2016-09-20T09:44:50-05:00 2015-12-31 271728945 PKF O'CONNOR DAVIES LLP 3001 SUMMER STREET 5TH FL EAST STAMFORD CT 06905 990 2015-01-01 263618722 PENCILS OF PROMISE INCORPORATED PENC 2127773170 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 TOM CASAZZONE COO 2127773170 2016-09-20 1 GARRETT M HIGGINS P00543209 2033232400 2016-09-17 2015 2017-02-10 21:41:12Z TOM CASAZZONE 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 8260914 0 X WWW.PENCILSOFPROMISE.ORG X 2008 CT AT POP, WE BELIEVE EVERY CHILD DESERVES ACCESS TO QUALITY EDUCATION. WE CREATE SCHOOLS, PROGRAMS AND GLOBAL COMMUNITIES AROUND THE COMMON GOAL OF EDUCATION FOR ALL. WE ACCOMPLISH THESE ACTIVITIES BY DEDICATING SIGNIFICANT AMOUNTS OF TIME, LABOR AND EFFORT RAISING MONEY IN THE U.S. THROUGH YOUTH AND PROFESSIONAL ENGAGEMENT PROGRAMS AND SPECIAL EVENTS. THE FUNDS RAISED ALLOW US TO INCREASE OUR DOMESTIC AND INTERNATIONAL REACH AND IMPACT. 11 10 46 15 0 0 7797819 7954617 0 0 568 580 -107083 -59852 7691304 7895345 278348 828599 0 0 1841129 2630745 0 0 1025140 3924397 4825795 6043874 8285139 1647430 -389794 5372277 4921365 122456 124838 5249821 4796527 X AT POP, WE BELIEVE EVERY CHILD DESERVES ACCESS TO QUALITY EDUCATION. WE CREATE SCHOOLS, PROGRAMS AND GLOBAL COMMUNITIES AROUND THE COMMON GOAL OF EDUCATION FOR ALL. WE ACCOMPLISH THESE ACTIVITIES BY DEDICATING SIGNIFICANT AMOUNTS OF TIME, LABOR AND EFFORT RAISING MONEY IN THE U.S. THROUGH YOUTH AND PROFESSIONAL ENGAGEMENT PROGRAMS AND SPECIAL EVENTS. THE FUNDS RAISED ALLOW US TO INCREASE OUR DOMESTIC AND INTERNATIONAL REACH AND IMPACT.AT THE CONCLUSION OF 2015, WE HAVE BROKEN GROUND ON 339 SCHOOLS ACROSS THE FOUR COUNTRIES OF LAOS, GHANA, GUATEMALA AND NICARAGUA. OUR SCHOOLS ARE OPEN TO STUDENTS IN EACH COUNTRY AND THE STAGES OF PLANNING AND CONSTRUCTION ARE UNDERWAY IN SEVERAL NEW COMMUNITIES TO AID IN EXPANDING OUR REACH IN 2016. 0 0 3163903 THE FIRST OF OUR CORE PROGRAMS IS SCHOOLS BUILDS. WE PARTNER WITH LOCAL COMMUNITIES AND GOVERNMENTS TO IMPROVE THE STATE OF EDUCATION INFRASTRUCTURE IN COMMUNITIES. OUR SHORT TERM GOALS ARE TO ADDRESS THE NEED FOR IMPROVED INFRASTRUCTURE WITH OUR LONG TERM GOALS BEING TO IMPROVE STUDENT ATTENDANCE, PROGRESSION, AND TEST SCORES. THE BENEFICIARIES OF OUR SCHOOL BUILDING PROGRAM ARE PRIMARY SCHOOL STUDENTS CURRENTLY ATTENDING SCHOOL IN POOR QUALITY STRUCTURES AND PRIMARY SCHOOL TEACHERS CURRENTLY TEACHING IN POOR QUALITY STRUCTURES. THROUGH THE END OF 2015, WE HAVE BROKEN GROUND ON A TOTAL OF 339 SCHOOLS ACROSS OUR GEOGRAPHIES. 1607283 616406 OUR SECOND CORE PROGRAM IS TEACHER SUPPORT. WE SUPPORT TEACHER DEVELOPMENT THROUGH IN-SERVICE AND WORKSHOP TRAINING SESSIONS. OUR STAFF VISIT GOVERNMENT TEACHERS IN OUR COMMUNITIES TWICE PER MONTH TO AID IN LESSON PLANNING, METHODOLOGY TRAINING AND RAPPORT BUILDING WITH STUDENTS. TEACHERS ATTEND WORKSHOPS FOR GROUP TRAINING AND NETWORK BUILDING. WE USE A METHODOLOGY OF TEACHING THAT FOCUSES ON THE ENGAGEMENT OF THE STUDENT BECAUSE MORE ENGAGED STUDENTS PERFORM AT A HIGHER LEVEL. WE DO THIS THROUGH AN EXPRESSIVE PEDAGOGY, WHICH INVOLVES USAGE OF FACIAL EXPRESSIONS, MOTOR MEMORY (SONG, DANCE, SIGN, ETC.) AND CREATIVE DIDACTIC MATERIALS. THE SHORT TERM GOALS OF OUR TEACHER SUPPORT PROGRAMS ARE: TO IMPROVE LESSON PLANNING BY ASSISTING TEACHERS IN THE CREATION AND USE LESSON PLANS; TO BUILD RAPPORT WITH STUDENTS BY ENCOURAGING TEACHERS TO ADOPT OUR INTERACTIVE METHODOLOGY TO BETTER ENGAGE STUDENTS; TO SUPPORT A PEER NETWORK OF TEACHERS THROUGH TEACHER TRAINING WORKSHOPS, AND; TO PROVIDE CLASSROOMS WITH TEACHING AND LEARNING MATERIALS. OUR LONG TERM GOAL IS TO INCREASE PRIMARY STUDENT SCORES IN LITERACY, NUMERACY AND ENGLISH ACROSS ALL OUR GEOGRAPHIES. THE MAIN BENEFICIARIES OF OUR TEACHER SUPPORT PROGRAM ARE THE TEACHERS AND STUDENTS IN OUR SCHOOLS AND COMMUNITIES. THROUGH 2015, WE HAVE SUPPORTED OVER 500 TEACHERS IN ACROSS LAOS, GUATEMALA, AND GHANA. 1101304 29040 OUR THIRD CORE PROGRAM IS OUR WASH PROGRAM. WASH IS AN INTERNATIONALLY RECOGNIZED AND UTILIZED PROGRAM THAT IS DESIGNED TO PROVIDE ACCESS TO AND KNOWLEDGE ABOUT WATER, SANITATION, AND HYGIENE. UNICEF ADOPTED WASH IN 2005 AS THEIR PRIMARY INTERVENTION TO TACKLE HYGIENE NEEDS IN THE DEVELOPING WORLD; POP BEGAN WASH PRACTICES IN 2010 IN LAOS. IN CARRYING OUT THIS PROGRAM, WE BUILD STUDENT AND TEACHER SANITATION FACILITIES (HAND WASHING STATIONS AND BATHROOMS) IN CONJUNCTION WITH CLASSROOM BUILDS. IN ADDITION, OUR STAFF VISIT CLASSES TWICE PER MONTH DURING THE SCHOOL YEAR TO TEACH LESSONS RELATED TO WATER, SANITATION AND HYGIENE. THE PRIMARY GOALS OF THIS PROGRAM ARE TO BUILD AND PROVIDE ACCESS TO QUALITY TOILETS, POTABLE WATER AND HAND WASHING STATIONS IN CONJUNCTION WITH POP SCHOOLS LACKING SUCH INFRASTRUCTURE. ADDITIONALLY, WE AIM TO INCREASE PROPER HYGIENIC AND SANITARY BEHAVIOR IN PRIMARY STUDENTS. 767424 183153 OUR FOURTH CORE PROGRAM IS OUR SCHOLARSHIPS PROGRAM. WE SUPPORT THE PROGRESSION OF STUDENTS FROM PRIMARY TO SECONDARY SCHOOL BY PROVIDING SCHOLARSHIP PACKAGES. COMMUNITIES ARE SELECTED AS ELIGIBLE FOR SCHOLARSHIPS BASED ON THE RESULTS OF THE SCOUTING RUBRIC; AT WHICH POINT ALL STUDENTS IN THE FINAL GRADE OF PRIMARY SCHOOL ARE ELIGIBLE TO APPLY. STUDENTS IN THEIR FINAL YEAR OF PRIMARY SCHOOL WITH 75% ATTENDANCE AT THE MID-YEAR MARK RECEIVE A PRIZE (READING BOOKS, PENCILS, ETC.) AND STUDENTS WITH 75% ATTENDANCE AT THE END-YEAR MARK RECEIVE THE FOLLOWING SCHOLARSHIP PACKAGE: TUITION FOR FIRST YEAR OF SECONDARY SCHOOL, A UNIFORM, A BACKPACK WITH SCHOOL SUPPLIES, TEXTBOOKS AND PAID DORMITORY FEE WHEN APPLICABLE. THE KEY BENEFICIARIES OF OUR SCHOLARSHIP PROGRAM ARE TEACHERS AND STUDENTS IN OUR COMMUNITIES. SINCE INCEPTION OF THIS PROGRAM, WE HAVE PROVIDED OVER 2,500 SCHOLARSHIPS TO STUDENTS IN NEED IN OUR GEOGRAPHIES.WITH ALL OF OUR PROGRAMS, WE EXTENSIVELY MONITOR AND EVALUATE OUR PROGRAM IMPACT. TO BEST JUDGE HOW EFFECTIVE OUR IMPACT IS, WE CLOSELY MONITOR AND EVALUATE (M&E) OUR PROGRAMS ON THE GROUND. WE HAVE LOCAL M&E TEAMS WHO CONDUCT INTERVIEWS AND SURVEYS WITH VILLAGE LEADERS, TEACHERS, STUDENTS, AND PARENTS. THIS HELP US TO UNDERSTAND THE NEEDS OF VILLAGES IN WHICH WE OPERATE, OUR IMPACT ON THE COMMUNITY, AND AREAS IN WHICH WE CAN IMPROVE POP OPERATIONS AND PROGRAMMING.OUR STUDENT DATABASE HELPS US UNDERSTAND WHO WE ARE SERVING EVERY YEAR IN OUR POP SCHOOLS. WE DOCUMENT EACH POP STUDENT'S NAME, AGE, GENDER, ETHNICITY, ATTENDANCE, PROGRESSION TO NEXT GRADE LEVEL, AND GRADE IN CLASS. EACH YEAR, WE TRACK VILLAGE-WIDE STUDENT ENROLLMENT, ATTENDANCE, RETENTION FROM ONE GRADE TO THE NEXT, PROGRESSION FROM PRIMARY TO SECONDARY SCHOOL, AND GRADES AND/OR TEST SCORES. WE EXPECT TO IMPROVE THESE METRICS THROUGH THE VARIETY OF EDUCATIONAL PROGRAMS WE OFFER STUDENTS AND COMMUNITIES. IN ADDITION, WE FOLLOW INDIVIDUAL POP STUDENTS THROUGH THE YEARS TO ASSESS THEIR EDUCATIONAL SUCCESSES AND FAILURES, ALONG WITH THEIR UNDERSTANDING, ATTITUDE, AND BEHAVIOR REGARDING EDUCATION AND ELEMENTS OF WASH. THESE YEARLY INTERVIEWS WILL HELP US UNDERSTAND THE IMPACT THAT WE HAVE ON INDIVIDUALS THROUGH OUR PROGRAMMING.DOMESTICALLY, WE EXPANDED OUR GLOBAL COMMUNITIES THROUGH SEVERAL UPDATES TO OUR WEBSITE AND THROUGH OUR EXPANDING OUTREACH PROGRAM ACROSS OUR DIGITAL PLATFORMS TO BOTH YOUTH AND PROFESSIONALS. WE HAVE AN ONLINE COMMUNITY OF OVER 550,000 MEMBERS WHO STAY ENGAGED WITH OUR WORK THROUGH UPDATES, POSTS AND BLOG ENTRIES. 767424 183153 6639914 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 6 0 46 1 0 1 GH LA GT 0 0 0 1 1 0 0 0 0 X 11 10 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CT DC GA HI IL KS KY LA ME MD MA MI MN MS MO NH NJ NM NY NC ND OH OR PA RI SC TN UT VA WA WV WI CO FL OK X X X TOM CASAZZONE 2127773170 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 ADAM BRAUN FOUNDER/DIRECTOR 60.00 X X 246960 0 12918 BRAD HAUGEN CHAIRMAN THROUGH JULY 2015 1.00 X X 0 0 0 KAREN HARRIS CHAIRMAN 1.00 X X 0 0 0 MICHAEL WEISS TREASURER / INTERIM CEO THRU 05/2015 5.00 X X 0 0 0 ROBERT HAMWEE SECRETARY 1.00 X X 0 0 0 RICHARD LENT DIRECTOR 1.00 X 0 0 0 HOPE TAITZ DIRECTOR 1.00 X 0 0 0 DAN CAHILL DIRECTOR 1.00 X 0 0 0 MEIGHAN STONE DIRECTOR 1.00 X 0 0 0 GARY VAYNERCHUK DIRECTOR 1.00 X 0 0 0 CRAIG EFFRON DIRECTOR 1.00 X 0 0 0 LINDA RIEFLER DIRECTOR 1.00 X 0 0 0 TOM CASAZZONE COO 60.00 X 120904 0 17326 MICHAEL DOUGHERTY CEO AS OF 06/2015 60.00 X 159333 0 10387 527197 0 40631 3 0 1 0 CECILIA MERCEDES GUERRA 0 CALLED -54 ZONA 1 PANAJACHEL SOLOLA GT CONSTRUCTION 336641 MANUEL CULAN RAMIREZ CANTON PANAJ 8300 APT0 PB ZONA 1 SANTIAGO ATITLAN SOLOLA GT CONSTRUCTION 234335 TOMAS ALBERTO CETO GUZMAN BARRIO BATZVACA NEBAJ QUICHE GT CONSTRUCTION 198328 NUNYA CONSTRUCTION PO BOX 137 HOHOE GH CONSTRUCTION 195860 RAMS HORN PO BOX HP 821 HO GH CONSTRUCTION 163045 9 1540907 6413710 29400 7954617 580 580 294736 1540907 346619 -51883 -51883 10981 18950 -7969 -7969 7895345 0 0 -59272 42073 42073 786526 786526 567828 351020 67258 149550 1790473 1106833 212081 471559 126824 78400 15022 33402 145620 90019 17249 38352 22943 22943 29061 29061 94851 5982 82887 5982 103250 41867 61383 328985 126647 80300 122038 4914 2457 2457 248579 197854 20290 30435 475685 447258 3399 25028 20786 17375 1493 1918 79537 70561 4488 4488 24512 24512 SCHOOL CONSTRUCTION AND 3070557 3070557 SCHOOL SUSTAINABILITY C 98387 98387 OUTREACH 73815 73815 PROGRAM MONITORING & EV 51778 51778 98155 54320 39102 4733 8285139 6639914 620085 1025140 2219269 2281823 651909 51097 2225195 2197457 5000 16497 37970 875941 557923 229407 318018 30000 30000 5372277 4921365 74576 74838 47880 50000 122456 124838 X 3376992 3312590 1872829 1483937 5249821 4796527 5372277 4921365 X -389794 -63500 X X 0 1 X 1 0 X 2224168 5039120 4176449 7784319 7954617 27178673 2224168 5039120 4176449 7784319 7954617 27178673 1635192 25543481 631 9183 1037 568 580 11999 40 40 27190712 34054 0.93940 0.91880 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 501778 193774 308004 374163 364149 10014 318018 X 7914295 18950 18950 7895345 0 7895345 8304089 18950 18950 8285139 0 8285139 PART X, LINE 2: THE ORGANIZATION RECOGNIZES THE EFFECT OF TAX POSITIONS WHEN THEY ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE ORGANIZATION HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B 18,950. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B 18,950. 1 SUB-SAHARAN AFRICA 1 25 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 1951955 EAST ASIA AND THE PACIFIC 1 37 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 753821 CENTRAL AMERICA AND THE CARIBBEAN 3 37 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 2062327 NORTH AMERICA GRANT TO RECIPENT LOCATED IN REGION 5846 SUB-SAHARAN AFRICA GRANT TO RECIPENT LOCATED IN REGION 621833 EAST ASIA AND THE PACIFIC GRANT TO RECIPENT LOCATED IN REGION 35956 CENTRAL AMERICA AND THE CARIBBEAN GRANT TO RECIPENT LOCATED IN REGION 122891 5 99 0 0 5 99 5554629 0 5554629 NORTH AMERICA SUPPLIES AND SUPPORT TO EXISTING SCHOOLS IN NICARGUA 5846 WIRE TRANSFER 1 SCHOLARSHIP SUB-SAHARAN AFRICA 185 24305 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING SCHOLARSHIP CENTRAL AMERICA AND THE CARIBBEAN 560 36228 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING 86663 BACKPACKS WITH SCHOOL SUPPLIES (PENS, PENCILS, NOTEPADS) DISTRIBUTED TO EACH RECIPIENT COST SCHOLARSHIP EAST ASIA AND THE PACIFIC 1042 13353 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING 22603 BACKPACKS WITH SCHOOL SUPPLIES (PENS, PENCILS, NOTEPADS) DISTRIBUTED TO EACH RECIPIENT COST E-READERS FOR TEACHERS AND STUDENTS SUB-SAHARAN AFRICA 2900 597528 E-READERS AND BOOKS FOR EACH DEVICE COST 0 0 0 0 0 0 PART I, LINE 2: ALL GRANTS AND ASSISTANCE ISSUED TO PARTNERING ORGANIZATIONS UNDERGO THE SAME SCRUTINY AS IF OUR ORGANIZATION CARRIED OUT THE SERVICE DIRECTLY. WE ENSURE THAT THE PARTNER ORGANIZATION'S MISSION ALIGNS WITH OUR ORGANIZATION'S MISSION AND THAT THE SERVICES PROVIDED WILL BE PROVIDED EFFICIENTLY AND WITH THE MOST IMPACT. ONCE THE FUNDS ARE ISSUED TO THE ORGANIZATION, THE GRANT UNDERGOES QUARTERLY REPORTING WHERE THE GRANTEE ISSUES BOTH QUANTITATIVE AND QUALITATIVE REPORTS TO OUR ORGANIZATION IN ORDER TO ACCURATELY MONITOR AND MEASURE THE IMPACT THAT OUR FUNDS ARE HAVING IN THE REGIONS WE WORK IN. PART I, LINE 3: THE ORGANIZATION USES THE ACCRUAL METHOD TO ACCOUNT FOR EXPENDITURES. GALA 1784857 1540907 243950 22250 261959 53015 WHITE PARTY 50786 50786 9200 195 1835643 1540907 294736 31450 261959 53210 346619 -51883 1 CHILD AID 917 SW OAK STREET PORTLAND OR 97205 330317937 501(C)(3) 40787 TEACHER SUPPORT DEVELOPMENT & IMPLEMENTATION 1 0 PART I, LINE 2: ALL GRANTS AND ASSISTANCE ISSUED TO PARTNERING ORGANIZATIONS UNDERGO THE SAME SCRUTINY AS IF OUR ORGANIZATION CARRIED OUT THE SERVICE DIRECTLY. WE ENSURE THAT THE PARTNER ORGANIZATION'S MISSION ALIGNS WITH OUR ORGANIZATION'S MISSION AND THAT THE SERVICES PROVIDED WILL BE PROVIDED EFFICIENTLY AND WITH THE MOST IMPACT. ONCE THE FUNDS ARE ISSUED TO THE ORGANIZATION, THE GRANT UNDERGOES QUARTERLY REPORTING WHERE THE GRANTEE ISSUES BOTH QUANTITATIVE AND QUALITATIVE REPORTS TO OUR ORGANIZATION IN ORDER TO ACCURATELY MONITOR AND MEASURE THE IMPACT THAT OUR FUNDS ARE HAVING IN THE REGIONS WE WORK IN. X X X X X 0 0 0 0 0 0 0 1 0 ADAM BRAUN FOUNDER/DIRECTOR 146960 0 100000 0 0 0 0 0 12918 0 259878 0 0 0 MICHAEL DOUGHERTY CEO AS OF 06/2015 159333 0 0 0 0 0 0 0 10387 0 169720 0 0 0 PART I, LINE 7 ALL COMPENSATION FOR THE FOUNDER WAS DETERMINED BY OUR BOARD OF DIRECTORS IN CONJUNCTION WITH ADVICE FROM OUTSIDE COUNSEL AS WELL AS THE USE OF COMPENSATION CONSULTANTS (JER CONSULTING) WHO WE ENGAGED IN 2015 TO DO A FULL STUDY - WITH ONE FOCUS BEING ON EXECUTIVE COMPENSATION. THERE WAS NO FIXED DOLLAR AMOUNT GUARANTEED TO HIM AS AN END OF YEAR BONUS, BUT IT WAS PUT IN WRITING THAT HE WOULD BE ELIGIBLE FOR A BONUS. THE BONUS WAS DETERMINED BY THE BOARD. X SOFTWARE 1 29400 FAIR MARKET VALUE 0 0 1 0 PART I, COLUMN (B): THE NUMBER OF CONTRIBUTORS IS REPORTED IN COLUMN (B). FORM 990, PART VI, SECTION A, LINE 2 TWO BOARD MEMBERS LISTED IN PART VII HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS MADE AVAILABLE TO ALL MEMBERS OF THE BOARD OF DIRECTORS. POP'S CHIEF OPERATING OFFICER, IN COLLABORATION WITH THE FINANCE & GOVERNANCE COMMITTEE, IS TASKED WITH OVERSEEING THE AUDIT PROCESS AND THE DRAFTING OF FORM 990 IN CONJUNCTION WITH AN INDEPENDENT ACCOUNTING FIRM. ALL MEMBERS OF THE COMMITTEE, THE CHIEF EXECUTIVE OFFICER, AND OTHER KEY EMPLOYEES OF THE ORGANIZATION ARE PROVIDED WITH A DRAFT OF THE AUDITED FINANCIAL STATEMENTS AND FORM 990 FOR REVIEW, COMMENT AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY APPLIES TO ALL EMPLOYEES, BOARD MEMBERS AND OFFICERS OF THE ORGANIZATION. EACH PERSON IS ASKED TO READ THE POLICY (INCLUDED SEPARATELY AS A POLICY OR WITHIN THE ORGANIZATION'S EMPLOYEE HANDBOOK) EACH YEAR AND SIGN AN AFFIRMATION STATEMENT REGARDING THE POLICY. SHOULD A CONFLICT ARISE, THEY ARE BROUGHT TO THE ATTENTION OF THE CHIEF OPERATING OFFICER (WHEN AN EMPLOYEE IS INVOLVED) AND THE SECRETARY OF THE BOARD OF DIRECTORS (WHEN A BOARD MEMBER OR OFFICER IS INVOLVED) AND BOTH ARE DISCUSSED AT THE BOARD LEVEL TO DECIDE THE PROPER COURSE OF ACTION. THERE ARE QUARTERLY CONFLICTS CHECKS ADMINISTERED BY THE COO TO EMPLOYEES AND BY THE CHAIRMAN OF THE BOARD TO BOARD MEMBERS. AT THE START OF EACH BOARD MEETING, THE CHAIR ASKS IF THERE ARE ANY CONFLICTS. IF THERE ARE, THE MEMBER RAISES THE CONFLICT AND A DISCUSSION ENSUES REGARDING WHETHER OR NOT IT RISES TO THE LEVEL OF A CONFLICT THAT THE ORGANIZATION SHOULD NOT PURSUE. A FINAL DECISION IS MADE BY MEMBERS OF THE BOARD PRESENT, EXCLUDING THE CONFLICTED BOARD MEMBER. THE BOARD HAS AN ATTORNEY ON RETAINER WHO THEY CONSULT WITH IF NEEDED. SIMILAR DISCLOSURES AND PROCEDURES ARE USED FOR EMPLOYEES WITH POTENTIAL CONFLICTS AND THAT IS ADMINISTERED BY THE COO, WITH COUNSEL FROM THE BOARD CHAIR IF NEEDED. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS INCLUDES ALL OF THESE ELEMENTS: (1) REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP; (2) USE OF DATA AS TO COMPARABLE COMPENSATION; AND (3) CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING. THIS POLICY APPLIES TO DETERMINE THE COMPENSATION OF OUR CHIEF EXECUTIVE OFFICER AND FOUNDER. IN 2015, THE ORGANIZATION ALSO ENGAGED AN OUTSIDE COMPENSATION CONSULTANT WHO WAS HIRED TO DO A FULL STUDY ON EXECUTIVE COMPENSATION. REVIEW AND APPROVAL - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP, PROVIDED THAT PERSONS WITH CONFLICTS OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENT AT ISSUE ARE NOT INVOLVED IN THIS REVIEW AND APPROVAL. USE OF DATA AS TO COMPARABLE COMPENSATION - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED USING DATA AS TO COMPARABLE COMPENSATION FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS. CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING - THERE IS CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING WITH RESPECT TO THE DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENT. THE COO'S COMPENSATION IS DETERMINED IN A SIMILAR FASHION. HOWEVER, THE CEO CONTROLS THE FINAL DECISION OF THE COO'S COMPENSATION AND THE BOARD DECIDES WHETHER TO SUPPORT THE CEO'S RECOMMENDATION. FORM 990, PART VI, SECTION C, LINE 19 ALL OF OUR ANNUAL FINANCIAL STATEMENTS AND FORM 990 ARE MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE. FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, FORM 990 AND FORM 1023 ARE MADE AVAILABLE FOR PUBLIC VIEWING UPON WRITTEN REQUEST AT PENCILS OF PROMISE INCORPORATED'S HEADQUARTERS LOCATED AT 37 WEST 28TH STREET, 3RD FLOOR, NEW YORK, NY 10001. FORM 990 IS AVAILABLE ON WWW.GUIDESTAR.ORG, WWW.CHARITYNAVIGATOR.ORG,AND WWW.ERI-NONPROFIT-SALARIES.COM. THE FORM 990 AND ANNUAL FINANCIAL STATEMENT IS AVAILABLE ON WWW.CHARITIESNYS.COM. FORM 990, PART XI, LINE 9: DECREASE IN EXPECTED PLEDGES RECEIVABLE -63,500. FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.