glencoe education foundation inc. -...

GLENCOE EDUCATION FOUNDATION, INC.

Franklin, Louisiana

Financial Report

Years Ended June 30, 2013 and 2012

TABLE OF CONTENTS

Page

INDEPENDENT AUDITOR'S REPORT 1 - 2

FINANCIAL STATEMENTS

Statements of Financial Position 3 - 4 Statements of Activities 5 Statements of Cash Flows 6 - 7 Notes to the Financial Statements 8-20

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Funding Progress - Other Postemployment Benefits 22

SUPPLEMENTARY INFORMATION

Schedule of the Goveming Board (Unaudited) 24 Schedule of Insurance in Force (Unaudited) 25 - 26

INTERNAL CONTROL, COMPLIANCE, AND OTHER MATTERS

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 28 - 29

Summary Schedule of Prior Year Findings 30 Schedule ofFindings and Responses 31 - 32 Management's Corrective Action Plan for Current Year Findings 33 Independent Accountant's Report on Applying Agreed-upon Procedures 34 - 36 Schedules Required by Louisiana Law (R.S. 24:514 - Performance and

Statistical Data Schedule 1 - General Fund Instructional and Support Expenditures

and Certain Local Revenue Sources 37 Schedule 2 - Education Levels of Public School Staff 38 Schedule 3 - Number and Type of Public Schools 39 Schedule 4 - Experience of Public Principals, Assistant Principals,

and Full Time Classroom Teachers 40 Schedule 5 - Public School Staff Data 41 Schedule 6 - Class Size Characteristics 42 Schedule 7 - Louisiana Educational Assessment Program (LEAP) 43 - 45 Schedule 8 - Graduation Exit Exam 46 - 47 Schedule 9 - iLEAP 48-53

Darnall, Sikes, Gardes Frederick. (A Corporation of Certified Public Aaxiuntants)

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors of Glencoe Education Foundation, Inc. Franklin, Louisiana

Eugene H. Daruall, CPA, Deceased 2009

E. Lany Sikes, CPATTS, CVA, CFPg Damiy P. Frederick, CPA

Clayton E. Damall, CPA, CVA Eugene H. Damall, 01, CPA

Stephanie M HigginboHiam CPA John P. Armalo, CPA/PFS

J. Stephen Gardes, CPA, CVA Jennifer S. Ziegler, CPA/PFS, CFP®

Chris A. Miller, CPA, CVA Stevai G. Moosa, CPA

M. Rebecca Gardes, CPA Joan B. Moody, CPA

Lauren V. Hebert, CPA/PFS Baiteu-a Ann Watts, CPA/CFE

Erich G. Loewer, III, CPA, M.S. Tax Stephen R_ Dischler, MBA, CPA

Pamela Mayeux Bomn, CPA, CVA Craig C. Babineaux, CPA/PFS, CFP®

Jeremy C. Meaux, CPA Chad M. Bailey, CPA

Biathleen T. Damall, CPA Kevin S. Youi^, CPA

Adam J Curry, CPA, CFP® Christy S. Dew, CPA, MPA

Blaine M. Crochet, CPA, M.S. Rachel W. Ashford, CPA

Veronica L. LeBleu, CPA, MBA Kyle P. Sattzman, CPA

Christine Guidry Berwick CPA, MBA Brandon L. Porter, CPA Christine H. Ford, CPA Ban-y J Dufrene, CPA

Tanya S. Nowhn, Ph.D., CPA Bi-andon R Dunihy, CPA

SethC.Noiri5,CPA W. Kyle George, CPA, MBA

Scott D. Hayes, CPA, MBA Ryan Earles, CPA

Jenifer Zaunbrecher, CPA Robert C. Damall, CPA, M.S.

Elizabeth H. Olinde, CPA

We have audited the accompanying financial statements of Glencoe Education Foundation, Inc. (a nonprofit organization), which comprise the statements of fmancial position as of June 30, 2013 and 2012, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

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 intemal control relevant to the preparation and fair presentation of financial statements that are tree 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 audits. We conducted our audits 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 plim and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves perfonning 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 ofthe risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation ofthe 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 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.

2000 Kaliste Salooin Suite 300

Lafayette, LA 70508 Phone: 337.232.3312 Fax: 337.237.3614

1231 E. Laurel Avenue Eunice, LA 70535

Phone: 337.457.4146 Fax: 337.457.5060

1201 Brashear Avenue Suite 301

Morgan City, LA 70380 Phone: 985.384.6264 Fax: 985.384.8140

1

203 S. Jefferson Street Abbeville, LA 70510 Phone: 337.893.5470 Fax: 337.893.5470

A Member of: American Institute of

Certified Public Accountants Society of Louisiana

Certified Public Accountants www.dsfcpas.com

http://www.dsfcpas.com

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glencoe Education Foundation, Inc. as of June 30, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Otlier Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the schedule of funding progress related to other postemployment benefits on page 22 be presented to supplement the basic financial statements. Such infonnation, although not a part of the basic financial statements, is required by the Govemmental 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 required supplementary infonnation 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 oiu inquiries, the basic financial statements, and other knowledge we obtained during our audit ofthe basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Infonnation

Our audit was conducted for the purpose of forming an opinion on Glencoe Education Foundation, Inc.'s basic financial statements. The schedule of the goveming board and the schedule of insurance are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The schedule of the goveming board and the schedule of insurance have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2013, on our consideration of Glencoe Education Foundation, Inc.'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 ofthat testing, and not to provide an opinion on intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering Glencoe Education Foundation, Inc.'s intemal control over tinancial reporting and compliance.

(A Corporation of Certified Public Accountants)

Morgan City, Louisiana December 9, 2013

GLENCOE EDUCATION FOUNDATION, JNC. Franklin, Louisiana

Statements of Financial Position June 30, 2013 and 2012 (as restated)

2013 2012 ASSETS

CURRENT ASSETS Cash Certificates of deposit Due from other governmental units Other receivables Prepaid items Inventory, at cost

Total cunent assets

PROPERTY AND EQUIPMENT, NET

OTHER ASSETS Assets restricted to payment of long-tenn debt:

Cash Certificates of deposit

Total other assets

$ 1,721,732

146,713

14,408

-

28,384

44 1,911,281

4,064,731

$ 1,392,688

145,300

36,328

4,681

30,356

925 1,610,278

4,117,698

9,822 77,346

9,803 77.365

87.168 87,168

TOTAL ASSETS $ 6,063,180 $ 5.815,144


Statements of Financial Position June 30, 2013 and 2012 (as restated)

LIABILITIES AND NET ASSETS 2013 2012

$ 70,443

380,850

213,734

150,863

47,397

30.371

$ 8,058

380,850

247,797

165,166

57,327

29.037

CURRENT LIABILITIES Accounts payable Contract payable Accrued salaries payable Other accrued liabilities Accrued compensated absences payable Current portion of long-term debt

Total cunent liabilities 893,658 888,235

LONG-TERM LIABILITIES Long-term debt, net ofcurrent portion Other postemployment benefit obligations

Total long-term liabilities

Total liabilities

NET ASSETS Unrestricted

TOTAL LL\BILITIES AND NET ASSETS

1,245,590

788.711

2.034,301

2,927,959

3.135.221

$ 6,063,180

1,275,958

646.828

1,922,786

2,811,021

3.004.123

$ 5,815,144

The accompanying notes are an integral part of this statement.

4

Unrestricted

$ 3,333,128

6,007 56,704

185,147 131,273

13,966 1,546

1,635 39,227 4,225 8,301

34,767 1.200

Unrestricted

$ 3,373,276

23,451 60,631

168,188 147,896 14,684

1,468

4,258 40,931

1,720 6,742

37,064 -

GLENCOE EDUCATION FOUNDATION, INC. Franklin, Louisiana

Statements of Activities Years Ended June 30, 2013 and 2012 (as restated)

2013 2012 Un

REVENUES, GAINS, AND OTHER SUPPORT State pubhc school funding Federal grants:

Rural Education Achievement Program IDEA - Part B National School Lunch Program Title I Title n Other

State grants: Other

Food services Contributions Interest income Miscellaneous Gain on disposal of assets

Total revenues, gains, and other support 3,817,126 3,880,309 EXPENSES

Instruction: Regular programs Special education

Support services: Pupil support Instructional staff General administration School administration Business services Plant services Student transportation services

Non-instructional: Food services Community service

Facilities acquisition and construction Debt service:

Interest and bank charges Depreciation

Total expenses Change in net assets Net assets at beginning of year, as restated Net assets at end of year, as restated


5

1,889,430 254,336

18,771 28,134 14,792

328,567 113,491 245,612 159,919

353,130 303

46,123

58,134 175.286

3.686,028 131,098

3,004.123 $ 3,135.221

1,957,198 234,370

21,513 26,891 32,761

331,080 93,829

272,619 173,234

389,392 630

17,077

59,717 170,334

3.780.645 99,664

2,904,459 $ 3,004,123


Statements of Cash Flows Years Ended June 30, 2013 and 2012 (as restated)

2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets

to net cash provided by operating activities: Depreciation Gain on disposal of assets (Increase) decrease in-

Certificates of deposit Due from other governmental units Other receivables Inventory Prepaid expenses

Increase (decrease) in -Accounts payable Accrued salaries payable Other accrued liabilities Accrued compensated absences Other postemployment benefit obligations

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Proceeds from the sale of property and equipment

Net cash used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt

Net cash used by financing activities Net increase in cash Cash at beginning of year Cash at end of year

$ 131,098 $ 99,664

175,286

(1,200)

(1,394)

21,920

4,681

881 1,972

62,385

(34,063)

(14,302)

(9,930)

141.883

479,217

(122,320)

1.200

170,334

-

(1,808)

250,555

(4,681)

(646)

(1,859)

(3,687)

22,067

22,033

20,519

163.957

736,448

(61,086) -

(121,120)

(29.034) (29,034) 329,063

1.402.491 1.731.554

(61,086)

(276.898) (276,898) 398,464

1.004.027 1.402.491

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for:

Interest 58.134 $ 59.717

(Continued)


Statements of Cash Flows (Continued) Years Ended June 30, 2013 and 2012 (as restated)

Reconciliation of cash per the statements of cash flows to the statements of financial position:

2013 2012

Cash at beginning of year: Cash Restricted cash

Total cash at beginning of year

Cash at end of year; Cash Restricted cash

Total cash at end of year

Net increase in cash

1,392,688 9,803

1,402,491

1,721,732 9.822

1,731,554

329,063

994,247 9,780

1,004,027

1,392,688 9.803

1,402,491

398,464


7


Notes to the Financial Statements

INTRODUCTION

Glencoe Education Foundation, Inc. (Foundation) was founded in 1999 as a nonprofit organization incorporated under the laws of the State of Louisiana. The Foundation is dedicated to providing for and maintaining an optimum learning environment in which all enrolled children are afforded the opportunity to achieve, attain goals and excel as students and as individual citizens of the world. The focus of instruction is child-centered with curricula designed to meet the educational, social, physical, and emotional needs of each learner as a whole person. The Foundation operates Glencoe Charter School which is an approved Type 2 charter school under Louisiana Revised Statute 17:3991. The school's operations are located in Franklin, Louisiana. During its first year of operations (fiscal year ended June 30, 2000), the school had grades kindergarten through fifth. During the second year of operations, sixth grade was added. During the third year of operations, seventh grade was added, and during the fourth year of operations, eighth grade was added. Open student enrollment began in August 1999. The Foundation is governed by a board of directors and managed by a director. During the fiscal years ended June 30, 2013 and 2012, 97.70% and 97.77% of total revenues, respectively, were derived from federal and state sources.

The accompanying financial statements of the Foundation have been prepared on the accrual basis of accounting.

The Foundation is an exempt organization for federal income tax purposes under Section 501(c)(3) ofthe Intemal Revenue Code. Additionally, the Internal Revenue Service has determined that the Foundation does not qualify as a private foundation within the meaning of Section 509(a) of the Intemal Revenue Code. Therefore, no provision for income taxes has been made in the accompanying financial statements.

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Support and expenses

All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets in the statements of activities as net assets released from restrictions.

Expenses are recorded when incurred in accordance with the accrual basis of accounting.

Allowance for doubtful accounts

The Foundation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required.

10 2 7 -3

-25

10



NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property and equipment

All capital assets are capitalized that have a cost or estimated cost of S5,000 or more. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. Depreciation is computed using the straight-line method at rates based on the following estimated usefiil lives:

Years Buildings and improvements Computer software Furniture and equipment Transportation equipment

Expenses for additions, major renewals, and betterments are capitalized. Expenses for maintenance and repairs are charged to expense as incuned.

Compensated absences

All twelve-month employees eam non-cumulative vacation leave each year based on years of experience. After one year, 10 days are earned; after four years, 11 days are eamed; after five years, 13 days are earned; after ten years, 15 days ^ e earned; after fifteen years, 17 days are eamed; and after twenty years, 19 days are eamed. Upon resignation or retirement, all unused vacation leave is forfeited.

Nine-month employees eam 10 days of sick leave each year. Ten-month employees eam 11 days of sick leave each year. Eleven-month employees eam 12 days of sick leave each year. Twelve-month employees eam sick leave based on the number of years of full-time employment with the Foundation. After one year, 12 days are eamed; after four years, 15 days are eamed; and after ten years, 18 days are eamed. Sick leave may be accumulated. No sick leave is paid upon resignation. Upon retirement or death, unused accumulated sick leave of up to 25 days is paid to the employee or the employee's estate at the employee's cunent rate of pay.

Under the Teachers' Retirement System of Louisiana and the Louisiana School Employees' Retirement System, all unpaid sick leave, which excludes the 25 days paid, is used in the retirement benefit computation as e^ned service.

In accordance with the provisions of FASB ASC 710, Compensation - General, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits.




Donated services

The Foundation received donated services from unpaid volunteers who assist in program services during the year; however, these donated services are not reflected in the statements of activities because the criteria for recognition under FASB ASC 958-605-25 have not been satisfied.

Cash and cash equivalents

For the purposes of the statement of cash flows, the Foundation considers all highly-liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Foundation did not have any cash equivalents at June 30, 2013 and 2012.

Inventory

Inventory consists of commodities granted by the United States Department of Agriculture through the Louisiana Department of Agriculture. The commodities are recorded as revenues when received; however, all inventories are recorded as expenses when consumed. Values are assigned based on infonnation provided by the United States Department of Agricultiu:e.

Advertising costs

Advertising costs are expensed as incurred. Total advertising expense was $2,199 and $1,571 for the fiscal years ended June 30, 2013 and 2012, respectively.

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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair value of financial instruments

The Foundation defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. Financial instruments included in the Foundation's financial statements include cash and cash equivalents, receivables, and other assets. Unless otherwise disclosed in the notes to the financial statements, the carrying value of financial instruments is considered to approximate fair value due to the short maturity and characteristics of those instruments.

10




Subsequent events

Subsequent events were evaluated through December 9, 2013 which is the date the financial statements were available to be issued.

NOTE 2 PROPERTY AND EQUIPMENT

Property and equipment consisted ofthe following at June 30, 2013 and 2012:

2013 2012 Assets not being depreciated:

Land Construction in progress

Total assets not being depreciated Assets being depreciated:

Building and improvements Computer software Fumiture and equipment Transportation equipment

Total assets being depreciated Less accumulated depreciation Assets being depreciated, net Total assets, net

Total depreciation expense for the fiscal years ended Jime 30, 2013 and 2012 was $175,286 and $170,334, respectively.

NOTE 3 DUE FROM OTHER GOVERNMENTAL UNITS

Due from other govemmental units consisted ofthe following at June 30, 2013 and 2012:

2013 2012

$ 27,845 76.828

104,673

4,502,065 2,501

298,288 141.910

4,944,764 (984,706)

3,960,058 $4,064,731

$ 27,845 -

27,845

4,462,045 3,690

292,817 182.990

4,941,542 (851.689)

4.089,853 $4,117,698

LouisianaDepartment of Education $ 399 $ 2,024

U.S. Department of Education: Passed through Louisiana Department

of Education 14.009 34.304 $ 14.408 $ 36,328

11



NOTE 4 NATURAL CLASSIFICATION OF EXPENSES

Expenses incuned were for the following for the fiscal years ended June 30, 2013 and 2012;

Instruction Support Services

2013

Salary

Employee benefits

Purchased professional

services

Insurance

Repairs and maintenance

Energy

Telephone/postage

Disposal services

Rental of land/equipment

Travel

Materials and supplies

Food

Miscellaneous

Interest

2012

Salary

Employee benefits

Purchased professional

services

Insurance

Repairs and maintenance

Energy

Telephone/postage

Disposal services

Rental of land/equipment

Travel

Materials and supplies

Food

Miscellaneous

Interest

Regular Piograms

$ 1,299,510

512,776

3,900

-

Special Education

$ 147.915

68,228

36,160

-

Pupil Support

$ 17,322

791

--

Instructional Staff

$ 19,767

4,825

550

-

General Administration

$ -

13,373

1,035

1=

$

4,279

57,204

11,761

1.889.430

1,325,331

549,302

900

5,593

L=

$

458

807

768

254.336

142,113

70,508

19.168

610

1=

$

-513

145

18.771

18,898

1,328

--

$

$

-2,992

-

28.134

18,147

4,391

2,007

78

$

$

262

-

122

14.792

.

-

30,950

1,035

$_

7,744

54,889

13,439

1.957.198 $_

-1,423

548

234.370 $_

-1,006

281

21.513 $

-2,128

140

26.891

776

32.761

12



School Administration

$ 186,651

81,625

18,768

1,454

2,395

-1,129

-11,038

1,286

14,650

-9,571

. $ 328.567

S 190.378

74,559

15,940

2,259

1,260

-2,907

-10,941

3,435

14,693

-14,708

. $ 331.080

]

$

1

S

$

Support

Business Services

71,984

10,337

7,380

19,361

--

1,128

--

177

968

-2,098

58

113.491

64.096

14,110

9,285

274

--

1,176

--

1,336

1,323

-2,156

73

93.829

Services

S

L

$

$

Plant Services

52,864

25,913

1,740

44,085

22,430

45,888

-5,015

24,000

-15,849

-7,828

_ 245.612

57,167

24,293

2,711

43,202

38,850

46,238

-9,277

24,000

-25,580

-1,301

. 272.619

Student Transportation

Services

S

1=

S

$

88,406

-

-14,232

20,418

28,893

---

7,830

--

140

. 159.919

87,083

-

-20,416

30,228

32,232

---

2,519

--

756

. 173.234

$

L

$

$

Non-instructional

Food Services

117,461

84,390

--

6,324

----

410

17,406

123,337

3,802

_ 353.130

121,193

73,165

-4,579

5,438

----

361

25,204

156,141

3,311

. 389.392

Community Service

Operations

S

$

S

$

-

--------

258

-45

_ 303

-

-

-------

555

-75

. 630

Facilities Acquisition and

Construction

$ -

----------

46,123

. $ 46.123

$ -

17,077

----------.

$ 17.077

Debt Seivice

$ -

-----------

58.134

$ 58.134

$ -

-

----------

59,717

$ 59.717

13



NOTE 5 LONG-TERM DEBT

Long-tenn debt consisted ofthe following at June 30, 2013 and 2012:

Note payable in the original amount of $1,600,000, payable in 466 monthly installments of $7,264 beginning on May 23, 2010 and one final undetermined installment, bearing interest at 4.500%, collateralized by real estate and equipment

2013 2012

$ 1,275,961 $ 1,304,995

Less current portion

Long-tenn portion

Maturities of long-term debt are as follows:

2014 2015 2016 2017 2018 Thereafter

Total long-term debt

30.371 29.037

NOTE 6 PENSION PLANS

$ 1,245,590 $ 1,275,958

30,371 31,766 33,226 34,752 36,349

1.109,497

$ 1.275.961

Eligible employees of the Foundation participate in one of two multiple-employer public employee retirement systems (PERS), which are controlled and administered by a separate board of trustees. These retirement systems provide retirement, disability, and death benefits to plan members and their beneficiaries. Pertinent information relative to each plan follows:

Louisiana Teachers' Retirement System of Louisiana—Regular

For the fiscal year ended June 30, 2013, plan members were required to contribute 8.0 percent of their annual covered salary to the system while the Foundation was required to contribute the statutory rate of 24.5 percent of total annual covered payroll. The Foundation was also required to contribute the statutory rate of 23.7 and 20.2 percent of total annual covered payroll for the fiscal years ended June 30, 2012 and 2011, respectively. The Foundation's contributions to the system for the fiscal years ended June 30, 2013, 2012, and

14



NOTE 6 PENSION PLANS (CONTESIUED)

2011 were $432,156, $413,312, and $328,340 respectively, equal to the required contribution for each year.

A publicly available financial report that includes financial statements ^id required supplemental financial information may be obtained by writing to the Louisiana Teachers' Retirement System, P.O. Box 94123, Baton Rouge, Louisiana 70804-9123, or by calling (225) 925-6446.

Louisiana School Employees' Retirement System

For the fiscal year ended June 30, 2013, plan members were required to contribute 7.5 percent, or 8.0 percent for new members after July 1, 2010, of their annual covered salary to the system while the Foundation was required to contribute the statutory rate of 30.8 percent of total annual covered payroll. The Foundation was also required to contribute the statutory rates of 28.6 and 24.3 percent of total annual covered payroll for the fiscal years ended June 30, 2012 and 2011, respectively. The Foundation's contributions to the system for the fiscal years ended June 30, 2013, 2012, and 2011, were $17,459, $15,136, and $11,491, respectively, equal to the required contribution for each year.

A publicly available financial report that includes financial statements and required supplemental financial infonnation may be obtained by writing to the Louisiana School Employees' Retirement System, P.O. Box 44516, Baton Rouge, Louisiana 70804-4516 or by caUing (225) 925-6484.

NOTE 7 LEASE COMMITMENT

The Foundation entered into a non-cancelable operating lease for immovable property with Glencoe-Vacherie Plantation, LLC, which is a related party as a result of one of the Foundation's board members being a managing member in the entity. The lease calls for four quarterly payments of $6,000 per year. The original lease expired on September 30, 2004. The lease also contains an option to renew for four additional five year periods, with the first five year period having begun on October 1, 2004. The first option to renew was executed. The first lease option expired on September 30, 2009. The second option to renew was executed.

The lease expense for the fiscal years ended June 30, 2013 and 2012 totaled $24,000 and $24,000, respectively.

The following is a schedule of future minimum rental pajTnents required under the above non-cancelable operating lease:

15



NOTE 7 LEASE COMMITMENT (CONTINUED)

Year ended June 30,

2014 2015

$ 24,000 6,000

The Foundation also leases immovable and movable property under cancelable operating leases.

NOTE 8 CASH AND CERTIFICATES OF DEPOSIT

The Foundation may invest in United States bonds, notes, or bills as well as certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2013, the Foundation had cash and interest-bearing deposits (bookbalances) totaling $1,955,613.

Custodial Credit Risk - Deposits

Custodial credit risk is the risk that in the event of a bank failure, the Foundation's deposits may not be returned to it. As of June 30, 2013, $1,720,446 ofthe Foundation's bank balance was exposed to custodial credit risk as follows:

Uninsured and collateral held by pledging bank's agent not in the Foundation's name

Uninsured and uncoUateralized

Total

$1,632,831 87,615

$1,720,446

NOTE 9 PENDING LITIGATION

The Foundation is presently a defendant in litigation involving the contractor of the K-3 building. The contractor is requesting full payment for the final invoices for services rendered; however, management is in disagreement as to the adequacy of the services performed and is defending its position vigorously that the amount requested by the contractor is not reflected in the actual work perfonned. Management has taken a conservative approach with regards to financial reporting and has accrued the full amount in question in the financial statements. This accrual is reflected in the statements of financial position as contract payable.

16



NOTE 10 OTHER POSTEMPLOYMENT BENEFITS

From an accrual accounting perspective, the cost of postemployment healthcare benefits, like the cost of pension benefits, should be associated with the periods in which the cost occurs, rather than in the future year in which it will be paid. The Foundation implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, during the year ended June 30, 2010. As a result, the Foundation recognizes the cost of postemployment healthcare aid life insurance benefits in the year in which the employee services are received, reports the accumulated liability from prior years, and provides information useful in assessing potential demands on the Foundation's future cash flows. Because the Foundation adopted the requirements of GASB Statement No. 45 prospectively, recognition ofthe liability accumulated from prior years will be phased in over 30 years, commencing with the 2010 liability.

Plan Description

The Foundation provides post-employment healthcare and life insurance benefits for substantially all employees if they reach normal retirement age while working for the Foundation. The Foundation's employees may participate in the State of Louisiana's Other Postemployment Benefit Plan (OPEB Plan), an agent multiple-employer defined benefit OPEB Plan that provides medical and life insurance to eligible active employees, retirees, and their beneficiaries. The State administers the plan through the Office of Group Benefits (OGB). Louisiana Revised Statutes 42:801-883 assigns the authority to establish and amend benefit provisions ofthe plan. The OGB does not issue a publicly available financial report of the OPEB Plan; however, it is included in the State of Louisiana Comprehensive Annual Financial Report (CAFR). A copy of the CAFR may be obtained on the Office of Statewide Reporting and Accounting Policy's website at www.doa.louisiana.gov/osrap.

Funding Policy

The plan is currently financed on a pay-as-you-go basis. The contribution requirements of plan members and the Fomidation are established and may be amended by Louisiana Revised Statutes 42:801-883. Employees do not contribute to their postemployment benefits cost until they become retirees and begin receiving those benefits. The retirees contribute to the cost of retiree healthc^e based on a service schedule. Contribution amounts vary depending on what healthcare provider is selected from the plan and if the member has Medicare coverage.

Annual Other Postemployment Benefit Cost

The Foundation's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover nonnal costs each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years.

17

http://www.doa.louisiana.gov/osrap



NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)

The following table shows the components of the Foundation's annual OPEB cost for the fiscal years ended June 30, 2013 and 2012, the amount actually contributed to tiie plan, and changes in the Foundation's net OPEB obligation:

2013 2012

Annual required contribution

Interest on net OPEB obligation

Adjustment to annual required contribution

Annual OPEB cost (expense)

Less contributions made

Increase in net OPEB obligation

Net OPEB obligation, beginning of year

Net OPEB obligation, end of year

$ 140,700

25,873

(24.690)

$ 163,100

19,315

(18,458)

141,883 163,957

141,883

646.828

163,957

482,871

$ 788,711 $ 646,828

The Foundation's annual OPEB cost, the percentage of annual OPEB cost plan, and the net OPEB obligation for the fiscal year ended June 30, 2013, fiscal years were as follows;

Fiscal Year

Ended

June 30, 2011 June 30, 2012 June 30, 2013

Annual OPEB Cost

S 214,971 163,957 141,883

Percentage of Annual OPEB

Cost Contributed

0.0% 0.0% 0.0%

contributed to the and the preceding

Net OPEB Obligation

482,871 646,828 788,711

(The remainder of this page is intentionally left blank.)

18

$ 951,000

$ 951,000

0.00% $ 1,187,000

80.12%

$

$^

$

947,100

947.100

0.00%) 1,300,100

72.85%o




Funded Status and Funding Progress

The funded status ofthe plai, as determined by an actuary, was as follows:

_ July 1,2012 July 1,2011

Actuarial accrued liability (AAL) Actuarial value of plan assets

Unfunded actuarial accrued liability (UAAL)

Funded ratio (actuarial value of plan assets / AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll

Actuarial valuations for an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occunence of events far into the future. Actuarially determined amounts are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. Although the valuation results are based on values which the Foundation's actuarial consultant believes are reasonable assumptions, the valuation results reflect a long-tenn perspective and, as such, are merely an estimate of what future costs may actually be. Deviations in any of several factors, such as future interest rates, medical cost inflation. Medicare coverage, and changes in marital status, could result in actual costs being less or greater than estimated.

The schedule of funding progress presented as required supplementary information following the notes to the financial statements presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattem of sharing of benefit costs between the employer and plan members to that point. The actutu ial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-tenn perspective of calculations.

In the July 1, 2012 and July 1, 2011 OGB actuarial valuations, the projected unit credit actuarial cost method was used. For the July 1, 2012 valuation, the actuarial assumptions utilized a 4.0% discount rate. The valuation assumed an initial annual healthcare cost trend

19




rate of 8.0% and 6.0% for pre-Medicare and Medicare eligible employees, respectively, scaling down to ultimate rates of 4.5% per year. For the July 1, 2011 valuation, the actuarial assumptions utilized a 4.0% discount rate. The valuation assumed an initial annual healthcare cost trend rate of 8.0% and 9.1% for pre-Medicare and Medicare eligible employees, respectively, scaling down to ultimate rates of 5.0% per year.

The unftinded actuarial accrued liability is being amortized over 30 years as a level percentage of payroll on an open basis. The remaining amortization period at July 1, 2012, was twenty-seven years.

NOTE 11 PRIOR-PERIOD ADJUSTMENT

During the current year, it was detennined that the net other postemployment benefit obligation at June 30, 2012 was understated by $579,693 as a result of inaccurate information used in the measurement ofthe obligation. To conect for this error, net assets at July 1, 2012 of $3,272,992, as previously reported, have been decreased by $368,533 to $2,904,459. Expenses for the year ended June 30, 2012 have been increased by $211,160 to $3,780,645.

20

REQUIRED SUPPLEMENTARY INFORMATION

21


Schedule of Funding Progress - Other Postemployment Benefits Year Ended June 30, 2013

Actuarial Valuation

Date

7/1/2010 7/1/2011 7/1/2012

Actuarial Value

of Assets

$ --

Actuarial Accrued Liability

$ 1,364,900 947,100 951,000

Unfunded Liability

$ 1,364,900 947,100 951,000

Funded Ratio

0.00% 0.00% 0.00%

Covered Payroll

$ 1,302,000 1,300,100 1,187,000

Unfunded Liability as

Percentage of Covered Payroll

104.83% 72.85% 80.12%

22

SUPPLEMENTARY INFORIVIATION

23


Schedule ofthe Governing Board (Unaudited) Year Ended June 30, 2013

Board Member Term Expiration Board Member Term Expiration

Mr. A. Phillip Prejean P.O. Box 307 Baldwin, LA 70514 President

June 30, 2015 Steve Schmidt P.O. Box 352 Baldwin, LA 70514 Parent Member

June 30, 2014

Mr. James Evans P.O. Box 325 Franklin, LA 70538 Vice-President

June 30, 2013 Roy Louviere P.O. Box 222 Baldwin, LA 70514 Member

June 30, 2015

Steven Drexler 103 Janice St. New Iberia, LA 70563 Member

June 30, 2013 Francine Piene 1500 Norman Bauer Dr. Franklin, LA 70538 Parent Member

June 30, 2013

Jane Luke P.O. Box 4 Centerville, LA 70522 Member

June 30, 2014

24


Schedule of Insurance in Force (Unaudited) Year Ended June 30, 2013

Type of Coverage Limits of Coverage Expires Company

Workers' Compensation

Student Accident

Commercial Auto & General Liab (package)

Property

§1,000,000

$1,000,000 per injury

Auto liability - $1,000,000 Auto medical - $5,000 General liability -

$1,000,000 each occurrence Damage to premises rented -

$50,000 any one premises Personal & advertising injury -

$1,000,000 any one entity General aggregate limit -

$1,000,000 Products/completed operations

aggregate limit - $1,000,000

Building (Classrooms) -$3,200,000 Building $255,000 Business Personal Property

Building (Main Building) -$255,000 Business Personal Property

Building (Classrooms) -$595,000 Building $70,000 Business Personal Property

Building (PE Building) -$125,000 Building

Building (Lab Building) -$44,000 Building $19,000 Business Personal Property

5/10/2014 LEMIC Insurance Company

9/30/2013 National Union Fire Ins. Co. of Pittsburgh, PA

8/12/2013 Houston Specialty Ins. Co.

9/5/2013 Admiral hisurance Co.

(Continued)

25


Schedule of Insurance in Force (Unaudited) (Continued) Year Ended June 30, 2013

Type of Coverage Limits of Coverage Expires Company

Wind/Hail

Flood

Fidelity Bond

Building (Main Building) -S65,000 - Contents

Building (Classrooms) -$595,000 - Building $70,000 - Contents

Building (PE Building) -$90,000 - Building

Building (Classrooms) -$3,200,000-Building $155,000-Contents

Building (Lab Building) $44,000 - Building $19,000-Contents

$500,000 - Building

$186,000 - Employee theft

9/23/2013 Louisiana Citizens Property Insurance Corporation

10/18/2013 Fidelity National Indemnity Ins. Co.

Until cancelled

Hartford Fire Insurance Co.

26

INTERNAL CONTROL, COMPLIANCE,

AND

OTHER MATTERS

27

Darnall, Sikes, Gardes Frederick™ (A Corporation of Certified Public Accountants)

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCTAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FESTANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS


Eugene H. Damall, CPA, Deceased 2009

E. Larry Sikes, CPA/PFS, CVA CPP® Danny P. Fredenck, CPA

Clayton E. DamaU, CPA, CVA Eugene H. Damall, in, CPA

Stephanie M. Higgmbotliam, CPA John P. Armato, CPA/PFS

J. Stephen Gardes, CPA CVA Jennifer S. Ziegler, CPA/PFS, CFP®

Chns A. Miller, CPA CVA Steven G. Moosa, CPA

M Rebecca Gardes, CPA Joan B. Moody, CPA

Laui-en V. Hebert, CPAPFS Barbara Ann Watts, CPA/CFE

Ei-ich G. Loewer, 01, CPA, M.S. Tax Stephen R. Disciiler, MBA CPA

Pamela Mayeux Bonin, CPA, CVA Craig C. Babineaux, CPA/PFS, CFP®

Jeremy C. Meaux, CPA Chad M. Bailey, CPA

Kathleen T. Damall, CPA Kevin S. Young, CPA

Adam J. Cmry, CPA CFP® Clmsty S. Dew. CPA, MPA

Blaine M Crochet. CPA, M.S Rachel W. Ashford, CPA

Vei-onica L. LeBleu, CPA, MBA Kyle P. Saltzman, CPA

Christine Guidry Berwick CPA, MBA Bi-andon L. Portsr, CPA Chnstine H. Ford, CPA Ban-y J. Du&eue, CPA

Tanya S. Nowlin. PILD., CPA Brandon R. Dui^hy, CPA

Seth C. Noms, CPA W. Kyle George, CPA, MBA

Scott D. Hayes, CPA, MBA Ryan Earles, CPA

Jenifer Zaunbi^echer, CPA Robert C. Damall, CPA M S

Ehzabeth H Ohnde, CPA

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 Glencoe Education Foundation, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2013, 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 December 9, 2013.

Internal Control over Financial Reporting

In planning and performing our audit of the fmancial statements, we considered Glencoe Education Foundation, Inc.'s intemal control over financial reporting (intemal 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 Glencoe Education Foundation, Inc.'s intemal control. Accordingly, we do not express an opinion on the effectiveness ofthe Foundation'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 conect, 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 ofthe entity's financial statements will not be prevented, or detected and conected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

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 intemal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in intemal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


Lafayette, LA 70508 Phone: 337.232.3312 Fax: 337.237.3614


Phone: 337.457.4146 Fax: 337.457.5060

1201 Brasheai Avenue Suite 301

Morgan City, LA 70380 Phone: 985-384.6264 Fax: 985.384.8140

28






Compliance and Other Matters

As part of obtaining reasonable assurance about whether Glencoe Education Foundation, Inc.'s financial statements are free fi^om material misstatement, we perfonned 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 one ir^tance of noncompliance that is required to be reported under Government Auditing Standards which is described in the accompanying schedule of findings and responses as item 2013-001.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization's intemal control or on compliimce. This report is an integral part of an audit perfonned in accordance widi Government Auditing Standards in considering the organization's intemal control and compliance. Accordingly, this communication is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document; therefore its distribution is not limited.



29


Summary Schedule of Prior Year Findings Year Ended June 30, 2013

2012-1 Noncompliance with Requirement for Timely Submission of Financial Report to Lending Agency

Status: This finding is unresolved. See current year finding 2013-001.

30


Schedule ofFindings and Responses Year Ended June 30, 2013

Part 1: Summary of Auditor's Results

FINANCIAL STATEMENTS

Auditor's Report - Financial Statements

An unqualified opinion has been issued on Glencoe Education Foundation, Inc.'s financial statements as of and for the years ended June 30, 2013 and 2012.

Deficiencies in Intemal Control - Financial Reporting

Our consideration of intemal control over financial reporting disclosed no instances of deficiencies in intemal control which are required to be reported under Govemment Auditing Standards.

Material Noncompliance - Financial Reporting

The results of our tests disclosed one instance of noncompliance which is required to be reported under Government Auditing Standards which is reported as item 2013-001 in Part 2.

FEDERAL AWARDS

This section is not applicable for the fiscal year ended June 30, 2013.

Part 2: Findings Relating to an Audit in Accordance with Government Auditing Standards


Criteria: A condition to the Foundation's loan from the United States Department of Agriculture requires the Foundation's financial report to be submitted to the agency within 150 days ofthe Foundation's fiscal year end date.

Condition: The financial report for the fiscal year ended June 30, 2013 was not completed for submission to the United States Department of Agriculture within the time frame specified as a condition to its loan as described in the criteria above.

Effect: The late submission of the financial report causes the Foundation to be in violation of a condition to its loan as described in the criteria above.

Recommendation: Management should make every effort to comply with a condition to its loan as described in the criteria above and submit its financial report within the specified time frame.

31


Schedule of Findings and Responses (Continued) Year Ended June 30, 2013

Part 2: Findings Relating to an Audit in Accordance with Government Auditing Standards (Continued)

Views of Responsible Officials and Planned Conective Actions: This infonnation is in the separate Management's Corrective Action Plan for Current Year Findings.

Part 3: Findings and C^estioned Costs Relating to Federal Programs

At June 30, 2013, Glencoe Education Foundation, Inc. did not meet the requirements to have a single audit in accordance with OMB Circular A-133; therefore, this section is not applicable.

32


Management's Conective Action Plan for Cunent Year Findings Year Ended June 30, 2013


Condition: The financial report for the fiscal year ended June 30, 2013 was not completed for submission to the United States Department of Agriculture within the time frame specified as a condition to its loan as described in the criteria above.

Recommendation: Management should make every effort to comply with a condition to its loan as described in the criteria above and submit its financial report within the specified time frame.

Management's Response: Management will make every effort to comply with the conditions of its loan by submitting its financial report within the specified time frame.

Name and Title of Contact Person: Anita Breaux, Chief Executive Officer

Anticipated Completion Date: Year ending June 30, 2014

33

Darnall, Sikes, Gardes Frederick. (A Corporation of Certified Public Accountants)

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES


We have performed the procedures included in the Louisiana Governmental Audit Guide and enumerated below, which were agreed to by the management of Glencoe Education Foundation, Inc. and the Legislative Auditor, State of Louisiana, solely to assist users in evaluating management's assertions about the perfonnance and statistical data accompanying the annual financial statements of Glencoe Education Foundation, Inc. and to determine whether the specified schedules are free of obvious enors and omissions as provided by the Board of Elementary and Secondary Education. Management of Glencoe Education Foundation, Inc. is responsible for its performance and statistical data. This agreed-upon procedures engagement was performed in accordance with attestation standards established by the Americai Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency ofthese procedures is solely the responsibility ofthe specified users of this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

Eugene H. Darnall, CPA Deceased 2009

E. Larry Sikes, CPA/PFS, CVA, CFPS Damiy P. Frederick, CPA

Clayton E. Damall, CPA CVA Eugene H. Damall, HI, CPA

Stephanie M Higginbotham, CPA John P. Annato. CPA/PFS

J. Stephen Gardes, CPA CVA Jennifer S. Ziegler, CPAPFS, CFP®

Chris A. Miller, CPA, CVA Steven G. Moosa, CPA

M. Rebecca Gardes, CPA Joan B. Moody, CPA

Lauren V. Hebert, CPA/PFS Baibai-a Ann Watts, CPA/CFE

Erich G. Loewer, UI, CPA M.S. Tax Stephen R_ Dischler, MBA, CPA

Pamela Mayeux Bomn, CPA CVA Craig C. Babineaux, CPAPFS, CFP®

Jeremy C. Meaux. CPA Chad M Bailey, CPA

Biathleen T. Damall, CPA Bievin S. Youi^, CPA

Adam J Curry, CPA, CFP® Christy S. Dew, CPA MPA

Blaine M. Crochet, CPA M.S. Rachel W. Ashford, CPA

Veronica L LeBleu, CPA MBA Kyle P. Saltzman, CPA

Christine Guidry Berwick CPA MBA Brandon L. Porter, CPA Christine H. Ford, CPA Bany J Du&ene, CPA

Tanya S. Nowhn, Ph.D., CPA Bi-andonR_ Dunihy, CPA

Seth C.Nonis, CPA W. Kyle George, CPA, MBA

Scott D. Haj^s, CPA MBA Ryan Earles, CPA

Jenifer Zaimbrecher, CPA Robeit C. Damall, CPA, M.S.

Elizabeth H. Olmde, CPA

Our procedures and findings relate to the accompanying schedules of supplemental information and are as follows:

General Fund Instructional and Support Expenditures and Certain Local Revenue Sources (Schedule 1)

1. We selected a random sample of 25 transactions imd reviewed supporting documentation to determine if the sampled expenditures/revenues ^ e classified conectly and are reported in the proper amounts for each ofthe following amounts reported on the schedule:

• Total General Fund Instructional Expenditures, • Total General Fund Equipment Expenditures, • Total Local Taxation Revenue, • Total Local Earnings on Investment in Real Property, • Total State Revenue in Lieu of Taxes, • Nonpublic Textbook Revenue, and • Nonpublic Transportation Revenue.

The Foundation does not receive local taxation revenue, local eiunings on investment in real property, state revenue in lieu of taxes, nonpublic textbook revenue, or nonpublic transportation revenue. With regard to the sample of transactions, no classification enors were noted.


Lafayette, LA. 70508 Phone: 337.232.3312 Fax: 337.237.3614


Phone: 337.457.4146 Fax: 337.457.5060

1201 Brasheai Avenue Suite 301

Morgan City, LA 70380 Phone: 985.384.6264 Fax: 985.384.8140

34






Education Levels of Public School Staff (Schedule 2)

2. We reconciled the total number of full-time classroom teachers per the schedule "Experience of Public Principals, Assistant Principals, and Full-time Classroom Teachers" (Schedule 4) to the combined total number of full-time classroom teachers per this schedule and to charter school supporting payroll records as of October 1, 2012.

No differences were noted for this procedure.

3. We reconciled the combined total of principals and assistant principals per the schedule "Experience of Public Principals, Assistant Principals, aid Full-time Classroom Teachers" (Schedule 4) to the combined total of principals and assistant principals per this schedule.


4. We obtained a list of full-time teachers, principals, aid assistant principals by classification as of October 1, 2012 and as reported on the schedule. We traced a random sample of 25 teachers to the individuals' personnel files and determined if the individuals' education levels were properly classified on the schedule.

Procedures indicated testing a random sample of 25 teachers. However, the Foundation only employed 26 teachers as of year end; therefore, we tested the entire population. No differences were noted for this procedure.

Number and Type of Public Schools (Schedule 3)

5. We obtained a list of schools by type as reported on the schedule. We compared the list to the schools and grade levels as reported on the Title I Grants to Local Educational Agencies (CFDA 84.010) application.


Experience of Public Principals. Assistant Principals, and Full-time Classroom Teachers (Schedule 4)

6. We obtained a list of full-time teachers, principals, and assistant principals by classification as of October 1, 2012 and as reported on the schedule and traced the same sample used in procedure 4 to the individuals' personnel files and determined if the individuals' experience was properly classified on the schedule.


Public School Staff Data: Average Salaries (Schedule 5)

7. We obtained a list of all classroom teachers including their base salary, extra compensation, and ROTC or rehired retiree status as well as full-time equivalent as reported on the schedule and traced a random sample of 25 teachers to the individuals' personnel files and detennined if the individuals' salaries, extra compensation, and full-time equivalents were properly included on the schedule.

Procedures indicated testing a random sample of 25 teachers. However, the Foundation only employed 26 teachers as of year end; therefore, we tested the entire population. No differences were noted for this procedure.

35

8. We recalculated the average salaries and full-time equivalents reported in the schedule.


Class Size Characteristics (Schedule 6)

9. We obtained a list of classes by school, school type, and class size as reported on the schedule and reconciled school type classifications to Schedule 3 data, as obtained in procedure 5. We then traced a random sample of 10 classes to the October 1, 2012 roll books for those classes and determined if the class was properly classified on this schedule.


Louisiana Educational Assessment Program (LEAP) (Schedule 7)

10. We obtained test scores as provided by the testing authority and reconciled scores as reported by the testing authority to scores reported in the schedule by Glencoe Education Foimdation, Inc.


Graduation Exit Exam (GEE) (Schedule 8)

11. We obtained test scores as provided by the testing authority and reconciled scores as reported by the testing authority to scores reported in the schedule by Glencoe Education Foundation, Inc.

We were unable to perfonn this procedure because Glencoe Education Foundation, Inc. did not have grades 10 or 11 during the fiscal years ended June 2013, 2012, and 2011.

/LEAP Tests (Schedule 9)

12. We obtained test scores as provided by the testing authority and reconciled scores as reported by the testing authority to scores reported in the schedule by Glencoe Education Foundation, Inc.


We were not engaged to perform, and did not perform, an audit, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to oiu" attention that would have been reported to you.

This report is intended solely for the use of management of Glencoe Education Foundation, Inc., the Louisiana Department of Education, the Louisiana Legislature, and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.



36


Schedule 1 - General Fund Instructional and Support Expenditures and Certain Local Revenue Sources For the Year Ended June 30, 2013

General Fund Instructional and Equipment Expenditures General Fund Instructional Expenditures: Teacher and Student Interaction Activities:

Classroom Teacher Salaries $1,174,187 Other Instructional Staff Activities 69,739 Instructional Staff Employee Benefits 505,206 Purchased Professional and Technical Services Instructional Materials and Supplies 51,446 Instructional Equipment z

Total Teacher and Student Interaction Activities $ 1,800,578 Other Instructional Activities 7,963 Pupil Support Services 68,193

Less: Equipment for Pupil Support Services z Net Pupil Support Services 68,193

Instructional Staff Services 22,343 Less: Equipment for Instructional Staff Services z

Net Instmctional Staff Services 22,343 School Administration 313,765

Less: Equipment for School Administration z Net School Administration 313,765

Total General Fund Instructional Expenditures $ _2,212,842 Total General Fund Equipment Expenditures $ _1.107

Certain Local Revenue Sources Local Taxation Revenue:

Constitutional Ad Valorem Taxes S Renewable Ad Valorem Taxes Debt Service Ad Valorem Taxes Up to 1 % of Collections by the Sheriff on Taxes Other Than School Taxes Sales and Use Taxes z

Total Local Taxation Revenue $ -Local Earnings on Investments in Real Property:

Earnings from 16th Section Property Earnings from Other Real Property z

Total Local Earnings on Investment in Real Property $ State Revenue in Lieu of Taxes:

Revenue Sharing - Constitutional Tax Revenue Sharing - Other Tax Revenue Sharing - Excess Portion Other Revenue in Lieu of Taxes z

Total State Revenue in Lieu of Taxes $ Nonpublic Textbook Revenue $ -Nonpublic Transportation Revenue $ -

See Independent Accountant's Report on Applying Agreed-upon Procedures

37


Schedule 2 - Education Levels of Public School Staff As ofOctober 1,2012

Category Less than a Bachelor's Degree

Bachelor's Degree Master's Degree Master's Degree +30

Specialist in Education Ph. D or Ed. D

Total

Full-time Classroom Teachers

Certificated Number

-

25 1 -

--

26

Percent 0%

96% 4% 0%

0% 0%

100%

Uncertificated Number

-

---

---

Percent 0%

0% 0% 0%

0% 0% 0%

Principals & Assistant Principals

Certificated Number

-

-1 -

--1

Percent 0%

0% 100%

0%

0% 0%

100%

Uncertificated Number

-

---

---

Percent 0%

0% 0% 0%

0% 0% 0%


38


Schedule 3 - Number and Type of Public Schools For the Yea: Ended June 30, 2013

Type

Elementary Middle/Jr. High Secondary

Combination Total

Number

1 --

-1


39


Schedule 4 - Experience of Public Principals, Assistant Principals, and Full-time Classroom Teachers

As ofOctober 1,2012

Principals Assistant Principals Classroom Teachers

Total

0-1 Yr. --2 2

2-3 Yrs. --2 2

4-10 Yrs. --8 8

11-14 Yrs. --4 4

Principals Assistant Principals Classroom Teachers

Total

15-19 Yrs. --1 1

20-24 Yrs. --5 5

25+ Yrs. 1 -4 5

Total 1 -

26 27


40


Schedule 5 -Public School Staff Data; Average Salaries For the Yea: Ended June 30, 2013

All Classroom Teachers

Classroom Teachers Excluding ROTC,

Rehired Retirees, and Flagged Salary

Reductions

Average Classroom Teacher's Salary Including Extra Compensation

46,681 46.486

Average Classroom Teacher's Salary Excluding Extra Compensation

46,532 46.331

Number of Teacher Full-Time Equivalents (FTEs) used in Computation of Average Salaries

29.00 28.00


41


Schedule 6 - Class Size Characteristics As ofOctober 1,2012

School Type Elementary Elementary Activity Classes

Middle/Jr. High Middle/Jr. High Activity Classes

High High Activity Classes Combination

Combination Activity Classes

Class Size Range 1-20

Percent 64.3% 38.5%

0.0% 0.0%

0.0% 0.0% 0.0%

0.0%

Number 74 5

--

---

-

21-26

Percent 35.7% 23.1%

0.0% 0.0%

0.0% 0.0% 0.0%

0.0%

Number 41

3

--

--

-

27-33

Percent 0.0% 0.0%

0.0% 0.0%

0.0% 0.0% 0.0%

0.0%

Number --

--

---

-

34+

Percent 0.0%

38.5%

0.0% 0.0%

0.0% 0.0% 0.0%

0.0%

Number -5

--

---

-


42


Schedule 7 - Louisiana Educational Assessment Program

District Achievement Level Results

Students

Grade 4 Advanced Mastery Basic Approaching Basic Unsatisfactory

Total

English Language Arts 2013

Number

2 11 26

1 -

40

Percent

5% 28% 65%

3% 0%

100%

2012 Number

3 5

28 4 1

41

Percent

7% 12% 68% 10% 2%

100%

2011 Number

3 6

19 6 2

36

Percent

8% 17% 53% 17% 5%

100%


Students


Total

Mathematics 2013

Number

8 9

21 2 -

40

Percent

20% 23% 53% 5% 0%

100%

2012

Number

-6

29 5 1

41

Percent

0% 15% 71% 12% 2%

100%

2011

Number

4 9

15 5 3

36

Percent

11% 25% 42% 14% 8%

100%


Students


Total

Science

2013 Number

-9

24 6 1

40

Percent

0% 23% 60% 15% 3%

100%

2012 Number

4 4

21 9 3

41

Percent

10% 10% 51% 22%

7%

100%

2011 Number

2 9

16 7 2

36

Percent

6% 25% 44% 19% 6%

100%


43


Schedule 7 - Louisiana Educational Assessment Program (Continued)


Students


Total

Social Studies 2013

Number

1 8

26 4 1

40

Percent

3% 20% 65% 10% 3%

100%

2012 Number

4 24 10 3

41

Percent

0% 10% 59% 24%

7% 100%

2011 Number

7 22 4 3

36

Percent

0% 20% 61% 11% 8%

100%


Students


Total


Number

-10 18

--

28

Percent

0% 36% 64% 0% 0%

100%

2012

Number

3 16 18 3 -

40

Percent

8% 40% 45%

8% 0%

100%

2011

Number

3 10 22

-1

36

Percent

8% 28% 61% 0% 3%

100%


Students


Total

Mathematics

2013 Number

-5

20 3 -

28

Percent

0% 18% 71% 11% 0%

100%

2012 Number

-6

30 4 -

40

Percent

0% 15% 75% 10% 0%

100%

2011 Number

2 2

29 1 2

36

Percent

6% 6%

80% 2% 6%

100%


44


Schedule 7 - Louisiana Educational Assessment Program (Continued)


Students


Total

Science 2013

Number

2 7

15 4 -

28

Percent

7% 25% 54% 14% 0%

100%

2012 Number

5 12 20

3 -

40

Percent

13% 30% 50%

8% 0%

100%

2011 Number

-13 16 5 2

36

Percent

0% 36% 44% 14% 6%

100%


Students Grade 8 Advanced Mastery Basic Approaching Basic Unsatisfactory

Total

Social Studies 2013

Number

1 4

23

28

Percent

4% 14% 82% 0% 0%

100%

2012

Number

4 12 18 5 1

40

Percent

10% 30% 45% 13% 3%

100%

2011

Number

2 7

21 5 1

36

Percent

6% 19% 58% 14% 3%

100%


45


Schedule 8 - Graduation Exit Exam


Students

GvadQ 10

Advanced Mastery Basic Approaching Basic Unsatisfactory

Total

English Language Arts

2013 Number

N/A N/A N/A N/A N/A N/A

Percent


2012 Number


Percent


2011 Number


Percent



Students


Total

Mathematics

2013

Number

N/A N/A N/A N/A N/A

N/A

Percent

N/A N/A N/A N/A N/A

N/A

2012

Number

N/A N/A N/A N/A N/A

N/A

Percent

N/A N/A N/A N/A N/A

N/A

2011

Number

N/A N/A N/A N/A N/A

N/A

Percent

N/A N/A N/A N/A N/A

N/A


Students


Total

Science

2013 Number

N/A N/A N/A N/A N/A

N/A

Percent

N/A N/A N/A N/A N/A

N/A

2012 Number

N/A N/A N/A N/A N/A

N/A

Percent

N/A N/A N/A N/A N/A

N/A

2011 Number


Percent

N/A N/A N/A N/A N/A

N/A


46


Schedule 8 - Graduation Exit Exam (Continued)


Students

GvadQ 10 Advanced Mastery Basic Approaching Basic Unsatisfactory

Total

Social Studies 2013

Number


Percent


2012 Number


Percent


2011 Number


Percent



47


Schedule 9-iLEAP


Students


Total


Number

1 7

19 7

34

Percent

3% 21% 56% 21%

0% 100%

Mathematics 2013

Number

4 12 17

1

34

Percent

12% 35% 50%

3% 0%

100%

Science 2013

Number

5 20

7 2 34

Percent

0% 15% 59% 21%

6% 100%

Social Studies 2013

Number

1 1

21 11

34

Percent

3% 3%

62% 32%

0% 100%


Students


Total


Number

1 6

25 7 2

41

Percent

2% 15% 61% 17% 5%

100%

Mathematics 2013

Number

-8

28 -5

41

Percent

0% 20% 68% 0%

12%

100%

Science 2013

Number

-10 16 12 3

41

Percent

0% 24% 39% 29%

7%

100%

Social Studies 2013

Number

1 4

17 13 6

41

Percent

2% 10% 41% 32% 15%

100%


Students


Total


2013 Number

3 14 26

3

46

Percent

7% 30% 57% 7% 0%

100%

Mathematics

2013 Number

8 8

23 6 1

46

Percent

17% 17% 50% 13% 2%

100%

Science

2013 Number

2 15 24

5

46

Percent

4% 33% 52% 11% 0%

100%

Social Studies

2013 Number

5 14 23 4

46

Percent

11% 30% 50%

9% 0%

100%


48


Schedule 9 - iLEAP (Continued)


Students


Total


Number

5 7

20 6

38

Percent

13% 18% 53% 16% 0%

100%

Mathematics 2013

Number

1 8

24 5

38

Percent

3% 21% 63% 13% 0%

100%

Science 2013

Number

3 11 14 8 2 38

Percent

8% 29% 37% 21%

5% 100%

Social Studies 2013

Number

1 8

22 3 4 38

Percent

3% 21% 58% 8%

11% 100%


Students


Total


2013 Number


Percent


Mathematics

2013 Number


Percent



49




Students


Total


Number

2 9

28 5 1

45

Percent

4% 20% 62% 11% 2%

100%

Mathematics 2012

Number

4 12 25

3 1

45

Percent

9% 27% 56%

7% 2%

100%

Science 2012

Number

2 13 21

7 2 45

Percent

4% 29% 47% 16% 4%

100%

Social Studies 2012

Number

-11 24

7 3 45

Percent

0% 24% 53% 16% 7%

100%


Students


Total


Number

11 18 13 1

43

Percent

0% 26% 42% 30%

2%

100%

Mathematics 2012

Number

1 9

22 9 2

43

Percent

2% 21% 51% 21%

5% 100%

Science 2012

Number

13 21

8 1

43

Percent

0% 30% 49% 19% 2%

100%

Social Studies 2012

Number

4 8

23 6 2 43

Percent

9% 19% 53% 14% 5%

100%


Students


Total


2012 Number

1 11 28 4 1

45

Percent

2% 24% 62% 9% 2%

100%

Mathematics

2012 Number

3 11 29

2 -

45

Percent

7% 24% 64%

4% 0%

100%

Science

2012 Number

1 13 25

6 -

45

Percent

2% 29% 56% 13% 0%

100%

Social Studies

2012 Number

1 5

31 4 4

45

Percent

2% 11% 69%

9% 9%

100%


50




Students


Total


Number

2 10 21

3 -

36

Percent

6% 28% 58%

8% 0%

100%

Mathematics 2012

Number

2 13 18 3 -

36

Percent

6% 36% 50%

8% 0%

100%

Science 2012

Number

-20 12 4 -

36

Percent

0% 56% 33% 11% 0%

100%

Social Studies 2012

Number

2 8

22 4 -

36

Percent

6% 22% 61% 11% 0%

100%


Students


Total


2012 Number


Percent


Mathematics

2012 Number


Percent



51




Students


Total


Number

1 6

27 6 3 43

Percent

2% 14% 63% 14% 7%

100%

Mathematics 2011

Number

1 13 22

3 4 43

Percent

2% 30% 51%

7% 10%

100%

Science 2011

Number

3 26 11 3 43

Percent

0% 7%

60% 26%

7% 100%

Social Studies 2011

Number

6 23 10 4 43

Percent

0% 14% 54% 23%

9% 100%


Students


Total


Number

-14 23

7 1

45

Percent

0% 31% 51% 16% 2%

100%

Mathematics 2011

Number

5 10 22

6 2

45

Percent

11% 22% 49% 13% 5%

100%

Science 2011

Number

5 10 22

7 1

45

Percent

11% 22% 49% 16% 2%

100%

Social Studies 2011

Number

1 8

30 5 1

45

Percent

2% 18% 67% 11% 2%

100%


Students


Total


2011 Number

1 8

24 8 3

44

Percent

2% 18% 55% 18% 7%

100%

Mathematics

2011 Number

3 5

24 7 5

44

Percent

7% 11% 55% 16% 11%

100%

Science

2011 Number

3 7

23 7 4

44

Percent

7% 16% 52% 16% 9%

100%

Social Studies

2011 Number

3 3

29 2 7

44

Percent

7% 7%

66% 4%

16%

100%


52




Students


Total


Number

2 9

28 3

42

Percent

5% 21% 67%

7% 0%

100%

Mathematics 2011

Number

2 9

26 4 1

42

Percent

5% 21% 62% 10% 2%

100%

Science 2011

Number

14 20

7 1

42

Percent

0% 33% 48% 17% 2%

100%

Social Studies 2011

Number

4 8

20 6 4 42

Percent

9% 19% 48% 14% 10%

100%


Students


Total


2011 Number


Percent


Mathematics

2011 Number


Percent



53

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