Bluesky Charter School

“The 990 was prepared by the organization's audit firm. It was reviewed by the Board and reviewed and signed by the Director of the organization.”

“Annually each board member completes a required form and discloses any conflicts of interest.”

“Current compensation is based on past wages with increases given during the year by the Board forming the basis for future years' pay.”

“Board policies are available on the board section of the school website and upon request.”

“Several members of the board are teachers at the school. Minnesota State Statute 124D.10 Subd. 4(g) requires the board to have at least one employed or contracted teacher.”

“GASB Statement No 68 cummulative effect - see final note Sch O. -2,793,452.”

“The School Board assumes responsibility for the oversight of the audit of its financial statements and the selection of an independent accountant annually. This process has not changed from the prior year.”

“The Bluesky Charter School is required to have an authorizer to monitor its operations in order to maintain its charter. The School's approved authorizer during the fiscal year 2014 was the Novation Eucation Opportunities (NEO).”

“Made and effort to obtain information on compensation, if any, was paid from a related orginization. Received Business Transactions and Relationship Statesments from all parties listed in Part VII. No transactions were noted on the received Business Transaction Statements.”

“During the year ended June 30, 2015, the School implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27. GASB Statement No. 68 included major changes in how employers account for pension benefit expenses and liabilities. In financial statements prepared using the economic resources measurement focus and accrual basis of accounting (entity-wide and proprietary funds), an employer is required to recognize a liability for its share of the net pension liability provided through the pension plan. An employer is required to recognize pension expense and report deferred outflows of resources and deferred inflows of resources for its share related to pensions. This standard required retroactive implementation, which resulted in the restatement of net position as of June 30, 2014. The net position of governmental activities in the entity-wide financial statements as of June 30, 2014 was decreased by $2,793,452. This change reflects the School's proportionate share of the net pension liabilities ($2,975,909 decrease in net position) and related deferred outflows of resources ($182,457 increase in net position) for the PERA and TRA pension plans, which are now reported by employers under current guidance. Certain amounts necessary to fully restate fiscal year 2014 financial information are not determinable; therefore, prior year comparative amounts have not been restated.”