Life Prep

“All parents and guardians of students at the school and all staff employed by the school are eligible to vote in the elections for members of the board of directors.”

“The form 990 will be reviewed by the finance committee and board of directors before submission to the irs.”

“The school's financials are reviewed at each board meeting. The financials include the summary and detailed income statements, balance sheet, period balance sheet and monthly payment register. Board members are provided these documents prior to the board meeting. Board members with questions regarding payees ask questions. If a conflict of interest is found, the relationship is to be cancelled immediately with no further transactions to take place. When hiring a new vendor, they are questioned of any known connections to any board members. If there is a connection, it is brought to the board of directors' attention including said board member for conversation and determination of conflict of interest by remaining members who do not have a conflict. The board of directors are covered by this policy as required by law. Proceedings for conflicts of interest are recorded in the meeting minutes to document the open session conducted by the board.”

“The executive director negotiates and approves contracts within the boundaries of the approved budget for all employees who do not report to the life prep board of directors. The 2014 school year included a complex matrix taking into account achievement of students in classes, percentage of students on grade level, q comp reviews, success in meeting the mission and vision of life prep. Employees who report to the board negotiate their contracts based on quality of work and meeting the job description as presented to employee each year. When determining the compensation of the school director, the school's board of directors reviews the compensation levels of comparable positions within the community as well as reviewing experience level and school size for the school director. The board researched market rates for schools of the same size in enrollment and revenue and then compared employees to the salaries of individuals who are in those like" schools. The process and determination were documented in closed session board minutes. This process was most recently undertaken for the 2014 school year.”

“The governing documents, conflict of interest policy and financial statements are all available upon request.”

“Change in pension liability 32,107.”

“The school follows a modified accrual method of accounting as prescribed by the minnesota department of education. The school-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met.”

“During fiscal year ended june 30, 2015, the school adopted gasb statement no. 68, accounting and financial reporting for pensions, and the related gasb statement no. 71, pension transition for contributions made subsequent to the measurement date - an amendment of gasb statement no. 68. As a result, the school's net position as of june 30, 2014 has been restated to reflect the recognition of the school's proportionate share of the public employees' retirement association of minnesota general employees' retirement fund's net pension liability as well as their portion of the teacher's retirement association's coordinated and basic plan net pension liability.”