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2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

Aug 01, 2020

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Page 1: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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623425

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NOPQRSSTUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQ k_^VPSl_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ` J

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gtLKEJltIJREFDJUKHJTEUJGHEKGJEKDFHHOEKG ltB8

gtLKEJIJSLWLHEJgtLKEJJXYJgtLKEJlt QTQB

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EFJGFHGHFGEJ_O`PFPRGHZGPaNJELMNFOPGQHNRJMNHJSTPUObJEFJGFHGHFGEJUVHOLKLGDFGLWEJUJAEKHLGDE AEDJCPLHHWJNLDGJabbJGFDEGPEDJGPEJNFHHFXLKDI

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123425

OGJXEJLKGHHEHJLKJGPLJGFHGHFGLFKJLJHENLKEHJFJNFHHFXI

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NOPQeRSS TUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQSk_^VP l_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ`oS E`MUYINNJcNFNdPGJeYRGRJYHJNLMNFOPGQHNRJRTYQUOJFYGJcNJHNMYHGNOJPFJGTNJZcYaN eZUeQUZGPYFRW

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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

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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

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FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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^TJNWGOQJ_VZPRHJWJYRZPRH`JWFJaVFRJbcdJ^cSe

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bTJNWGOQJ_VZPRHJWJYRZPRH`JaW]F]FfJGgRJLWOHXJ^cSehSiJjkgWWQJlROH

|PpNRNp

623425

mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

|PpNRNp

eTJ_VZPRHJWJgWG]FfJYRZPRH`J^cSehSidJO`J`RGJPIJGgRJPIhQOh`dJHR`WQVG]WFJWH

Z]FVGR`

|PpNRNp

iTJ_VZPRHJWJLWOHXJYRRG]Ff`JUWFXVkGRXJ]FJGgRJ^cSehSiJjkgWWQJlROH

ur

iTJ_VZPRHJWJLWOHXJYRRG]Ff`JjkgRXVQRXJWHJGgRJ^cSihSiJjkgWWQJlROH

uv

NgOFjJIWVT

523425

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

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FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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FGHIHJGIKLMHNOPQIRGOHL STGULGHNOPQIRGOHLGULPVWXGPVYLONLZ[[LJTIPRVPLUJTOOKUL]PO^GYVLRTVLNOKKO_GH`LQVIUXPVULONLNGUJIK aVPNOPQIHJVLONLRTVLJTIPRVPLUJTOOKLGHLZaaVHYGbLcLdSORIKLebaVHYGRXPVULIHYLZYQGHGURPIRG^V

ebaVHYGRXPVUL]VPLfTGKYgh J

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NOPQRSSTUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQ k_^VPSl_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ` J

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gtLKEJltIJREFDJUKHJTEUJGHEKGJEKDFHHOEKG ltB8

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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 10: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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EFJGFHGHFGEJ_O`PFPRGHZGPaNJELMNFOPGQHNRJMNHJSTPUObJEFJGFHGHFGEJUVHOLKLGDFGLWEJUJAEKHLGDE AEDJCPLHHWJNLDGJabbJGFDEGPEDJGPEJNFHHFXLKDI

MJEFIEJGPEJDEHEWFKGJAFDGLFKJNDFOJGPEJYAEDFKKEHJEDWLGEJGFGZJDFXJFKHJGPEJYOFKFDEOEKGJFKH DEKEDFHZJGFHOKJMNDFOJGPEJKFHLGEHJlt7QR=JSGPEHHEJFNJTKGGLFKFHJUJAEKEV

ltMJVKYJGFKGDFGGEHJFHOLKLGDFGLWE9OFKFDEOEKGJNEEJAFLHJGFJFGPEDJFDDFKL[FGLFKJFDJGFDAFDFGLFK

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123425

OGJXEJLKGHHEHJLKJGPLJGFHGHFGLFKJLJHENLKEHJFJNFHHFXI

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NOPQeRSS TUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQSk_^VP l_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ`oS E`MUYINNJcNFNdPGJeYRGRJYHJNLMNFOPGQHNRJRTYQUOJFYGJcNJHNMYHGNOJPFJGTNJZcYaN eZUeQUZGPYFRW

gtLKEJIJ]EHEWFKGJCEDFKKEHJSEDWLGEJCFGJM]FXV

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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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NgOFjJIWVT

523425

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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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NOPQRSSTUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQ k_^VPSl_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ` J

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MJEFIEJGPEJDEHEWFKGJAFDGLFKJNDFOJGPEJYAEDFKKEHJEDWLGEJGFGZJDFXJFKHJGPEJYOFKFDEOEKGJFKH DEKEDFHZJGFHOKJMNDFOJGPEJKFHLGEHJlt7QR=JSGPEHHEJFNJTKGGLFKFHJUJAEKEV

ltMJVKYJGFKGDFGGEHJFHOLKLGDFGLWE9OFKFDEOEKGJNEEJAFLHJGFJFGPEDJFDDFKL[FGLFKJFDJGFDAFDFGLFK

MJEFIEJGPEJGFGFHJNDFOJFXFWEJFKHJHLWLHEJLGJXYJGPEJYEFDREKHJTEUJEKDFHHOEKGMJJEPEJDEHEWFKGJAFDGLFKJGPFG

123425

OGJXEJLKGHHEHJLKJGPLJGFHGHFGLFKJLJHENLKEHJFJNFHHFXI

VHOLKLGDFGLWEJUJAEKHLGDEIJJVHOLKLGDFGLFKJFKHJOFKFDEOEKGJFNJGPEJGPFDGEDJGPFFHJLKGHHEJGPE FGGLWLGLEJFKHJAEDFKKEHJFNJGPEJFNNLGEJFNJGPEJGPLENJGPFFHJFNNLGEDJGPEJNLKFKGEJFDJXLKEJFNNLGE GPFFHJFAEDFGLFKJAEDFKKEHJHFGFJOFKFDEOEKGJFKHJDEAFDGLKDJPOFKJDEFDGEJGEGPKFHFDYJEGGMJNG FHFJLKGHHEJGPFEJFHOLKLGDFGLWEJFKHJOFKFDEOEKGJEDWLGEJADFWLHEHJXYJFGPEDJFDDFKL[FGLFKJFD GFDAFDFGLFKJFKJXEPFHNJFNJGPEJGPFDGEDJGPFFHJNFDJXPLGPJGPEJGPFDGEDJGPFFHJAFYJFJNEEJFDJFGPED GFOAEKFGLFKMJJSFJKFGJLKGHHEJGPEJTEUJFNJAEDFKKEHJXPFEJDFHEJLJGFJHLDEGGHYJAAFDGJGPE LKGDGGLFKFHJADFDDFOMJJ

NOPQeRSS TUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQSk_^VP l_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ`oS E`MUYINNJcNFNdPGJeYRGRJYHJNLMNFOPGQHNRJRTYQUOJFYGJcNJHNMYHGNOJPFJGTNJZcYaN eZUeQUZGPYFRW

gtLKEJIJ]EHEWFKGJCEDFKKEHJSEDWLGEJCFGJM]FXV

gtLKEJltIJ^FKFDEOEKGJFKHJ_EKEDFHJCFGJMCFHOKV

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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 16: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

OGJXEJLKGHHEHJLKJGPLJGFHGHFGLFKJLJHENLKEHJFJNFHHFXI

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NOPQeRSS TUQSVWXOYZ[PVOWSOWSPUQS]UQ^_`QSOXSa_W]PVOW[`SbcdQWeQeSOWSd[fQeSghigjSOXSPUQSk_^VP l_V^QS][WSUQ`dSe]UOO`eS`O][PQSPUQS[ZO_WPeSPOS_eQSVWSPUQSPmOSdQYSd_dV`S][`]_`[PVOWeR UPPdRnnmmmodhpoWqeQ^ofOrnde]nk_^VPl_V^QoUPZ`oS E`MUYINNJcNFNdPGJeYRGRJYHJNLMNFOPGQHNRJRTYQUOJFYGJcNJHNMYHGNOJPFJGTNJZcYaN eZUeQUZGPYFRW

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523425

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 17: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 18: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 19: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 20: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

- -

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

ContributionsFoundations $2500 $-

15143 -2000 -

-1070 -6666 -

-

$2500 $105879 Individuals 15143 8810 Corporations 2000 2000

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 21: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

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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

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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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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Z]FVGR`

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ur

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523425

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

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 22: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Executive Management 100 69726 22313 - 6136 24544 122718

Instructional Management 200 181071 57944 - - - 239015

Deans Directors amp Coordinators 400 279792 89535 - - - 369327

CFO Director of Finance 100 - - - - 88409 88409

Operation Business Manager 100 70706 22626 - - - 93332

Administrative Staff 300 134985 43196 - - - 178181

TOTAL ADMINISTRATIVE STAFF 12 736281 235614 6136 112952 1090983

INSTRUCTIONAL PERSONNEL COSTS

Teachers - Regular 1800 878454 281110 - - - 1159564

Teachers - SPED 1100 - 708622 - - - 708622

Substitute Teachers - - - - - - -

Teaching Assistants 600 195212 191309 - - - 386521

Specialty Teachers 300 146409 46852 - - - 193261

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

CY Per Pupil Rate

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7R

MNO WHIHFHGDFGCD SEAFDGEH 899RJT =979=

MNO WHIHFHGDFGCD MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

MNO WHIHFHGDFGCD WHHEHJHFJXEY LCHGHCF 899RD=979=

MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7=

8 9

MQOFlJIWY

123421

EFGHIJKLJMFNOHGPQPORJSOTNUOHV LMNOPQRSMOpSqPrstrutvruw

xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 23: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

PROGRAM SERVICES SUPPORT SERVICES

OTHER FUNDRAISING TOTAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

REGULAR EDUCATION

SPECIAL EDUCATION

MANAGEMENT amp GENERAL

Aides - - - - - - -

Therapists amp Counselors 200 97606 31234 - - - 128840

Other - - - - - - -

TOTAL INSTRUCTIONAL 40 1317681 1259128 2576808

NON-INSTRUCTIONAL PERSONNEL COSTS

Nurse - - - - - - -

Librarian - - - - - - -

Custodian - - - - - - -

Security - - - - - - -

Other - - - - - - -

TOTAL NON-INSTRUCTIONAL

SUBTOTAL PERSONNEL SERVICE COSTS 52 2053962 1494742 6136 112952 3667792

PAYROLL TAXES AND BENEFITS

Payroll Taxes 184680 117570 - 1355 15860 319465

Fringe Employee Benefits 252167 160532 - 1850 21656 436205

Retirement Pension 9897 6301 - 73 850 17120

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

SCHOOL OPERATIONS

Board Expenses - - - - 3000 3000

Classroom Teaching Supplies amp Materials 75190 31927 - 1434 1274 109825

Special Ed Supplies amp Materials - - - - - -

Textbooks Workbooks 71591 22909 - - - 94500 This line contains all textbooks and workbooks and literature books as well as other m

Supplies amp Materials other 15720 5030 - - - 20750

Equipment Furniture 7917 5392 - 43 468 13820

Telephone - - - - - -

Technology - - - - - -

Student Testing amp Assessment 23939 7661 - - - 31600

Field Trips 80208 25667 - - - 105875

Transportation (student) 3030 970 - - - 4000

Student Services - other 18750 6000 - - - 24750

Office Expense 32380 22053 - 176 1914 56524

Staff Development 47602 21205 - 90 978 69875

Staff Recruitment 12374 8427 - 67 732 21600

Student Recruitment Marketing 40151 12849 - - - 53000

School Meals Lunch 5966 1909 - - - 7875

Travel (Staff) - - - - 2000 2000

Fundraising - - - - - -

Other 2864 1951 - 16 169 5000

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 24: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

DEPRECIATION amp AMORTIZATION 164210 111840 - 895 9709 286655

DISSOLUTION ESCROW amp RESERVES CONTIGENCY - - - - - -

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

v

EFGHIJKJLMNJNOPQR LMNOPQRSMOpSqPrstrutvruw

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STJUVHHRFGJLWOHXJYRZPRHJ[FWHZOG]WF

zQNOpp ~M xNOP |Mp SSpNN OpPMS

OOpp OyMON pp

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|PpNRNp

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|PpNRNp

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523425

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

EFGHIJKLJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWF CDEFGEHIJ7899lt7=

gtFGJAHFGEHIJ789ltlt9lt7=

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LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

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MNOJNEFDEEDJCF PFEJ7QJlt7R

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123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 25: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

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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

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xMypPu

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GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 26: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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123425

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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

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LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

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RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

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123421

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SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

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YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

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T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 27: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

_________

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 28: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

v

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NgOFjJIWVT

523425

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

EFGHIJKLJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWF CDEFGEHIJ7899lt7=

gtFGJAHFGEHIJ789ltlt9lt7=

BEACDGJDEFFGEJHFJGEFDEEDJFFHJFHIHFHGDFGCDJGFJJHFGK

LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

L)K-KJMNOPQNHJSGGHUGUWFJMO^N

MNOJNEFDEEDJCF PFEJ7QJlt7R

MNOJNEFDEED SEAFDGEH 899RJT =979=

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MNOJNEFDEED WHHEHJHFJXEY LCHGHCF 899RD=979=

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L)K-KJSRTUFUVGHOGWHJkWVUGUWFJSGGHUGUWFJMO^N

MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7R

MNO WHIHFHGDFGCD SEAFDGEH 899RJT =979=

MNO WHIHFHGDFGCD MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

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MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7=

8 9

MQOFlJIWY

123421

EFGHIJKLJMFNOHGPQPORJSOTNUOHV LMNOPQRSMOpSqPrstrutvruw

xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 29: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

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OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

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hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

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8 9

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123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

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YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

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T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 30: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

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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

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123421

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xMypPu

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GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 31: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

Personnel service costs Adminstrative staff personnel 13 606208$ 473352$ $ 1079560 54198$ 3171$ $ 57369 $ 1136929 $ 809466 Instructional personnel 35 1145742 893000 2038742 102078 5971 108049 2146791 1977958 Non-instructional personnel 6 179814 140406 320220 16076 940 17016 337236 427698

Total salaries and staff 54 1931764 1506758 3438522 172352 10082 182434 3620956 3215122

Fringe benefits and payroll taxes 390540 306179 696719 34901 2023 36924 733643 615408 Retirement 7193 5616 12809 643 38 681 13490 14563 Audit services - - - 22250 - 22250 22250 20250 Other purchased professional consulting services 171991 96392 268383 19387 236 19623 288006 357964 Repairs and maintenance - - - 3014 - 3014 3014 2955 Insurance 20183 15446 35629 1426 63 1489 37118 32718 Supplies materials 148714 60479 209193 936 39 975 210168 237492 Equipment furnishings 2249 886 3135 9 - 9 3144 7885 Staff development 28096 17184 45280 1176 49 1225 46505 106133 Marketing and recruiting 54385 24573 78958 768 32 800 79758 88041 Technology 38914 34203 73117 3433 143 3576 76693 55078 Student services 90144 33391 123535 - - - 123535 137955 Office expense 34322 30168 64490 3801 126 3927 68417 85497 Depreciation and amortization 143879 126466 270345 12695 529 13224 283569 174839 Loss on disposal of assets 10982 9653 20635 969 40 1009 21644 7332 Other 362 320 682 33 - 33 715 170

Total 3073718$ 2267714$ $ 5341432 277793$ 13400$ $ 291193 $ 5632625 $ 5159402

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

L)K-KJMNOPQNHJSGGHUGUWFJMO^N

MNOJNEFDEEDJCF PFEJ7QJlt7R

MNOJNEFDEED SEAFDGEH 899RJT =979=

lt7

MNOJNEFDEED MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

lt7

MNOJNEFDEED WHHEHJHFJXEY LCHGHCF 899RD=979=

R

MNOJCJJNEFDEED CFJPFEJ7Q lt7=

=

L)K-KJSRTUFUVGHOGWHJkWVUGUWFJSGGHUGUWFJMO^N

MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7R

MNO WHIHFHGDFGCD SEAFDGEH 899RJT =979=

MNO WHIHFHGDFGCD MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

MNO WHIHFHGDFGCD WHHEHJHFJXEY LCHGHCF 899RD=979=

MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7=

8 9

MQOFlJIWY

123421

EFGHIJKLJMFNOHGPQPORJSOTNUOHV LMNOPQRSMOpSqPrstrutvruw

xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 32: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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8MOM zQNOpptp OMOpyS pN LMOp p xMy

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623425

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|PpNRNp

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Z]FVGR`

|PpNRNp

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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

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gtFGJAHFGEHIJ789ltlt9lt7=

BEACDGJDEFFGEJHFJGEFDEEDJFFHJFHIHFHGDFGCDJGFJJHFGK

LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

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GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 33: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 34: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

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YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 35: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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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

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XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

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OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

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RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

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GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 36: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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|PpNRNp

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mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

|PpNRNp

eTJ_VZPRHJWJgWG]FfJYRZPRH`J^cSehSidJO`J`RGJPIJGgRJPIhQOh`dJHR`WQVG]WFJWH

Z]FVGR`

|PpNRNp

iTJ_VZPRHJWJLWOHXJYRRG]Ff`JUWFXVkGRXJ]FJGgRJ^cSehSiJjkgWWQJlROH

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523425

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

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LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

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L)K-KJSRTUFUVGHOGWHJkWVUGUWFJSGGHUGUWFJMO^N

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MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7=

8 9

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123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 37: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

2016 2015 Computers $ 336567 $ 292576 Equipment 108498 99460 Furniture and fixtures 235497 120172 Software 7397 7397 Leasehold improvements 639014 343100

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

- 1 shy

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|PpNRNp

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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

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LFGEJ

XFVGHYPGUWFVJZWHJPWT[NGUF]JGQNJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWFJMO^NV

MQNJZWW_UF]JGO^NVJHNZNPGJZWHTOGGUF]JUFJGQNJWFUFNJ[WHGOJHN`YUHNRJZWHJaN]NFGV

OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

ORTUFUVGHOGWHVJWFIfJGQNJZYJGUTNJN`YUeONFGJghMEiJWZJVGOZZJWFJjYFNJk)fJL)K+JGQN

hMEJZWHJORRNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)K+JOFRJGQNJhMEJZWHJOFI

RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

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123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

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GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 38: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

v

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xMypPu

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OOpp OyMON pp

t|

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8MOM zQNOpptp OMOpyS pN LMOp p xMy

pMP ~RpONpMStSSOM pPMO SRMpO NOM pppOS5

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523425

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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 39: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

v

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623425

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|PpNRNp

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|PpNRNp

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523425

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

EFGHIJKLJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWF CDEFGEHIJ7899lt7=

gtFGJAHFGEHIJ789ltlt9lt7=

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uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 40: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

_________

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

- 1 shy

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523425

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

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 41: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

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mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

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|PpNRNp

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523425

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

EFGHIJKLJMNOPQNHJOFRJSRTUFUVGHOGWHJSGGHUGUWF CDEFGEHIJ7899lt7=

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OYGQWHUbNRJPQOHGNHJVPQWWVcJJdPQWWVJVQWYRJ[HWeURNfJZWHJGNOPQNHVJOFR

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RN[OHGNRJVGOZZJZHWTJjYIJKfJL)KJGQHWY]QJjYFNJk)fJL)KJYVUF]JGQNJG_WJGO^NV

[HWeURNRc

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MNOJNEFDEEDJCF PFEJ7QJlt7R

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MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7R

MNO WHIHFHGDFGCD SEAFDGEH 899RJT =979=

MNO WHIHFHGDFGCD MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

MNO WHIHFHGDFGCD WHHEHJHFJXEY LCHGHCF 899RD=979=

MNO WHIHFHGDFGH8E LCHGHCFJCF PFEJ7QJlt7=

8 9

MQOFlJIWY

123421

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xMypPu

SUOJGTWXOJWOXYZJPVJHOQXONGP[OJYQJGUOJPFQYHTGPYFJNYXXONGORJGUHY]^UJGUOJYFXPFO

_YHGTXJQYHJNY_XPTFNOJZPGUJ`OZJaYHbJcGTGOJER]NTGPYFJdTZJefghiLjiTkKjJQYH

GOTNUPF^JVGTQQJl]TXPQPNTGPYFVqJEFGOHJGUOJHOXO[TFGJQ]XXJGPOJOl]P[TXOFGJirSEjJNY]FG

YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

gJUTXQJGPOJGOTNUOHVJZY]XRJUT[OJTFJrSEJNY]FGJYQJeeqgqJKQJYHOJGUTFJYFOJNYX]F

T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

vzP~P|QOP|PQpOpSPOpMpPOPMOPpMNOOppPpMNP|PpppOMPSSpP|PNp|SM ur MNN||POpMyPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNP|PMpPOpQpS r|POpQpPOMP|pypPMQOPwruw

kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 42: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

v

EFGHIJKJLMNJNOPQR LMNOPQRSMOpSqPrstrutvruw

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623425

mTJNWGOQJ_VZPRHJWJYRZPRH`JnRoOHG]FfJGgRJLWOHXJXVH]FfJGgRJ^cSehSiJjkgWWQJlROH

|PpNRNp

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|PpNRNp

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523425

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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 43: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

_________

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

- 1 shy

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523425

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

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 44: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

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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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 45: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

- 1 shy

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523425

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

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
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523425

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

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123421

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 47: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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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

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YQJGOTNUOHVJPFJOTNUJNYX]FqJJrYHJOsT_XOIJTJVNUYYXJZPGUJeJJQ]XXJGPOJGOTNUOHVJTFR

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

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SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 48: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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523425

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

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MNO WHIHFHGDFGCD MHUUHFGJVFDFFG LCHGHCFJ899R TJ=979=

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T__XPOVJGYJTJ_THGPN]XTHJGOTNUOHIJ_XOTVOJVOXONGJYFOJNYX]FJQYHJGUOJrSEJNY]FGq

cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

uzP|OMP~P|QOP|PpOpSPpMpNPwruw u

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kzP~P|QOP|PQpOpSPOpMpNPOPO|PpMN u|PpMP|PlpMPpRpppPwruw

zP~P|QOP|PQpOpSPOpMpNPOPppRO|MmQNpNNPR|pNN|MPMONOPMOpOP|POM v pRpppPwruw

wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 49: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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

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123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 50: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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123421

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cGTQQJL]TXPQPNTGPYFVJiM]FOJLJIJeJKjJ `YGO|JYX]FVJVUY]XRJV]JGYJGUOJrSEJNY]FGJYQJSOTNUOHVJYFJM]FOJLJIJeJKIJTFRJOTNU GOTNUOHJVUY]XRJWOJPFJYFXIJYFOJNYX]Fq

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 51: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

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wzP~P|QOP|PQpOpSPOpMpNP|PS|P|OPO vO|PMP|POpPR|P|QPMOpy|pNPwruw

SUTFbJIY]q

123421

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 52: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

FY17 Job Title

Principal

AP - Instruction

AP - Culture

Special Services Manager

Director of Outreach and EL Structures

Director of Operations

Director of Finance

Finance Associate

Office Manager

Operations Associate

Literature Teachers

Writing Teachers

Math Teachers

Science Teachers

Social Studies Teachers

Enrichment Teachers

Physical Education Teacher

Special Education Teachers

121 Teacher

121 Associate

Dean

Counselor

Social Worker

Deans Aide

Schoolwide Aide

Direct Supervisor

Board of Trustees

Principal

Principal

Principal

Principal

Principal

Principal

Director of Finance

Director of Operations

Director of Operations

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Instruction

AP - Culture AP - Culture

AP - Instruction

Special Services Manager

Special Services Manager

AP - Culture

AP - Culture

AP - Culture

AP - Culture

AP - Culture

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows
Page 53: 2015-2016 Annual Report and Financial Statement...wfgej: wfgej5 skvjqwjgnljwmnoopjohjthljgnljwmnoopjwuglwjmo pomtglh 3e> sivjjpltwljpuwgjgnljglhswjorjiozhjmzhhlfgjmo pomtguofv.fgej>lgiic

1580 Dean St Brooklyn NY 11213

wwwlaunchschoolnet

1580 Dean St Brooklyn NY 11213

(718) 604-6910

2016-2017 School Calendar

July SU M T W TH F SA

September (21) SU M T W TH F SA

1 2 3

4 5 6 7 8 9 10 Sept 5

11 12 13 14 15 16 17 Sept 7

Sept 27 amp 28

18 19 20 21 22 23 24

25 26 27 28 29 30

November (18) SU M T W TH F SA

1 2 3 4 5 Nov 2

6 7 8 9 10 11 12 Nov 10

13 14 15 16 17 18 19 Nov 11

20 21 22 23 24 25 26 Nov 23-25

27 28 29 30

January (20) SU M T W TH F SA

1 2 3 4 5 6 7 Jan 2

8 9 10 11 12 13 14

15 16 17 18 19 20 21 Jan 16

22 23 24 25 26 27 28 Jan 27

29 30 31

March (23)

March 7-9

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 March 24

26 27 28 29 30 31 March 28-30

May (22) SU M T W TH F SA

1 2 3 4 5 6 May 2-4

7 8 9 10 11 12 13 May 17-19

14 15 16 17 18 19 20

21 22 23 24 25 26 27 May 23-26

28 29 30 31 May 29

Closed - Labor Day

Back to School Night 8th Grade 6pm

Parent-Teacher Conferences T (5-7pm) W (3-8pm)

1230 Release-GradingampReporting

Student Led Conferences (all day)

Closed - Veterans Day

Closed - Thanksgiving

No Students - Staff In-Service

Closed - MLK Jr Day

End of Q2

Math IA 3

End of Q3

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

  • 669929838-Launch - 63016 Audit Report amp Mgmt Letterpdf
    • fspdf
      • Statements of Fin Position
      • Statements of Activities
      • Schedule of Functional Expenses
      • Statements of Cash Flows