Esperanza Academy Charter School

“Nueva esperanza, inc., related party, provides management services to the school.”

“The board of directors reviews the form 990. It is distributed to the board at least 10 days prior to filing.”

“All board members & employees are reviewed and monitored on an annual basis.”

“The board of directors is charged with the responsibility of approving compensation of key employees. The committee reviews data on the compensation of other comparable positions in similar nonprofit organizations. For the chief executive officer (ceo), nueva esperanza, inc., a related organization, assisted the charter school by hiring an independent firm to perform a salary study that included the compensation ranges for the ceo.”

“All required public notices are made in local newspapers and all public records are on site and available for review.”

“The organization did not incur any fundraising expenses during the year ended june 30, 2015. Nueva esperanza academy charter school is part of an affiliated group of entities (see schedule r part ii). The parent company, nueva esperanza, inc., incurs all of the fundraising expenses for all of the affiliates and those fundraising expenses are reflected on its form 990 part ix.”

“The School was required to adopt GASB 68 relative to its participation in the Commonwealth of Pennsylvania's Public School Employees' Retirement System (PSERS). Charter Schools are required to offer this retirement plan to their employees as a condition of their charter. The Commonwealth controls all aspects of the plan including assets and administration. The School makes contributions as defined by the Commonwealth. Historically, the School has recorded its contributions to the plan as expenses in the year these contributions were required by the Commonwealth. With the adoption of GASB 68, the School is required to record a liability for its proportionate share of the PSERS plan and expenses related to the performance of plan administration against its goals. EACS recorded an adjustment to net assets of $13,893,209 for the net liability as of June 30, 2014 as well as $1,279,851 in expenses related to plan administrative performance in addition to the required contributions of $1,217,186. All public schools in Pennsylvania who participate in PSERS are being required to record a proportionate share of the $39,580,717,000 liability in their financial statements. Management is of the opinion that it is highly unlikely the School will ever be required to pay this liability.”