LIVE OAK CHARTER SCHOOL

(1)

LIVE OAK CHARTER SCHOOL

100 Gnoss Concourse Petaluma, CA 94928•(707) 762-9020

Agenda for the Regular Meeting of the Board of Directors

Live Oak Charter School Multi-purpose room

January 14, 2016

Mission & Program

To ensure the humanity and potential of its students through an education resonant with their unfolding awareness and

capacities, and supportive of the full and integrated development of body, heart, and mind. LOCS provides a K-8

program inspired by Waldorf education to children and families of Petaluma and surrounding communities. Waldorf

inspired education is a developmental approach to learning that cultivates the innate capacities of each child through

age appropriate curriculum. Live Oak educates the whole child – head, heart, and hands, through an education that

integrates each child’s creative, intellectual, emotional, physical and social domains. Live Oak offers an

interdisciplinary liberal arts program where art, music, and movement are integrated with core academic instruction.

Exploration of the natural world, human culture, language and mathematics enlivens curiosity which is the foundation

of intellectual growth, conceptual flexibility, empathy and sense of connectedness.

OPENING (7:00 pm)

PUBLIC COMMENT

This portion of the meeting is set aside for members of the audience to make comments or raise

issues that are not specifically on the agenda. These presentations are limited to three minutes per presentation and the total time

allotted to non-agenda items will not exceed fifteen minutes.

OPEN SESSION

A. Approve the agenda

B. Reports

1. Committee reports

2. Executive Director Report

C. Consent agenda

All matters listed under Consent Agenda are considered to be routine, and all will be enacted by one motion and vote.

There will be no separate discussion of these items unless a Board member requests items to be removed from the

Consent Agenda for separate action.

1. Board Minutes: December 10, 2015

2. Monthly Financials for December 2015

D. The board will consider the following for discussion and approval

1. 2014-2015 Audit

2. Dissolution of 3C Board committee

E. The board will consider the following for discussion

1. Review of the Bylaws of Live Oak Charter School

2. Review of 2014-2015 LCAP

(2)

CLOSED SESSION

F. Pursuant to Government Code 54956.8

Conference with Real Property Negotiator

Property: 100 Gnoss Concourse, Petaluma; Negotiating Parties: Sonoma-Marin

Fair; under negotiation: price and terms

G. Pursuant to Government Code 54957: Public Employee Contracts

H. Pursuant to Government Code 54957.8: Planning

OPEN SESSION

(3)

Live Oak Charter School

Executive Committee Meeting Notice

Live Oak Charter School

Minutes

January 5, 2016

Present: Sarah Grossi, Karna Dawson, John Gerber, Shaina Ferraro, Matthew Morgan

Also present: one parent

No public comment

1. 2015-2016 parent survey topics and questions reviewed

(4)

LIVE OAK CHARTER SCHOOL

100 Gnoss Concourse Petaluma, CA 94928•(707) 762-9020

!

Agenda for the Regular Meeting of the Board of Directors

Live Oak Charter School Multi-purpose room

December 10, 2015

!

OPENING (7:00 pm)

!

Present:

Karna Dawson (KD), Chair

Sarah Grossi (SG), Vice Chair

Josh Kizner (JK), Treasurer

Shaina Ferraro (SF), Secretary

John Gerber (JG), Director

Cliff Schlueter (CS), Director

Erin Wrightsman (EW), Director

Matthew Morgan (MM), Executive Director

!

PUBLIC COMMENT (7:03 pm)

!

OPEN SESSION (7:05 pm)

!

A. Approve the agenda

JK moved to approve- all approved

!

B. Reports

1. Committee reports

Executive - KD reported that the committee did not met

Finance - JK reported that the committee met

C3 - EW reported that the committee did not meet, but several community events

took place since last meeting

2. Executive Director Report

!

C. Consent agenda (7:45 pm)

1. Board Minutes: November 12, 2015

2. Monthly Financials for November 2015

SG moved to approve- all approved

!

D. The board will consider the following for discussion and approval

1. First Interim 2015-2016 budget

SG moved to approve- all approved

2. Election of officers for the Foundation

SG moved to table the dissuasion until after E.1.- all approved

!

E. The board will consider the following for discussion (7:30pm)

1. Independent study policy

2. Election of officers for the Foundation are as follows:

Debbie Elam-Hupp, Chair

Corryn Degelabert, Auction and Vice-Chair

Carolina Jensen, Treasurer

(5)

Morena Carvalho, Member

Richard Deering, Member

Brian Ross, Member

CS moved to approve- all approved

3. School calendar- the preliminary results of the parent calendar survey were discussed

4. Annual parent survey for 2015-2016

5. Response to intervention (RTI) program update

EW moved to table to discuss before June 2016- all approved

!

CLOSED SESSION (9:28 pm)

!

F. Pursuant to Government Code 54956.8

Conference with Real Property Negotiator

Property: 100 Gnoss Concourse, Petaluma; Negotiating Parties: Sonoma-Marin

Fair; under negotiation: price and terms

!

G. Pursuant to Government Code 54957: Public Employee Contracts

!

H. Pursuant to Government Code 54957.8: Planning

!

OPEN SESSION (10:10pm)

I. Report on actions taken in closed session

No action taken

!

ADJOURNMENT (10:12pm)

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(18)

Hosaka, Rotherham & ComPanY

Certifled

Public

Accountants

James A, Rotherham, CPA CEO & Managing Partner

Roy T. Hosaka, CPA

Retired

James C. Nagel, CPA

Retired

hrrcpa.com

LIVE

OAK

CHARTER SCHOOL

tN

DEPENDENT AUDITORS'

REPóRT

FOR

THE FISCAL YEAR ENDED

JUNE 30,

2015

CHARTER SCHOOL #0382

(19)

LIVE

OAK

CHARTER SCHOOL

INTRODUCTORY

SECTION

(20)

LIVE

OAK

CHARTER SCHOOL

TABLE

OF

JUNE

30,

201 5

INTRODUCTORY

SECTION

Table

of Contents

FINANCIAL

SECTION

I

ndependent

Auditors'

Report

Statement of Financial

Position

Statement

of

Activities

Statement

of

Cash

Flows

Notes to

the Financial

Statements

SUPPLEMENTARY INFORMATION

SECTION

Organization

Schedule

of

Average

Daily

Attendance

Schedule of lnstructional Time

Statement of Functional Expenses

Reconciliation

of

Annual Financial and Budget Report

with

Audited Financial

Statements

OTHER

INDEPENDENT AUDITORS' REPORTS SECTION

lndependent Auditors'

Report on lnternal Control Over Financial Reporting and

on

Compliance and Other Matters Based on

an

Audit of Financial Statements

Performed

in

Accordance

with

Government

Auditing

Standards

lndependent Auditors' Reporl

on State Compliance

FINDINGS

AND

RECOMMENDATIONS SECTION

Schedule

of

Audit Findings and Questioned Costs

Summary Schedule of

Prior

Audit Findings

Page

Number

I

2-3

4 5 6

7 -13

14 15 '16 17 18 19 20

21

-22

23

-24

25 26

-27

(21)

LIVE

OAK

CHARTER SCHOOL

FINANCIAL

SECTION

JUNE

30, 2015

(22)

-1-Hosaka, Rotherham & Company

Cerlified

Public

Accountants

James A. Rotherham, CPA CEO & Managing Partner

Roy T. Hosaka, CPA

Retired

James C. Nagel, CPA Ret¡red

hrccpa.com

Board of Directors

Live Oak Charter School

Petaluma, California

Report on the Financial Statements

We

have audited

the

accompanying financial statements

of

Live

oak

Charter School

(a

nonprofit

organization),

which

comprise

the

statement

of financial

position

as of June 30, 2015,

and

the

statements

of

activities ánd cash flows

for the

fiscal year then ended, and

the

related notes

to

the

financial statements.

M a n a g em

enf

's Respons

i b i t

ity

f o

r

th e F i n a n c

ial

Sfafemen

fs

Management

is

responsible

for the

preparation

and fair

representation

of these

financial statements

in

accordance

with

accounting principles generally accepted in

the

United States of America;

this

includes

the

design, lmplementatioñ,'and'mainienance'of internal control relevant

to

the

preparation

and

fair

r"pr"runi"iion

bf

financial siatements

that are free from

material misstatement, whether due

to

fraud

or

error.

Au d ito

r's

ResPonsi

b i I

itY

Our

responsibility

is

to

express

an

opinion

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

stanáards applicable

to financial audits

contained

in

Government Auditing

Slandards,

issued by

the

Comptroller Gäneral

of the

United States. Those standards require that

we

plan

and

peform ihe audit to

obtain reasonable assurance about whether

the

financial statements are free

from

material misstatement.

An audit

involves performing procedures

to obtain

audit evidence about

the

amounts and disclosures

in

the

financial statements.

t-nè

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

or considers

internal

control

relevant

to the

entity's

tements in order

to

design audit procedures that

are

pose of expressing

an

opinion

on

the

effectiveness of

s no

such opinion.

An audit

also includes

evaluating

and

the

reasonableness

of

significant

accounting

aluating

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

opinion.

INDEPENDENT AUDITORS'

REPORT

(23)

¡NDEPENDENT

AUDITORS' REPORT

Page

2

Opinion

ln

our opinion, the financial statements

referred

to

above present fairly,

in all

material

respects,

the

financial position of Live Oak Charter School, as of June

30,

2015, and the changes in its

net

assets

and

its cash flows for the fiscal year then ended in accordance with accounting principles generally

accepted

in

the

United States

of

America.

Other Matters

Other

information

Our audit

was

conducted

for the

purpose of forming

an

opinion

on the

financial statements

as

a

whole.

The

supplementary information

as listed

in

the

table

of

is

presented

for

purposes

of

additional

analysis

and is not a

required

part of the

financial statements.

Such

information is

the

responsibility of

management and

was

derived

from and

relates directly

to the

underlying accounting and other

records

used

to

prepare the financial statements. The information has been subjected to the auditing

procedures

applied

in

the audit

of

the financialstatements

and

certain additionalprocedures,

including

comparing

and

reconciling such information directly

to the

underlying accounting and other records used

to

prepare

the

financial statements

or

to the

financial statements themselves,

and

other additional procedures

in

accordance

with

auditing standards generally accepted in

the

United States of America.

ln our

opinion,

the information

is

fairly stated

in

all material respects in

relation to the

financial statements

as

a

whole.

Other Reporting Required by Government

Auditing

Standards

ln

accordance

with

Goyernment Auditing Sfandards,

we

have also issued

our

report dated December

2,

2015,

on our

consideration

of

Live Oak Charter 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 Sfandards in considering Live Oak Charter

School's

internal control

over

financial reporting

and compliance.

JJoool,o,

R"tkrl**

fl

&r,p""ü

San Diego, California

December

2,2015

(24)

-3-LIVE OAK CHARTER SCHOOL

STATEMENT OF FINANCIAL

POSITION

JUNE

30,2015

ASSETS

Current

assets:

Cash and cash equivalents (Note

3)

Accounts receivable

(Note 4)

Total current assets

Fixed assets,

net

of depreciation

(Note 6)

TOTAL ASSETS

LIABILITIES

AND

NET

ASSETS

Current

liabilities:

Accounts

payable

Due

to grantor government

Total current liabilities

Net assets:

Unrestricted

$ 629,551 139,013 768,564

39,1 23

$

807,687

175,827

8,442

184,269

623,418

$

807,687

$

Total

net

assets

TOTAL

LIABILITIES

AND

NET

ASSETS

The accompanying

notes are an

integral

part of

these financial

statements.

(25)

-4-LIVE

OAK

CHARTER SCHOOL

STATEMENT

OF

ACT¡VITIES

FOR

THE FISCAL YEAR

ENDED

JUNE

30, 2015

Unrestricted

Temporarily

Restricted Total REVENUES

Revenue

limit sources:

State apportionments

Education protection account

ln-lieu of

property

taxes

State revenues

Local

revenues:

lnterest

Fees and contracts

Other local revenue

Total revenues

Net assets released from restriction

Total revenues and other support

EXPENSES

Program

services: Education

Support

services:

Management and

general

Total expenses

$

398,637

$

362,706

1,079,397 319,786 $ 398,637 362,706 1,079,397 319,786

3,1 63 79,808 3,163

79,808

228,860

2,472,357

5

255 2,477,612

2,007,596

452 326

228

860 2,472,357 (5,255)

(5,255)

2,472,357

2,007,596

452,326

2,459,922

CHANGE IN

NET

ASSETS

17,690 (5,255)

NET

ASSETS, BEGINNING

OF

YEAR

605

728

5

255

NET

ASSETS,

END OF

YEAR

$

623,418 $

The accompanying

notes are

an integral

part of

these financial

statements

-5-2,459,922

12,435

(26)

LIVE OAK CHARTER SCHOOL

STATEMENT

OF

CASH FLOWS

FOR

THE FISCAL YEAR

ENDED

JUNE 30,

2015

CASH FLOWS FROM OPERATING ACTIVITIES:

Change in

net

assets

Adjustments to reconcile change in

net assets to net

cash provided

by

operating

activities:

Depreciation and amortization

(lncrease) decrease

in

operating

assets:

Accounts receivable

lncrease (decrease)

in

operating

liabilities:

Accounts

payable

Due

to grantor government

Net

cash flows provided

by

operating

activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase

of

fixed assets

NET

CHANGE

IN

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING

OF

YEAR

CASH AND CASH EQUIVALENTS,

END OF

YEAR

The accompanying

notes are

an integral

part of

these financial

statements

-6-$

12,435

7,585

59,231

14,241 (13,970) 522 79

(21,579)

57,943

(27)

LIVE OAK CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30, 2015

NOTE

1

-

ORGANIZATION AND

MISSION

Live

Oak

Charter School (Organization)

was

incorporated

on February'16, 2001,

under

the

laws of

the State

of

California's

nonprofit

public benefit

corporation

and

the

Organization

was granted

its

charter pursuant

to

the terms of

the

Charter Schools

Act of

1992, as amended. This charter,

among

other matters,

calls

for the Petaluma

City

School District

and

the Organization to enter into

a mutually

agreeable

memorandum

of

understanding, regarding

the funding

entitlements

of the

Organization,

pursuant

to

Education Code Section

47612

and 47613.5,

to

define the

operational

and

oversight

arrangements between

the

Petaluma City School District, and

to

define and resolve other matters

of

mutual

interest.

The mission

of

the Organization

is

to provide public school students

of

Southern Sonoma

County with

a

K-B

whole-child program inspired

by Waldorf

Education.

The

Organization

embraces

a

developmental

approach

to

learning that strives

to

bring forth from each child his

or

her

innate

capacities through an age-appropriate curriculum. The Organization

seeks

to educate

the

whole

child

-

head, hands

and

heart

_-

through an education

that

cultivates and integrates each child's

creative,

intellectual, emotional, physical, and social capacities. The Organization offers an artistically

rich and

experientially-based

program that enlivens student curiosity about

the

natural world and

human

culture

as the

foundation

for

fostering academic

achievement.

NOTE

2 -

SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

A. Financial statement

presentation

The financial statements are presented

in

conformity with Accounting Standards

Codification

(ASC) 958-205, Not-For-Profit

Entities

_-

Presenf

ation

of

Financial Sfafemenfs. Under

ASC

958-205,

the Organization

reports information regarding

its

financial position and activities

according

to

three classes of

net assets:

Unrestricted net assets:

Unrestricted

net assets are available

to

support

all

activities

of

the

Organization,

and

are

not subject

to

donor-imposed stipulations.

These generally result

from

revenues generated

by

providing services, receiving

unrestricted contributions,

and

receiving

interest

from

investments, less expenses incurred

in

providing program-related services,

raising

contributions, and performing

administrative functions.

Temporarilv restricted net assets: Net assets

that are

subject

to

donor-imposed stipulations

that

will be met either by actions

of

the

Organization

and/or the

passage

of time. When

a

donor

restriction expires,

that is,

when

a

stipulated

time

restriction

ends

or

purpose restriction

is

accomplished, temporarily restricted

net

assets are

reclassified

to

unrestricted

net

assets

and are

reported in the

statement

of

activities

as net assets

released

from

restrictions. There

were

no

temporarily restricted

assets

as

of

June

30, 2015.

Permanentlv restricted net assets: Net assets that are subject

to

donor-imposed stipulations

that

the

restrictions

be

maintained permanently

by the

Organization. Generally,

the

donors

of

these

assets permit the Organization

to

use

all or part

of

the

income earned

on

the related

investments

for general or specific

purposes.

There were no

permanently restricted assets

as of June

30,

2015.

(28)

-7-LIVE

OAK

CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30, 2015

NOTE

2 -

SUMMARY OF

STGNtFTCANT

ACCOUNTTNG

pOLtCtES

(CONTTNUED)

B. Accounting method

- basis of accounting

The

financial statements were prepared

in

accordance

with

accounting principles

generally

accepted in the

United States

of America as

applicable

to

not-for-profit organizations. Basis

of

accounting refers

to

when revenues and expenses

are

recognized in

the

accounts and

reported

on the financial

statements.

Basis

of

accounting related

to

the timing

of

measurement

made,

regardless

of the

measurement

focus applied,

The

Organization uses

the

accrual basis

of

accounting. Revenues are recognized when they are earned and expenditures are recognized

in

the accounting period

in

which the liability

is incurred.

C. Use of estimates

The

preparation

of

financial statements

in

conformity

with

accounting principles

generally

accepted

in the

United States

of

America requires management

to

make estimates

and

assumptions

that affect certain

reported amounts

and disclosures.

Accordingly,

actual

results

could differ

from

those

estimates.

D. lncome

taxes

The Organization

is

exempt from

income

taxes under lnternal Revenue Code

Section

501(c)(3).

lt

is,

however,

subject

to

income

taxes from activities

unrelated

to

its

tax-exempt purpose.

The

Organization

uses

the

same

accounting methods

for

tax

and

financial

reporting.

Generally accepted accounting principles (GAAP) provides accounting and disclosure

guidance

about

positions

taken by an entity in its tax

returns

that might be

uncertain. Management

has

considered its

tax

positions

and

believes

that all of the

positions

taken in its federal and

state

exempt organization

tax

returns

are

more likely

than

not

to

be sustained

upon

examination.

The

Organization's

returns

are

subject

to

examination

by

federal

and

state taxing

authorities,

generally

for

three years

and four

years, respectively,

after

they

are filed,

E. Cash

and

cash

equivalents

Cash

and cash equivalents are from time

to

time variously composed

of

cash

on

hand,

cash

in

banks, and liquid

investments

with original maturities

of

three

months

or

less,

F. Fixed

assets

Fixed assets

are

recorded

at

cost and

depreciated

under

the

straightline method over

their

estimated useful lives

of

5 to

10 years.

Repair and maintenance costs, which

do

not extend

the

useful lives

of

the

asset, are charged

to expense.

The cost of assets sold

or

retired and

amounts

of

accumulated depreciation

are

eliminated

from the

accounts

in the year of

disposal,

and

any

resulting gain

or

loss is included

in

the earnings,

Management has elected to

capitalize

and depreciate all assets costing $5,000 or more; all other assets are charged to expense

in the

year

incurred.

(29)

-8-LIVE

OAK

CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30, 2015

NOTE

2 -

SUMMARY OF

StGNTFICANT ACCOUNTTNG

POLtCtES

(CONTTNUED)

G,

Revenue sources and

recognition

The

Organization

receives

Federal,

State and local

revenues

for the

enhancement

of

various

educational programs. This assistance is generally received based

on

applications submitted

to

and approved

by

various granting

agencies.

The

Organization primarily receives

the funds from

California Department

of

Education

(CDE),

Amounts received from the CDE are recognized

by

the

Organization based on

the

average

daily

attendance (ADA) of

students.

The Organization recognizes Federal Revenue to the extent that eligible expenditures have

been

incurred.

Revenue

that is

restricted

is

recorded

as an

increase

in

unrestricted net assets if

the

restriction

expires in

the

reporting period in which

the

revenue

is

recognized.

All

other restricted

revenues

are reported as increases

in

temporarily restricted

net assets.

H,

Functional allocation

of expenses

The costs

of

providing

the

program services have been summarized on a functional basis

in the

statement

of

activities. Accordingly, certain

costs have been allocated among

the

program

services based

on

employees'

time

incurred

and management's estimates

of

the

usage

of

resources.

NOTE

3 -

CASH AND CASH EQUIVALENTS

A. Cash

and cash

equivalents

Cash

and

cash equivalents

at

June

30, 2015,

consisted

of

the

following

Concentration of

risk: Pooled funds:

Cash

in

County Treasury

Deposits:

Cash

in banks

Cash

in

revolving

fund

Total cash and cash equivalents

$ 605

825

18,726 000

5

$

629,551

(30)

-9-LIVE

OAK

CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30, 2015

NOTE

3 -

CASH AND CASH

EQUTVALENTS (CONTTNUED)

B. Cash

in

County

Treasury

The

Organization maintains substantially

all

of

its cash in the

County

Treasury as part of

the

common investment pool ($605,825

as of June 30, 2015).

The

fair

value

of the

Organization's

portion

of

this

pool as

of

_{that date, as provided by the pool sponsor, was $605,886.}

Assumptions

made in

determining

the fair value of

the

pooled

investment

porlfolios are

available

from

the

Sonoma County

Treasu rer.

The county is restricted by Government Code Section 53635

pursuant

to

Section

53601

to

invest

in time

deposits,

U.S.

Government securities,

state

registered

warrants,

notes

or

bonds,

State

Treasurer's investment pool, bankers' acceptances, commercial paper, negotiable certificates

of

deposit, and

repurchase

or reverse repurchase

agreements.

C. Cash

in banks

Cash balances held

in

revolving

fund are

insured

up to

$250,000

by

the

Federal

Deposit

lnsurance Corporation (FDIC). The Organization maintains

its

cash in bank deposit accounts

that

at

times may exceed federally insured limits. The Organization has

not

experienced any

losses

in

such accounts,

At June

30, 2015,

the

Organization had

no

amounts

in

excess

of

FDIC

insured

limits.

NOTE 4

-

ACCOUNTS RECEIVABLE

Accounts receivable

at

June

30,2015,

consisted

of the following

Revenue limit

sources:

State apporlionments

ln-lieu of property

taxes

State

revenues

Local

revenues: Others

Total accounts receivable

$

92,952

3,623 39,483

2,955

$

139,013

NOTE

5. EMPLOYEE RETIREMENT

SYSTEMS

Qualified employees

are

covered under multiple-employer defined benefit pension plans

maintained

by

agencies

of the State

of

California. Certificated employees

are

members

of the

State

Teachers'

Retirement System (STRS), and classified employees

are

members of

the

California Public Employees'

Retirement System (CaIPERS).

(31)

-LIVE

OAK

CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30,2015

NOTE

5 - EMPLOYEE

RETTREMENT

SYSTEMS

(CONTINUED)

Plan

Description

and

Funding Policy

STRS

Plan

Description

The

Organization

contributes

to

the

State Teachers' Retirement System (STRS),

a

cost-sharing

multiple-employer public employee retirement system defined benefit pension plan administered

by

STRS.

Plan

information for STRS is

not publicly available.

The plan provides

retirement,

disability

and

suwivor

benefits

to

beneficiaries. Benefit provisions are established by State statutes, as

legislatively

amended, within

the

State Teachers' Retirement Law. According

to

the

most recently

available

Comprehensive Annual Financial Report

and

Actuarial Valuation Report for the year ended June

30,

2014, total plan assets are $179.7 billion, the total actuarial present value

of

accumulated

plan

benefits is $288,0 billion, contributions from

all

employers totaled $2.2 billion, and

the

plan is

68.5%

funded. The Organization did

not

contribute

more

than

5% of the

total contributions

to

the

plan,

Copies of

the

STRS annual

financial

reports may

be

obtained

from

STRS, 7667 Folsom

Boulevard,

Sacramento,

CA 95826 and

www.calstrs.com.

Fundinq

Policy

Active plan members are

required

to contribute 8.15%

of

their salary

and

the Organization

is required

to

contribute

an

actuarially determined

rate.

The

actuarial methods

and

assumptions used

for

determining

the rate are those adopted by the STRS Teachers'

Retirement

Board. The

required

employer contribution rate

for fiscal year

2014-2015

was

8.88%

of annual

payroll.

The

contribution

requirements of

the

plan members are established by state statute. The Organization's

contributions

to

STRS

for the fiscal years ending June 30, 2015,2014, and

2013,

were

$56,72'1,

$53,082,

and

$53,174,

respectively,

and equal

100% of

the

required

contributions

for

each fiscal

year.

CaIPERS

Plan

Description

The

Organization contributes

to the School

Employer

Pool

under

the

California Public

Employees'

Retirement System (CaIPERS),

a

cost-sharing multiple-employer public employee retirement

system

defined

benefit

pension plan

administered

by

CaIPERS.

Plan

information

for

PERS

is not

publicly

available. The plan provides retirement and disability benefits, annual cost-of-living adjustments,

and

death benefits

to

plan members

and

beneficiaries. Benefit provisions

are

established

by

State

statutes, as

legislatively

amended, within the

Public

Employees' Retirement

Law.

According

to

the most recently available Actuarial Valuation

Report

for the year

ended

June

30, 2013,

the

Schools Pool total plan assets

are

$49.5 billion, the

total

actuarial present value

of

accumulated

plan benefits is $72.3 billion,

contributions

from

all

employers

totaled $1.8

billion,

and the plan

is

80.5% funded,

the Organization did

not

contribute

more

than

5% of the

total contributions

to

the

plan.

Copies

of

the CaIPERS' annual financial reports may be obtained from

the

CaIPERS

Executive

Office, 400

P

Street, Sacramento, CA

95814 and

www.calpers.ca.gov.

(32)

-LIVE OAK CHARTER SCHOOL

NOTES

TO THE FINANCIAL STATEMENTS

JUNE

30, 2015

NOTE

5 - EMpLOYEE

RETTREMENT

SYSTEMS

(CONTINUED)

Funding

Policy

Active plan members

are

required to contributeT.0% of their salary,

and

the Organization is

required

to

contribute

an

actuarially determined

rate.

Effective January

1,2013, any

new participants in

the

plan

will

be required

to

contribute 6.0% of their salary, The actuarial methods and assumptions

used

for

determining

the rate are those

adopted

by the

CaIPERS Board

of

Administration.

The

required

employer contribution

rate

for fiscal year 2014-2015

was

11.771%

of

annual payroll based

on

PERS

reduction transfers.

The

contribution requirements of

the

plan members are established by the

state

statute. The Organization's contributions to

CaIPERS

for

the

fiscal years ending

June

30,

2015,2014,

and 2013, were $61,578, $43,040, and $34,700,

respectively,

and equal 100%

of

the

required

contributions for

each

fiscal

year.

NOTE6-FIXEDASSETS

Fixed

assets consist

of the

following

as of

June

30, 2015

Buildings

Leasehold improvements

Less:

Accumulated

Depreciation

Total

Fixed

Assets

$

13,979

32,729

(7,585)

$

39,123

During the

fiscalyear

ended June

30,

2015,

$7,585

was

charged to

depreciation

expense

NOTET-OPERATINGLEASE

The Organization leases copiers

under an

operating

lease

agreement

in

excess

of one

year,

Facilities

are

leased on

a

year{o-year basis.

The

future minimum

lease payments

are

as follows:

Year

Ending

June

30

Lease Payments

2016

2017

2018

2019

2020

152,616

B,68B 8,688

4,990

499 $

Total future lease payments

$

175,481

The Organization

will

receive no sublease rental revenues nor pay any contingent rentals

associated

with this lease.

For the

fiscal year

ended

June

30,

2015, operating

lease

expense was $159,479.

(33)