2014-02-14T16:26:08-06:00 2013-06-30 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2012-07-01 010790110 EXCELLENCE ACADEMIES FOUNDATION INC % CAROLYN HACK EXCE 2128447905 826 BROADWAY 9TH FLOOR Suite NEW YORK NY 10003 CAROLYN HACK 9738989494 2014-02-14 true Anthony J Panico 9738989494 2012 2015-11-30 17:44:51Z NORMAN ATKINS 826 BROADWAY 9TH FLOOR NEW YORK NY 10003 3975289 false X WWW.UNCOMMONSCHOOLS.ORG X 2003 NY TO SUPPORT THE CHARITABLE PURPOSES OF THE SUPPORTED ORGANIZATION, UNCOMMON SCHOOLS, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. 3 2 0 0 0 0 850000 800000 0 0 491244 3175289 0 0 1341244 3975289 753457 510813 0 0 0 25000 0 0 0 1557495 11416530 2310952 11952343 -969708 -7977054 38109221 29784900 26329753 25979252 11779468 3805648 X TO SUPPORT THE CHARITABLE PURPOSES OF THE SUPPORTED ORGANIZATION, UNCOMMON SCHOOLS, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, BY ENGAGING IN ACTIVITIES DIRECTED TO THE DEVELOPMENT OF INNOVATIVE SCHOOLS, ESPECIALLY CHARTER PUBLIC SCHOOLS. IN PARTICULAR, EXCELLENCE ACADEMIES FOUNDATION, INC., WHICH SUPPORTS THE START-UP, PROGRAM DEVELOPMENT, AND PROGRAM IMPLEMENTATION OF EXCELLENCE BOY'S CHARTER SCHOOL OF BEDFORD STUYVESANT AND THE ACQUISITION AND DEVELOPMENT OF PROPERTY TO BE USED BY EXCELLENCE BOY'S CHARTER SCHOOL OF BEDFORD STUYVESANT, A CHARTER PUBLIC SCHOOL THAT OPENED IN THE BEDFORD STUYVESANT NEIGHBORHOOD OF BROOKLYN, NEW YORK IN AUGUST 2004. IN ADDITION EXCELLENCE ACADEMIES FOUNDATION, INC. HAS HELPED LAUNCH AN EARLY LEARNING PROGRAM CALLED EXCELLENCE BABY ACADEMY TO BENEFIT THE YOUNGER SIBLINGS OF EXCELLENCE BOY'S CHARTER SCHOOL STUDENTS AND OTHER MEMBERS OF THE COMMUNITY. true false 11823948 510813 0 EXPENSES INCURRED IN CARRYING OUT THE CHARITABLE PURPOSES OF THE SUPPORTED ORGANIZATION, UNCOMMON SCHOOLS, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, BY ENGAGING IN ACTIVITIES DIRECTED TO THE DEVELOPMENT OF INNOVATIVE SCHOOLS, ESPECIALLY CHARTER PUBLIC SHCOOLS. IN PARTICULAR, THE ORGANIZATION SUPPORTS THE SUCCESSFUL START-UP, PROGRAM DEVELOPMENT, AND PROGRAM IMPLEMENTATION OF EXCELLENCE BOY'S CHARTER SCHOOL OF BEDFORD STUYVESANT AND THE ACQUISISTION AND DEVELOPMENT OF PROPERTY TO BE USED BY EXCELLENCE STUYVESANT NEIGHBORHOOD OF BROOKLYN, NEW YORK IN AUGUST 2004. 11823948 true true false false false false false false false false true false true false true true false true false false false false false false false false false true false true false false false false false false false false false false false false false true true false false false true 5 0 true 0 false false false false false false false false false false false X 3 2 false false false false true true true true true false false true true true true true true true true false NY X CAROLYN HACK 2128447905 826 BROADWAY 9TH FLOOR NEW YORK NY 10003 X PAUL TUDOR JONES II 5.0 X X 0 0 0 NORMAN ATKINS 5.0 X 0 0 0 BRETT PEISER 55.0 X 25000 223984 21000 25000 223984 21000 0 false true false 0 X 800000 800000 0 3175289 3175289 0 0 0 0 0 0 0 0 0 0 3975289 3175289 510813 510813 0 0 0 25000 25000 0 0 0 0 0 25000 25000 14170 14170 6775 6775 0 0 0 169348 169348 0 4621 4621 0 0 0 0 0 0 0 0 820778 820778 57450 57450 BAD DEBT EXPENSE 10000000 10000000 0 0 UTILITIES 188824 188824 SECURITY 118609 118609 OTHER EXPENSES 10955 10955 11952343 11823948 128395 0 X 0 0 1921053 1714787 0 0 0 0 0 0 0 0 6932000 0 0 0 0 0 670913 112568 574442 558345 0 0 0 0 28426513 27511768 0 0 255213 0 38109221 29784900 409721 59220 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25920032 25920032 26329753 25979252 X 11779468 3805648 0 0 0 0 11779468 3805648 38109221 29784900 -7977054 3234 X X false true X true false X X X X false false false UNCOMMON SCHOOLS INC 311488698 03 true true true 243313 1 243313 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 27233 27233 643680 112568 531112 558345 ESCROW RESERVE ACCOUNTS 390593 F ASSETS HELD FOR SALE, NET 27121175 F 27511768 0 CONSTRUCTION ADVANCES 25920032 25920032 X TEXT OF FIN 48 AUDITED FINANCIAL STATEMENT FOOTNOTE SCHEDULE D, PART X THE FIN 48 FOOTNOTE BELOW IS FROM THE ORGANIZATION'S CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2013: THE ORGANIZATION FOLLOWS THE RECOGNITION AND DISCLOSURE PROVISIONS OF THE ACCOUNTING STANDARD RELATED TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. UNDER THIS STANDARD, TAX POSITIONS ARE EVALUATED FOR RECOGNITION USING A MORE-LIKELY-THAN-NOT THRESHOLD, AND THOSE TAX POSITIONS REQUIRING RECOGNITION ARE MEASURED AT THE LARGEST AMOUNT OF TAX BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT WITH A TAXING AUTHORITY THAT HAS FULL KNOWLEDGE OF ALL RELEVANT INFORMATION. THE ORGANIZATION HAS EVALUATED THE LIKELIHOOD OF ITS TAX POSITIONS BEING CHALLENGED AS REMOTE. ACCORDINGLY, THE ORGANIZATION HAS NOT INCLUDED ANY INCOME TAX PROVISIONS, INCLUDING INTEREST AND PENALTIES, IN THE FINANCIAL STATEMENTS PRESENTED, RELATED TO POTENTIAL VIOLATIONS OF THEIR TAX EXEMPT STATUS. THE ORGANIZATION HAS NO OPEN YEARS PRIOR TO 2009. true EXCELLENCE BOY'S CHARTER SCHOOL OF BEDFORD STUYV 225 PATCHEN AVENUE BROOKLYN NY 11233 810650035 501(C)(3) 265000 PROGRAM SUPPORT UNCOMMON SCHOOLS INC 826 BROADWAY 9TH FLOOR NEW YORK NY 10003 311488698 501(C)(3) 243313 PROGRAM SUPPORT 2 0 GRANT FUND MONITORING Schedule I, Part I; Question 2 GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. X X X false false false false false false false true false BRETT PEISER 0 223484 0 500 25000 0 0 3088 0 17912 25000 244984 0 0 COMPENSATION INFORMATION SCHEDULE J, PART I, QUESTION 7 AND CORE FORM, PART VII AN INDIVIDUAL INCLUDED IN SCHEDULE J, PART II and IN CORM FORM, PART VII, RECEIVED A BONUS DURING CALENDAR YEAR 2012 WHICH AMOUNT WAS INCLUDED IN COLUMN B(II) HEREIN AND IN THE INDIVIDUAL'S 2012 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS PART III, QUESTION 2 In December 2006, Excellence Academies Foundation, Inc. ("EAF") purchased a loan receivable in the amount of $6,932,000. The receivable was originally held by one of the major supporters of Uncommon Schools, Inc. ("USI"); a related Internal Revenue Code 501(c)(3) tax-exempt organization and its affiliates who assigned all rights and benefits on that date. On May 31, 2013 CitiCorp USA Inc. ("Citi"), which previously held the $3,068,000 remaining interest in the $10M promissory note, notified EAF of its intention to exercise its Put Option as defined in the agreement. On May 31, 2013 Citi and EAF entered into a Withdrawal and Interest Purchase and Sale Agreement and Assignment of Membership Interest agreement, pursuant to which Citi sold, assigned and transferred to EAF 100% of Citi's interest in Brooklyn Excellence Investment Fund, LLC. ("Fund"), for a purchase price of $123,400. Upon the sale of Citi's interest in the Fund, EAF became the sole member of the Fund. Pursuant to such purchase, EAF became the sole holder of the promissory note of $10M, which resulted in a net gain to EAF of $2,929,900. The promissory note of $10M was a liability of Excellence II, LLC; a disregarded entity of Uncommon Schools, Inc. On June 28, 2013, by consent of all members of the Board of Trustees of EAF, it was resolved that the Fund would be liquidated and dissolved and EAF would forgive the Excellence II Note and deemed it "Paid in Full". Accordingly, EAF has recorded bad debt expense for the forgiveness of this debt in the amount of $10M. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 UNCOMMON SCHOOLS, INC. ("USI") IS THE SOLE MEMBER OF THIS ORGANIZATION. USI HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF TRUSTEES AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 11b UNCOMMON SCHOOLS, INC. ("USI") IS THE SOLE MEMBER OF EXCELLENCE ACADEMIES FOUNDATION, INC. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO THE FINANCE COMMITTEE OF USI FOR REVIEW BY ITS MEMBERS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). FOLLOWING THIS REVIEW THE FORM 990 WAS ALSO provided TO EACH VOTING MEMBER OF THIS ORGANIZATION'S GOVERNING BODY, ITS BOARD OF TRUSTEES, FOR REVIEW PRIOR TO FILING WITH THE IRS. THE ORGANIZATION'S BOARD OF TRUSTEES HAS DELEGATED TO THE USI FINANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE, REVIEW AND APPROVE OF THE FEDERAL FORM 990, INCLUDING THE PREPARATION, REVIEW AND FILING PROCESS. AS PART OF THE TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS OF THE ORGANIZATION TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS FOR THEIR REVIEW. THE ORGANIZATION'S FINANCE PERSONNEL AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S FINANCE PERSONNEL AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF USI'S FINANCE COMMITTEE AND PROVIDING IT TO EACH VOTING MEMBER OF ITS GOVERNING BODY PRIOR TO FILING WITH THE IRS. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 12 UNCOMMON SCHOOLS, INC. ("USI") IS THE SOLE MEMBER OF EXCELLENCE ACADEMIES FOUNDATION, INC. USI AND THIS ORGANIZATION REGULARLY MONITOR AND ENFORCE COMPLIANCE WITH THEIR CONFLICT OF INTEREST POLICY. ANNUALLY ALL MEMBERS OF THE BOARD OF TRUSTEES ARE REQUIRED TO REVIEW THE EXISTING CONFLICT OF INTEREST POLICY AND COMPLETE A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE RETURNED TO USI'S CHIEF FINANCIAL OFFICER FOR REVIEW. THEREAFTER, USI'S CHIEF FINANCIAL OFFICER PREPARES A SUMMARY OF THE COMPLETED QUESTIONNAIRES WHICH CONTAINS INFORMATION DISCLOSED ON AN INDIVIDUAL BY INDIVIDUAL BASIS. USI'S CHIEF FINANCIAL OFFICER THEN PRESENTS THIS SUMMARY TO THE ORGANIZATION'S BOARD OF TRUSTEES FOR ITS REVIEW AND DISCUSSION AND ANY MITIGATING BEHAVIOR WHERE NECESSARY. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION B; QUESTION 15 UNCOMMON SCHOOLS, INC. ("USI") IS THE SOLE MEMBER OF EXCELLENCE ACADEMIES FOUNDATION, INC. USI'S BOARD OF TRUSTEES HAS A COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE HAS completed a comparative analysis of similar organizations which it uses as guidance WHEN IT REVIEWS AND APPROVES OF THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S SENIOR MANAGEMENT. THE COMMITTEE REVIEWS THE "TOTAL COMPENSATION" OF THE INDIVIDUALS WHICH IS INTENDED TO INCLUDE BOTH CURRENT AND DEFERRED COMPENSATION AND ALL EMPLOYEE BENEFITS, BOTH QUALIFIED AND NON-QUALIFIED. THE COMMITTEE'S REVIEW IS DONE ON AT LEAST AN ANNUAL BASIS AND ENSURES THAT THE "TOTAL COMPENSATION" OF SENIOR MANAGEMENT OF THE ORGANIZATION IS REASONABLE. THE ACTIONS TAKEN BY THE COMMITTEE ENABLE THE ORGANIZATION TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 4958 WITH RESPECT TO THE TOTAL COMPENSATION OF CERTAIN MEMBERS OF THE SENIOR MANAGEMENT TEAM. THE THREE FACTORS WHICH MUST BE SATISFIED IN ORDER TO RECEIVE THE REBUTTABLE PRESUMPTION OF REASONABLENESS ARE THE FOLLOWING: 1. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY AN "AUTHORIZED BODY" OF THE APPLICABLE TAX-EXEMPT ORGANIZATION WHICH IS COMPOSED ENTIRELY OF INDIVIDUALS WHO DO NOT HAVE A "CONFLICT OF INTEREST" WITH RESPECT TO THE COMPENSATION ARRANGEMENT; 2. THE AUTHORIZED BODY OBTAINED AND RELIED UPON "APPROPRIATE DATA AS TO COMPARABILITY" PRIOR TO MAKING ITS DETERMINATION; AND 3. THE AUTHORIZED BODY "ADEQUATELY DOCUMENTED THE BASIS FOR ITS DETERMINATION" CONCURRENTLY WITH MAKING THAT DETERMINATION. THE COMMITTEE IS COMPRISED OF MEMBERS OF THE BOARD OF TRUSTEES EACH OF WHO ARE INDEPENDENT AND ARE FREE FROM ANY CONFLICTS OF INTEREST. THE COMMITTEE RELIED UPON APPROPRIATE COMPARABLE DATA; SPECIFICALLY THE COMMITTEE UTILIZES INDUSTRY COMPARABLES AND PERFORMS IN-HOUSE STUDIES OF EXECUTIVE COMPENSATION WITH ASSISTANCE FROM NEWSCHOOLS VENTURE FUND. THE COMMITTEE ADEQUATELY DOCUMENTED ITS BASIS FOR ITS DETERMINATION THROUGH THE TIMELY PREPARATION OF WRITTEN MINUTES OF THE COMPENSATION COMMITTEE MEETINGS DURING WHICH THE EXECUTIVE COMPENSATION AND BENEFITS WAS REVIEWED AND SUBSEQUENTLY APPROVED. THE ACTIONS OUTLINED ABOVE WITH RESPECT TO THE COMMITTEE AND THE ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS ONLY APPLIES TO CERTAIN SENIOR MANAGEMENT PERSONNEL. DISCLOSURE INFORMATION CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE STATE OF NEW JERSEY department OF TREASURY. COMPENSATION INFORMATION CORE FORM, PART VII & SCHEDULE J BRETT PEISER, A TRUSTEE OF THIS ORGANIZATION AND TRUSTEE/CHIEF EXECUTIVE OFFICER OF UNCOMMON SCHOOLS, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, RECEIVED COMPENSATION FROM BOTH THIS ORGANIZATION AND UNCOMMON SCHOOLS, INC. THE COMPENSATION FROM THIS ORGANIZATION, REPORTED ON A FORM 1099-MISC IN THE AMOUNT OF $25,000, REPRESENTS REPORTABLE COMPENSATION FOR SERVICES PERFORMED IN THE PRIOR FISCAL YEAR. THE AMOUNT IS BEING REPORTED ON THIS FORM 990 IN ACCORDANCE WITH INTERNAL REVENUE SERVICE FORM 990 RULES AND REGULATIONS BECAUSE IT IS COMPENSATION PAID DURING THE 2012 CALENDAR YEAR. THE COMPENSATION PAID TO MR. PEISER BY UNCOMMON SHOOLS, INC. WAS FOR SERVICES RENDERED FOR HIS DUTIES AS CHIEF EXECUTIVE OFFICER OF UNCOMMON SCHOOLS, INC.; NOT FOR SERVICES RENDERED AS A VOTING MEMBER OF THIS ORGANIZATION'S BOARD OF TRUSTEES. RELATED HOURS DISCLOSURE CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE ENTITY WITHIN UNCOMMON SCHOOLS, INC. ("USI") AND AFFILIATES. CERTAIN BOARD OF TRUSTEE MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES. THE HOURS SHOWN ON THIS FORM, 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENT THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF TRUSTEES OF OTHER RELATED ORGANIZATIONS, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED IN PART VII OF THIS FORM 990. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF UNCOMMON SCHOOLS, INC. AND AFFILIATES; NOT SOLELY THIS ORGANIZATION. AUDITED FINANCIAL STATEMENTS CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN THE UNCOMMON SCHOOLS, INC. AND AFFILIATES. AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF THE TAXPAYER FOR THE FISCAL YEARS ENDED JUNE 30, 2013 AND JUNE 30, 2012; RESPECTIVELY, AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CONSOLIDATING SCHEDULES BY ENTITY. AN UNQUALIFIED OPINION WAS ISSUED BY THE INDEPENDENT CPA FIRM EACH YEAR. UNCOMMON SCHOOLS, INC.'S BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE TAXPAYER'S FINANCIAL STATEMENTS AND THE SELECTION OF ITS INDEPENDENT AUDITOR. UNCOMMON SCHOOLS INC 826 BROADWAY 9TH FLOOR NEW YORK NY 10003 311488698 MGMT SVCS NY 501(C)(3) 509(A)(1) NA true UNCOMMON LENDER INC 826 BROADWAY 9TH FLOOR NEW YORK NY 10003 263594129 REAL ESTATE NY 501(C)(3) 509(A)(1) USI true NORTH STAR QALICB LLC 826 BROADWAY NEW YORK NY 10003 201991956 REAL ESTATE NY NA false true false false false false false false false false false false false false true false false false false UNCOMMON SCHOOLS INC B 243313 COST