John W Lavelle Preparatory Charter School

“The President, Director of Operations, and Director of Finance provide preliminary answers and explanations to all questions on for 990. The Director of Finance coordinates with the School's independent auditors to determine proper interpretation of the questions to ensure all answers are accurate so as to properly describe the School's hierarchy, corresponding levels of authority, processes used by its governing body, members, officers, key employees and any relationships between themselves and/or outside entities involved in the School's day to day operations and it's business dealings. Amounts provided on form 990 are derived from the School's books and records which support the independently-audited financial statements for the period. Finally, the board of trustees reviews a preliminary draft of the form 990 and Schedule O at an executive board meeting. Members of the committee verify the accuracy of the answers and/or make edits to properly capture the details of the organization's operations. A final draft including the changes agreed upon is approved by members of the committees. Copies of this final form 990 are distributed to all board members before filing.”

“The organization has a board approved conflicts of interest policy. Each board member must fill out an annual declaration stating they had no conflicts or identifying the nature of their interested party transactions.”

“Compensation for the president was determined independently by the board of trustees based on the value of skills, expertise and leadership. The candidates would provide to the school in accomplishing its mission.”

“Federal tax law does not require that such documents be made publicly available except as part of a form that is publicly available (Such as Form 1023, or Form 1024)”

“As we complete our fourth year, the John W. Lavelle Preparatory Charter School is emerging from a period of significant financial challenges and operational successes. As an independent charter school, the challenge of successfully transitioning from NYC DOE incubation space to private space has posed many challenges. In the incubation space which we occupied for two years, we were not only able to operate rent-free but were also to take advantage of host-school food, school safety, janitorial, and maintenance services. The move to our current site at the Teleport occurred in September 2011, with additional space added for September 2012 and September 2013, completing the build-out process. Through this process, we have smoothly transitioned from the DOE support services which we enjoyed during incubation. Lavelle Prep has consistently met all operational standards (including escrow funds, insurance, etc.).The cost of the space renovation to Lavelle Prep has been $2.5 million. In addition, furnishing and equipment costs over the three years of renovation are approximately $1 million. Some of these costs were met through use of $640,000 in funds saved during our incubation years. Another $250,000 has been funded through two SSF grants. Other costs have been met from current Lavelle Prep operating funds. In addition, Lavelle Prep has taken on $1.35 million in long-term debt. These costs, however, still exceeded current resources. As a result, it was necessary for Lavelle Prep to draw occasionally on a line of credit and to carry-over some current obligations from one fiscal year to the next. We were able to do so without failing to meet payment obligations, primarily because one-sixth of faculty salaries incurred each year are not payable until the subsequent fiscal year. In 2012-13, we took significant steps to reduce expenditures, undertaking a mid-year reduction in paraprofessional staffing which saved approximately $200,000 while allowing us to meet all requirements of student IEPs. Although we carried forward a negative cash balance of $45,000 into 2012-13, we finished the year with a cash surplus of approximately $78,000. The surplus will increase by the end of 2013-2014 to approximately $390,000. We project an operating surplus in 2014-15 of over $1 million and an accumulated surplus by the end of 2018-19 of almost $4 million. We anticipate utilizing this surplus to establish a reserve, to enrich educational offerings, and to pay down long-term debt. Approved budgets for the current (2013-14) fiscal year as well as an approved budget for the succeeding five years are attached.We were able to accomplish this because we found a landlord who was willing to work with us to structure an affordable long-term lease. As our rent has increased through the first two years of occupancy, Lavelle Prep has fully met its annual rent obligations. Our rent will continue to increase for a number of years and we will continue to meet our obligations.”