Challenge Preparatory Charter School

“The organization has an agreement with adp totalsource, a professional employer organization (peo) for professional employer services. Under the terms of this agreement, adp totalsource is a co-employer of the organization's employees, and reserves a right of direction and control over employees as its necessary to fulfill its obligations under the agreement. Adp totalsource and the organization each have the right to hire, discipline, and terminate employees. The organization paid adp totalsource $280,406 for these services in fiscal year 2020. The organization also has an agreement with charter schools business management (csbm) to provide the services of chief financial officer and controller on a part-time basis. The organization paid csbm $x for this service in fiscal year 2020. No persons reported in part vii were paid by csbm.”

“Form 990 is reviewed by management and the finance committee of the board of trustees for approval. If changes are required, the school will then forward to the auditing firm and a final version will be distributed to all board members prior to the irs submission.”

“Any trustee, officer, committee member or key employee (if any) having a potential conflict of interest shall make a prompt, full and frank disclosure of his or her interest to the board or. Such disclosure shall include all relevant and material facts known to such person about the contract or transaction that may reasonably be construed to be adverse to the school's interest. The body to which such disclosure is made shall thereupon determine, by majority vote, whether the disclosure shows that a conflict of interest exists or can reasonably be construed to exist. If a conflict is deemed to exist, such person shall not vote on, nor use his or her personal influence on, nor be present during the discussion or deliberations. The minutes of the meeting shall reflect proceedings, including the disclosure made, the vote thereon and, where applicable, the abstention from voting and participation. The board requires all applicable individuals to sign an annual disclosure.”

“The cpcs board of trustees upon the decision to hire a ceo established the base salary for the position after consulting with over a dozen nyc charter schools concerning their ceo salary of their schools. The chair of the board, in consultation with the board treasurer, annually recommends ceo compensation to the finance committee of the board of trustees through the annual budget process. The finance committee reviews this recommendation along with comparable data using forms 990 of ceo salaries at other new york state charter schools and approves the compensation. All deliberations and decisions are documented in the minutes of the finance committee meeting. The compensation of other officers and key employees is determined using the new york city department of education salary scales for their positions that is based upon years of experience, education degrees, and certifications. This process was last conducted in 2019.”

“The organization makes its form 990 available for public inspection as required under section 6104 of the internal revenue code. The return is posted on guidestar.org and other similar types of websites. In addition, the financial statements, conflict of interest policy, articles of incorporation and by-laws are also available upon written request at 710 hartman lane, far rockaway, ny 11691, or by calling the organization directly at 718-327-1352.”

“The school has a finance committee that is responsible for oversight of the audit and the selection of the independent auditor. The process has not changed from the prior year.”