SUNSHINE HIGH SCHOOL –
GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
(A component unit of the District School
Board of Orange County, Florida)
FINANCIAL STATEMENTS
(Audited)
For the year ended June 30, 2015

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
TABLE OF CONTENTS

Page
Independent Auditors' Report

1-2

Management's Discussion and Analysis

3-6

Financial Statements:
Statement of Net Position

7

Statement of Activities

8

Balance Sheet - Governmental Funds

9

Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds
Notes to Financial Statements

10
11-20

Required Supplementary Information:
Schedule of Revenues, Expenditures and Change in Fund Balance Budget and Actual – General Fund

21

Other Reports:
Independent Auditors’ 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

22-23

Management Letter

24

Auditors’ Comments – Current Year

25

Status of Prior Year Comments

25

 HOLLAND & REILLY
CERTIFIED PUBLIC ACCOUNTANTS
601 NORTH FERN CREEK
SUITE 200
ORLANDO, F LOR I DA 32803
A~IEHICAN

(407) 894 -68 03

INSTITI TJ,; OF

CEHTIFI ED l't:llU C A(X'Ol iN T Ato.TS
FI.OIUDA INSTIT I TE OF

(407) 896-3044

DAVID S. IIOLLA:-ID. CPA

FAX

CI<:H'J1FIED Pt 'UI.It' ACCOl l~TAi'\'TS
ASS<lt'IA 11 0 N OF

THOMAS F. REILLY, C'PA

CEHTJFIIED FRAI ')) EXAMINEHS

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of the
Sunshine High School - Greater Orlando Campus, Inc.
d/b/a Sunshine High School

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund
of Sunshine High School - Greater Orlando Campus, Inc. d/b/a Sunshine High School (the School), a
component unit of the District School Board of Orange County, Florida, 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 J!.esponsibility 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.

Auditors' 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 of 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. ln making
those risk assessments, the auditor considers internal control relevant to the entity'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 entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies 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 .

 In our op1mon, 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 Sunshine High School Greater Orlando Campus, Inc. d/b/a Sunshine High School as of June 30, 2015 and the respective changes
in financial position thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis and budgetary comparison information on page 21 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 repm1ing 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.

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 School's internal control 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 School's internal control over financial rep011ing
and compliance.

Orlando, FL
September 24, 20 I 5

-2-

  DISCUSSION
AND ANALYSIS


SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2015
As management of Sunshine High School – Greater Orlando Campus, Inc. d/b/a Sunshine High School (the
School), a component unit of the District School Board of Orange County, Florida, we offer readers of the
School's basic financial statements this narrative overview and analysis of the financial activities of the
School for the year ended June 30, 2015.
Management's discussion and analysis is included at the beginning of the School's basic financial
statements to provide, in layman's terms, the past and current position of the School's financial condition.
This summary should not be taken as a replacement for the audit, which consists of the basic financial
statements and other supplementary information.
FINANCIAL HIGHLIGHTS
Our basic financial statements provide these insights into the results of this year's operations.



The School is managed by Accelerated Learning Solutions, Inc. (ALS). Through December
31, 2014, the School was managed by Community Education Partners, Inc. (CEP). As of
January 1, 2015, CEP assigned the management agreement to ALS, an affiliate.



The net position at the School as of June 30, 2015 of $380,772 primarily consisted of cash,
capital assets, and Public Education Capital Outlay Receivable, in excess of payable due to the
management company, unearned revenue, and long-term debt.



The School's total revenues were $4,258,982 including $3,774,693 from state FEFP, $181,082
from transportation funding, $239,182 from state Public Education Capital Outlay, $1,785
from Florida Teachers' Lead Program, $55,652 in telecommunications funding, $4,142 in a
federal grant, and $2,446 in miscellaneous revenue. The School's expenditures for the year
ended June 30, 2015 were $4,063,815.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the School's basic financial
statements. The School's basic financial statements are comprised of three components: 1) governmentwide basic financial statements, 2) fund basic financial statements, and 3) notes to the basic financial
statements. This report also contains other required supplementary information in addition to the basic
financial statements themselves.
Government-wide Basic Financial Statements
The government-wide basic financial statements are designed to provide readers with a broad overview of
the School's finances in a manner similar to a private sector business.
The statement of net position presents information on all of the School's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the School is improving or deteriorating.

-3-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2015
The statement of activities presents information showing how the School's net position changed during the
year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected
revenues and services rendered but unpaid).
The government-wide basic financial statements include all governmental activities that are principally
supported by grants and entitlements from the state for full-time equivalent funding. The School does not
have any business-type activities. The governmental activities of the School primarily include instruction
and instructional support services.
The government-wide financial statements can be found on pages 7 and 8 of this report.
Fund Basic Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The School, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the basic government-wide financial statements. However, unlike the government-wide basic
financial statements, governmental fund basic financial statements focus on near-term inflows and outflows
of spendable resources, as well as balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the School's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide basic financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide basic financial statements. By
doing so, readers may better understand the long-term impact of the School's near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The School maintains two governmental fund types, the General Fund and the Capital Projects Fund.
Information is presented in the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances for the two funds.
The governmental fund financial statements can be found on pages 9 and 10 of this report.
The School adopts an annual budget for the General Fund. A budgetary comparison statement has been
provided on page 21 for the General Fund to demonstrate compliance with the budget.

-4-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2015
Notes to Basic Financial Statements
The notes provide additional information that is essential for a full understanding of the data provided in
the government-wide and fund basic financial statements. The notes to basic financial statements can be
found on pages 11 through 20 of this report.
GOVERNMENT-WIDE FINANCIAL ANAYLSIS
Our analysis in the table below focuses on the net position of the School's governmental activities:
STATEMENT OF NET POSITION

Current and other assets
Capital assets

$

Current liabilities
Long-term liabilities
Net position

$

2014
739,958
455,073
1,195,031
595,553
377,890
973,443
221,588

$

$

2015
760,857
305,322
1,066,179
421,285
264,122
685,407
380,772

The results of the operations for the School as a whole are reported in the statement of activities on page 8.
The table below provides a condensed presentation of the School's revenues and expenses for the years
ended June 30, 2014 and 2015.
CHANGE IN NET POSITION
2014
Revenues:
General Revenues
Federal sources
State sources
Program Revenues

$

Expenses:
Instruction – basic
Instruction – exceptional
Pupil personnel services
School board
School administration
Fiscal services
Transportation services
Plant operations and maintenance
Management company fee
Interest

4,393
3,683,211
3,595
3,691,199

999,771
4,830
226,372
19,113
581,194
9,910
73,862
486,330
1,145,220
30,518
3,577,120
$ 114,079

Change in net position

-5-

2015

$

4,142
4,252,394
2,446
4,258,982

931,126
7,239
238,301
22,680
662,812
10,355
67,278
592,360
1,544,799
22,848
4,099,798
$ 159,184

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2015
GOVERNMENTAL FUND EXPENDITURES
The following table presents the cost of the largest functions/programs as a percentage of total
governmental expenditures:

2014
Governmental Expenditures
Expenditures
Instruction
$
963,744
Pupil personnel services
226,372
School administration
581,194
Plan operations and maintenance
371,340
Management company fee
1,145,220
Debt service
136,616
Other expenditures
102,885
$
3,527,371

%
27.3 %
6.4
16.5
10.5
32.5
3.9
2.9
100 %

2015
Expenditures
$
903,604
238,301
662,814
477,370
1,544,799
136,616
100,311
$
4,063,815

%
22.2 %
5.9
16.3
11.7
38.0
3.4
2.5
100 %

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
During the year ended June 30, 2015 the School did not acquire any capital assets. Other capital assets are
provided by the management company that was engaged to operate the School (Note 4).
Debt Administration
The School made principal payments of $113,768 reducing the loan payable to $264,122 at June 30, 2015
(Note 5).
GENERAL FUND BUDGETARY HIGHLIGHTS
Total revenues were higher than budget because annual enrollment was higher by 54 students or
approximately $375,000. Also, the FEFP rate paid by the District was higher than the budgeted rate, a total
of approximately $118,000.
Total expenditures were unfavorable to the budget due mainly to higher instructional and pupil personnel
services, and school administration costs, as well as incurring a higher management company fee. These
costs were primarily related to favorable revenue variances. See page 21.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
FEFP funding per student will increase by $225.06 or 3.6% in FY 2016 as compared to FY 2015. The
management agreement continues to provide for the delivery of services despite any revenue shortfalls.
Enrollment will be sufficient. These factors were considered in preparing the FY 2016 budget.
REQUESTS FOR INFORMATION
If you have any questions about this report or need additional information, please write to Accelerated
Learning Solutions, Inc., 2636 Elm Hill Pike, Suite 500 Nashville, TN 37214.
-6-

 BASIC FINANCIAL STATEMENTS

SUNSHINE HIGH SCHOOL - GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
STATEMENT OF NET POSITION
June 30, 2015
ASSETS

Governmental
Activities
Assets:
Cash and cash equivalents
Accounts receivable,
Public education capital outlay funds
Grant receivable
Security deposits
Capital assets, net of accumulated depreciation
Total assets

$

685,426
53,682
768
20,981
305,322

$

1,066,179

LIABILITIES AND NET POSITION
Liabilities:
Payable to management company
Payable to District School Board
Unearned revenue
Notes payable:
Current
Long-term
Total liabilities

350,070
17,533
53,682
121,992
142,130
685,407

Net Position:
Net investment in capital assets
Restricted
Unrestricted
Total net position

41,200
200,843
138,729
380,772

Total liabilities and net position

$

See accompanying notes.
-7-

1,066,179

 SUNSHINE HIGH SCHOOL - GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
STATEMENT OF ACTIVITIES
for the year ended June 30, 2015

Functions/Programs:
Instruction - basic
Instruction - exceptional
Pupil personnel services
School board
School administration
Fiscal services
Transportation services
Plant operations and maintenance
Management company fee
Interest
Total expenses

Expenses
931,126
7,239
238,301
22,680
662,812
10,355
67,278
592,360
1,544,799
22,848
$ 4,099,798
$

Program
Revenues
Charges for
Services
$
2,446
$
2,446

Governmental
Activities
Net Revenue
(Expense)
And Change
In Net Position
$
(931,126)
(7,239)
(238,301)
(22,680)
(662,812)
(10,355)
(67,278)
(589,914)
(1,544,799)
(22,848)
(4,097,352)

General revenues:
Federal sources
State sources

4,142
4,252,394
4,256,536

Change in net position

159,184

Net position, beginning of period

221,588

Net position, end of period

$

See accompanying notes.
-8-

380,772

 SUNSHINE HIGH SCHOOL - GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2015

General
Fund
Assets:
Cash and cash equivalents
Accounts receivable,
Public education capital outlay funds
Grant receivable
Security deposits

$

484,583

Governmental Funds
Capital
Outlay
$

200,843

$

53,682

$

Liabilities:
Payable to management company
Payable to District School Board
Unearned revenue
Total liabilities

506,332

$

254,525

$

350,070
17,533

Fund Balances:
Nonspendable
Restricted
Unassigned

20,981

20,981
200,843
117,748
339,572

200,843
117,748
138,729

Total liabilities and fund balances

$

506,332

200,843
$

254,525

760,857

350,070
17,533
53,682
421,285

53,682
53,682

367,603

685,426
53,682
768
20,981

768
20,981

Total assets

Total

$

760,857

$

339,572

Reconciliation of the Governmental Funds Balance
Sheet to the Statement of Net Position:
Governmental Funds Balance
Capital assets used in governmental activities are not
financial resources and, therefore, are not reported in the
funds.
Cost of capital assets
Accumulated depreciation

$

749,950
(444,628)

305,322

Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds.
Net Position of Governmental Activities (page 7)
See accompanying notes.
-9-

(264,122)
$

380,772

 SUNSHINE HIGH SCHOOL - GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
for the year ended June 30, 2015

General
Fund
Revenues:
Federal sources
State sources
Florida education finance program
Florida education finance program capital outlay
Public education capital outlay
Florida lead teachers' program
Local sources
Telecommunications funding
Total revenues

$

4,142

Total
Governmental
Funds

Capital
Outlay
$

$

3,845,178
110,597

3,845,178
110,597
239,182
1,785
2,446
55,652
4,258,982

239,182
1,785
2,446
55,652
4,019,800

Expenditures:
Instruction - basic
Instruction - exceptional
Pupil personnel services
School board
School administration
Fiscal services
Transportation services
Plant operations and maintenance
Management company fee
Debt service:
Principal
Interest
Total expenditures

$

896,365
7,239
238,301
22,680
662,812
10,355
67,278
238,188
1,544,799

239,182

$

Excess of revenues over expenditures before other
financing sources and uses

896,365
7,239
238,301
22,680
662,812
10,355
67,278
477,370
1,544,799
113,768
22,848
4,063,815

239,182

195,167

Other financing sources (uses):
Transfers in (out)

$

239,182

113,768
22,848
3,824,633

4,142

-

195,167

(110,597)

110,597

Excess of revenues over expenditures and transfers in (out)

84,570

110,597

195,167

Fund balance, beginning of period

54,159

90,246

144,405

Fund balance, end of period

$

138,729

$

200,843

-

$

339,572

$

195,167

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities:
Net Change in Fund Balance - Governmental Funds
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated lives as depreciation expense.
Capital outlay
Depreciation expense
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position.
Debt proceeds
Principal payments
Change in Net Position of Governmental Activities (page 8)
See accompanying notes.
-10-

$

(149,751)

(149,751)

113,768

113,768
$

159,184

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies:
Background and Organization - Sunshine High School – Greater Orlando Campus, Inc. d/b/a Sunshine
High School in Orlando (the School), (a component unit of the District School Board of Orange
County, Florida) is part of the Florida system of public education under the general direction of the
Florida Department of Education (Department). The School was incorporated as a Florida not-forprofit corporation in July 2011, and commenced operations as a charter school in August 2012. The
School was granted a charter to operate a high school, including grades nine to twelve, by the District
School Board of Orange County, Florida (the District) in April 2012.
The School is primarily funded through state-wide Florida Education Finance Program (FEFP) funding
received by the District and passed through to the School.
The School had developed a philosophy of recognizing and rewarding each student as an individual.
Therefore the educational program, goals and objectives, and methods of accountability toward the
objectives, must be set according to the situation of each individual student.
The School has selected a self-paced, mastery based, accelerated learning program as the model to
implement this philosophy. The goal of the School is to provide, for students that might not be best
suited for traditional schools, a school program and educational opportunities. These students include,
but are not limited to, drop-outs or those in danger of dropping out, students needing more remedial
support or individual instruction than can be obtained in a traditional high school, and students with
family or other situations that prevent attendance at regularly scheduled programs at traditional high
schools.
A Board of Directors (the Board) governs the School, and the School has retained a management
company to operate the School (See Note 4).
Reporting Entity - The School operates under a charter granted by the District. The five-year charter
covers the five-year period July 1, 2012 to June 30, 2017. At the end of the term of the charter, the
District may choose not to renew the charter under grounds specified in the charter, in which case the
District is required to notify the School in writing at least ninety days prior to the expiration of the
charter. During the term of the charter, the District may also immediately terminate the charter if good
cause is shown or if the District believes that the health, safety or welfare of the students is threatened.
In the event the School is dissolved or terminated, any public unencumbered funds and all school
property purchased with public funds automatically revert to the District. Because the School is fiscally
dependent on and financially accountable to the District, it is considered a component unit of the
District School Board of Orange County, Florida.
The School had no component units itself because it has no subsidiary or fiscally dependent
organizations.
Basis of Presentation Type of Entity Presented - Based on the guidance provided in the American
Institute of Certified Public Accountants Audit and Accounting Guide – Not-for-Profit Organizations
and provisions of Florida Statutes, the School is presented as a governmental organization for financial
statement reporting purposes and not as a not-for-profit organization.

-11-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies – continued:
The School is required by contract with the District to use the governmental reporting model and
follow the fund and account structure provided in the "Financial and Program Cost Accounting and
Reporting for Florida Schools – The Red Book" issued by the Florida Department of Education.
Financial Statements Presented - The School's basic financial statements include both government-wide
(reporting the School as a whole) and fund financial statements (reporting the School's major funds).
All of the School's activities are classified as governmental activities.
Basis of Presentation - Government-wide Financial Statements - The statement of net position and the
statement of activities display information about the School as a whole. In the government-wide
statement of net position, the governmental activities column is presented on a consolidated basis, if
applicable, and is reported on a full accrual economic resource basis, which recognizes all noncurrent
assets and receivables as well as all non-current debt and obligations. This approach differs from the
manner in which governmental fund financial statements are prepared. Therefore, governmental fund
financial statements include reconciliations with brief explanations to better identify the relationship
between the government-wide statements and the statements for governmental funds.
The government-wide statement of activities reports both the gross and net cost of each of the School's
functions. The net costs, by function, are also supported by general revenues (unrestricted
contributions, investment earnings, miscellaneous revenue, etc.). The statement of activities reduces
gross expenses (including provision for depreciation) by related program revenues, operating and
capital grants, and contributions. The effect of interfund activities has been removed from these
statements. Program revenues include charges for services provided to participants on a voluntary
basis. Program revenues must be directly associated with the function. Operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants column
reflects capital-specific grants. The comparison of program revenues and expenses identifies the extent
to which each program is self-financing or draws from the general revenues of the School.
This government-wide focus is more on the ability to sustain the School as an entity and the change in
the School's net position resulting from the current year's activities.
Net position is reported as restricted when constraints placed on net position use are either externally
imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of
other governments or imposed by law through constitutional provisions or enabling legislation.
Basis of Presentation – Fund Financial Statements - The accounts of the School are organized on the
basis of funds, each of which is considered a separate fiscal and accounting entity. The operations of
each fund are accounted for with a separate set of self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures. Governmental resources are allocated to and
accounted for in individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled. The various funds are grouped, in the fund financial
statements in this report, into fund types as follows:

-12-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies – continued:
Fund Accounting - Governmental Funds - Governmental funds are those through which most
governmental functions typically are financed. Governmental fund reporting focuses on the
sources, uses, and balances of current financial resources. Expendable assets are assigned to the
various governmental funds according to the purposes for which they may or must be used. Current
liabilities are assigned to the fund from which they will be paid. The difference between
governmental fund assets and liabilities is reported as fund balance. The School has two major
governmental funds.
General Fund – accounts for all of the financial activities of the school not required to be
accounted for in another fund and certain revenues from Federal and State sources that are not
legally restricted to be expended for specific current operating purposes.
Capital Outlay Fund – to account for financial resources (Public Education Capital Outlay) to
be used for acquisition or funding of major capital facilities or equipment.
Measurement Focus - The accounting and reporting treatment applied to the financial statements is
determined by its measurement focus.
The government-wide financial statements use the economic resources measurement focus, which
means that all assets and liabilities, whether current or non-current, are included.
Governmental funds are accounted for on a "spending" or "financial flow" measurement focus. This
means that only current assets and current liabilities are generally included on the balance sheet.
Governmental fund type operating statements present increases (revenues and other financing sources)
and decreases (expenditures and other financing uses) in net current assets.
Basis of Accounting - Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of accounting relates to the
timing of the measurements made, regardless of the measurement focus applied.
Governmental activity in the government-wide financial statements is presented on the full accrual
basis of accounting. Revenues are recognized when earned, and expenses are recognized when
incurred.
The governmental funds are accounted for using the modified accrual basis of accounting, under which
revenues are recognized when they become both measurable and available as net current assets.
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 period.
Expenditures and the related liabilities are recognized when incurred under this method of accounting.

-13-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies – continued:
Net Position and Fund Balances - Both the government-wide financial statements and the fund
financial statements divide the residual equity shown on the financial statements into categories as
follows:
Government-Wide Financial Statements - Net position is classified into categories as follows:
Net investment in capital assets - represents the difference between the cost of capital assets,
less accumulated depreciation, reduced by the outstanding balances of any borrowings used for
the acquisition, construction, or improvement of those assets.
Restricted - consists of net position with constraints placed on its use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments, or
2) law through constitutional provisions or enabling legislation.
Unrestricted - indicates that portion of net position that is available to fund future operations.
Fund Financial Statements – Categories and classification of fund balance:
GASB Statement 54 established fund balance classifications that comprise a hierarchy based
primarily on the extent to which an entity is bound to observe constraints imposed on the use
of the resources reported in governmental funds. These classifications reflect not only the
nature of the funds, but also provide clarity to the level of restriction placed upon fund balance.
Fund balance classifications are as follows:
Nonspendable – includes fund balance amounts that cannot be spent either because it is not in
spendable form or because of legal or contractual requirements. Nonspendable fund balance
of $20,981 pertains to security deposits.
Restricted – amounts that are constrained for specific purposes which are externally imposed
by creditors, grantors, contributors, or laws or regulations of other governments. Fund balance
of $200,843 is restricted for capital outlay at June 30, 2015.
Committed – amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action by the School's highest level of decision-making authority. The
School’s Board of Directors addresses these commitments through formal board action prior to
the School’s fiscal year end. The School had no committed fund balance amounts at June 30,
2015.
Assigned – amounts that are intended to be used for specific purposes that are neither
considered restricted or committed. Assignments can be made by the Board. The School had
no assigned fund balance amounts at June 30, 2015.
Unassigned – includes residual positive fund balance within the General Fund which has not
been classified within the other above mentioned categories. Unassigned fund balances may
also include negative fund balances for any other governmental fund if expenditures exceed
amounts restricted, committed, or assigned for those specific purposes.

-14-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies – continued:
The School uses restricted amounts to be spent first when both restricted and unrestricted fund
balance is available unless there are legal documents/contracts that prohibit doing this.
Additionally, the School would first use committed, then assigned, and lastly unassigned
amounts.
The School does not have a formal minimum fund balance policy, nor has it established any
stabilization arrangements within fund balances.
Budget and Budgetary Accounting - The School prepares its budget utilizing the modified accrual basis
of accounting. The schedule of revenues, expenditures, and change in fund balance - actual compared
to budget uses the budget adopted by the School.
Use of Unrestricted versus Restricted Resources - It is the School's policy to use restricted resources
before using unrestricted resources when both are available to pay expenses.
Cash and Cash Equivalents - Cash and cash equivalents consist of demand deposit accounts at June 30,
2015. For financial reporting purposes, cash and cash equivalents includes all demand deposit, savings,
and money market accounts, and certificates of deposits with maturities of less than 90 days.
Capital Assets – School-owned assets consist of leasehold improvements, computers, office furniture,
and equipment. Capital assets purchased in the governmental funds are recorded as expenditures at
time of purchase. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Capital assets are defined as assets with a cost of $1,000 or more. Donated capital assets
are recorded at fair market value at the date of donation. Depreciation is provided on capital assets as a
direct charge using the straight-line method over the estimated useful lives of the various classes of
depreciable assets ranging from three to five years.
See Note 4 regarding capital assets acquired by the management company exclusively or primarily for
use by the School in its operations. These assets are not reflected in these financial statements as they
were acquired and owned by the management company.
Revenue recognition – As noted above, per student funding is provided by the state-wide Florida
Education Finance Program (FEFP) through the District. Beginning July 2010, the District may only
withhold up to a 5% administrative fee for enrollment up to and including 250 students. For charter
schools with a population of 251 or more students, the difference between the total administrative fee
calculation on total enrollment and the amount of the administrative fee withheld may only be used for
capital outlay purposes. This funding is received on a pro-rata basis over a twelve-month period and is
adjusted for changes in full-time equivalent (FTE) student population.
State Revenue Sources - Revenue from State sources for current operations are primarily from the
FEFP administered by the Florida Department of Education under the provisions of Section 1011.60,
Florida Statutes. In accordance with this law, the Board determines and reports the number of FTE
students and related data to the Department.
Unearned Revenue – Unearned revenue represents Public Education Capital Outlay that has been
allocated to the School by the State of Florida but has not yet been approved for reimbursement by the
District.
-15-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies – continued:
The Department performs certain edit checks on the reported number of FTEs and related data and
calculates the allocation of funds to the School. The School is permitted to amend its original reporting
for a period of one year following the date of the original reporting. Such amendments may impact
funding allocations for subsequent years. The Department may also adjust subsequent fiscal period
allocations based upon an audit of the School's compliance in determining and reporting FTE and
related data. Normally, such adjustments are treated as reductions or additions of revenue in the year
when the adjustments are made.
The State provides financial assistance to administer certain categorical educational programs. Florida
Department of Education rules require that revenue earmarked for these programs be expended only for
the program for which the money is provided and require that the money not expended as of the close
of the fiscal year be carried forward into the following year to be expended for the same categorical
educational programs. The Department generally requires that categorical educational program
revenues be accounted for in the General Fund.
The State allocates gross receipt taxes, generally known as Public Education Capital Outlay money, to
local school boards on an annual basis. The boards are authorized to expend these funds only upon
applying for and receiving an encumbrance authorization from the Florida Department of Education.
Estimates – The preparation of financial statements in conformity with U.S. generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported
amounts and disclosures. Actual results may differ from those estimates.
Income taxes - The School is a not-for-profit corporation whose revenue is derived primarily from
other governmental entities. The School is exempt from state and federal income taxes under Section
501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes has been made in
these basic financial statements.
2. Cash and Cash Equivalents:
At June 30, 2015, the carrying amount of the demand deposits and cash on hand totaled $685,426.
As State of Florida Statutes and the School's policy require, all cash and cash equivalents are held at
financial institutions approved by the State Treasurer to hold public deposits in accordance with the
"Florida Security for Public Deposits Act", Chapter 280 Florida Statutes. This statute requires that
every qualified public depository institution maintain eligible collateral to secure the public entity's
funds. The minimum collateral to be pledged by an institution, the collateral eligible for pledge, and
reporting requirements of the qualified public depository to the State Treasurer is defined by the statute.
In the event of a failure of any member in the pool, the Public Deposit Security Trust Fund has a
procedure whereby the remaining member institutions would be responsible for covering any resulting
losses. Since the School's deposits are held in a qualified public depository, they are covered by the
collateral pool as the School had identified itself as a public entity at June 30, 2015.
The School maintains its cash accounts with one financial institution which is insured by the Federal
Deposit Insurance Corporation. As of June 30, 2015, the School had no uninsured cash balances with
that financial institution.

-16-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
3. Capital Assets:
Balance
July 1,
2014
Capital assets being depreciated:
Leasehold improvements
Furniture, fixtures and equipment

$

574,950 $
175,000
749,950

Less accumulated depreciation for:
Leasehold improvements
Furniture, fixtures and equipment

Total capital assets, net

Increases

220,214
74,663
294,877
$

455,073 $

-

Decreases
$

114,990
34,761
149,751
(149,751) $

Depreciation was charged to functions as follows:
Instruction - basic
Operation of plant

Balance
June 30,
2015

-

$

-

-

574,950
175,000
749,950

335,204
109,424
444,628
$

305,322

$

34,761
114,990
149,751

$

4. Commitments, Contingencies and Related Party Transactions:
Management Agreement - The School has entered into a management agreement with a management
company to provide for most of the School's resources and management services. Through December
31, 2014, the management agreement was with Community Education Partners, Inc. (CEP). As of
January 1, 2015, CEP assigned the management agreement to Accelerated Learning Solutions, Inc.
(ALS). The agreement commenced upon its execution and continues through June 2018. The
agreement renews automatically for additional, successive five (5) year terms unless either party
notifies the other party at least six months prior to the expiration of the then current contract period of
its intention not to renew the agreement. Under the terms of the agreement, the School is charged fees
for services of ninety-seven (97%) of the School's qualified gross revenues as defined by the
agreement. Qualified gross revenues include various federal, state and local source revenues with
certain exceptions. The qualified gross revenues do not include any federal or state awards that are a
direct reimbursement of expenditures previously incurred by the School. The Company is also entitled
to all grants and contributions not defined by the agreement within the terms of qualified gross
revenues.
In return for the above fees the Company shall be responsible for providing the educational model,
salaries for all personnel, costs for curriculum materials, textbooks, library books, facilities, computers
and other equipment, software, supplies, maintenance and certain capital improvements of the School.
The contract may be terminated by the School for non-renewal of the charter with the District, and for
breaches of contract terms which have not been cured within ninety days written notice at the time of
the contract breach. The contract may be terminated by the Company for fiscal year operating deficits
(excluding the first year of operations), failure to pay fees due to the Company, material changes in
federal or state funding, damages to the school facility that make School operations unfeasible,
uneconomical or impractical as long as such notification comes within sixty (60) days after the
occurrence that caused such situation. If the Contract is terminated by the Company after the
beginning of the school year, the termination will not be effective until the end of that school year.
-17-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
4. Commitments, Contingencies and Related Party Transactions - continued:
Upon termination of the agreement, the School has the right to have all real and personal property
leases related to the School assigned to and assumed by the School, as long as the lease permits
assignment. The School also has the right to purchase all personal property and leasehold
improvements owned by the Company and used exclusively or primarily in connection with School
operations at the asset's "net book value", which shall be calculated based on the straight line method of
depreciation. The useful lives assigned for this calculation are three (3) years for computers and
software; five (5) years for furniture, fixtures and textbooks; and ten (10) years for buildings and
leasehold improvements. There are no terms specified in the agreement for this purchase option.
Assets with an original cost of $477,532 and a net book value of $252,081 as of June 30, 2015 have
been identified by the Company to be used exclusively or primarily in connection with School
operations. Activity related to capital assets used by the School for the year ended June 30, 2015 was
as follows:

Leasehold improvements
Computers and software
Furniture, fixtures and equipment

$

$

Capital
Accumulated
Net Book
Assets
Depreciation
Value
31,316 $ 155,128
186,444 $
173,902
143,384
30,518
117,186
50,751
66,435
225,451 $ 252,081
477,532 $

For the year ended June 30, 2015, the Company provided to the School its resources and management
services as outlined in the management agreement. The amount charged by the Company is
$3,478,379 representing the 97% management fee, and is comprised of identifiable direct functional
expenses/expenditures of $1,719,556, indirect management company expenses/expenditures of
$214,024, and a management fee of $1,544,799. The allocated indirect management company
expenses/expenditures are included in school administration in the financial statements.
All employees are employees of the management company and benefits are its responsibility.
Management company employees may participate in a defined contribution plan that is qualified under
Section 401(k) of the Internal Revenue Code, sponsored by the management company. Participants
may contribute a portion of their compensation subject to a maximum annual deferral contribution.
The School made no matching contributions to the plan for the year ended June 30, 2015. The School
provides no post-retirement benefits to retired employees.
Telecommunications Funding - The School reports its share ($55,652) of rebates on
telecommunications purchases as telecommunications funding. Payments are received in consort with
other schools managed by ALS Education, Inc. (formerly Community Education Partners, Inc.), and
Accelerated Learning Solutions, Inc. from the Schools and Libraries portion of the United Services
Fund authorized by the Telecommunications Act of 1996 (E-Rate).

-18-

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
4. Commitments, Contingencies and Related Party Transactions - continued:
Lease commitment - The School entered into a five year lease for the facilities of the School. The lease
began in August 2012 and through December 2013 payments approximated $11,736 per month,
including sales tax. Commencing January 2014, the monthly rent increased to $15,197, including sales
tax. The lease also calls for monthly common maintenance charges ($4,694 a month through December
2013, increasing to $5,919 in January 2014) to be assessed in addition to other charges including
applicable taxes. In addition, the lease contains four renewal options for five years each, with prior
approval of the landlord. Rents will increase 10% at the start of each five-year renewal. ALS
Education, Inc. is a guarantor on the lease.
Total lease expense totaled $182,169. Common area maintenance charges (CAM) related to the lease
were $71,031.
Future rental commitments under the School's facility lease, including CAM and sales tax, are as
follows:
Year
Ended
June 30,
2016
2017
2018

Amount
$ 253,399
253,399
21,117
$ 527,915

5. Long-term Debt:
Loan Payable – In June 2012, the School entered into a $574,950 loan payable with the landlord of its
facility to finance leasehold improvements. Terms call for monthly payments of principal and interest
(7%) of $11,385, with a final maturity date of July 30, 2017, and is guaranteed by ALS Education, Inc.
The balance of the loan payable at June 30, 2015 was $264,122. The following is a summary of
changes in long-term obligations during the fiscal year:

Balance
June 30,
2014
Loan payable

$ 377,890

Increases

Decreases

Balance
June 30,
2015

$

$ 113,768

$ 264,122

-

Due
Within
One Year
$ 121,992

The following is the debt service requirements on the loan payable:

Year ending
June 30,
2016
2017
2018

Principal
$
121,992
130,811
11,319
$
264,122
-19-

Interest
$ 14,624
5,805
66
$ 20,495

$

$

Total
136,616
136,616
11,385
284,617

 SUNSHINE HIGH SCHOOL – GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
NOTES TO FINANCIAL STATEMENTS
6. Risk Financing:
The School is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; and natural disasters, illnesses of and injuries to employees. Some of this risk is
subject to limitations imposed by sovereign immunity and Florida law applicable to tort settlements.
The School obtains insurance policies from commercial companies for property and general liability, boiler
and machinery, flood, general umbrella, workers compensation, bond payment, and certain employee
accident and health insurance. There have been no significant reductions in insurance coverage during the
year ended June 30, 2015. Settled claims resulting from these risks have not exceeded commercial
coverage for the past three years.
It is the School's policy to report liabilities when it is probable a loss has occurred and the amount of the
loss can be reasonably estimated. At June 30, 2015, no claims meeting this definition are known to exist,
nor are any incurred but not reported (IBNR) claims estimated to exist. Accordingly, no liabilities
resulting from claims or uncertainties are reported in the financial statements at June 30, 2015.
7. Concentrations and Dependence on Management Company:
The School has no employees and owns certain leasehold improvements, computers and equipment
used by students. Instead, the Company supplies the educational model, all employees and
substantially all management services to the School. The Company owns some of the capital assets
used by the School. In addition, the Company researches, negotiates, arranges for, and manages all
purchases, including insurance, supplies, etc. Substantially all of the School's accounting transactions,
except for some minor local expenses, are managed and controlled by the Company through a single
integrated accounting system.
Since the School receives all of its administrative and management support from the Company, a
reduction in the levels of administrative and management support would have a significant effect on the
School’s activities and it may not be able to continue in its present form.
8. Expenditures over Appropriations:
The School experienced an excess of expenditures over appropriations by $421,607, primarily due to
instruction, pupil personnel services, school administration, plant operations and maintenance, and an
increased management company fee.
9. Interfund Transfers:
Transfers of resources from a fund receiving revenue to the fund through which the resources are to be
expended are recorded as transfers and are reported as other financing sources (uses) in the
governmental funds. The transfer of $110,597 from the General Fund to the Capital Outlay Fund is for
FEFP funding restricted for capital outlay expenditures.
10. Subsequent Events:
Management has evaluated events and transactions for potential recognition or disclosure through
September 24, 2015, the date on which the financial statements were available to be issued.

-20-

 REQUIRED SUPPLEMENTARY
INFORMATION
(RSI)
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGE IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND (PAGE 21)

OTHER REPORTS

 SUNSHINE HIGH SCHOOL - GREATER ORLANDO CAMPUS, INC.
d/b/a Sunshine High School
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGE IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
for the year ended June 30, 2015
Budgeted
Amounts
Original
and Final
General Fund
Revenues:
Federal sources
State sources
Local sources
Telecommunications funding
Total revenues

$

Expenditures:
Instruction - basic
Instruction - exceptional
Pupil personnel services
School board
School administration
Fiscal services
Transportation services
Plant operations and maintenance
Management company fee
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
before other financing sources and uses
Other financing sources (uses):
Transfers in (out)
Excess of revenues over expenditures
and tranfers in (out)
Fund balance at beginning of year
Fund balance at end of year

$

3,441,548
43,544
3,485,092

Variance
Favorable
(Unfavorable)

Actual
Amounts

$

4,142
3,957,560
2,446
55,652
4,019,800

$

4,142
516,012
2,446
12,108
534,708

828,929
182,125
15,996
604,866
12,000
80,000
164,385
1,378,105

896,365
7,239
238,301
22,680
662,812
10,355
67,278
238,188
1,544,799

113,768
22,852
3,403,026

113,768
22,848
3,824,633

82,066

195,167

113,101

-

(110,597)

(110,597)

82,066

84,570

54,159
136,225

$

54,159
138,729

(67,436)
(7,239)
(56,176)
(6,684)
(57,946)
1,645
12,722
(73,803)
(166,694)
4
(421,607)

2,504

$

2,504

Note 1. Budgets are prepared and original budgets are adopted annually for certain governmental funds in
accordance with procedures and time intervals prescribed by the Board of Directors (Board) of the
School. During the fiscal year ended June 30, 2015, the Board adopted an annual budget for the
General Fund. The school is not required to submit its budget to any regulatory agencies.
Note 2. Appropriations are controlled at the fund level and may be amended at any Board meeting prior to
the due date of the annual financial report. Budgets are prepared using the same modified accrual
basis as is used to account for actual transactions.
-21-

 HOLLAND & REILLY
C E RTI F I E D PUBLIC ACC OUN T AN TS
6 01 N ORTH FER N C R EE K
S UIT E 2 00
OR L AN DO , FL ORIDA 3 2803
(40 7 ) 8 9 4 - 6803

D AVID S. H O L LA:-.: D , CPA
THO :'\•IAS F. IU:Il.LY, C PA

( 4 0 7) 8 9 6 - 3 0 4 4 FAX

et:ltT it'JI•l > l'l lllUC ACCOI 'NTASTS

CJ::Il'lltlED I'I 'IILI C ACCOI l:'\TANT S
ASSOCJK n 0:-1 OF
C' Elt'l1t11ED t 'RAI 'D EXAMIN!-:R~

INDEPENDENT AUDITORS' 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

To the Board of Directors of
Sunshine High School - Greater Orlando Campus, Inc.
d/b/a Sunshine High School
We have audited, 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, the financial statements of the governmental activities and each
major fund of Sunshine High School - Greater Orlando Campus, Inc. d/b/a Sunshine High School (the
School), a component unit of the District School Board of Orange County, Florida, as of and for the year
ended June 30, 2015, and the related notes to the financia l statements, which collectively comprise the
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 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 opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the School's internal control. Accordingly, we do
not express an opinion on the effectiveness of the School's internal control.
A deficiency in internal control ex ists 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.

-22-

 Compliance and Other Matters

As part of obtaining reasonable assurance about whether the School's financ ial 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 patt 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.

Orlando, Florida
September 24, 2015

-23-

 HOLLAND & REILLY
CERTIFIED PUBLIC ACCOUNTANTS
601 NORTH FERN CREEK

SUITE 200
OR L ANDO, FLORIDA 32803
AMEHICA..'"•.J ll\: ~~JTrt rn: 01''

(407) 894-6803

D.'\ VID S. HOLL\N D , CPA
THOMAS F. REILLY, CPA

(407) 896 -30 44

To the Board of Directors of
Sunshine High School - Greater Orlando Campus, Inc.
d/b/a Sunshine High School

FAX

Clo:HTIFIED I'I 'JILl(' ACCOl :;-ITANTS
FLORIDA IN ~"!Tfl r n ; OF
CLIITIFIED I' lJIILIC AC'COI :!'CIT\TS
ASSOCL'\110!'< OF
CE..RTIFIIED Fl!Al iD E-XAMI NERS

We have audited the financial statements of Sunshine High School- Greater Orlando Campus, Inc. d/b/a
Sunshine High School, as of June 30, 2015 and for the year then ended and have issued our repoti thereon
dated September 24, 2015.
We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. We have issued our Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is dated
September 24, 2015, should be considered in conjunction with this management letter. Additionally, our
audit was conducted in accordance with Chapter I 0.850, Rules of the Auditor General.
The Rules of the Auditor General (Section 10.854(l)(e)) require disclosure in the management letter of the
following matters if not already addressed in the auditors' report on compliance and internal controls:
I) Any recommendations to improve financial management.
2) Violation of provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to
have occurred, that have an effect on the financial statements that is less than material which warrant
the attention of those charged with governance.
3) For matters that do not warrant the attention of those charged with governance, the following may be
reported based on professional judgment:
a) Violations of provisions of contracts or grant agreements, fraud or abuse,
b) Deficiencies in internal control that are not material weaknesses or significant deficiencies.

There was one matter that came to the attention of the auditor, that, in our judgment, is required to be
reported. See Comment 2015-1 on page 25.
Based on our audit procedures performed we determined that the School did not meet any of the conditions
described in Florida Statutes Section 218 .503(1).
The auditors applied financial condition assessment procedures. It is management's responsibility to
monitor the School's financial condition, and our financial condition assessment was based in part on
representations made by management and the review of financial information provided by same.
We determined the School maintained on its website the information specified in Section 1002.33(9)(p),
Florida Statues.
See status of prior year comments on page 25 .
This management letter is intended solely for the information of Sunshine High School - Greater Orlando
Campus, Inc., d/b/a Sunshine High School, and management, the District School Board of Orange County,
Florida and the State of Florida Office of the Auditor General, and is not intended to be and should not be
used by anyone other than these specified parties.
Orlando, FL
September 24, 2015
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 AUDITORS’ COMMENTS – CURRENT YEAR

Compliance
None
STATUS OF PRIOR YEAR COMMENTS
2014-1 Need to Form Student Advisory Council
The School did form a Student Advisory Council (SAC), but neglected to forward the names to the District
School Board of Orange County by November 1, 2014 as required by Section 8B)5e of the Charter.
Although the School substantially complied with the requirement to form a SAC, we recommend the names
of the SAC members be forwarded to Orange County Public Schools by November 1 in order to be in full
compliance with the Charter.

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