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udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
udit Supplemental Data Request Formfor Regents-Authorized Charter Schools
School Name
Financial A
DateLatest Audit Period (through June 30)
Financial
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Audit Supplemental Data Request Form for Regents-Authorized Charter Schools
Launch Expeditionary Learning Charter School
August 1 2016 2016
Investments $-547493
-
$-Property Plant and Equipment Net 779914
Restricted Cash -OTHER ASSETS $779914 $547493
TOTAL ASSETS $2684740 $2833994
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued expenses $16056 Accrued payroll and benefits 287396 Refundable Advances -Dreferred Revenue 13255 Current maturities of long-term debt -Short Term Debt - Bonds Notes Payable -
Other -TOTAL CURRENT LIABILITIES $316707
LONG-TERM DEBT net current maturities $-
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter School STATEMENTS OF FINANCIAL POSITION
$-
FOR THE YEARS ENDED JUNE 30
2016 2015 ASSETS
CURRENT ASSETS Cash and cash equivalents $1725381 Grants and contracts receivable -Accounts receivables 137934 Inventory -Prepaid Expenses 41511 Contributions and other receivables -
Other -TOTAL CURRENT ASSETS $1904826
OTHER ASSETS
$2171502 -
39521 -
75478 -
-
$2286501
$77372 262541
-103950
--
-
$443864
TOTAL LIABILITIES $316707 $443864
NET ASSETS Unrestricted
Temporarily restrictedTOTAL NET ASSETS
$2368033
-
$2368033
$2390130
-
$2390130
TOTAL LIABILITIES AND NET ASSETS $2684740 $2833994
Check - -
- -
FOR THE YEARS ENDED JUNE 30
FILL IN GRAY CELLS
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Launch Expeditionary Learning Charter SchoolSTATEMENTS OF ACTIVITIES
REVENUE GAINS AND OTHER SUPPORT State amp Local Operating Revenue $5303468 $- $5303468 Federal - Title and IDEA 212577 - 212577 Federal - Other 30545 - 30545 State and City Grants - -Contributions and private grants 26309 - 26309 After school revenue - -Other 1070 - 1070
Food ServiceChild Nutrition Program - - -
2016 2015Temporarily
Unrestricted Restricted Total Total
$5363491 192826
57293
123355
1720
-
$5738685 TOTAL REVENUE GAINS AND OTHER SUPPORT $5573970 $- $5573970
EXPENSES Program Services
Regular Education $3346801 $-1956714 -
- -
$3346801Special Education 1956714
Other Programs -Total Program Services
$3085648 1804031
-
$5303516 $- $5303516 $4889679 Supporting Services
Management and general $269387 $-
23164 -
$269387
Fundraising 23164 TOTAL OPERATING EXPENSES
$248367
21356
$5596067 $- $5596067 $5159402
SURPLUS (DEFICIT) FROM SCHOOL OPERATIONS $(22097) $- $(22097) $579283
Fundraising -Interest income 1070 1720 Miscellaneous income 6666 6666
Net assets released from restriction TOTAL SUPPORT AND OTHER REVENUE $27379 $- $27379 $125075
CHANGE IN NET ASSETS $5282 $- $5282 $704358
NET ASSETS BEGINNING OF YEAR $- $-
PRIOR YEARPERIOD ADJUSTMENTS - -
$-
-
NET ASSETS - END OF YEAR $5282 $- $5282 $704358
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
New York State Education DepartmentRequest for Proposals to Establish Charter Schools Authorized by the
Board of Regents
2015-16 Budget amp Cash Flow Template
General Instructions and Notes for New Application Budgets and Cash Flows Templates
1 2
3
4
5
Complete ALL SIX columns in BLUE Enter information into the GRAY cells
Cells containing RED triangles in the upper right corner in columns B through G contain guidance on that particular item
Funding by School District information for all NYS School district is located on the State Aid website at httpsstateaidnysedgovcharter Refer to this website for per-pupil tuition funding for all school districts Rows may be inserted in the worksheet to accomodate additional districts if necessary
The Assumptions column should be completed for all revenue and expense items unless the item is self-explanatory Where applicable please reference the page number or section in the application narrative that indicates the assumption being made For instance student enrollment would reference the applicable page number in Section I C of the application narrative
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
- - -
- - -
- - -
- - -
- - -
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REVENUE REVENUES FROM STATE SOURCES
Per Pupil Revenue
District of Location $1402700 3179972 1017608 - - - 4197580
School District 2 (Enter Name) - - - - - -
School District 3 (Enter Name) - - - - - -
School District 4 (Enter Name) - - - - - -
School District 5 (Enter Name) - - - - - -
3179972 1017608 4197580
Special Education Revenue - 1243719 - - - 1243719
Grants
Stimulus - - - - - -
Other 97483 31195 - - - 128678 The is the special revenue appropriation from the NYS Senate
Other State Revenue - - - - - -
TOTAL REVENUE FROM STATE SOURCES 3277454 2292522 5569976
REVENUE FROM FEDERAL FUNDING
IDEA Special Needs - 57840 - - - 57840
Title I 97159 31091 - - - 128250
Title Funding - Other 4848 1552 - - - 6400
School Food Service (Free Lunch) - - - - - -
Grants
Charter School Program (CSP) Planning amp Implementation - - - - - -
Other - - - - - -
Other Federal Revenue - - - - - -
TOTAL REVENUE FROM FEDERAL SOURCES 102007 90483 192490
LOCAL and OTHER REVENUE
Contributions and Donations Fundraising 7576 2424 - - - 10000
Erate Reimbursement 27689 8861 - - - 36550
Interest Income Earnings on Investments 1136 364 - - - 1500
NYC-DYCD (Department of Youth and Community Developmt) - - - - - -
Food Service (Income from meals) - - - - - -
Text Book 18018 5766 - - - 23784
Other Local Revenue - - - - - -
TOTAL REVENUE FROM LOCAL and OTHER SOURCES 54420 17415 71834
TOTAL REVENUE 3433881 2400419 5834300
List exact titles and staff FTEs ( Full time eqiuilivalent)
EXPENSES
ADMINISTRATIVE STAFF PERSONNEL COSTS No of Positions
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
tion partnership and are justified by lower health benefits costs gained through te PEO relationship
ional Consultants General Consultants Telephone amp Telecommunications After-School Consultants
aterials categorized as curricula
- - -
- - - - - - -
-
-
-
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
TOTAL PAYROLL TAXES AND BENEFITS 446744 284403 3277 38366 772790
TOTAL PERSONNEL SERVICE COSTS 2500706 1779144 9413 151318 4440581
CONTRACTED SERVICES
Accounting Audit - - - - 22000 22000
Legal 2864 1951 - 16 169 5000
Management Company Fee - - - - - -
Nurse Services - - - - - -
Food Service School Lunch - - - - - -
Payroll Services 43731 29785 - 238 2586 76340 Payroll services fees include the annual cost of TriNet Professional Employer Organiza
Special Ed Services - - - - - -
Titlement Services (ie Title I) - - - - - -
Other Purchased Professional Consulting 145040 62677 - 10245 42823 260785 This line includes various services providers The four largest components are Educat
TOTAL CONTRACTED SERVICES 191636 94412 10499 67578 364125
TOTAL SCHOOL OPERATIONS 437681 173950 1827 10536 623994
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
E for the FY15 audited financial statementsE for the FY15 audited financial statements
tion evenly spread over the course of the school year
-
-
Launch Expeditionary Learning Charter School PROJECTED BUDGET FOR 2016-2017 Assumptions
July 1 2016 to June 30 2017 DESCRIPTION OF ASSUMPTIONS - Please note assumptions when applicable
Please Note The student enrollment data is entered below in the Enrollment Section beginning in row 155 This will populate the data in row 10
OTHER FUNDRAISING TOTAL
Total Revenue 3433881 2400419 - - - 5834300 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF Total Expenses 3317491 2173627 - 22746 243931 5757795 Overall Revenue and Expense Category breakdowns are based on ratios from our SOF
Net Income 116390 226793 - (22746) (243931) 76505 Actual Student Enrollment 143 78 -
Total Paid Student Enrollment 221 78 299 We assume starting enrollment of 315 and 26 of students having IEPs and 10 attri
PROGRAM SERVICES SUPPORT SERVICES
OTHER FUNDRAISING TOTAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
REGULAR EDUCATION
SPECIAL EDUCATION
MANAGEMENT amp GENERAL
FACILITY OPERATION amp MAINTENANCE
Insurance 23259 14280 - 111 1230 38880 All PampC Insurance is included in this line
Janitorial - - - - 3560 3560
Building and Land Rent Lease - - - - - -
Repairs amp Maintenance - - - - - -
Equipment Furniture - - - - - -
Security - - - - - -
Utilities - - - - - -
TOTAL FACILITY OPERATION amp MAINTENANCE 23259 14280 111 4790 42440
TOTAL EXPENSES 3317491 2173627 22746 243931 5757795
NET INCOME 116390 226793 - (22746) (243931) 76505
ENROLLMENT - School Districts Are Linked To Above Entries
District of Location 143 78 221
School District 2 (Enter Name) -
School District 3 (Enter Name) -
School District 4 (Enter Name) -
School District 5 (Enter Name) -
TOTAL ENROLLMENT 143 78 221
REVENUE PER PUPIL 24013 30775 -
EXPENSES PER PUPIL 23199 27867 -
REGULAR EDUCATION
SPECIAL EDUCATION
TOTAL ENROLLED
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation) FINANCIAL STATEMENTS
JUNE 30 2016 (with comparative financial information for June 30 2015)
CONTENTS
PAGE
INDEPENDENT AUDITORS REPORT 1 ndash 2
FINANCIAL STATEMENTS
Statements of financial position 3
Statements of activities 4
Statements of functional expenses 5
Statements of cash flows 6
Notes to financial statements 7 ndash 13
INDEPENDENT AUDITORSrsquo 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 14 ndash 15
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo REPORT
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Report on the Financial Statements
We have audited the accompanying financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) (a not-for-profit corporation) which comprise the statement of financial position as of June 30 2016 and the related statements of activities functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America this includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error
Auditorsrsquo Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error In making those risk assessments the auditor considers internal control relevant to the Schoolrsquos preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
In our opinion the financial statements referred to above present fairly in all material respects the financial position of the School as of June 30 2016 and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America
Report on Summarized Comparative Information
We have previously audited the Schoolrsquos 2015 financial statements and our report dated September 8 2015 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of June 30 2015 and for the year then ended is consistent in all material respects with the audited financial statements from which it has been derived
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards we have also issued our report dated September 22 2016 on our consideration of the Schoolrsquos internal control over financial reporting and on 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 financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control over financial reporting and compliance
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FINANCIAL POSITION June 30 2016
(with comparative financial information for June 30 2015)
ASSETS 2016 2015
Current assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other current assets
$ 1650316 137934
48686
$ 2096325 39521 75478
Total current assets 1836936 2211324
Property and equipment net of accumulated depreciation and amortization of $566960 and $315213 respectively
Restricted cash 760013
75226 547492
75178
TOTAL ASSETS $ 2672175 $ 2833994
LIABILITIES AND UNRESTRICTED NET ASSETS
Current liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
$ 74547 247728
26438
$ 116071 223843 103950
Total current liabilities 348713 443864
Unrestricted net assets 2323462 2390130
TOTAL LIABILITIES AND UNRESTRICTED NET ASSETS $ 2672175 $ 2833994
The accompanying notes are an integral part of the financial statements
- 3 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
- 4 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
Revenue and support State and local per pupil operating revenue Federal grants State and city grants Contributions and grants Donated goods and services Interest and other income
$
2016
5264890 248287
25394 19643
6666 1077
$
2015
5337821 250119
25670 20272
103083 1720
Total revenue and support 5565957 5738685
Expenses Program services
Regular education Special education
Total program services Supporting services
Management and general Fundraising
Total supporting services
3073718 2267714 5341432
277793 13400
291193
3084779 1804444 4889223
248787 21392
270179
Total expenses 5632625 5159402
Change in unrestricted net assets (66668) 579283
Unrestricted net assets - beginning of year 2390130 1810847
Unrestricted net assets - end of year $ 2323462 $ 2390130
The accompanying notes are an integral part of the financial statements
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LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
2016 Program Services Support Services
No of Regular Special Management Positions Education Education Total and General Fundraising Total Total 2015
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
The accompanying notes are an integral part of the financial statements
- 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30 2016
(with summarized comparative financial information for the year ended June 30 2015)
CASH FLOWS FROM OPERATING ACTIVITIES Change in unrestricted net assets Adjustments to reconcile change in unrestricted net assets
to net cash provided by operating activities Depreciation and amortization Loss on disposal of property and equipment
(Increase) Decrease in certain assets Grants and contracts receivable Prepaid expenses and other current assets Restricted cash
Increase (Decrease) in certain liabilities Accounts payable and accrued expenses Accrued payroll and payroll taxes Refundable advances
NET CASH PROVIDED BY OPERATING ACTIVITIES
$
2016
(66668)
283569 21644
(98413) 26792
(48)
(41524) 23885
(77512) 71725
$
2015
579283
174839 7332
7539 8856
(75)
58070 121642 103950
1061436
CASH FLOWS FROM INVESTING ACTIVITY Purchase of property and equipment (517734) (311641)
NET INCREASE IN CASH AND CASH EQUIVALENTS (446009) 749795
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2096325 1346530
CASH AND CASH EQUIVALENTS - END OF YEAR $ 1650316 $ 2096325
The accompanying notes are an integral part of the financial statements
- 6 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) is a New York State not-forshyprofit educational corporation that was incorporated to operate a Charter School pursuant to Article 56 of the Education Law of the State of New York The School was granted a provisional charter on December 14 2010 valid for a term of five years and renewable upon expiration by the Board of Regents of the University of the State of New York The provisional charter commenced on August 22 2010 and expires on August 22 2017 The School was created to offer a world-class education to students and families living in Bedford-Stuyvesant Crown Heights and the surrounding communities in Brooklyn The School is part of the Expeditionary Learning network of over 160 member schools nationwide Its mission is to prepare students in under-resourced communities to thrive in college and careers by providing a public education rooted in active learning experiences and powerful character development During the 2015-2016 academic year the School provided education to approximately 286 students in the sixth through eighth grades
The School has an agreement with the New York City Department of Education (ldquoNYCDOErdquo) to share public school space at no annual cost The School occupies approximately 14000 square feet on one floor of a public school building The School also shares the gymnasium auditorium and cafeteria with the public school which approximate 6136 square feet The School is not responsible for rent utilities custodial services and school safety services other than those required for days and times the School operates outside of the traditional NYCDOE schedule The School was unable to determine a value for the contributed space and related services and did not record any value for use of donated facilities
Food Services The New York City Department of Education provides free lunches directly to some of the Schoolrsquos students Such costs are not included in these financial statements The School covers the cost of lunches for children not entitled to the free lunches
Tax Status The School is exempt from Federal income tax under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3) and a similar provision under New York State income tax laws The School has also been classified as an entity that is not a private foundation within the meaning of Section 509(a) and qualifies for deductible contributions as provided in section 170(b)(l)(A)(ii) The School is subject to income taxes only on net unrelated business income The School did not have any unrelated business income for the years ended June 30 2016 and 2015
- 7 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Tax Status (Continued) The Schoolrsquos accounting policy provides that a tax expense or benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination including resolutions of any related appeals or litigation processes based on the technical merits The School has no uncertain tax positions resulting in an accrual of tax expense or benefit
IRS Form 990 filed by the School are subject to examination by the Internal Revenue Service for up to three years from the extended due date of each return Forms 990 filed by the School are no longer subject to examination for the fiscal year ended June 30 2012 and prior
Basis of Presentation The Schoolrsquos financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America The financial statement presentation follows the requirements of the Financial Accounting Standards Board (ldquoFASBrdquo) in its Accounting Standards Codification (ldquoASCrdquo) No 958-205 which provides guidance for the classification of net assets The amounts for each of the three classes of net assets are based on the existence or absence of donor-imposed restrictions described as follows
Unrestricted Unrestricted net assets are assets of the School whose use has not been restricted by an outside donor or by law They are available for any use in carrying out the operations of the School
Temporarily Restricted Temporarily restricted net assets are assets of the School whose use has been limited by donor-imposed stipulations that either expire with the passage of time or can be fulfilled and removed by actions of the School When such stipulations end or are fulfilled such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions
Permanently Restricted Permanently restricted net assets are assets of the School whose use has been permanently limited by donor-imposed restrictions Such assets include contributions required to be invested in perpetuity the income from which is available to support charitable purposes designated by the donors
The School had no temporarily and permanently restricted net assets at June 30 2016 and 2015
- 8 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue and Support Contributions are recognized when the donor makes a promise to give to the School that is in substance unconditional Grants and other contributions of cash are reported as temporarily restricted support if they are received with donor stipulations Restricted contributions and grants that are made to support the Schoolrsquos current year activities are recorded as unrestricted revenue Contributions of assets other than cash are recorded at their estimated fair value
Revenue from the state and local governments resulting from the Schoolrsquos charter status and based on the number of students enrolled is recorded when services are performed in accordance with the charter agreement Federal and other state and local funds are recorded when expenditures are incurred and billable to the government agencies
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenue and expenses during the reporting period Accordingly actual results could differ from those estimates
Cash and Cash Equivalents The School considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents
Concentration of Credit Risk Financial instruments which potentially subject the School to concentrations of credit risk are cash and cash equivalents The School places its cash and cash equivalents on deposit in what it believes to be highly credited financial institutions Cash balances may exceed the FDIC insured levels of $250000 per institution at various times during the year At June 30 2016 account balances exceeded insured levels by approximately $1476000 The School believes that there is little risk in any losses and has not experienced any losses in such accounts
Property and Equipment Purchased property and equipment are recorded at cost Property and equipment acquired with certain government funding are recorded as expenses pursuant to the terms of the contract in which ownership of such property and equipment is retained by the funding source Maintenance and repairs are expensed as incurred No depreciation is recorded on construction-in-progress until property and equipment is placed into service
- 9 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued) Depreciation is provided on the straight line method over the estimated useful lives as follows
Computers 4 years Equipment 5 years Furniture and fixtures 5 years Software 3 years Leasehold improvements useful life or related lease
Restricted Cash Under the provisions of its charter the School established an escrow account to pay for legal and audit expenses that would be associated with a dissolution should it occur
Refundable Advances The School records certain government grants and contracts as refundable advances until the related services are performed at which time it is recognized as revenue
Comparative Financial Information The accompanying statements of activities and functional expenses are presented with summarized comparative information Such prior year information is not presented by net asset class in the statements of activities or by functional category in the statement of functional expenses Accordingly such information should be read in conjunction with the Schools 2015 financial statements from which the summarized information was derived
Reclassifications Certain 2015 accounts have been reclassified to the 2016 financial statements presentation The reclassification has no effect on 2015 total assets liabilities net assets and change in net assets
NOTE 2 - GRANTS AND CONTRACTS RECEIVABLE
Grants and contracts receivable consist of federal state and city entitlements and grants The School expects to collect these receivables within one year
- 10 shy
NOTE 3 shy
NOTE 4 shy
NOTE 5 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
1326973 862705 Less accumulated depreciation and amortization (566960) (315213)
$ 760013 $ 547492
Depreciation and amortization expense was $283569 and $174839 for the years ended June 30 2016 and 2015 respectively Loss on disposal of assets was $21644 and $7332 for the years ended June 30 2016 and 2015 respectively
CONTINGENCY
Certain grants and contracts may be subject to audit by the funding sources Such audits might result in disallowances of costs submitted for reimbursements Management is of the opinion that such cost disallowances if any will not have a material effect on the accompanying financial statements Accordingly no amounts have been provided in the accompanying financial statements for such potential claims
DONATED GOODS AND SERVICES
Donated Goods The School received software licenses and associated installation and support services at no charge The service provider agreed to waive fees for the first five years through June 30 2017 The value of these goods and associated services meets the criteria for recognition in the financial statements and are recorded at fair value
Donated Services Donated services are recognized as contributions in accordance with FASB ASC 958-605 ldquoAccounts for Contributions Received and Contributions Maderdquo if the services (a) create or enhance non-financial assets or (b) require specialized skills are performed by people with those skills and would otherwise be purchased by the School and (c) are measurable The value of these services meets the criteria for recognition in the financial statements and is recorded at fair value
- 11 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 5 - DONATED GOODS AND SERVICES (Continued)
As part of the national Expeditionary Learning network of schools the School received in-kind services including professional development and school design services through its institutional partner NYC Outward Bound to achieve the objectives of the Expeditionary Learning model
For the year ended June 30 2016 and 2015 the value of various donated goods and services are as follows
2016 2015 Software license and support services $ 6666 $ 6266 Professional development and school design - 96817
$ 6666 $ 103083
NOTE 6 - REVENUE CONCENTRATION
The School receives a substantial portion of its support and revenue from the New York City Department of Education If the charter school laws were modified reducing or eliminating these revenues the Schoolrsquos finances could be materially adversely affected
NOTE 7 - FUNCTIONAL ALLOCATION OF EXPENSE
Directly identifiable expenses are charged to programs and supporting services Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies Management General and Fundraising expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the School
NOTE 8 - EMPLOYMENT CONTRACT
The School entered into a co-employment arrangement with TriNet Group Inc (ldquoTriNetrdquo) a professional employment organization effective May 1 2013 Under the co-employment arrangement TriNet assumes certain employment responsibilities including the payment and reporting employeesrsquo wages and payroll taxes
- 12 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS JUNE 30 2016
(with comparative financial information for June 30 2015)
NOTE 9 - RETIREMENT PLAN
For the benefit of its employees the School participates in a multiple employer defined contribution 401(k) plan through its professional employment organization partner TriNet Group Inc (see Note 8) Under the 401(k) plan all employees of the School can elect to make semi-monthly contributions to a personal retirement account The School will make matching contributions to any employee contributions dollar for dollar up to $500 per employee per calendar year For the year ended June 30 2016 all employees were eligible to participate in the 401(k) plan and all employees were eligible for the employer match Employer match for the years ended June 30 2016 and 2015 were $13490 and $14563 respectively
NOTE 10 - SUBSEQUENT EVENTS
The School has evaluated its subsequent events through September 22 2016 the date that the accompanying financial statements were available to be issued The School has no material events requiring disclosure
- 13 shy
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET
NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
INDEPENDENT AUDITORSrsquo 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
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) which comprise the statement of financial position as of June 30 2016 and the related statements of activities and cash flows for the year then ended and the related notes to the financial statements and have issued our report thereon dated September 22 2016
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements we considered the Schoolrsquos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schoolrsquos internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entityrsquos financial statements will not be prevented or detected and corrected on a timely basis A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
- 14 shy
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
TO THE BOARD OF TRUSTEES OF LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Schoolrsquos financial statements are free from material misstatement we performed tests of its compliance with certain provisions of laws regulations contracts and grant agreements noncompliance with which could have a direct and material effect on the determination of financial statement amounts However providing an opinion on compliance with those provisions was not an objective of our audit and accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Schoolrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Schoolrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
New York New York September 22 2016
- 15 shy
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
INDEPENDENT AUDITORSrsquo REPORT ON COMMUNICATION OF INTERNAL CONTROL MATTERS
JUNE 30 2016
_________
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
FRUCHTER ROSEN amp COMPANY PC CERTIFIED PUBLIC ACCOUNTANTS
156 WEST 56TH STREET NEW YORK NEW YORK 10019
TEL (212) 957-3600 FAX (212) 957-3696
September 22 2016
Audit Committee of the Board of Trustees Launch Expeditionary Learning Charter School
In planning and performing our audit of the financial statements of Launch Expeditionary Learning Charter School (the ldquoSchoolrdquo) as of and for the year ended June 30 2016 in accordance with auditing standards generally accepted in the United States of America we considered the Schools internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Schools internal control Accordingly we do not express an opinion on the effectiveness of the Schoolrsquos internal control
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect and correct misstatements on a timely basis A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the Schools financial statements will not be prevented or detected and corrected on a timely basis
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses Given these limitations during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses However material weaknesses may exist that have not been identified
Exhibit I accompanying this letter summarizes corrective action taken by the School on prior yearrsquos observation We determined that this observation did not constitute a significant deficiency or material weakness
This communication is intended solely for the information and use of management Board of Trustees federal state and local awarding agencies The State Education Department of the State University of New York and others within the School and is not intended to be and should not be used by anyone other than these specified parties
We appreciate your cooperation and the assistance we received during the course of our audit
New York New York September 22 2016
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
JUNE 30 2016
CONTENTS
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE 1
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
LAUNCH EXPEDITIONARY LEARNING CHARTER SCHOOL MANAGEMENT LETTER
EXHIBIT I ndash CORRECTIVE ACTION TAKEN ON PRIOR YEAR OBSERVATION
A INSURANCE COVERAGE
Observation
We noted insurance coverage under business personal property excluding computers and leasehold improvements is limited to $100000 This coverage appears low based on replacement cost of the above mentioned property and equipment of approximately $227000 at June 30 2015 Therefore we believe the School is underinsured in regards to the above coverage
Recommendation
We recommend an increase of coverage for business personal property to cover at minimum the cost maintained in the fixed asset register In addition the School should periodically review insurance coverage to ensure proper and adequate means by which to preserve School assets
Corrective Action Taken
During 2016 the School increased coverage of business personal property to cover the cost of assets maintained in the fixed assets register
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
Table A Charter School Enrollment an Retention13 Targets for Future Charter TermsEnrollment Targets Retention Targets
Subgroups
CurrentEnrollment
Percentage13 atCharter School
ComparableDistrict
Percentages forRelevant Grade
Level(s)EconomicallyDisadvantaged
909 907
EnglishLanguageLearners
29 44
Students withDisabilities
270 270
Current Retention13 ComparablePercentage13 at DistrictCharter School Percentages for
Relevant GradeLevel(s)
878 798
1000 746
881 814
Launch Charter School is currently13 meeting13 or exceeding13 5 out of 6 of the Enrollment andRetention13 Targets as represented13 in13 Table A
Through our recruitment efforts in District 16 and surrounding districts we plan to continue tomeet and exceed these targets Launch Charter13 School will continue to partner13 with DemocracyBuilders for student recruitment canvassing and13 literature distribution
Through Launchrsquos recruitment efforts in District 16 and surrounding districts there is asignificant outreach made to the economically disadvantaged During the 2016-shy‐201713 recruitment13 season Democracy Builders distributed Launch applications and brochures to thefollowing NYCHA communities Kingsborough houses Albany Houses Brevoort13 Houses VandykeHouses Brownsville Houses Howard13 Houses Mayor Seth13 Low Houses Tilden13 HousesStuyvesant Garden Houses I amp II Saratoga13 Square13 Houses Eleanor Roosevelt II HousesTompkins Houses and Marcus Garvey Houses
Launch will provide applications brochures and recruitment materials in Spanish and all otherlanguages representative of the community as needed13 Translated materials will13 be madeavailable13 to Democracy Builders To communicate13 with ELL families Launch will continue13 to use13 phone translation13 services and13 in-shy‐person interpreters at open houses and recruitment eventsDuring the school year Launch will provide ELL families with school communication in theirpreferred13 language
Launch will continue to seek13 and develop relationships with schools and organizations that13 servefamilies of13 elementary school children within the community including those that13 servicestudents13 with disabilities13 and English Language Learners These include but are not limited tolocal13 public schools local13 community boards community-shy‐based organizations13 (health-shy‐based13 organizations WIC13 Centers etc) public libraries and13 recreation13 centers in13 the communityschool district In addition to mailings13 announcing our recruitment period Launch staff willcontinue to make presentations13 to schools and13 other programs that have potential applicantsThis information will include school brochures and the dates of upcoming information sessionsas well as key features of Launchrsquos academic program
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives
State ELA Testing (2pm dismissal 1230pm dismissal on 329)
NYS Math Test (2pm dismissal)
8th Grade Class Trip
May 24-Jun 2 NYS Science Performance Test
6th Grade Crew Trip
Closed - Memorial Day
August (6) SU M T W TH F SA
1 2 3 4 5 6 Aug 3-18
7 8 9 10 11 12 13 Aug 11-12
14 15 16 17 18 19 20 Aug 22
Aug 23 21 22 23 24 25 26 27
28 29 30 31 Aug 24
Aug 31
October (19)
Oct 4-5
SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 Oct 6
16 17 18 19 20 21 22 October 10
23 24 25 26 27 28 29 Oct 11
30 31 Oct 28
December (12)
Dec 13-14
SU M T W TH F SA
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
February (14) SU M T W TH F SA
1 2 3 4 Feb 1
5 6 7 8 9 10 11
Feb 14-16 12 13 14 15 16 17 18
19 20 21 22 23 24 25 Feb 20-24
26 27 28 Feb 27
April (15) SU M T W TH F SA
2 3 4 5 6 7 8
9 10 11 12 13 14 15 April 10-14
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
June 1-2
SU M T W TH F SA June 5
1 2 3 June 9
4 5 6 7 8 9 10 June 15-16
11 12 13 14 15 16 17 June 19
18 19 20 21 22 23 24 June 21
25 26 27 28 29 30 31 June 20-23
June (13)
All Staff Pre-service
Staff Retreat
First Day for 6th Grade
First Day for New 7th and 8th Grade
First day for all returning students
Back to School Night 7th Grade 6pm
IA 1
Picture Day
Columbus Day
Staff In-Service No School
End of Q1
IA 2
Dec 22-Jan 1 Closed - Winter Break
1230 Release-GradingampReporting
ELA IA3
Closed - Mid-Winter Break
No Students - Staff In-Service
No Students - Spring Break
7th Grade Class Trip
NYS Science Written Exam
End of Quarter - 1230 Release
Presentations of Learning
Last Day - BBQ and 12pm Dismissal
8th Grade Graduation
No Students - Staff In-Service
Legend Staff Inservice - No Students Attend Closed - Staff and Students Off SLCExhibPOLFamily Event Half-Day for Reporting Crew Adventure Week State Exams Interim Assessments Reteaching Intensives