Deerfield Montessori School

“Family relationship. Anthony l. Kambich and carolyn a. Kambich are married. Lisa m. Kambich, anthony j. Kambich and douglas g. Kambich are their children.”

“Business relationship anthony l. Kambich, carolyn a. Kambich, lisa m. Kambich, anthony j. Kambich and douglas g. Kambich all have business relationships with the school. Please see explanation given above schedule l part iv.”

“The preliminary financial reports for the form 990 are discussed at the annual meeting of the board of directors in november of each year. The form 990 is prepared by the treasurer, president and an independent cpa and reviewed informally by all directors. The form 990 is then provided to each director each voting member of the schools governing body and a meeting of the directors is held to review and approve the form 990 before filing.”

“The board of directors reviews the conflict of interest policy annually at its annual meeting in november and requires that all officers and directors submit compliance forms to be filed with the secretary. Actual or potential conflicts of interest are reviewed as they arise and legal counsel is consulted. If it is determined that a conflict of interest involves interested persons serving as officers or directors, legal counsel is requested to develop information concerning what would constitute an arms length transaction or an outside consultant is engaged for that purpose. All officers and directors are covered by the policy and board of directors makes all determinations of whether a conflict exists and reviews those conflicts.”

“The compensation of the ceo, executive director and all officers and directors is determined by the board of directors. Because the governing body has no members that do not have a conflict of interest with respect to compensation arrangements, compensation is determined by the governing board as a whole based on its review of market surveys and other market information from unbiased sources, or based on a report of an independent outside advisor. Such a review or report is not necessary for adjustments to compensation based on normal cost-of-living adjustments, merit or longevity increases, or as a result of changes in duties, all of which can be implemented by the board in the normal course of business without independent verification. The present compensation of the officers and directors has been determined by the board based on a report from an independent compensation consultant in 2020.”

“No documents available to the public, other than the form 990.”

“Expalnation for schedule l part iv - regarding riverwoods facility a lease agreement the lease dated september 1, 2017 exists between harris, n.a., as trustee under trust no. L-3502 dated may 16, 1986, as lessor, and deerfield montessori school, inc., an illinois not-for-profit corporation, as lessee. The beneficial interest in land trust no. L-3502 is owned by 1986 maria lane llc, a delaware limited liability company the llc. The members of the llc and their percentage ownership in the llc are as follows anthony l kambich trust 20.00 carolyn a. Kambich trust 20.00 anthony j. Kambich 20.00 lisa m. Kambich 20.00 douglas g. Kambich 20.00 anthony l. Kambich is the sole manager of the llc. Through this lease, the llc provides facilities to the organization. The leased premises are located at 3140 riverwoods road, riverwoods, il 60015 and house the riverwoods montessori school, which is owned and operated by deerfield montessori school, inc. The term of the lease is less than 20 years and does not contain an option to purchase on behalf of deerfield montessori school, inc. The rental provided in the lease is based on an mia appraisers opinion of the fair market rental for a building of its age and condition, plus upward adjustments to the rent based on the greater of increases in consumer price index over the base year of 1996 and real estate taxes. The lease provides that the general and special taxes, assessments and government charges levied on the leased premises shall be borne by the lessor. The lessee shall pay for all utility charges and normal maintenance and repair. The lease does not cover equipment used for the school purposes, as such equipment is owned by deerfield montessori school, inc. It is intended that the right to use the leased property as described above shall be at fair market value within the meaning of reg. Sec. 53.4958-4bi. The rental as of the end of the tax year is 30,649 per month.”

“Explantion for schedule l part iv -regarding wilmot road facility a lease agreement the lease dated september 1, 2021 exists between chicago title land trust company, as trustee under trust no. Wn000700 dated june 22, 1991, as lessor, and deerfield montessori school, inc., an illinois not-for-profit corporation, as lessee. The beneficial interest in land trust no. Wn000700 is owned by 1991 maria lane llc, a delaware limited liability company the llc. The members of the llc and their percentage ownership in the llc are as follows anthony l. Kambich trust 20.00, carolyn a. Kambich trust 20.00, anthony j. Kambich 20.00, lisa m kambich 20.00, douglas g. Kambich 20.00. Anthony l. Kambich is the sole manager of the llc. Through this lease, the llc provides facilities to the organization. The leased premises are located at 1500 wilmot road, deerfield, il 60015 and house the deerfield montessori childrens house, which is owned and operated by deerfield montessori school, inc. The term of the lease is less than 20 years and does not contain an option to purchase on behalf of deerfield montessori school, inc. The rental provided in the lease is based on an mia appraisers opinion of the fair market rental for a building of its age and condition, plus upward adjustments to the rent based on the greater of increases in the consumer price index over the base year of 2007 and real estate taxes. The lease provides that the general and special taxes, assessments and government charges levied on leased premises shall be borne by the lessor. The lessee shall pay for all utility charges and normal maintenance and repair. The lease does not cover equipment used for the school purposes, as such equipment is owned by deerfield montessori school, inc. It is intended that the right to use the leased property as described above shall be at fair market value within the meaning of reg. Sec. 53.4958-4bi. The rental as of the end of the tax year is 1500 per month.”

“During the current tax year, Deerfield Montessori School changed its method of accounting from accrual to cash basis to better reflect cash flow. There was no cumulative effect of this change on beginning net assets and the reporting of revenue and expenses is reflected in the income and expenses as required on a cash basis.”