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MASTERY CHARTER SCHOOL – PICKETT CAMPUSFINANCIAL STATEMENTS ANDSUPPLEMENTARY INFORMATIONYEAR ENDED JUNE 30, 2013(WITH COMPARATIVE TOTALS FOR JUNE 30, 2012)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSTABLE OF CONTENTSYEAR ENDED JUNE 30, 2013INDEPENDENT AUDITORS’ REPORT1REQUIRED SUPPLEMENTARY INFORMATIONMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)4BASIC FINANCIAL STATEMENTSSTATEMENT OF NET POSITION7STATEMENT OF ACTIVITIES8BALANCE SHEET – GOVERNMENTAL FUNDS9RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTALFUNDS TO THE STATEMENT OF NET POSITION10STATEMENT OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCE – GOVERNMENTAL FUNDS11RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TOTHE STATEMENT OF ACTIVITIES12NOTES TO FINANCIAL STATEMENTS13SUPPLEMENTARY INFORMATIONSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUNDBALANCE – BUDGET AND ACTUAL – GENERAL FUND (UNAUDITED)23SINGLE AUDIT REQUIREMENTSSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS24NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS25INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGAND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS26INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVEA DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROLOVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A‐13328SCHEDULE OF FINDINGS AND QUESTIONED COSTS30
CliftonLarsonAllen LLPwww.cliftonlarsonallen.comINDEPENDENT AUDITORS’ REPORTBoard of TrusteesMastery Charter School – Pickett CampusPhiladelphia, PennsylvaniaReport on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities and the general fund ofMastery Charter School – Pickett Campus, as of and for the year ended June 30, 2013, and the related notes tothe financial statements, which collectively comprise the entity’s basic financial statements as listed in the tableof contents.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentationof financial statements that are free from material misstatement, whether due to fraud or error.Auditors’ ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. 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 and disclosures in thefinancial statements. The procedures selected depend on the auditors’ judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, butnot for 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 appropriateness of accounting policies usedand the reasonableness of significant accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities and general fund of Mastery Charter School – Pickett Campus asof June 30, 2013, and the respective changes in financial position for the year then ended in accordance withaccounting principles generally accepted in the United States of America.An independent member of Nexia International(1)
Board of TrusteesMastery Charter School – Pickett CampusChange in Accounting PrincipleAs discussed in Note 1 to the financial statements, Mastery Charter School – Pickett Campus implemented theprovisions of the Governmental Accounting Standards Board (GASB) Statements No. 63 –Financial Reporting ofDeferred Outflows of Resources, Deferred Inflows of Resources, and Net Position for the year ended June 30,2013, which represents a change in accounting principle. The adoption of this standard did not have anyfinancial impact on the School’s financial statements. Our opinion is not modified with respect to this matter.Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that the management’sdiscussion and analysis and the schedule of revenues, expenditures and changes in fund balance‐ budget andactual on pages 4 through 6 and page 23 be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the Governmental AccountingStandards Board who considers it to be an essential part of financial reporting for placing the basic financialstatements in an appropriate operational, economic, or historical context. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standards generallyaccepted in the United States of America, which consisted of inquiries of management about the methods ofpreparing the information 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 the basicfinancial statements. We do not express an opinion or provide any assurance on the information because thelimited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.Report on Summarized Comparative InformationWe have previously audited the Mastery Charter School – Pickett Campus’ 2012 financial statements, and weexpressed an unmodified audit opinion on those audited financial statements of the governmental activities andgeneral fund in our report dated November 14, 2012. In our opinion, the summarized comparative informationpresented herein as of and for the year ended June 30, 2012, is consistent, in all material respects, with theaudited financial statements from which it has been derived.Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Mastery Charter School – Pickett Campus’ basic financial statements. The schedule of expendituresof federal awards, as required by U.S. Office of Management and Budget Circular A‐133, Audits of States, LocalGovernments, and Non‐Profit Organizations is presented for purposes of additional analysis and is not a requiredpart of the basic financial statements. The schedule of expenditures of federal awards is the responsibility ofmanagement and was derived from and relates directly to the underlying accounting and other records used toprepare the basic financial statements. Such information has been subjected to the auditing procedures appliedin the audit of the basic financial statements and certain additional procedures, including comparing andreconciling such information directly to the underlying accounting and other records used to prepare the basicfinancial statements or to the basic financial statements themselves, and other additional procedures inaccordance with auditing standards generally accepted in the United States of America. In our opinion, theschedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basicfinancial statements as a whole.(2)
Board of TrusteesMastery Charter School – Pickett CampusOther Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated December 10, 2013on our consideration of Mastery Charter School – Pickett Campus’ internal control over financial reporting andon our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements andother matters. The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the result of that testing, and not to provide an opinion on internal control overfinancial reporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering Mastery Charter School – Pickett Campus’ internal control overfinancial reporting and compliance.CliftonLarsonAllen LLPPlymouth Meeting, PennsylvaniaDecember 10, 2013(3)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)JUNE 30, 2013The Board of Trustees of Mastery Charter School – Pickett Campus (the School) offers readers of the School’sfinancial statements this narrative overview and analysis of the financial activities of the School for the fiscalyear ended June 30, 2013. We encourage readers to consider the information presented here in conjunctionwith the School’s financial statements.Financial Highlights Total revenues decreased 160,305 to 9,895,080 primarily due to a decrease in the School Districtstudent subsidies and local grants for the year ended June 30, 2013. At the close of the current fiscal year, the School reports an ending general fund balance of 2,195,741.The general fund increased from the previous year end general fund balance as the result of a 412,907excess of revenues over expenditures for the year ended June 30, 2013. The School’s cash balance at June 30, 2013 was 2,860,918 which is an increase of 851,365 from June30, 2012.Overview of the Financial StatementsThe discussion and analysis is intended to serve as an introduction to the School’s basic financial statements.The School’s basic financial statements as presented comprise four components: Management’s Discussion andAnalysis (this section), the basic financial statements, required supplementary schedule and reportingrequirements of Government Auditing Standards and OMB Circular A‐133.Government‐Wide Financial StatementsThe government‐wide financial statements are designed to provide readers with a broad overview of theSchool’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 and liabilities, with thedifference between the two reported as net position. Over time, increases or decreases in net position mayserve as a useful indicator of whether the financial position of the School is improving or deteriorating.The statement of activities presents information showing how the School’s net position changed during the mostrecent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to thechange occurs, regardless of the timing of related cash flows.The government‐wide financial statements report on the function of the School that is principally supported bysubsidies from school districts whose constituents attend the School.Fund Financial StatementsA fund is a group of related accounts that are used to maintain control over resources that have beensegregated for specific activities or purposes. The School, like governmental type entities, utilizes fundaccounting to ensure and demonstrate compliance with finance‐related legal requirements. The School has onlyone fund type, the governmental general fund.Notes to the Financial StatementsThe notes provide additional information that is essential to a full understanding of the data provided in thegovernment‐wide and fund financial statements.(4)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)JUNE 30, 2013Government‐Wide Financial AnalysisNet position may serve over time as a useful indicator of a government’s financial position. In the case of theSchool, assets exceeded liabilities by 2,991,788 as of June 30, 2013.2013Total AssetsTotal LiabilitiesTotal Net Position2012 4,212,5631,220,775 3,551,4511,118,041 2,991,788 2,433,410The School’s revenues are predominately from the School District of Philadelphia, based on the studentenrollment, and federal and state sources.2013REVENUESLocal Educational AgenciesState SourcesFederal SourcesOther Local Sources Total Revenues7,740,032439,6671,585,111130,2702012 5EXPENDITURESInstructionSpecial EducationStudent Support ServicesInstruction Support ServicesAdministration SupportPupil HealthBusiness ServicesOperations and MaintenanceStudent Transportation ServicesOther Support ServicesStudent ActivitiesFood ServicesInterest ExpenseDepreciation tal Expenditures9,336,7028,843,921Change in Net Position558,3781,211,464Net Position, Beginning2,433,4101,221,946Net Position, Ending (5)2,991,788 2,433,410
MASTERY CHARTER SCHOOL – PICKETT CAMPUSMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)JUNE 30, 2013Governmental FundThe focus of the School’s governmental fund is to provide information on near‐term inflows, outflows, andbalances of spendable resources. Such information is useful in assessing the School’s financing requirements. Inparticular, fund balance may serve as a useful measure of a government’s net resources available for spendingfor program purposes at the end of the fiscal year.The School’s governmental fund, (the General Fund), reported an ending fund balance of 2,195,741. For theyear ended June 30, 2013, the School’s revenues ( 9,895,080) exceeded expenditures ( 9,482,173) by 412,907.General Fund Budgetary HighlightsActual revenues exceeded budgeted revenues by 9,569 due to greater than budget other local sources andfederal sources. Actual expenditures were higher than budgeted expenditures by 198,113 due to higher thanbudgeted support and non‐instructional services.Capital AssetAs of June 30, 2013, the School’s investment in capital assets for its governmental activities totaled 796,047(net of accumulated depreciation and related debt). This investment in capital assets includes furniture andfixtures, equipment and leasehold improvements. Capital expenditures of 77,701 for furniture and fixtures.Capital expenditures of 149,878 for equipment.Capital expenditures of 124,558 for leasehold improvements.Capital expenditures of 24,264 for software.Additional information on the School’s capital assets can be found in Note 3 of this report.LONG‐TERM DEBTAs of June 30, 2013, the School has long‐term debt of 6,261 for capital lease obligations.Economic Factors and Next Year’s Budgets and RatesThe School’s primary source of revenue, the School District of Philadelphia subsidy, will increase 6% from 8,096to 8,597 for regular education students and increase 13% from 19,660 to 22,242 for special educationstudents.Future Events that will Financially Impact the SchoolDue to the budget deficits at the Commonwealth of PA and the School District of Philadelphia, we expectfunding cuts will occur in future years. These cuts can have a significant impact financially.Contacting the School’s Financial ManagementThe financial report is designed to provide interested parties a general overview of the School’s finances.Questions regarding any of the information provided in this report should be addressed to the Chief FinancialOfficer, Mastery Charter School – Pickett Campus, 5700 Wayne Avenue, Philadelphia, PA 19144.(6)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSSTATEMENT OF NET POSITIONJUNE 30, 2013(WITH COMPARATIVE TOTALS AT JUNE 30, 2012)Governmental Activities20132012ASSETSCURRENT ASSETSCashState Subsidies ReceivableFederal Subsidies ReceivableOther ReceivablesPrepaid ExpensesTotal Current Assets CAPITAL ASSETS, NETTotal Assets2,860,918200,771270,55478,012‐3,410,255 82,834LIABILITIESCURRENT LIABILITIESCapital Lease Obligation ‐ Current PortionAccounts PayableAccrued ExpensesUnearned RevenueDue to Other Governmental EntitiesTotal Current LiabilitiesCAPITAL LEASE OBLIGATION, NET OFCURRENT PORTIONTotal LiabilitiesNET POSITIONNet Investment in Capital AssetsUnrestrictedTotal Net Position See accompanying Notes to Financial Statements.(7)2,991,788 2,433,410
MASTERY CHARTER SCHOOL – PICKETT CAMPUSSTATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2013(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2012)FunctionsGovernmental Activities:InstructionSpecial EducationStudent Support ServicesInstruction Support ServicesAdministration SupportPupil HealthBusiness ServicesOperations and MaintenanceStudent Transportation ServicesOther Support ServicesStudent ActivitiesFood ServicesInterest ExpenseDepreciation ExpenseTotalProgramRevenuesOperatingGrants andContributionsExpenses 18854,05012,903349,362189,285296,864644236,304 �� 9,336,702 1,600,6342013Net(Expense)Revenue andChanges inNet PositionTotalGovernmentalActivities General Revenues:Local Educational AgenciesState Grants andReimbursementsOther Local SourcesInterestTotal General RevenuesChange in Net PositionNet Position ‐ Beginning of YearNet Position ‐ End of YearSee accompanying Notes to Financial Statements.(8) )4,160(644)(236,304)2012Net(Expense)Revenue andChanges inNet PositionTotalGovernmentalActivities 62,991,788 2,433,410
MASTERY CHARTER SCHOOL – PICKETT CAMPUSBALANCE SHEET – GOVERNMENTAL FUNDSJUNE 30, 2013(WITH COMPARATIVE TOTALS AT JUNE 30, 2012)2013GeneralFund2012GeneralFundASSETSCashState Subsidies ReceivableFederal Subsidies ReceivableOther ReceivablesPrepaid ExpensesTotal Assets 2,860,918200,771270,55478,012‐ 2,009,553172,267635,68450,73621,000 3,410,255 2,889,240 260,138947,0536,7116121,214,514 179,987919,512‐6,9071,106,406LIABILITIES AND FUND BALANCELIABILITIESAccounts PayableAccrued ExpensesUnearned RevenueDue to Other Governmental EntitiesTotal LiabilitiesFUND BALANCENonspendable to:Prepaid ExpensesCommitted to:Designated for Future Budget DeficitsDesignated for Facilities ReservesUnassignedTotal Fund BalanceTotal Liabilities and Fund Balance See accompanying Notes to Financial ,7411,278,000446,00037,8341,782,8343,410,255 2,889,240
MASTERY CHARTER SCHOOL – PICKETT CAMPUSRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET POSITIONJUNE 30, 2013Total Fund Balance for Governmental Funds 2,195,741Total net position reported for governmental activities in the statement of net position isdifferent because:Capital assets used in governmental funds are not financial resources and,therefore, are not reported in the funds. Those assets consist of:Capital Assets, Net802,308Capital lease obligations used in governmental funds are not financial resources and,therefore, are not reported in the fund liabilities. The total capital lease obligations ‐both current and long‐term are reported in the statement of net position.Balances at year end are:Total Net Position of Governmental Activities(6,261) See accompanying Notes to Financial Statements.(10)2,991,788
MASTERY CHARTER SCHOOL – PICKETT CAMPUSSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEGOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2013(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2012)2013GeneralFundREVENUESLocal Educational AgenciesState SourcesFederal SourcesOther Local SourcesInterest IncomeTotal Revenues EXPENDITURESInstructionSupport ServicesNon‐Instructional ServicesTotal ,895,0802012GeneralFund 68,4188,910,190NET CHANGE IN FUND BALANCE412,9071,145,195Fund Balance ‐ Beginning of Year1,782,834637,639FUND BALANCE ‐ END OF YEAR See accompanying Notes to Financial Statements.(11)2,195,741 1,782,834
MASTERY CHARTER SCHOOL – PICKETT CAMPUSRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TOTHE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2013Net Change in Fund Balance ‐ Total Governmental Funds 412,907Amounts reported for governmental activities in the statement of activities aredifferent because:Governmental funds report capital outlays as expenditures. However, in the statementof activities, assets are capitalized and the cost is allocated over their estimated usefullives and reported as depreciation expense. This is the amount by which capitaloutlays exceeded depreciation in the current period.Capital OutlaysDepreciation Expense376,401(236,304)Governmental Funds report capital lease obligations proceeds as financingsources, while repayment is reported as expenditures. In the statement ofnet position, however, the capital lease obligations increases liabilities anddoes not affect the statement of activities and repayment of principal reducesthe obligations. The net effect of these differences in the treatment of thecapital lease obligations is as follows:Capital Lease ObligationsChange in Net Position of Governmental Activities5,374 See accompanying Notes to Financial Statements.(12)558,378
MASTERY CHARTER SCHOOL – PICKETT CAMPUSNOTES TO FINANCIAL STATEMENTSYEAR ENDED JUNE 30, 2013NOTE 1BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBackgroundMastery Charter School – Pickett Campus (School) was formed as a Pennsylvania nonprofitcorporation in July 2007. The School was granted a charter by the Commonwealth to operate anindependent public school for an initial five‐year term beginning July 1, 2007, in accordance withPennsylvania Act 22 of 1997. The charter was renewed for an additional five year‐term term of July1, 2012 through June 30, 2017. During the year ended June 30, 2013, the School servedapproximately 750 students in grades seven through twelve.Basis of PresentationThe financial statements of the School have been prepared in conformity with U.S. generallyaccepted accounting principles (GAAP) as applied to governmental units. The GovernmentalAccounting Standards Board (GASB) is the accepted standard setting body for establishinggovernment accounting and financial reporting principles. The GASB has issued a codification ofgovernmental accounting and financial reporting standards.Comparative Financial InformationThe financial statements include certain prior year summarized comparative information in total.Such information does not include sufficient detail to constitute a presentation in conformity withgenerally accepted accounting principles. Accordingly, such information should be read inconjunction with the School’s financial statements for the year ended June 30, 2012 from which thesummarized information was derived. Certain items in the prior year financial statements havebeen reclassified to conform to the current year presentation.Government‐Wide and Fund Financial StatementsThe government‐wide financial statements (the statement of net position and the statement ofactivities) report on the School as a whole. The statement of activities demonstrates the degree towhich the direct expenses of the School’s function are offset by program revenues.The fund financial statements (governmental fund balance sheet and statement of governmentalfund revenues, expenditures and changes in fund balance) report on the School’s General Fund.Measurement Focus, Basis of Accounting and Financial Statement PresentationGovernment‐wide Financial Statements:The statement of net position and the statement of activities are prepared using the economicresources measurement focus and the accrual basis of accounting. Revenues are recorded whenearned and expenses are recorded when a liability is incurred regardless of the timing of the relatedcash flows. Grants and similar items are recognized as soon as all eligibility requirements imposed byprovider have been met.(13)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSNOTES TO FINANCIAL STATEMENTSYEAR ENDED JUNE 30, 2013NOTE 1BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)Fund Financial Statements:Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soonas they are measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the currentperiod. For this purpose, the School considers revenues to be available if they are collected within60 days of the end of the current period. Expenditures generally are recorded when a liability isincurred, as under accrual accounting.The government reports the following major governmental fund:General Fund – The General Fund is the operating fund of the School and accounts for allrevenues and expenditures of the School.Method of AccountingAccounting standards requires a statement of net position, a statement of activities and changes innet position. It requires the classification of net position into three components – net investment incapital assets; restricted; and unrestricted. These calculations are defined as follows: Net investment in capital assets – This component of net position consists of capital assets,including restricted capital assets, net of accumulated depreciation and reduced by theoutstanding balances of any bonds, mortgages, notes, or other borrowings that areattributable to the acquisition, construction, or improvement of those assets. If there aresignificant unspent related debt proceeds at year‐end, the portion of the debt attributableto the unspent proceeds are not included in the calculation of net investment in capitalassets. Rather, that portion of the debt is included in the same net position component asthe unspent proceeds. Restricted – This component of net position consists of constraints placed on net positionuse through external constraints imposed by creditors such as through debt covenants,grantors, contributors, or laws or regulations of other governments or constraints imposedby law through constitutional provisions or enabling legislation. The School presently has norestricted net position. Unrestricted net position – This component of net position consists of net position that donot meet the definition of “restricted” or “net investment in capital assets.”(14)
MASTERY CHARTER SCHOOL – PICKETT CAMPUSNOTES TO FINANCIAL STATEMENTSYEAR ENDED JUNE 30, 2013NOTE 1BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)Method of Accounting (Continued)In the fund financial statements, governmental funds report nonspendable portions of fund balancerelated to prepaid expenses, long term receivables, and corpus on any permanent fund. Restrictedfunds are constrained from outside parties (statute, grantors, bond agreements, etc.). Committedfund balances represent amounts constrained for a specific purpose by a governmental entity usingits highest level of decision‐making authority. Committed fund balances are established andmodified by a resolution approved by the Board of Trustees. Assigned fund balances are intended bythe School to be used for specific purposes, but are neither restricted nor committed. Unassignedfund balances are considered the remaining amounts.When expenditures are incurred for purposes for which both restricted and unrestricted fundbalance are available, it is currently the School’s policy to use restricted first, then unrestricted fundbalance. When expenditures are incurred for purposes for which committed, assigned, andunassigned amounts are available, it is currently the School’s policy to use committed first, thenassigned, and finally unassigned amounts.Budgets and Budgetary AccountingBudgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Anannual budget is adopted for the General Fund.The Budgetary Comparison Schedule should present both the original and the final appropriatedbudgets for the reporting period. The School only has a general fund budget; an original was filedand accepted by the Labor, Education and Community Services Comptroller’s Office in June 2012.An amended budget was adopted by the Board of Trustees in January 2013. The budget is requiredsupplementary information.Use of EstimatesThe preparation of financial statements in conformity with U.S. generally accepted accountingpr
Mastery Charter School - Pickett Campus, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the entity's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements
