Cypress Junction Montessori Inc.

“The organization's form 990 is prepared by an accountant contracted through the school. Once a review is performed by the management of the organization, it is forwarded to the board of directors for review prior to filing.”

“The conflict of interest policy pertains to officers, directors, board members and any employee(s) who may make purchasing decisions for the organization or obtain proprietary information. It is the policy of the board that the existence of any interests described in the policy shall be disclosed before any transaction is consummated. It shall be the continuing responsibility of the board, officers and management employees to scrutinize their transactions and outside business interests and relationships for possible conflicts and to immediately make such disclosures. Transactions with parties with whom a conflicting interest exists may be undertaken only if all of the following are observed: the conflicting interest is fully disclosed; the person with the conflict of interest is excluded from the discussion and approval of such transaction; a competitive bid or comparable valuation exists; and the board has determined that the transaction is in the best interest of the organization. Disclosure in the organization should be made to one of the directors (or if she or he is the one with the conflict, then to the board president), who shall bring the matter to the attention of the board. Disclosure involving directors should be made to the board president, (or if he or she isthe one with the conflict, then to the board vicepresident) who shall bring these matters to the board. The board shall determine whether a conflict exists and in the case of an existing conflict, whether the contemplating transaction may be authorized as just, fair and reasonable. The decision of the board on these matters, will rest in their sole discretion and their concern must be the welfare of the school and the advancement of its purpose.”

“The compensation of the principal/head of school is reviewed annually by the board of directors. Compensation is established and documented by the officers of the board using a comparison of salaries of similar institutions.”

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

“In june 2017, the gasb issued statement no. 87, leases, which requires recognition of certain lease assets and iabilities for leases that previously were classified as operating leases. Under this guidance, a lessee is required to recognize an intangible right-to-use lease asset. The school adopted the standard on july 1, 2021 on a prospective basis. Upon adoption of the standard, $664,938 in leased building was recorded in the statement of net position, with a current balance of $215,579 net of accumulated depreciation.”

“In june 2017, the gasb issued statement no. 87, leases, which requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases. Under this guidance, a lessee is required to recognize a lease liability. Upon adoption of the standard, $664,938 in lease liability was recorded in the statement of net position, reduced by monthly rent with a calculated discount rate, over the term of the lease. Lease liability current net balance is $235,589 as of fiscal year end june 30, 2025.”