Great Minds

“The audit and finance committee review and approve a draft of the 990. The governing body is provided with a copy of the 990 via electronic transmittal prior to submission.”

“In connection with any actual or possible conflict of interest, an interested person discloses the existence of the financial interest and is given an opportunity to disclose all material facts to the directors and members of the committees with governing board delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after discussion with the interested person, he/she leaves the governing board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members decides if a conflict of interest exists. Violation of the conflicts of interest policy: a. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it informs the member of the basis for such belief and affords the member an opportunity to explain the alleged failure to disclose. B. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it takes appropriate disciplinary and corrective action.”

“The process for determining the executive director's compensation as well as other key members of management includes the use of comparable data, compensation committee deliberations and recommendations, board approval, and documentation in the board minutes. The compensation committee is comprised of members of the board of directors. The executive director's as well as director's 2016 compensation was based on an assessment by an independent consultant from pearl meyer.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“As of december 31, 2016, a significant increase in revenue was recognized over prior year due an increase in the number of students using great minds curricula as well as a change in the overall curriculum sales business model. Great minds continues to expand into new states and schools systems, which contributed to an increase in royalties revenue of approximately $9.4 million compared to the prior year. In addition to this, during the year ended december 31, 2016, great minds moved to a direct sales model for curriculum sales therefore increasing direct book sales revenue as of year-end by approximately $13.4 million.”

“In correlation with the significant increases in revenue experienced as of year-end, total expenses of great minds also increased significantly as of december 31, 2016. With the adoption of the direct sales model for curriculum sales, great minds is now incurring significant fulfillment costs to support these direct sales. The increase in this expenditure line item within the statement of functional expenses is approximately $10.2 million over prior year.”