2024-04-26T09:03:16-05:00 2023-06-30 366055558 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2022-07-01 342049530 HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL II HARL 2123603255 35 EAST 125TH STREET NEW YORK NY 10035 CONNOR FOURNIER CFO 2123603255 2024-04-26 1 CONNOR FOURNIER XXX-XX-XXXX 0 SCOTT THOMPSETT P00741490 2125990100 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z KWAME OWUSU-KESSE 35 EAST 125TH STREET NEW YORK NY 10035 27936105 0 X WWW.HCZPROMISE.ORG X 2005 NY TO PROVIDE HIGH QUALITY, STANDARDS-BASED ACADEMIC PROGRAMS FOR STUDENTS, GRADES K-12. 7 5 209 0 0 0 25490348 27934327 0 0 0 20 0 1758 25490348 27936105 258236 175678 0 0 19626564 18537599 0 0 0 6247531 10427582 26132331 29140859 -641983 -1204754 11603110 67498496 7999586 64164877 3603524 3333619 X SEE SCHEDULE O 0 0 27596386 175678 0 SEE SCHEDULE O 27596386 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 55 0 1 209 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 5 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 X X LINDA IBUZOR 2123603255 35 E 125TH STREET NEW YORK NY 10035 KWAME OWUSU-KESSE PRESIDENT/CEO 2.00 42.00 X X 0 762665 231116 GEOFFREY CANADA CHAIRMAN 2.00 42.00 X X 0 632764 66288 KENNETH LANGONE CHAIRMAN EMERITUS 2.00 3.00 X X 0 0 0 STANLEY DRUCKENMILLER TRUSTEE 2.00 3.00 X 0 0 0 DENISE FULLER TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 MITCH KURZ TREASURER/SECRETARY 2.00 3.00 X X 0 0 0 WILLIE MAE LEWIS TRUSTEE 2.00 2.00 X 0 0 0 ALFONSO WYATT TRUSTEE 2.00 2.00 X 0 0 0 FATIME CADOO PARENT REP (NON-VOTING) 2.00 2.00 X 0 0 0 ELLANOR BODIE BRIZENDINE TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 KEITH MEISTER TRUSTEE (NON-VOTING) 2.00 3.00 X 0 0 0 NANA A ANNAN CHIEF OPERATING OFFICER 2.00 42.00 X 0 316895 92792 CONNOR FOURNIER CHIEF FINANCIAL OFF. 2.00 42.00 X 0 375829 14276 SHONDELL JAMES PRINCIPAL, PA II ELEMENTARY 40.00 0.00 X 395938 0 45329 AMANDA NEAL PRINCIPAL 40.00 0.00 X 212408 0 52805 RYAN CARROLL PRINCIPAL 40.00 0.00 X 228445 0 54932 HUMMA M QURESHI EDUCATION DIRECTOR 40.00 0.00 X 175506 0 53191 KAITLYNN CONLEY PRINCIPAL 40.00 0.00 X 192222 0 32937 JAMES D HUTTER FORMER CHIEF FINANCIAL OFF. 2.00 42.00 X 0 133174 37500 1204519 2221327 681166 53 1 1 0 MANHATTAN ENTERPRISE GROUP LLC DBA MAN 521 5TH AVE NEW YORK NY 10175 TEST PREP 135050 INSTITUTE FOR FAMILY HEALTH 230 WEST 17TH STREET NEW YORK NY 10011 MEDICAL SERVICES 105939 2 1452255 25894831 587241 87241 27934327 20 20 MISCELLANEOUS INCOME 900099 1758 1758 1758 27936105 0 0 1778 175678 175678 14676062 13898231 777831 314793 298109 16684 2326139 2202854 123285 1220605 1155913 64692 89279 89279 1326808 1256487 70321 234121 221713 12408 411751 389928 21823 5311922 4999355 312567 227541 226699 842 36199 34280 1919 315366 298652 16714 FOOD 1334092 1334092 0 CLASSROOM SUPPLIES 319887 319887 0 TRAINING 291243 275807 15436 UNIFORM 139338 139338 390035 369363 20672 29140859 27596386 1544473 0 6717508 314541 70867 70881 2028920 7005941 705400 318066 642345 356859 89415 285486 1991000 59503581 11603110 67498496 2591200 2864944 5408386 61299933 7999586 64164877 X 3603524 3333619 3603524 3333619 11603110 67498496 -1204754 934849 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 70212 40632 29580 340758 256226 84532 231375 60001 171374 285486 DUE FROM RELATED PARTIES 1292896 RIGHT-OF-USE ASSETS 58210685 59503581 DEFERRED COMPENSATION PAYABLE 2176900 LEASE LIABILITY OBLIGATIONS 59123033 61299933 X 29698941 1762836 1762836 27936105 0 27936105 29968846 827987 827987 29140859 0 29140859 PART X, LINE 2: THE SCHOOL RECOGNIZES THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION IN THE FINANCIAL STATEMENTS ONLY IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY.THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. THE SCHOOL IS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(3), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THE SCHOOL HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT WAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE SCHOOL HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS FOR THE YEARS ENDING JUNE 30, 2023 OR 2022. PART IX, RIGHT-OF-USE ASSETS: THE FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") IMPLEMENTED A NEW LEASE ACCOUNTING STANDARD THAT BECAME EFFECTIVE FOR HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL II IN THE YEAR ENDING JUNE 30, 2023. THIS ACCOUNTING STANDARD WAS EFFECTUATED TO IMPROVE THE TRANSPARENCY SURROUNDING KEY INFORMATION PERTAINING TO AN EXEMPT ORGANIZATION'S LEASING ARRANGEMENTS (AND TO ENSURE THAT ALL ORGANIZATIONS WERE RECORDING THE TRANSACTIONS UNIFORMLY ON THEIR BALANCE SHEETS). 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 SEE SUPPLEMENTAL PAGE FORM 990, SCHEDULE E, LINE 3 THE HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL DOES NOT DISCRIMINATE ON THE BASIS OF PRIOR ACADEMIC ACHIEVEMENT, ATHLETIC ABILITY, DISABILITY, RACE, CREED, NATIONAL ORIGIN, GENDER, RELIGION, OR ANY OTHER GROUNDS THAT WOULD BE UNLAWFUL. THE SCHOOL'S ADMISSIONS PROCEDURES ARE CONSISTENT WITH THE PROVISIONS OF NEW YORK EDUCATION LAW 2854(2). FORM 990, SCHEDULE E, LINE 6A UNDER THE SCHOOL'S CHARTER SCHOOL AGREEMENT AND THE CHARTER SCHOOLS ACT, THE SCHOOL IS ENTITLED TO RECEIVE FUNDING FROM FEDERAL, STATE AND LOCAL SOURCES THAT ARE AVAILABLE TO PUBLIC SCHOOLS. THESE FUNDS INCLUDE STATE PUPIL ENROLLMENT FUNDS, FEDERAL FOOD SUBSIDIES AND TITLES I, II AND IV FUNDING. IN ADDITION TO ITS TRADITIONAL GOVERNMENTAL FUNDING SOURCES, THE ACADEMY PARTICIPATED IN THE FEDERAL GOVERNMENT'S EMPLOYEE RETENTION TAX CREDIT PROGRAM DUE TO THE CLOSURE OF THE ACADEMY DURING THE PANDEMIC. THE ACADEMY REPORTED $2,526,810 IN EMPLOYEE RETENTION TAX CREDITS IN FORM 990, PART VIII, LINE 1(E). 1 INCENTIVES (GIFT CARDS) 144 175678 PART I, LINE 2: THE PROMISE ACADEMY OCCASIONALLY OFFERS SMALL AMOUNTS OF CASH (GIFT-CARDS) AND NON-CASH (T-SHIRTS, SUPPLIES) ASSISTANCE TO STUDENTS AND/OR EMPLOYEES BASED EITHER ON NEED OR AS INCENTIVES TO INCREASE PRODUCTIVITY OR SCHOOL PERFORMANCE. THESE PAYMENTS ARE TYPICALLY UNDER $100 AND REFLECT THE ACADEMY'S COMMITMENT TO REWARDING ITS STUDENTS FOR EXCELLENT ACADEMIC PERFORMANCE OR FOR RECOGNIZING ITS STAFF FOR CONTINUING TO CREATE A FLOURISHING EDUCATIONAL ENVIRONMENT FOR THE STUDENTS. THE ACADEMY RETAINS VERY DETAILED RECORDS OF ITS INCENTIVE AWARDS TO ENSURE THEY ARE FAIRLY DISTRIBUTED AND DOCUMENTED ACCORDINGLY. 0 1 0 0 0 0 0 1 0 KWAME OWUSU-KESSE PRESIDENT/CEO 0 572985 0 189680 0 0 0 173700 0 57416 0 993781 0 69680 GEOFFREY CANADA CHAIRMAN 0 412764 0 220000 0 0 0 8700 0 57588 0 699052 0 0 SHONDELL JAMES PRINCIPAL, PA II ELEMENTARY 115321 0 280617 0 0 0 30000 0 15329 0 441267 0 52260 0 NANA A ANNAN CHIEF OPERATING OFFICER 0 254395 0 62500 0 0 0 61053 0 31739 0 409687 0 0 CONNOR FOURNIER CHIEF FINANCIAL OFF. 0 330829 0 45000 0 0 0 4133 0 10143 0 390105 0 0 RYAN CARROLL PRINCIPAL 166637 0 61808 0 0 0 25453 0 29479 0 283377 0 41808 0 AMANDA NEAL PRINCIPAL 165568 0 46840 0 0 0 23326 0 29479 0 265213 0 34840 0 HUMMA M QURESHI EDUCATION DIRECTOR 130111 0 45395 0 0 0 22673 0 30518 0 228697 0 33395 0 KAITLYNN CONLEY PRINCIPAL 172222 0 20000 0 0 0 23184 0 9753 0 225159 0 0 0 JAMES D HUTTER FORMER CHIEF FINANCIAL OFF. 0 117470 0 15704 0 0 0 37500 0 0 0 170674 0 0 PART I, LINE 4B HARLEM CHILDREN'S ZONE MAINTAINS A SECTION 457(F) PLAN AND A SUPPLEMENTAL BONUS PLAN FOR CERTAIN ELIGIBLE EMPLOYEES OF THE SCHOOL. THESE PLANS ("THE PLANS") ARE TAX-DEFERRED EMPLOYEE SAVINGS PLANS THAT AIM TO SERVE AS A RETENTION TOOL FOR DIRECTORS, OFFICERS, PRINCIPALS AND SENIOR STAFF. HARLEM CHILDREN'S ZONE MAKES AN ANNUAL DEPOSIT INTO THE PLAN THAT IS VALUED AT 150% OF THE INDIVIDUAL EMPLOYEE'S BONUS FOR THE CURRENT YEAR. THE EMPLOYEE'S ACCOUNT ACCUMULATES ASSOCIATED EARNINGS OR LOSSES ON THE INVESTMENT OF THE CONTRIBUTED AMOUNT IN THE NO MARGIN SENIOR GROWTH FUND, WHICH IS MANAGED BY THE DUQUESNE FAMILY OFFICE, AT NO COST TO THE HARLEM CHILDREN'S ZONE OR THE EMPLOYEE. THE AMOUNTS CONTRIBUTED BY THE HARLEM CHILDREN'S ZONE, ALONG WITH THE ASSOCIATED EARNINGS OR LOSSES, VEST AFTER FIVE YEARS FROM THE DATE OF THE INITIAL CONTRIBUTION AND WILL BE PAID TO ELIGIBLE EMPLOYEES WHEN VESTED. BEGINNING FISCAL YEAR 2016, THE VESTING PERIOD WAS BIFURCATED BETWEEN TEACHERS AND ADMINISTRATIVE STAFF, SUCH THAT AMOUNTS CONTRIBUTED TO THE PLAN NOW VEST THREE AND FIVE YEARS AFTER THE DATE OF THE INITIAL CONTRIBUTION FOR ELIGIBLE TEACHERS AND ADMINISTRATIVE STAFF, RESPECTIVELY. TERMINATED EMPLOYEES BECOME VESTED IMMEDIATELY AT THE DATE OF THEIR TERMINATION. EMPLOYEES WHO MEET THE AGE AND SERVICE PROVISIONS OF THE PLAN (AGE VESTING) ARE VESTED IMMEDIATELY UPON MEETING THOSE PROVISIONS. HOWEVER, IF A PARTICIPATING EMPLOYEE LEAVES VOLUNTARILY, INCLUDING RETIREMENT IF THEY HAVE NOT REACHED THE AGE VESTING PROVISIONS, THEN THEIR CUMULATIVE UNVESTED CONTRIBUTION MADE BY HCZ AND ASSOCIATED EARNINGS OR LOSSES ARE FORFEITED. FOR CALENDAR YEAR 2022, EMPLOYEES RECEIVED A PAYOUT OF DEFERRED COMPENSATION FROM THE GROWTH FUND AND THOSE AMOUNTS HAVE BEEN RECORDED IN SCHEDULE J, PART II, COLUMN (B)(II) AND, BECAUSE THAT PAYOUT REPRESENTS COMPENSATION THAT WAS REPORTED ON PREVIOUS FORMS 990 AS DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN (C), IT IS RECORDED IN SCHEDULE J, PART II COLUMN (F). GEOFFREY CANADA, AN OFFICER OF HCZ, MET THE AGE AND SERVICE PROVISIONS OF THE 457 (F) PLAN (AGE VESTING) FOR CALENDAR YEAR 2022 THAT RESULTED IN IMMEDIATE VESTING OF HCZ'S GROWTH FUND CONTRIBUTION. THIS AMOUNT IS INCLUDED IN FORM 990, SCHEDULE J, COLUMN B (II). PART I, LINE 7 AS NOTED IN THE NARRATIVE TO FORM 990, PART VI, LINE 15, ALL BONUSES OR MERIT PAY INCREASES ISSUED TO PROMISE ACADEMY II EMPLOYEES ARE DETERMINED BY THE CEO, KWAME OWUSU-KESSE, WITH INPUT FROM THE SUPERINTENDENT. ALL BONUSES ARE PERFORMANCE BASED AND THE RECIPIENTS ARE NOT PROVIDED ANY INPUT INTO THE AMOUNT OF THE BONUS RECEIVED. X EDUC SUPPLIES 1 80226 FMV X LAPTOPS 30 7015 FMV 0 1 0 FORM 990, PART I, LINE 1 THE MISSION OF HARLEM CHILDREN'S ZONE PROMISE ACADEMY II CHARTER SCHOOL IS TO ENSURE THAT CHILDREN FROM UNDER-SERVED COMMUNITIES ARE ACADEMICALLY, SOCIALLY AND EMOTIONALLY READY TO SUCCEED IN COLLEGE AND IN TOMORROW'S WORKPLACE. THE SCHOOL'S COMMITTED, CARING STAFF PROVIDE COMPREHENSIVE SERVICES TO CHILDREN IN KINDERGARTEN THROUGH 12TH GRADE - AS WELL AS TO THEIR FAMILIES - SO THEY ARE WELL EQUIPPED FOR THE OPPORTUNITIES AHEAD. FORM 990, PART III, LINE 4A THE PROMISE ACADEMY IS UNPARALLELED IN ITS EXCELLENCE, RIGOR, AND CARE. IN ADDITION TO A HIGH-QUALITY, STANDARDS-BASED EDUCATION STUDENTS AND THEIR FAMILIES HAVE ACCESS TO HCZ'S COMPREHENSIVE NETWORK OF SUPPORTS, INCLUDING COUNSELING, BENEFITS ASSISTANCE, AND OTHER SOCIAL SERVICES. OUR PROMISE IS TO DO WHATEVER IT TAKES TO ADDRESS ANY ISSUE, EVEN THOSE OUTSIDE OF THE CLASSROOM, THAT CAN HINDER A CHILD'S FUTURE. OUR APPROACH IS TO ADDRESS THE WHOLE CHILD, AND TO DO SO OVER YEARS AND YEARS. THAT MEANS WE OFFER A HIGH-QUALITY EDUCATION, AND WE ALSO DO WHATEVER IT TAKES TO ADDRESS ANY ISSUE EVEN THOSE OUTSIDE THE CLASSROOM THAT CAN HINDER A CHILD'S SUCCESS. WE HAVE HUNDREDS OF EXPERIENCED FACULTY DEDICATED TO FOSTERING OUR STUDENTS' INTELLIGENCE, HEALTH, CHARACTER AND CIVIC-MINDEDNESS. TO THAT END, THE SCHOOL HAS AN EXTENDED SCHOOL DAY TO GIVE STUDENTS MORE TIME ON-TASK TO MASTER BASIC SUBJECTS AND HAVE ENOUGH TIME TO PURSUE SCIENCE, SOCIAL STUDIES, THE ARTS AND PHYSICAL EDUCATION. THE STUDENTS ALSO HAVE ACCESS TO A FREE AFTER-SCHOOL PROGRAM THAT WORKS HAND IN HAND WITH THE DAY SCHOOL AS WELL AS OFFERING STUDENTS ENRICHMENT CLASSES IN A VARIETY OF DISCIPLINES SUCH AS DANCE, PHOTOGRAPHY, CHESS AND MORE. THE SCHOOL ALSO HAS A MULTI-FACETED PROGRAM TO MAKE SURE STUDENTS ARE READY FOR COLLEGE, WHICH INCLUDES SAT PREPARATION CLASSES, COLLEGE COUNSELING AND CAMPUS VISITS, AS WELL AS SUPPORT FOR THE COLLEGE APPLICATION AND SELECTION PROCESSES. AS A RESULT, PROMISE ACADEMY STUDENTS ACHIEVE HIGHER AGGREGATE SCORES ON THE ENGLISH LANGUAGE ARTS TEST THAN STUDENTS IN THE LOCAL DISTRICT 5, NEW YORK CITY AS A WHOLE, NEW YORK STATE AS A WHOLE, NEW YORK STATE WHITE AND BLACK STUDENTS, AND NEW YORK CITY BLACK STUDENTS. ON THE MATH EXAM, THEY OUTPERFORM THE LOCAL DISTRICT, NEW YORK CITY, NEW YORK STATE, NEW YORK CITY BLACKS STUDENTS, NEW YORK CITY AND NEW YORK STATE WHITE STUDENTS. FOR MORE DETAILED INFORMATION ABOUT THE ACADEMY'S PROGRAMMATIC ACTIVITIES, PLEASE VISIT WWW.HCZPROMISE.ORG. FORM 990, PART VI, SECTION A, LINE 8B THE CHARTER SCHOOL HAS NO OTHER COMMITTEES OTHER THAN ITS BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B PROCESS USED TO REVIEW FORM 990 THE FORM 990 WAS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S FINANCE DEPARTMENT. A COPY OF THE DRAFT FORM 990 WAS CIRCULATED TO THE BOARD OF TRUSTEES FOR DISCUSSION AND COMMENT. EACH BOARD OF TRUSTEES MEMBER WAS PROVIDED AN OPPORTUNITY TO COMMENT ON THE INFORMATION CONTAINED IN THE 990 PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C ENFORCEMENT OF CONFLICT OF INTEREST POLICY PROMISE ACADEMY II OPERATES UNDER THE CONFLICT-OF-INTEREST POLICY OF ITS INSTITUTIONAL PARTNER, HARLEM CHILDREN'S ZONE. ALL EMPLOYEES ARE EXPECTED TO USE HONESTY, GOOD JUDGEMENT AND HIGH ETHICAL STANDARDS IN ALL PROFESSIONAL DEALINGS. ALL EMPLOYEES MUST AVOID ANY ACTIONS THAT COULD CREATE A CONFLICT OF INTEREST OR THE APPEARANCE OF SUCH A CONFLICT OR REFLECT UNFAVORABLY ON THEM OR ON HARLEM CHILDREN'S ZONE PROMISE ACADEMY II. AN EMPLOYEE MUST DISCLOSE IF SHE/HE OR AN IMMEDIATE FAMILY MEMBER HAS ANY POTENTIAL CONFLICT OF INTEREST, SUCH AS A RELATIONSHIP TO A THIRD-PARTY VENDOR WHO SEEKS OR HAS A BUSINESS RELATIONSHIP WITH HARLEM CHILDREN'S ZONE PROMISE ACADEMY II. AN EMPLOYEE'S VIOLATION OF THIS POLICY, ESPECIALLY A FAILURE TO REPRESENT ACCURATELY HIS OR HER CONNECTION OR ACTION ON BEHALF OF HARLEM CHILDREN'S ZONE PROMISE ACADEMY II AND A THIRD PARTY WILL CONSTITUTE GROUNDS FOR DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION OF EMPLOYMENT. FORM 990, PART VI, LINES 13 & 14 WHISTLEBLOWER AND DOCUMENT RETENTION POLICY THE PROMISE ACADEMY II OPERATES UNDER THE WHISTLEBLOWER AND DOCUMENT RETENTION POLICY OF ITS INSTITUTIONAL PARTNER, HARLEM CHILDREN'S ZONE. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL IS KWAME OWUSU-KESSE. THE PROCEDURES FOR DETERMINING MR. OWUSU-KESSE'S COMPENSATION PACKAGE ARE DOCUMENTED IN HARLEM CHILDREN'S ZONE FORM 990 AS THAT ORGANIZATION PAYS HIS COMPENSATION. MR. OWUSU-KESSE MAKES ALL COMPENSATION DECISIONS, WITH INPUT FROM THE SUPERINTENDENT, FOR THE EMPLOYEES AT THE PROMISE ACADEMY II, INCLUDING THE PRINCIPALS. TO THE EXTENT THAT ANY MERIT PAY OR BONUSES ARE WARRANTED, THE PRINCIPALS WILL MAKE RECOMMENDATIONS FOR TEACHERS AND ADMINISTRATORS. ALL BONUSES ARE STRICTLY TIED TO EMPLOYEE PERFORMANCE, USUALLY DETERMINED BY STUDENT ACADEMIC SUCCESS AND WELL-BEING. THE ORGANIZATION MAKES A CONSCIOUS EFFORT TO COMPENSATE ITS EXECUTIVES COMMENSURATE WITH THE MARKET. FORM 990, PART VI, SECTION C, LINE 19 AVAILABILITY OF DOCUMENTS TO THE PUBLIC PROMISE ACADEMY II MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS. THE FORM 990 IS LIKEWISE PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. THE ORGANIZATION'S FINANCIAL STATEMENTS AND FORM 990 ARE PUBLISHED ON ITS WEBSITE; ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. HARLEM CHILDREN'S ZONE 35 EAST 125TH STREET NEW YORK NY 10035 237112974 SOCIAL SVCS NY 501(C)(3) LINE 7 N/A 0 HARLEM CHILDREN'S ZONE PROMISE ACADEMY I 245 WEST 129TH STREET NEW YORK NY 10027 760756768 SCHOOL NY 501(C)(3) LINE 2 HCZ 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 1 1 1 1 1 FORM 990, SCHEDULE R: PURSUANT TO THE TERMS OF A COMMITMENT LETTER BETWEEN HARLEM CHILDREN'S ZONE (HCZ) AND PROMISE ACADEMY II, HCZ, AS THE SCHOOL'S INSTITUTIONAL PARTNER, COMMITTED TO PROVIDE THE ACADEMY, DURING THE INITIAL FIVE-YEAR TERM OF ITS CHARTER, CERTAIN SERVICES AT NO COST. THE CHARTER SCHOOL HAS RENEWED ITS COMMITMENT LETTER WITH HARLEM CHILDREN'S ZONE FOR AN ADDITIONAL FIVE YEAR PERIOD THAT RUNS THROUGH JUNE 30, 2024. THESE SERVICES INCLUDE FINANCIAL MANAGEMENT, SOCIAL, TECHNOLOGY, FUNDRAISING, PUBLIC RELATIONS, AND TEACHING ASSISTANCE SERVICES. IN ADDITION, PROMISE ACADEMY II RECEIVES CONTRIBUTED SPACE (AT TWO LOCATIONS) FROM HARLEM CHILDREN ZONE AND THE DEPARTMENT OF EDUCATION. THE AMOUNT REPORTED FOR IN-KIND SERVICES AND CONTRIBUTED SPACE FOR THE YEAR ENDING JUNE 30, 2023 TOTALS $1,762,836. HCZ MAINTAINS A 457(F) PLAN FOR CERTAIN ELIGIBLE EMPLOYEES OF THE SCHOOL. EMPLOYEES BECOME ELIGIBLE TO PARTICIPATE IN THIS PLAN BASED SOLELY AT THE DISCRETION OF THE SCHOOL'S BOARD OF TRUSTEES. THE AMOUNTS CONTRIBUTED WILL VEST IN EITHER THREE OR FIVE YEARS. HCZ PROVIDES THE SCHOOL WITH AN ANNUAL SUBSIDY TO COVER THIS COST BY CONTRIBUTING TO A HCZ INVESTMENT ACCOUNT. DURING FISCAL 2023, HCZ PROVIDED A SUBSIDY OF $625,166 FOR THE FISCAL 2023 CONTRIBUTION TO THE 457(F) PLAN. IN ADDITION TO THE 457(F) PLAN SUBSIDY, THE ACADEMY ALSO RECEIVED ADDITIONAL GRANT FUNDING IN THE AMOUNT OF $827,089 FROM THE HARLEM CHILDREN ZONE, (FOR A TOTAL CASH FUNDING OF $1,452,255 FOR THE YEAR ENDING JUNE 30, 2023).