New City School

“The Form 990 is prepared by an independent accounting firm. Once the Form is completed, it is given to the School for review before it is signed and filed. It is not provided to all board members in a complete format.”

“The board assigns the monitoring to a specific committee who is responsible to review the compliance with the policy. Board members are required to annually complete a conflict of interest statement.”

“An annual review is completed by the governing board. The finance committee of the Board review compensation and recommend approval by the board. A written agreement is put in place.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Several members of the board are teachers at the school. Minnesota State statute 124D.10 subd.4(g) requires the board to have at least one member that is an employed/contracted teacher.”

“Jackie Paradis is paid by an unrelated organization for her services provided to the School. These payments are not directly tied to the School and as such are not included on the Schedule J.”

“Other fees-ProgServ-990 : Program service expenses 410. Management and general expenses 0. Fundraising expenses 0. Total expenses 410. CONSULTING FEES/FEES FOR SERVC : Program service expenses 29,019. Management and general expenses 0. Fundraising expenses 0. Total expenses 29,019. Consulting Fees/Fees for Services : Program service expenses 4,500. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,500. ELEM. ED - CONSULTANT FEES : Program service expenses 152,927. Management and general expenses 0. Fundraising expenses 0. Total expenses 152,927. TITLE II, PART A - INDIRECT COST : Program service expenses 161. Management and general expenses 0. Fundraising expenses 0. Total expenses 161. Title I -IASA/Title I, Part A IASA/ : Program service expenses 2,691. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,691. TITLE I - INDIRECT COST : Program service expenses 151. Management and general expenses 0. Fundraising expenses 0. Total expenses 151. SPEECH/LANG. IMP. - CONTRACTED SERV : Program service expenses 23,625. Management and general expenses 0. Fundraising expenses 0. Total expenses 23,625. SPECIAL ED - CONTRACTED SUB TEACHER : Program service expenses 2,890. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,890. SPECIAL ED - CONTRACTED SUB TEACHER : Program service expenses 1,434. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,434. SPECIAL ED - SUB GRANT < 25,000 : Program service expenses 12,850. Management and general expenses 0. Fundraising expenses 0. Total expenses 12,850. GEN SP ED - INDIRECT COST : Program service expenses 963. Management and general expenses 0. Fundraising expenses 0. Total expenses 963. SPECIAL ED - CONTRACTED SERVICES : Program service expenses 1,200. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,200. GEN SP ED - PAYMENT TO OTH AGENCIES : Program service expenses 10,626. Management and general expenses 0. Fundraising expenses 0. Total expenses 10,626. STAFF DEVELOPMENT - CONSULTING FEES : Program service expenses 12,500. Management and general expenses 0. Fundraising expenses 0. Total expenses 12,500. HEALTH SERVICES - CONTRACTED SERVIC : Program service expenses 3,550. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,550. OPERATIONS & MAINT. - CONTRACTED SE : Program service expenses 300. Management and general expenses 0. Fundraising expenses 0. Total expenses 300. FACILITIES - CONTRACTED SERVICES : Program service expenses 23,037. Management and general expenses 0. Fundraising expenses 0. Total expenses 23,037. SCHOOL BOARD - CONSULTING FEES : Program service expenses 0. Management and general expenses 19,522. Fundraising expenses 0. Total expenses 19,522. HUMAN RESOURCES - ADS & BG CHECKS : Program service expenses 0. Management and general expenses 444. Fundraising expenses 0. Total expenses 444. ADMINISTRATIVE SUP - CONSULTING FEE : Program service expenses 0. Management and general expenses 52,973. Fundraising expenses 0. Total expenses 52,973. BUSINES SERVICES - OFFICE SUPPLIES : Program service expenses 0. Management and general expenses 5,676. Fundraising expenses 0. Total expenses 5,676. BUSINES SERVICES - INDIRECT COST : Program service expenses 0. Management and general expenses -1,275. Fundraising expenses 0. Total expenses -1,275. PRINCIPAL - CONTRACTED SERVICES : Program service expenses 0. Management and general expenses 485. Fundraising expenses 0. Total expenses 485. Mngmnt - Fees for Service - Other : Program service expenses 0. Management and general expenses -68,845. Fundraising expenses 0. Total expenses -68,845.”

“The financial statements are prepared by an independent accounting firm. The statements are reviewed and approved by the board before being issued. This process was the same as last year.”

“During the year ended June 30, 2015, the School implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27. GASB Statement No. 68 included major changes in how employers account for pension benefit expenses and liabilities. In financial statements prepared using the economic resources measurement focus and accrual basis of accounting (government-wide and proprietary funds), an employer is required to recognize a liability for its share of the net pension liability provided through the pension plan. An employer is required to recognize pension expense and report deferred outflows of resources and deferred inflows of resources for its share related to pensions. This standard required retroactive implementation, which resulted in the restatement of net position as of June 30 2014. The net position of governmental activities in the government-wide statements as of June 30, 2014 was decreased by $858,331. This change reflects the School's proportionate share of the net pension liabilities ($918,083 decrease in net position) and related deferred outflows of resources ($59,752 increase in net position) for the PERA and TRA pension plans, which are now reported by employers under current guidance. Certain amounts necessary to fully restate fiscal year 2014 financial information are not determinable; therefore, prior year comparative amounts have not been restated.”

“The School is required to have an Authorizer to monitor its operations in order to maintain its charter. The School's approved Authorizer during the fiscal year 2015 was the Novation Education Opportunities.”

“Made an effort to obtain information on compensation, if any, was paid from a related organization. No response received and no transactions noted.”