Hmong College Prep Academy

“Pao Yang & Christianna Hang - Family Relationship”

“The School has one class of membership: parents/guardians of enrolled students.”

“The Form 990 is reviewed in detail by the superintendent. Once the Form 990 is compiled, it will be further reviewed by a Board Member of the Academy.”

“The Board Members are required to sign off on an annual conflict of interest form indicating they have acknowledged that no conflicts of interest existed. They are also required to review all vendor contracts as presented to the Board and to ensure that no conflicts of interest exist with vendors. The School has not had a case where persons with conflict of interest existed since inception. If a conflict would arise, the individual would disclose the facts and circumstances to the remaining Board Members who would review and determine if a conflict exists. The individual would not be allowed to participate in the determination, discussion, or vote on the transaction. All proceedings related to conflicts of interest would be documented in the meeting minutes.”

“The Governance Board Review Committee used the appropriate data including compensation of other like school districts to determine fair and equitable compensation. This process is part of the Superintendent contractual renewal process that takes place every three years. The renewal of the Superintendent contract is documented in Board meeting minutes. This process was last conducted for the 2012-13 School Year for the Superintendent, Christianna Hang.”

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

“The School implemented two new accounting standards (GASB 68 and 71) for the year ended June 30, 2015 which required recognition of the schools proportionate share of the unfunded pension liability. As a charter school in the state of Minnesota, participation in two multiple-employer, cost-sharing defined benefit pension plans is statutorily required. The schools contributions to the plans are also regulated by statute and are based on a percentage of salaries and wages earned by current employees. Therefore, while the Net Pension Liability is reported on the schools Statement of Net Position, the school is not in a position to directly control the liability or the subsequent liquidation of the liability.”

“Per MN Statute 124D.10, Charter Schools are required to have a licensed teacher as a member of the Board of Directors. James Cave is a Board Member, but received compensation for his services as a teacher.”