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RIVERBANK CHARTER SCHOOL OF EXCELLENCECOMPREHENSIVE ANNUALFINANCIAL REPORTFISCAL YEAR ENDED JUNE 30, 20161

RIVERBANK CHARTER SCHOOL OF EXCELLENCERiverbank Charter School of ExcellenceBoard of TrusteesRoebling, New JerseyComprehensive Annual Financial ReportFor the Fiscal Year Ended June 30, 20162

COMPREHENSIVE ANNUALFINANCIAL REPORTOF THERIVERBANK CHARTER SCHOOL OF EXCELLENCEROEBLING, NEW JERSEYFOR THE FISCAL YEAR ENDED JUNE 30, 2016Prepared ByRiverbank Charter School of ExcellenceFinance DepartmentAndBarre & Company, CPA’s3

STATE BOARD OF EDUCATIONMARK W. BIEDRON .HunterdonPresidentJOSEPH FISICARO.BergenVice PresidentARCELIO APONTE .MiddlesexRONALD K. BUTCHER .GloucesterJACK FORNARO.WarrenEDITHE FULTON .OceanERNEST P. LEPORE.HudsonANDREW J. MULVIHILL.SussexJ. PETER SIMON .MorrisDOROTHY S. STRICKLAND .EssexDavid C. Hespe, Commissioner of EducationSecretary, State Board of Education4

RIVERBANK CHARTER SCHOOL OF EXCELLENCETABLE OF CONTENTSPageINTRODUCTORY SECTION . 1Transmittal Letter . 2Organizational Chart . 7Roster of Officials . 8Consultants and Advisors. 9FINANCIAL SECTION. 10Independent Auditor’s Report . 11REQUIRED SUPPLEMENTARY INFORMATION – PART I . 14Management’s Discussion and Analysis. 15BASIC FINANCIAL STATEMENTS. 21SECTION A – CHARTER SCHOOL-WIDE FINANCIAL STATEMENTS. 22A-1A-2Statement of Net Position . 23Statement of Activities . 24SECTION B – FUND FINANCIAL STATEMENTS. 25GOVERNMENTAL FUNDS . 26B-1B-2B-3Balance Sheet . 27Statement of Revenues, Expenditures, and Changes in Fund Balances. 28Reconciliation of Statement of Revenues, Expenditures, and Changes in FundBalances of Governmental Funds to the Statement of Activities . 29PROPRIETARY FUNDS . 30B-4B-5B-6Statement of Fund Net Position . 31Statement of Revenues, Expenses, and Changes in Fund Net Position . 32Statement of Cash Flows . 33FIDUCIARY FUNDS . 34B-7Statement of Fiduciary Net Position . 35NOTES TO THE FINANCIAL STATEMENTS. 36REQUIRED SUPPLEMENTARY INFORMATION – PART II . 66SECTION C – BUDGETARY COMPARISON SCHEDULE . 67C-1C-2Budgetary Comparison Schedule – General Fund . 68Budgetary Comparison Schedule – Special Revenue Fund . 70NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION . 71C-3Budget-to-GAAP Reconciliation . 725

RIVERBANK CHARTER SCHOOL OF EXCELLENCETABLE OF CONTENTSPageFINANCIAL SECTION (CONTINUED)REQUIRED SUPPLEMENTARY INFORMATION – PART III . 73SCHEDULE L - SCHEDULES RELATED TO ACCOUNTING AND REPORTING FORPENSIONS (GASB 68) . 74L-1L-2L-3Schedules of the Charter School’s Proportionate Share of the Net PensionLiability - PERS. 75Schedules of Charter School Contributions - PERS . 76Schedules of the Charter School’s Proportionate Share of the Net PensionLiability - TPAF . 77NOTES TO REQUIRED SUPPLEMENTARY INFORMATION III. 78OTHER SUPPLEMENTARY INFORMATION. 81SECTION E – SPECIAL REVENUE FUND . 82E-1Combining Schedule of Revenues and Expenditures – Budgetary Basis . 83SECTION G – PROPRIETARY FUNDS. 84SECTION H – FIDUCIARY FUNDS . 85H-1H-4Combining Statement of Fiduciary Net Position . 86Schedule of Receipts and Disbursements. 87STATISTICAL SECTION (UNAUDITED). 88INTRODUCTION TO THE STATISTICAL SECTION . 89FINANCIAL TRENDS . 90J-1J-2J-3J-4Net Assets/Position by Component. 91Changes in Net Assets/Position . 92Fund Balances – Governmental Funds . 93Changes in Fund Balances – Governmental Funds . 94OPERATING INFORMATION. 95J-16J-17J-20J-21Full-Time Equivalent Charter School Employees by Function/Program. 96Operating Statistics. 97Insurance Schedule . 98Charter School Performance Framework, Financial Performance, Fiscal Ratios. 99SINGLE AUDIT SECTION . N/A6

INTRODUCTORY SECTION11

Riverbank Charter School of Excellence1300 Hornberger AvenueRoebling, New Jersey 08554December 1, 2016Transmittal LetterHonorable President andMembers of the Board of TrusteesRiverbank Charter School of ExcellenceRoebling, New JerseyDear Board Members:We are pleased to present to you the Comprehensive Annual Financial Report (CAFR) of theRiverbank Charter School of Excellence (Charter School) for the fiscal year ended June 30,2016. This CAFR includes the Charter School’s Basic Financial Statement prepared inaccordance with Governmental Accounting Standards Board Statement 34.The Charter School has elected to adopt this new financial reporting model which we believewill provide all users of this document with much more useful financial and statistical informationthan ever before. Responsibility for both the accuracy of the data and completeness andfairness of the presentation, including all disclosures, rests with the management of the Board ofTrustees (Board).To the best of our knowledge and belief, the data presented in this report is accurate in allmaterial respects and is reported in a manner designed to present fairly the financial positionand results of operations of the Charter School. This report will provide the taxpayers of theRiverbank Charter School of Excellence with comprehensive financial data in a format enablingthem to gain an understanding of the Charter School’s financial affairs.The Comprehensive Annual Financial Report is presented in four sections as follows: The Introductory Section contains a table of contents, Letter of Transmittal, List ofPrincipal Officials, and an Organizational Chart of the Charter School; The Financial Section begins with the Independent Auditors’ Report and includes theManagement’s Discussion and Analysis, the Basic Financial Statements and Notesproviding an overview of the Charter School’s financial position and operating results,and other schedules providing detailed budgetary information; The Statistical Section includes selected economic and demographic information,financial trends, and the fiscal capacity of the Charter School, generally presented on amulti-year basis;22

The Single Audit Section — The Charter School is required to undergo an annual singleaudit in conformity with the provisions of the Single Audit Act Amendments of 1996, theU.S. Office of Management and Budget (OMB) Circular A-133, “Audits of States, LocalGovernments and Non-Profit Organizations”, and the New Jersey State Office ofManagement and Budget (OMB) Circular 04-04, “Single Audit Policy for Recipients ofFederal Grants, State Grants and State Aid”. Information related to this single audit,including the independent auditor’s report on the internal control and compliance withapplicable laws, regulations, contracts and grants, along with findings and questionedcosts, are included in the single audit section of this report.Charter School OrganizationAn elected five-member Board of Trustees (the “Board”) serves as the policy maker for theCharter School. The Board adopts an annual budget and directly approves all expenditureswhich serve as the basis for control over and authorization for all expenditures of the CharterSchool funds.The Lead Person is the chief executive officer of the Charter School, responsible to the Boardfor total educational and support operations. The Business Administrator is the chief financialofficer of the Charter School, responsible to the Board for maintaining all financial records,issuing warrants in payment of liabilities incurred by the Charter School, acting as custodian ofall Charter School funds, and investing idle funds as permitted by New Jersey law.1.REPORTING ENTITY AND ITS SERVICES: Riverbank Charter School of Excellence isan independent reporting entity within the criteria adopted by the Government AuditingStandards Board (GASB) as established by GASB Statement No. 14. All funds and accountgroups of the school are included in this report. Riverbank Charter School of Excellence andBoard of Trustees, constitutes the Charter School’s reporting entity.The focus of education at Riverbank Charter School of Excellence has always been what is bestfor the success of the children. With this in mind, the school provides a full range of educationalservices appropriate to meeting the needs of all students in grades Kindergarten through Grade3 during the 2015-2016 school year. Such instructional services include regular education,special education and basic skills program.Riverbank Charter School of Excellence ended the 2015-2016 school year with an enrollment of144 students. The following details the student enrollment of the Charter School over the lastyear:Average Daily rage ntChange0.0%-0.8%0.8%4.9%12.6%33

2.ECONOMIC CONDITION AND OUTLOOK: In September of 2008, Riverbank CharterSchool of Excellence was “chartered” by the Commissioner of Education for the State of NewJersey to operate an independent public school. Riverbank Charter School of Excellence isaccountable to its students, parents, community, and the New Jersey Department of Educationto fulfill its mission and deliver an exceptional academic program that leads to achievement forall of our students.Riverbank Charter School of Excellence serves as a positive school culture functioning tosharpen the focus of staff and students, building commitment and sense of community, fosteringmotivation to achieve valued ends, and encouraging productivity and learning. Our school’smission is to provide students with opportunities to develop their intellectual, emotional andsocial potential through the implementation of a dynamic curriculum that fosters learningthrough a cooperative effort involving home, school, and community. By all three workingtogether, students can attain their maximum potential critical thinkers, lifelong learners, andresponsible, contributing citizens in a rapidly changing pluralistic society. With this is the beliefthat children learn best when the significant adults in their lives – parents, teachers andcommunity members – work together to encourage and support their development. As such,we believe that parental involvement in a child’s education is paramount.Since the school’s inception, students have continually demonstrated their knowledge byscoring proficient or advanced proficient on all standardized tests.We are privileged that our parents send their children to Riverbank Charter School ofExcellence. More than 98% of our parents are pleased with the progress their children aremaking. Our school families appreciate the effort, time, improvements, and consistency eachyear. We are highly recommended through word of mouth, and our presence in the townshiphas grown more favorable each year.Riverbank Charter School of Excellence is fiscally solvent and continues to maintain a surpluswhile expanding educational programs, extra-curricular activities, providing various professionaldevelopment training for staff, as well as improvements to the school building. It is our goal tobe continuously growing, improving, and achieving higher goals each year. We are confidentthat Riverbank Charter School of Excellence will soon be recognized as a Blue Ribbon Schoolin the State of New Jersey.3.MAJOR INITIATIVES: The Charter School has developed a comprehensive strategicplan to support its mission and vision and serves as a blueprint for the achievement of its goals.The plan includes objectives, such as pupil achievement as measured by standardized testsand teacher assessment instruments; formal professional development for the certified and noncertified staff; and the implementation of a technology plan in all classrooms.4.INTERNAL ACCOUNTING CONTROLS: Management of the Charter School isresponsible for establishing and maintaining an internal control designed to ensure that theassets of the Charter School are protected from loss, theft or misuse and to ensure thatadequate accounting data are compiled to allow for the preparation of financial statements inconformity with generally accepted accounting principles (GAAP). Internal control is designedto provide reasonable, but not absolute, assurance that these objectives are met. The conceptof reasonable assurance recognizes that:44

INTERNAL ACCOUNTING CONTROLS (CONTINUED)a) the cost of a control should not exceed the benefits likely to be derived; andb) the valuation of costs and benefits requires estimates and judgments bymanagement.As a recipient of federal and state financial assistance, the Charter School is responsible forensuring that adequate internal controls are in place to ensure compliance with applicable lawsand regulations related to those programs. Internal control is also subject to periodic evaluationby the Charter School’s management.As part of the Charter School’s single audit described earlier, tests are made to determine theadequacy of internal controls, including that portion related to federal and state financialassistance programs, as well as to determine that the Charter School has complied withapplicable laws and regulations.5.BUDGETARY CONTROLS: In addition to internal accounting controls, the CharterSchool maintains budgetary controls. The objective of these budgetary controls is to ensurecompliance with legal provisions embodied in the annual appropriated budget approved by thevoters of the municipality. Annual appropriated budgets are adopted for the general fund andthe special revenue fund. The final budget amount, as amended for the fiscal year, is reflectedin the financial section.An encumbrance accounting system is used to record outstanding purchase commitments on aline item basis. Open encumbrances at year-end are either cancelled or are included asreappropriations of fund balance in the subsequent year. Those amounts to be reappropriatedare reported as reservations of fund balance at June 30, 2016.6.CASH MANAGEMENT: The investment policy of the Charter School is guided in largepart by state statute as detailed in “Notes to the Basic Financial Statement” Note 3. The CharterSchool had adopted a cash management plan which requires it to deposit funds in publicdepositories protected from loss under the provisions of the7.Governmental Unit Deposit Protection Act (“GUDPA”). GUDPA was enacted in 1970 toprotect Government Units from a loss of funds on deposit with a failed banking institution in NewJersey. The law requires governmental units to deposit public funds only in public depositorieslocated in New Jersey, where the funds are secured in accordance with the Act.8.RISK MANAGEMENT: The Board carries various forms of insurance, including but notlimited to general liability, directors and officers insurance and workmen’s compensation.9.OTHER INFORMATION:Independent Audit - State statutes require an annual audit by independent certified publicaccountants or registered municipal accountants. The accounting firm of Barre & Company,Certified Public Accountants, was selected by the Board of Trustees. In addition to meeting therequirement set forth in State statures, the annual audit was designed to meet the requirement55

OTHER INFORMATION (CONTINUED)of the Uniform Guidance and the New Jersey Circular Letter of 15-08 OMB, Single Audit forRecipients of Federal Grants, State Grants, and State Aid”. The auditor’s report on the basicfinancial statements and specified required supplemental information is included in the FinancialSection of this report. The auditor’s report related specifically to the single audit is included inthe Single Audit Section of this report.10.ACKNOWLEDGEMENTS: We would like to express our appreciation to the membersof the Riverbank Charter School of Excellence Board of Trustees for their concern in providingfiscal accountability to the citizens and taxpayers of the Charter School and thereby contributingtheir full support to the development and maintenance of our financial operation. Thepreparation of this report could not have been accomplished without the efficient and dedicatedservices of our staff.Respectfully submitted,Deborah PontorieroBusiness Administrator66

7Organizational Chart7

RIVERBANK CHARTER SCHOOL OF EXCELLENCEROEBLING, NEW JERSEYROSTER OF OFFICIALSJUNE 30, 2016Roster of OfficialsMEMBERS OF THE BOARD OF TRUSTEESStuart CarrollBoard PresidentMichael SullivanTrusteeJenean SwainTrusteeKathleen MagoonTrusteeSusan McCoolTrusteeJon MarbachTrusteeSCHOOL OFFICIALSBeth KelleySchool LeaderDeborah PontorieroSBACharles Murray (Ex-Officio)Teacher Representative8

RIVERBANK CHARTER SCHOOL OF EXCELLENCEROEBLING, NEW JERSEYCONSULTANTS AND ADVISORSConsultants and AdvisorsAudit FirmBarre & CompanyCertified Public Accountants2204 Morris Avenue, Suite 206Union, New Jersey 07083AttorneyJohnson Law Firm77 Midland AveSuite 1Montclair, New Jersey 07042(up to April 2016)Official DepositorySun National Bank411 Route 33Hamilton New Jersey 0861999

FINANCIAL SECTION1010

BARRE & COMPANYCERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS2204 Morris Avenue, Suite 206Union, New Jersey 07083(908) 686-3484FAX – (908) 686-6055Independent Auditor’s ReportIndependent Auditor’s ReportHonorable PresidentMembers of the Board of TrusteesRiverbank Charter School of ExcellenceCounty of BurlingtonRoebling, New JerseyReport on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, each major fund, and the aggregate remaining fund information of theRiverbank Charter School of Excellence (Charter School), in the County of Burlington, State ofNew Jersey, as of and for the fiscal year ended June 30, 2016, and the related notes to thefinancial statements, which collectively comprise the Charter School’s basic financial statementsas listed in the table of contents.Management’s Responsibility for the Financial StatementsThe Charter School’s management is responsible for the preparation and fair presentation ofthese financial statements in accordance with accounting principles generally accepted in theUnited States of America; this includes the design, implementation, and maintenance of internalcontrol relevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audit contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States; and auditrequirements as prescribed by the Office of Finance, Department of Education, State of NewJersey. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.www.cpa-bc.com [email protected] Independence Way Suite 300 Princeton, NJ 08540 (609) 275-481011

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinions.OpinionsIn our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, the business-type activities, theaggregate discretely presented component units, each major fund, and the aggregate remainingfund information of the Riverbank Charter School of Excellence, in the County of Burlington,State of New Jersey, as of June 30, 2016, and the respective changes in the financial positionand, where applicable, cash flows thereof for the year then ended in accordance withaccounting principles generally accepted in the United States of America.Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that theManagement’s Discussion and Analysis and Budgetary Comparison Information starting onpages 15 and 67, respectively, be presented to supplement the basic financial statements.Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States ofAmerica, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management’s response to ourinquiries, 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 theinformation because the limited procedures do not provide us with sufficient evidence to expressan opinion or provide any assurance.Supplementary and Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Charter School’s basic financial statements. The accompanyingsupplementary information such as the combining and individual fund financial statements andschedules of expenditures of federal awards and state financial assistance, as required by in theU.S. Office of Management and Budget (OMB) Compliance Supplement and the New JerseyCircular 15-08 OMB State Aid/Grant Compliance Supplement respectively; and the otherinformation, such as the introductory and statistical sections are presented for purposes ofadditional analysis and are not a required part of the basic financial statements.The combining and individual nonmajor fund financial statements and schedules ofexpenditures of federal awards and state financial assistance are the responsibility ofmanagement and were derived from and relate directly to the underlying accounting and otherrecords use to prepare the basic financial statements. Such information has been subjected tothe auditing procedures applied in the audit of the basic financial statements and certainadditional procedures, including comparing and reconciling such information directly to theunderlying accounting and other records used to prepare the basic financial statements or to thebasic financial statements themselves, and other additional procedures in accordance withauditing standards generally accepted in the United States of America. In our opinion, the12

combining and individual nonmajor fund financial statements and schedules of expenditures offederal awards and state financial assistance are fairly stated, in all material respects, in relationto the basic financial statements as a whole.The introductory and statistical sections have not been subjected to the auditing proceduresapplied in the audit of the basic financial statements, and accordingly, we do not express anopinion or provide any assurance on it.Other Reporting Required by Government Auditing Standards and the Division ofFinance, Department of Education, State of New JerseyIn accordance with Government Auditing Standards and the Division of Finance, Department ofEducation, State of New Jersey, we have also issued our report dated December 1, 2016 on ourconsideration of the Riverbank Charter School of Excellence’s internal control over financialreporting and 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

Riverbank Charter School of Excellence (Charter School) for the fiscal year ended June 30, 2016. This CAFR includes the Charter School’s Basic Financial Statement prepared in accordance with Governmental Accounting Standards Board Statement 34. The Charter School has elected to