Democracy Prep Agassi Campus

“Effective july 1, 2017, the democracy prep agassi campus entered into a management agreement with democracy prep public schools ("dpps") and democracy prep nevada ("dpn") to support the school's educational process, management and operations. As compensation to dpps for these services rendered, the school shall pay to dpps an annual fee equal to 15% of the school's non-competitive public revenue in the initial term of one year. The percentage will decrease by one-half percent (0.5%) in each renewal term until it reaches a minimum of 12% of the non-competitive public revenue of the school and will remain in effect for all subsequent renewal terms. Following the initial term, the agreement will automatically extend for successive one-year periods unless terminated by either party. The agreement includes a provision which states that in the event dpac incurs an operating deficit due to management fees charged, the management fees will be reduced to an amount that would result in a zero change in fund balance/net position. For the year ended june 30, 2018, management fees charged by dpps were reduced by the entire amount dpac incurred of $1,212,156 to reduce the operating deficit.”

“Democracy prep nevada llc, a wholly owned subsidiary of democracy prep public schools, has the authority to elect the board of directors of the organization.”

“The following corporate events shall be approved by democracy prep nevada llc: (a) amendments to the articles of incorporation; (b) amendments to the bylaws: (c) sale of all or substantially all of the assets of the corporation: (d) any mergers, consolidations, conversion or domestication of the corporation; or (e) dissolution of the corporation”

“A draft of the form 990 is reviewed by management and distributed to all board members prior to filing with the internal revenue service.”

“Board members and officers are required to disclose the existence of any conflicts of interest on an annual basis. Before board or committee action on a contract or transaction involving a conflict of interest, a director or committee member having a conflict of interest and who is in attendance at the meeting shall disclose all facts material to the conflict of interest. Such disclosure shall be reflected in the minutes of the meeting. A person who has a conflict of interest with respect to a contract or transaction that will be voted on at a meeting shall not be counted in determining the presence of a quorum for purposes of the vote.”

“The organization makes its form 990 available for public inspection as required under section 6104 of the internal revenue code. The return is posted on guidestar.org and other similar types of websites. In addition, the financial statements, conflict of interest policy, articles of incorporation and by-laws are also available upon written request at 1201 w. Lake mead blvd., las vegas, nv 89106, or by calling the organization directly at (702)316-2410.”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant.”