| FORM 990, PAGE 1, ITEM B |
AMENDED TAX RETURN TO UPDATE DISCLOSURE INFORMATION ON VARIOUS SCHEDULES TO ACCURATELY REFLECT INFORMATION AND RELATED AMOUNTS |
| FORM 990, PAGE 6, PART VI, LINE 4 |
ON MAY 1, 2020 THE BYLAWS OF IDEA PUBLIC SCHOOLS WERE CHANGED TO ELIMINATE THE EXECUTIVE CHAIRMAN ROLE AS A VOTING MEMBER OF THE BOARD |
| FORM 990, PAGE 6, PART VI, LINE 5 |
THE ORGANIZATION'S BOARD HAS INITIATED A THIRD-PARTY REVIEW IN SUMMER 2020 THAT REMAINS ONGOING INTO CERTAIN USES OF THE ORGANIZATION'S ASSETS OVER SEVERAL TAX YEARS, INCLUDING (1) USES OF THE ORGANIZATION'S ASSETS AND CONSISTENCY WITH ITS POLICIES FOR USES OF ITS ASSETS, INCLUDING COMPLIANCE WITH SUBSTANTIATION RULES, SECTION 501(C)(3) OF THE CODE, AND THE ORGANIZATION'S GOVERNING DOCUMENTS, (2) THE EXTENT TO WHICH ANY USES OF THE ORGANIZATION'S FUNDS AND ASSETS MAY HAVE CONSTITUTED INCOME TO OFFICERS AND EMPLOYEES,INCLUDING SOME DISQUALIFIED PERSONS, AND HOW THOSE TRANSACTIONS WERE REPORTED FOR TAX PURPOSES, (3) WHETHER ECONOMIC BENEFITS WERE INTENDED TO CONSTITUTE COMPENSATION TO THE RECIPIENTS THEREOF, INCLUDING SOME DISQUALIFIED PERSONS, (4) WHETHER TRANSACTIONS INITIALLY CHARACTERIZED AS ORDINARY AND NECESSARY BUSINESS EXPENSES ARE PROPERLY CHARACTERIZED AS TAXABLE INCOME TO OFFICERS OR EMPLOYEES OF THE ORGANIZATION, INCLUDING SOME DISQUALIFIED PERSONS, (5) WHETHER CERTAIN BUSINESS RELATIONSHIPS BETWEEN THE ORGANIZATION AND CERTAIN BUSINESS ENTITIES OWNED IN WHOLE OR IN PART BY EMPLOYEES, OFFICERS, AND FAMILY MEMBERS WERE CONDUCTED IN ACCORDANCE WITH LAW, POLICY, AND AT FAIR MARKET VALUE TERMS TO THE ORGANIZATION, AND (6) WHETHER PERFORMANCE OF SERVICES BY THE ORGANIZATION'S EMPLOYEES FOR EXECUTIVES AND FORMER EXECUTIVES OF THE ORGANIZATION WERE CONSISTENT WITH THE ORGANIZATION'S POLICIES AND LAW. IN CONNECTION WITH THIS ONGOING THIRD-PARTY REVIEW, THE ORGANIZATION HAS UNDERTAKEN REVIEWS OF, AND IN SOME CASES REVISIONS TO, ITS FINANCIAL, GOVERNANCE, ACCOUNTING, AND OTHER RELATED POLICIES. IN THE JUDGMENT OF MANAGEMENT OF THE ORGANIZATION, IT IS PROBABLE THE RESULT OF THIS THIRD-PARTY REVIEW WILL BE THAT A DIVERSION OF ASSETS HAS OCCURRED, AND THE AMOUNT MAY EQUAL OR EXCEED 250,000 IN THE AGGREGATE AND THEREFORE WOULD BE CONSIDERED SIGNIFICANT WITHIN THE MEANING OF THE INSTRUCTIONS FOR FORM 990 AS APPLIED TO THE ORGANIZATION. THE ORGANIZATION IS WORKING WITH ITS ADVISORS, AS APPROPRIATE, IN CONDUCTING ITS ONGOING REVIEW AND WILL TAKE NECESSARY ACTION THEREAFTER, INCLUDING FOLLOW-UP REPORTING TO THE SERVICE. SUBSEQUENT TO FILING OF THE ORIGINALLY-FILED FORM 990 RETURN, IDEA'S BOARD OF DIRECTORS WAS BRIEFED ON THE RESULTS OF THE REVIEW REFERENCED IN THE ORIGINALLY-FILED FORM 990 RETURN, AND THEREAFTER UNDERTOOK PERSONNEL AND OTHER CORRECTIVE ACTIONS IN RESPONSE TO SUCH RESULTS. THE REFERENCED REVIEW IS CONTINUING WITH RESPECT TO CERTAIN USES OF IDEA'S ASSETS, AND IDEA CONTINUES TO WORK WITH COUNSEL AND OUTSIDE ADVISORS IN ORDER TO COMPLETE SUCH REVIEW AND TAKE ACTION AS MAY BE NECESSARY WITHIN THE JUDGMENT OF THE BOARD OF DIRECTORS IN ORDER TO TAKE CORRECTIVE ACTIONS IN RESPONSE TO THE RESULTS OF THE REVIEW. IDEA HAS IDENTIFIED AND REPORTED ON ITS FORM 990 RETURN FOR THE TAX YEAR ENDED JUNE 30, 2021 THAT IT BELIEVES THAT CERTAIN TRANSACTIONS INCLUDED IN THE REVIEW CONSTITUTED EXCESS BENEFIT TRANSACTIONS TO CERTAIN DISQUALIFIED PERSONS. ADDITIONAL TRANSACTIONS MAY BE IDENTIFIED THAT IDEA CONCLUDES THAT IT BELIEVES CONSTITUTE EXCESS BENEFIT TRANSACTIONS. IDEA IS ALSO CONTINUING TO WORK WITH REGULATORY AGENCIES AND LAW ENFORCEMENT TO TAKE SUCH CORRECTIVE ACTIONS THAT THE BOARD OF DIRECTORS BELIEVES ARE REQUIRED IN RESPONSE TO THE RESULTS OF THE REVIEW. IDEA HAS ENGAGED IN FOLLOW-UP REPORTING ACTIONS ON APPLICABLE INCOME TAX REPORTING FORMS FOR CERTAIN YEARS, AND IDEA ANTICIPATES CONTINUING TO ENGAGE IN FOLLOW-UP REPORTING TO THE IRS AS NECESSITATED BY THE RESULTS OF THE REVIEW. |
| FORM 990, PAGE 6, PART VI, LINE 9 |
THOMAS E TORKELSON 1601 S. BORDER AVE. WESLACO , TX 78596 WYATT J TRUSCHEIT 65 HACKAMORE BELL CANYON , CA 91307 JAMES ROBERTS 10908 LOS ARCOS COVE AUSTIN , TX 78739 |
| FORM 990, PAGE 6, PART VI, LINE 11B |
THE FINANCE COMMITTEE WILL REVIEW THE FORM 990 PRIOR TO FILING. POINTS RAISED BY THIS REVIEW ARE RESOLVED BETWEEN KEY FINANCIAL OFFICERS, OTHER MANAGEMENT OFFICERS (IF NEEDED) AND THE ORGANIZATION'S OUTSIDE TAX PREPARER BEFORE FILING. IN ADDITION, THE 990 WILL BE PRESENTED AND EMAILED TO THE FULL BOARD PRIOR TO FILING WITH THE IRS. |
| FORM 990, PAGE 6, PART VI, LINE 12C |
IDEA PUBLIC SCHOOL REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY BY HAVING ALL OFFICERS SIGN AN ANNUAL TEA GOVERNANCE REPORTING FORM. ADDITIONALY, THE BOARD IS REQUIRED TO COMPLETE CONFLICT OF INTEREST DISCLOSURE FORMS. |
| FORM 990, PAGE 6, PART VI, LINE 15A |
COMPENSATION PROCESS FOR TOP OFFICIAL: FOR CEO COMPENSATION, THE BOARD OF DIRECTORS CONTRACTED AN INDEPENDENT CONSULTANT TO CONDUCT A SURVEY OF CEOS IN COMPARABLE NON-PROFIT ORGANIZATIONS AS DEFINED BY THE THIRD PARTY'S MARKET ASSESSMENT. BASED ON THE ANALYSIS, THE BOARD OF DIRECTORS APPROVED A CONTRACT FOR THE CHIEF EXECUTIVE OFFICER WITHIN THE IDENTIFIED REASONABLE TOTAL RENUMERATION RANGE. |
| FORM 990, PAGE 6, PART VI, LINE 15B |
FOR OTHER EXECUTIVES, SALARY WAS SET USING A SIMILAR PROCESS OF INDUSTRY BENCHMARKING BASED ON DATA AGGREGATED BY AN INDEPENDENT CONSULTANT THAT SPECIALIZED IN NON PROFIT COMPENSATION REPORTS. |
| FORM 990, PAGE 6, PART VI, LINE 19 |
THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AVAILABLE ON IDEA PUBLIC SCHOOL'S WEBSITE AND UPON REQUEST. |
| FORM 990, PART XI, LINE 9 |
DIRECT EXPENSES THAT ARE INCLUDED ON FUNDRAISING REVENUE 85,871 DIRECT EXPENSES THAT ARE INCLUDED ON FUNDRAISING REVENUE -85,871 |
Attach to Form 990 or 990-EZ.