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        <BookValue>2663794</BookValue>
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        <Depreciation>147695</Depreciation>
        <BookValue>281081</BookValue>
      </Equipment>
      <TotalOfBookValueLandBuildings>2944875</TotalOfBookValueLandBuildings>
      <OtherLiabilities>
        <Description>DUE TO RELATED ENTITY</Description>
        <Amount>796531</Amount>
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      <TotalOfAmounts>796531</TotalOfAmounts>
      <TotalRevenue>6113648</TotalRevenue>
      <TotalExpenses>5912016</TotalExpenses>
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        <ReturnReference>SCHEDULE E, PART I, LINE 3</ReturnReference>
        <Explanation>ALL MATERIALS FOR SOLICITING STUDENT REGISTRATION INCLUDE THE STATEMENT THAT MONARCH ACADEMY (OR "CHARTER SCHOOLS," DEPENDING ON THE PUBLICATION) IS (ARE) OPEN TO ALL STUDENTS IN ANNE ARUNDEL COUNTY. THOSE MATERIALS INCLUDE A GENERAL BROCHURE, A MONARCH FACTSHEET THAT IS PART OF A REGISTRATION PACKET, A NEWSLETTER, A PARENT FLIER AND A SOLICITATION POSTCARD THAT WAS MAILED TO HOUSEHOLDS OF POTENTIAL STUDENTS. THE MONARCH ACADEMY WEBSITE ALSO INCLUDES A FREQUENTLY-ASKED QUESTIONS SECTION THAT DESCRIBES A CHARTER SCHOOL AS BEING OPEN TO ALL STUDENTS, AND THE ADMISSIONS SECTION STATES "THE SCHOOL IS PUBLICLY-FUNDED AND OPEN TO ALL STUDENTS."</Explanation>
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      <Form990ScheduleEPartII>
        <Identifier>EXPLANATION OF DOCUMENT RETENTION</Identifier>
        <ReturnReference>SCHEDULE E, PART I, LINE 4</ReturnReference>
        <Explanation>THE ORGANIZATION DOES NOT PROVIDE SCHOLARSHIPS OR FINANCIAL ASSISTANCE - IT IS A PUBLIC CHARTER SCHOOL.</Explanation>
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      <Form990ScheduleEPartII>
        <Identifier>EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE</Identifier>
        <ReturnReference>SCHEDULE E, PART I, LINE 6</ReturnReference>
        <Explanation>THE ACADEMY HAS RECEIVED FUNDS FROM THE MARYLAND STATE DEPARTMENT OF EDUCATION.</Explanation>
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      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 3</ReturnReference>
        <Explanation>THE CHILDREN'S GUILD, INC. HAS ASSISTED THE ACADEMY IN ESTABLISHING THE ACADEMY'S PROGRAM, OBTAINING FINANCING AND PEFORMING MANAGEMENT AND GENERAL ACTIVITIES ON THE ACADEMY'S BEHALF.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE FORM 990 IS PREPARED BY AN INDEPENDENT CPA FIRM FROM INFORMATION PROVIDED BY OUR INDEPENDENT AUDITORS AND BY FINANCE STAFF OF THE ACADEMY. THE 990 IS REVIEWED BY THE BOARD PRIOR TO FILING WITH THE IRS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>THE BOARD OF DIRECTORS REQUIRES BOARD MEMBERS TO SUBMIT AND SIGN AN ANNUAL CONFLICT DISCLOSURE STATEMENT. THE BOARD REVIEWS AND APPROVES ALL TRANSACTIONS WITH BOARD MEMBERS TO INSURE THE TRANSACTION IS REASONABLE, THAT A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST IS NOT POSSIBLE, AND THE TRANSACTION IS APPROPRIATE BASED ON THE BUSINESS AND FINANCIAL OBJECTIVE INVOLVED. ANY INVOLVED PARTY CANNOT VOTE OR PARTICIPATE IN THE REVIEW OR APPROVAL. EFFECTIVE MARCH 17, 2009, THE ORGANIZATION WILL NOT ENTER INTO ANY TRANSACTION OR ARRANGEMENT WITH ANY DIRECTOR OF THE ORGANIZATION, WHETHER OR NOT A CONFLICT OF INTEREST IS DETERMINED TO EXIST, EXCEPT FOR DIRECTORS WHO HAD APPROVED TRANSACTIONS OR ARRANGEMENTS AS OF THAT DATE. STAFF ARE REQUIRED IN THE PERSONNEL HANDBOOK DISTRIBUTED TO EVERY STAFF MEMBER TO COMPLY WITH THE CONFLICT OF INTEREST AND ETHICAL PRACTICES POLICIES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION'S GOVERNING DOCUMENTS ARE AVAILABLE FOR INSPECTION AT OUR ADMINISTRATIVE OFFICES AT 6802 MCCLEAN BOULEVARD IN BALTIMORE, MD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART XI, LINE 2C:</ReturnReference>
        <Explanation>THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.</Explanation>
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          <State>MD</State>
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          <City>BALTIMORE</City>
          <State>MD</State>
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      <Form990ScheduleRPartII>
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          <BusinessNameLine1>THE NATIONAL CHILDREN'S GUILD FUND INC</BusinessNameLine1>
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          <State>MD</State>
          <ZIPCode>21234</ZIPCode>
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        <MethodOfAmtDetermination>ACTUAL EXPENDITURES</MethodOfAmtDetermination>
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      <TransactionsRelatedOrgsTable>
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          <BusinessNameLine1>THE CHILDREN'S GUILD INC</BusinessNameLine1>
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        <MethodOfAmtDetermination>MANAGEMENT AGREEMENT</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>THE CHILDREN'S GUILD INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>R</TransactionType>
        <AmountInvolved>988278</AmountInvolved>
        <MethodOfAmtDetermination>BOOK VALUE LEASEHOLD IMPROVEMENTS</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <Form990ScheduleRPartVII>
        <Identifier>CONTINUATION OF PRIMARY ACTIVITY OF THE CHILDREN'S GUILD, INC.:</Identifier>
        <ReturnReference>SCHEDULE R, PART II, COLUMN (B)</ReturnReference>
        <Explanation>AND OUTPATIENT MENTAL HEALTH CLINICS.</Explanation>
      </Form990ScheduleRPartVII>
      <Form990ScheduleRPartVII>
        <ReturnReference>SCHEDULE R, PART V, LINE 2, CODE L</ReturnReference>
        <Explanation>THE CHILDREN'S GUILD, INC. HAS ASSISTED THE ACADEMY WITH DEVELOPING THE ACADEMY'S PROGRAM, OBTAINING FINANCING AND PEFORMING MANAGEMENT AND GENERAL ACTIVITIES ON THE ACADEMY'S BEHALF. THESE ACTIVITIES INCLUDE THE SHARING OF PERSONNEL, RESOURCES, FACILITIES AND THE REIMBURSEMENT OF EXPENSES LISTED ON SCHEDULE R, PART V, LINES 1L, 1M, 1N, AND 1O. THE EXPENDITURES FOR THESE ACTIVITIES ARE INCLUDED IN THE $317,168 IN FEES PAID PER THE MANAGEMENT AGREEMENT REPORTED ON LINE 2, CODE L.</Explanation>
      </Form990ScheduleRPartVII>
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