Rolling Hills Preparatory School

“Describe the process the organization uses to review form 990. The completed form 990 will be provided to the finance committee sufficiently in advance of the filing deadline to enable a detailed and conscientious review by all members of the committee. The tax preparers will electronically deliver the tax return to the committee and any concerns of the finance committee will be addressed and changes will be made accordingly. After all changes and issues are addressed, the final form 990 will be provided to all board members before the officer signs and files the return with the irs.”

“Describe the process used to monitor and enforce compliance with the conflict of interest policy. Each trustee, officer, and member of a committee with powers delegated by the governing board, as well as members of administration shall annually sign a statement that affirms such person has received a copy of the conflict of interest policy, has read and understands the policy, has agreed to comply with the policy, and understands the school is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities that accomplish one or more of its tax-exempt purposes. If the policy is violated appropriate action will be taken, including removal from the board of directors, if necessary.”

“Describe the process used to determine compensation of the organization's officers or key employees. Compensation is determined by the finance committee. Officer and key employee compensation is determined through employee contracts, compensation surveys, and approval by the board. The board chair works closely with the head of the school to set and adjust goals for each contract period. The two meet monthly to discuss progress and keep the chair up to date on items of importance that are happening at the school. Towards the end of each contract period, the chair and head of school evaluate progress more formally and set goals for the upcoming contract. The chair reports to the finance committee who reports to the full board prior to the head of the school's contract renewal. Currently, this is a three-year contract cycle. The head of the school's compensation is set independently by the finance committee based on performance results and by using nais and cais compensation statistics. The finance committee recommends the compensation package to the board who has the ultimate approval. The approval is made independently. This process takes place every three years. The last date was june 2020. Compensation for the top financial employee and any key employees is determined annually. The head of the school works closely with the controller to set goals for each year and reviews the progress on those goals before the end of each contract year. Shortly before the new contract is offered, the head of the school does a formal review of the progress and performance from the previous contract year and sets goals for the upcoming year. The annual compensation adjustment is set at a fixed percentage by the head of the school. Annual salary rate adjustment across the organization is recommended by the head of the school and approved independently by the board.”

“Describe how the organization makes its governing documents, conflict of interest policy, and financial statements available to the public. The form 990, the form 1023, and the determination letter are available upon written or verbal request to anyone who inquires to the organization. Governing documents are also available at the organization's office.”

“In march 2020, congress passed the paycheck protection program (ppp), authorizing loans to small businesses for use in paying employees that they continue to employ throughout the covid-19 pandemic and for rent, utilities, and interest on mortgages. Loans obtained through the ppp are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. In february 2021, the school received a second draw from the ppp in the amount of $1,250,055. Forgiveness of the full principal and interest was granted by the sba in september 2021. The school recognized ppp grant income on the accompanying statement of activities of $1,250,055 for the year ended june 30, 2022.”

“The employee retention credit (erc) was enacted in march 2020 by the cares act and amended in december 2020, by the taxpayer certainty and disaster tax relief act (tcdtr act). The erc is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer paid to employees in calendar year 2020 (between march 2020 and before january 2021) and 70% of the qualified wages in calendar year 2021. For the year ended june 30, 2022, the school recognized income for the ercs totaling $931,289 on the accompanying statement of activities.”