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    <Timestamp>2012-03-01T13:37:16-08:00</Timestamp>
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        <BusinessNameLine1>The Varnett Schools Inc</BusinessNameLine1>
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        <EOY>16655484</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>12697330</BOY>
        <EOY>17338706</EOY>
      </TotalLiabNetAssetsFundBalances>
      <ReconcilationRevenueExpenses>4612416</ReconcilationRevenueExpenses>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>false</AccountantCompileOrReview>
      <FSAudited>true</FSAudited>
      <AuditCommittee>false</AuditCommittee>
      <FinancialStatementSeparate>X</FinancialStatementSeparate>
      <FederalGrantAuditRequired>false</FederalGrantAuditRequired>
      <FederalGrantAuditPerformed>false</FederalGrantAuditPerformed>
    </IRS990>
    <IRS990ScheduleA documentId="IRS990ScheduleA" softwareId="10000105" softwareVersion="2010v3.2">
      <School170b1Aii>X</School170b1Aii>
    </IRS990ScheduleA>
    <IRS990ScheduleD documentId="IRS990ScheduleD" softwareId="10000105" softwareVersion="2010v3.2">
      <Land>
        <OtherCostOrOtherBasis>93857</OtherCostOrOtherBasis>
        <BookValue>93857</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>2211487</OtherCostOrOtherBasis>
        <Depreciation>422784</Depreciation>
        <BookValue>1788703</BookValue>
      </Buildings>
      <LeaseholdImprovements>
        <OtherCostOrOtherBasis>809965</OtherCostOrOtherBasis>
        <Depreciation>196891</Depreciation>
        <BookValue>613074</BookValue>
      </LeaseholdImprovements>
      <Equipment>
        <OtherCostOrOtherBasis>959851</OtherCostOrOtherBasis>
        <Depreciation>219605</Depreciation>
        <BookValue>740246</BookValue>
      </Equipment>
      <OtherLandBuildings>
        <OtherCostOrOtherBasis>821763</OtherCostOrOtherBasis>
        <Depreciation>734900</Depreciation>
        <BookValue>86863</BookValue>
      </OtherLandBuildings>
      <TotalOfBookValueLandBuildings>3322743</TotalOfBookValueLandBuildings>
      <OtherLiabilities>
        <Description>Wages Payable</Description>
        <Amount>353598</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Payroll Deductions Payable</Description>
        <Amount>172435</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Payable to M Cluff</Description>
        <Amount>80</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Due to Government</Description>
        <Amount>39485</Amount>
      </OtherLiabilities>
      <TotalOfAmounts>565598</TotalOfAmounts>
      <TotalRevenue>16716869</TotalRevenue>
      <TotalExpenses>12104453</TotalExpenses>
      <ExcessOrDeficitForYear>4612416</ExcessOrDeficitForYear>
      <ExcessOrDeficitPerFS>4612416</ExcessOrDeficitPerFS>
      <TotRevenueEtcAuditedFinclStmt>16716869</TotRevenueEtcAuditedFinclStmt>
      <RevenueSubtotal>16716869</RevenueSubtotal>
      <TotalRevenuePerForm990>16716869</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>12104453</TotExpensesEtcAuditedFinclStmt>
      <ExpensesSubtotal>12104453</ExpensesSubtotal>
      <TotalExpensesPerForm990>12104453</TotalExpensesPerForm990>
    </IRS990ScheduleD>
    <IRS990ScheduleE documentId="IRS990ScheduleE" softwareId="10000105" softwareVersion="2010v3.2">
      <NondiscriminatoryPolicyStmt>true</NondiscriminatoryPolicyStmt>
      <PolicyStatementInBrochuresEtc>true</PolicyStatementInBrochuresEtc>
      <PolicyPublViaBroadcastMedia>true</PolicyPublViaBroadcastMedia>
      <MaintRacialCompositionRecords>true</MaintRacialCompositionRecords>
      <MaintScholarshipsRecords>true</MaintScholarshipsRecords>
      <MaintCopiesOfBrochuresEtc>true</MaintCopiesOfBrochuresEtc>
      <MaintCopiesOfAllSolicitations>true</MaintCopiesOfAllSolicitations>
      <DiscriminateRaceStudentsRights>false</DiscriminateRaceStudentsRights>
      <DiscriminateRaceAdmissPolicies>false</DiscriminateRaceAdmissPolicies>
      <DiscriminateRaceEmplmnFaculty>false</DiscriminateRaceEmplmnFaculty>
      <DiscriminateRaceScholarships>false</DiscriminateRaceScholarships>
      <DiscriminateRaceEducPolicies>false</DiscriminateRaceEducPolicies>
      <DiscriminateRaceUseOfFclts>false</DiscriminateRaceUseOfFclts>
      <DiscriminateRaceAthleticProg>false</DiscriminateRaceAthleticProg>
      <DiscriminateRaceOtherActy>false</DiscriminateRaceOtherActy>
      <GovernmentFinancialAidReceived>true</GovernmentFinancialAidReceived>
      <GovernmentFinancialAidRevoked>false</GovernmentFinancialAidRevoked>
      <ComplianceWithRevProc7550>true</ComplianceWithRevProc7550>
      <Form990ScheduleEPartII>
        <Identifier>Schedule E, Line 3 - Racially Nondiscriminatory Policy Publicized</Identifier>
        <Explanation>The nondiscriminatory policy is posted in the lobby of the school.</Explanation>
      </Form990ScheduleEPartII>
      <Form990ScheduleEPartII>
        <Identifier>Schedule E, Line 6 - Explanation of Aid or Assistance from Governmental Agency</Identifier>
        <Explanation>The school is a Texas Charter School and as such receives funds from the State of Texas as long as state requirements are met.</Explanation>
      </Form990ScheduleEPartII>
    </IRS990ScheduleE>
    <IRS990ScheduleJ documentId="IRS990ScheduleJ" softwareId="10000105" softwareVersion="2010v3.2">
      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
      <SeverancePayment>false</SeverancePayment>
      <SupplementalNonqualRetirePlan>false</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>false</EquityBasedCompArrangement>
      <CompBasedOnRevenueOfFilingOrg>false</CompBasedOnRevenueOfFilingOrg>
      <CompBasedOnRevenueRelatedOrgs>false</CompBasedOnRevenueRelatedOrgs>
      <CompBasedNetEarningsFilingOrg>false</CompBasedNetEarningsFilingOrg>
      <CompBasedNetEarningsRelateOrgs>false</CompBasedNetEarningsRelateOrgs>
      <AnyNonFixedPayments>false</AnyNonFixedPayments>
      <InitialContractException>false</InitialContractException>
      <RebuttablePresumptionProcedure>false</RebuttablePresumptionProcedure>
      <Form990ScheduleJPartII>
        <NamePerson>M Annette Cluff</NamePerson>
        <BaseCompensationFilingOrg>264520</BaseCompensationFilingOrg>
        <TotalCompensationFilingOrg>264520</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>Alsie Cluff Jr</NamePerson>
        <BaseCompensationFilingOrg>237935</BaseCompensationFilingOrg>
        <TotalCompensationFilingOrg>237935</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
    </IRS990ScheduleJ>
    <IRS990ScheduleL documentId="IRS990ScheduleL" softwareId="10000105" softwareVersion="2010v3.2">
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NameBusiness>
            <BusinessNameLine1>Texas School Bus Company Inc</BusinessNameLine1>
          </NameBusiness>
        </NameOfInterestedPerson>
        <Relationship>More than 35%</Relationship>
        <DescriptionOfTransaction>Purchase School Bus Svc</DescriptionOfTransaction>
        <SharingOfRevenues>false</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NameBusiness>
            <BusinessNameLine1>The Varnett Academy Inc</BusinessNameLine1>
          </NameBusiness>
        </NameOfInterestedPerson>
        <Relationship>More than 35% owned</Relationship>
        <DescriptionOfTransaction>Rental of property</DescriptionOfTransaction>
        <SharingOfRevenues>false</SharingOfRevenues>
      </Form990ScheduleLPartIV>
    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="IRS990ScheduleO" softwareId="10000105" softwareVersion="2010v3.2">
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Line 19</Identifier>
        <ReturnReference>Form 990, Part VI, Line 19: Other Organization Documents Publicly Available</ReturnReference>
        <Explanation>No documents available to the public.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Line 12c</Identifier>
        <ReturnReference>Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts</ReturnReference>
        <Explanation>At the beginning of each school year the organization evaluates possible conflicts of interest.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Line 11</Identifier>
        <ReturnReference>Form 990, Part VI, Line 11: Form 990 Review Process</ReturnReference>
        <Explanation>The tax return is reviewed by the Superintendent, presented to the Board, reviewed by the Board, approved by the Board and then signed by the Superintendent.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
  </ReturnData>
</Return>