Building 21

“A copy of the form 990 is provided to the board for review prior to filing.”

“Each year, all directors and officers review the conflict of interest policy and submit a disclosure statement disclosing any existing conflicts. In addition, the board will be notified of any potential conflicts of interest as they arise.”

“Compensation is approved by the board based on comparability data. Should the official be a board member, they may not participate in the transaction.”

“The process used for top official is also be used for officers or key employees.”

“Documents will be made available upon written request.”

“Part ix - building renovation expenses buildings are owned by the local school districts, renovations are considered expenses as they do not improve the value of or extend the life of the organizations assets. The organization is considering the renovation a "donation". The building is provided by the local school districts in order to allow building 21 to provide education. Building 21 is not leasing the building. During the fiscal year ending june 30, 2023, building 21 entered into a lease for building space in philadelphia to assist with the launchpad program. Some of the building renovation expenses relate to this new lease.”

“During the fiscal year ending june 30, 2023, building 21 was required to implement the accounting standard asc 842 - leases. The accounting principle greatly changes the way that leases are recorded on the financials. Specifically, both a right-of-use (rou) asset and liability are recorded. Corresponding lease and amortization expenses are also recorded. Because of the relative size of our lease when compared to other financial statement items, these corresponding expenses are large. For the year ended june 30, 2024, our net loss is 512,955, with over 300,000 of this due to the way the accounting standard requires the lease reporting. As an organization, we realize this may appear concerning. However, it is important to note that our cash loss was only 210,017. Building 21 continues to be in a strong overall position without any going concern.”