2013-05-14T14:48:46-05:00 2012-06-30 310800053 CLARK SCHAEFER HACKETT & CO 10100 INNOVATION DRIVE SUITE 400 DAYTON OH 45342 990 2011-07-01 311690658 RICHARD ALLEN PREPARATORY INC RICH 9375869500 368 S PATTERSON BLVD DAYTON OH 45402 JEANETTE HARRIS 9375869500 2013-05-13 1 KEVIN T DAVIS CPA P00039883 9372260070 2013-05-10 2011 2016-02-24 21:20:13Z JEANETTE HARRIS 368 S PATTERSON BLVD DAYTON OH 45402 2078594 0 X NA X 1999 OH EDUCATE CHILDREN IN GRADES KINDERGARTEN THROUGH EIGHTH GRADE IN MONTGOMERY COUNTY, OHIO. 5 5 0 10 0 0 1904740 1936084 68404 93273 0 0 64607 49237 2037751 2078594 0 0 0 0 0 0 0 0 0 2116901 2031958 2116901 2031958 -79150 46636 138502 223987 172519 175002 -34017 48985 TO MAINTAIN AND PROVIDE A SCHOOL EXCLUSIVELY FOR EDUCATIONAL, LITERARY, SCIENTIFIC AND RELATED TEACHING SERVICE. 0 0 1727165 142510 EDUCATE CHILDREN IN GRADES KINDERGARTEN THROUGH EIGHTH GRADE IN MONTGOMERY COUNTY, OHIO. 1727165 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 X 5 5 1 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 1 0 0 0 X FELIX O'AKU 9375869500 368 S PATTERSON BLVD DAYTON OH 45402 WANDA MILLS 1.00 X 0 0 0 MIA WORTHAM-SPELLS 1.00 X 0 0 0 BENJAMIN SPEARE-HARDY 1.00 X 0 0 0 DR LECRETA CLARK 1.00 X 0 0 0 MICHAEL BROWN 1.00 X 0 0 0 FELIX A O'AKU 40.00 X 0 134979 38586 DR JEANETTE HARRIS 40.00 X 0 189376 40778 DR MICHELLE THOMAS 40.00 X 0 101124 46920 0 425479 126284 0 0 1 0 THE INSTITUTE OF MANAGEMENT AND RESOURCE 386 S PATTERSON BLVD DAYTON OH 45402 PURCHASED SERVICES 1969312 1 1936084 1936084 SCHOOL LUNCH 611600 93273 93273 93273 OTHER 611600 49237 49237 49237 2078594 142510 0 0 X 12074 10263 1811 14501 12326 2175 2295 1951 344 PURCHASED SERVICES 1969312 1673915 295397 SPONSORSHIP FEES 30801 26181 4620 OTHER 2975 2529 446 2031958 1727165 304793 0 19741 9344 118761 214643 78786 78786 0 0 138502 223987 144419 146902 28100 28100 172519 175002 X -34017 48985 -34017 48985 138502 223987 X 46636 36366 X 0 0 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 78786 78786 0 0 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE SCHOOL IS A NON-PROFIT ORGANIZATION THAT HAS BEEN DETERMINED BY THE INTERNAL REVENUE SERVICE TO BE EXEMPT FROM FEDERAL INCOME TAXES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. MANAGEMENT IS NOT AWARE OF ANY COURSE OF ACTION OR SERIES OF EVENTS THAT HAVE OCCURRED THAT MIGHT ADVERSLY AFFECT THE SCHOOL'S TAX-EXEMPT STATUS. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE SCHOOL IS A PUBLIC SCHOOL THAT IS INDEPENDENT OF ANY SCHOOL DISTRICT AS PROVIDED BY THE OHIO REVISED CODE CHAPTERS 3314 AND 1702. AS A PUBLIC SCHOOL, RACIALLY NONDISCRIMINATORY POLICIES ARE MAINTAINED IN OPERATION, AS WELL AS IN SOLICITATION OF STUDENTS. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 SCHOOL RECEIVES FUNDING FROM THE STATE OF OHIO AS WELL AS THE FEDERAL GOVERNMENT (PASSED THROUGH THE OHIO DEPARTMENT OF EDUCATION) TO PROVIDE FUNDING FOR EDUCATIONAL SERVICES AS WELL AS SPECIFIC EDUCATIONAL GRANT PROGRAMS. 1 X 0 0 0 0 0 0 0 0 0 FELIX A O'AKU 0 134979 0 0 0 0 0 18900 0 19686 0 173565 0 0 DR JEANETTE HARRIS 0 175000 0 14376 0 0 0 26513 0 14265 0 230154 0 0 JEANETTE HARRIS PRESIDENT 189376 THE PRESIDENT OF THE ORGANIZATION WHOLLY OWNS THE INSTITUTE OF CHARTER SCHOOL MANAGEMENT RESOURCES, INC. (ICSMR) THAT PROVIDES CONSULTING SERVICES TO THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC. (IMR). JEANETTE HARRIS IS COMPENSATED THROUGH ICSMR AND HER SALARY IS INCLUDED IN THE SERVICES BILLED TO IMR. IMR CHARGES THE ENTITIES LISTED ON SCHEDULE R, PART II FOR THEIR ALLOCATED PORTION OF JEANETTE HARRIS' COMPENSATION. THE TOTAL AMOUNT OF JEANETTE HARRIS' W-2 COMPENSATION FROM ICSMR IS SHOWN ON SCHEDULE L, PART IV ABOVE.IMR EMPLOYS ALL SCHOOL PERSONNEL AND PAYS VIRTUALLY ALL OTHER SCHOOL OPERATING COSTS. IMR ALLOCATES THE OPERATING COSTS TO EACH SCHOOL, INCLUDING AMOUNTS BILLED TO IT BY ICSMR. 0 FORM 990, PART VI, SECTION A, LINE 2 THE ORGANIZATION'S PRESIDENT, DR. JEANETTE HARRIS, IS THE MOTHER OF VICE PRESIDENT/SECRETARY, DR. MICHELLE THOMAS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTANT AND THEN REVIEWED BY THE PRESIDENT AND/OR TREASURER OF THE ORGANIZATION PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS CONSISTENTLY MONITORED AT EACH BOARD MEETING BY REQUIRING EACH BOARD MEMBER TO DISCLOSE ANY CONFLICTS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX: THE SCHOOL'S EXPENSES ARE PAID DIRECTLY BY THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC. (IMR). IMR CHARGES THE SCHOOL FOR ITS DIRECT PROGRAMMATIC EXPENSES, AS WELL AS FOR AN ALLOCATED PORTION OF INDIRECT PROGRAMMATIC EXPENSES AND ADMINISTRATIVE COSTS. MANAGEMENT ESTIMATES THAT 85% OF THE CHARGES TO THE SCHOOL RELATE TO PROGRAMMATIC ACTIVITIES AND 15% RELATE TO ADMINISTRATIVE FUNCTIONS. NEITHER THE SCHOOL NOR IMR PERFORM ANY CHARITABLE FUNDRAISING ACTIVITIES. ACCORDINGLY, NO FUNDRAISING EXPENSES ARE REPORTED ON FORM 990, PART IX. PRIOR PERIOD ADJUSTMENT: FORM 990, PART XI, LINE 5: THE OHIO AUDITOR OF STATE PERFORMED A REGULAR AUDIT OF THE JUNE 30, 2011 FINANCIAL STATEMENTS OF THE SCHOOL. ITS REPORT, DATED OCTOBER 26, 2012, CAN BE FOUND AT THE AUDITOR OF STATE'S WEBSITE. THIS REPORT CONTAINS VARIOUS NONCOMPLIANCE CITATIONS AND FINDINGS FOR RECOVERY. OFFICIALS OF THE SCHOOL (IMR) ARE DISPUTING MANY OF THESE FINDINGS. THE OHIO AUDITOR OF STATE'S REPORT ON THE FINANCIAL STATEMENTS STATED THAT SUFFICIENT DOCUMENTATION WAS NOT PROVIDED REGARDING ACCOUNTS PAYABLE TO DETERMINE WHETHER THE SCHOOL'S FINANCIAL STATEMENTS WERE PRESENTED IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE JUNE 30, 2011 FINANCIAL STATEMENTS INCLUDED IN THE REPORT OF THE OHIO AUDITOR OF STATE REFLECTS A DECREASE OF REVENUE FROM STATE FUNDING OF $11,536, A DECREASE OF PURCHASED SERVICES OF $10,646, AND AN INCREASE IN JUNE 30, 2010 NET ASSETS OF $37,256 COMPARED TO THE FINANCIAL STATEMENTS USED TO PREPARE THE JUNE 30, 2011 FORM 990. ACCORDINGLY, THE $36,366 IS REPORTED AS OTHER CHANGES IN NET ASSETS. FORM 990, PART I, LINE 5 & PART V, LINE 2: THE SCHOOL HAS A MANAGEMENT AGREEMENT WITH THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC (IMR) TO PERFORM THE FUNCTIONS REASONABLY REQUIRED TO MANAGE THE OEPRATION OF THE SCHOOL. THE SCHOOL REIMBURSES IMR EVERY PAY-PERIOD FOR THE GROSS PAYROLL EXPENSE OF THE CONTRACT EMPLOYEES WORKING AT THE SCHOOL AND MONTHLY FOR THE RELATED COST OF THE BENEFITS OFFERED TO THESE EMPLOYEES. FOR FISCAL YEAR 2011-2012, THE EXPENSE RELATED TO CONTRACTUAL EMPLOYEES WAS $799,762 FOR WAGES AND $104,724 FOR BENEFITS. FORM 990, SECTION A, COLUMN F: THE BOARD, PRESIDENT, VICE PRESIDENT AND TREASURER OF RICHARD ALLEN ACADEMY COMMUNITY SCHOOL SERVE IN THE SAME CAPACITY FOR RICHARD ALLEN PREPATORY, RICHARD ALLEN ACADEMY II, AND RICHARD ALLEN ACADEMY III COMMUNITY SCHOOLS, ALL OF WHICH ARE MANAGED BY THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC. (IMR). THE VICE PRESIDENT AND TREASURER ARE EMPLOYEES OF IMR AND THE PRESIDENT IS AN EMPLOYEE OF THE INSTITUTE OF CHARTER SCHOOL MANAGEMENT RESOURCES, INC. (ICSMR). THE EMPLOYMENT COSTS ASSOCIATED WITH THESE OFFICERS ARE ALLOCATED BETWEEN THE RICHARD ALLEN SCHOOLS. FORM 990, PART XI, LINE 2B: THE JUNE 30, 2012 FINANCIAL STATEMENTS WERE PREPARED BY MANAGEMENT AND THE OHIO AUDITOR OF THE STATE HAD NOT ISSUED ITS REPORT ON THESE FINANCIAL STATEMENTS AT THE TIME THE JUNE 30, 2012 FORM 990 WAS PREPARED. THE AMOUNTS REPORTED IN PARTS VIII, IX AND X ARE THE REPRESENTATION OF MANAGEMENT AND HAVE NOT BEEN AUDITED OR REVIEWED BY EITHER THE OHIO AUDITOR OF STATE OR ANY INDEPENDENT ACCOUNTING FIRM. THE RICHARD ALLEN PREPARATORY ACADEMY WAS ALSO INCLUDED IN A SPECIAL AUDIT CONDUCTED BY THE AUDITOR OF THE STATE OF OHIO. THIS SPECIAL AUDIT REPORT DATED DECEMBER 5, 2011 COVERED THE TWO YEAR PERIOD JULY 1, 2008 THROUGH JUNE 30, 2010. SEVERAL FINDINGS FOR RECOVERY DUE FROM THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC., THE INSTITUTE OF CHARTER SCHOOL MANAGEMENT AND RESOURCES, INC., OFFICERS, BOARD MEMBERS, AND FORMER EMPLOYEES OF THE RELATED MANAGEMENT COMPANIES WERE IDENTIFIED IN THE AUDIT REPORT. THE OHIO AUDITOR OF STATE ALSO SUBSEQUENTLY ISSUED ITS REPORT DATED OCTOBER 26, 2012 ON THE REGULAR AUDIT OF THE JUNE 30, 2011 FINANCIAL STATEMENTS OF RICHARD ALLEN PREPARATORY ACADEMY. THIS REPORT ALSO CONTAINS VARIOUS NONCOMPLIANCE CITATIONS AND FINDINGS FOR RECOVERY. MANAGEMENT OF RICHARD ALLEN PREPARATORY ACADEMY AND THE AUDITOR OF THE STATE OF OHIO ARE STILL IN DISAGREEMENT REGARDING CERTAIN OF THE AFOREMENTIONED FINDINGS FOR RECOVERY. ON OCTOBER 12, 2012, THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC. (IMR), THE MANAGEMENT COMPANY OF THE SCHOOL, FILED A COMPLAINT FOR DECLARATORY JUDGMENT AND INJUNCTIVE RELIEF AGAINST THE SCHOOL, AS WELL AS THE AUDITOR OF STATE AND ATTORNEY GENERAL REGARDING THESE FINDINGS. BECAUSE THE AUDITOR AND ATTORNEY GENERAL ARE ACTING ON BEHALF OF THE SCHOOL STATUTORILY, THE SCHOOL IS AN INDISPENSABLE PARTY TO THE LITIGATION. THE OUTCOME OF THIS CASE COULD HAVE A MATERIAL IMPACT ON FINANCIAL STATEMENTS OF THE SCHOOL, THE EXACT AMOUNT OF WHICH IS NOT KNOWN AT THIS TIME. THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2012, USED TO PREPARE THE FORM 990, DO NOT INCLUDE ANY ADJUSTMENTS RESULTING FROM DISPUTED AUDIT FINDINGS INCLUDED IN THE OHIO AUDITOR OF STATE'S SPECIAL AUDIT OR THE REGULAR AUDIT OF THE SCHOOL'S JUNE 30, 2011 FINANCIAL STATEMENTS. THE IMPACT OF ANY RECOVERY RELATED TO THESE AUDIT FINDINGS CAN NOT YET BE REASONABLY DETERMINED. THE REPORTS ISSUED BY THE AUDITOR OF STATE CAN BE ACCESSED BY THE PUBLIC THROUGH THE AUDITOR OF STATE'S WEBSITE. INSTITUTE OF MANAGEMENT AND RESOURCES INC 368 S PATTERSON BLVD DAYTON OH 45402 562366373 MANAGEMENT COMPANY OH 501(C)(3) 509(A)(2) N/A 0 RICHARD ALLEN ACADEMY II INC 368 S PATTERSON BLVD DAYTON OH 45402 311712317 PROVIDES HOUSING AND EDUCATIONAL SERVICES TO KINDERGARTEN STUDENTS OH 501(C)(3) 170(B)(1)(A)(II) RICHARD ALLEN ACADEMY INC 0 RICHARD ALLEN ACADEMY III INC 368 S PATTERSON BLVD DAYTON OH 45402 311756854 CHARTER SCHOOL OH 501(C)(3) 170(B)(1)(A)(II) RICHARD ALLEN ACADEMY INC 0 RICHARD ALLEN ACADEMY I INC 368 S PATTERSON BLVD DAYTON OH 45402 311690658 CHARTER SCHOOL OH 501(C)(3) 170(B)(1)(A)(II) RICHARD ALLEN ACADEMY INC 0 INSTITUTE OF CHARTER SCHOOL MANAGEMENT AND RESOURCES INC 368 SOUTH PATTERSON BLVD DAYTON OH 45402 311653449 CONSULTING SERVICES OF THE CEO AND RENT OF THE FACILITIES OH S 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 INSTITUTE OF MANAGEMENT AND RESOURCES INC O 1969312 FAIR MARKET VALUE SCHEDULE R, PART II: THE INSTITUTE OF MANAGEMENT AND RESOURCES, INC. (IMR) WAS INITIALLY ESTABLISHED AS A NON PROFIT ORGANIZATION UNDER SECTION 501(C)(3). IMR FAILED TO FILE REQUIRED INFORMATION RETURNS FOR SEVERAL YEARS; AND THEREFORE, ITS TAX EXEMPT STATUS WAS REVOKED BY THE INTERNAL REVENUE SERVICE (IRS). MANAGEMENT HAS APPLIED TO THE IRS IN ORDER TO REINSTATE IMR'S TAX EXEMPT STATUS. WHEN MANAGEMENT RECEIVES A DETERMINATION REGARDING IMR'S TAX EXEMPT STATUS AND DETERMINES WHETHER ITS APPEAL FOR RETROACTIVE REINSTATEMENT HAS BEEN APPROVED OR DENIED, THE APPROPRIATE TAX FILINGS WILL BE MADE WITH THE IRS FOR THE DELINQUENT TAX YEARS. THE IMPACT ON RICHARD ALLEN PREPARATORY ACADEMY INC. OF THE REVOCATION OF IMR'S TAX STATUS CAN NOT YET BE REASONABLY DETERMINED.