Grace Classical Academy Inc

“The Form 990 was prepared by an independent CPA firm. The Form 990 is reviewed by the Chairman of the Board and Principal Officer of the School in detail before it is filed with the IRS. A copy is also given to each board member prior to filing.”

“Line 15a - The Head of School's compensation is approved by the Board, and the approval process is documented in the minutes. Line 15b - The organization does not compensate any other officers or key employees. Therefore, this question is marked no in accordance with the instructions.”

“The governing documents and financial statements are made available to the public upon request.”

“The School is jointly and severally liable for long-term debt with the Church, a separate nonprofit organization, totaling $3,455,954 as of December 31, 2015. The School has recorded a liability for $154,000 that represents debt refinanced by the bank, but is jointly liable for the entire amount under the terms of the loan agreement. Notwithstanding the forgoing, the bank's representative has assured the School, in writing, that the bank will not hold the school liable for its share of the debt, despite the School's obligation with respect to the debt under the terms of the loan agreement. Because the debt is adequately collateralized by property owned by the Church, the School's exposure in event of a default is minimal. The Church makes monthly principal and interest installments of $18,534. The Church has agreed to fulfill the monthly payment and there are no short-term plans for repayment of the School's portion. In addition, the Church has agreed to honor commitments made by the School. The loan matures June 2025.”

“The organization's Board assumes responsibility for oversight of the compilation of its financial statements and selection of its independent accountant. This process has not changed since the prior year.”