NCS Audited Financial Statements FY 15

NEWARK CHARTER SCHOOL
(A Component Unit of the State of Delaware)
NEWARK, DELAWARE
FINANCIAL STATEMENTS
JUNE 30, 2015

TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT
1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS
4- 12
BASIC FINANCIAL STATEMENTS

Entity-wide Financial Statements:
Statements of Net Position
13
Statement of Activities
14
Fund Financial Statements:

Balance Sheet- Governmental Funds
15
Reconciliation of Balance Sheet - Governmental Funds to

Statement of Net Position
16
Statement of Revenues, Expenditures, and Changes in

Fund Balances- Governmental Funds
17
Reconciliation of Statement of Revenues, Expenditures, and

Changes in Fund Balances- Governmental Funds to
Statement of Activities
18
Statements of Fiduciary Net Position- Agency Fund
19
Notes to Financial Statements
20-34
REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule - Governmental Funds
35
Schedule of Proportionate Share of Net Pension Liability and Contributions
36
SUPPLEMENTARY INFORMATION
Combining Balance Sheet - General Fund
37
Combining Statement of Revenues, Expenditures, and Changes in

Fund Balances - General Fund
38
Schedule of Expenditures by Natural Classification - Governmental Funds
39

TABLE OF CONTENTS
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
40 - 41
Barbacane, Thornton & Company LLP
INDEPENDENT AUDITOR'S REPORT
200 Springer Building

3411 Silverside Road
Wilmington, Delaware 19810
T 302.478.8940
F 302.468.4001
\V\.V"W.btcpa.com
September 24, 2015
Board of Directors
Newark Charter School
Newark, Delaware
Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major
fund of the Newark Charter School (the "School"), Newark, Delaware, a component unit of the State of
Delaware, as of and for the year ended June 30, 2015, and the related notes to the financial statements,
which collectively comprise the School's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the School's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting polices used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
- 1-
BARBAO\NE
1HORNIDN
&COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Newark Charter
School, Newark, Delaware, as of June 30, 2015, and the respective changes in financial position for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, Newark Charter School has adopted the requirements of
GASB Statement No. 68, ':Accounting and Financial Reporting for Pensions," and GASB Statement No. 71,
"Pension Transition for Contributions Made Subsequent to the Measurement Date- An Amendment of GASB
Statement No. 68 ." These statements modify the accounting for the School's pensions. Our opinion is not
modified with respect to this matter.
As discussed in Note 11 to the financial statements, the 2014 statements have been restated to correct an
error. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the Newark Charter School's 2014 financial statements, and we expressed
unmodified opinions on the respective financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information in our report dated August 26, 2014. In our opinion,
the summarized c omparative information presented herein as of and for the year ended June 30, 2014 is
consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplemental Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 4 through 12, the budgetary comparison schedule on page 35, and the
schedule of proportionate share of net pension liability and contributions on page 36 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic , or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
- 2-
Board of Directors
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Newark Charter School's basic financial statements. The combining balance sheet - general
fund, combining statement of revenues, expenditures, and changes in fund balances- general fund, and
schedule of expenditures by natural classification - governmental funds are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining balance sheet -general fund, combining statement of revenues, expenditures, and
changes in fund balances - general fund, and schedule of expenditures by natural classification governmental funds are the responsibility of management and were derived from and relate directly to
the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America . In our opinion, the combining
balance sheet - general fund, combining statement of revenues, expenditures, and changes in fund
balances- general fund, and schedule of expenditures by natural classification- governmental funds are
fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 24,
2015 on our consideration of the Newark Charter School's infernal c ontrol over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing , and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Newark Charter
Sc hool's infernal control over financial reporting and compliance.
;$~~~a.-r
BARBACANE ,
THO~NTON
LLP
& COMPANY LLP?
- 3-
MANAGEMENT'S DISCUSSION AND ANALYSIS

MANAGEMENrS DISCUSSION AND ANALYSIS- UNAUDITED
This discussion and analysis of the financial performance of the Newark Charter School (the "School")
provides on overview of the School's financial activities for the year ended June 30, 2015, which was
the School's fourteenth full year of operations, and also its twelfth year of operations in its 59,000
square foot facility located at 2001 Patriot Way in Newark. Please read it in conjunction with the
Independent Auditor's Report and the School's financial statements.
In FY 2008, the School opened a new K-4 73,000 square foot, three-story Elementary School, with 638
students to add to the Middle School for a total enrollment of 1,286 students. In FY 2011, the School
added two new Kindergarten classrooms to its enrollment, making total enrollment 1 ,338. In June
2012, the School purchased 20.41 acres and a 122,000 square foot warehouse to expand into a high
school. In FY 2015, the School added a tenth grade class for a total enrollment, Kindergarten through
tenth grade, of 1,948.
FINANCIAL HIGHLIGHTS
The School's net position increased by $1,638,819 or 30.3 percent, and totaled $7,051 ,162 as of June
30, 2015 .
The primary changes in the School's statement of net position compared to FY 2014 were an increase
in current assets; specifically, cash held at year end in the amount of $1 ,630 ,163, a decrease in
accounts payable in the amount of $86,034, and on increase in accrued salaries and other related
costs of $247,687 due to the increased staff to support the growth in enrollment. Most of the accrued
salaries and other employment costs relate to the fact that the School's teaching staff works on a 10month school year basis and is compensated over a full 12-month payment period, resulting in a twomonth "lag" accrual at June 30. In addition, the School's proportionate share of the net pension
liability decreased $2 ,489,954, or approximately 57.5 percent due to on overall dec rease in the
State's net pension liability across all reporting units.
Total revenues for the year (both general and program-related) increased by $2,916,485 , o r 14.0
percent in FY 2015, compared to FY 2014 . General revenues Increased by $2,291,585 during FY
2015, due primarily to an increase in enrollment from 1 ,760 students in FY 2014 to 1 ,948 students in FY
2015, and a continued increase in local revenues due to student enrollment growth. The School's
enrollment is at 1,948 students, whic h is within the five percent allowed by the Delaware Deportment
of Education over the School's enrollment per its charter. Charges for services increased by $95,281
to $248,139 as a result of growth in enrollment, and summer camp and other similar fees being
allocated as charges for services in the current year. Capital grants and contributions increased by
$446,305 to $704,000. In FY 2015, the School received a grant from the Longwood Foundation in the
amount of $500,000; a grant from the Welfare Foundation for $125,000; and from the Calder
Foundation in the amount of $79,000 to support the expansion of the science, technologies,
engineering, and moth (STEM) curriculum.
Total expenses for FY 2015 were $22 ,117,600, an increase of $1 ,944 ,769 or 9.6 percent, compared to
FY 2014. The source of the increase was additional staffing required to support the increased
enrollment, increased operating expenses related to utilities, etc. to support an additional class, and
increased transportation costs to support the additional students. Also, as the school is adding one
additional high school grade per year, there are additional purchasing needs to support the adding
of each grade for the next two years.
-4-

MANAGEMENT'S DISCUSSION AND ANALYSIS ~ UNAUDITED (CONT'D)
USING THIS ANNUAL FINANCIAL REPORT
This annual financial report consists of a series of financial statements and notes to those statements.
The statements are organized so that the reader can understand the School as a whole and then
proceed to provide an increasingly detailed look at specific financial activities.
REPORTING THE SCHOOL AS A WHOLE
The Statement of Net Position and Statement of Activities

One of the most important questions asked about School finances is, "Is the School better or worse off
as a result of the year's activities?" The statement of net position and the statement of activities report
information about the School as a whole and about its activities in a manner that helps to answer this
question. These statements include all assets and liabilities using the accrual basis of accounting
similar to the accounting used by private sector corporations. All of the current year's revenues and
expenses are taken into consideration regardless of when cash is received or paid.
These two statements report the School's net position and the changes in net position. The change in
net position provides the reader with a tool to assist in determining whether the School's financial
health is improving or deteriorating. The reader will need to consider other nonfinancia l factors such
as student enrollment stability and facility conditions in arriving at a conclusion regarding the overall
health of the School.
REPORTING THE SCHOOL'S MOST SIGNIFICANT FUNDS
Fund Financial Statements

This analysis of the School's major funds and fund financial statements provides detailed information
about the most significant funds - not the Sc hool as a whole . Some funds are required to be
established by State statute, while many other funds are established by the School to help manage
money for particular purposes and compliance with various grant provisions. The School's two types of
funds, governmental and fiduciary, use different accounting approaches as further desc ribed in the
Notes to the Financial Statements.
Governmental Funds
Most of the School's activities are reported in governmental funds, which focus on how money flows
into and out of those funds and the balances left at year end available for spending in future periods.
These funds are reported using the modified accrual accounting method, which measures cash and
other financial assets that can be readily converted to cash. The governmental fund statements
provide a detailed short-term view of the School's general government operations and the basic
services it provides. Governmental fund information helps one determine whether there are more or
fewer financial resources available to spend In the near future to finance the School's programs. The
relationship (or differences) between governmental activities (reported in the statement of net position
and the statement of activities) and governmental funds is reconciled in the basic financial
statements.
- 5-

MANAGEMENrS DISCUSSION AND ANALYSIS - UNAUDITED (CONrD)
Fiduciary Funds
The School is fiduciary for its student activity assets that. due to a fiduciary arrangement, can be used
only for student activities. All of the School's fiduciary activities are reported in a separate statement of
fiduciary net position. These activities are excluded from the School's other financial statements
because the assets cannot be utilized by the School to finance its operations.
ENTITY-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the School, assets exceeded liabilities by $7,051,162 at the close of the fiscal
year. Note that investment in capital assets is reported net of related debt and net of depreciation.
The School uses capital assets to provide services; consequently, these assets are not available for
future spending.
Table 1
NET POSITION
Governmental Activities
2015
2014
ASSETS
Current and other assets:
Cash and pooled cash
Receivables
Total Current and Other Assets
$13,978,782
76, 111
14,054,893
$12,350,659
79,672
12,430,331
Noncurrent assets:
Receivables
Land
Capital assets, net of depreciation
Due from State of Delaware
Total Noncurrent Assets
46,423
4,039,625
26,517,921
636,278
31,240,247
69,489
4,039,625
27,164,014
531,385
31,804,513
TOTAL ASSETS
45,295,140
44,234,844
DEFERRED OUTFLOWS OF RESOURCES

Deferred pension contributions
1,994,971
931 ,367
LIABILITIES
Current liabilities:
Accounts payable
Accrued salaries and related costs
Due to State of Delaware - pension costs
Accrued interest payable
Bonds payable (net)
Total Current Liabilities
55,831
2,186,990
422,168
500,892
648,104
3,813,985
141 ,865
1,939,303
364,967
507,881
318,104
3,272,120
Noncurrent liabilities:
Compensated absences
Bonds payable (net)
Net pension liability
Total Noncurrent Liabilities
978,890
30,688,813
1,837,362
33,505,065
817,515
31,336,917
4,327,316
36,481,748
TOTAL LIABILITIES
37,319,050
39,753,868
- 6-

MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED (CONT'D)
Table 1
NET POSITION (cont'd)
2015
2014
DEFERRED INFLOWS OF RESOURCES
2,919,899
Net Position:
Net investment in capital assets
Restricted
Unrestricted
(779,371)
3,617,199
4,213,334
(451,382)
2,994,239
2,869,486
$ 7,051,162
$ 5,412,343
TOTAL NET POSITION
A portion of the School's net position represents resources subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position may be used to meet the School's
ongoing activities.
The School is able to report positive balances in net position and fund balance for the government as
a whole and for its separate governmental funds, respectively.
Table 2
CHANGES IN NET POSITION
2015
2014
REVENUES
General revenues:
Charges to school districts
Payments from primary governm ent
Interest income
Miscellaneous
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
Total Revenues
EXPENSES
Instructional services
Support services:
Operation and maintenance of facilities
Transportation
Food service
Interest payments on long-term debt
Total Expenses
$ 7,023,382
$ 6,604,413
15,080,834
62,127
6,806
13,234,901
42,250
248 ,139
631 '131
704,000
23,756,419
152,858
547,817
257,695
20,839,934
17,261,450
15,412,800
1,524,719
1,451,649
361,443
1,518,339
22,117,600
1,630,315
1,306,360
280,337
1,543,019
20,172,831
$ 1,638,819
CHANGE IN NET POSITION
-7-
667,103

MANAGEMENt'S DISCUSSION AND ANALYSIS - UNAUDITED (CONT'D)
Net position of the School's governmental activities increased by $1,638,819, and unrestricted net
position reflects a positive balance of $4,213,334. The increase in net position is primarily the result of
an increase in enrollment as well as charges to school districts, and also to a significant decrease in
the School's proportionate share of the net pension liability as a result of the overall decrease in the
PERS net pension liability.
The statement of activities shows the cost of program services and the charges for services and grants
offsetting those services. The table below reflects the cost of program services and the net cost of
those services after taking into account the program revenues for governmental activities. General
revenues that include charges to school districts, investment earnings, and state entitlements must
support the net cost of the School's programs.
2015 Services
Governmental Activities:
Support services:
Transportation
Food service
Interest payments on long-term debt
TOTAL
2014 Services
Total Cost
Net Cost
Total Cost
Net Cost
$17,261,450
$16,002,640
$15,412,800
$14 ,699,318
1,524,719
1,451,649
361 ,443
1,518,339
1,514,519
1,451,649
56,183
1,518,339
1,630,315
1,306,360
280,337
1,543,019
1,630,315
1,306,360
35,449
1,543,019
$22,117,600
$20,543 ,330
$20,172,831
$19,214,46 1
The reliance on general revenues to support governmental activities is indicated by the net services
column reflecting the need for $20,543 ,330 of support, as well as general revenues comprising 93.3
percent of total revenues.
THE SCHOOL'S FUNDS
The School's governmental funds (as presented on the balance sheet) reported a combined fund
balance of $11,322,092, compared to last year's total of $9,906,971. The schedule below indicates
the fund balance and the total change in fund balances as of June 30, 2015 and 2014.
Fund Balances:
Restricted - debt service
Restricted - STEM grants
Unassigned - general fund
Governmental Funds
2015
2014
$ 2,992,199
$ 2,994,239
625,000
7,704,893
6,912,732
$ 11,322,092
$ 9,906,971
- 8-
Increase
{Decrease}
{2,040}
625,000
792,161
$ 1,415,121

MANAGEMENrS DISCUSSION AND ANALYSIS - UNAUDITED (CONT'D)
Governmental Funds
The School's fund balance increase is due to a variety of factors. The tables that follow assist in
illustrating the financial activities and balance of governmental funds.
Total Governmental Funds
2015
2014
REVENUES:
State aid
Federal aid
Food service
Interest income
Contributions
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Instruction
Transportation
Food service
Capital outlays :
Property and equipment
Debt service:
Principal
Interest
Financing costs
TOTAL EXPENDITURES
DEFICIENCY OF REVENUES UNDER
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES
$ 7,023,382
$ 6,604,413
14,975,941
476,999
184,179
62,127
890,611
70,766
23,684,005
13,139,450
493,055
152,858
42,250
301,109
54,762
20,787,897
17,467,869
731,488
1,451,649
367,269
15,204,641
850,777
1,306,360
280,337
407,177
846,081
315,000
1,516,163
12,269
22,268,884
305,000
1,530,888
15,235
20,339,319
1,415,121
448,578
1,841,200
{1,841,200}
1,965,443
{1 ,965,443}
NET CHANGE IN FUND BALANCES
1,415,121
448,578
FUND BALANCES, BEGINNING OF YEAR
9,906,971
9,458,393
$ 11,322,092
$ 9,906,971
FUND BALANCES, END OF YEAR
The School's revenues and other financing sources exceeded expenditures and other financing uses
for FY 2015 by $1 ,415,121 , resulting in an increase in fund balances.
- 9-
NEWARK CHARtER SCHOOL

MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED (CONrD)
GENERAL FUND AND DEBT SERVICE FUND BUDGET INFORMATION
The School's budget is prepared on the modified accrual basis of accounting. The most significant
budgeted funds are the governmental funds. The School may amend its revenue and expenditure
estimates periodically due to changing conditions. The original budget was amended during
October of fiscal year 2015, due primarily to the final changes in the governor's budget bill and the
final September 30 unit count.
The following are explanations for the more significant variances between budget versus actual
revenues and expenditures as shown on page 35.
Revenues
State Aid
A favorable variance of $366,567 is attributable primarily to conservative budgeting practices as well
as the receipt of $200K in adjustments to final State funding. Also, the School received an AP
Capstone Grant in the amount of $27K for implementing the AP Capstone diploma program .
Additionally, the School is very conservative on revenue estimates. According to Department of
Education guidelines, revenue estimates for budgeting purposes cannot exceed prior year actuels.
Federal Aid
An unfavorable variance of $12,001 is attributable primarily to the timing of required expenditures a nd
the School utilizing FY 2014 federal funds in FY 2015, as these funds have an 18-month spending
authority.
Food Service
A favorable varianc e of $10 ,659 is attributable to the fact that student participation in the food servic e
program was budgeted at 25 percent of total enrollment, but actual participation for the year was 26
percent.
Contributions
A favorable variance of $71 1.61 1 is attributable to two grants that were received in FY 201 5 from the
Longwood Foundation ($5001<) and the Welfare Foundation ($1251<) that were unbudgeted in FY 2015
totaling $625K. These grants are for the expansion of the STEM and Music and Arts program that are
planned in FY 2016. Additionally. the School received $79,000 from the Calder Foundation to support
the biotechnology c urriculum that was unbudgeted.
- 10 -

MANAGEMENTS DISCUSSION AND ANALYSIS - UNAUDITED (CONT'D)
Expenditures
Salaries
An unfavorable variance of $236,855 is a result of the addition of the employees required to support
the new student population, and that the budget was based on a cash basis of accounting and the
statements are prepared on a modified accrual basis of accounting.
Emplovment Costs
An unfavorable variance of $64,405 is a result of the addition of the employees required to support
the new student population, and that the budget was based on a cash basis of accounting and the
statements are prepared on a modified accrual basis of accounting.
Contractual Services
A favorable variance of $46,046 is a result of the School budgeting for some costs for legal expenses,
engineering, maintenance contracts, installation fees, etc. to support the School that were not
required.
Public Utilities
A favorable variance of $1 07,24 7 is a result of the School's budgeting for utility expense to double, as
the square footage of the new property is double that of the existing property. As the new property
was only partially occupied in FY 2015, the School had less usage of utilities than planned.
Repairs and Maintenance
A favorable variance of $27,567 is primarily a result of the School's custodial management team,
reviewing costs and contracts to secure services efficiently.
Supplies and Materials
An unfavorable variance of $104,337 is primarily a result of the School's advance purchasing of
supplies, materials, curriculum, and instructional materials in FY 2015 for FY 2016 to assist with the
adding of the eleventh grade class to the new high school building.
Equipment
A favorable equipment variance of $1 72,619 is primarily a result of the School's strong financial
management practices. Items required were purchased for less than was budgeted, or were
determined to not be required in this fiscal year.
- 11 -

MANAGEMENrS DISCUSSION AND ANALYSIS - UNAUDITED (CONrD)
CAPITAL ASSETS
The School has $30,557,546 in net investment in capital assets. Acquisitions for governmental
activities totaled $407,177, and depreciation was $1,053,270. Detailed information regarding capital
asset activity is included in Note 3 to the financial statements.
DEBT ADMINISTRATION
As of June 30, 2015, the School had total outstanding debt of $31,250,000 in the form of Revenue
Bond Issue Series of 2006 and Series of 2012 .
Other obligations include accrued vacation pay and sick leave for School employees. More detailed
information about long-term liabilities is included in Note 4 to the financial statements.
FACTORS EXPECTED TO HAVE AN EFFECT ON FUTURE OPERATIONS

Fiscal year 2015 was the fourteenth year of operation as a functioning school. The School's
enrollment is at 1,948 (within five percent of planned capacity) in FY 2015. The School will add
eleventh grade students in August 2015, adding to the existing Newark Charter High School. Larger
enrollment will result in an increase in state and local district revenues, as well as an increase in
operating expenses and debt service.
The financial model the School has developed is based on the funding formula currently in effect
under the Delaware Charter School Law. If the funding formula for charter sc hools changes,
adjustments to the underlying assumptions of the model will have to be made.
CONTACTING THE SCHOOL'S FINANCIAL MANAGEMENT

This financial report is designed to provide our fellow citizens. customers , investors, and creditors with a
general overview of the School's finances and to show the School's accountability for the money it
receives. If you have questions about this report or need additional financial information, please
contact the School office at (302) 369-2001 .
- 12-
BASIC FINANCIAL STATEMENTS

STATEMENTS OF NET POSITION
JUNE 30, 2015 AND 2014
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT ASSETS:
Cash and pooled cash - restricted
Accounts receivable
Pledges receivable
Total Current Assets
NONCURRENT ASSETS :
Pledges receivable
Land
Depreciable capital assets, net
Total Noncurrent Assets
2015
2014
$ 10,986,583
$ 9,356,420
2,992,199
8,299
67,812
14,054,893
2,994,239
2,447
77,225
12,430,331
46,423
4,039,625
26,517,921
636,278
31,240,247
69,489
4,039,625
27,164,014
531,385
31,804,513
1,994,971
931,367
$ 47,290,111
$45,166,211
DEFERRED OUTFLOWS OF RESOURCES

TOTAL ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES ,
AND NET POSITION
CURRENT LIABILITIES:
Accounts payable
Accrued salaries
Bond payable - net
Total Current Liabilities
NONCURRENT LIABILITIES:
Bond payable - net
Total Noncurrent Liabilities
TOTAL LIABILITIES
55,831
2,186,990
422,168
500,892
648,104
3,813,985
978,890
30,688,813
1,837,362
33,505,065
37,3 19,050
DEFERRED INFLOWS OF RESOURCES

2,919,899
NET POSITION:
Net investment in capital assets
Restricted
Unrestricted
Total Net Position
(779,371)
3,617,199
4,213,334
7,051,162
TOTAL LIABILITIES, DEFERRED INFLOWS OF

RESOURCES , AND NET POSITION
$47,290,111
The accompanying notes are an integral part of these financial statements.
- 13 -
141,865
1,939,303
364,967
507,881
318,104
3,272,120
817 ,515
3 1,336,917
4,327,316
36,481,748
39,753,868
(451 ,382)
2,994,239
2,869,486
5,412,343
$ 45,166,211
631,131
7,051 ,162
NET POSITION, END OF YEAR
5,412,343
7,023,382
15,080,834
6,806
62,127
22,173,149
(20,534,330)
(1 ,514,519)
(1 ,451 ,649)
(56,183)
(1 ,518,339)
$ (15,993,640)
NET POSITION, BEGINNING OF YEAR, RESTATED
704,000
704,000
1,638,819
- \4-
$ 5,412,343
__
4,745,240
667,103
42,250
19,881,564
6,604,413
13,234,901
( 19,214,461)
(1,630,31 5)
(1 ,306,360)
(35,449)
(1 ,543,019)
$ (14,699,318)
Net (Expense) Revenue and

Changes in Net Position
Totals
2014
2015
CHANGE IN NET POSITION
GENERAL REVENUES
Payments from primary government
Miscellaneous
Earnings on cash and investments
TOTAL GENERAL REVENUES
248,139
$ (22, 117,600)
$
510,050
121 ,081
53,760
10,200
184,179
(1 ,524 ,719)
(1 ,451 ,649)
(361 ,443)
(1 ,518,339)
$ (17,261 ,450)
Charges for
Services
The accompanying notes are an integral part of these finan cial statements.
TOTAL GOVERNMENTAL ACTIVITIES
GOVERNMENTAL ACTIVITIES
Support services:
Transportation
Food service
Interest and financing costs on long-term debt
Expenses
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2015
(With Summarized Comparative Data for the Year Ended June 30, 2014)
1,125,000
7,704,893
8,829,893
114,235
114,235
$1 1,609,117
- 15 -

RESOURCES, AND FUND BALANCES
FUND BALANCES :
Restricted
Unassigned
TOTAL FUND BALANCES
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - pledges
TOTAL DEFERRED INFLOWS OF RESOURCES
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued salaries
TOTAL LIABILITIES
2,492,199
2,492,199
$ 2,492,199
$ 2,492,199
$11,609,117
TOTAL ASSETS
55,831
2,186,990
422,168
2,664,989
2,492,199
$10,986,583
500,000
8,299
114,235
Debt Service
Fund
ASSETS
Accounts receivable
Pledges receivable
General
Fund

BALANCESHEET-GOVERNMENTALFUNDS
JUNE 30, 2015
(With Summarized Comparative Data for June 30, 2014)
3,617,199
7,704,893
11 ,322,092
114,235
114,235
55,831
2,186,990
422,168
2,664,989
$14,101,316
$14,101,316
$10,986,583
2,992,199
8,299
114,235
2015
Totals
9,906,971
6,912,732
2,994,239
146,714
146,714
141 ,865
1,939,303
364,967
2,446,135
$12.499,820
$ 12,499,820
$ 9,356,420
2,994,239
2,447
146,714
2014

RECONCILIATION OF BALANCE SHEET- GOVERNMENTAL FUNDS
TO STATEMENT OF NET POSITION
JUNE 30, 2015
TOTAL FUND BALANCES - GOVERNMENTAL FUNDS
$ 11 ,322,092
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in the governmental activities are not financial resources
and, therefore, are not reported in the funds. Capital assets net of accumulated
depreciation as detailed in the footnotes are included in the statement of net
position.
30,557,546
Some of the assets are not available to pay current expenditures and, therefore,
are not reported in the funds.
114,235
Long-term assets applicable to governmental activities are not due and receivable
in the current period and, therefore, are not reported as fund assets.
636,278
Some liabilities are not due and payable in the current period and, therefore, are
not reported in the funds. Those liabilities consist of:
Bond payable - net of deferred charges
(978,890)
(500,892)
(31 ,336,917)
(1 ,837,362)
(34,654,061)
Deferred inflows and outflows related to the School's net pension liability are based
on the differences between actuarially determined actual and expected investment
returns, changes in the actuarially determined proportion of the School's amount of
the total pension liability, and pension contributions made after the measurement
date of the net pension liability. These amounts will be amortized over the estimated
remaining average service life of the employees.
Deferred outflows - pension contributions
Deferred inflows
1,994,971
(2,919,899)
TOTAL NET POSITION- GOVERNMENTAL ACTIVITIES
- 16-
(924,928)
7,051,162
20,425,452
3,258,361
EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES
$ 2,492,199
7,412,732
$ 8,829,893
FUND BALANCES, BEGINNING OF YEAR
- 17 -
FUND BALANCES. END OF YEAR
2,494,239
1,417,161
(2,040)
1,841 ,200
1,841 ,200
{1,843,240~
315,000
1,516,1 63
12,269
1,843,432
192
192
( 1,841 ,200)
(1,841 ,200)
Debt Service
Fund
OTHER FINANCING SOURCES (USES)

Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
179,796
227,381
17,467,869
731,488
1,451,649
367,269
14,975,941
476,999
184,179
61,935
890,611
10,200
53,760
6,806
23,683,813
$ 7,023,382
EXPENDITURES
Current:
Instruction
Transportation
Food service
Capital outlays:
Property
Equipment
Debt service:
Principal
Interest
Financing costs
TOTAL EXPENDITURES
REVENUES
State aid
Federal aid
Food service
Contributions
Rentals
Summer school and camp fees
Miscellaneous revenue
TOTAL REVENUES
General
Fund
$ 11 ,322,092
9,906,971
1,415,121
1,841,200
( 1,841 ,200)
1,415,121
315,000
1,516,163
12,269
22,268,884
179,796
227,381
17,467,869
731,488
1,451 ,649
367,269
14,975,941
476,999
184,179
62,127
890,611
10,200
53,760
6,806
23,684,005
$ 7,023,382
2015
Totals

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2015
(With Summarized Comparative Data for the Year Ended June 30, 2014)
$ 9,906,971
9,458,393
448,578
1,965,443
(1,965,443)
448, 578
305,000
1,530,888
15,235
20,339,319
458,289
387,792
15,204,641
850,777
1,306,360
280,337
13,139,450
493,055
152,858
42,250
301,109
5,700
44,715
4,347
20,787,897
$ 6,604,413
2014

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES
NET CHANGE IN FUND BALANCES- TOTAL GOVERNMENTAL FUNDS
1,415,121
Amounts reported for governmental activities in the statement of activities are

different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, assets with an initial, individual cost of more than $1,000
are capitalized, and the cost is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which depreciation
exceeded capital outlays in the current period.
Capital outlays
Depreciation expense
407,177
(1 ,053,270)
(646,093)
Some revenues reported in the statement of activities are not available to

finance current expenditures and, therefore, are not reported as revenues in
the governmental funds.
72,414
Repayment of principal is an expenditure in the governmental funds but

reduces the liability in the statement of net position. Similarily, amortization
of premium reduces the liabilty in the statement of net position.
3,104
6,989
315,000
Amortization of premium on bonds

Accrued interest
Principal repayments
325,093
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in the
governmental funds:
(161 ,375)
Pension expenses in the statement of activities differ from the amount reported
in the governmental funds because pension expenses are recognized on the statement
of activities based on the organization's proportionate share of the expenses of the
cost-sharing pension plan, whereas pension expenditures are recognized in the
governmental funds when a requirement to remit contributions to the plan exists.
CHANGE IN NET POSITION- GOVERNMENTAL ACTIVITIES
- 18 -
633,659
1,638,819

STATEMENTS OF FIDUCIARY NET POSITION- AGENCY FUND
JUNE 30, 2015 AND 2014
Student Activities Fund

2015
2014
ASSETS:
Cash and cash equivalents
333,850
262,621
TOTAL ASSETS
333,850
262,621
333,850
333,850
262,621
262,621
333,850
262,621
LIABILITIES AND NET POSITION :

LIABILITIES
Other current liabilities
TOTAL LIABILITIES
NET POSITION
TOTAL LIABILITIES AND NET POSITION
- 19-

NOTES TO FINANCIAL STATEMENTS
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the Charter School
Newark Charter School is organized under Delaware Code, Title 14, Chapter 5 of the State of
Delaware. The Charter School Law grants authority for independent public schools to be created
for the purpose of increasing choices for parents of public school students and increasing
academic performance. A charter school is an independent public school governed by an
independent board of directors. In Delaware, charter schools have the same basic standing as
a school district with some exceptions- most notably, they may not levy taxes. To encourage
innovation, charter schools operate free from a number of state laws and regulations. Newark
Charter School's initial charter was granted for a three-year period, renewable every five years
thereafter.
Charter schools are funded similarly to other public schools in that state, and local funds are
allocated for each enrolled student. Public funds are not provided for facilities. Charter schools
may charge for selected additional costs consistent with those permitted by other school districts.
Because a charter school receives local , state, and federal funds, they may not charge tuition.
The financial statements of Newark Charter School have been prepared in conformity with
generally accepted accounting principles as applied to local governmental units. The
Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for
establishing governmental ac counting and financial reporting principles. The more significant
accounting policies of Newark Charter School (the "School") are described below.
Reporting Entity
The Sc hool is the primary government and is considered a component unit of the State of
Delaware. A component unit, although a legally separate entity, is, in substance, part of the
State of Delaware's operations. The School has no component units for which it is considered to
be financially accountable.
Entitv-wide and Fund Financial Statements
The entity-wide financial statements (the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the School. For the most part, the effect
of interfund activity has been removed from these financial statements.
The statement of activities demonstrates the degree to which the direct expenses of a g iven
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program. Program revenues include grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function.
Separate financial statements are provided for governmental funds. The major individual
governmental funds are reported as separate columns in the fund financial statements.
-20 -

NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

Measurement Focus. Basis of Accounting. and Financial Statement Presentation
Entity-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Charges to the School are recognized as revenues in the year
for which they are billed. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements ore reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of
the current period . For this purpose, the School considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures. as well as expenditures related to compensated absences, are recorded only
when payment is due.
Charges to the school districts. state appropriations. and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when the School receives cash.
The School reports the following major governmental funds:
General Fund. The general fund is the School's primary operating fund . It accounts for all
financial resources of the School, except those required to be accounted for in another
fund.
Debt Service Fund. These funds are maintained to accumulate resources for the payment
of interest and principal on long-term general obligation debt.
Additionally, the School reports the following fund type:
Student Activities Agency Fund (a fiduciary fund) . Accounts for assets held on behalf of
student groups.
Amounts reported as program revenues include 1) charges to students for special fees. supplies,
food . or services provided ; 2) operating grants and contributions; and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include charges to school districts.
- 21 -
3NEWARK CHARTER SCHOOL

NOTE 1

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either "due to/from other funds" (i.e., current portion)
or "advances from/to other funds" (i.e., the noncurrent portion). At June 30, 2015, the School had
no such activity.
Advances between funds, when present in the financial statements, are offset by fund balance
reserves in the applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources. At June 30, 2015, the
School had no such activity.
The School considers all accounts receivable at year end to be collectible; therefore, no
allowance for doubtful accounts has been recorded.
Pledges Receivable
The School recognizes pledges as support in the period in which the unconditional promise to
give is received. Management has calculated the present value of the noncurrent amount using
an interest rate of 3.85 percent.
The School estimates an allowance for doubtful accounts based on historical collection rates and
an analysis of the collectibility of individual receivables. The allowance for doubtful accounts for
pledges receivable was $0 at June 30, 2015 and 2014.
Capital Assets
Capital assets, which include land, buildings, and furniture and equipment, are reported in the
entity-wide financial statements. The School defines capital assets as assets with an initial,
individual cost of more than $1,000 and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated cost if purchased or constructed.
Donated capital assets are recorded at estimated fair value at the date of donation. The cost of
normal maintenance and repairs that do not add to the value of the asset or materially extend
lives of the assets are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Interest cost incurred during construction is capitalized.
Buildings and building improvements, and furniture and equipment of the School are
depreciated using the straight-line method over the estimated useful lives of the related assets.
The School generally uses the following estimated useful lives:
Land improvements
Buildings and building improvements
Furniture and fixtures
Equipment
10 years
40 years
3 years
5 years
-22-

NOTE 1

Compensated Absences
Vocation pay plus related payroll taxes ore accrued when incurred in the entity-wide financial
statements. The liability for these amounts is reported in the governmental funds only when the
liability matures, for example, as o result of employee resignations and retirements.
Vacation - Twelve-month employees con accumulate up to 42 days of vocation. Any days in
excess of 42 ore dropped as of July 1 of each year. Employees are paid for unused vocation
upon termination and retirement at the current rote of pay.
Sick Leave - Sick leave allowances ore as follows: teachers shall be allowed 10 days of sick
leave per year, and annual employees earn one day of sick leave for each month worked. Any
unused sick days shall be accumulated to the employee's credit up to o maximum of 90 days.
Compensation for accumulated sick days is received when employees (a) qualify and apply for
state pension and are paid at o rote of 50 percent of the per diem rote of pay not to exceed 90
days; or (b) in the case of death, when payment is mode to the employee's estate at a rote of
one day's pay for each day of unused sick leave not to exceed 90 days.
The compensated absences liability was $978,890 at June 30, 2015, of which $636,278 is
reimbursable from the State.
Fund Equity
Fund balance will be displayed in the following classification (if applicable) depicting the relative
strength of the spending constraints placed on the purposes for which resources con be used:
Nonspendable- amounts that cannot be spent either because they are in nonspendoble form or
because they ore legally or contractually required to be maintained intact.
Restricted - amounts that con be spent only for specific purposes because of constitutional
provisions or enabling legislation or because of constraints that ore externally imposed by
creditors, grantors, contributors, or the lows or regulations of other governments.
Committed- amounts that con be used only for specific purposes determined by formal action
of the Boord of Directors. The Board is the highest level of decision-making authority for Newark
Charter School. Commitments may be established, modified, or rescinded only through
resolutions approved by the Boord of Directors.
Assigned - amounts that do not meet the criteria to be classified as restricted or committed but
that ore intended to be used for specific purposes. The School Director may assign amounts for
specific purposes.
Unassigned - all other spendable amounts.
-23-

NOTE 1

When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the School considers restricted funds to have been spent first. When an
expenditure is incurred for which committed, assigned, or unassigned fund balances are
available, the School considers amounts to have been spent first out of committed funds, then
assigned funds, and finally, unassigned funds, as needed, unless the Board has provided
otherwise in its commitment or assignment actions.
Restricted Net Position
Restricted net position is comprised of assets, net of related liabilities, that are required to be set
aside for debt service payments and capital projects. When both restricted and unrestricted
resources are available for use, it is the School's policy to use restricted resources first and then
unrestricted resources as they are needed.
Implementation of GASB Statements
During the year ended June 30, 2015, the School implemented GASB Statement No. 68,
':Accounting and Financial Reporting for Pensions," and GASB Statement No. 71, "Pension
Transition for Contributions Made Subsequent to the Measurement Date." GASB Statement No. 68
replaces the requirements of GASB Statement No. 2 7, with the objective of improving the
accounting and financial reporting of state and local governments for pensions. It requires that
state and local governments recognize and record the actuarially determined net pension
liability, or, for multi-employer cost sharing plans, the entity's share of the net pension liability, in
the entity's financial statements.
GASB Statement No. 71 amends GASB Statement No. 68 and addresses an issue regarding
application of the transition provisions in the year of implementation. It requires that in the year of
implementation, the state or local government recognize a beginning deferred outflow of
contributions for its pension contributions made after the date of measurement.
Deferred Inflows/Outflows of Resources
In addition to assets, the statement of net position includes a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to future periods and so will not be
recognized as an outflow of resources (expense) until then. The School reports deferred pension
contributions resulting from pension contributions subsequent to the measurement date of the net
pension liability and certain other items which represent d ifferences related to changes in the net
pension liability which will be amortized over future periods. In addition to liabilities, the
statement of net position includes a separate section for deferred inflows of resources. This
separate financial statement element represents a source of net position that applies to future
periods. The School reports certain items which represent differences related to changes in the
net pension liability with will be amortized over future periods.
- 24-

NOTE 1

Use of Estimates in the Preparation of Financial Statements
The preparation of basic financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from
those estimates.
Comparative Data
Comparative total data for the prior year is presented in the basic financial statements to provide
an understanding of changes in the School's financial position and operations. That comparative
data is not at the level of detail required for a presentation in conformity with generally accepted
accounting principles and has been restated and reclassified, as needed, from the presentation
in the School's June 30, 2014 basic financial statements to be comparative with the current year
presentation.
NOTE 2
CASH AND POOLED CASH

At June 30, 2015, the School had a cash and pooled cash balance of $14,312,632. Of that
amount, $11 ,796,460 was part of an investment pool controlled by the personnel of the State
Treasurer's Office in Dover, Delaware, and all investment decisions are made by the State
Treasurer's Office. These funds are considered to be highly liquid and available for immediate
use and, thus, are recorded as pooled cash in these financial statements.
The funds held by the State of Delaware investment pool, an internal investment pool, are
specifically identified for the School, but the credit risk cannot be categorized for these funds.
Credit risk for such investments depends on the financial stability of the State of Delaware. The
State reports that its investment securities are stated at quoted market prices, except that
investment securities with a remaining maturity at time of purchase of one year or less are stated
at cost or amortized cost.
At June 30, 2015, the reported amount of the School's deposits outside of the State Treasurer's
Office was $2,516,172. The bank balance at June 30, 2015 was $2,516,172, of which $273,973
was covered by federal depository insurance and $2,242,199 was not insured or collateralized
and, therefore, was subject to custodial credit risk.
According to the trust indenture and bond agreement with Wells Fargo, the School is required to
set up a debt service reserve fund for $2,486,146 in case of default. As of June 30, 2015, the
balance of this debt service reserve fund was $2,492,199. In addition, the School has another
$500,000 in restricted cash for debt service for a total of $2,992,199, all of which was restricted
for debt service.
-25-

NOTE 3
CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2015 is as follows:
Beginning
Balances
Increases
Decreases
Ending
Balances
General capital assets not
being depreciated:
land
Total general capital assets
not being depreciated
$ 4,039,625
4,039,625
$ 4,039,625
4,039,625
General capital assets being

depreciated:
land improvements
Buildings/building improvements
Furniture and equipment
being depreciated
179,255
30,464,479
1.481,208
122,646
57,150
227,381
301 ,901
30,521,629
1,708,589
32,124,942
407,177
32,532,119
Accumulated depreciation
(4,960,928)
(1 ,053,270)
(6,014,198)

being depreciated, net
27,164,014
(646,093)
26,517,921
$ 31 ,203 ,639
(646,093)
$ 30,557,546
Governmental Activities, Net
Depreciation expense was charged to the following governmental activities:

$ 260,039
793 ,231
$ 1,053,270
NOTE 4
LONG-TERM DEBT
Wells Fargo Bond
Revenue Bonds, Series of 2006, 4 .000% to 5.000%, October 31, 2006
to December 31 , 2036. The purpose of this issue was to provide
funding for capital projects.
Revenue Bonds, Series of 2012 , 3 .8 75% to 5.000%, September 1, 2015
to September 1, 2042 . The purpose of this issue was to provide funding
for renovations and a land and building purchase.
TOTAL BONDS
-26-
$12,955,000
18.295.000
$31,250.000

NOTE 4
LONG TERM DEBT (cont'd)

The total principal and interest maturities are as follows:
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
2031 - 2035
2036-2040
2041 -2043
Total
Interest
Principal
Year Ending June 30,

$
645,000
675,000
700,000
735,000
770,000
4,410,000
5,595,000
7,130,000
6,000,000
4,590,000
Total
1,494,720
1,466,147
1,435,922
1,403,900
1,370,297
6,283,796
5,097,009
3,563,138
1,780,750
427,250
$ 24,322 ,929
$ 31,250,000
2,139,720
2,141,147
2,135,922
2,138 ,900
2,140,297
10,693,796
10,692,009
10,693,138
7,780,750
5,017,250
$ 55,572 ,929
Interest expense was $1,516,163 for the year ended June 30, 2015.
A schedule of changes in debt is as follows:
Amounts
Outstanding
Amounts
Outstanding
Additions
7Lll2014
Bonds payable
Bonds Premium
Total Governmental
Activities
NOTE 5
$31 ,565 ,000

90 ,021
31,655,021
817 ,515
$32,472,536
$ 161 ,375
Due Within
One Year
Retirements
6[30[ 2015
$ (315 ,000)
[3,104)
(318,1 04)
$31 ,250,000
86 917
31,336,917
978,890
645,000
3 104
648 ,104
$ (318,104)
$32,315,807
648,104
161,375
PENSION PLAN
Plan Descri1;2tion
School employees are considered state employees and are covered under the State of Delaware
Employees' Pension Plan (the "Plan"), which is a cost-sharing, multiple-employer defined benefit
public employees' retirement system (the "State PERS") defined by the Delaware Code.
The State of Delaware General Assembly is responsible for setting benefits and contributions, and
amending plan provisions; administrative rules and regulations are adopted and maintained by
the Board of Pension Trustees (the "Board").
The following are brief descriptions of the Plan in effect as of June 30, 2014. For a more
complete description, please refer to the Delaware Employees' Pension Plan Comprehensive
Annual Financial Report. Separately issued financial statements for the Plan may be obtained by
-27-

NOTE 5
PENSION PLAN (cont'd)

writing to the State of Delaware Public Employee Retirement System, McArdle Building, Suite 1,
860 Silver Lake Boulevard, Dover, DE 19904; by calling 1-800-722-7300; or by visiting the PERS
website at www.delawarepensions.com.
Plan Description and Eligibility
The State Employees' Pension Plan covers virtually all full-time or regular part-time employees of
the State, including employees of other affiliated entities.
There are two tiers within this plan : 1) employees hired prior to January 1, 2012 , and 2)
employees hired on or after January 1, 2012.
Benefits Provided
Service Benefits
Final average monthly compensation (employees hired on or after January 1, 2012 may not
include overtime in pension compensation) multiplied by 2.0 percent and multiplied by years of
credited service prior to January 1, 1997, plus final average monthly compensation multiplied by
1.85 percent and multiplied by years of credited service after December 31 , 1996, subject to
minimum limitations. For this plan, final average monthly compensation is the monthly average
of the highest three periods of twelve consecutive months of compensation.
Vesting
Employees hired before January 1, 2012 vest in the plan after five years of credited service.
Employees hired on or after January 1, 2012 vest in the plan after ten years of credited service.
Retirement
Employees hired before January 1, 2012 may retire at age 62 with five years of credited service;
at age 60 with 15 years of credited service; or after 30 years of credited service at any age .
Employees hired on or after January 1, 2012 may retire at age 65 with at least 10 years of
credited service; at age 60 with 20 years of credited service; or after 30 years of credited service
at any age.
Disability Benefits
Disability benefits for those employees hired before January 1, 2012 are offered using the same
calculations as the Service Benefits described above. Employees in this program must have five
years of credited service. In lieu of disability pension benefits, over 90 percent of the members of
this plan opted into a Disability Insurance Program offered by the State effective January 1, 2006.
Employees hired on or after January 1, 2012 are also included in the Disability Insurance
Program.
- 28 -

NOTE 5

Survivor and Burial Benefits
In the event of the death of a member of the Plan, the eligible survivor receives 50 percent of the
benefits received under the pension (or 75 percent with a three percent reduction of the benefit).
If the employee is an active member of the Plan with at least five years of credited service, the
eligible survivor receives 75 percent of the benefit the active employee would have received at
age 62 .
Burial benefits are established at $7,000 per plan member.
Contributions
Member Contributions
Employees hired before January 1, 2012 contribute three percent of earnings in excess of $6,000.
Employees hired on or after January 1, 2012 contribute five percent of earnings in excess of
$6,000.
Employer Contributions
Employer contributions are determined by the Board of Pension Trustees. For the year ended
June 30, 2015, the rate of the employer contribution was 9.56 percent of covered payroll. The
School'scontribution toPERS for the years ended June 30, 2015, 2014, and 2013 was $1,048 ,976,
$931,368, and $628,286, respectively.
PRI Contribution
All reporting units participating in the State PERS make c ontributions to a PRI fund which
accumulates resources to fund ad hoc post-retirement increases granted by the General
Assembly. The increases are funded over a five-year period from the PRI fund . The allocation of
the contribution from the PRI fund to the Pension Trust is a reduction of the net pension liability of
each participating employer.
Pension Liability and Expense. and Deferred Outflows and Inflows of Resources
At June 30, 2015, the School reported a liability of $1 ,83 7,362 for its proportionate share of the
net pension liability. The net pension liability was measured as of June 30, 2014, and the total
pension liability used to calculate the net pension liability was determined by rolling forward the
Plan's total pension liability as of June 30, 2013 to June 30, 2014. The School's proportion of the
net pension liability was calculated utilizing the employer's one-year reported covered payroll as
it relates to the total one-year reported covered payroll . At June 30, 2014, the School's
proportion was 0.4990 percent, which was an increase of 0.0994 percent from its proportion
measured as of June 30, 2013.
- 29-

NOTE 5

For the year ended June 30, 2015, the School recognized a net negative pension expense of
$633,659. At June 30, 2015, the School reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Net difference between projected and
actual investment earnings
Changes in proportions
Difference between employer contributions
and proportionate share of total contributions
Contributions subsequent to the date of
measurement
Deferred
Inflows of
Resources
$2,919,899
896,982
49,013
1,048,976
$ 1,994,971
$2,919,899
An amount of $1,048 ,976 is reported as deferred outflows of resources resulting from the School's
contributions subsequent to the measurement date and will be recognized as a reduction of the
net pension liability in the year ended June 30, 2016. Other amounts will be reported as deferred
outflows of resources and deferred inflows of resources related to pensions, and will be
recognized in pension expense as follows:
2016
2017
2018
2019
2020
$ 540,776
540,776
540,775
540,775
(189, 198)
$ 1,973,904
Actuarial Assumptions
The total pension liability as of June 30, 2014 measurement date was determined by an actuarial
valuation as of June 30, 2013, and update procedures were used to roll forward the total pension
liability to June 30, 2014. These actuarial valuations used the following actuarial assumptions,
applied to all periods:
Investment return - 7.2 percent, including inflation of 3.0 percent

Salary increases - 3.5 percent to 11.5 percent, including inflation of 3.0 percent
Cost-of-living adjustments - ad hoc
- 30-

NOTE 5

The total pension liabilities are measured based on the assumptions pertaining to interest rates,
inflation rates, and employee demographic behavior in future years. The assumptions used were
based on the results of an actuarial experience study conducted in 2011 . It is likely that future
experience will not exactly conform to these assumptions. To the extent that actual experience
deviates from these assumptions, the emerging liabilities may be higher or lower than
anticipated. The more the actual experience deviates, the larger the impact on future financial
statements.
Mortality rates were based on the Sex Distinct RP-2000 combined Mortality Table projected to
2015 using scale AA for Males or Females, as appropriate, for mortality improvement.
Projected benefit payments do not include the effects of projected ad hoc cost-of-living
adjustments ("ad hoc COLAs"), as they are not substantively automatic. The primary
considerations relevant to making this determination include the historical patterns of granting the
changes and the consistency in the amounts of the changes.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by an asset allocation percentage, which is
based on the nature and mix of current and expected plan investments, and by adding
expected inflation. Best estimates of geometric real rates of return for each major asset class
included in the Plan are summarized in the following table:
Long-term
Expected Real
Rate of Return
Asset Class
5.7%
5.7%
2.0%
7.8%
0.0%
Domestic equity
International equity
Fixed income
Alternative investments
Cash and equivalents
Due to the fact that Plan assets are commingled with other State funds for investment purposes, a
target allocation of each asset class specific to the Plan is not available. However, assets of the
Plan may be used only for the payment of benefits to the members of the Plan.
Discount Rate
The discount used to measure the total pension liability was 7.2 percent. The projection of cash
flows used to determine the discount rate assumed that contributions from p lan members will be
made at the current contribution rate and that contributions from employers will be made at rates
- 31 -

NOTE 5

determined by the Board of Pension Trustees, as actuarially determined. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Sensitivity of the School's Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the net pension liability, calculated using the discount rate of 7.2 percent,
as well as what the net pension liability would be if it were calculated using a discount rate that is
one percentage point lower (6.2 percent), or one percentage point higher (8.2 percent) than the
current rate.
School's proportionate share of

the net pension liability
1%
Decrease
6.2%
Current Rate
Discount Rate
7.2%
1%
Increase
8.2%
$ 6,885,975
$ 1,837,362
$ (2,429,676)
Pension Plan Fiduciary Net Position

Detailed information about PERS' fiduciary net position is available in PERS Comprehensive Annual
Financial Report, which can be found on the Plan's website at www.delawarepensions.com.
NOTE 6
LEASING ARRANGEMENTS
Operating Lease
The School leases its copier equipment under a number of operating lease arrangements with
expiration dates through March 2 01 8 . Total rental expense for the year ended June 30, 2015
was $41,331.
At June 30, 2015, the m1n1mum future rental payments under noncancelable leasing
arrangements for the remaining period and in the aggregate are as follows:
2016
2017
2018
Minimum future rental payments required
- 32-
44 ,162
2,261
1,070
47,493

NOTE 7
RISK MANAGEMENT
The School has purchased commercial insurance policies for various risks of loss related to torts:
theft, damage, or destruction of assets: errors or omissions: injuries to employees; or acts of God.
Payments of premiums for these policies are recorded as expenses of the School. Insurance
settlements have not exceeded insurance coverage in any of the past two years. There were no
significant reductions in coverage compared to the prior year.
NOTE 8
COMMITMENTS AND CONTINGENCIES

In the normal course of business, there are various outstanding commitments and contingent
liabilities in addition to the normal encumbrances for the purchase of goods and services. The
School does not anticipate losses from these transactions.
The School receives significant financial assistance from federal agencies in the form of grants.
The disbursement of funds received under these programs generally requires compliance with
terms and conditions specified in the grant agreements and is subject to audit by the State Office
of Auditor of Accounts. Any disallowed claims resulting from such audits could become a liability
of the general fund. The School's administration believes such disallowance, if any, would be
immaterial.
NOTE 9
FUND BALANCES
As of June 30, 2015, fund balances are composed of the following:
Debt Service
Fund
General
Fund
Restricted:
Debt service
STEM grants
Unassigned
Total Fund Balances
NOTE 10
Total
Governmental
Funds
500,000
625,000
7,704,893
2,492,199
8,829,893
2,492,199
$ 11 ,322,092
EXCESS EXPENDITURES OVER APPROPRIATIONS

The School overspent budgetary appropriations in the following categories:
Salaries
Employment costs
Travel
Insurance
Capital outlays - equipment
$
$
$
$
-33-
236,855
64,405
2,296
1,084
104,337
2,992 ,199
625,000
7,704,893

NOTE 10
EXCESS EXPENDITURES OVER APPROPRIATIONS (cont'd)

The excess expenditures were covered by the School's revenues exceeding the budget.
NOTE 11
PRIOR PERIOD RESTATEMENT

During the year, the School discovered on error in recording the interest expense on its long-term
debt obligations. Prior year liabilities were understated by the accrued interest amount of
$507,881 . This error resulted in a decrease in the July 1, 2014 beginning net position of the
governmental activities.
In addition, the School has decreased its July 1, 2014 net position by $3,395,949 due to the
effects of implementing GASB Statement No. 68, "Accounting and Financial Reporting for
Pensions," and GASB Statement No. 71, "Pension Transition for Contributions Made Subsequent to
the Measurement Dote- An Amendment of GASB Statement No. 68." The School recorded a
beginning deferred outflow for pension contributions of $931,367 and a beginning net pension
liability of $4,327,316.
NOTE 12
SUBSEQUENT EVENTS
The School has evaluated all subsequent events through September 24, 2015, the date the
financial statements were available to be issued.
- 34 -

BUDGETARY COMPARISON SCHEDULE- GOVERNMENTAL FUNDS
Bud~eted
Ori9inal
REVENUES
State aid
Federal aid
Food service
Contributions
Rentals
TOTAL REVENUES
EXPENDITURES
Current:
Salaries
Employment costs
Travel
Contractual services
Communications
Public utilities service
Insurance
Transportation - buses
Repairs and maintenance
Supplies and materials
Capital outlays:
Property
Equipment
Debt service:
Principal
Interest
Financing costs
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Amounts
Final
Actual
Amounts
$ 6,885,000
$ 7,022,000
$ 7,023,382
14,188,000
489,000
204,840
50,000
100,000
14,609,374
489,000
173,520
50,000
179,000
55,000
55,000
21 ,971,840
22 ,577,894
14,975,941
476,999
184,179
62,127
890,611
10,200
53,760
6,806
23,684,005
1,382
366,567
(12,001)
10,659
12,127
711,611
10,200
(1 ,240)
6,806
1 '106,111
10,995,331
4,948,600
5,000
512,500
30,000
540,000
50,000
1,504,046
309,500
948,700
10,981,789
4,899,681
5,000
609,500
35,000
445,000
45,000
1,452,336
309,500
1,008,375
11,218,644
4,964,086
7,296
563,454
34,664
337,753
46,084
1,451 ,649
281,933
1,112,712
(236,855)
(64,405)
(2,296)
46,046
336
107,247
(1,084)
687
27,567
(104,337)
111 ,500
440,000
182,500
400,000
179,796
227,381
2,704
172,619
315,000
1,516,163
15,000
22,241 ,340
315,000
1,516,163
15,000
22,219,844
315,000
1,516,163
12,269
22,268,884
2,731
(49,040)
358,050
1,415,121
1,057,071
1,841,200
~1 ,841 ,200}
1,841,200
p,841,200}
358,050
1,415,121
1,057,071
9,906,971
9,906,971
9,906,971
$ 9,637,471
$ 10,265,021
$ 11,322,092
~269,500}
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
Variance with
Final Budget
Positive
(Negative)
(269,500)
NOTE: The School's budget is presented on the modified accrual basis of accounting.
-35-
$ 1,057,071

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION
LIABILITY AND CONTRIBUTIONS
PROPORTIONATE SHARE OF NET PENSION LIABILITY
JUNE 30, 2015
School's proportion of the net pension liability
0.4990%
School's proportion of the net pension liabilitydollar value
$ 1,837,362
School's covered employee payroll
$ 9,742,338
School's proportionate share of the net pension

liability as a percentage of its covered
employee payroll
18.86%
Plan fiduciary net position as a percentage

of the total pension liability
95.80%
CONTRIBUTIONS
Contractually required contribution
Contributions in relation to the contractually

required contribution
872,551
931,368
Contribution excess
School's covered employee payroll
$ 9,742,338
Contributions as a percentage of
covered-employee payroll
(58,817)
9.56%
In accordance with GASB Statement No. 68, this schedule has been prepared prospectively as the above
information for the preceding years is not readily available. This schedule will accumulate each year until
sufficient information to present a ten-year trend is available.
-36-
SUPPLEMENTARY INFORMATION

COMBINING BALANCE SHEET - GENERAL FUND
JUNE 30, 2015
Local
Fundin9
State
Allocation
ASSETS
Accounts receivable
Pledges receivable
19
TOTAL ASSETS
19
LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued salaries
TOTAL LIABILITIES
49,102
49,102
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue - pledges
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES (DEFICIT):
Restricted
Unassigned (Deficit)
TOTAL FUND BALANCES (DEFICIT)
RES OURCES, AND FUND BALANCES
(49,083)
(49,083)
19
- 37 -
Federal
Funding
Total
$10,986,564
500,000
5,299
114,235
$11 ,606,098
3,000
$11,609,117
3,729
2,186,990
422,168
2,612,887
3,000
3,000
3,000
$10,986,583
500,000
8,299
114,235
55,831
2,186,990
422,168
2,664,989
114,235
114,235
114,235
114,235
1,125,000
7,753,976
8,878,976
1,125,000
7,704,893
8,829,893
$11 ,606,098
3,000
$11 ,609,117

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - GENERAL FUND
State
Allocation
REVENUES
State aid
Federal aid
Food service
Contributions
Rentals
TOTAL REVENUES
Local
Fundin!
$ 7,023,382
Federal
Fundin!
$ 7,023,382
14,975,941
476,999
EXPENDITURES
Current:
Instruction
Transportation
Food service
Capital outlays:
Property
Equipment
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
EXPENDITURES
14,975,941
184,179
61,935
890,611
10,200
53,760
6,806
8,230,873
14,273,533
618,789
25,801
53, 197
2,871,168
112,699
1,425,848
192,991
22,182
14,993,502
179,796
172,449
4,954,951
(17,561)
OTHER FINANCING SOURCES (USES)

Transfers in
Transfers out
TOTAL OTHER FINANCING USES
Total
476,999
323,168
14,975,941
476,999
184,179
61,935
890,611
10,200
53,760
6,806
23,683,813
121,081
17,467,869
731,488
1,451 ,649
367,269
32,750
476,999
179,796
227,381
20,425,452
3,275,922
3,258,361
(1 ,841,200)
(1 ,841 ,200)
{1,841,200)
(1 ,841 ,200)
(17,561)
1,434,722
1,417, 161
FUND BALANCES (DEFICIT), BEGINNING

OF YEAR
(31 ,522~
7,444,254
7,412,732
{49,083}
$ 8,878,976
FUND BALANCES (DEFICIT), END OF YEAR
- 38 -
$ 8,829,893

SCHEDULE OF EXPENDITURES BY NATURAL CLASSIFICATION- GOVERNMENTAL FUNDS
EXPENDITURES
Current:
Salaries
Employment costs
. Travel
Contractual services
Communications
Public utilities service
Insurance
Transportation - buses
Repairs and maintenance
Supplies and materials
Capital outlays:
Property
Equipment
Debt service:
Principal
Interest
Financing costs
11,218,644
4,964,086
7,296
563,454
34,664
337,753
46,084
1,451,649
281,933
1,112,712
179,796
227,381
315,000
1,516,163
12,269
TOTAL EXPENDITURES
-39 -
22,268,884
Barbacane, Thornton & Company LLP
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
200 Springer Building

3411 Silverside Road
Wilmington, Delaware 198 10
T 302.4 78.8940
F 302.468.4001
www.btcpa.com
September 24, 2015
Board of Directors
Newark, Delaware
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 the governmental
activities and each major fund of the Newark Charter School, (the "School") Newark, Delaware, as of and
for the year ended June 30, 2015, and the related notes to the financial statements, which collectively
comprise the Newark Charter School's basic financial statements, and have issued our report thereon
dated September 24, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Newark Charter
School's internal control over financial reporting ("internal control") to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Newark Charter
School's internal control. Accordingly, we do not express an opinion on the effectiveness of the Newark
Charter School's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the School's financial statements will not be prevented, or detected and corrected, on a
timely basis . A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
-40 -
BARBAO\NE
lHORNION
&COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Newark Charter School's financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the School's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing standards in considering the School's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
/J~~~~7
BARBACANE ,
THO~NTON
LLP
& COMPANY LLP?
- 41 -

NCS Audited Financial Statements FY 15

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NEWARK CHARTER SCHOOL

(A Component Unit of the State of Delaware)

NEWARK CHARTER SCHOOL

INDEPENDENT AUDITOR'S REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

Fund Financial Statements:

Reconciliation of Balance Sheet - Governmental Funds to

Statement of Revenues, Expenditures, and Changes in

Reconciliation of Statement of Revenues, Expenditures, and

Statements of Fiduciary Net Position- Agency Fund

Notes to Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Proportionate Share of Net Pension Liability and Contributions

Combining Statement of Revenues, Expenditures, and Changes in

Schedule of Expenditures by Natural Classification - Governmental Funds

NEWARK CHARTER SCHOOL

Independent Auditor's Report on Internal Control Over

Barbacane, Thornton & Company LLP

INDEPENDENT AUDITOR'S REPORT

200 Springer Building

September 24, 2015

Report on the Financial Statements

& COMPANY LLP?

MANAGEMENT'S DISCUSSION AND ANALYSIS

NEWARK CHARTER SCHOOL

NEWARK CHARTER SCHOOL

USING THIS ANNUAL FINANCIAL REPORT

The Statement of Net Position and Statement of Activities

Fund Financial Statements

NEWARK CHARTER SCHOOL

DEFERRED OUTFLOWS OF RESOURCES

NEWARK CHARTER SCHOOL

TOTAL NET POSITION

CHANGE IN NET POSITION

NEWARK CHARTER SCHOOL

NEWARK CHARTER SCHOOL

NET CHANGE IN FUND BALANCES

FUND BALANCES, BEGINNING OF YEAR

FUND BALANCES, END OF YEAR

NEWARK CHARtER SCHOOL

GENERAL FUND AND DEBT SERVICE FUND BUDGET INFORMATION

NEWARK CHARTER SCHOOL

NEWARK CHARTER SCHOOL

FACTORS EXPECTED TO HAVE AN EFFECT ON FUTURE OPERATIONS

CONTACTING THE SCHOOL'S FINANCIAL MANAGEMENT

BASIC FINANCIAL STATEMENTS

NEWARK CHARTER SCHOOL

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES

TOTAL LIABILITIES, DEFERRED INFLOWS OF

The accompanying notes are an integral part of these financial statements.

NET POSITION, END OF YEAR

NET POSITION, BEGINNING OF YEAR, RESTATED

Net (Expense) Revenue and

CHANGE IN NET POSITION

TOTAL GOVERNMENTAL ACTIVITIES

NEWARK CHARTER SCHOOL

The accompanying notes are an integral part of these financial statements.

TOTAL LIABILITIES, DEFERRED INFLOWS OF

DEFERRED INFLOWS OF RESOURCES:

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

NEWARK CHARTER SCHOOL

NEWARK CHARTER SCHOOL