Idea Public Schools

“The finance committee reviews Form 990 prior to filing. Points raised by the review are resolved between key financial officers, other management officers (if needed) and the organization's outside tax preparers before filing. In addition, Form 990 will be presented to the full board prior to filing with the IRS.”

“IDEA Public Schools regularly and consistently monitors and enforces compliance with the conflict of interest policy by having all officers sign an annual TEA governance reporting form. Additionally, the board is required to complete conflict of interest disclosure forms.”

“For the CEO's compensation, the board of directors contracted an independent consultant to conduct a survey of CEOs in comparable non-profit organizations as defined by the third party's market assessment. Based on the analysis, the board of directors approved a contract for the CEO within the identified reasonable total compensation range. For other executives, compensation was determined using a similar process of industry benchmarking based on data aggregated by an independent consultant that specialized in non-profit compensation reports.”

“The organization's financial statements are available on its website. All other documents are available upon request.”

“On Form 990 for the tax year ending June 30, 2020, IDEA reported that it was probable that a significant diversion of assets had occurred, and described an ongoing review of uses of IDEA's assets that had occurred and was continuing to occur at the time of filing such return. IDEA has identified what it believes to be excess benefit transactions of which it became aware prior to filing this return. These transactions are explained on Schedule L, Part V. IDEA continues working with outside counsel and advisors to review certain uses of IDEA's assets, including services performed by IDEA employees for the benefit of disqualified persons no longer employed by IDEA, personal use of an apartment leased by IDEA, personal uses of event tickets and seating arrangements, purchases of property that may have benefitted a disqualified person no longer employed by IDEA, a business relationship between IDEA and disqualified persons no longer employed by or otherwise associated with IDEA, uses of private aircraft flights, and uses of IDEA fleet vehicles for personal purposes. With respect to certain uses of IDEA's assets, lack of documentation with respect to such uses is creating difficulty in establishing the amount of any excess benefits, if any. The result of such review may be that IDEA identifies transactions that it believes constitute excess benefit transactions. At the time of filing this return, IDEA is not able to determine whether uses of its assets remaining under review resulted in excess benefit transactions. As is set forth in public statements made by IDEA's board of directors and disclosures made on IDEA's return for the tax year ending June 30, 2020, IDEA has adopted policies, and revised previous policies, to ensure that assets of IDEA are used for its exempt purposes and in a manner consistent with state laws applicable to IDEA.”

“Audit adjustments due to adoption of ASU 2016-02 720,872.”