The Cheshire Academy

“The academy has its form 990 prepared by an outside accounting firm and has established the following review process to ensure that the information reported is complete and accurate. After the form 990 has been prepared, it is reviewed by management, presented to the executive committee, and then presented to the full board for their review and approval. Once the board has approved the return it is filed with the internal revenue service.”

“Each trustee, officer and member of a committee with governing board delegated powers, member of administration (as applicable) shall annually sign a statement which affirms such person: a. Has received a copy of the conflicts of interest policy, b. Has read and understands the policy, c. Has agreed to comply with the policy, and d. Understands the school is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the trustees and members of committees with governing board delegated powers or others considering the proposed transaction or arrangement. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction to investigate alternatives to the proposed transaction or arrangement.”

“The head of school's compensation is determined by the executive committee of the board of trustees. On january 22, 2021, the board voted to give the executive committee the power to negotiate the head's contract. The committee used comparable data, including the form 990s of similar schools, as a guide to determine the head of school's compensation. The executive committee reviewed and approved the compensation for another three-year term. The head of school received a new three-year contract starting on 7/1/21. All other salaries are determined by the head of school, director of human resources, and cfo. This process takes place every year before appointment letters for the following year are issued in march. The academy makes sure salaries are as equitable as possible, while factoring in such factors as experience, seniority, credentials, education, and performance.”

“The academy makes its form 990 available for public inspection as required under section 6104 of the internal revenue code. The return is also posted on guidestar.org and other similar types of websites. In addition, the form 1023, financial statements, conflict of interest policy, articles of incorporation and by-laws are also available upon written request or by calling the organization directly.”

“Change in the value of perpetual trusts 1,258,779. Write-off of uncollectible pledges -199,023.”

“The academy has a committee that is responsible for the oversight of the audit of its financial statements and selection of an independent accountant. The process has not changed from the prior year.”

“In 2021, the academy restated its financial statements in order to properly reflect the net assets as of and for the years ended june 30, 2020 and 2019. The adjustment from the restatement resulted in a prior period adjustment of $4,309,075.”