2015-07-13T11:32:37-05:00 2014-08-31 760286393 HEREFORD LYNCHSELLARS & KIRKHAM PC 111 E BOOTHE CLEVELAND TX 77327 990 2013-09-01 760297121 THE VARNETT SCHOOLS INC VARN 7137234699 PO BOX 1457 HOUSTON TX 77251 WARNER D ERVIN 2015 PRESIDENT 7137234699 2015-07-09 1 LELAND DUSHKIN P00975200 2815926443 2013 2016-03-07 17:11:31Z WARNER D ERVIN PO BOX 1457 HOUSTON TX 77251 15263815 0 X WWW.VARNETT.ORG X 1990 TX THE SCHOOL PROVIDES AN ALTERNATIVE PUBLIC SCHOOL TO CHILDREN AND PROVIDES QUALIFYING STUDENTS WITH SUBSIDIZED MEALS. 3 3 221 0 0 0 20267 15065616 13471738 41162 160680 157037 0 0 13652685 15263815 0 0 0 0 6741202 7408392 0 0 1046 5367980 9138471 12109182 16546863 1543503 -1283048 21264715 19733115 1001964 695454 20262751 19037661 THE SCHOOL PROVIDES AN ALTERNATIVE PUBLIC SCHOOL TO CHILDREN AND PROVIDES QUALIFYING STUDENTS WITH SUBSIDIZED MEALS. 0 0 12031443 41162 THE SCHOOL PROVIDES AN ALTERNATIVE PUBLIC SCHOOL TO CHILDREN, SERVING MOSTLY MINORITY STUDENTS. 12031443 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 6 0 1 221 1 0 0 0 0 0 0 0 0 X 3 3 1 0 0 1 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X WARNER D ERVIN 7137234699 PO BOX 1457 HOUSTON TX 77251 M ANNETTE CLUFF PRESIDENT 40.00 X X 344274 0 0 LINDA WATSON SECRETARY/TREASURER 10.00 X X 0 0 0 HOWARD JEFFERSON DIRECTOR 10.00 X 0 0 0 ALSIE CLUFF JR EMPLOYEE 40.00 X 219247 0 0 563521 0 0 5 0 1 0 UNICORN BUILDING & MAINTENANCE 4610 CREEK POINTE LANE MISSOURI CITY TX 77459 MAINTENANCE 895347 TWIN CITY SECURITY 9800 RICHMOND AVE STE 480 HOUSTON TX 77042 SECURITY 199179 SPEECH & LANGUAGE CONNECTIONS 23922 CINCO VILLAGE CENTER STE 120 KATY TX 77494 CONSULTATION 116765 3 15007509 58107 15065616 FOOD SERVICE REVENUE 611600 28945 28945 BOOK FAIR 611600 12217 12217 41162 157037 157037 15263815 41162 0 157037 563521 219247 344274 6291132 5820307 470825 139348 135430 3918 284038 284038 130353 119596 10757 3079372 3079372 119837 119837 675104 405584 269520 696651 653117 43534 33458 19044 14414 505916 505916 SUPPLIES, TEXTBOOKS, FO 1646926 1519590 127336 ABANDONED BUILDING PROJ 1020079 1020079 MAINTENANCE AND REPAIRS 987618 987618 MISCELLANEOUS OPERATING 373510 341877 30587 1046 16546863 12031443 4514374 1046 1677470 1449634 10844604 10000643 1246533 66986 0 9690 452401 9989739 2953434 8066003 7036305 147561 21264715 19733115 376935 291724 625029 403730 1001964 695454 X 7632125 7945342 12630626 11092319 20262751 19037661 21264715 19733115 -1283048 57958 0 X X 0 1 X 0 1 1 X 653287 653287 6813581 1304553 5509028 2522871 1648881 873990 7036305 WAGES PAYABLE 211671 PAYROLL DEDUCTIONS PAYABLE 175639 DUE TO GOVERNMENT 16420 403730 15263815 0 15263815 0 15263815 16546863 0 16546863 0 16546863 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE ORGANIZATION PUBLICIZES ITS POLICY ON ITS WEBSITE. SCHEDULE E, PART I, LINE 6 AS A TEXAS CHARTERED SCHOOL, THE ORGANIZATION RECEIVES FUNDS FROM THE STATE OF TEXAS AS LONG AS REQUIREMENTS ARE MET. X X 0 0 0 0 0 0 0 0 0 M ANNETTE CLUFF PRESIDENT 344274 0 0 0 0 0 0 0 0 0 344274 0 0 0 ALSIE CLUFF JR EMPLOYEE 219247 0 0 0 0 0 0 0 0 0 219247 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 M. ANNETTE CLUFF AND ALSIE CLUFF JR ARE MARRIED. ALSIE CLUFF, III IS THE SON OF ALSIE CLUFF, JR. AND M. ANNETTE CLUFF. MELISSA CLUFF, DAUGHTER OF ALSIE CLUFF, JR. AND M. ANNETTE CLUFF IS AN EMPLOYEE OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 5 IN SPRING 2014, THE VARNETT SCHOOLS, INC (THE "SCHOOL") OBTAINED INFORMATION FROM WHICH IT DEVELOPED A REASONABLE SUSPICION THAT ONE OR MORE FORMER ADMINISTRATORS MAY HAVE MISAPPROPRIATED VARIOUS SCHOOL FUNDS. AFTER LEARNING OF THE ALLEGATIONS, THE SCHOOL RETAINED LEGAL COUNSEL TO INVESTIGATE THE ALLEGATIONS. THROUGH THE COURSE OF THAT INVESTIGATION (WHICH HAS NOT CONCLUDED), THE SCHOOL DISCOVERED THAT THE INDIVIDUAL(S) APPEAR TO HAVE MISAPPROPRIATED IN EXCESS OF $1.8 MILLION FROM THE SCHOOL. AS A RESULT OF THE INVESTIGATION, THE FORMER ADMINISTRATORS RESIGNED THEIR EMPLOYMENT AND AFFILIATION WITH THE SCHOOL IN SUMMER 2014 AND TENDERED $1.5 MILLION IN REIMBURSEMENT TO THE SCHOOL. IN ADDITION, THE SCHOOL HAS RECEIVED $100,000 FROM AN INSURANCE POLICY THAT COVERED THEFT/MISAPPROPRIATION. AT PRESENT, THE SCHOOL'S LEGAL COUNSEL IS IN POSSESSION OF THESE FUNDS, AS REQUESTED BY THE U.S. DEPARTMENT OF JUSTICE, OFFICE OF THE UNITED STATES ATTORNEY FOR THE SOUTHERN DISTRICT OF TEXAS. THE SCHOOL IS CONTINUING IN ITS EFFORTS TO ASCERTAIN THE FULL MEASURE OF THE MISAPPROPRIATION AND TO TAKE THE REASONABLE AND NECESSARY STEPS TO RECOVER THE MISAPPROPRIATED FUNDS. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S BOARD REVIEWED AND APPROVED OF THE FORM 990 BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE REQUIRED TO REGULARLY REPORT ANY POTENTIAL CONFLICTS OF INTEREST AS REQUIRED IN THE ORGANIZATION'S GOVERNANCE REPORT. FORM 990, PART VI, SECTION B, LINE 15 SALARY FOR THE SUPERINTENDENT AND OFFICERS IS REVIEWED AND DETERMINED BY THE INDEPENDENT BOARD MEMBERS, STUDY OF COMPARABLE DATA WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION PROCESS. FORM 990, PART VI, SECTION C, LINE 19 APPLICABLE DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 3B: THE ORGANIZATION UNDERWENT THE REQUIRED AUDIT RESULTING FROM A FEDERAL AWARD IN THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133.