2012-08-15T11:15:28-05:00 2011-12-31 042571780 ALEXANDER ARONSON FINNING & CO PC 21 EAST MAIN STREET WESTBORO MA 01581 990 2011-01-01 201978102 EDUCATION RESOURCE STRATEGIES INC EDUC 6176078000 1 BROOK STREET WATERTOWN MA 02472 KAREN H MILES 6176078000 2012-06-26 1 THOMAS WASHBURN CPA P00537319 5083669100 2011 2016-02-24 21:20:13Z KAREN H MILES 1 BROOK STREET WATERTOWN MA 02472 3387691 0 X WWW.ERSTRATEGIES.ORG X 2005 MA ERS IS A NON-PROFIT ORGANIZATION DEDICATED TO TRANSFORM URBAN SCHOOL SYSTEMS BY HELPING LEADERS STRATEGICALLY USE RESOURCES TO DRAMATICALLY IMPROVE STUDENT LEARNING 5 5 34 0 0 0 4199208 2050000 1411004 1332880 9791 4811 0 0 5620003 3387691 0 0 0 0 2016139 2416352 0 0 75240 1907380 1572726 3923519 3989078 1696484 -601387 7112716 6415251 317138 221060 6795578 6194191 ERS IS A NON-PROFIT ORGANIZATION DEDICATED TO TRANSFORM URBAN SCHOOL SYSTEMS BY HELPING LEADERS STRATEGICALLY USE RESOURCES TO DRAMATICALLY IMPROVE STUDENT LEARNING 0 0 1748178 1260057 CONSULTINGERS' GOAL IS TO CHANGE THE WAY TIME, PEOPLE AND MONEY ARE USED IN URBAN EDUCATION SO THAT ALL STUDENTS RECEIVE THE SUPPORT THEY NEED TO SUCCEED. WE WORK WITH LARGE URBAN SCHOOL SYSTEMS TO TRANSFORM THEIR RESOURCE USE TO DRAMATICALLY IMPROVE STUDENT LEARNING. ERS HAS DEVELOPED A VISION FOR HOW SCHOOLS CAN STRATEGICALLY MANAGE THEIR RESOURCES TO SUPPORT STUDENTS, AND HOW SCHOOL SYSTEMS CAN ORGANIZE TO SUPPORT SCHOOLS IN THESE EFFORTS. WE WORK HAND-IN-HAND WITH DISTRICTS TO IMPLEMENT SOLUTIONS THAT ENABLE SCHOOL SYSTEMS TO REALIZE THIS TRANSFORMATION. IN ADDITION, WE HAVE BEGUN WORKING WITH STATES AROUND HOW THEY CAN SUPPORT THEIR DISTRICTS IN TRANSFORMATION. 814638 1427 KNOWLEDGE AND RESEARCHERS IS THE ONLY ORGANIZATION WITH MORE THAN 10 YEARS' EXPERIENCE WORKING WITH THE LARGEST URBAN SCHOOL SYSTEMS IN THE COUNTRY IN THE AREA OF STRATEGIC RESOURCE ALLOCATION. WE HAVE WORKED WITH MORE THAN 20 SCHOOL SYSTEMS NATIONWIDE TO INTRODUCE INNOVATIVE AND EFFECTIVE SOLUTIONS. ERS IS COMMITTED TO DISSEMINATING THE KNOWLEDGE GAINED FROM OUR EXPERIENCE AND RESEARCH BY PROVIDING INFORMATION DIRECTLY TO DISTRICT LEADERS, PARTNERING WITH NATIONAL ORGANIZATIONS TO GET THE WORD OUT, AND CONVENING THOUGHT LEADERS AND PRACTITIONERS. 907321 71396 TOOLS AND TRAININGERS HAS DEVELOPED A COLLECTION OF RESOURCES AND TOOLS TO AID DISTRICTS AND SCHOOLS TO IDENTIFY AREAS OF UNINTENTIONAL 'MISALIGNMENT', WHERE SPENDING PATTERNS DO NOT ACTUALLY SUPPORT STRATEGIC GOALS THAT WILL LEAD TO HIGH PERFORMING SCHOOLS. VARIOUS TOOLS ARE AVAILABLE TO SUPPORT DISTRICT LEADERS IN BOTH GETTING A QUICK OVERVIEW OF RESOURCE ALLOCATION CHALLENGES AND IN CONDUCTING IN-DEPTH ANALYSIS USING ACTUAL DISTRICT AND SCHOOL-LEVEL DATA. SOME ARE AVAILABLE TO DOWNLOAD FROM THE ERS WEBSITE AT NO COST. 3470137 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 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 0 1 30 0 1 34 1 0 0 0 0 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 1 1 1 1 0 1 1 0 0 MA X X KAREN H MILES 6176078000 1 BROOK STREET WATERTOWN MA 02472 ELLEN GUINEY 1.00 X 0 0 0 MARCIA BLENKO 1.00 X 0 0 0 WILLIS HAWLEY 1.00 X 0 0 0 URI TREISMAN 1.00 X 0 0 0 PETER GORMAN 1.00 X 0 0 0 KAREN H MILES 40.00 X 117000 0 6000 KAREN BAROODY 16.00 X 61400 0 3250 STEPHEN FRANK 40.00 X 163600 0 8250 REGIS SHIELDS 40.00 X 172398 0 11837 JONATHAN TRAVERS 40.00 X 158742 0 14233 DON HOVEY 40.00 X 166941 0 11982 KRISTAN SINGLETON 40.00 X 130000 0 6500 970081 0 62052 6 0 1 0 VERNDALE CORPORATION 320 CONGRESS STREET BOSTON MA 02210 SOFTWARE DEVELOPMENT 507902 GREEN RIVER DATA ANALYSIS LLC 167 MAIN STREET SUITE 103 BRATTLEBORO VT 05301 SOFTWARE DEVELOPMENT 202696 2 2050000 2050000 DISTRICT REVENUE 611710 1111601 1111601 OTHER EARNED REVENU 611710 163604 163604 TRAVEL REIMBURSEMENT 611710 57675 57675 1332880 4811 4811 3387691 1332880 0 4811 187650 149049 23309 15292 1905766 1616821 242243 46702 73983 64409 8187 1387 94662 75777 17256 1629 154291 133282 18143 2866 2530 2530 21745 21745 451751 426897 24653 201 140231 119412 18332 2487 130094 113262 14396 2436 233287 222861 8972 1454 9105 3752 5315 38 497864 490992 6151 721 8476 8476 PRINTING AND POSTAGE 55961 51826 4125 10 PROFESSIONAL DEVELOPMEN 12004 392 11605 7 BOOKS AND SUBSCRIPTIONS 6861 1405 5446 10 MISCELLANEOUS 1470 1470 1347 1347 3989078 3470137 443701 75240 1632878 1592115 3406995 2638705 415153 316073 22437 28301 2829605 1001548 1623253 1828057 12000 12000 7112716 6415251 317138 221060 317138 221060 X 1283830 1584011 5511748 4610180 6795578 6194191 7112716 6415251 -601387 0 X 0 1 0 X 0 X 1861951 865513 3523192 4199208 2057283 12507147 1861951 865513 3523192 4199208 2057283 12507147 8411111 4096036 30908 24867 22640 9791 45034 133240 12640387 5889670 0.32400 0.29950 X EDUCATION RESOURCE STRATEGIES PUBLIC SUPPORT IS EXTRAORDINARILY CLOSE (LESS THAN ONE FULL PERCENTAGE POINT BELOW) TO MEETING THE 1/3 PUBLIC SUPPORT TEST FOR DONOR SPONSORED CHARITIES. WE WILL PROVIDE FACTS AND CIRCUMSTANCES JUSTIFICATION BELOW:A. ATTRACTION OF PUBLIC SUPPORT: AS A CONSULTING FIRM ADVISING LARGE URBAN PUBLIC SCHOOL SYSTEMS, WE MAINTAIN ONGOING CLIENT AND FUNDER DEVELOPMENT EFFORTS TO INITIATE RELATIONSHIPS AND BUILD NEW CONSULTING BUSINESS WITH KEY TARGET DISTRICTS AMONG THE TOP 150 LARGEST URBAN PUBLIC SCHOOL DISTRICTS, AND TO ATTRACT NEW SOURCES OF FUNDING FOR DOING THAT WORK OR TO SUPPORT OUR INFRASTRUCTURE GROWTH AND OUR COMMUNICATION/DISSEMINATION MISSION. OUR POLICY IN TAKING ON GRANT FUNDED DISTRICT WORK IS THAT THE DISTRICT SUPERINTENDENT IS THE ULTIMATE CLIENT FOR OUR WORK AND THAT OUR FOCUS IS DEFINED BY DISTRICT PRIORITIES. IN ADDITION, WE ACTIVELY WORK TO MAKE LOCAL FUNDING A COMPONENT OF OUR ENGAGEMENTS, EVEN WHEN LARGE PRIVATE FOUNDATIONS MAY BE CONTRIBUTING TO THE WORK. FOR EXAMPLE, OUR INITIAL WORK WITH PRINCE GEORGES COUNTY (MD) AND DENVER (CO) WAS EACH FUNDED 50% BY A GRANT FROM THE BILL AND MELINDA GATES FOUNDATION (GATES) AND 50% FROM DISTRICT OR LOCAL FUNDING. IN ADDITION, WE HAVE FUNDING SUPPORT FROM THE NOYCE FOUNDATION (NOYCE) IN THE FORM OF A CHALLENGE GRANT (SUPPORTING 50% OF AN ENGAGEMENT) FOR DISTRICT STRATEGIC RESOURCE MAPPING WORK THAT ADDS HIGHER PERFORMING DISTRICT EXAMPLES TO OUR CROSS DISTRICT COMPARATIVE DATABASE. OUR FUNDER DEVELOPMENT EFFORTS INCLUDE WORKING WITH DISTRICTS WHERE NEEDED TO HELP DEVELOP ADDITIONAL LOCAL GRANT SOURCES FOR OUR WORK (TYPICALLY LOCAL EDUCATION FUNDS SUPPORTING THE DISTRICTS WE WORK WITH), AS WELL AS ACTIVELY PURSUING A BROADER MIX OF NATIONAL FUNDERS WHO HAVE AN INTEREST IN FUNDING EDUCATION REFORM (E.G. MICHAEL AND SUSAN DELL FOUNDATION, WALLACE FOUNDATION, WALTON FOUNDATION).B. MULTI FACTOR ANALYSIS:1. PERCENTAGE OF FINANCIAL SUPPORT: OUR PUBLIC SUPPORT PERCENTAGE IS 32.4%, LESS THAN 1 PERCENTAGE POINT BELOW THE 1/3 TEST.2. SOURCES OF SUPPORT: OUR LARGEST INDIVIDUAL MULTI-YEAR SUPPORT COMES FROM A PORTFOLIO OF FOUR LARGE PRIVATE FOUNDATIONS, NONE OF WHICH SIGNIFICANTLY OVERSHADOWS THE OTHERS IN FUNDING: GATES AND NOYCE IN THE $3MM RANGE, THE CARNEGIE CORPORATION OF NEW YORK AT $1.9MM AND THE WILLIAM AND FLORA HEWLETT FOUNDATION AT $1.3MM. THE REMAINDER OF OUR OPERATING BUDGET IS FUNDED THROUGH SCHOOL DISTRICTS THEMSELVES, LOCAL EDUCATION FUNDS OR OTHER PUBLIC CHARITIES, OR SMALLER PRIVATE FOUNDATIONS.3. REPRESENTATIVE GOVERNING BODY: OUR BOARD IS MADE UP OF INDIVIDUALS WITH PARTICULAR KNOWLEDGE OR SKILL RELATING TO EITHER THE FIELD OF PUBLIC EDUCATION OR IN CONSULTING AND HELPING LARGE ORGANIZATIONS TRANSFORM:I. KAREN HAWLEY MILES, PRESIDENTII. MARCIA BLENKO, PARTNER, BAIN & COMPANYIII. ELLEN GUINEY, EXECUTIVE DIRECTOR, BOSTON PLAN FOR EXCELLENCEIV. WILLIS HAWLEY, PROFESSOR EMERITUS, UNIVERSITY OF MARYLANDV. URI TREISMAN, PROFESSOR OF MATHEMATICS, UNIVERSITY OF TEXAS AT AUSTIN & EXECUTIVE DIRECTOR, CHARLES A. DANA CENTERVI. IN ADDITION, OUR BOARD HAS VOTED TO ADD PETER GORMAN, FORMER SUPERINTENDENT OF CHARLOTTE-MECKLENBERG SCHOOLS, AS A FIFTH OUTSIDE DIRECTOR STARTING IN FISCAL 20124. AVAILABILITY OF PUBLIC FACILITIES OR SERVICES: A SIGNIFICANT PART OF OUR CORPORATE MISSION IS TO DISSEMINATE THE LEARNING WE GENERATE FROM OUR CONSULTING WORK TO BENEFIT THE LARGER PUBLIC EDUCATION FIELD. TYPICALLY THE LARGE FUNDERS THAT PROVIDE SIGNIFICANT FUNDING TO OUR WORK MAKE BROAD DISSEMINATION A CONDITION OF THE FUNDING. MOST OF OUR WORK IS PUBLICLY AVAILABLE IN ONE FORM OR ANOTHER, MAINLY VIA OUR WEBSITE (WWW.ERSTRATEGIES.ORG). IN ADDITION, OVER THE LAST TWO YEARS WE HAVE CONVENED GROUPS OF EXPERTS AND PRACTITIONERS TO FOCUS ON SOLVING DIFFICULT CHALLENGES OF EQUITABLE FUNDING AND SCHOOL TURNAROUND AT SCALE. FINALLY, OUR CONSULTING WORK IS DONE UNDER CONTRACT FOR WHICH WE ARE ACCOUNTABLE TO THE DELIVERABLES SPECIFIED IN THE CONTRACT. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 42453 18811 23642 187612 87827 99785 2599540 894910 1704630 1828057 3387691 3989078 -601387 -601387 3387691 0 3387691 0 3387691 3989078 0 3989078 0 3989078 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION FOLLOWS U.S. GAAP STANDARDS FOR ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH REQUIRES THE ORGANIZATION TO REPORT ANY UNCERTAIN TAX POSITIONS AND TO ADJUST ITS COMBINING FINANCIAL STATEMENTS FOR THE IMPACT THEREOF. AS OF DECEMBER 31, 2011, THE ORGANIZATION DETERMINED THAT IT HAD NO MATERIAL UNRECOGNIZED TAX BENEFITS TO REPORT. THE ORGANIZATION DOES NOT EXPECT THAT THE AMOUNTS OF UNRECOGNIZED TAX BENEFITS WILL CHANGE SIGNIFICANTLY WITHIN THE NEXT TWELVE MONTHS. THE ORGANIZATION FILES INFORMATIONAL RETURNS IN THE UNITED STATES FEDERAL AND MASSACHUSETTS STATE JURISDICTIONS. THE ORGANIZATION IS NO LONGER SUBJECT TO EXAMINATIONS FOR MASSACHUSETTS STATE OR FOR UNITED STATES FEDERAL RETURNS BEFORE 2008. X 0 0 0 0 0 0 0 0 0 STEPHEN FRANK 163600 0 0 0 0 0 8250 0 0 0 171850 0 0 0 REGIS SHIELDS 172398 0 0 0 0 0 8750 0 3087 0 184235 0 0 0 JONATHAN TRAVERS 158742 0 0 0 0 0 8250 0 5983 0 172975 0 0 0 DON HOVEY 166941 0 0 0 0 0 6000 0 5982 0 178923 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 THE EXECUTIVE DIRECTOR'S FATHER IS A MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S BOARD OF DIRECTORS REVIEWS THE 990 COMPARING IT TO THE FINANCIAL STATEMENTS AND THE ORGANIZATION'S GENERAL INFORMATION BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES AND BOARD MEMBERS ARE REQUIRED TO DISCLOSE ANY CONFLICTS OF INTEREST ON AN ANNUAL BASIS FORM 990, PART VI, SECTION B, LINE 15A THE EXECUTIVE DIRECTOR'S COMPENSATION IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. UNRESTRICTED & TEMPORARILY RESTRICTED IN THE STATEMENT OF ACTIVITIES 990 PART I, LINE 19 ERS CATEGORIZES ACTIVITY INTO UNRESTRICTED OR TEMPORARILY RESTRICTED FOR REPORTING IN ITS ANNUAL AUDITED FINANCIAL STATEMENTS. OPERATING REVENUE AND EXPENSES TEND TO BE UNRESTRICTED, WHILE TEMPORARILY RESTRICTED IS USED TO ACCOUNT FOR PLEDGES FOR GRANTS AND ASSOCIATED INTEREST, AND TO TRACK THE AMOUNTS THAT ARE RELEASED FROM RESTRICTION EACH YEAR. WHILE PRESENTED SEPARATELY IN OUR INTERNAL FINANCIAL STATEMENTS, THESE FUNDS ARE COMBINED IN THE 990 SO ONLY THE TOTAL IS REPRESENTED. THE AMOUNT OF FOUNDATION PLEDGES ERS RECEIVES VARIES FROM YEAR TO YEAR, ESPECIALLY WHEN MULTI-YEAR PLEDGES ARE INVOLVED, AND IS NOT DIRECTLY RELATED TO ERS OPERATING REVENUE. THE PLEDGES ARE RECOGNIZED AS TEMPORARILY RESTRICTED REVENUE IN THE YEAR THE PLEDGE IS RECEIVED, AND THEN RELEASED FROM RESTRICTION IN THE YEAR THE FUNDS ARE EXPENDED. IN 2010 ERS RECEIVED SUBSTANTIAL MULTI-YEAR FOUNDATION PLEDGES SO THE NET ADDITION TO TEMPORARILY RESTRICTED ASSETS WAS $1.4M OUT OF A TOTAL ADDITION OF $1.7M. IN 2011 ERS USED MANY OF THE FUNDS THAT WERE COMMITTED IN 2010 AND DID NOT RECEIVE AS MUCH NEW MONEY, POSTING A REDUCTION OF $1M IN TEMPORARILY RESTRICTED ASSETS. THAT WAS OFFSET BY AN ADDITION OF OPERATING ASSETS OF $400K FOR A NET ASSET REDUCTION OF $600K (PART XI, LINE 3, REVENUE LESS EXPENSES). OPERATING REVENUE FOR 2011 WAS $4.4M AND OPERATING EXPENSES WERE $4M TO NET THE $400K SURPLUS.