803 Statement of Net Position - continued The following do not meet the definition of Deferred Outflows of Resources and Deferred Inflow of Resources as they have present service capacity or represent a present obligation to sacrifice resources. Deferred Outflows of Resources Prepayments Deferred Inflows of Resources Resources received in advance of an exchange transaction Amounts included within the Net Position should be broken down into the following three categories: Net Investment in Capital Assets - Includes capital assets, including restricted capital assets, net of accumulated depreciation and reduced by any debt attributable to the acquisition, construction or improvement of those assets. The Net Invested in Capital Assets, Net of Related Debt should be calculated using the formula below and disclosed in the notes to the financial statements: Cost of Capital Assets Acquired Less: Accumulated Depreciation Less: Outstanding Debt Related to Capital Assets Equals: Net Investment in Capital Assets Restricted Net Position – Includes net position by major categories of the restrictions, if any, either on the face of the Statement of Net Position or in the notes to the financial statements. Unrestricted Net Position – Includes net position that does not meet the definition of Net Investment in Capital Assets, Net of Related Debt or Restricted Net Position. 804 Statement of Revenue, Expenses and Changes in Net Position The Statement of Revenue, Expenses and Changes in Net Position reflects the operating and non-operating activities of the charter school. The statement distinguishes between operating and non-operating revenues and expenses, which should be presented under the captions Operating Revenues, Operating Expenses and Non Operating Revenues and Expenses. Revenues from Capital Contributions, special and extraordinary items and transfers should be reported separately in the statement after the Non Operating Revenues and Expenses section.
1008 Procurement Policy In accordance with Chapter 46 of the acts of 1997, the charter school regulations state that the charter school administrator who serves as procurement officer must obtain a Massachusetts Certified Public Purchasing Official (MCPPO) certificate. (Horace Mann Charter school administrators are also required to obtain an MCPPO certificate). There is not a requirement to be MCPPO designated; the law requires that the administrator responsible for procurement receives a MCPPO certificate stating that they have successfully completed either the Public Contracting Overview seminar or the Charter School Procurement seminar. Recommended Audit Procedures: Examine evidence and determine that the charter school administrator who serves as procurement officer has participated and obtained the certificate of completion of either the Public Contracting Overview seminar or the Charter School Procurement seminar. If the individual has not participated in the required seminars, determine if the individual in enrolled in or on waitlists for the required seminar. 1009 Charter Amendments In accordance with the provisions of 603 CMR 1.11 any major changes in the charter school’s operation must be approved by the Commonwealth of Massachusetts Board of Elementary and Secondary Education prior to the changes becoming effective. Major changes are described as those that fundamentally affect a charter school’s mission, organizational structure, or educational program. If the charter school makes a minor change in its operations the board of trustees must submit a request to amend their charter to the commissioner for approval. Minor changes include revisions to by-laws, the schedule, enrollment process, expulsion policy, school's name, and board membership. Recommended Audit Procedures: Determine if the charter school made any changes to their programs or initial governance that requires an amendment to their charter. If so, determine if the board of trustees approved the amendment request, communicated the changes to the Department, and subsequently received approval from the Commissioner and/or Board of Elementary and Secondary Education (603 CMR, § 1.11).
APPENDIX C School Closeout Procedures Purpose: The purpose is to provide standard procedures for closing a school when the charter has been revoked by the Board of Elementary and Secondary Education (Board). The procedures indicated may be supplemented by procedures determined relevant based on the auditors professional judgment or additional procedures required by the Board or by the Department of Elementary and Secondary Education (DESE). Note: the audit closeout period should be determined by the auditor in consultation with DESE. Responsibilities: School management/board of trustees: Develop control procedures to properly safeguard assets; Designate an individual who is responsible for the accuracy and timeliness of the closeout process; Assign a Trustee or authorize another individual to perform the disbursement of any funds; Providing an accurate accounting of the school’s federal and state grants; Providing an accurate accounting of all financial activities of the school through the agreed upon audit period; and Take an accurate inventory of assets held at the audit period end date and properly account for any assets sold after the notice of the charter revocation has been received In certain situations, the Massachusetts Department of Elementary and Secondary Education may: Determine the audit period and timing Coordinate with the charter school regarding the school’s hiring the CPA to perform the closeout audit Auditors: Render an opinion on the financial statement of the school Issue a report in accordance with Government Auditing Standards on the school’s internal control over financial reporting and on tests of compliance with certain laws, provisions , regulations, contracts, grant agreements, and other matters If applicable, issue a report on in accordance with OMB Uniform Guidance