TY 2014 Form 990 Schedule O

efile Public Visual Render ObjectId: 201631339349302278 - Submission: 2016-05-12 TIN: 26-0035570

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
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Attach to Form 990 or 990-EZ.
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Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

NOVA CLASSICAL ACADEMY

Employer identification number

26-0035570

Return Reference	Explanation
FORM 990, PART VI, SECTION A, LINE 6	THE SCHOOL'S MEMBERS CONSIST OF PARENTS/LEGAL GUARDIANS OF ENROLLED STUDENTS, EMPLOYEES OF THE SCHOOL, AND COMMUNITY MEMBERS.
FORM 990, PART VI, SECTION A, LINE 7A	THE SCHOOL'S BOARD OF DIRECTORS ARE ELECTED BY THE PARENTS/LEGAL GUARDIANS OF ENROLLED STUDENTS AND EMPLOYEES OF THE SCHOOL.
FORM 990, PART VI, SECTION A, LINE 7B	CHANGES TO THE BYLAWS AFFECTING THE GOVERNANCE MODEL OF THE SCHOOL REQUIRE (1) MAJORITY APPROVAL OF A QUORUM OF THE BOARD, AND (2) APPROVAL BY THE LICENSED TEACHERS EMPLOYED BY THE SCHOOL, AND (3) APPROVAL BY THE SCHOOL'S AUTHORIZER, FRIENDS OF EDUCATION.
FORM 990, PART VI, SECTION A, LINE 8B	THE SCHOOL DOES NOT HAVE ANY COMMITTEES THAT HAVE BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY.
FORM 990, PART VI, SECTION B, LINE 11	A DRAFT OF THE FORM 990 WAS REVIEWED AND ALL FINANCIAL INFORMATION WAS VERIFIED BY THE ACADEMY'S BUSINESS MANAGER. THE EXECUTIVE DIRECTOR REVIEWS A DRAFT OF THE FORM 990 FOR ACCURACY OF NON-FINANCIAL INFORMATION. THE FORM 990 IS THEN REVIEWED AND APPROVED BY THE BOARD CHAIR AND BOARD TREASURER. COPIES WERE DISTRIBUTED TO ALL BOARD MEMBERS.
FORM 990, PART VI, SECTION B, LINE 12C	BOARD MEMBERS COMPLETE ANNUAL CONFLICT OF INTEREST STATEMENTS REQUIRING THEM TO IDENTIFY CONFLICTS. THESE CONFLICTS ARE SHARED WITH THE BOARD WHO SHALL DETERMINE IF A CONFLICT EXISTS. IF A CONFLICT OF INTEREST IS DETERMINED TO EXIST ON A PROPOSED BOARD ACTION, THE BOARD MEMBER REFRAINS FROM VOTING ON THAT ACTION. ALL PROCEEDINGS RELATED TO CONFLICTS OF INTEREST ARE DOCUMENTED IN THE MEETING MINUTES.
FORM 990, PART VI, SECTION B, LINE 15A	COMPENSATION OF INTERIM EXECUTIVE DIRECTOR (ED) WAS BASED ON PRIOR ED'S AGREEMENT, A SURVEY OF OTHER LARGE CHARTER SCHOOLS IN THE METRO AREA AND THE MACS COMPENSATION SURVEY. THE OFFER AGREEMENT WAS DRAFTED BY THE BOARD CHAIR AND REVIEWED BY THE FULL BOARD. BOARD APPROVAL WAS MADE AT THE APRIL 2014 MEETING. COMPENSATION FOR THE PERMANENT EXECUTIVE DIRECTOR WHO BEGAN EMPLOYMENT ON JUNE 1, 2015 WAS DETERMINED BY AN AD HOC SEARCH COMMITTEE, BASED ON THE SAME INFORMATION AND ALSO TAKING INTO ACCOUNT THE NEW ED WOULD NOT BE ENROLLING IN THE SCHOOL'S BENEFIT PLANS. THE OFFER AGREEMENT WAS DRAFTED BY THE COMMITTEE AND REVIEWED BY THE FULL BOARD. BOARD APPROVAL WAS MADE AT JANUARY 30, 2015 MEETING. COMPENSATION FOR ALL ADMINISTRATIVE POSITIONS IS DETERMINED BY THE EXECUTIVE DIRECTOR, WITHIN THE BOARD APPROVED BUDGET. THIS PROCESS WAS LAST COMPLETED IN 2015-2016.
FORM 990, PART VI, SECTION C, LINE 19	GOVERNING DOCUMENTS AND POLICES ARE AVAILABLE TO THE PUBLIC ON NOVA'S WEBSITE, SUMMARY BUDGETED AND ACTUAL REVENUE AND EXPENSE INFORMATION IS ON THE WEBSITE. AUDITED FINANCIALS AND DOCUMENTS LISTED ABOVE ARE AVAILABLE UPON REQUEST. SUMMARY FINANCIAL INFORMATION IS ALSO AVAILABLE ON THE MN DEPT OF ED WEBSITE.
FORM 990, PART XI, LINE 9:	CHANGE IN PENSION LIABILITY 19,985.
FORM 990, PART XII, LINE 1, EXPLANATION FOR OTHER METHOD OF ACCOUNTING:	THE SCHOOL FOLLOWS A MODIFIED ACCRUAL METHOD OF ACCOUNTING AS PRESCRIBED BY THE MINNESOTA DEPARTMENT OF EDUCATION. THE SCHOOL-WIDE FINANCIAL STATEMENTS ARE REPORTED USING THE ECONOMIC RESOURCES MEASUREMENT FOCUS AND THE ACCRUAL BASIS OF ACCOUNTING. GRANTS AND SIMILAR ITEMS ARE RECOGNIZED WHEN ALL ELIGIBILITY REQUIREMENTS IMPOSED BY THE PROVIDER HAVE BEEN MET.
FORM 990, PART XI, LINE 8, PRIOR PERIOD ADJUSTMENT:	DURING FISCAL YEAR ENDED JUNE 30, 2015, THE SCHOOL ADOPTED GASB STATEMENT NO. 68, ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS, AND THE RELATED GASB STATEMENT NO. 71, PENSION TRANSITION FOR CONTRIBUTIONS MADE SUBSEQUENT TO THE MEASUREMENT DATE - AN AMENDMENT OF GASB STATEMENT NO. 68. AS A RESULT, THE SCHOOL'S NET POSITION AS OF JUNE 30, 2014 HAS BEEN RESTATED TO REFLECT THE RECOGNITION OF THE SCHOOL'S PROPORTIONATE SHARE OF THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF MINNESOTA GENERAL EMPLOYEES' RETIREMENT FUND'S NET PENSION LIABILITY AS WELL AS THEIR PORTION OF THE TEACHER'S RETIREMENT ASSOCIATION'S COORDINATED AND BASIC PLAN NET PENSION LIABILITY.

Return Reference

Explanation

FORM 990, PART VI, SECTION A, LINE 6

THE SCHOOL'S MEMBERS CONSIST OF PARENTS/LEGAL GUARDIANS OF ENROLLED STUDENTS, EMPLOYEES OF THE SCHOOL, AND COMMUNITY MEMBERS.

FORM 990, PART VI, SECTION A, LINE 7A

THE SCHOOL'S BOARD OF DIRECTORS ARE ELECTED BY THE PARENTS/LEGAL GUARDIANS OF ENROLLED STUDENTS AND EMPLOYEES OF THE SCHOOL.

FORM 990, PART VI, SECTION A, LINE 7B

CHANGES TO THE BYLAWS AFFECTING THE GOVERNANCE MODEL OF THE SCHOOL REQUIRE (1) MAJORITY APPROVAL OF A QUORUM OF THE BOARD, AND (2) APPROVAL BY THE LICENSED TEACHERS EMPLOYED BY THE SCHOOL, AND (3) APPROVAL BY THE SCHOOL'S AUTHORIZER, FRIENDS OF EDUCATION.

FORM 990, PART VI, SECTION A, LINE 8B

THE SCHOOL DOES NOT HAVE ANY COMMITTEES THAT HAVE BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY.

FORM 990, PART VI, SECTION B, LINE 11

A DRAFT OF THE FORM 990 WAS REVIEWED AND ALL FINANCIAL INFORMATION WAS VERIFIED BY THE ACADEMY'S BUSINESS MANAGER. THE EXECUTIVE DIRECTOR REVIEWS A DRAFT OF THE FORM 990 FOR ACCURACY OF NON-FINANCIAL INFORMATION. THE FORM 990 IS THEN REVIEWED AND APPROVED BY THE BOARD CHAIR AND BOARD TREASURER. COPIES WERE DISTRIBUTED TO ALL BOARD MEMBERS.

FORM 990, PART VI, SECTION B, LINE 12C

BOARD MEMBERS COMPLETE ANNUAL CONFLICT OF INTEREST STATEMENTS REQUIRING THEM TO IDENTIFY CONFLICTS. THESE CONFLICTS ARE SHARED WITH THE BOARD WHO SHALL DETERMINE IF A CONFLICT EXISTS. IF A CONFLICT OF INTEREST IS DETERMINED TO EXIST ON A PROPOSED BOARD ACTION, THE BOARD MEMBER REFRAINS FROM VOTING ON THAT ACTION. ALL PROCEEDINGS RELATED TO CONFLICTS OF INTEREST ARE DOCUMENTED IN THE MEETING MINUTES.

FORM 990, PART VI, SECTION B, LINE 15A

COMPENSATION OF INTERIM EXECUTIVE DIRECTOR (ED) WAS BASED ON PRIOR ED'S AGREEMENT, A SURVEY OF OTHER LARGE CHARTER SCHOOLS IN THE METRO AREA AND THE MACS COMPENSATION SURVEY. THE OFFER AGREEMENT WAS DRAFTED BY THE BOARD CHAIR AND REVIEWED BY THE FULL BOARD. BOARD APPROVAL WAS MADE AT THE APRIL 2014 MEETING. COMPENSATION FOR THE PERMANENT EXECUTIVE DIRECTOR WHO BEGAN EMPLOYMENT ON JUNE 1, 2015 WAS DETERMINED BY AN AD HOC SEARCH COMMITTEE, BASED ON THE SAME INFORMATION AND ALSO TAKING INTO ACCOUNT THE NEW ED WOULD NOT BE ENROLLING IN THE SCHOOL'S BENEFIT PLANS. THE OFFER AGREEMENT WAS DRAFTED BY THE COMMITTEE AND REVIEWED BY THE FULL BOARD. BOARD APPROVAL WAS MADE AT JANUARY 30, 2015 MEETING. COMPENSATION FOR ALL ADMINISTRATIVE POSITIONS IS DETERMINED BY THE EXECUTIVE DIRECTOR, WITHIN THE BOARD APPROVED BUDGET. THIS PROCESS WAS LAST COMPLETED IN 2015-2016.

FORM 990, PART VI, SECTION C, LINE 19

GOVERNING DOCUMENTS AND POLICES ARE AVAILABLE TO THE PUBLIC ON NOVA'S WEBSITE, SUMMARY BUDGETED AND ACTUAL REVENUE AND EXPENSE INFORMATION IS ON THE WEBSITE. AUDITED FINANCIALS AND DOCUMENTS LISTED ABOVE ARE AVAILABLE UPON REQUEST. SUMMARY FINANCIAL INFORMATION IS ALSO AVAILABLE ON THE MN DEPT OF ED WEBSITE.

FORM 990, PART XI, LINE 9:

CHANGE IN PENSION LIABILITY 19,985.

FORM 990, PART XII, LINE 1, EXPLANATION FOR OTHER METHOD OF ACCOUNTING:

THE SCHOOL FOLLOWS A MODIFIED ACCRUAL METHOD OF ACCOUNTING AS PRESCRIBED BY THE MINNESOTA DEPARTMENT OF EDUCATION. THE SCHOOL-WIDE FINANCIAL STATEMENTS ARE REPORTED USING THE ECONOMIC RESOURCES MEASUREMENT FOCUS AND THE ACCRUAL BASIS OF ACCOUNTING. GRANTS AND SIMILAR ITEMS ARE RECOGNIZED WHEN ALL ELIGIBILITY REQUIREMENTS IMPOSED BY THE PROVIDER HAVE BEEN MET.

FORM 990, PART XI, LINE 8, PRIOR PERIOD ADJUSTMENT:

DURING FISCAL YEAR ENDED JUNE 30, 2015, THE SCHOOL ADOPTED GASB STATEMENT NO. 68, ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS, AND THE RELATED GASB STATEMENT NO. 71, PENSION TRANSITION FOR CONTRIBUTIONS MADE SUBSEQUENT TO THE MEASUREMENT DATE - AN AMENDMENT OF GASB STATEMENT NO. 68. AS A RESULT, THE SCHOOL'S NET POSITION AS OF JUNE 30, 2014 HAS BEEN RESTATED TO REFLECT THE RECOGNITION OF THE SCHOOL'S PROPORTIONATE SHARE OF THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION OF MINNESOTA GENERAL EMPLOYEES' RETIREMENT FUND'S NET PENSION LIABILITY AS WELL AS THEIR PORTION OF THE TEACHER'S RETIREMENT ASSOCIATION'S COORDINATED AND BASIC PLAN NET PENSION LIABILITY.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2014

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