New World Preparatory Charter School

“Description of management arrangementvictory education partners manages the operations of the school under a management agreement entered into by the school and victory. The agreement was executed on may 14, 2010. Per the terms of agreement, victory assumes responsibility for tasks and functions associated with the educational services to be provided to the children enrolled as students at the school in accordance with terms of the charter and the charter schools act, subject to the appropriate oversight from the school's board of trustees. Victory is responsible for designing the curriculum, acquiring educational materials, hiring all staff, and providing all financial and accounting functions.in providing the above services, victory is paid a management fee in the amount equal to the product of the total full time equivalent enrollment of students in the school as defined under section 119.1 of new york state commissioner of education regulations, multiplied by $2,000 (per pupil fee). The per pupil fee shall be increased or decreased each year by the percentage increase or decrease in the final adjusted expense per pupil for charter schools in the new york city school district as calculated by the department of new york state education.”

“The outside independent auditors review the final tax return before filing with the irs. The board approves the tax returns at a conference in which the financial statements are discussed and reviewed with the board members”

“Description of process to monitor transactions for conflicts of interest.a. Each covered person shall annualy sign a statement that affirms that such person:1. Has received a copy of the policy.2. Has read and understands the policy.3. Has agreed to comply with the policy, and4. Understands that the corporation is a charitable organization and that in order to maintain its federal tax exemption and the trust of the public it must diligently avoid conflicts of interest or the appearence of any conflict and engage primarily in activities that accomplish one or more of its tax-exempt purposes.b. This policy shall be reviewed annually for the information and guidance of covered persons, and any new covered person shall be advised of the policy upon becoming a covered person and shall file an annual statement with the corporation.c. To further the purpose of the disclosure provisions of this policy.”

“The salary budget is prepared at the recommendation of the principal and board finance committee. Other teacher salary scales, including the doe are taken into account when determining salaries.”

“All financial statements and tax returns are open for public inspection upon request.”