissioner of EducationState Board of Education
THE ELYSIAN CHARTER SCHOOL OF HOBOKENTABLE OF CONTENTSPageINTRODUCTORY SECTION . 1Letter of Transmittal . 2Organizational Chart . 6Roster of Officials. 7Consultants and Advisors . 8FINANCIAL SECTION . 9Independent Auditor’s Report . 10REQUIRED SUPPLEMENTARY INFORMATION – PART I . 13Management’s Discussion and Analysis . 14BASIC FINANCIAL STATEMENTS. 20SECTION A – CHARTER SCHOOL–WIDE FINANCIAL STATEMENTS . 21A-1A-2Statement of Net Position. 22Statement of Activities . 23SECTION B – FUND FINANCIAL STATEMENTS . 24GOVERNMENTAL FUNDS . 25B-1B-2B-3Balance Sheet . 26Statement of Revenues, Expenditures, and Changes in Fund Balance . 27Reconciliation of the Statements of Revenues, Expenditures, andChanges in Fund Balances of Governmental Funds to the Statement ofActivities . 28PROPRIETARY FUNDS . 29B-4B-5B-6Statement of Fund Net Position . 30Statement of Revenues, Expenses, and Changes in Net Position . 31Statement of Cash Flows . 32FIDUCIARY FUNDS . 33B-7Statement of Fiduciary Net Position . 34NOTES TO THE FINANCIAL STATEMENTS . 35REQUIRED SUPPLEMENTARY INFORMATION – PART II . 67SECTION C – BUDGETARY COMPARISON SCHEDULES . 68C-1C-2Budgetary Comparison Schedule – General Fund . 69Budgetary Comparison Schedule – Special Revenue Fund. 71NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION . 72C-3Budget-To-GAAP Reconciliation . 73
THE ELYSIAN CHARTER SCHOOL OF HOBOKENTABLE OF CONTENTSPageREQUIRED SUPPLEMENTARY INFORMATION – PART III . 74SCHEDULE L - SCHEDULES RELATED TO ACCOUNTING AND REPORTINGFOR PENSIONS (GASB 68) . 75L-1L-2L-3Schedules of the District’s Proportionate Share of the Net PensionLiability - PERS . 76Schedules of District Contributions - PERS. 77Schedules of the District’s Proportionate Share of the Net PensionLiability - TPAF . N/ANOTES TO REQUIRED SUPPLEMENTARY INFORMATION III . 78OTHER SUPPLEMENTARY INFORMATION . 80SECTION E – SPECIAL REVENUE FUND . 81E-1Combining Schedule of Revenues and Expenditures – Budgetary Basis . 82SECTION G – PROPRIETARY FUNDS . 83SECTION H – FIDUCIARY FUNDS . 84H-1H-3H-4Combining Statement of Fiduciary Net Position . 85Student Activity Agency Fund Schedule of Receipts and Disbursements . 86Payroll Agency Fund Schedule of Receipts and Disbursements . 87STATISTICAL SECTION (UNAUDITED) . 88INTRODUCTION TO THE STATISTICAL SECTION. 89FINANCIAL TRENDS . 90J-1J-2J-3J-4J-5Net Assets/Position by Component . 91Changes in Net Assets/Position . 92Fund Balances – Governmental Funds . 93Changes in Fund Balances – Governmental Funds . 94General Fund Other Local Revenue by Source (NJ) . 95DEMOGRAPHIC AND ECONOMIC INFORMATION . N/AJ-14J-15Demographic and Economic Statistics . N/APrincipal Employers, Current and Ten Years Ago . N/AOPERATING INFORMATION . 97J-16J-17J-18J-20J-21Full-Time Equivalent Charter School Employees by Function/Program . 98Operating Statistics . 99School Building Information . N/AInsurance Schedule. 100Charter School Performance Framework, Financial Performance, FiscalRatios . 101
THE ELYSIAN CHARTER SCHOOL OF HOBOKENTABLE OF CONTENTSPageSINGLE AUDIT SECTION . 102K-1K-2K-3K-4K-5K-6K-7Independent Auditor’s Report on Internal Control Over Financial Reportingand On Compliance and Other Matters Based On an Audit of FinancialStatements Performed In Accordance With G o v e r n m e n tAuditing Standards . 103Independent Auditor’s Report on Compliance For Each Major StateProgram; Report on Internal Over Compliance; And Report on Scheduleof Expenditures of State Finance required by OMB New Jersey OMBCircular04-04. 105Schedule of Expenditures of Federal Awards . 108Schedule of Expenditures of State Financial Assistance – Schedule B . 109Notes to Schedules of Expenditures of Awards and Financial Assistance . 110Schedule of Findings and Questioned Costs . 113Summary Schedule of Prior Audit Findings and Questioned Costs asPrepared by Management . 116
INTRODUCTORY SECTION1
“A Positively Different Public School”1460 Garden Street - Hoboken, NJ 07030201-876-0102 – Fax 201-876-9576 –www.ecsnj.org – Susan Grierson, DirectorJuly 1, 2021The Honorable President and MembersOf the Board of TrusteesThe Elysian Charter School of HobokenHoboken, New JerseyDear Board Members:The comprehensive annual financial report of The Elysian Charter School of Hoboken (the “CharterSchool”) for the fiscal year ended June 30, 2021, is hereby submitted. Responsibility for both the accuracyof the data and completeness and fairness of the presentation, including all disclosures, rests with themanagement and Board of Trustees (the “Board”). To the best of our knowledge and belief, the datapresented in this report is accurate in all material respects and is reported in a manner designed to presentfairly the basic financial statements and results of operations of Elysian Charter School. All disclosuresnecessary to enable the reader to gain an understanding of the Charter School’s financial activities havebeen included.The comprehensive annual financial report is presented in four sections: introductory, financial, statisticaland single audit. The introductory section includes this transmittal letter, the Charter School’sorganizational Charter, roster of officials and a list of consultants and advisors. The financial sectionincludes the Independent Auditors’ Report, management’s discussion and analysis, the basic financialstatements and notes providing an overview of the Charter School’s financial position and operating results,and supplementary schedules providing detailed budgetary information. The statistical section includesselected economic and demographic information, financial trends and the fiscal capacity of the CharterSchool, generally presented on a multi-year basis. The Charter School is required to undergo an annualsingle audit in conformity with the provision of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the NewJersey’s OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and StateAid. Information related to this single audit, including the auditors’ reports on the internal control andcompliance with applicable laws, regulations, contracts and grants along with findings and questioned costs,are included in the single audit section of this report.1) REPORTING ENTITY AND ITS SERVICES:The Elysian Charter School of Hoboken is an independent reporting entity within the criteria adopted bythe Governmental Accounting Standards Board (“GASB”) in codification section 2100. All funds of theCharter School are included in this report. The Elysian Charter School of Hoboken constitutes the Charterschool’s reporting entity.The Elysian Charter School of Hoboken operates a comprehensive ten-month school. Students attendclasses 8:30 am to 2:55 pm. In addition, programs are available from 7:30 am to 6:00 pm. There is anaverage of 16 students in a class. Parents are heavily involved in school activities and governance. Studentslearn to use computers as part of the ongoing instruction.2
The Honorable President and MembersOf the Board of TrusteesThe Elysian Charter School of HobokenPage 2July 1, 20212) MAJOR INITIATIVES:The Elysian Charter School of Hoboken’s approach to learning, teaching and community is based on aprogressive philosophy that is taught in the tradition of hands-on and cooperative learning. Our philosophyleads us to teach in a manner that is child-centered, holistic, progressive and academically rigorous.Our Charter School provides for 288 students with two classes for each grade from kindergarten to eighthgraded (16 students per class), permitting us to live the adage “It takes a community to raise a child”. Weare involved at every level.The teachers and administrators at the Charter School are open to new ideas, to create new curricula and tohaving children become active and responsible for their own learning. In our learning environment,language, conversation and discussion are seen as very important parts of the learning process that lead tothe development of critical thinking skills.The Elysian Charter School of Hoboken’s curriculum meets the required New Jersey State Standards andgrows directly out of the work created by teachers who collaborate on a regular basis. We always keep ourfocus on the whole child who always has strengths on which he or she can learn and grow.Our goal is to educate children to become curious, lifelong learners with an appreciation of the arts, thediversity of all peoples in the world, and the self-confidence to fulfill his or her life’s dreams.Since its inception in 1997 The Elysian Charter School of Hoboken has been looking for a permanent homethat would bring the entire school under one roof and provide the stability of knowing that there is a longterm lease. This goal was realized in the summer of 2015, when the Charter School signed a 30-year leaseand moved to its new home at 1460 Garden Street.3) INTERNAL ACCOUNTING CONTROLS:Management of the Charter School is responsible for establishing and maintaining and internal controlsystem designed to ensure that the assets of the Charter School are protected from loss, theft or misuse andto ensure that adequate accounting data is compiled to allow for the preparation of financial statements inconformity with generally accepted accounting principles (GAAP). The internal control system is designedto provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonableassurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and(2) the valuation of cots and benefits requires estimates and judgments by management.As a recipient of federal and state awards, the Charter School also is responsible for ensuring that anadequate internal control system is in place to ensure compliance with applicable laws and regulation relatedto those programs. This internal control system is also subject to periodic evaluation by the CharterSchool’s management.As part of the Charter School’s single audit described earlier, tests are made to determine the adequacy ofthe internal control system, including that portion related to major federal and state award programs, as wellas to determine that the Charter School has complied with applicable laws, regulations, contracts and grants.3
The Honorable President and MembersOf the Board of TrusteesThe Elysian Charter School of HobokenPage 3July 1, 20214) BUDGETARY CONTROLS:In addition to internal accounting controls, the Charter School maintains budgetary controls. The objectiveof these budgetary controls is to ensure compliance with legal provisions embodied in the annualappropriated budget. Annual appropriated budgets are adopted for the general fund and the special revenuefund.An encumbrance accounting system is used to record outstanding purchase commitments on a line itembasis. Open encumbrances at year-end are either canceled or are included as re-appropriations of fundbalance in the subsequent year. Those amounts to be re-appropriated are reported as restrictions,commitments and/or assignments of fund balance at June 30, 2021.5) ACCOUNTING SYSTEM AND REPORTS:The Charter School’s accounting records reflect generally accepted accounting principles, as promulgatedby the GASB. The accounting system of the Charter School is organized on the basis of funds. Thesefunds are explained in “Notes to the Basic Financial Statements”, Note 1.6) CASH MANAGEMENT:The investment policy of the Charter School is guided in large part by state statue as detailed in “Notes tothe Basic Financial Statements”, Note 2. The School has adopted a cash management plan which requiresit to deposit public funds in public depositories protected from loss under the provisions of theGovernmental Unit Deposit Protection Act (“GUDPA”). GUDPA was enacted in 1970 to protectgovernmental units from a loss of funds on deposit with a failed banking institution in New Jersey. Therequires governmental units to deposit public funds only in public depositories located in New Jersey, wherethe funds are secured in accordance with the Act.7) RISK MANAGEMENT:The Board carries various forms of insurance, including but not limited to, general liability, automobileliability and comprehensive/collision, hazard and theft insurance on property and contents, and fidelitybonds. A schedule of insurance coverage if found on Exhibit J-20.8) OTHER INFORMATION:Independent Audit – State statues require an annual audit by independent certified public accountants orregistered municipal accountants. The accounting firm of Meshinsky & Associates was selected by theBoard of Trustees at its meeting of June 17, 2019. In addition to meeting the requirements set forth in statestatues, the audit also was designed to meet the requirement of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards, and New Jersey’s OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. The auditors’ report on the basic financial statements and specific requiredsupplementary information is included in the financial section of this report. The auditors’ reports relatedspecifically to the single audit and Government Auditing Standards are included in the single audit sectionof this report.4
The Honorable President and MembersOf the Board of TrusteesThe Elysian Charter School of HobokenPage 4July 1, 20219) ACKNOWLEDGEMENTS:We would like to express our appreciation to the members of the Board of Trustees of The Elysian CharterSchool of Hoboken for their concern in providing fiscal accountability to the citizens and participatingdistricts of the Charter School and thereby contributing their full support to the development andmaintenance of our financial operation. The preparation of this report could not have been accomplishedwithout the efficient and dedicated services of the financial and accounting staff.Bernadette Pinto, Business Administrator5
THE ELYSIAN CHARTER SCHOOL OF HOBOKENOrganizational Chart2020-2021 School YearElysian Board ofTrusteesSchool BusinessAdministrator/BusinessManagerDirectorLead Teacher/ClassroomTeachersSecretarial StaffSchool NurseSocial Worker6Custodial StaffAssistantBusinessManager
Roster of OfficialsTHE ELYSIAN CHARTER SCHOOL OF HOBOKENROSTER OF OFFICIALSJUNE 30, 2021Expirationof TermMember of the Board of Trustees:Chris DeFilippis, President03/22Brian Blake, Vice President03/21Daniel Glynn, Treasurer03/22Erin Curtiss03/23Andrea O’Connor03/21Maria Badali03/22Diane Sasso03/21Michael Gazaleh03/23Jamie Marchand03/23Other Officials:TitleSusan GriersonDirectorKathleen MoneBusiness AdministratorDiane MaconBusiness ManagerLauren BarkerStaff RepresentativeSamantha LeoneStaff Representative7
CONSULTANTS AND ADVISORSAudit FirmMeshinsky & Associates LLCCertified Public Accountants1155 W. Chestnut Street, Suite 2DUnion, New Jersey 07083AttorneyCleary, Giacobbe, Alfieri, Jacobs, LLC955 State Route 34Suite 200Matawan, NJ 07747Official DepositoryKearny Bank1470 Garden StreetHoboken, NJ 07030-49348
FINANCIAL SECTION9
Independent Auditor’s ReportHonorable PresidentMembers of the Board of TrusteesThe Elysian Charter School of HobokenCounty of HudsonHoboken, New JerseyWe have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, each major fund, and the aggregate remaining fund information of TheElysian Charter School of Hoboken (Charter School), in the County of Hudson, State of NewJersey, as of and for the fiscal year ended June 30, 2021, and the related notes to the financialstatements, which collectively comprise the Charter School’s basic financial statements as listedin the table of contents.Management’s Responsibility for the Financial StatementsThe Charter School’s management is responsible for the preparation and fair presentation ofthese financial statements in accordance with accounting principles generally accepted in theUnited States of America; this includes the design, implementation, and maintenance of internalcontrol relevant to the preparation and fair presentation of financial statements that are free frommaterial 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 audit contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States; and auditrequirements as prescribed by the Office of Finance, Department of Education, State of NewJersey. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether 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 auditorconsiders internal 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.10
OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, the business-type activities, eachmajor fund, and the aggregate remaining fund information of The Elysian Charter School ofHoboken Academy Charter School, in the County of Hudson, State of New Jersey, as of June30, 2021, and the respective changes in the financial position and, where applicable, cash flowsthereof for the year then ended in accordance with accounting principles generally accepted inthe United States of America.Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that theManagement’s Discussion and Analysis and Budgetary Comparison Information starting onpages 14 and 68, respectively, be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board who considers it to be an essential part of financial reporting forplacing the basic financial statements in an appropriate operational, economic, or historicalcontext. We have applied certain limited procedures to the required supplementary informationin accordance with auditing standards generally accepted in the United States of America, whichconsisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s response to our inquiries, the basicfinancial statements, and other knowledge we obtained during our audit of the basic financialstatements. We do not express an opinion or provide any assurance on the information becausethe limited procedures do not provide us with sufficient evidence to express an opinion or provideany assurance.Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Charter School’s basic financial statements. The accompanyingsupplementary information such as the combining and individual fund financial statements andschedules of expenditures of federal awards and state financial assistance, as required by in theU.S. Office of Management and Budget (OMB) Compliance Supplement and the New JerseyCircular 15-08 OMB State Aid/Grant Compliance Supplement respectively; and the otherinformation, such as the introductory and statistical sections are presented for purposes ofadditional analysis and are not a required part of the basic financial statements.The combining and individual nonmajor fund financial statements and schedules of expendituresof federal awards and state financial assistance are the responsibility of management and werederived from and relate directly to the underlying accounting and other records use to preparethe basic financial statements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and otherrecords used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generallyaccepted in the United States of America. In our opinion, the combining and individual non-majorfund financial statements and schedules of expenditures of federal awards and state financialassistance are fairly stated, in all material respects, in relation to the basic financial statementsas a whole.11
The introductory and statistical sections have not been subjected to the auditing proceduresapplied in the audit of the basic financial statements, and accordingly, we do not express anopinion or provide any assurance on it.Other Reporting Required by Government Auditing Standards and the Division of Finance,Department of Education, State of New JerseyIn accordance with Government Auditing Standards, we have also issued our report dated March21, 2022 on our consideration of The Elysian Charter School of Hoboken’s internal control overfinancial reporting and our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters.The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing, and not to provide an opinion on internalcontrol over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and the Division of Finance,Department of Education, State of New Jersey in considering the Charter School’s internal controlover financial reporting and compliance.Respectfully SubmittedMeshinsky & Associates LLC, CPA’sPhilip T. MeshinskyLicensed Public-School AccountantNo. CS00233400Meshinsky & Associates LLC, CPA’sUnion, New JerseyMarch 21, 202212
REQUIRED SUPPLEMENTARY INFORMATION – PART I13
THE ELYSIAN CHARTER SCHOOL OF HOBOKENHOBOKEN, NEW JERSEYMANAGEMENT’S DISCUSSION AND ANALYSISFOR THE FISCAL YEAR ENDED JUNE 30, 2021UNAUDITEDThe discussion and analysis of The Elysian Charter School of Hoboken’s financial performanceprovides an overall review of the Charter School’s financial activities for the fiscal year endedJune 30, 2021. The intent of this discussion and analysis is to look at the Charter School’s financialperformance as a whole; readers should also review the basic financial statements and notes toenhance their understanding of the Charter School’s financial performan
The Elysian Charter School of Hoboken is an independent reporting entity within the criteria adopted by the Governmental Accounting Standards Board ("GASB") in codification section 2100. All funds of the Charter School are included in this report. The Elysian Charter School of Hoboken constitutes the Charter school's reporting entity.
