2023-05-08T15:06:47-05:00 2022-06-30 366055558 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2021-07-01 760756768 HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL HARL 2123603255 245 W 129TH STREET NEW YORK NY 10027 CONNOR FOURNIER CFO 2123603255 2023-05-08 1 CONNOR FOURNIER 999009999 SCOTT THOMPSETT P00741490 2125990100 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z KWAME OWUSU-KESSE 35 EAST 125TH STREET NEW YORK NY 10035 28035692 0 X WWW.HCZPROMISE.ORG X 2004 NY TO PROVIDE HIGH QUALITY, STANDARDS-BASED ACADEMIC PROGRAMS FOR STUDENTS, GRADES K-12. 7 5 231 0 0 0 24672792 27983056 0 0 10 13 147855 52623 24820657 28035692 0 306566 0 0 20106880 22674539 0 0 0 5868848 6500944 25975728 29482049 -1155071 -1446357 79498246 78620847 9456375 10025333 70041871 68595514 X SEE SCHEDULE OTHE MISSION OF HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL IS TO ENSURE THAT CHILDREN FROM UNDER-SERVED COMMUNITIES ARE ACADEMICALLY, SOCIALLY AND EMOTIONALLY READY TO SUCCEED IN COLLEGE AND TOMORROW'S WORKPLACE. THE SCHOOL'S COMMITTED, CARING STAFF PROVIDE COMPREHENSIVE SERVICES TO CHILDREN IN KINDERGARTEN THROUGH 12TH GRADE - AS WELL AS TO THEIR FAMILIES - SO THEY ARE WELL EQUIPPED FOR THE OPPORTUNITIES AHEAD. 0 0 28206731 0 0 SEE SCHEDULE O 28206731 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 34 0 1 231 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 5 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 X X LINDA IBUZOR 2123603255 35 E 125TH STREET NEW YORK NY 10035 X GEOFFREY CANADA PRESIDENT 2.00 42.00 X X 0 503045 36645 KENNETH LANGONE CHAIRMAN EMERITUS 2.00 3.00 X X 0 0 0 MITCH KURZ TREASURER/SECRETARY 2.00 3.00 X X 0 0 0 AISHA TOMLINSON PARENT REP (NON-VOTING) 2.00 0.00 X 0 0 0 STANLEY DRUCKENMILLER TRUSTEE 2.00 3.00 X 0 0 0 DENISE FULLER TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 ALFONSO WYATT TRUSTEE 2.00 2.00 X 0 0 0 WILLIE MAE LEWIS TRUSTEE 2.00 2.00 X 0 0 0 ELLANOR BODIE BRIZENDINE TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 KEITH MEISTER TRUSTEE (NON-VOTING) 2.00 3.00 X 0 0 0 KWAME OWUSU-KESSE CHIEF EXECUTIVE OFFICER 2.00 42.00 X X 0 644455 121254 NANA A ANNAN CHIEF OPERATING OFFICER 2.00 0.00 X 0 280329 37987 CONNOR FOURNIER CHIEF FINANCIAL OFF. (AS OF 02/2021) 2.00 42.00 X 0 287507 8586 ACHIL PETIT SUPERINTENDENT 20.00 20.00 X 525869 0 83946 JOSEPH CORDERO PRINCIPAL - UPPER ELEMENTARY 40.00 0.00 X 295042 0 44306 SUSAN R RYDZ DEPUTY OF SPECIAL PROJECTS 40.00 0.00 X 290101 0 55379 ARI BROWNE DIRECTOR OF PA INFORMATION 40.00 0.00 X 234171 0 75534 LAURA K LIPLOW MATH COACH 2.00 0.00 X 234257 0 52517 JAMES D HUTTER CHIEF FINANCIAL OFF. (THRU 01/2021) 2.00 42.00 X 0 628915 39464 1579440 2344251 555618 48 1 1 0 RED RABBIT LLC 1751 PARK AVE NEW YORK NY 10035 FOOD SERVICES 199205 MANHATTAN MILK COMPANY 1660 BROADWAY UNIT 54 NEW YORK NY 10019 FOOD DELIVERY SERVICES 165394 APPLE INC 1 APPLE PARK WAY CUPERTINO CA 95014 PC HARDWARE, SOFTWARE & IT SVCS 162101 SYSCO FOOD SERVICES METRO NY 20 THEODORE CONRAD DRIVE JERSEY CITY NJ 07305 FOOD SERVICES 132461 XEROX CORPORATION 122 E 42ND ST NEW YORK NY 10168 TECH SERVICES/SUPPORT 125822 8 2544198 24118143 1320715 70715 27983056 13 13 MISCELLANEOUS INCOME 900099 52623 52623 52623 28035692 0 0 52636 306566 306566 16175732 15431648 744084 316374 301821 14553 4969041 4740465 228576 1213392 1157576 55816 140003 133563 6440 1060075 1011311 48764 193482 184585 8897 642103 612566 29537 2026127 1915675 110452 121657 121487 170 8391 8005 386 172168 164248 7920 FOOD 1298535 1298535 CLASSROOM SUPPLIES 245090 245090 UNIFORMS 164578 164578 MAINTENANCE 154359 147258 7101 274376 261754 12622 29482049 28206731 1275318 0 9332281 9665190 464330 2162265 132423 421464 690233 377086 5899 313147 69563313 66058781 79498246 78620847 3112364 3470435 500000 0 5844011 6554898 9456375 10025333 X 9586562 9972184 60455309 58623330 70041871 68595514 79498246 78620847 -1446357 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 277398 5465 271933 348297 348297 0 64538 23324 41214 313147 DUE FROM RELATED PARTIES 7413155 CONTRIBUTION SPACE RECEIVABLE 58623330 OTHER ASSETS 22296 66058781 DEFERRED COMPENSATION PAYABLE 5733107 DUE TO RELATED PARTIES 821791 6554898 X 28554038 518346 518346 28035692 0 28035692 30000395 518346 518346 29482049 0 29482049 PART X, LINE 2: THE SCHOOL RECOGNIZES THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION IN THE FINANCIAL STATEMENTS ONLY IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. THE SCHOOL IS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(3), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THE SCHOOL HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX EXEMPT STATUS, TO IDENTIFY AND REPORT UNRELATED INCOME, TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS, AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE SCHOOL HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2022 OR 2021. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 SEE SUPPLEMENTAL PAGE FORM 990, SCHEDULE E, LINE 3 THE HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL DOES NOT DISCRIMINATE ON THE BASIS OF PRIOR ACADEMIC ACHIEVEMENT, ATHLETIC ABILITY, DISABILITY, RACE, CREED, NATIONAL ORIGIN, GENDER, RELIGION, OR ANY OTHER GROUNDS THAT WOULD BE UNLAWFUL. THE SCHOOL'S ADMISSIONS PROCEDURES ARE CONSISTENT WITH THE PROVISIONS OF NEW YORK EDUCATION LAW 2854(2). FORM 990, SCHEDULE E, LINE 6A UNDER THE SCHOOL'S CHARTER SCHOOL AGREEMENT AND THE CHARTER SCHOOLS ACT, THE SCHOOL IS ENTITLED TO RECEIVE FUNDING FROM FEDERAL, STATE AND LOCAL SOURCES THAT ARE AVAILABLE TO PUBLIC SCHOOLS. THESE FUNDS INCLUDE STATE PUPIL ENROLLMENT FUNDS, FEDERAL FOOD SUBSIDIES AND TITLES I, II AND IV FUNDING. 1 INCENTIVES (GIFT CARDS) 550 306566 PART I, LINE 2: THE PROMISE ACADEMY OCCASIONALLY OFFERS SMALL AMOUNTS OF CASH (GIFT-CARDS) AND NON-CASH (T-SHIRTS, SUPPLIES) ASSISTANCE TO STUDENTS AND/OR EMPLOYEES BASED EITHER ON NEED OR AS INCENTIVES TO INCREASE PRODUCTIVITY OR SCHOOL PERFORMANCE. THESE PAYMENTS ARE TYPICALLY UNDER $100 AND REFLECT THE ACADEMY'S COMMITMENT TO REWARDING ITS STUDENTS FOR EXCELLENT ACADEMIC PERFORMANCE OR FOR RECOGNIZING ITS STAFF FOR CONTINUING TO CREATE A FLOURISHING EDUCATIONAL ENVIRONMENT FOR THE STUDENTS. THE ACADEMY RETAINS VERY DETAILED RECORDS OF ITS INCENTIVE AWARDS TO ENSURE THEY ARE FAIRLY DISTRIBUTED AND DOCUMENTED ACCORDINGLY. 0 1 0 0 0 0 0 1 0 KWAME OWUSU-KESSE CHIEF EXECUTIVE OFFICER 0 453907 0 190548 0 0 0 85719 0 35535 0 765709 0 80548 JAMES D HUTTER CHIEF FINANCIAL OFF. (THRU 01/2021) 0 147569 0 481346 0 0 0 10626 0 28838 0 668379 0 311736 ACHIL PETIT SUPERINTENDENT 397821 0 128048 0 0 0 71973 0 11973 0 609815 0 80548 0 GEOFFREY CANADA PRESIDENT 0 348045 0 155000 0 0 0 0 0 36645 0 539690 0 0 SUSAN R RYDZ DEPUTY OF SPECIAL PROJECTS 200566 0 89535 0 0 0 46233 0 9146 0 345480 0 57535 0 JOSEPH CORDERO PRINCIPAL - UPPER ELEMENTARY 212507 0 82535 0 0 0 8771 0 35535 0 339348 0 57535 0 NANA A ANNAN CHIEF OPERATING OFFICER 0 245329 0 35000 0 0 0 2747 0 35240 0 318316 0 0 ARI BROWNE DIRECTOR OF PA INFORMATION 160643 0 73528 0 0 0 44791 0 30743 0 309705 0 46028 0 CONNOR FOURNIER CHIEF FINANCIAL OFF. (AS OF 02/2021) 0 287507 0 0 0 0 0 0 0 8586 0 296093 0 0 LAURA K LIPLOW MATH COACH 151722 0 82535 0 0 0 36285 0 16232 0 286774 0 57535 0 PART I, LINE 4B HARLEM CHILDREN'S ZONE MAINTAINS A SECTION 457(F) PLAN AND A SUPPLEMENTAL BONUS PLAN FOR CERTAIN ELIGIBLE EMPLOYEES OF THE SCHOOL. THESE PLANS ("THE PLANS") ARE TAX-DEFERRED EMPLOYEE SAVINGS PLANS THAT AIM TO SERVE AS A RETENTION TOOL FOR DIRECTORS, OFFICERS, PRINCIPALS AND SENIOR STAFF. HARLEM CHILDREN'S ZONE MAKES AN ANNUAL DEPOSIT INTO THE PLAN THAT IS VALUED AT 150% OF THE INDIVIDUAL EMPLOYEE'S BONUS FOR THE CURRENT YEAR. THE EMPLOYEE'S ACCOUNT ACCUMULATES ASSOCIATED EARNINGS OR LOSSES ON THE INVESTMENT OF THE CONTRIBUTED AMOUNT IN THE NO MARGIN SENIOR GROWTH FUND, WHICH IS MANAGED BY THE DUQUESNE FAMILY OFFICE, AT NO COST TO HARLEM CHILDREN'S ZONE OR THE EMPLOYEE. THE AMOUNTS CONTRIBUTED BY HARLEM CHILDREN'S ZONE, ALONG WITH THE ASSOCIATED EARNINGS OR LOSSES, VEST AFTER FIVE YEARS FROM THE DATE OF THE INITIAL CONTRIBUTION AND WILL BE PAID TO ELIGIBLE EMPLOYEES WHEN VESTED. BEGINNING FISCAL YEAR 2016, THE VESTING PERIOD WAS BIFURCATED BETWEEN TEACHERS AND ADMINISTRATIVE STAFF, SUCH THAT AMOUNTS CONTRIBUTED TO THE PLAN NOW VEST THREE AND FIVE YEARS AFTER THE DATE OF THE INITIAL CONTRIBUTION FOR ELIGIBLE TEACHERS AND ADMINISTRATIVE STAFF, RESPECTIVELY. TERMINATED EMPLOYEES BECOME VESTED IMMEDIATELY AT THE DATE OF THEIR TERMINATION. EMPLOYEES WHO MEET THE AGE AND SERVICE PROVISIONS OF THE PLAN (AGE VESTING) ARE VESTED IMMEDIATELY UPON MEETING THOSE PROVISIONS. HOWEVER, IF A PARTICIPATING EMPLOYEE LEAVES VOLUNTARILY, INCLUDING RETIREMENT IF THEY HAVE NOT REACHED THE AGE VESTING PROVISIONS, THEN THEIR CUMULATIVE UNVESTED CONTRIBUTION MADE BY HCZ AND ASSOCIATED EARNINGS OR LOSSES ARE FORFEITED. FOR CALENDAR YEAR 2021, EMPLOYEES RECEIVED A PAYOUT OF DEFERRED COMPENSATION FROM THE PLAN AND THOSE AMOUNTS HAVE BEEN RECORDED IN SCHEDULE J, PART II, COLUMN (B)(II) AND, BECAUSE THAT PAYOUT REPRESENTS COMPENSATION THAT WAS REPORTED ON PREVIOUS FORMS 990 AS DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN (C), IT IS RECORDED IN SCHEDULE J, PART II COLUMN (F). GEOFFREY CANADA, AN OFFICER OF HCZ, MET THE AGE AND SERVICE PROVISIONS OF THE 457 (F) PLAN (AGE VESTING) FOR CALENDAR YEAR 2021 THAT RESULTED IN IMMEDIATE VESTING OF HCZ'S GROWTH FUND CONTRIBUTION. THIS AMOUNT IS INCLUDED IN FORM 990, SCHEDULE J, COLUMN B (II). PART I, LINE 7 AS NOTED IN THE NARRATIVE TO FORM 990, PART VI, LINE 15, ALL BONUSES OR MERIT PAY INCREASES ISSUED TO PROMISE ACADEMY EMPLOYEES ARE DETERMINED BY THE CEO, KWAME OWUSU-KESSE, WITH INPUT FROM THE SUPERINTENDENT. ALL BONUSES ARE PERFORMANCE-BASED AND THE RECIPIENTS DO NOT HAVE ANY INPUT INTO THE AMOUNT OF THE BONUS THEY RECEIVE. X EDUC SUPPLIES 1 70715 FMV 0 1 0 GENERAL STATEMENT ABOUT COVID-19 PANDEMIC: IN MARCH 2020, THE WORLD HEALTH ORGANIZATION OFFICIALLY DECLARED COVID-19, A DISEASE CAUSED BY THE NOVEL CORONAVIRUS, A PANDEMIC. THIS CAUSED MANY LOCAL AND NATIONAL GOVERNMENTS, INCLUDING NEW YORK STATE, TO IMPOSE RESTRICTIONS ON BUSINESS OPERATIONS, TRAVEL AND PUBLIC GATHERINGS. THE OUTBREAK HAS ADVERSELY IMPACTED THE LEVEL OF ECONOMIC ACTIVITY AROUND THE WORLD AND DISRUPTED NORMAL BUSINESS ACTIVITY IN EVERY SECTOR OF THE ECONOMY. DURING THE PANDEMIC, WE IMPLEMENTED A HYBRID LEARNING MODEL THAT ALLOWED FOR BOTH VIRTUAL AND ON-SITE INSTRUCTION FOR OUR SCHOLARS. ON-SITE LEARNING WAS MADE POSSIBLE BY ENHANCED SOCIAL DISTANCING, USE OF PERSONAL PROTECTIVE EQUIPMENT, AND FREQUENT TESTING ALIGNED TO GUIDANCE FROM THE CDC AND OTHER PUBLIC HEALTH AGENCIES. OUR VIRTUAL LEARNING WAS FACILITATED BY PROVIDING STUDENTS WITH THE TECHNOLOGICAL RESOURCES NEEDED TO CONDUCT SCHOOLING IN A VIRTUAL ENVIRONMENT. DURING FISCAL YEAR 2022, WE TRANSITIONED TO FULLY ONSITE INSTRUCTION WHILE MAINTAINING APPROPRIATE PRECAUTIONS AND SURVEILLANCE TESTING PROCEDURES. FORM 990, PART III - PROGRAM SERVICE, LINE 4A: THE PROMISE ACADEMY IS UNPARALLELED IN ITS EXCELLENCE, RIGOR, AND CARE. IN ADDITION TO A HIGH-QUALITY, STANDARDS-BASED EDUCATION STUDENTS AND THEIR FAMILIES HAVE ACCESS TO HCZ'S COMPREHENSIVE NETWORK OF SUPPORTS, INCLUDING COUNSELING, BENEFITS ASSISTANCE, AND OTHER SOCIAL SERVICES. OUR PROMISE IS TO DO WHATEVER IT TAKES TO ADDRESS ANY ISSUE, EVEN THOSE OUTSIDE OF THE CLASSROOM, THAT CAN HINDER A CHILD'S FUTURE. TO THAT END, THE SCHOOL HAS AN EXTENDED SCHOOL DAY TO GIVE STUDENTS MORE TIME ON-TASK TO MASTER BASIC SUBJECTS AND HAVE ENOUGH TIME TO PURSUE SCIENCE, SOCIAL STUDIES, THE ARTS AND PHYSICAL EDUCATION. THE STUDENTS ALSO HAVE ACCESS TO A FREE AFTER-SCHOOL PROGRAM THAT WORKS HAND IN HAND WITH THE DAY SCHOOL AS WELL AS OFFERING STUDENTS ENRICHMENT CLASSES IN A VARIETY OF DISCIPLINES SUCH AS DANCE, PHOTOGRAPHY, CHESS AND MORE. THE SCHOOL ALSO HAS A MULTI-FACETED PROGRAM TO MAKE SURE STUDENTS ARE READY FOR COLLEGE, WHICH INCLUDES SAT PREPARATION CLASSES, COLLEGE COUNSELING AND CAMPUS VISITS, AS WELL AS SUPPORT FOR THE COLLEGE APPLICATION AND SELECTION PROCESSES. AS A RESULT, PROMISE ACADEMY STUDENTS ACHIEVE HIGHER AGGREGATE SCORES ON THE ENGLISH LANGUAGE ARTS TEST THAN STUDENTS IN THE LOCAL DISTRICT 5, NEW YORK CITY AS A WHOLE, NEW YORK STATE AS A WHOLE, NEW YORK STATE WHITE AND BLACK STUDENTS, AND NEW YORK CITY BLACK STUDENTS. ON THE MATH EXAM, THEY OUTPERFORM THE LOCAL DISTRICT, NEW YORK CITY, NEW YORK STATE, NEW YORK CITY BLACKS STUDENTS, NEW YORK CITY AND NEW YORK STATE WHITE STUDENTS. FOR MORE DETAILED INFORMATION ABOUT THE ACADEMY'S PROGRAMMATIC ACTIVITIES, PLEASE VISIT WWW.HCZPROMISE.ORG. FORM 990, PART VI, SECTION A, LINE 8B THE CHARTER SCHOOL HAS NO OTHER COMMITTEES OTHER THAN ITS BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B POLICIES - PROCESS USED TO REVIEW FORM 990 THE FORM 990 WAS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S FINANCE DEPARTMENT. A COPY OF THE DRAFT FORM 990 WAS CIRCULATED TO THE BOARD OF TRUSTEES FOR DISCUSSION AND COMMENT. EACH BOARD OF TRUSTEES MEMBER WAS PROVIDED AN OPPORTUNITY TO COMMENT ON THE INFORMATION CONTAINED IN THE 990 PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C ENFORCEMENT OF CONFLICT OF INTEREST POLICY THE PROMISE ACADEMY OPERATES UNDER THE CONFLICT-OF-INTEREST POLICY OF ITS INSTITUTIONAL PARTNER, HARLEM CHILDREN'S ZONE. ALL EMPLOYEES ARE EXPECTED TO USE HONESTY, GOOD JUDGEMENT AND HIGH ETHICAL STANDARDS IN ALL PROFESSIONAL DEALINGS. ALL EMPLOYEES MUST AVOID ANY ACTIONS THAT COULD CREATE A CONFLICT OF INTEREST OR THE APPEARANCE OF SUCH A CONFLICT OR REFLECT UNFAVORABLY ON THEM OR ON HARLEM CHILDREN'S ZONE PROMISE ACADEMY. AN EMPLOYEE MUST DISCLOSE IF SHE/HE OR AN IMMEDIATE FAMILY MEMBER HAS ANY POTENTIAL CONFLICT OF INTEREST SUCH AS A RELATIONSHIP TO A THIRD-PARTY VENDOR WHO SEEKS OR HAS A BUSINESS RELATIONSHIP WITH HARLEM CHILDREN'S ZONE PROMISE ACADEMY. AN EMPLOYEE'S VIOLATION OF THIS POLICY, ESPECIALLY A FAILURE TO REPRESENT ACCURATELY HIS OR HER CONNECTION OR ACTION ON BEHALF OF HARLEM CHILDREN'S ZONE PROMISE ACADEMY AND A THIRD PARTY WILL CONSTITUTE GROUNDS FOR DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINE 13 & 14 WHISTLEBLOWER AND DOCUMENT RETENTION POLICY THE PROMISE ACADEMY OPERATES UNDER THE WHISTLEBLOWER AND DOCUMENT RETENTION POLICY OF ITS INSTITUTIONAL PARTNER, HARLEM CHILDREN'S ZONE. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL IS KWAME OWUSU-KESSE. THE PROCEDURES FOR DETERMINING MR. OWUSU-KESSE COMPENSATION PACKAGE ARE DOCUMENTED IN HARLEM CHILDREN'S ZONE FORM 990 AS THAT ORGANIZATION PAYS HIS COMPENSATION. MR. OWUSU-KESSE MAKES ALL COMPENSATION DECISIONS, WITH INPUT FROM THE SUPERINTENDENT, FOR THE EMPLOYEES AT THE PROMISE ACADEMY, INCLUDING THE PRINCIPALS. TO THE EXTENT THAT ANY MERIT PAY OR BONUSES ARE WARRANTED, THE SUPERINTENDENT AND PRINCIPALS WILL MAKE RECOMMENDATIONS FOR TEACHERS AND ADMINISTRATORS. ALL BONUSES ARE STRICTLY TIED TO EMPLOYEE PERFORMANCE, USUALLY DETERMINED BY STUDENT ACADEMIC SUCCESS AND WELL-BEING. THE ORGANIZATION MAKES A CONSCIOUS EFFORT TO COMPENSATE ITS EXECUTIVES COMMENSURATE WITH THE MARKET. FORM 990, PART VI, SECTION C, LINE 19 AVAILABILITY OF DOCUMENTS TO THE PUBLIC THE ACADEMY MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS. THE FORM 990 IS LIKEWISE PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. THE ORGANIZATION'S FINANCIAL STATEMENTS AND FORM 990 ARE PUBLISHED ON ITS WEBSITE; ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. FORM 990, PART VII TOP FIVE HIGHEST PAID EMPLOYEE, DR. ACHIL PETIT, IS EMPLOYED AS THE SUPERINTENDENT OF BOTH HARLEM CHILDREN'S ZONE PROMISE ACADEMY I AND HARLEM CHILDREN'S ZONE PROMISE ACADEMY II. DR. PETIT SPENDS HALF OF HIS TIME AT PROMISE ACADEMY I AND PROMISE ACADEMY II; HOWEVER, HE RECEIVES HIS W-2 FROM PROMISE ACADEMY I FOR THE SERVICES RENDERED TO BOTH ACADEMIES (AND HIS COMPENSATION IS REPORTED IN FORM 990, PART VII, COLUMN (D) ACCORDINGLY). HARLEM CHILDREN'S ZONE 35 EAST 125TH STREET NEW YORK NY 10035 237112974 SOCIAL SVCS NY 501(C)(3) LINE 7 N/A 0 HARLEM CHILDRENS ZONE PROMISE ACADEMY II 35 EAST 125TH STREET NEW YORK NY 10035 342049530 EDUCATION NY 501(C)(3) LINE 2 HCZ 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 1 1 1 1 1 FORM 990, SCHEDULE R, PART V, LINE 2: PURSUANT TO THE TERMS OF A COMMITMENT LETTER BETWEEN HARLEM CHILDREN'S ZONE (HCZ) AND PROMISE ACADEMY, HCZ, AS THE SCHOOL'S INSTITUTIONAL PARTNER, COMMITTED TO PROVIDE THE ACADEMY, DURING THE INITIAL FIVE-YEAR TERM OF ITS CHARTER, CERTAIN SERVICES AT NO COST. THE CHARTER SCHOOL HAS RENEWED ITS COMMITMENT LETTER WITH HARLEM CHILDREN'S ZONE FOR AN ADDITIONAL FIVE YEAR PERIOD THAT RUNS THROUGH JUNE 30, 2024. THESE SERVICES INCLUDE FINANCIAL MANAGEMENT, SOCIAL, TECHNOLOGY, FUNDRAISING, PUBLIC RELATIONS, AND TEACHING ASSISTANCE SERVICES. THE VALUE OF THE CONTRIBUTED SERVICES RENDERED TO THE ACADEMY FOR THE YEAR ENDING JUNE 30, 2022 IS $518,346. IN ADDITION TO CONTRIBUTED SERVICES, THE ACADEMY RECEIVED THE USE OF SPACE AT HARLEM CHILDREN ZONE'S BUILDING LOCATED AT 245 W. 129TH STREET, NEW YORK, NEW YORK. UPON EXECUTION OF THE SUBLEASE AGREEMENT IN FISCAL 2015, THE ACADEMY RECORDED A $73,279,162 CONTRIBUTION RECEIVABLE, WHICH REPRESENTS THE IMPUTED FAIR VALUE OF THE SPACE UNDER THE LEASE. THE RECEIVABLE IS BEING AMORTIZED TO RENT EXPENSE, AND THE RELATED TEMPORARILY RESTRICTED NET ASSETS ARE RELEASED FROM RESTRICTIONS, OVER THE TERM OF THE LEASE. THE CURRENT CONTRIBUTION RECEIVABLE, AS REPORTED ON THE BALANCE SHEET, IS $2,162,265. HCZ MAINTAINS A 457(F) PLAN FOR CERTAIN ELIGIBLE EMPLOYEES OF THE SCHOOL. EMPLOYEES BECOME ELIGIBLE TO PARTICIPATE IN THIS PLAN BASED SOLELY AT THE DISCRETION OF THE SCHOOL'S BOARD OF TRUSTEES. THE AMOUNTS CONTRIBUTED WILL VEST IN EITHER THREE OR FIVE YEARS. HCZ PROVIDES THE SCHOOL WITH AN ANNUAL SUBSIDY TO COVER THIS COST BY CONTRIBUTING TO A HCZ INVESTMENT ACCOUNT. DURING FISCAL 2022, HCZ PROVIDED A SUBSIDY OF $1,254,590 FOR THE FISCAL 2022 CONTRIBUTION TO THE 457(F) PLAN.