2020-05-15T10:11:53-05:00 2019-06-30 743001153 PMB HELIN DONOVAN LLP 12301 RESEARCH BLVD BLDG 5 160 AUSTIN TX 78759 990 2018-07-01 261609474 PROMESA PUBLIC SCHOOLS INC PROM 5122875050 6002 JAIN LANE AUSTIN TX 78721 DR SALVADOR CAVAZOS SUPERINTENDENT 5122875050 2020-05-15 1 KELLY LOGAN P00677048 5122589670 2020-05-12 74.192.163.180 2020-05-15 09:57:38 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 6E7E0E5E43DCF795FC2D0E7EA97D58B532BF5A60 2018 2021-01-29 14:40:06Z EAST AUSTIN COLLEGE PREP IN AUSTIN DR SALVADOR CAVAZOS 6002 JAIN LANE AUSTIN TX 78721 15116112 0 X WWW.PROMESAPUBLICSCHOOLS.ORG X 2007 TX THE VISION OF PROMESA PUBLIC SCHOOLS IS TO SERVE AS A MODEL SCHOOL THAT SUCCESSFULLY PREPARES ALL STUDENTS, REGARDLESS OF ECONOMIC BACKGROUND, FOR A RIGOROUS HIGH SCHOOL CURRICULUM, GRADUATION, AND ULTIMATELY SUCCESS IN COLLEGE AND CAREER. 3 3 196 40 0 0 7672305 15026003 0 0 3 10 60460 49526 7732768 15075539 0 0 0 0 4236773 7192951 0 0 0 3483833 6900836 7720606 14093787 12162 981752 1711672 3376064 775078 1457718 936594 1918346 X THE VISION OF PROMESA PUBLIC SCHOOLS IS TO SERVE AS A MODEL SCHOOL THAT SUCCESSFULLY PREPARES ALL STUDENTS, REGARDLESS OF ECONOMIC BACKGROUND, FOR A RIGOROUS HIGH SCHOOL CURRICULUM, GRADUATION, AND ULTIMATELY SUCCESS IN COLLEGE AND CAREER. 0 0 10740046 PROMESA PUBLIC SCHOOLS BELIEVES THAT EVERYONE DESERVES ACCESS TO QUALITY EDUCATION. STUDIES SHOW THAT WHERE A CHILD LIVES DIRECTLY IMPACTS THEIR CHANCES OF ATTENDING COLLEGE AND PURSUING OPPORTUNITIES TO EARN A LIVING WAGE, WHICH IS WHY WE OPERATE FREE, COLLEGE PREPARATORY SCHOOLS FOR PRE-K TO 12TH GRADERS THAT ARE ACCESSIBLE TO THE ENTIRE COMMUNITY WITH FREE TRANSPORTATION AND FREE AFTER-SCHOOL CARE. WE OFFER FREE TUTORING AND OUR TEACHERS HAVE EXTENDED HOURS TO ENSURE WE'RE PROVIDING STUDENTS WITH PERSONALIZED OPPORTUNITIES TO EXCEL IN LEARNING. PROMESA PUBLIC SCHOOLS OPERATES IN SEVERAL COMMUNITIES INCLUDING CORPUS CHRISTI, BROWNSVILLE, AND AUSTIN, TX. 7/1/18-6/30/19 PROMESA CHILDREN SERVED 1,046 PROMESA EMPLOYEES 182 PROMESA SCHOOLS 4 SCHOOLS 10740046 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 58 0 1 196 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 3 3 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X DR SALVADOR CAVAZOS 5122875023 6002 JAIN LANE AUSTIN TX 78721 MARCELO TOFOYA BOARD CHAIR 1.00 X 0 0 0 GEORGE CANTU BOARD SECRETARY 1.00 X 0 0 0 CRISTELLA GARCIA BOARD TREASURER 1.00 X 0 0 0 ALEXIA RODRIGUEZ FORMER BOARD CHAIR 1.00 40.00 X 0 424799 55362 RUTH HSU FORMER BOARD VICE CHAIR 1.00 X 0 0 0 DR JUAN SANCHEZ FORMER BOARD SECRETARY 1.00 40.00 X 0 1041754 56349 DR SALVADOR CAVAZOS SUPERINTENDENT 40.00 X 52948 168732 15109 JAMIE HUERTA FORMER SUPERINTENDENT 40.00 X 140527 0 5347 193475 1635285 132167 1 0 1 0 SOUTHWEST KEY PROGRAMS INC 6002 JAIN LANE AUSTIN TX 78721 RENT 730011 PREFERRED MEAL SYSTEMS PO BOX 74008679 CHICAGO IL 60674 FOOD SERVICE 480585 STAR SHUTTLE PO BOX 17967 SAN ANTONIO TX 78217 BUS TRANSPORTATION 291078 DURHAM SCHOOL SERVICE 9807 BROWN LANE AUSTIN TX 78754 BUS TRANSPORTATION 287792 CHACBAK LLC 7097 N EXPRESSWAY 77 STE 7 OLMITO TX 78575 RENT 135203 5 3103000 11734643 188360 11417 15026003 10 10 36810 0 36810 36810 36810 53289 40573 12716 12716 15075539 49526 0 10 252367 19255 233112 6043807 5662958 380849 279710 259239 20471 466465 424294 42171 150602 137733 12869 27366 27366 110770 110770 1107120 888287 218833 120979 105079 15900 295675 226731 68944 1786605 1786605 140948 120125 20823 27477 7721 19756 184706 184706 SUPPLIES AND MATERIALS 1287584 1282293 5291 TRANSPORTATION 876584 876584 FOOD 685945 683691 2254 REPAIR AND MAINTENANCE 181840 181840 67237 46056 21181 14093787 10740046 3353741 0 621383 1056895 1033859 1974815 34550 144876 577304 396014 13785 181290 8095 18188 1711672 3376064 732783 1256407 42295 201311 775078 1457718 X 65263 1733882 871331 184464 936594 1918346 1711672 3376064 981752 0 X X 0 1 X 1 1 1 X 10948666 8625128 8160706 7672305 15026003 50432808 10948666 8625128 8160706 7672305 15026003 50432808 50432808 22825 23350 19800 19553 36820 122348 50555156 0.99760 0.99780 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 359331 335929 23402 160268 53353 106915 57705 6732 50973 181290 OTHER ACCRUED LIABILITIES 201311 201311 X 12110030 96918 40573 137491 11972539 3103000 3103000 15075539 14231278 96918 40573 137491 14093787 0 14093787 PART X, LINE 2: THE ORGANIZATION IS A NOT-FOR-PROFIT ORGANIZATION EXEMPT FROM FEDERAL TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, EXCEPT TO THE EXTENT IT HAS UNRELATED BUSINESS ACTIVITIES. FOR THE FISCAL YEARS ENDING JUNE 30, 2019 AND 2018, THE ORGANIZATION'S UNRELATED BUSINESS ACTIVITIES FOR TAX REPORTING PURPOSES INCLUDED INCOME CREATED BY DISALLOWED PARKING FRINGE BENEFIT COSTS PER SECTION 512(A)(7) OF THE INTERNAL REVENUE CODE RESULTING FROM PASSAGE OF THE TAX CUTS AND JOBS ACT OF 2017. THE ORGANIZATION REGULARLY ASSESSES UNCERTAIN TAX POSITIONS IN EACH OF THE TAX JURISDICTIONS IN WHICH IT HAS OPERATIONS AND ACCOUNTS FOR THE RELATED FINANCIAL STATEMENT IMPLICATIONS. UNCERTAIN TAX BENEFITS ARE REPORTED USING THE TWO-STEP APPROACH UNDER WHICH TAX EFFECTS OF A POSITION ARE RECOGNIZED ONLY IF IT IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED AND THE AMOUNT OF THE TAX BENEFIT RECOGNIZED IS EQUAL TO THE LARGEST TAX BENEFIT THAT IS GREATER THAN FIFTY PERCENT LIKELY TO BE REALIZED UPON ULTIMATE SETTLEMENT OF THE TAX POSITION. DETERMINING THE APPROPRIATE LEVEL OF UNRECOGNIZED TAX BENEFITS REQUIRES THE ORGANIZATION TO EXERCISE JUDGMENT REGARDING THE UNCERTAIN APPLICATION OF TAX LAW. THE AMOUNT OF UNRECOGNIZED TAX BENEFITS IS ADJUSTED WHEN INFORMATION BECOMES AVAILABLE OR WHEN AN EVENT OCCURS INDICATING A CHANGE IS APPROPRIATE. FUTURE CHANGES IN UNRECOGNIZED TAX BENEFITS REQUIREMENTS COULD HAVE A MATERIAL IMPACT ON THE RESULTS OF OPERATIONS. MANAGEMENT HAS ASSESSED ITS TAX POSITIONS TAKEN AND CONCLUDED THAT AS OF JUNE 30, 2019 AND 2018, THERE ARE NO UNCERTAIN TAX POSITIONS TAKEN THAT WOULD REQUIRE RECOGNITIONS OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE ORGANIZATION IS GENERALLY NO LONGER SUBJECT TO TAX EXAMINATIONS RELATING TO US FEDERAL TAX RETURNS FOR YEARS PRIOR TO FISCAL YEAR ENDED DECEMBER 31, 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE 40,573. PART XI, LINE 4B - OTHER ADJUSTMENTS: RELATED PARTY CONTRIBUTION 3,103,000. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE 40,573. X X 0 1 0 0 0 0 0 0 0 ALEXIA RODRIGUEZ FORMER BOARD CHAIR 0 317800 0 64800 0 42199 0 48500 0 6862 0 480161 0 0 DR JUAN SANCHEZ FORMER BOARD SECRETARY 0 783936 0 159000 0 98818 0 50125 0 6224 0 1098103 0 0 DR SALVADOR CAVAZOS SUPERINTENDENT 52948 167807 0 0 0 925 410 8646 1285 4768 54643 182146 0 0 PART I, LINE 4B DR. JUAN SANCHEZ OTHER REPORTABLE COMPENSATION INCLUDES $79,500 RELATED TO A CASH VALUE LIFE INSURANCE RETIREMENT POLICY. THE INCOME INCLUDES THE INSURANCE PREMIUMS ALONG WITH THE TAX GROSS UP AND INTEREST ON THE INCOME DUE TO THE LIFE INSURANCE POLICY PREMIUMS WHICH HAS BEEN APPROVED BY THE SWK BOARD. ALEXIA RODRIGUEZ OTHER REPORTABLE COMPENSATION INCLUDES $32,400 RELATED TO A CASH VALUE LIFE INSURANCE RETIREMENT POLICY. THE INCOME INCLUDES THE INSURANCE PREMIUMS ALONG WITH THE TAX GROSS UP AND INTEREST ON THE INCOME DUE TO THE LIFE INSURANCE POLICY PREMIUMS WHICH HAS BEEN APPROVED BY THE SWK BOARD. JOSE HECTOR CHIRINOS BROTHER-IN-LAW OF JUAN SANCHEZ, BOD 10696 SALARY, RETIREMENT AND FRINGE BY THE ORGANIZATION 0 FORM 990, PART VI, SECTION A, LINE 2 DR. JUAN SANCHEZ AND ALEXIA RODRIGUEZ WERE EXECUTIVES FOR SOUTHWEST KEY PROGRAMS, INC. DURING THE RELEVANT PERIOD. RUTH HSU AND DR. JUAN SANCHEZ HAD REAL ESTATE BUSINESS TOGETHER DURING THE RELEVANT PERIOD. FORM 990, PART VI, SECTION A, LINE 6 SOUTHWEST KEYS PROGRAMS, INC. IS THE SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S BYLAWS STATE THAT THE ORGANIZATION'S SOLE MEMBER HAS THE FINAL AUTHORITY TO APPROVE INITIAL APPOINTMENTS TO THE GOVERNING BODY OF THE ORGANIZATION. ANY VACANCIES ON THE ORGANIZATION'S GOVERNING BODY MAY BE FILLED EXCLUSIVELY BY A VOTE OF THE GOVERNING BODY AND DO NOT REQUIRE THE APPROVAL OF THE SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S BYLAWS STATE THAT THE MEMBER SHALL APPROVE TRUSTEES AND ANY CORPORATE REORGANIZATION, INCLUDING, BUT NOT LIMITED TO, MERGER, CONSOLIDATION, REDEMPTION, OR SALE OF A SUBSTANTIAL PORTION OF THE ORGANIZATION'S ASSETS. FORM 990, PART VI, SECTION B, LINE 11B AT ALL MEETINGS OF THE BOARD, EACH TRUSTEE PRESENT SHALL HAVE ONE VOTE. EXCEPT AS OTHERWISE PROVIDED BY STATUE, THE ACTION OF A MAJORITY OF TRUSTEES PRESENT AT ANY MEETING AT WHICH A QUORUM IS PRESENT SHALL BE THE ACT OF THE BOARD. THE TAX RETURN IS PRESENTED TO THE BOARD AT A REGULARLY SCHEDULED MEETING AND THEY TAKE ACTION TO ACCEPT THE TAX RETURN FOR FILING WITH THE INTERNAL REVENUE SERVICE. PRIOR TO THE TAX RETURN BEING SUBMITTED TO THE BOARD OF TRUSTEES, MANAGEMENT AND THE ACCOUNTING STAFF REVIEW THE INCOME TAX RETURN IN DETAIL. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL OR PERSONAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS. DETERMINATIONS REGARDING CONFLICT OF INTEREST INQUIRIES ARE DOCUMENTED IN THE MINUTES OF THE BOARD OF TRUSTEES OR THROUGH A WRITTEN REPORT PROVIDED BY THE SUPERINTENDENT/CEO TO THE BOARD OF TRUSTEES. THE BOARD MEMBER INVOLVED DOES NOT SPEAK OR VOTE ON THOSE RELATED ISSUES. IF A CONFLICT OF INTEREST EXISTS, THEN A DISINTERESTED PERSON IS APPOINTED TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE, THEN IT IS DETERMINED BY A MAJORITY VOTE OF THE DISINTERESTED PERSONS WHETHER THE CONFLICT OF INTEREST IS FAIR AND REASONABLE. FORM 990, PART VI, SECTION B, LINE 15A EXECUTIVE COMPENSATION IS SET BY AN INDEPENDENT BODY WHO IS PRESENTED WITH PUBLICLY AVAILABLE COMPENSATION DATA FOR OTHER COMPARABLE SCHOOLS AND/OR NONPROFITS FOR THE PURPOSES OF EVALUATING REASONABLE COMPENSATION. THE DECISION-MAKING AND RATIONALE FOR COMPENSATION DETERMINATIONS ARE CONTEMPORANEOUSLY DOCUMENTED BY THE INDEPENDENT BODY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. PART XII, LINE 2C THE FINANCIAL STATEMENTS WERE AUDITED ON BOTH A STAND ALONE AND CONSOLIDATED BASIS. THE BOARD OF DIRECTORS ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF INDEPENDENT ACCOUNTANTS. PART VI, LINE 7A THE ORGANIZATION'S BYLAWS STATE THAT A NOMINATED TRUSTEE MAY TAKE OFFICE ONLY AFTER HE OR SHE HAD BEEN APPROVED BY THE MEMBER. SOUTHWEST KEY PROGRAMS INC 6002 JAIN LANE AUSTIN TX 78721 742481167 SOCIAL SERVICES TO YOUTH AND FAMILIES TX 501(C)(3) LINE 7 N/A 0 SWKP ST JOHNS LLC 13010 RESEARCH BLVD 104 AUSTIN TX 78750 824580748 INVESTMENT PARTNERSHIP TX SOUTHWEST KEY PROGRAMS INC 0 0 BUDA HOUSE INVESTORS LLC 13010 RESEARCH BLVD 104 AUSTIN TX 78750 830975536 INVESTMENT PARTNERSHIP TX SOUTHWEST KEY PROGRAMS INC 0 0 SOUTHWEST KEY ENTERPRISES INC 6002 JAIN LANE AUSTIN TX 78721 208958545 HOLDING COMPANY TX SOUTHWEST KEY PROGRAMS INC C 0 0 0 1 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 SOUTHWEST KEY PROGRAMS INC K 1141854 FMV SOUTHWEST KEY PROGRAMS INC M 125009 FMV SOUTHWEST KEY PROGRAMS INC C 3103000 CASH