106-16 independent auditor’s report, oasis academy charter

OASIS ACADEMY CHARTER SCHOOL

FALLON, NV.

ANNUAL FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30th, 2015

106-16

OASIS ACADEMY CHARTER SCHOOL

JUNE 30th, 2015

TABLE OF CONTENTS

Independent Auditor’s Report 1-2

Management’s Discussion and Analysis M-1 to M-9

Basic Financial Statements:

Government-Wide Financial Statements: - Statement of Net Position 3 - Statement of Activities 4

Governmental Funds Financial Statements: - Balance Sheet 5 - Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position 6 - Statement of Revenues, Expenditures, and Changes in

Fund Balances 7 - Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 8

Notes to Financial Statements 9-25

Required Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget (Budgetary Basis) and Actual – General Fund 26-29 Reconciliation of the General Fund (GAAP Basis) and Special Revenue Fund (GAAP Basis) to the General Fund (Budgetary Basis) 30 Schedule of Academy’s Share of Net Pension Liability 31 Schedule of Academy’s Contributions 32

Notes to Required Supplementary Information 33-34

Other Information: Independent Auditor's 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 35-36

www.eidebai l ly.com301 W. Tolas Pl. | Fallon, NV 89406-5855 | T 775.423.6505 | F 775.423.4799 | EOE

Independent Auditor’s Report To the Board of Directors Oasis Academy Charter School Fallon, Nevada Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the major fund, and the aggregate remaining fund information of Oasis Academy Charter School, Fallon, Nevada, (the School), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the School’s basic financial statements as listed in the table of contents. Management’s 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. Auditor’s 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 of 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 auditor’s 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 entity’s preparation and 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 entity’s 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 opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information of Oasis Academy Charter School as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principle As discussed in Notes 1 and 11 to the financial statements, the School has adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which has resulted in a restatement of the net position as of June 30, 2014. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages M-1 through M-9, budgetary comparison information on pages 26 through 29, the reconciliation of the General Fund (GAAP basis) and Special Education Fund (GAAP basis) to the General Fund (budgetary basis) on page 30, the schedule of proportionate share of the net pension liability on page 31, the schedule of contributions on page 32, and notes to required supplementary information on page 33 through 34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management’s discussion and analysis, the schedule of proportionate share of the net pension liability, and the schedule of contributions in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information included because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information, the reconciliation of the General Fund (GAAP basis) and Special Education Fund (GAAP basis) to the General Fund (budgetary basis), and the notes to required supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 20, 2015, on our consideration of the School’s 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 School’s internal control over financial reporting and compliance.

Fallon, Nevada November 20, 2015

2

M‐1

Management’s Discussion and Analysis

As the management of Oasis Academy Charter School (School), we offer readers of the School’s annual financial report this narrative overview and analysis of the School’s financial activities for the past fiscal year.

The School’s Discussion and Analysis are an introduction to the School’s basic financial statements and are intended to:

Assist the reader in focusing on significant financial issues

Provide an overview of the School’s financial activities

Identify changes in the School’s financial position and its ability to address challenges in subsequent years.

Identify any material deviations from the financial plan and approved budget

Funding available from the State of Nevada, which is Oasis Academy Charter School’s primary source of revenue, increased throughout fiscal 2015 and as a result the School was able to meet all obligations and expects to continue to do so in the future.

Basic Financial Statements

Oasis Academy Charter School can demonstrate its fiscal accountability to the public with the use of financial statements. The basic financial statements are the Government-wide Financial Statements and Fund Financial Statements. Notes about the financial statements provide more information and detail about the School’s accounting practices and important economic events. The public can review this information and gain a better understanding of the financial position of the School and the audited financial reports will reassure the public about whether the basic financial statements represent the School’s financial situation in a fair manner.

Government-Wide Financial Statements

The Government-Wide financial statements are designed to provide the readers with a broad overview of the School’s finances in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the School’s assets and liabilities with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School is improving or deteriorating.

M‐2

The Statement of Activities presents information showing how the School’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods.

Both of the Government-Wide Financial Statements distinguish functions that are supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). Oasis Academy Charter School currently has no business-type activities so the Statement of Activities only reflects governmental activities.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School’s funds consist of governmental type funds only.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-Wide Statements described above. However, unlike the Government-Wide Financial Statements, Governmental Fund Financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

The focus of the Governmental Fund Statements is on major funds. The School has two individual Governmental Funds; the General Fund, reported as a major fund, and the Special Education fund reported as a non-major fund. These funds are disclosed separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

Notes to the Financial Statements:

The notes provide required disclosure and information necessary to understand the School’s activities.

Other:

In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information concerning the budgetary comparison schedule for the School’s General Fund (Budgetary basis). This schedule tests compliance with budgetary constraints and management directives to enhance accountability at the fund and function level.

M‐3

Financial Highlights

Government-wide total assets $904,352 including net capital assets of $75,752 increased $533,854 from the prior year balance of $370,498

Government-wide total liabilities of $1,444,913 ($263,032 current and $1,181,881 noncurrent), increased $1,303,709 from the prior year balance of $141,204. $1,326,866 of the increase is related to the implementation of GASB No. 68, Accounting and Financial reporting for Pensions, and amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition from Contributions Made Subsequent to the Measurement Date.

Government-wide total net position of <$548,336> decreased $777,630 from the prior year balance of $229,294. $1,326,866 of the decrease is related to the implementation of GASB No. 68, Accounting and Financial reporting for Pensions, and amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition from Contributions Made Subsequent to the Measurement Date.

The School received general revenues of $2,687,300 as funding from the State of Nevada Distributive School Account, an increase of $1,306,805 from the prior year total of $1,380,495. The significant change was the result of increased enrollment with the expansion of the school’s operations.

The School received grants totaling $59,514 from the State of Nevada, as a pass through from Federal sources, for use in Regular Programs, an increase of $48,310 from the prior year total of $11,204

The School received grants totaling $37,638 from the State of Nevada, as a pass through from Federal sources, for use in Special Programs, an increase of $7,436 from the prior year total of $30,202

The School received $16,512 in funding from the State of Nevada Distributive School Account for use in Special Programs, a decrease of $25,096 from prior year total of $41,608

Total Revenues for the year of $2,815,222 an increase of $1,339,628 from the prior year total of $1,475,594. The significant change was the result of increased enrollment with the expansion of the school’s operations.

Total Expenses for the year of $2,265,986 an increase of $854,850 from prior year total of $1,411,136. The significant change was the result of increased enrollment with the expansion of the school’s operations.

Spending by Program: Regular Programs - Instruction $1,309,939 an increase of $494,347 from the prior

year total of $815,592. The significant change was the result of increased enrollment with the expansion of the school’s operations.

Special Programs - Instruction $124,206 an increase of $40,911 from the prior year total of $83,295

M‐4

Co-curricular & Extra-Curricular - Instruction $10,173 an increase of $1,365 from the prior year total of $8,808

Support Services $819,070 an increase of $317,444 from the prior year total of $501,626. The significant change was the result of increased enrollment with the expansion of the school’s operations.

Transfers from the General Fund to the Other Governmental – Special Education Fund were $68,063 an increase of $36,656 from prior year total of $31,407

Government-wide change in net position $549,236 an increase of $484,778 over the prior year change of $64,458

GOVERNMENTAL-WIDE FINANCIAL STATEMENT ANALYSIS

In order to enhance analysis, comparative information is proved for assets, liabilities, net position, revenues and expense.

Oasis Academy Charter School Net Position

Fiscal Year 2015

Fiscal Year 2014 Change

Current and other assets $ 828,600 $ 308,144 $ 520,456 Capital assets, net of depreciation 75,752 62,354 13,398 Deferred outflows 297,028 - 297,028

Sub-total 1,201,380 370,498 830,882

Current Liabilities 263,032 141,204 121,828 Noncurrent liabilities 1,181,881 - 1,181,881 Deferred inflows 304,803 - 304,803 Sub-total 1,749,716 141,204 1,608,512

Net Investment in Capital Assets 75,752 62,354 13,398 Restricted 10,000 5,000 5,000 Unrestricted (634,088) 161,940 (796,028)

Total Net Position $ (548,336) $ 229,294 $ (777,630)

For more detailed information see the government-wide statement of net position and the notes to the financial statements.

M‐5

Oasis Academy Charter School Change in Net Position

Fiscal Year 2015


Revenues:Program revenues:

Charges for services 9,025$ 5,135$ 3,890$ Operating grants and contributions 114,506 87,467 27,039 Capital grants and contributions - - -

General Revenues:State Aid Not Restricted to Specific Purposes 2,687,300 1,380,495 1,306,805 Other Local Sources 2,222 2,018 204 Federal Aid Not Restricted to Specific Purposes 1,658 - 1,658 Investment Earnings 511 479 32

Total Revenues 2,815,222 1,475,594 1,339,628

Expenses:Instruction:

Regular Programs 1,309,939 815,592 494,347 Special Programs 124,206 83,295 40,911 Co-Curricular & Extra-Curricular 10,173 8,808 1,365

Support Services:Students 2,205 709 1,496 Instruction 41,890 27,711 14,179 General Administration 1,676 2,281 (605) School Administration 320,253 185,568 134,685 Central Services 124,313 101,328 22,985 Operation and Maintenance 328,733 184,029 144,704 Site Improvement 420 - 420 Building Improvement 2,178 1,815 363

Total Expenses 2,265,986 1,411,136 854,850 Prior period adjustments (1,326,866) - (1,326,866)

Increase (Decrease) in Net Position (777,630)$ 64,458$ (842,088)$

M‐6

FINANCIAL ANALYSIS OF THE SCHOOL’S MAJOR FUNDS

Oasis Academy Charter School uses fund accounting and budgetary integration to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds: The focus of Oasis Academy Charter School’s governmental funds is to provide information on current inflows, outflows, and balances of spendable resources. Such information is useful in assessing the School’s current funding requirements. In particular, unassigned fund balance may serve as a useful measure of net resources available for spending at the end of the fiscal year.

Details regarding variances on a fund level are available in separate schedules.

The General Fund is the primary operating fund of the School. At the end of the current fiscal year, unassigned fund balance of the General Fund was $555,568. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 24% of total fund expenditures. The School has a sufficient reserve as of June 30, 2015 to offset any future revenue shortfalls.

In 1993, the State Legislature enacted legislation that required the Special Education Program (previously accounted for the General Fund) to be accounted for in a separate special revenue fund. Because of its size and relationship to the General Fund, it is included in the analysis below.

General and Special Education Funds Expenditures by Type

Fiscal Year 2015

Fiscal Year 2014

Percent Change

Salaries 1,287,663$ 723,826$ 77.9%Benefits 428,633 240,686 78.1%Purchased Services 505,773 293,950 72.1%Supplies 176,506 150,659 17.2%Property 15,996 64,169 -75.1%Other 886 200 343.0%

2,415,457$ 1,473,490$ 63.9%

M‐7

Budgetary Highlights

Oasis Academy’s original budget included numerous estimates to address the planned expansion of the school for the 2014-2015 school year. As estimated amounts where revised and actuals where recorded the School’s budget was amended resulting in sizable variances between the Original and Final budgets.

Revenues - Distributive School Fund (DSA) were budgeted for $2,640,400 but actuals were $2,703,812 a favorable variance of $63,412. The variance is the result of the receipt of more than estimated local tax revenues in Churchill County.

Revenues – Federal Grants were budgeted for $113,638 but actuals were 97,152 an unfavorable variance of 16,486. The variance is the result of less utilization of a grant for classroom teacher training than originally planned.

Expenditures – Regular Instruction were budgeted for $1,474,583 but actuals were $1,408,607 a favorable variance of $65,976. The shortfall is the result of:

o Fewer vacation days utilized by Regular Instruction staff. o Fewer expenditures related to a federal grant for classroom teacher training. o Deferment of supply purchases to future fiscal year(s).

Expenditures – Support Services – School Administration were budgeted for $355,199 but actuals were $344,228 a favorable variance of $10,971. The variance is the result of:

o Fewer vacation days utilized by Regular Instruction staff. o The deferment of services purchases to future fiscal year(s).

General Fund Change in Fund Balance

Fiscal Year 2015


Total revenues 2,761,072$ 1,403,784$ 1,357,288$ Total expenditures 2,283,322 1,390,195 893,127

Excess Revenues over Expenditures 477,750 13,589 464,161

Other Financing UsesTransfers Out (68,063) (31,407) (36,656) Loan Proceeds 96,640 - 96,640 Debt Service (97,777) - (97,777)

Net Change in Fund Balance 408,550 (17,818) 426,368

Beginning Fund Balance 147,018 164,836 (17,818)

Fund BalanceUnassigned 555,568 147,018 408,550

Ending Fund Balance 555,568$ 147,018$ 408,550$

M‐8

Expenditures – Support Services – Central Services were budgeted for $140,365 but actuals were $127,400 a favorable variance of $12,965. The variance is the result of a rebate in fees payable to the School’s sponsor, The Public Charter School Authority.

Capital Assets and Debt Administration

Capital assets are the property, facilities, vehicles, and equipment the school owns. Oasis Academy’s investment in capital assets for its governmental activities as of June 30th, 2015, amounts to $75,752 (net of accumulated depreciation). This investment in capital assets is comprised of Tenant Improvements made to the facility leased by Oasis Academy for its operations and fixtures used in the School’s operations.

The major capital asset event during the current fiscal year was the installation of carpet in areas of the facility leased by Oasis Academy for its operations.

Currently Oasis Academy Charter School has no general obligation debt outstanding.

Future Projects

During fiscal year 2015 the Oasis Academy Board of Directors approved a plan to expand the operations of Oasis Academy to include a college preparation high school with the start of the 2015-2016 school year, a projected growth in student enrollment of 130 comprised of 9th, 10th, and 11th grade students. As part of the planning and preparation process the Board of Directors and Administrative staff of the School accomplished the following in order to service the increased student population:

Obtained additional leased space at the School’s current location.

Submitted and received approval on an amendment to the School’s Charter with the School’s sponsor, The State Public Charter School Authority (SPCSA).

Conducted the hiring process to increase the staff of the School to required levels.

Conducted an open enrollment for potential students that resulted in a preliminary enrollment of 128 students for the 2015-16 school year.

Obtained authorization for early funding via the Distributive School Fund from the SPCSA based on the preliminary enrollment.

The School continues to conduct the necessary activities to accomplish the expansion and all indications are for a successful 2015-2016 school year at the increased capacity.

M‐9

Request for Information

This report has been designed to provide an overview of the Oasis Academy Charter School’s financial position. Questions concerning any of the information contained in this document should be addressed to:

Oasis Academy Charter School

Comptroller

920 W. Williams Ave., Suite 100

Fallon, NV. 89406

(775) 423-5437

OASIS ACADEMY CHARTER SCHOOLSTATEMENT OF NET POSITION

JUNE 30th, 2015

GOVERNMENTAL ACTIVITIES

AssetsCurrent Assets:

Cash and Investments 721,426$ Due from Other Governments 83,569 Receivables 8,055 Prepaid Expenses 5,550

Total Current Assets 818,600

Noncurrent Assets:Restricted Cash 10,000 Capital Assets 80,165 Less: Accumulated Depreciation (4,413)

Total Noncurrent Assets 85,752

Total Assets 904,352

Deferred Outflow of ResourcesDeferred outflows related to pensions 297,028

LiabilitiesCurrent Liabilities:

Accounts Payable 21,788 Accrued Liabilities 241,244

Total Current Liabilities 263,032

Noncurrent Liabilities:Net Pension Liability 1,181,881

Total Noncurrent Liabilities 1,181,881

Total Liabilities 1,444,913

Deferred Inflow of ResourcesDeferred inflows related to pensions 304,803

Net PositionNet Investment in Capital Assets 75,752 Restricted 10,000 Unrestricted (634,088)

Total Net Position (548,336)$

3 See accompanying notes.

OASIS ACADEMY CHARTER SCHOOLSTATEMENT OF ACTIVITIES

FOR THE PERIOD ENDED JUNE 30th, 2015

PROGRAM REVENUESGOVERNMENTAL

ACTIVITIES

EXPENSESCHARGES FOR

SERVICES

OPERATING GRANTS AND

CONTRIBUTIONS

CAPTIAL GRANTS AND

CONTRIBUTIONS

NET (EXPENSE) REVENUE AND

CHANGES IN NET POSITION

Governmental Activities:Instruction:

Regular Programs 1,309,939$ -$ 60,356$ -$ (1,249,583)$ Special Programs 124,206 - 54,150 - (70,056) Co-Curricular & Extra-Curricular 10,173 9,025 - - (1,148)

Total Instruction 1,444,318 9,025 114,506 - (1,320,787)

Support Services:Students 2,205 - - - (2,205) Instruction 41,890 - - - (41,890) General Administration 1,676 - - - (1,676) School Administration 320,253 - - - (320,253) Central Services 124,313 - - - (124,313) Operation and Maintenance 328,733 - - - (328,733) Site Improvement 420 - - - (420) Building Improvement 2,178 - - - (2,178)

Total Support 821,668 - - - (821,668)

Total Governmental Activities 2,265,986$ 9,025$ 114,506$ -$ (2,142,455)

General Revenues:State Aid Not Restricted to Specific Purposes 2,687,300 Other Local Sources 2,222 Federal Aid Not Restricted to Specific Purposes 1,658 Investment Earnings 511

Total General Revenues 2,691,691

Change in Net Position 549,236

Net Position, July 1st, as originally reported 229,294Prior period adjustment for pensions (1,326,866)

Net Position, July 1st, as adjusted (1,097,572)

Net Position June 30th (548,336)$


OASIS ACADEMY CHARTER SCHOOLGOVERNMENTAL FUNDS

BALANCE SHEETJUNE 30th, 2015

MAJOR FUND - GENERAL FUND

NON-MAJOR SPECIAL

REVENUE FUND - SPECIAL

EDUCATION FUND

TOTAL GOVERNMENTAL

FUNDS

ASSETSCash and Investments 712,013$ 9,413$ 721,426$ Due from Other Governments 83,569 - 83,569 Receivables 8,055 - 8,055 Prepaid Expenses 5,550 - 5,550 Restricted Cash - 10,000 10,000

Total Assets 809,187$ 19,413$ 828,600$

Accounts Payable 21,765$ 23$ 21,788$ Accrued Liabilities 231,854 9,390 241,244

Total Liabilities 253,619 9,413 263,032

FUND BALANCESRestricted 10,000 10,000 Unassigned 555,568 - 555,568

Total Fund Balances 555,568 10,000 565,568

Total Liabilities and Fund Balances 809,187$ 19,413$ 828,600$


OASIS ACADEMY CHARTER SCHOOLRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO

THE STATEMENT OF NET POSITIONJUNE 30th, 2015

Total Fund Balances - Governmental Funds 565,568$

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of the related depreciation, used in governmental activities are not financial resources and therefore are not reported in the governmental funds. 75,752

Net pension liability is not due and payable in the current period, and, therefore is not reported in the governmental funds (1,181,881)

Deferred outflows of resources related to pensions are applicable to future periods, and therefore, are not reported as revenue in the governmental funds 297,028

Deferred inflows of resources related to pensions are applicable to future periods, and therefore, are not reported as revenue in the governmental funds (304,803)

Total Net Position - Governmental Activities (548,336)$


OASIS ACADEMY CHARTER SCHOOLGOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFOR THE PERIOD ENDED JUNE 30th, 2015

MAJOR FUND - GENERAL FUND

NON-MAJOR SPECIAL

REVENUE FUND - SPECIAL

EDUCATION FUND

TOTAL GOVERNMENTAL

FUNDS

REVENUESLocal Sources 14,258$ -$ 14,258$ State Sources 2,687,300 16,512 2,703,812 Federal Sources 59,514 37,638 97,152

Total Revenues 2,761,072 54,150 2,815,222 EXPENDITURES

Current:Regular 1,408,607 - 1,408,607 Special - 132,135 132,135 Co-curricular & Extra-Curricular 10,173 - 10,173 Undistributed:

Support Services - Students 2,205 - 2,205 Support Services - Instruction 44,304 - 44,304 Support Services - General Administration 1,676 - 1,676 Support Services - School Administration 344,228 - 344,228 Central Services 127,400 - 127,400 O & M Plant Service 328,733 - 328,733 Site Improvement - - - Building Improvement 15,996 - 15,996

Total Expenditures 2,283,322 132,135 2,415,457

Excess (Deficiency) of Revenues Over Expenditures 477,750 (77,985) 399,765

OTHER FINANCING SOURCES (USES)Transfers In - 68,063 68,063 Transfers Out (68,063) - (68,063) Loan Proceeds 96,640 - 96,640 Debt Service (97,777) - (97,777)

Total Other Financing Sources (Uses) (69,200) 68,063 (1,137)

Net Changes in Fund Balance 408,550 (9,922) 398,628

FUND BALANCE, July 1 147,018 19,922 166,940

FUND BALANCE, June 30 555,568$ 10,000$ 565,568$


OASIS ACADEMY CHARTER SCHOOLRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30th, 2015

Net Change in Fund Balances - Governmental Funds 398,628$

Amounts reported for governmental activities in the statement of activities are different because:

Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net position and allocated over their estimated useful lives as annual depreciation in the statement of activities:

Expenditures for capital assets 15,996$ Less: Current period depreciation (2,598)

13,398

Governmental funds report pension contributions as expenditures. However, in the Statement of Activities, the cost of pension benefits earned is reported as pension expense:

Pension contributions 292,750$ Pension expense (155,540)

137,210

Change in Net Position - Governmental Activities 549,236$


OASIS ACADEMY CHARTER SCHOOL NOTES TO FINANCIAL STATEMENTS

JUNE 30th, 2015

NOTE 1 – Summary of Significant Accounting Policies

The accompanying financial statements of Oasis Academy Charter School, Fallon, Nevada, have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The GASB periodically updates its codification of existing Governmental and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units.

Reporting Entity:

Oasis Academy Charter School (Oasis Academy) is the basic level of government having oversight responsibility and control over all activities related to education at the public charter school in Churchill County, Nevada. The governing board consists of seven members, vacant positions are appointed by the Board of Directors. Oasis Academy receives funding from local, state and federal government sources and must comply with the related requirements of these funding source entities. Oasis Academy was established pursuant to NRS 386 and is not financially accountable for any other entity and the Board of Directors has the authority to adopt and administer a budget.

Accounting Changes:

Oasis Academy implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition from Contributions Made Subsequent to the Measurement Date, in the current year. The implementation of these standards requires governments calculate and report the costs and obligations associated with pensions in their basic financial statements. Employers are required to recognize pension amounts for all benefits provided through Public Employees’ Retirement System to the State of Nevada (PERS) which included the net pension liability deferred outflows of resources, deferred inflows of resources, and pension expense.

Basic Financial Statement – Government-Wide Statements:

The basic financial statements include both Government-Wide and Fund Financial Statements. The reporting focus is on either Oasis Academy as a whole or major individual funds and non-major funds in the aggregate (within the Fund Financial Statements).

The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of Oasis Academy. For the most part, the effect of the interfund activity has been removed from these financial statements. Interfund activities related to services provided and used between functions are not eliminated.

9


JUNE 30th, 2015

Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

In the Government-Wide Statement of Net Position, the governmental activities column is presented on a consolidated basis and is reflected on a full accrual, economic resource basis that recognizes all long-term assets and receivables as well as long-term debt and obligations. Oasis Academy’s net position is reported in three parts – net investment in capital assets; restricted net position; and unrestricted net position. Oasis Academy first utilizes restricted resources to finance qualifying activities, then unrestricted resources, as they are needed.

Program revenues include operating grants and contributions and investment earnings to support a specific program. Program revenues must be directly associated with the function. Operating grants include operating-specific and discretionary grants. The net costs (by function) are normally covered by general revenues.

Basic Financial Statements – Fund Financial Statements:

The financial transactions of Oasis Academy are reported in individual funds in the Fund Financial Statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are intended and the means by which spending activities are controlled. Separate financial statements are provided for Governmental Funds.

The emphasis in the Fund Financial statements is on the major funds in the governmental type activity category. Other funds by category are summarized into a single column. Major individual governmental funds are reported as separate columns in the fund financial statements.

The focus of the governmental funds’ measurement in the fund statements is upon determination of the financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income.

Oasis Academy uses the following Governmental Funds:

General Fund – The General Fund, reported as a major fund, is the general operating fund of Oasis Academy and accounts for all revenue and expenditures of Oasis Academy not encompassed within other funds. All general revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures and the capital improvement costs that are not paid through other funds are paid from the General Fund.

Special Education Fund – The Special Education Fund, reported as Special Revenue Fund, accounts for transactions of Oasis Academy relating to educational services provided to children with special needs supported by state and federal sources.

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JUNE 30th, 2015

Basis of Accounting/Measurement Focus:

The measurement focus describes the types of transactions and events that are reported in a fund’s operating statement. Basis of accounting refers to the timing of revenues and how expenditures/expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

The Government-Wide Financial Statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental Fund Financial Statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, Oasis Academy considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. When revenues are due but will not be collected within sixty days after year-end, the receivable is recorded and an offsetting deferred inflow of resources account is established. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures for compensated absences and claims and judgments, are recorded only when payment is due.

Cash and Investments:

Cash and cash equivalents are highly liquid debt instruments with original maturities of three months or less. Cash balances from all funds are combined and, to the extent practicable, invested as permitted by law. The Board adopted a policy that all interest earned on these investments is to be recognized in the General Fund, except for amounts credited to various other funds in accordance with law, contract, School policy, or as the result of conditions related to grant awards.

Investments are carried at cost. Gains or losses from investments are credited or charged to investment income at the time of sale. Premiums or discounts on securities may be amortized over the life of the security.

Pursuant to Oasis Academy’s adopted Financial Policies and in compliance with NRS 355.170 and 355.175 Oasis Academy’s money may only be invested in the following types of securities:

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JUNE 30th, 2015

Time Certificates of Deposit (TCD) with not more than 10 percent of the total deposits of any single institution. A Certificate of Participation must be presented by the issuing institution to cover any outstanding TCD above the statutory level of insurance provided by FDIC/FSLIC.

Certain bankers’ acceptances, purchased from a Nevada chartered financial institution.

Repurchase Agreements collateralized by United States Government or Agency obligations.

United States Treasury Obligations.

United States Government Agency Securities.

State of Nevada Local Government Pool Investment Fund.

Capital Assets:

Oasis Academy defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation on all assets is provided on the straight line basis over estimated useful lives averaging 24 years. Deferred Outflows and Inflows of Resources: In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents the consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources until that time. Oasis Academy reflects deferred outflows of resources which are related to pensions reported in the statement of net position under the accrual basis of accounting. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Oasis Academy reflects deferred inflows of resources which are related to pensions reported in the statement of net position under the accrual basis of accounting. Accrued Liabilities:

Accrued liabilities consist principally of teacher, administrator, and other Oasis Academy employee salaries and benefits relating to the school program year ended June 30, 2015, but not yet paid.

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JUNE 30th, 2015

Expenditures:

Expenditure data is characterized by major program classifications pursuant to the provisions of the U.S. Department of Education Financial Accounting for Local and State School Systems published by the National Center for Education Statistics and adopted by the Nevada Department of Education. Below is a brief description of these program classifications:

Regular Programs are activities designed to provide elementary and secondary students with learning experiences to prepare them for activities as citizens, family members, and non-vocational workers.

Special Programs are activities designed primarily to deal with students having special needs. The special programs include services for the gifted and talented, mentally challenged, physically handicapped, emotionally disturbed, culturally different, learning disabled, bilingual, and special programs for other types of students at all levels.

Co-curricular and Extra-curricular Activities are activities that add to a student's educational experience but are not related to educational activities. These activities typically include events and activities that take place outside the traditional classroom. Some examples of such activities are student government, athletics, band, choir, clubs, and honors societies.

Support Services are charges that are not readily assignable to a specific program. Student and instructional staff support as well as the overall general, administrative, and business costs are classified as undistributed expenditures. Also included in this line item are costs of operating, maintaining, and constructing the physical facilities of the School.

Compensated Absences:

Regular full time staff of Oasis Academy are granted two annual leave days and eight sick leave days each year. Staff are allowed to accumulate sick leave days for future use; these days can be accumulated to a maximum of thirty days. Annual leave days cannot be accumulated for future use and any unused days are lost. Accumulated unused leave at separation of service, for any reason, is not paid. Therefore no liability has been accrued for unused accumulated leave at June 30, 2015.

Fund Balances:

In the fund financial statements, the classifications of fund balance represent amounts that are not subject to appropriation or are legally segregated for a specific purpose. The following classifications have been implemented by Oasis Academy:

a) Non-spendable fund balance: These items are legally or contractually required to be maintained intact and are not in a spendable form, such as inventories and pre-paids.

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JUNE 30th, 2015

b) Restricted fund balance: These amounts are constrained to being used for specific purposes by external parties, constitutional provisions or enabling legislation, such as debt service.

c) Committed fund balance: These amounts can only be used for specific purposes as set forth by the Board of Directors. The Board must take formal action, prior to the end of the reporting period, in order to establish an ending fund balance commitment for any specific purpose. Formal Board action is also required to modify or rescind an established commitment.

d) Assigned fund balance. Assignments are neither restrictions nor commitments and represent the School’s intent to use funds for a specific purpose. These assignments, however, are not legally binding and are meant to reflect intended future use of the School’s ending fund balance. The Administrator and the Comptroller have the responsibility of assigning amounts of ending fund balance.

e) Unrestricted fund balance: The residual classification for the General Fund that is available to spend.

When expenditures are incurred, and both restricted and unrestricted resources are available, the portion of the fund balance that was restricted for those purposes shall be reduced first. If no restricted resources exist, then the unrestricted fund balance shall be reduced. Furthermore, when an expenditure is incurred for purposes which amounts of committed, assigned, or unassigned are considered to have been spent, and any of these unrestricted fund balance classifications could be used, they are considered to be spent in the above order.

Net Position:

In the government-wide statements, Net Position on the Statement of Net Position includes the following:

Net investment in capital assets – Represents the School’s total investment in capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in this component of net position

Restricted – The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Generally, a liability relates to restricted assets if the asset results from the resource flow that also results in the recognition of a liability or if the liability will be liquated with the restricted assets reported.

Unrestricted - The component of net position that is the difference between the assets, deferred outflows, liabilities, and deferred inflows. It is the School’s policy to expend restricted resources first and use unrestricted resources when the restricted resources have been depleted.

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Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates based on management’s knowledge and experience. Due to their prospective nature, actual results could differ from those estimates.

NOTE 2 – Compliance with Nevada Revised Statutes and Nevada Administrative Code

Oasis Academy conformed to all significant statutory constraints on its fiscal administration during the year.

NOTE 3 – “Nevada Plan” for Financing

The “Nevada Plan” is the current means used to finance elementary and secondary education in Nevada’s public schools. The process is one in which the state provides a guaranteed amount of funding to charter schools and local school districts. The guarantee is made up of state support paid through the Distributive School Fund and sources collected locally through a local support and ad valorem tax. Charter Schools receive monthly apportionments based on a count of children enrolled within the school on the last day of the first school month of the year. Each Charter School is guaranteed a specific amount per pupil, based on the counties where its enrolled students reside, which is developed through a special formula that considers the demographic and geographic characteristics of those counties.

Special education is funded on a unit basis at a legislative approved amount per unit. A unit is an organized instructional unit which includes full-time services of certificated personnel providing a program of instruction in accordance with minimum standards prescribed by the State Board of Education.

Charter Schools are protected from significant decreases in enrollment through “hold harmless” statutory provisions which guarantees payment based on the largest student enrollment count from the current and previous year.

NOTE 4 – Cash and Investments

Oasis Academy’s cash and investments at June 30, 2015 consisted of $721,426 of unrestricted cash and $10,000 of restricted cash on deposit with First Independent Bank.

Oasis Academy has not adopted a formal investment policy that would further limit its exposure to certain risks as set forth below:

Interest Rate Risk: Interest rate risk is the risk of possible reduction in the value of a security, especially a bond, resulting from a risk in interest rates. As noted above, the School does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond those specified in the statute.

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Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation and is a function of the credit quality ratings of its investments. As noted above, Oasis Academy does not have a formal investment policy that specifies minimum acceptable credit ratings beyond what is specified in statute.

Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure, the School’s deposits may not be returned. The School’s bank deposits are covered by FDIC insurance and collateralized by the Office of the State Treasurer/Nevada Collateral Pool.

NOTE 5 – Capital Assets:

Capital assets activity for the year ended June 30th, 2015 was as follows:

Balance

July 1, 2014 Additions Deletions Balance

June 30, 2015

Governmental Activities:

Capital assets, being depreciated:

Buildings and improvements $ 54,089 $ 15,996 $ - $ 70,085 Land improvements 10,080 - - 10,080

Total Capital assets, being depreciated: 64,169 15,996 - 80,165

Less accumulated depreciation for:

Buildings and improvements 1,815 2,178 - 3,993 Land improvements - 420 - 420

Total Accumulated Depreciation 1,815 2,598 - 4,413 Governmental Activities Capital Assets, Net $ 62,354 $ 13,398 $ - $ 75,752

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Depreciation expense was charged as follows:

Support services: Building Improvement $ 2,178 Site Improvement 420

$ 2,598

NOTE 6 – Operating Lease and Service Agreement Commitments

Oasis Academy entered into a lease agreement with Old Fallon, LLC on February 5th, 2014 for a 28,000 square foot facility located at 920 W. Williams Ave., Suite 100 Fallon, NV. The term of the lease is from August 1st, 2014 to June 30th, 2026, with options to renew for two additional periods of up to six years each. This lease supersedes a prior lease agreement between Oasis Academy and Old Fallon, LLC dated April 1st, 2011 for a smaller 12,000 square foot portion of the same facility. Oasis Academy and Old Fallon, LLC have executed the following amendment(s) to the original lease:

First Amendment – Dated April 21st, 2015 – increased the leased space by an additional 12,000 square feet with and effective date of August 1st, 2015.

Oasis Academy entered into a service agreement with Stanley Convergent Security Solutions, Inc. to provide alarm monitoring services for the School on February 20th, 2013. The term of the agreement is from May 13th, 2013 to April 30th, 2018 with unlimited renewal options. The current monthly service fee is $31.46 and future amounts can be increased annually on June 1st by a maximum of 9% at the discretion of Stanley Convergent Security Solutions, Inc.

On May 20th, 2015 Oasis Academy entered into a website access license agreement with IXL Learning for access to IXL Learning’s web based education services for a total cost of $11,100. The term of the agreement is from June 1st, 2015 to May 31st, 2018 and required a 50% deposit of $5,550 upon acceptance with two installment payments of $2,775 due each subsequent year prior to June 1st.

Oasis Academy entered into a service agreement with AmeriPride Uniform Services to provide doormat and other janitorial supply services. The agreement requires a minimum monthly service charge of $40 and has a term from December 16th, 2014 to November 13th, 2017.

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Future operating lease and service agreement payments for the years ending June 30th are as follows:

YearOld Fallon,

LLC. IXL Learning AmeriPride Stanley Total2016 388,440$ 2,775$ 480$ 380$ 392,075$ 2017 412,800 2,775 480 415 416,470 2018 427,200 - 200 374 427,774 2019 441,600 - - - 441,600 2020 456,000 - - 456,000

Total 2,126,040$ 5,550$ 1,160$ 1,169$ 2,133,919$

Total expenditures under these agreements for the year ended June 30, 2015:

Old Fallon LLC 252,183$ IXL Learning 5,550 AmeriPride 1,238 Stanely 339 Total 259,310$

NOTE 7 – Debt

During the year ended June 30th, 2015 Oasis Academy received and repaid loan funds from the School’s sponsor, The State Public Charter School Authority (SPCSA), pursuant to NRS 386.445. Oasis Academy was authorized to draw upon total loan proceeds of $139,700 via an application process with the SPCSA subject to an interest rate 3.25%. One loan draw application was submitted by the School for a total of $96,640 and the proceeds were used to purchase instruction and administrative supplies to support the School’s expansion. The total principal of $96,640 and interest of $1,137 were repaid to the SPCSA prior to June 30th, 2015.

NOTE 8 – Transactions with Affiliates

During the year ended June 30, 2015, the School engaged in transactions with The Friends of Oasis Academy (FOA), a tax-exempt corporation dedicated to support youth in Churchill County. The School has no common board members with FOA’s Board, whose board members are parents / guardians of students enrolled in Oasis Academy; however, at year end two FOA Board Members were employees of Oasis Academy.

The School had the following transactions with The Friends of Oasis Academy during the year end June 30, 2015.

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Personal property lease for use of equipment by the School for $1 per year.

Contribution of $2,500 in support of the School’s summer tutoring program

NOTE 9 – Defined Benefit Pension Plan

Plan Description: Oasis Academy contributes to the Public Employees’ Retirement System of the State of Nevada (PERS). PERS administers a cost-sharing, multiple-employer, defined benefit public employees’ retirement system which includes both Regular and Police/Fire members. PERS was established by the Nevada Legislature in 1947, effective July 1st, 1948. PERS is administered to provide a reasonable base income to qualified employees who have been employed by a public employer and whose earnings capacities have been removed or substantially impaired by age or disability. Benefits Provided: Benefits, as required by the Nevada Revised Statutes (NRS or statute), are determined by the number of years of accredited service at time of retirement and the member’s highest average compensation in any 36 consecutive months with special provisions for members entering PERS on or after January 1st, 2010. Benefit payments to which participants or their beneficiaries may be entitled under the plan include pension benefits, disability benefits, and survivor benefits. Monthly benefit allowances for members are computed as 2.5% of average compensation for each accredited year of service prior to July 1st, 2001. For service earned on and after July 1st, 2001, this multiplier is 2.67% of average compensation. For members entering PERS on or after January 1st, 2010, there is a 2.5% multiplier. PERS offers several alternatives to the unmodified service retirement allowance which, in general, allow the retired employee to accept a reduced service retirement allowance payable monthly during his or her lifetime and various optional monthly payments to a named beneficiary after his or her death. Post-retirement increases are provided by authority of NRS 286.575 - .579. Vesting: Regular members are eligible for retirement at age 65 with five years of service, at age 60 with 10 years of service, or at any age with thirty years of service. Regular members entering PERS on or after January 1st, 2010, are eligible for retirement at age 65 with five years of service, or age 62 with 10 years of service, or any age with thirty years of service. Police/Fire members are eligible for retirement at age 65 with five years of service, at age 55 with ten years of service, at age 50 with twenty years of service, or at any age with twenty-five years of service. Police/Fire members entering PERS on or after January 1st, 2010, are eligible for retirement at 65 with five years of service, or age 60 with ten years of service, or age 50 with twenty years of service, or at any age with thirty years of service. Only service performed in a position as a

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police officer or firefighter may be counted towards eligibility for retirement as Police/Fire accredited service. The normal ceiling limitation on monthly benefits allowances is 75% of average compensation. However, a member who has an effective date of membership before July 1st, 1985, is entitled to a benefit of up to 90% of average compensation. Both Regular and Police/Fire members become fully vested as to benefits upon completion of five years of service. Contributions: The authority for establishing and amending the obligation to make contributions and member contribution rates, is set by statute. New hires, in agencies which did not elect the Employer-Pay Contribution (EPC) plan prior to July 1st, 1983, have the option of selecting one of two contribution plans. Contributions are shared equally by employer and employee. Employees can take a reduced salary and have contributions made by the employer (EPC) or can make contributions by a payroll deduction matched by the employer. PERS’ basic funding policy provides for periodic contributions at a level pattern of cost as a percentage of salary throughout an employee’s working lifetime in order to accumulate sufficient assets to pay benefits when due. PERS receives an actuarial valuation on an annual basis indicating the contribution rates required to fund PERS on an actuarial reserve basis. Contributions actually made are in accordance with the required rates established by the Nevada Legislature. These statutory rates are increased/decreased pursuant to NRS 286.421 and 286.450. The actuary funding method used is the Entry Age Normal Cost Method. It is intended to meet the funding objective and result in a relatively level long-term contributions requirement as a percentage of salary. For the fiscal year ended June 30th, 2014 and June 30th, 2015 the Statutory Employer/employee matching rate was 13.25% for Regular and 20.75% for Police/Fire. The Employer-pay contribution (EPC) rate was 25.75% for Regular and 40.50% for Police/Fire. The Academy’s contributions were $164,361 for the year ended June 30th, 2014 and $292,750 for the year ended June 30th, 2015 PERS Investment Policy: PERS’ policies which determine the investment portfolio target asset allocation are established by the PERS Board. The asset allocation is reviewed annually and is designed to meet the future risk and return needs of the System.

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The following was the PERS Board adopted policy target asset allocation as of June 30th, 2014:

Asset Class Target Allocation

Long-Term Geometric Expected Real Rate of Return

Domestic Equity 42% 5.50%International Equity 18% 5.75%Domestic Fixed Income 30% 0.25%Private Markets 10% 6.80%

As of June 30th, 2014, PERS’ long-term inflation assumption was 3.5%. Net Pension Liability: At June 30th, 2015, the Academy reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30th, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Academy’s proportion of the net pension liability was based on the Academy’s share of contributions in PERS pension plan relative to the total contributions of all participating PERS employers and members. At July 1st, 2014, the Academy’s proportion was 0.01134 percent. The net pension liability at June 30th, 2015 was $1,181,881. Pension Liability Discount Rate Sensitivity: The following presents the net pension liability of the Academy as of June 30th, 2014, calculated using the discount rate of 8.00%, as well as what the Academy’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7.00%) or 1-percentage-point higher (9.00%) than the current discount rate: 1% Decrease in

Discount Rate (7.00%)Discount Rate

(8.00%) 1% Increase in Discount Rate

(9.00%) Net Pension Liability $1,837,954 $1,181,881 $636,517

Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the PERS Comprehensive Annual Financial Report, available on the PERS website.

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Actuarial Assumptions: The Academy’s net pension liability was measured as of June 30th, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total pension liability was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Rate 3.50%Payroll Growth 5.00% including inflationInvestment Rate of Return 8.00%Productivity Pay Increase 0.75%Projected Salary Increases Regular: 4.60% to 9.75%, depending on service Police/Fire: 5.25% to 14.5%, depending on

service Rates include inflation and productivity

increases Consumer Price Index 3.50%Other Assumptions Same as those used in the June 30, 2014

funding actuarial valuation

Mortality rates for non-disabled male regular members were based on the RP-2000 Combined Healthy Mortality Table projected to 2013 with Scale AA. Mortality rates for non-disabled female regular members were based on the RP-2000 Combined Healthy Mortality Table, projected to 2013 with Scale AA, set back one year. Mortality rates for all non-disabled police/fire members were based on the RP-2000 Combined Healthy Mortality Table projected to 2013 with Scale AA, set forward one year. The mortality table used in the actuarial valuation to project mortality rates for all disabled regular members and all disabled police/fire members is the RP-2000 Disabled Retiree Mortality Table projected to 2013 with Scale AA, set forward three years.

Actuarial assumptions used in the June 30th, 2014 valuation were based on the results of the experience review completed in 2013.

The discount rate used to measure the total pension liability was 8.00% as of June 30th, 2014 and June 30th, 2013. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan’s fiduciary net position at June 30th, 2014, was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability as of June 30th, 2014 and June 30th, 2013.

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JUNE 30th, 2015

Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the year ended June 30th, 2015, the Academy recognized pension expense of $155,540. At June 30th, 2015, the Academy reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Differences between expected and actual experience $ - $ 56,560

Changes in assumptions or other inputs $ - $ -

Net difference between projected and actual earnings on pension plan investments $ - $ 248,243

Changes in the employer’s proportion and differences between the employer’s contributions and the employer’s proportionate contributions $ 4,278 $ -

Academy’s contributions subsequent to the measurement date $ 292,750 $ -

Total $ 297,028 $ 304,803

$292,750 reported as deferred outflows of resources resulting from Employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30th, 2016.

The average of the expected remaining service lives of all employees that are provided with pensions through PERS (active and inactive employees) determined at July 1st, 2013 (the beginning of the measurement period ended June 30th, 2014) is 6.7 years.

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Other estimated amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Reconciliation of Net Pension LiabilityBeginning Net Pension Liability $ 1,491,227 Pension Expense 155,540 Employer Contributions (164,361)New Net Deferred Inflows/Outflows (300,525)Recognition of Prior Deferred (Inflows)/Outflows -Ending Net Pension Liability $ 1,181,881

Additional Information: Additional information supporting the Schedule of Employer Allocations and the Schedule of Pension Amounts by Employer is located in the PERS Comprehensive Annual Financial Report (CAFR) available on the PERS website at www.nvpers.org under Quick Links – Publications.

NOTE 10 – Interfund Receivable, Payables, and Transfers

There were no Interfund receivable(s) or payable(s) balances at June 30th, 2015.

Interfund transfers are shown as other financing sources or uses as appropriate in all Governmental Funds. There was one transfer of $68,063 from the General Fund to the Special Education Fund during the year ended June 30th, 2015 to cover deficiencies in the Special Education Fund.

Year ended June 30:

2016 ($71,233)

2017 ($71,233)

2018 ($71,233)

2019 ($71,232)

2020 ($ 9,172)

Thereafter ($ 6,422)

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JUNE 30th, 2015

NOTE 11 – Risk Management

Oasis Academy, like all governmental entities, is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by commercial insurance purchased from independent third parties. There have been no claims in the past year.

NOTE 12 – Restatement and Prior Period Adjustment

As described in Note 1, Oasis Academy implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition from Contributions Made Subsequent to the Measurement Date, in the current year. Following this statement, the fiscal year 2015 financial statements have been adjusted with a prior year restatement of the beginning net position of the Governmental Activities to reflect the net pension liability of Oasis Academy at June 30, 2013 in the amount of $1,491,227, less the amount of 2014 Academy contributions of $164,361, for a net decrease of $1,326,866.

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OASIS ACADEMY CHARTER SCHOOLREQUIRED SUPPLEMENTARY INFORMATION

GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCE - BUDGET (BUDGETARY BASIS) AND ACTUAL


VARIANCEBUDGET - FISCAL YEAR FINAL

ORIGINAL FINAL ACTUAL TO ACTUAL

REVENUESLocal Sources:

Donations 700$ 4,700$ 4,722$ 22$ Earnings on investments 500 400 511 111 Other 7,800 9,175 9,025 (150)

Total Local Sources 9,000 14,275 14,258 (17)

State Sources:Distributive School Fund 2,647,545 2,640,400 2,703,812 63,412

Total State Sources 2,647,545 2,640,400 2,703,812 63,412

Federal Sources:Grants 32,050 113,638 97,152 (16,486)

Total Federal Sources 32,050 113,638 97,152 (16,486)

Total Revenues 2,688,595 2,768,313 2,815,222 46,909

EXPENDITURESRegular Programs:

Instruction:Salaries 926,271 945,407 928,076 17,331 Benefits 345,435 322,500 308,778 13,722 Purchased Services 34,362 87,941 66,970 20,971 Supplies 88,650 118,735 104,783 13,952 Property - - - - Other - - - -

Total Regular Programs 1,394,718 1,474,583 1,408,607 65,976

Special Programs:Instruction:

Salaries 69,500 84,300 83,100 1,200 Benefits 29,284 29,145 28,807 338 Purchased Services 12,000 23,930 19,464 4,466 Supplies 1,000 1,239 764 475 Property - - - - Other - - - -

Total Special Programs 111,784 138,614 132,135 6,479

26 See notes to required supplementary information.






Co-curricular & Extra-CurricularInstruction:

Salaries - 900 900 - Benefits - 69 69 - Purchased Services 3,720 3,200 1,664 1,536 Supplies 4,980 7,800 6,654 1,146 Property - - - - Other 420 920 886 34

Total Co-curricular & Extra-Curricular 9,120 12,889 10,173 2,716

Undistributed Expenditures:Support Services - Students:

Salaries 2,000 2,000 2,000 - Benefits 164 164 164 - Purchased Services - - - - Supplies 600 341 41 300 Property - - - - Other - - - -

2,764 2,505 2,205 300

Support Services - Instruction:Salaries 35,000 25,480 25,480 - Benefits 8,408 5,949 5,944 5 Purchased Services 7,380 5,236 5,236 - Supplies 6,500 7,644 7,644 - Property - - - - Other - - - -

57,288 44,309 44,304 5

Support Services - General Administration:Salaries - - - - Benefits - - - - Purchased Services 3,000 3,000 1,676 1,324 Supplies - - - - Property - - - - Other - - - -

3,000 3,000 1,676 1,324







Support Services - School Administration:Salaries 209,000 211,000 208,197 2,803 Benefits 79,021 76,068 74,758 1,310 Purchased Services 36,750 35,891 30,952 4,939 Supplies 20,500 32,240 30,321 1,919 Property - - - - Other - - - -

345,271 355,199 344,228 10,971

Central Services:Salaries 50,000 35,000 35,000 - Benefits 17,840 9,735 9,714 21 Purchased Services 75,890 95,517 82,574 12,943 Supplies 1,650 113 112 1 Property - - - - Other - - - -

145,380 140,365 127,400 12,965

O & M Plant Service:Salaries 7,000 5,500 4,910 590 Benefits 572 476 399 77 Purchased Services 320,154 298,602 297,237 1,365 Supplies 62,360 32,191 26,187 6,004 Property - - - - Other - - - -

390,086 336,769 328,733 8,036

Building ImprovementSalaries - - - - Benefits - - - - Purchased Services - - - - Supplies - - - - Property - 16,000 15,996 4 Other - - - -

- 16,000 15,996 4

Total Undistributed Expenditures 943,789 898,147 864,542 33,605

Total Expenditures 2,459,411 2,524,233 2,415,457 108,776

Excess/(Deficiency) of Revenues Over Expenditures 229,184 244,080 399,765 155,685







OTHER FINANCING SOURCES (USES)Contingency (37,690) - - - Loan Proceeds 1,110 96,640 96,640 - Debt Service (143,018) (97,777) (97,777) -

Total Other Financing Sources (Uses) (179,598) (1,137) (1,137) -

Net Changes in Fund Balance 49,586 242,943 398,628 155,685

FUND BALANCE, July 1 148,380 166,940 166,940 -

FUND BALANCE, June 30 197,966$ 409,883$ 565,568$ 155,685$



RECONCILIATION OF THE GENERAL FUND (GAAP BASIS) AND SPECIAL EDUCATION FUND (GAAP BASIS) TO THE GENERAL FUND (BUDGETARY BASIS)FOR THE YEAR ENDED JUNE 30th, 2015

GENERAL FUND (GAAP BASIS)

SPECIAL EDUCATION FUND (GAAP

BASIS) ELIMINATIONS

GENERAL FUND AS REPORTED ON STATEMENT OF

REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES

(BUDGETARY BASIS)

REVENUESLocal Sources 14,258$ -$ -$ 14,258$ State Sources 2,687,300 16,512 - 2,703,812 Federal Sources 59,514 37,638 - 97,152

Total Revenues 2,761,072 54,150 - 2,815,222 EXPENDITURES

Current:Regular 1,408,607 - - 1,408,607 Special - 132,135 - 132,135 Co-curricular & Extra-Curricular 10,173 - - 10,173 Undistributed:

Support Services - Students 2,205 - - 2,205 Support Services - Instruction 44,304 - - 44,304 Support Services - General Administration 1,676 - - 1,676 Support Services - School Administration 344,228 - - 344,228 Central Services 127,400 - - 127,400 O & M Plant Service 328,733 - - 328,733 Site Improvement - - - - Building Improvement 15,996 - - 15,996

Total Expenditures 2,283,322 132,135 - 2,415,457

Excess (Deficiency) of Revenues Over ( Under) Expenditures 477,750 (77,985) - 399,765

OTHER FINANCING SOURCES (USES)Transfers In - 68,063 (68,063) - Transfers Out (68,063) - 68,063 - Loan Proceeds 96,640 - - 96,640 Debt Service - Principle (96,640) - - (96,640) Debt Service - Interest (1,137) - - (1,137)

Total Other Financing Sources (Uses) (69,200) 68,063 - (1,137)

Net Changes in Fund Balance 408,550 (9,922) - 398,628

FUND BALANCE, BEGINNING OF YEAR 147,018 19,922 - 166,940

FUND BALANCE, END OF PERIOD 555,568$ 10,000$ -$ 565,568$



SCHEDULE OF ACADEMY'S SHARE OF NET PENSION LIABILITYLAST TEN FISCAL YEARS*

2014

Academy's portion of net pension liability 0.01134%

Academy's proportionate share of the net pension liability 1,181,881$

Academy's covered-employee payroll 664,002$

Academy's proportional share of the net pension liability as a percentage of its covered-employee payroll 177.99%

Plan fiduciary net position as a percentage of the total pension liability 76.30%

* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the Academy will present information for those years for which information is available.


OASIS ACADEMY CHARTER SCHOOLREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF ACADEMY'S CONTRIBUTIONS

PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF NEVADA (PERS)LAST TEN FISCAL YEARS*

2015

Statutorily required contribution 292,750$

Contributions in relation to the statutorily required 292,750$

Contribution (deficiency) excess -$

Employer's covered-employee payroll 1,137,129$

Contributions as a percentage of covered-employee payroll 25.74%

* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the Academy will present information for those years for which information is available.


OASIS ACADEMY CHARTER SCHOOL NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30th, 2015

The accompanying Reconciliation of the General Fund (GAAP Basis) and Special Education Fund (GAAP Basis) to the General Fund (Budgetary Basis) presents balances combined for budgeting purposes. Budget to actual comparisons are presented using the budget as adopted by the Oasis Academy Charter School Board of Directors, and approved by the State of Nevada Department of Education. However, Nevada Revised Statute 387.047 specifies that a Special Education Fund must be separately maintained to account for the revenues and costs to provide instruction of pupils with disabilities so the Special Education Fund is presented for external reporting purposes as an Other Governmental Fund.

Budgets and Budgetary Accounting:

Oasis Academy follows these procedures to establish the budgetary data reflected in these financial statements:

1. Prior to April 15, at a public meeting, the Administrator submits to the Board of Directors a tentative budget for the fiscal year commencing the following July 1. The tentative budget includes proposed expenditures and the means of financing them.

2. On or before June 8, the budget is legally adopted by a majority vote of the Board of Directors at a public meeting.

3. On or before January 1, at a public meeting, the Board of Directors adopts an amended final budget reflecting any adjustments necessary as a result of the complete count of students.

4. The Board of Directors may augment the budget at any time by a majority vote of the Board providing the Board publishes notice of intention to act at least three days before the date set for adoption of the revised budget.

5. The legal level of budgetary control is at the program level for the General and Special Education Funds.

6. The Administrator and/or the Board of Directors may transfer appropriations within funds if amounts do not exceed the original budget. Augmentations in excess of the original budgetary amounts may be made only with prior approval of the Board of Directors, following a scheduled and noticed public meeting.

7. The Board of Directors may transfer appropriations between funds if amounts do not exceed the original budget. Augmentations in excess of the original budgetary amounts may be made only following a scheduled and noticed public hearing.

8. Formal budgetary integration in the financial records of all funds is employed to enhance management control during the year.

9. All budgets are adopted based on a format provided by the Nevada Department of Education.

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OASIS ACADEMY CHARTER SCHOOL NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30th, 2015

All budgets presented in the accompanying financial statements reflect the original budget and final budget (which has been adjusted for legally authorized revisions of the annual budget during the year). Appropriations, except unexpended grant appropriations, lapse at the end of each fiscal year.

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www.eidebai l ly.com301 W. Tolas Pl. | Fallon, NV 89406-5855 | T 775.423.6505 | F 775.423.4799 | EOE

Independent Auditor’s 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 Directors Oasis Academy Charter School Fallon, Nevada We have audited 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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Oasis Academy Charter School, Fallon, Nevada, (the School), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the School’s basic financial statements and have issued our report thereon dated November 20, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the school’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School’s internal control. Accordingly, we do not express an opinion on the effectiveness of the School’s 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 entity’s 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 over financial reporting 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the School’s 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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Fallon, Nevada November 20, 2015

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106-16 independent auditor’s report, oasis academy charter

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