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        <ExplanationTxt>THE ACADEMY IS A NON-PROFIT ENTITY EXEMPT FROM THE PAYMENT OF INCOME TAXES UNDER INTERNAL REVENUE CODE SECTION 501(C)(3) AND CALIFORNIA REVENUE AND TAXATION CODE SECTION 23701D. ACCORDINGLY, NO PROVISION HAS BEEN MADE FOR INCOME TAXES. MANAGEMENT HAS DETERMINED THAT ALL INCOME TAX POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED UPON POTENTIAL AUDIT OR EXAMINATION; THEREFORE, NO DISCLOSURES OF UNCERTAIN INCOME TAX POSITIONS ARE REQUIRED. THE ACADEMY FILES INFORMATIONAL RETURNS IN THE U.S. FEDERAL JURISDICTION, AND THE STATE OF CALIFORNIA. THE STATUTE OF LIMITATIONS FOR FEDERAL AND CALIFORNIA STATE PURPOSES IS GENERALLY THREE AND FOUR YEARS, RESPECTIVELY.</ExplanationTxt>
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        <ExplanationTxt>THE CHARTER MAKES ITS NONDISCRIMINATORY POLICY KNOWN THROUGH ITS WEBSITE AND ON THE STUDENTS APPLICATIONS. THE CHARTER DRAWS ITS STUDENTS FROM THE LOCAL COMMUNITY, AND CURRENTLY ENROLLS STUDENTS FROM VARIOUS RACIAL MINORITY GROUPS.</ExplanationTxt>
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        <ExplanationTxt>THE CHARTER DOES NOT PROVIDE ANY SCHOLARSHIPS OR FINANCIAL ASSISTANCE.</ExplanationTxt>
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        <ExplanationTxt>THE CLIENT IS A PUBLIC CHARTER SCHOOL PRINCIPALLY FUNDED BY CALIFORNIA AND FEDERAL MONIES RECEIVED THROUGH THE CALIFORNIA DEPARTMENT OF EDUCATION.</ExplanationTxt>
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        <ExplanationTxt>A COPY OF THE FORM 990 IS PRESENTED TO THE BOARD FOR COMMENTS AND/OR APPROVAL PRIOR TO FILING THE FORM.</ExplanationTxt>
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        <ExplanationTxt>THE OFFICERS, DIRECTORS, AND TRUSTEES ALL SIGN THE CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS.</ExplanationTxt>
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        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 15A</FormAndLineReferenceDesc>
        <ExplanationTxt>HUMAN RESOURCES PERFORMS MARKET RESEARCH BASED ON INDUSTRY AND SIZE WHEN DETERMINING COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF THE ORGANIZATION. THE BOARD REVIEWS AND APPROVES THE COMPENSATION AMOUNTS.</ExplanationTxt>
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        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 19</FormAndLineReferenceDesc>
        <ExplanationTxt>THE DOCUMENTS ARE READILY AVAILABLE TO THE PUBLIC UPON REQUEST.</ExplanationTxt>
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        <ExplanationTxt>PRIOR YEAR FUND BALANCE 3,588,414 AT JULY 1, 2015 THE ACADEMY SEPARATED FROM THE LENNOX SCHOOL DISTRICT TO OPERATE AS AN INDEPENDENT CHARTER SCHOOL. ACCORDINGLY, THE BALANCES IN THE ACADEMY'S FUNDS ON THE DISTRICT'S FINANCIAL STATEMENTS AT JULY 1, 2015 WERE TRANSFERRED TO THE ACADEMY.</ExplanationTxt>
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