Conflue nc e Ac ade my, Inc . And Re late d E ntity Audito r Co - - PowerPoint PPT Presentation

Audito r Co mmunic a tio ns And Re sults Of T he Annua l Audit

fo r the ye a r e nde d

June 30, 2019

Conflue nc e Ac ade my, Inc . And Re late d E ntity

Co nflue nc e Ac a de my, I nc .

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• r Bo a rd And Ma na g e me nt Use Only

Bo a rd o f Dire c to rs Co nflue nc e Ac a de my, I nc . a nd F rie nds o f Co nflue nc e Ac a de my

• St. L
• uis, Misso uri

De a r L a die s a nd Ge ntle me n: We a re ple a se d to ha ve the o ppo rtunity to me e t with yo u to disc uss the re sults o f o ur a udit e ng a g e me nt o f Co nflue nc e Ac a de my, I nc . inc luding Co nflue nc e Ac a de my L E A, Gra nd Ce nte r Arts Ac a de my L E A a nd F rie nds o f Co nflue nc e Ac a de my fo r the ye a r e nde d June 30, 2019. T he a c c o mpa nying re po rt pre se nts info rma tio n re g a rding the sc o pe o f o ur a udits a nd o the r ma tte rs, whic h summa rize the re sults o f o ur a udit e ng a g e me nt. We tha nk yo u fo r the o ppo rtunity to b e o f c o ntinue d se rvic e to Co nflue nc e Ac a de my, I nc . We ha ve re c e ive d e xc e lle nt c o o pe ra tio n a nd a ssista nc e fro m ma na g e me nt a nd sta ff, b o th with re spe c t to a c c e ss to re c o rds, suppo rting do c ume nta tio n a nd re spo nse s to inquirie s. No limita tio ns we re impo se d o n o ur a udit pro c e dure s o r the e xte nt o f o ur a udit.

Co nflue nc e Ac a de my, I nc .

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T a b le Of Co nte nts

Page

E ng a g e me nt T e a m 1 Audito r Co mmunic a tio ns 2 - 8 Are a s T ha t Pro vide Oppo rtunity F

• r I

mpro ve me nt 9 - 10 Da ta Ana lysis: Summa ry Of Pro c e dure s 11 E me rg ing T e c hnic a l T

• pic s

12 - 16 I nde pe nde nt Audito rs’ Re po rt On Additio na l I nfo rma tio n 17 Appe ndix A - Ma na g e me nt Re pre se nta tio n L e tte rs

Co nflue nc e Ac a de my, I nc .

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E ng a g e me nt T e a m

Jeff Winter Engagement Partner Brandi Lawyer, Pat Miller and Alisha Barnum Engagement Managers Carolyn Wappelhorst, Andrew Reinholz and Jaleesa Short Engagement Staff

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns

Bo a rd o f Dire c to rs Co nflue nc e Ac a de my, I nc . a nd F rie nds o f Co nflue nc e Ac a de my

• St. L
• uis, Misso uri

We ha ve a udite d the b a sic fina nc ia l sta te me nts o f Co nflue nc e Ac a de my, I nc . (the Ac a de my), whic h inc lude s a se pa ra te a udit fo r F rie nds o f Co nflue nc e Ac a de my (F rie nds), fo r the ye a r e nde d June 30, 2019. Our a udits we re pe rfo rme d in a c c o rda nc e with a uditing sta nda rds g e ne ra lly a c c e pte d in the Unite d Sta te s o f Ame ric a a nd , e xc e pt fo r F rie nds, the sta nda rds a pplic a ble to fina nc ia l a udits c o nta ine d in Go ve rnme nt Auditing S tandards issue d b y the Co mptro lle r Ge ne ra l o f the Unite d Sta te s. T ho se sta nda rds re q uire tha t we pla n a nd pe rfo rm the a udit to o b ta in re a so na b le a ssura nc e a b o ut whe the r the fina nc ia l sta te me nts a re fre e fro m ma te ria l missta te me nt a nd pre se nte d in a c c o rda nc e with a c c o unting princ iple s g e ne ra lly a c c e pte d in the Unite d Sta te s o f Ame ric a . Our a udits invo lve d pe rfo rming pro c e dure s to o b ta in e vide nc e suppo rting the a mo unts a nd disc lo sure s in the fina nc ia l sta te me nts. We a lso e va lua te d the a ppro pria te ne ss o f a c c o unting po lic ie s use d b y the Ac a de my a nd the re a so na b le ne ss o f sig nific a nt a c c o unting e stima te s ma de b y the Ac a de my’ s ma na g e me nt, a s we ll a s e va lua te d the o ve ra ll pre se nta tio n o f the fina nc ia l sta te me nts. Auditing sta nda rds re quire the a udito r to e nsure tha t tho se c ha rg e d with c o rpo ra te g o ve rna nc e re c e ive a dditio na l info rma tio n re g a rding the sc o pe a nd re sults o f the a udits tha t ma y a ssist the g o ve rning b o dy in o ve rse e ing the fina nc ia l re po rting a nd disc lo sure pro c e ss fo r whic h ma na g e me nt is re spo nsible . T he fo llo wing se c tio n de sc rib e s ma tte rs whic h a re re q uire d to b e re po rte d to yo u. T his info rma tio n is inte nde d so le ly fo r the use o f the Bo a rd o f Dire c to rs o f Co nflue nc e Ac a de my, I nc . a nd F rie nds a nd is no t inte nde d to b e a nd sho uld no t b e use d b y a nyo ne o the r tha n the se spe c ifie d pa rtie s.

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

Auditor s’ Re sponsibility Unde r U.S. Ge ne r ally Ac c e pte d Auditing Sta nda rds

Our re spo nsib ility, a s de sc rib e d b y pro fe ssio na l sta nda rds, is to e xpre ss o pinio ns a b o ut whe the r the c o nso lida te d fina nc ia l sta te me nts pre pa re d b y ma na g e me nt with o ur a ssista nc e a re fa irly pre se nte d, in a ll ma te ria l re spe c ts, in c o nfo rmity with U.S. g e ne ra lly a c c e pte d a c c o unting princ iple s a nd tha t Co nflue nc e Ac a de my, I nc . a nd a ll re la te d e ntitle s (the Ac a de my) ha s c o mplie d in a ll ma te ria l re spe c ts with the a pplic a b le c o mplia nc e re q uire me nts o f its ma jo r fe de ra l pro g ra ms. Our a udit o f the c o nso lida te d fina nc ia l sta te me nts do e s no t re lie ve yo u o r ma na g e me nt o f re spo nsib ility fo r the a c c ura c y o f the fina nc ia l sta te me nts. As pa rt o f o ur a udit, we c o nside re d the inte rna l c o ntro l o f the Ac a de my. Suc h c o nside ra tio ns we re so le ly fo r the purpo se o f de te rmining o ur a udit pro c e dure s a nd no t to pro vide a ny a ssura nc e c o nc e rning suc h inte rna l c o ntro l. Re po rts issue d b y Rub inBro wn L L P:



F rie nds o f Co nflue nc e Ac a de my

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An unmo difie d o pinio n o n the fina nc ia l sta te me nts o f F rie nds o f Co nflue nc e Ac a de my.

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Co nflue nc e Ac a de my, I nc . Co nso lida te d

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An unmo difie d o pinio n o n the c o nso lida te d fina nc ia l sta te me nt o f Co nflue nc e Ac a de my, I nc .

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Our I nde pe nde nt Audito rs’ Re po rt o n inte rna l c o ntro l

• ve r fina nc ia l re po rting a nd o n c o mplia nc e a nd o the r

ma tte rs b a se d o n a n a udit o f fina nc ia l sta te me nts pe rfo rme d in a c c o rda nc e with Go ve rnme nt Auditing S tandards.



An unmo difie d o pinio n o n c o mplia nc e with re q uire me nts a pplic a b le to ma jo r fe de ra l pro g ra ms a nd

• ur re po rt o n inte rna l c o ntro l o ve r c o mplia nc e in

a c c o rda nc e with Unifo rm Guida nc e .



An unmo difie d o pinio n o n sta te c o mplia nc e re q uire me nts re la ting to tra nspo rta tio n sta tute s, a tte nda nc e , a nd b udg e ts.

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An I nde pe nde nt Ac c o unta nts’ Re po rt a tte sting to c e rta in de b t c o ve na nts re la te d to the Ac a de my, a s de fine d in the L

• a n a nd T

rust Ag re e me nt.

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F

• rm 990 ta x re turns.

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

Othe r Information In Doc ume nts Containing Audite d F inanc ial State me nts

T

• o ur kno wle dg e , the 2019 a udite d fina nc ia l sta te me nts a re

no t inc lude d within a ny o the r do c ume nt.

Planne d Sc ope And T iming Of T he Audit

We pe rfo rme d the a udit a c c o rding to the pla nne d sc o pe a nd timing tha t wa s pre vio usly c o mmunic a te d to yo u a nd in the e ng a g e me nt le tte r, da te d July 26, 2019, re g a rding the na ture , timing a nd e xte nt o f o ur a udit pro c e dure s.

Qualitative Aspe c ts Of Ac c ounting Pr ac tic e s

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Sig nific a nt a c c o unting po lic ie s a re de sc rib e d in No te 1 fo r e a c h sta te me nt a udite d.

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T he Org a niza tio n a do pte d F ASB Ac c o unts Sta nda rds Upda te (ASU) 2016-14, Pre se ntatio n o f F inanc ial S tate me nt fo r No t-fo r-Pro fit E ntitie s, whic h e ffe c te d the pre se nta tio n a nd disc lo sure s re la te d to ne t a sse ts, func tio na l e xpe nse s a nd liq uidity.



E xc e pt a s no te d a b o ve , no ne w a c c o unting po lic ie s we re a do pte d a nd the a pplic a tio n o f e xisting po lic ie s wa s no t c ha ng e d.



We no te d no tra nsa c tio ns e nte re d into during the ye a r fo r whic h the re wa s a la c k o f a utho rita tive g uida nc e o r c o nse nsus.



No sig nific a nt tra nsa c tio ns ha ve b e e n re c o g nize d in a diffe re nt pe rio d tha n whe n the tra nsa c tio ns o c c urre d.

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

Manage me nt Judgme nts And Ac c ounting E stimate s

T he pre pa ra tio n o f the fina nc ia l sta te me nts re q uire s the use o f a c c o unting e stima te s. Ce rta in e stima te s a re pa rtic ula rly se nsitive due to the ir sig nific a nc e to the fina nc ia l sta te me nts a nd the po ssib ility tha t future e ve nts ma y diffe r sig nific a ntly fro m ma na g e me nt’ s e xpe c ta tio ns. We e va lua te d the ke y fa c to rs a nd a ssumptio ns use d to de ve lo p the e stima te s no te d a t rig ht in de te rmining tha t the se a mo unts a re re a so na b le in re la tio n to the fina nc ia l sta te me nts ta ke n a s a who le . T he mo st no ta b le e stima te s a ffe c ting the fina nc ia l sta te me nts a re :

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De pre c ia tio n o n c a pita l a sse ts

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F a ir va lue o f minimum le a se pa yme nts o n c a pita l le a se a g re e me nts with the Be a ux Arts a nd the Sun T he a tre , a s we ll a s the re la te d a mo rtiza tio n e xpe nse



E xpe nse s a re c ha rg e d to pro g ra m se rvic e s a nd suppo rting a c tivitie s o n the b a sis o f ma na g e me nt’ s e stima te s o n ho w re so urc e s a re spe c ific a lly utilize d. E xpe nse s tha t a re dire c tly ide ntifia b le with the c o sts o f o pe ra ting the pro g ra m inc luding a dve rtising , de pre c ia tio n, utilitie s, inte re st o n b o nds, instruc tio na l se rvic e s, insura nc e , inte re st le a se purc ha se , ma te ria ls a nd supplie s, me mb e rship, tra ve l a nd re c ruiting , pro fe ssio na l se rvic e s, re nta l a nd re pa irs a nd ma inte na nc e a re a llo c a te d dire c tly to tha t func tio n. Pe rso nne l c o sts, inc luding sa la rie s, b e ne fits, a nd ta xe s a re c ha rg e d to the pro g ra m a nd suppo rting a c tivitie s o n the b a sis o f mo nthly time a nd e xpe nse s re po rts. E xpe nse s tha t a re no t dire c tly ide ntifia b le to a spe c ific func tio n a nd a re re la te d to spa c e usa g e , inc luding a dve rtising , instruc tio na l se rvic e s, inte re st le a se purc ha se , ma te ria ls a nd supplie s, me mb e rships, tra ve l a nd re c ruiting , pro fe ssio na l se rvic e s, re nta l a nd re pa irs a nd ma inte na nc e .

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

F inanc ial State me nt Disc losure s

T he disc lo sure s a re ne utra l, c o nsiste nt a nd c le a r. Ce rta in disc lo sure s a re pa rtic ula rly se nsitive b e c a use o f the ir sig nific a nc e to the fina nc ia l sta te me nts’ use rs. T he mo st se nsitive disc lo sure s a ffe c ting the fina nc ia l sta te me nts a re : T he mo st se nsitive disc lo sure s a ffe c ting the fina nc ia l sta te me nts a re :

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Disc lo sure o f L iq uidity a nd Ava ila b ility o f F ina nc ia l Asse ts

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Disc lo sure o n L E A No te s Re c e iva b le

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Disc lo sure o n L

• ng -T

e rm De b t

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Disc lo sure o n L e a se s (re la te d to c a pita l le a se s with the Be a ux Arts a nd the Sun T he a tre )

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Disc lo sure fo r Building Ac q uisitio ns a nd Re la te d F ina nc ing

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Disc lo sure fo r Sub se q ue nt E ve nts

Diffic ultie s E nc ounte r e d In Pe r for ming T he Audit

T he re we re no diffic ultie s e nc o unte re d in de a ling with ma na g e me nt re la te d to pe rfo rma nc e o f the a udit.

Corre c te d And Unc orre c te d Misstate me nts Conflue nc e Ac ade my

Ma na g e me nt ha s c o rre c te d a ll a udit a djustme nts c o nside re d to b e ma te ria l, e ithe r individua lly o r in the a g g re g a te , whic h c o lle c tive ly de c re a se d ne t a sse ts b y $42,219, re la te d to re nta l e xpe nse pa id to F rie nds. T he re we re no a c c umula te d unc o rre c te d missta te me nts re c o rde d in the c urre nt ye a r.

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

Corre c te d And Unc orre c te d Misstate me nts F rie nds

Ma na g e me nt ha s c o rre c te d a ll a udit a djustme nts c o nside re d to b e ma te ria l, e ithe r individua lly o r in the a g g re g a te , whic h c o lle c tive ly inc re a se d ne t po sitio n b y $42,219, re la te d to re nta l inc o me fro m Co nflue nc e . T he re we re no a c c umula te d unc o rre c te d missta te me nts re c o rde d in the c urre nt ye a r.

Disa g re e me nts With Ma na g e me nt

F

• r purpo se s o f this le tte r, pro fe ssio na l sta nda rds de fine a

disa g re e me nt with ma na g e me nt a s a fina nc ia l a c c o unting , re po rting , o r a uditing ma tte r, whe the r o r no t re so lve d to o ur sa tisfa c tio n, tha t c o uld b e sig nific a nt to the fina nc ia l sta te me nts

• r the a udito rs’ re po rt. We a re ple a se d to re po rt tha t no suc h

disa g re e me nts a ro se during the c o urse o f o ur a udit.

Manage me nt Re pre se ntations

Ple ase se e attac he d manage me nt re pre se ntatio n le tte rs. We re q ue ste d c e rta in re pre se nta tio ns fro m ma na g e me nt tha t a re inc lude d in the a tta c he d le tte rs.

Co nflue nc e Ac a de my, I nc .

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Audito r Co mmunic a tio ns (Co ntinue d)

ARE A COMME NT S

Ma na g e me nt Consulta tions With Othe r Inde pe nde nt Ac c ountants

I n so me c a se s, ma na g e me nt ma y de c ide to c o nsult with o the r a c c o unta nts a b o ut a uditing a nd a c c o unting ma tte rs, simila r to

• b ta ining a “se c o nd o pinio n” o n c e rta in situa tio ns. I

f a c o nsulta tio n invo lve s a pplic a tio n o f a n a c c o unting princ iple to a n e ntity’ s fina nc ia l sta te me nts o r a de te rmina tio n o f the type o f a udito rs’ o pinio n tha t ma y b e e xpre sse d o n tho se sta te me nts,

• ur pro fe ssio na l sta nda rds re q uire the c o nsulting a c c o unta nt to

c he c k with us to de te rmine tha t the c o nsulta nt ha s a ll the re le va nt fa c ts. T

• o ur kno wle dg e , the re we re no suc h

c o nsulta tio ns with o the r a c c o unta nts.

Othe r Audit F inding s Or Issue s

T he re we re no ma tte rs o f sig nific a nt disc ussio n tha t a ffe c te d o ur re te ntio n a s the Ac a de my’ s a udito rs.

Co nflue nc e Ac a de my, I nc .

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Prio r Ye a r Sing le Audit F inding s

Single Audit F inding – 2018- 001 – Pr

• c ur

e me nt, Suspe nsion and De bar me nt

RubinBro wn no te d tha t c o ntro ls o ve r c o mplia nc e put in pla c e b y ma na g e me nt we re no t o pe ra ting e ffe c tive ly a s it re la te s to pro c ure me nt, suspe nsio n a nd de b a rme nt. Se ve ra l insta nc e s we re no te d during te sting whe re the Org a niza tio n wa s no t fo llo wing its pro c ure me nt po lic y. RubinBro wn no te d tha t c o ntra c t file s did no t o rig ina lly do c ume nt the sig nific a nt histo ry o f the pro c ure me nt, indic a te tha t the pro c ure me nt pro vide d full a nd o pe n c o mpe titio n, a nd do c ume nt the ra tio na le fo r limite d c o mpe titio n fo r c o ntra c ts whe re c o mpe titio n wa s limite d no r do c ume nt tha t a n a ppro pria te c o st/ pric e a na lysis wa s pe rfo rme d. I n a dditio n, o ng o ing c o ntra c ts we re no t subse que ntly re vie we d to a dd this a ppro pria te do c ume nta tio n. RubinBro wn a lso no te d o ne insta nc e tha t no ve rific a tio n tha t the c o ntra c to r wa s no t suspe nde d o r de b a rre d wa s o b ta ine d b e fo re the c o ntra c t wa s e xe c ute d.

F

• llow- up: T

his finding wa s re me dia te d during 2019. Co ntro ls we re imple me nte d re la te d to pro c ure me nt to e nsure tha t the pro pe r pro c e dure s a re b e ing fo llo we d in the e ve nt o f pro c uring a n ite m o r se rvic e a nd ve rifying tha t the pro vide r is no t suspe nde d o r de b a rre d.

Co nflue nc e Ac a de my, I nc .

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Prio r Ye a r Oppo rtunity F

• r I

mpro ve me nt

Single Audit Re c omme ndation

During the te sting o f a llo wa b le c o sts, RubinBro wn no te d fo r o ne o ut o f twe nty-se ve n e mplo ye e s te ste d ma na g e me nt c o uld no t find the e mplo ye e ’ s fisc a l ye a r 2017-18 c o ntra c t. RubinBro wn wa s una b le to ve rify the e mplo ye e ’ s pa yme nt a mo unt a s we ll a s de te rmine tha t the a mo unt c ha rg e d to the g ra nt wa s c o rre c t. RubinBro wn re c o mme nds tha t a ll e mplo ye e c o ntra c ts a re ma inta ine d. During the te sting o f the c o ho rt a ve ra g e use d to c a lc ula te the g ra dua tio n ra te , RubinBro wn no te d tha t no te s we re no t ta ke n o r re ta ine d a s it re la te s to stude nts b e ing re mo ve d fro m the a ve ra g e . RubinBro wn re c o mme nds tha t no te s be ta ke n a nd suppo rt b e re ta ine d fo r e a c h stude nt tha t is re mo ve d fro m the a ve ra g e ; inc luding no te s c o ve ring ve rb a l c o nve rsa tio ns with fa milie s o r se a rc h re sults ve rifying tha t stude nts mo ve d distric ts.

F

• llow- Up: RubinBro wn pe rfo rme d te sting fo r fisc a l ye a r 2019 no ting tha t the ite ms a b o ve we re no t re pe a te d.

Co nflue nc e Ac a de my, I nc .

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Da ta Ana lysis: Summa ry Of Pro c e dure s

Rub inBro wn pe rfo rme d the fo llo wing a na lysis during the a udit:

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Be nfo rd’ s L a w Ana lysis o n disb urse me nts during the fisc a l ye a r to se e if the pa tte rn o f disburse me nts is a s e xpe c te d

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Ana lyze to p ve ndo rs b a se d o n pa yme nts ma de to tho se ve ndo rs during the c urre nt a nd prio r fisc a l ye a rs

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I de ntify po te ntia l duplic a te a mo unts to a sing le ve ndo r - No unusua l ite ms no te d.

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I de ntify g a ps in the c he c k se q ue nc e - No unusua l ite ms no te d.

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Pe rfo rm jo urna l e ntry te sting utilizing the c o mple te g e ne ra l le dg e r de ta il - No unusua l ite ms no te d.

Co nflue nc e Ac a de my, I nc .

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E me rg ing F ina nc ia l Re po rting I ssue s - Summa ry Of E ffe c tive Da te s

T OPIC E F F E CT IVE DAT E

Re ve nue Re c o g nitio n F

• r the ye a r e nde d June 30, 2020

Co ntrib utio ns Re c e ive d a nd Ma de Cla rific a tio n F

• r the ye a r e nde d June 30, 2020

L e a se Ac c o unting F

• r the ye a r e nde d June 30, 2021

Co nflue nc e Ac a de my, I nc .

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Re ve nue Re c o g nitio n - Ba c kg ro und

ASU 2014- 09 – R

e ve nue fr

• m Contr

ac ts with Custome r s (T

• pic 606)

E ffe c tive July 1, 2019 Co ntrib utio ns a re spe c ific a lly e xc lude d, b ut this ASU will a pply to tra nsa c tio ns with c usto me rs suc h a s:



Ce rta in g o ve rnme nt (a nd o the r) g ra nts a nd c o ntra c ts



Me dic a id a nd priva te pa y se rvic e s



Se rvic e fe e s



Bifurc a tio n o f tra nsa c tio ns b e twe e n c o ntrib utio ns a nd e xc ha ng e tra nsa c tio ns Re ve nue re c o g nitio n fo r tra nsa c tio ns wo uld b e re vie we d to :



I de ntify the c o ntra c t(s) with the c usto me r

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I de ntify the pe rfo rma nc e o b lig a tio n



De te rmine the tra nsa c tio n pric e



Allo c a te the tra nsa c tio n pric e



Re c o g nize re ve nue whe n (o r a s) a pe rfo rma nc e o b lig a tio n is sa tisfie d

Co nflue nc e Ac a de my, I nc .

14 F

• r Bo a rd And Ma na g e me nt Use Only

Be lo w a re sug g e ste d a c tivitie s fo r the imple me nta tio n o f ASU 2014-09, whic h is e ffe c tive fo r the Org a niza tio n fo r the ye a r e nde d June 30, 2020:

RE F E RE NCE NUMBE R KE Y ACT IVIT Y RE SPONSIBL E PE RSON T ARGE T COMPL E T ION DAT E 1 Pre pa re a n inve nto ry o f re ve nue stre a ms 2 Ana lyze e a c h re ve nue stre a m unde r the ne w sta nda rd 3 F

• rmula te pre limina ry c o nc lusio ns

4 Audito r c he c kpo int 5 Upda te prio r a na lysis a s ne e de d 6 I de ntify c ha ng e s re q uire d fo r inte rna l c o ntro l 7 I de ntify c ha ng e s re q uire d fo r I T syste ms 8 Do c ume nt impa c t o n sta ke ho lde rs a nd pla nne d c o mmunic a tio ns 9 I mple me nt c ha ng e s 10 Po st-imple me nta tio n re vie w

Re ve nue Re c o g nitio n - I mple me nta tio n Pla n

Co nflue nc e Ac a de my, I nc .

15 F

• r Bo a rd And Ma na g e me nt Use Only

Co ntrib utio ns Re c e ive d And Co ntrib utio ns Ma de Cla rific a tio n

ASU 2018- 08:

Not-for

• Pr
• fit E

ntitie s: Clar ifying the Sc ope and the Ac c ounting Guidanc e F

• r Contr

ibutions R e c e ive d and Contr ibutions Made



Pro vide s g uida nc e o n:



Cha ra c te rizing g ra nts a nd simila r c o ntra c ts with g o ve rnme nt a g e nc ie s a nd o the rs a s re c ipro c a l tra nsa c tio ns (e xc ha ng e tra nsa c tio ns) o r no nre c ipro c a l tra nsa c tio ns (c o ntrib utio ns)



Additio na l c o nside ra tio ns a dde d to e va lua te whe the r the re so urc e pro vide r is re c e iving c o mme nsura te va lue



E xpe c ta tio n is this will re sult in mo re g o ve rnme nt a g e nc y funding b e ing a c c o unte d fo r a s c o nditio na l c o ntrib utio ns



De te rmining whe the r a c o ntrib utio n is c o nditio na l o r unc o nditio na l



T he de finitio n o f c o nditio na l ha s b e e n re vise d suc h tha t a c o ntrib utio n is c o nditio na l if:



A b a rrie r must b e o ve rc o me AND



T he re is a rig ht o f re turn o f a sse ts tra nsfe rre d o r a rig ht o f re le a se o f pro miso r’ s o b lig a tio n to tra nsfe r a sse ts



E ffe c tive Da te s



F

• r re so urc e re c ipie nts, this is e ffe c tive fo r fisc a l ye a r e nd 2020



F

• r re so urc e pro vide rs, this is e ffe c tive fo r fisc a l ye a r e nd 2021



E a rly a do ptio n is pe rmitte d

Co nflue nc e Ac a de my, I nc .

16 F

• r Bo a rd And Ma na g e me nt Use Only

Rig ht-o f-use a sse t L e a se lia bility Amo rtiza tio n e xpe nse I nte re st e xpe nse Ca sh pa id fo r princ ipa l a nd inte re st pa yme nts Rig ht-o f-use a sse t L e a se lia bility Sing le le a se e xpe nse o n a stra ig ht-line b a sis Ca sh pa id fo r le a se pa yme nts

F ina nc ing (T ype A) Sta te me nt o f F ina nc ia l Po sitio n Ope ra ting (T ype B) Sta te me nt o f Ca sh F lo ws Sta te me nt o f Ac tivitie s

ASU 2017-02 - L e ase s (T

• pic 842)



All le a se s g re a te r tha n 12 mo nths sha ll b e c la ssifie d a s:



T ype A (F ina nc ing ) - if the te rm o f the le a se is fo r a ma jo r pa rt o f the re ma ining e c o no mic life o f the unde rlying a sse t (suc h a s le a se s fo r e q uipme nt, ve hic le s, e tc .)



T ype B (Ope ra ting ) - le a se o f pro pe rty (suc h a s la nd, a ll/ pa rt o f a b uilding , e tc .)



E ffe c tive fo r pub lic c o mpa nie s (inc luding no t-fo r-pro fit o rg a niza tio ns with pub lic ly tra de d o r c o nduit de b t) fo r a nnua l a nd inte rim pe rio ds b e g inning a fte r De c e mbe r 15, 2018 a nd fo r a ll o the r e ntitie s fo r a nnua l pe rio ds b e g inning a fte r De c e mb e r 15, 2019; ho we ve r, e a rly a do ptio n is pe rmitte d

L e a se Ac c o unting

Co nflue nc e Ac a de my, I nc .

17 F

• r Bo a rd And Ma na g e me nt Use Only

I nde pe nde nt Audito rs’ Re po rt On Additio na l I nfo rma tio n

Bo a rd o f Dire c to rs Co nflue nc e Ac a de my, I nc .

• St. L
• uis, Misso uri

Our re po rt o n o ur a udit o f the b a sic fina nc ia l sta te me nts o f Co nflue nc e Ac a de my, I nc . (the Ac a de my) fo r June 30, 2019 a ppe a rs in the fina nc ia l sta te me nts o f the Ac a de my. T ha t a udit wa s c o nduc te d fo r the purpo se o f fo rming a n o pinio n o n the b a sic fina nc ia l sta te me nts ta ke n a s a who le . T he a dditio na l info rma tio n pre se nte d o n the pre c e ding pa g e s is pre se nte d fo r purpo se s o f a dditio na l a na lysis a nd is no t a re q uire d pa rt o f the b a sic fina nc ia l sta te me nts. Suc h info rma tio n ha s no t b e e n subje c te d to the a uditing pro c e dure s a pplie d in the a udit o f the b a sic fina nc ia l sta te me nts a nd, a c c o rding ly, we e xpre ss no o pinio n o n it. Oc to b e r 31, 2019

E xhib it A

Management Representation Letters