Civic Intelligence

Capistrano Connections Academy

990 • Fiscal year 2016 • EIN 20-1485148

Jul 01, 2015 to Jun 30, 2016 • Filed on Feb 07, 2017

33272 Valle RoadSan Juan Capistrano, CA 92675

(949) 461-1667

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

91st percentile

0.96x

Higher debt load relative to assets than 91% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Liabilities / Revenue

45th percentile

0.27x

Higher debt load relative to revenue than 45% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Net Margin

36th percentile

-0.1%

Higher net margin than 36% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Top Officer Pay

20th percentile

$143,083

Higher top officer pay than 20% of similar nonprofits.

Top officer pay equals 0.6% of source-year revenue.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Asset Growth

96th percentile

66%

Faster asset growth than 96% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2015 to 2016

Revenue Growth

88th percentile

33%

Faster revenue growth than 88% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2015 to 2016

Assets

Up

$7,024,200

Up $2,789,871 (+66%) from 2015

Net Assets

Down

$267,924

Down $28,882 (-9.7%) from 2015

Liabilities

Up

$6,756,276

Up $2,818,753 (+72%) from 2015

Revenue

Up

$25,156,837

Up $6,306,518 (+33%) from 2015

Expenses

Up

$25,185,719

Up $5,737,928 (+30%) from 2015

Net Income

Up

-$28,882

Up $568,590 (+95%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$10M$5.0M$0Assets 2011: $2,928,720Liabilities 2011: $2,038,793Net Assets 2011: $889,9272011Assets 2012: $3,982,066Liabilities 2012: $2,857,516Net Assets 2012: $1,124,5502012Assets 2013: $4,184,654Liabilities 2013: $2,980,676Net Assets 2013: $1,203,9782013Assets 2014: $4,912,801Liabilities 2014: $4,018,523Net Assets 2014: $894,2782014Assets 2015: $4,234,329Liabilities 2015: $3,937,523Net Assets 2015: $296,8062015Assets 2016: $7,024,200Liabilities 2016: $6,756,276Net Assets 2016: $267,9242016Assets 2017: $8,271,416Liabilities 2017: $7,463,631Net Assets 2017: $807,7852017

Highlighted filing

2016

Assets$7,024,200
Liabilities$6,756,276
Net Assets$267,924

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$30M$20M$10M$0-$10MRevenue 2011: $9,476,564Expenses 2011: $9,040,338Net Income 2011: $436,2262011Expenses 2012: $10,827,8562012Expenses 2013: $12,701,4992013Revenue 2014: $15,351,601Expenses 2014: $15,661,301Net Income 2014: -$309,7002014Revenue 2015: $18,850,319Expenses 2015: $19,447,791Net Income 2015: -$597,4722015Revenue 2016: $25,156,837Expenses 2016: $25,185,719Net Income 2016: -$28,8822016Revenue 2017: $29,832,033Expenses 2017: $29,292,172Net Income 2017: $539,8612017

Highlighted filing

2016

Revenue$25,156,837
Expenses$25,185,719
Net Income-$28,882
Jump To
Filing Snapshot
Filing Period
Jul 1, 2015 to Jun 30, 2016
Signed
Feb 7, 2017
Return Version
2015v3.0
Gross Receipts
$25,156,837
Mission and Program Overview

Mission

The mission of california connections academy schools is to leverage 21st century education resources on behalf of students who need a morepersonalized approach to learning to maximize these students' potential and meet the highest performance standards. This mission is accomplished through a uniquely individualized learning program that combines the best in virtual education with real connections among students, family, teachers, and the community to promote academic and emotional success for every learner. The charter school program provides a high-quality, high-tech, high- interaction virtual "school without walls" that brings an accredited tuition free public educational program directly into the homes of students in grades k-12.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$3,485,231$6,171,318▲ $2,686,087
Accounts Receivable$583,153$752,443▲ $169,290
Cash and Non-Interest-Bearing Accounts$122,078$56,682▼ $65,396
Prepaid Expenses and Deferred Charges$43,867$43,757▼ $110
Total Assets$4,234,329$7,024,200▲ $2,789,871
Liabilities
Accounts Payable and Accrued Expenses$3,937,523$6,756,276▲ $2,818,753
Total Liabilities$3,937,523$6,756,276▲ $2,818,753
Net Assets / Fund Balance
Unrestricted Net Assets$296,806$267,924▼ $28,882
Total Net Assets Fund Balance$296,806$267,924▼ $28,882
Total Liabilities and Net Assets / Fund Balance$4,234,329$7,024,200▲ $2,789,871
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Dr Richard SavageExecutive DiPT$105,807$37,276$143,083
Franci SassinDirector of Bus SPT$70,640$17,307$87,947

Board Members and Trustees

NameTitle
Elaine PavlichPresident
Joseph RuizBoard Member
Dan SutherlandSecretary
Mike HenjumTreasurer
Revenue and Support

Revenue Composition

Contributions and Grants
$25,140,336
Program Service Revenue
$0
Investment Income
$16,501
Other Revenue
$0
All Other Contributions
$66,025
Change in Net Assets
$-28,882

Audited Revenue Reconciliation

Revenue per Audited Statements
$25,156,837
Total Revenue per Audited Statements
$25,156,837
Total Revenue per Form 990
$25,156,837
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$14,591,440
Salaries, Compensation, and Employee Benefits$10,594,279
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$6,635,416$1,110,113-$7,745,529
Information Technology$3,030,810--$3,030,810
Fees for Services Other$1,660,697$635,052-$2,295,749
Fees for Services Management$373,724$1,798,994-$2,172,718
Other Employee Benefits$1,631,176$271,978-$1,903,154
Pension Plan Contributions$694,309$63,451-$757,760
Fees for Services Accounting-$520,787-$520,787
Occupancy$393,523$93,200-$486,723
Office Expenses$176,933$69,515-$246,448
Advertising-$241,996-$241,996
Payroll Taxes$132,709$55,127-$187,836
Travel$44,019$128,929-$172,948
Conferences and Meetings$107,978$10,218-$118,196
Other Expenses$112,274$218,920-$112,274
All Other Expenses$22,851$22,519-$45,370
Fees for Services Legal-$5,801-$5,801
Insurance-$3,600-$3,600
Total Functional Expenses$19,385,519$5,800,200$0$25,185,719

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$25,185,719
Total Expenses per Audited Statements$25,185,719
Total Expenses per Form 990$25,185,719
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
Yes
Lobbying activity
Yes
Subject to proxy tax
No

Reported Spending and Taxes

Line ItemAmount
Political Expenditures$990
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
Yes

Governance Explanations

Form 990, Page 6, Part VI, Line 3

Capistrano connections academy has a shared services agreement in place which includes the sharing of school staff and various other expenses between a network of charter schools. This agreement involves three non- profit public benefit corporations: capistrano connections academy, alpaugh academies, and friends of california virtual education. The school has also contracted with a third-party organization (connections academy of california, llc a subsidiary of connections education, llc) to provide educational products and services to the school. Due to delays in the receipt of state funding, the school has arranged with connections education to process its payroll including the paying of school staff which requires the use of connections education, llc's ein number. As part of this arrangement, the school reimburses connections education for paying staff as funding becomes available. As all staff members are reported on the school's behalf using the ein of connections education, llc, no employees are listed as part of this return.

Form 990, Page 6, Part VI, Line 7A

The authorizing district has the right to appoint a district representative to the board; however, this right has not been exercised.

Form 990, Page 6, Part VI, Line 11B

The 990 is distributed and reviewed by the board prior to submission. The board may delegate this function to the finance/audit committee, but currently that committee is actually the full board.

Form 990, Page 6, Part VI, Line 12C

All designated filers submit a form 700 annually to the school filing officer. The forms are also submitted to the code reviewing body which is orange county clerk of the board of supervisors. Form 700s are available to the public upon request.

Form 990, Page 6, Part VI, Line 15A

Prior to approval of annual salary for executive director(if salary is being changed) a review of comparable salaries in the area is prepared and submitted for review to the board members, who then review, discuss and approve the executive director's compensation package during a publicly noticed meeting.

Form 990, Page 6, Part VI, Line 19

Since the corporation is a public agency, all governing documents, board policies, meeting minutes, agendas, meeting packages of backup materials, etc, are public records and an electronic copy of each is kept as well as paper copies at the school site. There is a public records policy (policy available upon request) regarding how to and from whom to make a request of these documents.

Filing and Contact Details

Filer

Filer Name
Capistrano Connections Academy
EIN
20-1485148
Phone
9494611667
Address
33272 VALLE ROAD, SAN JUAN CAPISTRANO, CA 92675

Signing Officer

Name
Mike Henjum
Title
Treasurer
Phone
9494611667
Signed
2017-02-07
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Mike Henjum
Formed
2004
Legal Domicile
CA
Voting Board Members
3
Independent Board Members
3
Employees
0
Volunteers
175

Preparer

Firm
Vicenti Lloyd & Stutzman
Address
2210 E ROUTE 66 STE 100, GLENDORA, CA 91740-4676
Preparer
Wade Mcmullen CPA
Phone
6268577300
Supplemental Narrative

Additional Explanations

FORM 990 - ORGANIZATION'S MISSION

The mission of california connections academy schools is to leverage 21st century education resources on behalf of students who need a morepersonalized approach to learning to maximize these students' potential and meet the highest performance standards. This mission is accomplished through a uniquely individualized learning program that combines the best in virtual education with real connections among students, family, teachers, and the community to promote academic and emotional success for every learner. The charter school program provides a high-quality, high-tech, high- interaction virtual "school without walls" that brings an accredited tuition free public educational program directly into the homes of students in grades k-12.

Financial Statement Notes

Schedule D, Page 3, Part X

The school is a non-profit entity exempt from the payment of income taxes under internal revenue code section 501(c)(3) and california revenue and taxation code section 23701d. Accordingly, no provision has been made for income taxes. Management has determined that all income tax positions are more likely than not of being sustained upon potential audit or examination; therefore, no disclosures of uncertain income tax positions are required.

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IRS990ScheduleC/SupplementalInformationDetail/ExplanationTxt0SCHOOL STAFF MEMBERS ON OCCASION WRITE EMAILS OR LETTERS, SIGN PETITIONS, OR MAKE BRIEF VERBAL REQUESTS OF MEMBERS OF THE LEGISLATURE REGARDING PENDING LEGISLATION THAT MIGHT AFFECT CHARTER SCHOOLS IN CALIFORNIA.
IRS990ScheduleC/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE C, PART IV
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IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0THE SCHOOL IS A NON-PROFIT ENTITY EXEMPT FROM THE PAYMENT OF INCOME TAXES UNDER INTERNAL REVENUE CODE SECTION 501(C)(3) AND CALIFORNIA REVENUE AND TAXATION CODE SECTION 23701D. ACCORDINGLY, NO PROVISION HAS BEEN MADE FOR INCOME TAXES. MANAGEMENT HAS DETERMINED THAT ALL INCOME TAX POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED UPON POTENTIAL AUDIT OR EXAMINATION; THEREFORE, NO DISCLOSURES OF UNCERTAIN INCOME TAX POSITIONS ARE REQUIRED.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE D, PAGE 3, PART X
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IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt0THE MISSION OF CALIFORNIA CONNECTIONS ACADEMY SCHOOLS IS TO LEVERAGE 21ST CENTURY EDUCATION RESOURCES ON BEHALF OF STUDENTS WHO NEED A MOREPERSONALIZED APPROACH TO LEARNING TO MAXIMIZE THESE STUDENTS' POTENTIAL AND MEET THE HIGHEST PERFORMANCE STANDARDS. THIS MISSION IS ACCOMPLISHED THROUGH A UNIQUELY INDIVIDUALIZED LEARNING PROGRAM THAT COMBINES THE BEST IN VIRTUAL EDUCATION WITH REAL CONNECTIONS AMONG STUDENTS, FAMILY, TEACHERS, AND THE COMMUNITY TO PROMOTE ACADEMIC AND EMOTIONAL SUCCESS FOR EVERY LEARNER. THE CHARTER SCHOOL PROGRAM PROVIDES A HIGH-QUALITY, HIGH-TECH, HIGH- INTERACTION VIRTUAL "SCHOOL WITHOUT WALLS" THAT BRINGS AN ACCREDITED TUITION FREE PUBLIC EDUCATIONAL PROGRAM DIRECTLY INTO THE HOMES OF STUDENTS IN GRADES K-12.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt1CAPISTRANO CONNECTIONS ACADEMY HAS A SHARED SERVICES AGREEMENT IN PLACE WHICH INCLUDES THE SHARING OF SCHOOL STAFF AND VARIOUS OTHER EXPENSES BETWEEN A NETWORK OF CHARTER SCHOOLS. THIS AGREEMENT INVOLVES THREE NON- PROFIT PUBLIC BENEFIT CORPORATIONS: CAPISTRANO CONNECTIONS ACADEMY, ALPAUGH ACADEMIES, AND FRIENDS OF CALIFORNIA VIRTUAL EDUCATION. THE SCHOOL HAS ALSO CONTRACTED WITH A THIRD-PARTY ORGANIZATION (CONNECTIONS ACADEMY OF CALIFORNIA, LLC A SUBSIDIARY OF CONNECTIONS EDUCATION, LLC) TO PROVIDE EDUCATIONAL PRODUCTS AND SERVICES TO THE SCHOOL. DUE TO DELAYS IN THE RECEIPT OF STATE FUNDING, THE SCHOOL HAS ARRANGED WITH CONNECTIONS EDUCATION TO PROCESS ITS PAYROLL INCLUDING THE PAYING OF SCHOOL STAFF WHICH REQUIRES THE USE OF CONNECTIONS EDUCATION, LLC'S EIN NUMBER. AS PART OF THIS ARRANGEMENT, THE SCHOOL REIMBURSES CONNECTIONS EDUCATION FOR PAYING STAFF AS FUNDING BECOMES AVAILABLE. AS ALL STAFF MEMBERS ARE REPORTED ON THE SCHOOL'S BEHALF USING THE EIN OF CONNECTIONS EDUCATION, LLC, NO EMPLOYEES ARE LISTED AS PART OF THIS RETURN.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt2THE AUTHORIZING DISTRICT HAS THE RIGHT TO APPOINT A DISTRICT REPRESENTATIVE TO THE BOARD; HOWEVER, THIS RIGHT HAS NOT BEEN EXERCISED.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt3THE 990 IS DISTRIBUTED AND REVIEWED BY THE BOARD PRIOR TO SUBMISSION. THE BOARD MAY DELEGATE THIS FUNCTION TO THE FINANCE/AUDIT COMMITTEE, BUT CURRENTLY THAT COMMITTEE IS ACTUALLY THE FULL BOARD.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt4ALL DESIGNATED FILERS SUBMIT A FORM 700 ANNUALLY TO THE SCHOOL FILING OFFICER. THE FORMS ARE ALSO SUBMITTED TO THE CODE REVIEWING BODY WHICH IS ORANGE COUNTY CLERK OF THE BOARD OF SUPERVISORS. FORM 700S ARE AVAILABLE TO THE PUBLIC UPON REQUEST.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt5PRIOR TO APPROVAL OF ANNUAL SALARY FOR EXECUTIVE DIRECTOR(IF SALARY IS BEING CHANGED) A REVIEW OF COMPARABLE SALARIES IN THE AREA IS PREPARED AND SUBMITTED FOR REVIEW TO THE BOARD MEMBERS, WHO THEN REVIEW, DISCUSS AND APPROVE THE EXECUTIVE DIRECTOR'S COMPENSATION PACKAGE DURING A PUBLICLY NOTICED MEETING.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt6SINCE THE CORPORATION IS A PUBLIC AGENCY, ALL GOVERNING DOCUMENTS, BOARD POLICIES, MEETING MINUTES, AGENDAS, MEETING PACKAGES OF BACKUP MATERIALS, ETC, ARE PUBLIC RECORDS AND AN ELECTRONIC COPY OF EACH IS KEPT AS WELL AS PAPER COPIES AT THE SCHOOL SITE. THERE IS A PUBLIC RECORDS POLICY (POLICY AVAILABLE UPON REQUEST) REGARDING HOW TO AND FROM WHOM TO MAKE A REQUEST OF THESE DOCUMENTS.
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc0FORM 990 - ORGANIZATION'S MISSION
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ReturnHeader/BuildTS02017-02-10 21:41:12Z
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ReturnHeader/BusinessOfficerGrp/PersonNm0MIKE HENJUM
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ReturnHeader/PreparerFirmGrp/PreparerFirmName/BusinessNameLine1Txt0VICENTI LLOYD & STUTZMAN
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ReturnHeader/PreparerPersonGrp/PreparationDt02017-02-10
ReturnHeader/PreparerPersonGrp/PreparerPersonNm0WADE MCMULLEN CPA
ReturnHeader/ReturnTs02017-02-15T08:54:40-08:00
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ReturnHeader/TaxPeriodBeginDt02015-07-01
ReturnHeader/TaxPeriodEndDt02016-06-30
ReturnHeader/TaxYr02015

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