Challenge Preparatory Charter School

“The organization's form 990 is prepared by an outside accounting firm. It is then reviewed by the organization's management and the finance committee of the board of trustees. Any required changes are made and a complete copy of the form 990 is provided to all members of the organization's board of trustees prior to filing with the irs.”

“The organization has a conflict of interest policy which is applicable to all members of the organization's board of trustees and officers. Such persons are required to complete an annual disclosure form to disclose any potential conflicts of interest, and to disclose ant conflicts as they arise. Conflicts are determined by the disinterested members of the board of trustees, who also decide on the action to be taken. The interested person is recused from voting on the matter.”

“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 form 990s of 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 data for their positions that is based upon years of experience, education degrees, and certifications. This process was last conducted in 2021.”

“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 organization contracted with a professional employer organization (peo) for services, including but not limited to, payroll, timekeeping, employee benefits, hr administration and workforce regulatory compliance needs. As the employer of record for tax purposes, forms w-2 and w-3 are issued by the peo and filed under the peo's federal ein. In this co-employment arrangement, the organization is the common law employer and, accordingly, compensation is reported on form 990, part vii, section a and part ix, lines 5-10.”

“Gain on transfer of leases 1,272,042.”

“The school has a finance committee that is responsible for oversight of the audit of the organization's financial statements and the selection of an independent accountant. The process has not changed from the prior year.”