2014-02-14T13:41:56-06:00 2013-06-30 953309779 GURSEY SCHNEIDER LLP 1888 CENTURY PARK EAST SUITE 900 LOS ANGELES CA 900671735 990 2012-07-01 452823612 CITIZENS OF THE WORLD CHARTER SCHOOLS CITI 3236347102 5371 WILSHIRE BLVD NO 210 LOS ANGELES CA 900364256 KRISTE DRAGON 3139345540 2014-02-13 1 NAZ AFSHAR P00441843 3105520960 2012 2015-11-30 17:44:51Z KRISTE DRAGON 5371 WILSHIRE BLVD 210 LOS ANGELES CA 900364256 2167693 0 X CITIZENSOFTHEWORLD.ORG X 2011 CA WE ARE CREATING A NATIONAL NETWORK OF CHARTER SCHOOLS THAT REFLECT THE SOCIOECONOMIC, RACIAL AND CULTURAL DIVERSITY OF THEIR COMMUNITIES AND EXEMPLIFY A RIGOROUS, STUDENT-CENTERED ACADEMIC PROGRAM. OUR SCHOOLS WILL ENSURE THAT CHILDREN REALIZE THEIR POTENTIAL AS CITIZENS OF THE WORLD. 3 3 12 0 0 0 907661 2167203 0 0 0 490 0 0 907661 2167693 0 0 0 0 415625 1138934 0 0 56522 359372 689918 774997 1828852 132664 338841 146332 1956390 13668 1484885 132664 471505 X WE ARE CREATING A NATIONAL NETWORK OF CHARTER SCHOOLS THAT REFLECT THE SOCIOECONOMIC, RACIAL AND CULTURAL DIVERSITY OF THEIR COMMUNITIES AND EXEMPLIFY A RIGOROUS, STUDENT-CENTERED ACADEMIC PROGRAM. OUR SCHOOLS WILL ENSURE THAT CHILDREN REALIZE THEIR POTENTIAL AS CITIZENS OF THE WORLD. 0 1 689440 CITIZENS OF THE WORLD CHARTER SCHOOLS SUPPORTED CITIZENS OF THE WORLD CHARTER SCHOOLS LOS ANGELES IN PREPARING FOR THE OPENING OF THE SCHOOL, CITIZENS OF THE WORLD MAR VISTA. THE ORGANIZATION ALSO SUPPORTED CITIZENS OF THE WORLD CHARER SCHOOLS NEW YORK IN PREPARING FOR THE OPENING OF TWO SCHOOLS, CITIZENS OF THE WORLD CROWN HEIGHTS AND CITIZENS OF THE WORLD WILLIAMSBURG. ALL 3 SCHOOLS OPENED IN THE FALL OF 2013. 410381 THE ORGANIZATION ALSO PROVIDED ONGOING SUPPORT TO TWO SCHOOLS, CITIZENS OF THE WORLD HOLLYWOOD AND CITIZENS OF THE WORLD SILVER LAKE. 541703 THE ORGANIZATION CONTINUED TO RESEARCH AND DEVELOP A GROWTH PLAN THAT WILL ALLOW FOR ADDITIONAL GROWTH THROUGHOUT THE NATION. 1641524 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 0 0 0 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 9 0 12 0 0 0 0 0 0 0 0 0 X 3 3 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X KRISTE DRAGON 3236347109 5371 WILSHIRE BLVD SUITE 210 LOS ANGELES CA 90036 CHRIS FORMAN 5.00 X 0 0 0 MARK GORDON 5.00 X 0 0 0 CAM STARRETT 5.00 X 0 0 0 KRISTE DRAGON 40.00 X 201700 0 26847 CARRIE WAGNER 40.00 X 35723 0 0 HILLARY JOHNSON 40.00 X 185726 0 10250 423149 0 37097 3 0 1 0 0 2167203 2167203 490 490 2167693 0 0 490 322519 281269 41250 718247 653397 64850 295 295 33908 24044 4932 4932 63965 48474 9304 6187 128738 128738 6991 6991 1750 1750 52651 32822 18299 1530 19766 18534 1232 57042 53489 3553 149812 149812 12581 12581 4907 4193 714 19188 16397 2791 CONSULTANTS 88745 88745 PUBLIC RELATIONS 65066 65066 OUTREACH 35246 32246 3000 UTILITIES 29917 28053 1864 17518 14495 400 2623 1828852 1641524 130806 56522 129842 861702 376 1399 29735 6446 16114 23289 0 1070000 146332 1956390 13668 40708 0 1400000 0 44177 13668 1484885 X 0 0 0 0 132664 471505 132664 471505 146332 1956390 338841 0 X 0 0 0 X 901150 2167203 3068353 901150 2167203 3068353 2789224 279129 490 490 3068843 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 6519 6519 23216 6446 16770 23289 LOANS RECEIVABLE 1070000 1070000 VACATION PAYABLE 19197 PAYROLL LIABILITIES 20281 PAYROLL TAXES 4699 44177 X X X X X 0 0 0 0 0 0 0 0 0 KRISTE DRAGON 201700 0 0 0 0 0 0 0 26847 0 228547 0 0 0 HILLARY JOHNSON 185726 0 0 0 0 0 0 0 10250 0 195976 0 0 0 CHANGES IN PROGRAM SERVICES FORM 990, PART III, LINE 3 CITIZENS OF THE WORLD CHARTER SCHOOLS CONTINUES TO PROVIDE THE VARIOUS EDUCATIONAL AND CHARITABLE SERVICES DESCRIBED IN ITS TAX EXEMPTION APPLICATION. TO KEEP SCHOOL OPERATIONAL COSTS AS LOW AS POSSIBLE WHILE MAINTAINING HIGH SCHOOL-LEVEL ACADEMIC QUALITY, THE NETWORK ENABLED SCHOOLS TO ACCESS THE FOLLOWING NETWORK SERVICES IN EXCHANGE FOR A LICENSE AND SERVICE FEE PAYABLE TO THE NETWORK: ACCESS TO A NATIONAL BEST PRACTICES, PROFESSIONAL DEVELOPMENT OPPORTUNITIES, EVALUATION TOOLS, STUDENT ASSESSMENT TOOLS, ASSISTANCE TRACKING STUDENT ACHIEVEMENT, TRAINING IN SCHOOL OPERATIONS, INTEREST-FREE START-UP LOANS, LONG-TERM FINANCIAL PLANNING ASSISTANCE, AND HELP RESOLVING OUTSTANDING ACADEMIC ISSUES. THE ORGANIZATION HAS TAKEN STEPS TO ENSURE THAT THE LICENSE AND SERVICE FEE IS BOTH BELOW COST AS WELL AS BELOW FAIR MARKET VALUE FOR SUCH SERVICES, AS FURTHER DETAILED BELOW. NO FEES WERE PAID DURING THE TAX YEAR TO WHICH THIS FORM 990 RELATES AND, AS A RESULT, NO PROGRAM SERVICE REVENUE IS SHOWN. REASONS FOR CHANGE: - THE NETWORK SEEKS TO ENSURE THAT EACH SCHOOL REFLECTS ITS OWN LOCAL COMMUNITIES, PARENTS, STUDENTS AND TEACHERS BY MAINTAINING A SIGNIFICANT AMOUNT OF AUTONOMY AT THE SCHOOL LEVEL REGARDING KEY DECISIONS LIKE CURRICULUM, STAFFING, BUDGETING, SCHOOL AND CLASSROOM MATERIALS AND PROFESSIONAL DEVELOPMENT. AT THE SAME TIME, THE NETWORK'S SCHOOL LEADERS AND TEACHERS HAVE INDICATED THAT RECEIVING HIGH-QUALITY SUPPORT AND SERVICES FROM THE NETWORK FREES UP MORE OF THEIR TIME, ENERGY AND RESOURCES TO BE FOCUSED ON WHAT REALLY MATTERS -- EDUCATING CHILDREN. - THE ORGANIZATION'S GOVERNANCE STRUCTURE WAS INTENTIONALLY DESIGNED TO BALANCE HIGH QUALITY ACROSS NETWORK SCHOOLS WITH EMPOWERED LOCAL LEADERSHIP. THE NATIONAL NETWORK WAS ORIGINALLY ENVISIONED AS PLAYING A SIGNIFICANT FRONT END ROLE IN FORMING NEW SCHOOL REGIONS BUT AN INCREASINGLY DIMINISHED ROLE ONCE LOCAL BOARDS WERE FOUNDED AND LOCAL LEADERS WERE HIRED. - DURING THE COURSE OF THE FIRST TWO YEARS OF LAUNCHING SCHOOLS, HOWEVER, THE ORGANIZATION BEGAN TO UNDERSTAND THAT IT COULD CONTINUE TO PROVIDE REAL DISCRETE VALUE TO THE SCHOOLS EVEN AFTER LOCAL AUTONOMOUS LEADERSHIP WAS IN PLACE. THE SCHOOLS ARE GROWING EVERY YEAR AND ARE DOING SO ON VERY CONSTRAINED BUDGETS. THE NATIONAL NETWORK, WORKING IN PARTNERSHIP WITH LOCAL SCHOOL LEADERS, HAS IDENTIFIED IMMEDIATE SCHOOL NEEDS AND ECONOMIES OF SCALE THAT THE NETWORK COULD FAR MORE EFFICIENTLY FILL AND SUPPORT THAN THE INDIVIDUAL SCHOOLS COULD ON THEIR OWN, WHICH WOULD OTHERWISE REQUIRE THEM TO HIRE ADDITIONAL STAFF THAT THEY LIKELY COULD NOT AFFORD IN ANY CASE. - AS NETWORK STAFF BEGAN TO ENGAGE IN MORE DIRECT AND ONGOING SUPPORT OF THE SCHOOLS, THE ORGANIZATION REALIZED THAT IT NEEDED TO RE-ALLOCATE ITS STAFF AND FINANCIAL RESOURCES TO EFFECTIVELY SERVE THE SCHOOLS AT A LEVEL HIGHER THAN INITIALLY PLANNED. - WHILE THE NETWORK STILL PLACES GREAT VALUE ON LOCALIZED SITE-BASED DECISION-MAKING AND EXPECTS ITS REGIONAL SUPPORT ROLE TO DIMINISH OVER TIME, IT NOW UNDERSTANDS THAT (1) NETWORK SUPPORT DURING CRITICAL SCHOOL LAUNCH YEARS IS ESSENTIAL TO ENSURING HIGH QUALITY AND ALIGNMENT TO THE ORGANIZATION'S MISSION AND FUNDAMENTALS ACROSS ALL CWC SCHOOLS AND (2) WHILE SOME AREAS OF NETWORK SUPPORT MAY DECREASE DEPENDING ON SCHOOL NEEDS, NEW AND UNANTICIPATED WAYS OF PROVIDING SUPPORT AND VALUE TO THE REGIONS AND THE SCHOOLS ARE ALSO LIKELY TO ARISE. HERE IS MORE DETAIL ON THE NETWORK SERVICES BEING PROVIDED TO THE SCHOOLS: - ACCESS TO A NATIONAL "KNOWLEDGE NETWORK" OF CITIZENS OF THE WORLD CHARTER SCHOOLS-AFFILIATED TEACHERS, PARENTS, PRINCIPALS AND ADMINISTRATORS, WHO CAN LEARN FROM ONE ANOTHER AND SHARE BEST PRACTICES ON PROJECT-BASED LEARNING, CURRICULUM DEVELOPMENT, AND THE CREATION OF A STRONG SCHOOL AND STAFF CULTURE, AMONG OTHER THINGS, ALLOWING THE NETWORK TO FIGURE OUT WHAT IS WORKING BEST TO EDUCATE CHILDREN; - MEANINGFUL PROFESSIONAL DEVELOPMENT OPPORTUNITIES AND FAIR EVALUATION TOOLS THAT HELP STAFF IMPROVE AND PROVIDE INSIGHTS INTO SCHOOL PERFORMANCE; - ACCESS TO BEST PRACTICE STUDENT ASSESSMENT TOOLS AND HELP IN TRACKING STUDENT ACHIEVEMENT REGULARLY AND ACCURATELY; - ONGOING TRAINING AND DEVELOPMENT FOR SCHOOL LEADERS, FOR EXAMPLE, IN HOW TO OPERATE SCHOOLS EFFICIENTLY; - LONG-TERM FINANCIAL PLANNING ASSISTANCE TO ENSURE FINANCIAL STABILITY, INCLUDING TRAINING IN FINANCIAL MANAGEMENT, AND FINANCIAL OVERSIGHT AND ASSISTANCE IF USEFUL; - HELP RESOLVING OUTSTANDING ACADEMIC ISSUES, WHEN REQUESTED BY THE SCHOOL; - COMMUNICATIONS SUPPORT TO KEEP PARENTS, TEACHERS AND COMMUNITIES UP-TO-DATE; - INTEREST-FREE START-UP LOANS OF UP TO $450,000 TO HELP NEW SCHOOLS GET OFF THE GROUND, FUNDS THAT COMMUNITIES WOULD OTHERWISE HAVE TO RAISE OR BORROW, A SAVINGS TO EACH SCHOOL OF APPROXIMATELY $17,000 ANNUALLY; AND - SUPPORT IN ATTRACTING GREAT TEACHERS AND SCHOOL LEADERS: BEING A PART OF THE CITIZENS OF THE WORLD CHARTER SCHOOLS NETWORK BRINGS ASSOCIATION WITH A BRAND THAT HELPS ATTRACT TALENTED TEACHERS, SCHOOL LEADERS, STAFF, PARENTS AND PARTNERS. AS INDICATED ABOVE, THE ORGANIZATION HAS TAKEN STEPS TO ENSURE THAT FEES FOR THESE SERVICES ARE BOTH BELOW COST AS WELL AS BELOW FAIR MARKET VALUE. NOTWITHSTANDING THE IMPLEMENTATION OF A FEE STRUCTURE, THE SUPPORT AND SERVICES PROVIDED BY THE ORGANIZATION TO THE SCHOOLS IS COST EFFECTIVE. THE FEE PAID BY THE LOS ANGELES SCHOOLS, 1 TO 2 PERCENT, IS A FULL 8 PERCENT OR MORE LOWER THAN THE COMPARABLE MANAGEMENT FEES CHARGED BY OTHER CHARTER SCHOOL NETWORKS. FOR THE NEW YORK SCHOOLS, THE FEE RANGES FROM 5.5 TO 8 PERCENT, ALSO BELOW COMPARABLE MANAGEMENT FEES CHARGED BY OTHER CHARTER SCHOOL NETWORKS. MOREOVER, BEING PART OF THE ORGANIZATION'S NATIONAL NETWORK MINIMIZES OVERHEAD, ALLOWING THE SCHOOLS IN THE CITIZENS OF THE WORLD CHARTER SCHOOLS NETWORK TO SAVE MONEY - IN SOME CASES, AS MUCH AS HUNDREDS OF THOUSANDS OF DOLLARS THEY WOULD OTHERWISE HAVE TO SPEND TO HIRE ADDITIONAL SCHOOL-LEVEL ADMINISTRATORS AND VENDORS TO PERFORM THE FUNCTIONS NOW PROVIDED BY THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD MEMBERS WILL RECEIVE THE FORM 990 FROM THE CFO VIA EMAIL. THEY WILL REVIEW THE DOCUMENT AND ASK CLARIFYING QUESTIONS. THE FORM 990 WILL BE APPROVED AT THE FOLLOWING BOARD MEETING. FORM 990, PART VI, LINE 12C THE BOARD MEMBERS DISCLOSE ANY CONFLICTS OF INTEREST THEY HAVE DURING THE BOARD MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD MEMBERS DISCLOSE ANY CONFLICTS OF INTEREST THEY HAVE DURING BOARD MEETINGS. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD MEMBERS REVIEW THE CHIEF EXECUTIVE OFFICER'S SALARY ON AN ANNUAL BASIS AND ALSO PERFORM AN EVALUATION OF THE PERFORMANCE OF THE CHIEF EXECUTIVE OFFICER. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION PROVIDED ALL REQUIRED DOCUMENTS TO ANYONE WHO REQUESTED THE INFORMATION.