2017-03-09T14:35:11-06:00 2016-06-30 GRANT THORNTON LLP 757 THIRD AVE 4TH FLOOR NEW YORK NY 100172013 990 2015-07-01 760756768 HARLEM CHILDREN'S ZONE PROMISE ACADEMY charter school % ALPHA CONTEH HARL 2123603255 245 W 129th Street NEW YORK NY 10027 JAMES D HUTTER CFO 2123603255 2017-03-09 true Scott Thompsett P00741490 2125990100 2015 2021-01-29 14:40:06Z ANNE WILLIAMS-ISOM 245 W 129th Street NEW YORK NY 10027 21777515 false X WWW.HCZPROMISE.ORG X 2004 NY To provide high quality, standards-based academic programs for students, grades k-12, from underserved communities and underperforming school districts. 10 8 315 0 0 0 18567217 21663531 0 0 65 48 124639 113936 18691921 21777515 0 0 0 0 16427480 17492313 0 0 0 5512988 6208601 21940468 23700914 -3248547 -1923399 81862516 78707093 8136158 6904134 73726358 71802959 X The mission of the Harlem Children's Zone Promise Academy Charter School is to ensure that children from under-served communities are academically, socially and emotionally ready to succeed in college and 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. false false 22595965 0 0 In 2016, Promise Academy students had higher aggregate scores on the English Language Arts test than students in the local District 5, and performed at a level about equal of the city overall and the state as a whole. From 2015 to 2016, Promise I increased its percentage of students on or above grade level by 15 percentage points, doubling the citys overall growth. On the statewide math test, Promise Academy I students outperformed students overall in District 5, New York City, New York State, as well as New York State white students . From 2015 to 2016, Promise I increased the percentage of students on or above grade level in math by 8.5 percentage points, while New York City students improved 1.2 percentage points. One hundred percent of the school's high-school seniors have passed the English Language Arts, math and science Regents. The Promise Academy High School works with Bard Early College to offer pre-college and college-level classes to our students, so that many students will graduate with college-level skills and will have earned college credits. The school has an extended school day and year 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 fashion design. 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 application and selection processes. The school also has a social-work team to address any emotional/social issues that may get flagged by teachers or school staff. We also make sure that children have access to up-to-date technology: each classroom is equipped with a SmartBoard and students have access to laptop computers. The overall goal is to make sure each child gets what he or she needs in order to succeed academically and become well-rounded and public spirited, ready for college and adulthood. 22595965 true true false false false false false false false false true false false true true true true false true false false false false false false false false false false true false false false false false false false false false false false false false true false false false true 12 0 true 315 true false false false false false false false false false false X 10 8 false false false false false false false true true false false true true true true true true true true false X X ALPHA CONTEH 2123603255 35 E 125TH STREET NEW YORK NY 10035 X Kenneth Langone Chairman Emeritus 2.0 1.0 X X 0 0 0 Geoffrey Canada Chairman 2.0 40.0 X X 0 1180338 29529 Mitch Kurz Treasurer/secretary 2.0 1.0 X X 0 0 0 Aisha Tomlinson BOARD MEMBER 2.0 0.0 X 0 0 0 Stanley Druckenmiller board member 2.0 1.0 X 0 0 0 Arlene Gibson board member 2.0 2.0 X 0 0 0 Denise Nash-Fuller board member 2.0 2.0 X 0 0 0 Alfonso Wyatt board member 2.0 0.0 X 0 0 0 Willie Mae Lewis Board member 2.0 2.0 X 0 0 0 Anne williams-isom Chief Exec Officer & President 2.0 40.0 X X 0 365191 127166 James D Hutter Chief Financial Officer 1.0 40.0 X 0 322346 67237 Achil Petit Superintendent 40.0 0.0 X 249568 0 66910 Kashif Hameed Principal - Middle School 40.0 0.0 X 140811 0 55044 Joseph Cordero Principal - Upper Elementary 40.0 0.0 X 145880 0 63463 Jawana Johnson Principal - High School 40.0 0.0 X 141893 0 48669 Laura Lipow Coach, Math (K-2) 40.0 0.0 X 134559 0 55043 Tonya White Principal - Lower Elementary 40.0 0.0 X 231268 0 56185 Marquitta Speller Executive Director 40.0 0.0 X 244770 0 62268 1288749 1867875 631514 21 true true false 0 3392773 18270758 21663531 0 48 48 0 0 0 0 0 0 0 0 0 NYC E-RATE DISCOUNTS 900099 100664 100664 MISCELLANEOUS INCOME 900099 13272 13272 113936 21777515 113984 0 0 0 0 0 13513843 12829233 684610 247184 234825 12359 2517787 2391898 125889 1213499 1152824 60675 0 78515 74589 3926 74518 70792 3726 0 0 0 369985 347560 22425 0 144052 136849 7203 227980 216581 11399 0 2097827 1980235 117592 15612 14831 781 0 0 0 0 67087 63732 3355 138617 131686 6931 FOOD 947780 947780 SPECIAL SERVICES/INCENTIVES 582534 582534 CLASSROOM SUPPLIES 262554 262554 STUDENT TRAVEL 191114 191114 1010426 966348 44078 23700914 22595965 1104949 0 1559511 1220872 0 0 627566 566367 0 0 0 0 0 0 0 0 0 0 89726 219849 367874 318887 116074 48987 0 0 0 0 0 0 0 0 79469639 76651018 81862516 78707093 1508404 2222699 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6627754 4681435 8136158 6904134 X 2279175 2187755 71447183 69615204 0 0 73726358 71802959 81862516 78707093 -1923399 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 348297 299310 48987 19577 19577 0 48987 DUE FROM RELATED PARTIES 7035814 CONTRIBUTION REC. (SPACE) 69615204 76651018 0 457(F) PLAN LIABILITY 4681435 4681435 X 22288397 510882 510882 21777515 21777515 24211796 510882 510882 23700914 23700914 Schedule D, Fin 48 statement 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 ASSESMENT 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. MANAGEMENT DETERMINED THAT THERE ARE NO UNCERTAIN TAX POSITIONS WITHIN ITS FINANCIAL STATEMENTS. THE SCHOOL IS EXEMPT FROM FEDERAL INCOME TAXATION BY VIRTUE OF BEING AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. NEVERTHELESS, THE SCHOOL MAY BE SUBJECT TO TAX ON ANY INCOME DEEMED UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. THE TAX YEARS ENDING JUNE 30, 2013, 2014, 2015, AND 2016 ARE STILL OPEN TO AUDIT FOR BOTH FEDERAL AND STATE PURPOSES. true true true true true true true false false false false false false false false true false true 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 state and federal sources that are available to public schools. These funds include state pupil enrollment funds, federal food subsidies and Titles I and II funding. false true false false false false false true false Geoffrey Canada Chairman 0 122670 0 1057668 0 0 0 7292 0 22237 0 1209867 0 982668 Marquitta Speller Executive Director 173428 71342 58686 3582 307038 36342 Achil Petit Superintendent 175373 74195 0 59536 7374 316478 39195 James D Hutter Chief Financial Officer 292346 30000 45000 22237 389583 Anne williams-isom Chief Exec Officer & President 0 290191 0 75000 0 0 0 119792 0 7374 0 492357 0 Kashif Hameed Principal - Middle School 118311 22500 37468 17576 195855 Joseph Cordero Principal - Upper Elementary 120880 25000 41226 22237 209343 Jawana Johnson Principal - High School 116893 25000 41295 7374 190562 Laura Lipow Coach, Math (K-2) 109559 25000 40746 14297 189602 Tonya White Principal - Lower Elementary 133583 97685 43634 12551 287453 72685 Schedule J, Part 1, Line 4(b) HARLEM CHILDRENS ZONE HAS A SECTION 457(F) PLAN FOR CERTAIN ELIGIBLE EMPLOYEES. THIS GROWTH FUND PLAN ("The PLan") IS A TAX-DEFERRED EMPLOYEE SAVINGS PLAN that aims to serve as a retention tool FOR DIRECTORS, OFFICERS, PRINCIPALS AND SENIOR STAFF. HARLEM CHILDRENS ZONE MAKES AN ANNUAL DEPOSIT INTO THE PLAN THAT IS VALUED AT 150% OF THE INDIVIDUAL EMPLOYEES BONUS FOR THE CURRENT YEAR. THE EMPLOYEES ACCOUNT ACCUMULATES ASSOCIATED EARNINGS OR LOSSES ON THE INVESTMENT OF THE CONTRIBUTED AMOUNT IN THE NO MARGIN SENIOR GROWTH FUND, WHICH IS MANAGED BY DUQUESNE FAMILY OFFICE, at no cost to Harlem Children's Zone or the employee. THE AMOUNTS CONTRIBUTED BY HARLEM CHILDRENS 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. 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 2015, employees received a payout of deferred compensation from the Plan 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, met the age and service provisions of the Section 457(f) plan (AGE VESTING) in calendar year 2015 THAT RESULTED IN THE ACCELERATED VESTING OF HCZS CONTRIBUTION. The portion of Mr. Canada's taxable compensation (as reported on his Form W-2) that represents a one-time accelerated age vesting in his entire 457(f) plan account is $917,832. THESE AGE VESTING DISTRIBUTIONS ARE INCLUDED IN the form 990, SCHEDULE J, COLUMN (B) (II) and again in Schedule J, Part II, Column (f). These age vesting distributions represent a one-time compensation item. The actual amount of compensation (inclusive of taxable wages, deferred compensation and non-taxable benefits) received by Mr. Canada in calendar year 2015 (CALCULATED BY SUBTRACTING Schedule J, Part II, COLUMN F FROM Schedule J, Part II COLUMN E) is $245,199. Schedule J, Part 1, Line 7 As noted in the narrative to Form 990, Part VI, Line 15, all bonuses or merit pay increases issued to Promise Academy employees are determined by the CEO, Anne Williams-Isom. All bonuses are performance-based and the recipients do not have any input into the amount of the bonus they receive. Compensation decisions are documented in the organization's board minutes. FORM 990, PART VI Policies Line 11 - 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 with an opportunity to comment on the information contained in the 990 prior to its filing with the Internal Revenue Service. Line 12 - Enforcement of conflict of interest policy: The Promise Academy operates under the conflict-of-interest policy of its institutional partner, the 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 the Harlem Children's Zone. 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. An employee's violation of this policy, especially a failure to represent accurately his or her connection or action on behalf of the Harlem Children's Zone and a third party will constitute grounds for disciplinary action, up to and including termination of employment. Line 13 & 14 - whistleblower and document retention policy: The Promise Academy operates under the whistleblower and document retention policy of its institutional partner, The Harlem Children Zone. Line 15 - Process for determining compensation: The organization's top management official is Anne Williams-Isom. The procedures for determining Ms. Williams-Isom's compensation package are documented in the Harlem Children Zone Form 990 as that organization pays her compensation. Ms. Williams-Isom makes all compensation decisions for the employees at the Promise Academy, including the principals. To the extent that any merit pay or bonuses are warranted, the principals will make recommendations for teachers and administrators. Ms. Williams-Isom makes the decisions regarding the principals' bonuses. 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 Line 19- Availability of documents to the public: The Academy 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. Form 990, Part VII Two individuals reported on the Promise Academys Form 990, Tonya White and Marquitta Speller, are listed as former employees of the Promise Academy. Both individuals ceased working for the Academy on June 30, 2015; both assumed roles with related party Harlem Childrens Zone effective July 1, 2015. Since neither were employed by the Academy for the entire period covered by the 990, they are reported as former employees, even though they received their calendar year 2015 W-2 from the Academy. The Promise Academy is a fiscal year taxpayer; however, compensation on the 990 is reported on a calendar year basis. The Promise Academy is disclosing that 50% of the wages reported on Part VII and Schedule J of the 990 represent payment for services rendered to the Promise Academy and 50% for services rendered to the Harlem Childrens Zone. THE HARLEM CHILDREN'S ZONE 35 EAST 125TH STREET NEW YORK NY 10035 237112974 Social Svcs NY 501(c)(3) 7 NA false HARLEM CHILDRENS ZONE PROMISE ACADEMY II 35 EAST 125TH STREET NEW YORK NY 10035 342049530 education NY 501(c)(3) 2 NA false false false true false false false false false false false true false true true true true true true true Form 990, Schedule R, Part V, Line 2 Pursuant to the terms of a commitment letter between Harlem Children's Zone (HCZ) and the Promise Academy, HCZ, as the School's Institutional Partner, is 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, 2019. These services include financial management, social, technology, fundraising, public relations, and teaching assistance services. The value of the contributed services rendered to the Academy for the year ending June 30, 2016 is $510,882. In addition to contributed services, the Academy received the use of space at the Harlem Children Zone's recently constructed building located at 245 W. 29th Street, New York, New York. Upon execution of the sublease agreement in fiscal 2015, the Academy recorded a $73,279,162 contribution receivable, which represents the imputed fair value of the space under the lease. The receivable is being amortized to rent expense, and the related temporarily restricted net assets are released from restrictions, over the term of the lease. The current contribution receivable, as reported on the balance sheet, is $69,615,204. 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 vest five years after the date of the initial contribution and will then be paid to eligible employees when vested. HCZ provides the school with an annual subsidy to cover this cost by contributing to a HCZ investment account. During fiscal 2015, HCZ provided a subsidy of $990,263 for the fiscal 2016 contribution to the 457(f) plan.