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JERSEY CITY GLOBALCHARTER SCHOOLCOMPREHENSIVE ANNUALFINANCIAL REPORTJUNE 30, 2020PREPARED BYJersey City Global Charter School

JERSEY CITY GLOBAL CHARTER SCHOOL(COUNTY OF HUDSON, NEW JERSEY)TABLE OF CONTENTSPAGE NO.INTRODUCTORY SECTIONLetter of Transmittal . 1-7Organizational Chart . 8Roster of Officials . 9Consultants and Advisors . 10FINANCIAL SECTIONIndependent Auditor’s Report . 11-13Required Supplementary Information – Part IManagement’s Discussion and Analysis . 14-19Basic Financial StatementsA. Charter School-Wide Financial Statements:A-1 Statement of Net Position . 20A-2 Statement of Activities . 21B. Fund Financial Statements:Governmental Funds:B-1 Balance Sheet . 22B-2 Statement of Revenues, Expenditures and Changes in Fund Balances . 23B-3 Reconciliation of the Statement of Revenues, Expenditures andChanges in Fund Balances of Governmental Funds to theStatement of Activities . 24Proprietary Funds:B-4 Statement of Net Position . 25B-5 Statement of Revenues, Expenses and Changes in Fund Net Position . 26B-6 Statement of Cash Flows . 27Fiduciary Funds:B-7 Statement of Fiduciary Net Position . 28B-8 Statement of Changes in Fiduciary Net Position . 29Notes to the Basic Financial Statements . 30-66

JERSEY CITY GLOBAL CHARTER SCHOOL(COUNTY OF HUDSON, NEW JERSEY)TABLE OF CONTENTSPAGE NO.Required Supplementary Information – Part IIC. Budgetary Comparison Schedules:C-1 Budgetary Comparison Schedule–General Fund. 67-68C-2 Budgetary Comparison Schedule-Special Revenue Fund . 69Notes to the Required Supplementary Information – Part IIC-3 Budget-to-GAAP Reconciliation . 70Required Supplementary Information – Part IIIL. Schedules Related to Accounting and Reporting for Pensions (GASB 68):L-1 Schedule of the Charter School Proportionate Shareof the Net Pension Liability - PERS. 71L-2 Schedule of Charter School Contributions - PERS . 72L-3 Schedule of the Charter School Proportionate Shareof the Net Pension Liability - TPAF . 73M. Schedules Related to Accounting and Reporting for OPEB (GASB 75):M-1 Schedule of Changes in the Charter School’s Total OPEB Liabilityand Related Ratios. 74Notes to the Required Supplementary Information – Part III . 75Other Supplementary InformationD. School Based Budget Schedules . N/AE. Special Revenue Fund:E-1 Combining Schedule of Program Revenues and ExpendituresSpecial Revenue Fund – Budgetary Basis . 76F. Capital Projects FundF-1 Summary Schedule of Project Expenditures . 77F-2 Summary Schedule of Revenue, Expenditures, andChanges in Fund Balance – Budgetary Basis . 78

JERSEY CITY GLOBAL CHARTER SCHOOL(COUNTY OF HUDSON, NEW JERSEY)TABLE OF CONTENTSPAGE NO.G. Proprietary Funds:Enterprise Fund:G-1 Combining Schedule of Net Position. 79G-2 Combining Schedule of Revenues, Expenses andChanges in Fund Net Position . 80G-3 Combining Schedule of Cash Flows . 81H. Fiduciary FundsH-1 Combining Statement of Fiduciary Net Position . 82H-2 Combining Statement of Changes in Fiduciary Net Position. 83H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements . 84H-4 Payroll Agency Fund Schedule of Receipts and Disbursements . 85I.Long-Term Debt . 86STATISTICAL SECTION (Unaudited)Introduction to the Statistical SectionFinancial TrendsJ-1 Net Position by Component . 87J-2 Changes in Net Position . 88J-3 Fund Balances – Governmental Funds . 89J-4 Changes in Fund Balances – Governmental Funds . 90J-5 General Fund – Other Local Revenue by Source . N/ARevenue CapacityJ-6 – J-9 . N/ADebt CapacityJ-10 – J-13 . N/ADemographic and Economic InformationJ-14 Demographic and Economic Statistics. 91J-15 Principal Employers . 92

JERSEY CITY GLOBAL CHARTER SCHOOL(COUNTY OF HUDSON, NEW JERSEY)TABLE OF CONTENTSPAGE NO.Operating InformationJ-16 Full-time Equivalent Charter School Employees byFunction/Program . 93J-17 Operating Statistics . 94J-18 School Building Information . 95J-19 Schedule of Allowable Required Maintenance Expendituresby School Facility . N/AJ-20 Insurance Schedule . 96J-21 Charter School Performance Framework, Financial Performance,Fiscal Ratios . 97SINGLE AUDIT SECTIONK-1Independent Auditor’s Report on Internal Control overFinancial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed inAccordance with Government Auditing Standards . 98-99K-2Independent Auditor’s Report on Compliance for Each Major State Programand on Internal Control Over Compliance as Required by the New JerseyOMB Circular Letter 15-08 . 100-102K-3Schedule of Expenditures of Federal Awards, Schedule A . 103K-4Schedule of Expenditures of State Financial Assistance, Schedule B . 104K-5Notes to the Schedules of Expenditures of Federal Awards andState Financial Assistance . 105-106K-6Schedule of Findings and Questioned Costs– Summary of Auditor’s Results . 107-108K-7Schedule of Findings and Questioned Costs – Schedule of FinancialStatement Findings and Schedule of Federal and State AwardFindings and Questioned Costs . 109K-8Summary Schedule of Prior Year Audit Findings . 110

Responsibility. Rapport. Rewards.Jersey City Global Charter SchoolJanuary 12, 2021Angelica Allen-McMillan, Ed.D.Acting CommissionerNew Jersey Department of Education100 Riverview Executive PlazaCN – 500Trenton, New Jersey 08625-0500Dear Ms. Allen-McMillan:We are pleased to present to you the Comprehensive Annual Financial Report (CAFR) of theJersey City Global Charter School (Charter School) for the fiscal year ended June 30, 2020.This CAFR includes the Charter School’s Basic Financial Statements prepared in accordancewith 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 theCharter School with comprehensive financial data in a format enabling them to gain anunderstanding 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 of PrincipalOfficials, and an Organizational Chart of the Charter School; The Financial Section begins with the Independent Auditor’s 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, andother schedules providing detailed budgetary information; The Statistical Section includes selected economic and demographic information, financialtrends, and the fiscal capacity of the Charter School, generally presented on a multi-yearbasis;

The Single Audit Section — The Charter School is required to undergo an annual single audit inconformity with the provisions of the New Jersey State Office of Management and Budget(OMB) Circular Letter 15-08, “Single Audit Policy for Recipients of Federal Grants, State Grantsand State Aid”. Information related to this single audit, including the independent auditor’s reporton the internal control and compliance with applicable laws, regulations, contracts and grants,along with findings and questioned costs, are included in the single audit section of this report.Charter School OrganizationAn elected Board of Trustees (the “Board”) serves as the policy maker for the Charter School.The Board adopts an annual budget and directly approves all expenditures which serve as thebasis for control over and authorization for all expenditures of Charter School tax money.The Principal is the chief executive officer of the Charter School, responsible to the Board fortotal 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: The Jersey City Global Charter School is anindependent 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 Charter School are included in this report. The Charter School’s Board ofTrustees, constitutes the Charter School’s reporting entity.The focus of education at Jersey City Global Charter School has always been what is bestfor the success of the children. With this in mind, the school provides a full range of servicesappropriate to meeting the needs of all students in Kindergarten through Grade Four (4).Such instructional services include regular education and special education.Jersey City Global Charter School ended the 2019-2020 school year with an enrollment of468 students. The following details the student enrollment of the Charter School over thelast five years:Average Daily 7.31%2016-201736199.17%2015-201630897.31%2. ECONOMIC CONDITION AND OUTLOOK: The Charter School is located in Jersey City,New Jersey and has completed its first year of implementation. The Charter School islocated in one of the major urban areas in the State of New Jersey. They are experiencingsome of the same social and economic phenomena as other urban areas its size. Thesephenomena include, but are not limited to, unemployment, and under employment among itsworking class population.-2-

3. INITIATIVES: The Charter School has developed a comprehensive strategic plan to supportits mission and vision which serves as a blueprint for the achievement of its goals. The planincludes objectives, such as pupil achievements, staff development and technology in theclassroom.a. 2019-2020 School Performance SummaryGrade 3Thirty-six students took PARCC Assessment for both English Language Arts andMathematics. Thirty students Met or Exceeded Expectations which is composed of 83.3% ofour students in the area of English Language Arts. 11 students Exceeded Expectations, 19students Met Expectations, 4 students were Approaching Expectations, 1 student PartiallyMet Expectations and 1 student Did Not Yet Meet Expectations, respectively.12 students were Female and 24 students were Male in the Third Grade. 91% of theFemales in the Third Grade Met or Exceeded Expectations in English Language Arts while79.2% of the Males in the Third Grade Met or Exceeded Expectations in English LanguageArts. 76.5% of students who identify as Hispanic or Latino Met or Exceeded Expectations,100% of students who identify as Asian Met or Exceeded Expectations, 66.7% of studentswho identify as Black or African Americans Met or Exceeded Expectations, and 66.7% ofstudents who identify as White Met or Exceeded Expectations in the area of EnglishLanguage Arts.76.2% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 100% of our students with Individual Educational Plans Met or ExceededExpectations, 100% of our students identified as English Language Learners Met orExceeded Expectations in the area of English Language Arts.Thirty-six students took PARCC Assessment in Mathematics and 28 students Met orExceeded Expectations which is composed of 77.8%. 12 students Exceeded Expectations,16 Met Expectations, 5 Students were Approaching Expectations, 1 student Partially MetExpectations, and 2 students Did Not Yet Meet Expectations, respectively.12 students were Female and 24 students were Male in the Third Grade. 83.3% of Femalesin the Third Grade Met or Exceeded Expectations in Mathematics while 75% of the Males inthe Third Grade Met or Exceeded Expectations in Mathematics. 70.6% of students whoidentify as Hispanic or Latino Met or Exceeded Expectations, 92.3% of students who identifyas Asian Met or Exceeded Expectations, 66.7% of students who identify as Black or AfricanAmericans Met or Exceeded Expectations, and 66.7% of students who identify as White Metor Exceeded Expectations in the area of Mathematics.71.4% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 100% of our students with Individual Educational Plans Met or ExceededExpectations, 100% of our students identified as English Language Learners Met orExceeded Expectations in the area of MathematicsGrade 4Forty-four students took PARCC Assessment for both English Language Arts andMathematics. Thirty-nine students Met or Exceeded Expectations which is composed of88.6% of our students in the area of English Language Arts. 22 students ExceededExpectations, 17 students Met Expectations, 4 students were Approaching Expectations, 1student Partially Met Expectations and no student Did Not Yet Meet Expectations,respectively.-3-

24 students were Female and 20 students were Male in the Fourth Grade. 95.8% of theFemales in the Fourth Grade Met or Exceeded Expectations in English Language Arts while80% of the Males in the Fourth Grade Met or Exceeded Expectations in English LanguageArts. 94.6% of students who identify as Hispanic or Latino Met or Exceeded Expectations,87.5% of students who identify as Asian Met or Exceeded Expectations, 71.4% of studentswho identify as Black or African Americans Met or Exceeded Expectations, and 100% ofstudents who identify as White Met or Exceeded Expectations in the area of EnglishLanguage Arts.88% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 50% of our students with Individual Educational Plans Met or ExceededExpectations, 100% of students with 504 Plans Met or Exceeded Expectations, 0% of ourstudents identified as English Language Learners and Migrant students respectively Met orExceeded Expectations in the area of English Language Arts.Forty-four students took PARCC Assessment in Mathematics and 30 students Met orExceeded Expectations which is composed of 68.2%. 9 students Exceeded Expectations,21 Met Expectations, 8 Students were Approaching Expectations, 3 student Partially MetExpectations, and 3 students Did Not Yet Meet Expectations, respectively.24 students were Female and 20 students were Male in the Fourth Grade. 70.8% ofFemales in the Fourth Grade Met or Exceeded Expectations in Mathematics while 65% ofthe Males in the Fourth Grade Met or Exceeded Expectations in Mathematics. 68.4% ofstudents who identify as Hispanic or Latino Met or Exceeded Expectations, 81.3% ofstudents who identify as Asian Met or Exceeded Expectations, 42.9% of students whoidentify as Black or African Americans Met or Exceeded Expectations, and 50% of studentswho identify as White Met or Exceeded Expectations in the area of Mathematics.60% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 25% of our students with Individual Educational Plans Met or ExceededExpectations, 0% of students with 504 Plans Met or Exceeded Expectations, 100% of ourstudents identified as English Language Learners and Migrant students, respectively, Met orExceeded Expectations in the area of Mathematics.Grade 5Forty-nine students took PARCC Assessment for both English Language Arts andMathematics. Twenty-nine students Met or Exceeded Expectations which is composed of59.2% of our students in the area of English Language Arts. 8 students ExceededExpectations, 21 students Met Expectations, 17 students were Approaching Expectations, 3student Partially Met Expectations and no student Did Not Yet Meet Expectations,respectively.23 students were Female and 26 students were Male in the Fifth Grade. 78.3% of theFemales in the Fifth Grade Met or Exceeded Expectations in English Language Arts while42.3% of the Males in the Fifth Grade Met or Exceeded Expectations in English LanguageArts. 47.8% of students who identify as Hispanic or Latino Met or Exceeded Expectations,100% of students who identify as American Indian or Alaska Native Met or ExceededExpectations, 75% of students who identify as Asian Met or Exceeded Expectations, 50% ofstudents who identify as Black or African Americans Met or Exceeded Expectations, and66.7% of students who identify as White Met or Exceeded Expectations in the area ofEnglish Language Arts.-4-

54.3% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 0% of our students with Individual Educational Plans Met or ExceededExpectations, 0% of students with 504 Plans Met or Exceeded Expectations, 25% of ourstudents identified as English Language Learners Met or Exceeded Expectations in the areaof English Language Arts.Forty-nine students took PARCC Assessment in Mathematics and 22 students Met orExceeded Expectations which is composed of 44.9%. 5 students Exceeded Expectations,17 Met Expectations, 9 Students were Approaching Expectations, 13 student Partially MetExpectations, and 5 students Did Not Yet Meet Expectations, respectively.23 students were Female and 26 students were Male in the Fifth Grade. 34.8% of Femalesin the Fifth Grade Met or Exceeded Expectations in Mathematics while 53.8% of the Malesin the Fifth Grade Met or Exceeded Expectations in Mathematics. 30.4% of students whoidentify as Hispanic or Latino Met or Exceeded Expectations, 100% of students who identifyas American Indian or Alaska Native Met or Exceeded Expectations, 56.3% of students whoidentify as Asian Met or Exceeded Expectations, 33.3% of students who identify as Black orAfrican Americans Met or Exceeded Expectations, and 100% of students who identify asWhite Met or Exceeded Expectations in the area of Mathematics.37.1% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 0% of our students with Individual Educational Plans Met or ExceededExpectations, 0% of students with 504 Plans Met or Exceeded Expectations, 25% of ourstudents identified as English Language Learners Met or Exceeded Expectations in the areaof Mathematics.Grade 6Twenty-seven students took PARCC Assessment for both English Language Arts andMathematics. Twenty students Met or Exceeded Expectations which is composed of 74.1%of our students in the area of English Language Arts. 5 students Exceeded Expectations,15 students Met Expectations, 6 students were Approaching Expectations, no studentPartially Met Expectations and 1 student Did Not Yet Meet Expectations, respectively.13 students were Female and 14 students were Male in the Sixth Grade. 84.6% of theFemales in the Sixth Grade Met or Exceeded Expectations in English Language Arts while64.3% of the Males in the Sixth Grade Met or Exceeded Expectations in English LanguageArts. 86.7% of students who identify as Hispanic or Latino Met or Exceeded Expectations,75% of students who identify as Asian Met or Exceeded Expectations, 33.3% of studentswho identify as Black or African Americans Met or Exceeded Expectations, and 0% ofstudents who identify as White Met or Exceeded Expectations in the area of EnglishLanguage Arts.76.5% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 0% of students with 504 Plans Met or Exceeded Expectations, 50% of ourstudents identified as English Language Learners Met or Exceeded Expectations in the areaof English Language Arts.Twenty-seven students took PARCC Assessment in Mathematics and 11 students Met orExceeded Expectations which is composed of 40.7%. 2students Exceeded Expectations, 9Met Expectations, 9 Students were Approaching Expectations, 6 student Partially MetExpectations, and 1 student Did Not Yet Meet Expectations, respectively.-5-

13 students were Female and 24 students were Male in the Sixth Grade. 38.5% of Femalesin the Fourth Grade Met or Exceeded Expectations in Mathematics while 42.9% of theMales in the Fourth Grade Met or Exceeded Expectations in Mathematics. 40% of studentswho identify as Hispanic or Latino Met or Exceeded Expectations, 37.5% of students whoidentify as Asian Met or Exceeded Expectations, 66.7% of students who identify as Black orAfrican Americans Met or Exceeded Expectations, and 0% of students who identify as WhiteMet or Exceeded Expectations in the area of Mathematics.41.2% of our students identified as Economically Disadvantaged Met or ExceededExpectations, 0% of students with 504 Plans Met or Exceeded Expectations, 50% of ourstudents identified as English Language Learners Met or Exceeded Expectations in the areaof Mathematics.b. Dynamic Learning MAPSSeven students were administered Dynamic Learning Maps in the Self-Contained ResourceRoom Class. Three students are in the 3rd Grade, Two students in the 4th Grade, One inthe 5th Grade and One in the 6th Grade. In English Language Arts 28.5% of students are AtTarget, 14% of students are Approaching Target and 57% of students are Emerging. InMathematics, 14% of students are At Target, 43% are Approaching Target, and 43% ofstudents are Emerging. One student took the Science Portion of the DLM and has reachedthe Emerging Achievement Level.4. INTERNAL ACCOUNTING CONTROLS: Management of the Charter School is responsiblefor establishing and maintaining an internal control designed to ensure that the assets of theCharter School are protected from loss, theft or misuse and to ensure that adequateaccounting data are compiled to allow for the preparation of financial statements inconformity with generally accepted accounting principles (GAAP). Internal control isdesigned to provide reasonable, but not absolute, assurance that these objectives are met.The concept of reasonable assurance recognizes that: (1) the cost of a control should notexceed the benefits likely to be derived; and (2) the valuation of costs and benefits requiresestimates and judgments by management. As a recipient of federal and state financialassistance, the Charter School is responsible for ensuring that adequate internal controlsare in place to ensure compliance with applicable laws and regulations related to thoseprograms. Internal control is also subject to periodic evaluation by the Charter School’smanagement. As part of the Charter School’s single audit described earlier, tests are madeto determine the adequacy of internal controls, including that portion related to federal andstate financial assistance programs, as well as to determine that the Charter School hascomplied with applicable laws and regulations.5. BUDGETARY CONTROLS: In addition to internal accounting controls, the Charter Schoolmaintains budgetary controls. The objective of these budgetary controls is to ensurecompliance with legal provisions embodied in the annual appropriated budget approved bythe voters of the municipality. Annual appropriated budgets are adopted for the general fundand the special revenue fund. The final budget amount, as amended for the fiscal year, isreflected in the financial section. An encumbrance accounting system is used to recordoutstanding purchase commitments on a line item basis. Open encumbrances at year-endare either cancelled or are included as re-appropriations of fund balance in the subsequentyear. Those amounts to be re-appropriated are reported as reservations of fund balance atJune 30, 2020.-6-

6. CASH MANAGEMENT: The investment policy of the Charter School is guided in large partby state statute as detailed in “Notes to Financial Statements” Notes 1 and 3. The CharterSchool had adopted a cash management plan which requires it to deposit funds in publicdepositories protected from loss under the provisions of the Governmental Unit DepositProtection Act (“GUDPA”). GUDPA was enacted in 1970 to protect Government Units from aloss of funds on deposit with a failed banking institution in New Jersey. The law requiresgovernmental units to deposit public funds only in public depositories located in New Jersey,where the funds are secured in accordance with the Act.7. RISK MANAGEMENT: The Board carries various forms of insurance, including but notlimited to general liability, directors’ and officers’ insurance and workmen’s compensation.8. OTHER INFORMATION:Independent AuditState statute requires an annual audit by independent certified public accountants orregistered municipal accountants. The Charter School appointed the accounting firm ofGalleros Robinson CPAs, LLP. In addition to meeting the requirements set forth in statestatutes, the audit also was designed to meet the requirements of the New Jersey OMBLetter Circular Letter 15-08. The auditor’s report on the basic financial statements,combining and individual fund statements, and schedules are included in the financialsection of this report. The auditor’s reports related specifically to the single audit areincluded in the single audit section of this report.9. ACKNOWLEDGMENTS: We would like to express our appreciation to the members of theJersey City Global Charter School Board of Trustees for their concern in providing fiscalaccountability 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 anddedicated services of our financial, accounting an

The Business Administrator is the chief financial officer 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 of all Charter School funds, an