Esperanza Academy Charter 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 & officers are reviewed and monitored on an annual basis - due to the limited number of board and officers these activities can currently be monitored and evaluated on specific case by case 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.”

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

“The organization did not incur any fundraising expenses during the year ended june 30, 2018. 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.”

“During the year ended June 30, 2018, the School implemented a new accounting pronouncement to adopt the requirements of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. Issued June 2015, this statement addresses reporting by governments that provide OPEB to their employees and for governments that finance OPEB for employees of other governments and parallels the pension standards issued in GASB Statement No. 68, Accounting and Financial Reporting for Pensions. GASB Statement No. 75 details the recognition and disclosure requirements for employers with payables to defined benefit OPEB plans that are administered through trusts that meets specific criteria, and for employers whose employees are provided with defined contribution OPEB. For OPEB that is administered through trust, GASB Statement No. 75 requires the liability of employers to be measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees that is attributed to those employees past periods of service (total OPEB liability), less the amount of the OPEB plans fiduciary net position. The pronouncement requires retrospective application to all periods presented. As a result, an adjustment to record an increase of $849,000 related to OPEB liability along with a corresponding decrease in unrestricted net position was made on the June 30, 2017 statement of net position.”