Greensboro Academy Inc.

“The board of directors of the academy has entered into a management agreement ("the agreement") with national heritage academies, inc. ("nha") for the provision of all educational, management and business services related to the operation of the academy. The agreement was submitted and approved by the north carolina state board of education as part of the chartering process. Pursuant to the terms of the agreement, nha receives all revenue allocated to the academy as its management fee, from which it provides its comprehensive educational management services as specified in the agreement and required under the academy's charter (i.e., all of the operating costs of the academy identified in the budget approved by the academy's board). The functional expenses reported in part ix are the expenses paid from the funds remitted under the nha agreement. In the event expenses exceed revenues, nha covers the shortfall with an in-kind contribution. This agreement has been approved by the north carolina state board of education during the academy's charter process as well as the internal revenue service during the academy's exemption application process.”

“A draft copy of the Form 990 was provided to the Board of Directors in a package of materials for review and Board approval was obtained prior to finalization.”

“The academy's bylaws require that any director, officer, key employee or committee member who has a conflict of interest must promptly notify the board of the conflict and the conflict will be duly noted in the board of director meeting minutes. The person with the conflict will be excluded from future decision making on this issue. The board may take formal, corrective and disciplinary actions if proper disclosure of conflicts of interest are not made.”

“Documents approved by the board of directors, including the academy's audited financial statements, are available to the public upon request.”

“The Academys functional expenses consists primarily of a management fee to National Heritage Academies (NHA) for the comprehensive educational management services provided, in line with the management agreement approved as part of the chartering process. The functional expenses reported in Part IX are the expenses incurred by NHA on behalf of the school and paid using the funds remitted by the Academy under management fee. Under the NHA management agreement, NHA provides the school with all personnel required (i.e. teachers, specialized aide, principals, office staff, etc). The salaries and wages and related payroll expenses reported in the Statement of Functional Expenses in Part IX refer to the compensation expenses of these NHA employees working at the Academy. Likewise, all expenses reported in Part IX are expenses incurred in the operation of the Academy by NHA.”