Pennsylvania Distance Learning Charter School

“Substantially all of the school's business functions have been contracted to charter choices, inc (cc). Cc performs payroll services, accounts payable services, accounts receivable services, maintains the accounting system of records and reports, federal consolidated grant reconciliations, financial reporting and budgets, financial projections and planning, enters and maintains student data records for billing purposes, prepares district billing using school provided information, and fiscal compliance reporting. The school pays an annual fee of $560 per average daily membership to cc.”

“There are no underlying committees of the governing body.”

“Drafts of the form 990 are distributed to the management company and the board, for their review. Hill, barth & king llc prepares the school's form 990. They are available to respond to questions or recommendations as a result of the board review.”

“The board of trustees monitors employment and consulting arrangements to ensure that conflicts of interest do not occur in the school. All appointments are asked at the time of interview if they are related to anyone in the organization. Additionally, trustees and the ceo are required to complete a financial disclosure declaration annually. The disclosure form is consistent with the pennsylvania ethics requirements for school board officials.”

“The president of the board of trustees annually evaluates the ceo and uses comparability data to recommend compensation and benefits subject to the approval of the trustees. The ceo is responsible for recommending salaries for all other employees for trustee approval.”

“Requests for additional information should be addressed to the fiscal officer c/o pennsylvania distance learning charter school, 2605 nicholson rd, suite 4100, sewickley, pa 15143.”

“Business contracted services: program service expenses 0. Management and general expenses 958,568. Fundraising expenses 0. Total expenses 958,568. Software and it contracted services: program service expenses 860,931. Management and general expenses 613,525. Fundraising expenses 0. Total expenses 1,474,456. Education contracted services: program service expenses 2,109,880. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,109,880. Other contracted services: program service expenses 0. Management and general expenses 47,696. Fundraising expenses 0. Total expenses 47,696.”

“The process has not changed from the prior year.”

“The organization did not change its oversight process nor the selection process during the tax year.”

“For purposes of reporting the school's reason for public charity status in schedule a of form 990, the school classifies itself as an organization that normally receives a substantial part of its support from a government unit or from the general public described in section 170(b)(1)(a)(vi) solely for consistency with the school's public charity status as determined by the irs effective june 10, 2003. The school does not actively solicit funds from the general public; however, it receives a portion of its revenue from public sources in the form of grants and contributions from the pennsylvania department of education and a local intermediate unit. Consistent with other pennsylvania charter schools, the majority of the school's revenues are received from the resident school districts of its students based on admission and reimbursement rates established by the pennsylvania department of education. Revenues from school districts are not considered public support for purposes of the computation of public support in schedule a. A review of the original application for exemption indicates that we applied for exemption as a school, and that through the process of approval, our status was ultimately granted as a public supported charity rather than as a school. In filing this return, we certify that we meet all of the requirements for tax exemption as a school, including the non-discrimination rules. Based on these facts and circumstances which have not changed from the school's inception and original irs determination of exemption, the school's operations support its public charity status.”

“During the fiscal year ending june 30, 2015, the school was required to implement gasb 68. This accounting standard required the school to report its proportionate share of the net pension liability of the underfunded cost-sharing multi-employer defined benefit pension plan provided by the commonwealth of pennsylvania. At june 30, 2023, the school reported a liability of $10,981,000 which is reduced by deferred outflows of resources in the amount of $4,236,849. Each year, the school's proportionate share of the liability will be adjusted. The adjustment will be done in accordance with the accounting standard but will not have an effect on the ongoing cash requirements of the school.”

“During the fiscal year ending june 30, 2019, the school was required to implement gasb 75. This accounting standard required the school to report its proportionate share of the net other post employment benefits (opeb) of the underfunded cost-sharing multi-employer defined benefit opeb plan provided by the commonwealth of pennsylvania. At june 30, 2023, the school reported a liability of $455,000 which is reduced by deferred outflows of resources in the amount of $244,189. Each year, the school's proportionate share of the liability will be adjusted. The adjustment will be done in accordance with the accounting standard but will not have an effect on the ongoing cash requirements of the school.”

“During the fiscal year ending june 30, 2022, the school was required to implement gasb 87. This accounting standard required the school to report certain lease assets and liabilities that previously were classified as operating leases. At june 30, 2023, the school reported a right-of-use asset of $9,589,445, accumulated amortization of $2,128,687, and a lease liability of $8,227,900.”