Brooklyn Dreams Charter School

“The board of trustees of the school has entered into a management agreement ("the agreement") with national heritage academies, inc. ("nha") for the provision of all educational, management and business services related to the operation of the school. The agreement was submitted and approved by the board of trustees of the state university of new york as part of the chartering process. Pursuant to the terms of the agreement, nha receives all revenue allocated to the school as its management fee, from which it provides its comprehensive educational management services as specified in the agreement and required under the school's charter (i.e., all of the operating costs of the school identified in the budget approved by the school's board). The functional expenses reported in part ix are the expenses paid from the funds remitted under the nha management agreement. In the event expenses exceed revenues, nha covers the shortfall with an in-kind contribution. This agreement has been approved by the board of trustees of the state university of new york during the school's charter process as well as the internal revenue service during the school's exemption application process.”

“A draft copy of the form 990 was provided to the board president for review and signature prior to finalization. The form 990 is then sent to the board of directors prior to filing.”

“The school's bylaws require that any trustee, officer, key employee, or committee member who has a conflict of interest must promptly notify the board of the conflict and the conflict will be duly noted in the board of trustee meeting minutes. The person with the conflict will be excluded from decision making on this issue. The board may take formal, corrective and disciplinary actions if proper disclosure of conflicts of interest are not made.”

“Documents approved by the board of trustees, including the school's audited financial statements, are available to the public upon request.”

“The academy's functional expenses consists primarily of a management fee to national heritage academies (nha) for the comprehensive educational management services provided, in line with the management agreement approved as part of the chartering process. The functional expenses reported in part ix are the expenses incurred by nha on behalf of the school and paid using the funds remitted by the academy under management fee. Under the nha management agreement, nha provides the school with all personnel required (i.e. Teachers, specialized aide, principals, office staff, etc). The salaries and wages and related payroll expenses reported in the statement of functional expenses in part ix refer to the compensation expenses of these nha employees working at the academy. Likewise, all expenses reported in part ix are expenses incurred in the operation of the academy by nha.”

“Brooklyn dreams charter school does not file form 990 with any state as it is an educational institution incorporated under the new york education law and is therefore exempt from registering with the new york attorney general.”