Democracy Prep New York Charter Schools

“In april 2014, the school entered into a management agreement with dpps, a new york not-for-profit corporation to assume responsibility for the school's educational process, management and operations. As compensation for these services rendered, the school shall pay to dpps an annual fee equal to 15% of the noncompetitive public revenue received by the school in each fiscal year of the initial term beginning with the fiscal year commencing july 1, 2014, subject to the provisions of the next paragraph. The initial term is for two years beginning july 1, 2014 and ending june 30, 2016. Following the initial term, this percentage will decrease by one-half percent (0.5%) in each renewal term until it reaches a minimum of 12% of the noncompetitive public revenue of the charter school, which percentage will remain in effect for all subsequent renewal terms. For the year ended june 30, 2015, the school incurred $1,714,702 in management fees.”

“The 990 is initially reviewed by the audit committee of the board and then distributed to each board member for additional review and comment prior to submission to the irs.”

“Each trustee, officer and key employee is required yearly to complete a disclosure of financial interest form that documents existing and potential conflicts of interest. Management monitors potential conflicts and reports, if necessary, to board leadership.”

“The head of school's compensation was negotiated at the time of initial employment in 2011 based on comparable data provided by the new york city charter school center and non-profit coordinating committee survey data. Subsequent increases have been nominal for all administrators due to financial circumstances in new york state public schools. A process that includes survey of comparable positions and performance evaluation is in place for future years. Compensation of other officers and key employees is determined by a number of factors, including performance evaluation and comparison with compensation information from the new york city charter school center, the new york city department of education, and the national association of independent schools. The board approves compensation for the head of school and key employees of the school. Contemporaneous substantiation of the compensation discussions and determination regarding the compensation arrangement is documented in the board minutes.”

“By law, board of trustee meetings are open to the public, with meeting times and locations announced publicly ahead of time. Material distributed at meetings, including budgets and financial statements, are available to all present. Detailed report on bronx prep's authorizer visits, renewal reports, accountability plan progress, and state education department report card are available on the suny charter schools institute website: www.newyorkcharters.org under the freedom of information law, information is also available on-site at the school and upon request. Form 990 without schedule b is posted on www.guidestar.org.”

“The organization, in a full transparency posture to reporting, is reporting all benefits in full in part vii, column f and not applying the $10,000 per item exception for certain benefits.”

“Net assets transferred to friends of bronx prepartory charter school -1,792,958. Reclassification of net assets pertaining to interest in friends' building 15,401,035.”