2020-07-14T17:36:44-05:00 2019-06-30 860271207 SCHMIDT WESTERGARD & COMPANY PLLC 77 WEST UNIVERSITY DRIVE MESA AZ 852015830 990 2018-07-01 821503382 LEGACY TRADITIONAL SCHOOL - EAST MESA LEGA 4802705438 3125 S GILBERT ROAD CHANDLER AZ 85286 DIEGO GETTLER PRESIDENT 4802705438 2020-06-30 1 KELLY M WHITE P00622256 4808346030 216.27.213.138 2020-06-30 09:46:18 US P AABCA7D4A69FE23C4645447E4DBAE51B3FD989F2 AABCA7D4A69FE23C4645447E4DBAE51B3FD989F2 2018 2020-09-23 17:36:50Z DIEGO GETTLER 3125 S GILBERT ROAD CHANDLER AZ 85286 5446276 0 X EASTMESA.LEGACYTRADITIONAL.ORG X 2017 AZ TO PROVIDE MOTIVATED STUDENTS WITH THE OPPORTUNITY TO ACHIEVE ACADEMIC EXCELLENCE IN AN ACCELERATED, BACK-TO-BASICS, SAFE LEARNING ENVIRONMENT TAUGHT BY CARING, KNOWLEDGEABLE AND HIGHLY EFFECTIVE EDUCATORS IN COOPERATION WITH SUPPORTIVE, INVOLVED PARENTS. 5 5 92 652 0 0 0 4433545 0 1005108 0 4609 419 3014 419 5446276 0 0 0 0 55720 3322315 0 0 0 697759 3630635 753479 6952950 -753060 -1506674 22710702 20626615 23463762 22886349 -753060 -2259734 TO PROVIDE MOTIVATED STUDENTS WITH THE OPPORTUNITY TO ACHIEVE ACADEMIC EXCELLENCE IN AN ACCELERATED, BACK-TO-BASICS, SAFE LEARNING ENVIRONMENT TAUGHT BY CARING, KNOWLEDGEABLE AND HIGHLY EFFECTIVE EDUCATORS IN COOPERATION WITH SUPPORTIVE, INVOLVED PARENTS. 0 0 5679402 1008122 DURING THE CURRENT YEAR, THE ORGANIZATION PROVIDED HIGH QUALITY EDUCATIONAL SERVICES TO APPROXIMATELY 652 STUDENTS IN KINDERGARTEN THROUGH 8TH GRADE ON THE ORGANIZATION'S CAMPUS LOCATED IN MESA, ARIZONA. THOSE STUDENTS EXPERIENCED A WELL-ROUNDED EDUCATION THAT INCLUDED READING, WRITING, MATHEMATICS, SCIENCE, SOCIAL STUDIES, HISTORY, MUSIC, ART, AND PHYSICAL EDUCATION, AS WELL AS EXTRACURRICULAR ACTIVITIES LIKE ATHLETICS, CLUBS, FIELD TRIPS, AND DAILY TUTORING. 5679402 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 0 0 0 1 10 0 1 92 1 0 0 0 0 0 0 0 0 0 0 0 0 X 5 5 1 1 0 0 0 0 0 1 0 0 0 1 1 1 1 0 1 0 0 0 X COREY KENNEDY 4802705438 3125 S GILBERT ROAD GILBERT AZ 85286 X JENNI FERRIN SECRETARY 1.00 5.00 X X 0 0 0 DEREK SAMUEL DIRECTOR 1.00 5.00 X 0 0 0 CORY THEOBALD DIRECTOR 1.00 5.00 X 0 0 0 NATHAN SCHLINK PRESIDENT 1.00 5.00 X X 0 0 0 HEATHER JONES TREASURER 1.00 5.00 X 0 0 0 DIEGO GETTLER DIRECTOR 1.00 5.00 X 0 0 0 AARON HALE TREASURER 8.00 40.00 X 0 0 0 BRANDON JONES CEO 8.00 40.00 X 0 0 0 0 0 0 0 0 0 0 PROVESTUS DEVELOPMENT SOLUTIONS LLC 2543 E SCORPIO PL CHANDLER AZ 85249 CONSTRUCTION MANAGEMENT SERVICES 455294 VERTEX EDUCATION LLC 3125 S GILBERT ROAD CHANDLER AZ 85286 MANAGEMENT FEES 113714 2 4425935 7610 4433545 SCHOOL PROGRAMS 611710 879702 879702 LUNCH FEES 611710 125406 125406 1005108 4609 4609 MISCELLANEOUS INCOME 611710 3014 3014 3014 5446276 1008122 0 4609 2872922 2713909 159013 26000 24700 1300 179910 170914 8996 243483 231309 12174 819148 163830 655318 1353 1353 2763 2763 66215 66215 121114 121114 268105 239069 29036 42031 33625 8406 194153 155322 38831 166 166 867629 780866 86763 638293 574464 63829 SUPPLIES 303077 288470 14607 BOND FEES 230421 207379 23042 DUES AND FEES 46837 46837 FIELD TRIPS 14862 14862 14468 14468 6952950 5679402 1273548 0 14648 749476 7513898 1521360 0 90986 46998 51223 18562541 521458 15022048 18041083 113110 172487 22710702 20626615 2102098 952634 12545 21224940 21341776 136724 114351 0 465043 23463762 22886349 X -753060 -2259734 -753060 -2259734 22710702 20626615 -1506674 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3634785 3634785 13505980 309512 13196468 181261 55385 125876 1240515 156561 1083954 18041083 DUE TO LTSS 79 DUE TO PHOENIX 464964 465043 X 5446276 0 5446276 0 5446276 6952950 0 6952950 0 6952950 PART X, LINE 2: THE SCHOOL IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE "IRC") AND SIMILAR ARIZONA PROVISIONS. IN ADDITION, THE SCHOOL HAS BEEN CLASSIFIED AS AN ORGANIZATION OTHER THAN A PRIVATE FOUNDATION UNDER SECTION 509(A)(1) OF THE IRC. HOWEVER, INCOME FROM CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THE SCHOOL'S TAX-EXEMPT PURPOSE MAY BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. THERE IS NO PROVISION FOR INCOME TAXES IN THE ACCOMPANYING FINANCIAL STATEMENTS BECAUSE THERE IS NO SIGNIFICANT UNRELATED BUSINESS INCOME. THE SCHOOL FOLLOWS THE GUIDANCE ISSUED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") RELATED TO ACCOUNTING FOR INCOME TAX UNCERTAINTIES. UNDER THIS GUIDANCE, THE SCHOOL ACCOUNTS FOR THE EFFECT OF ANY UNCERTAIN TAX POSITIONS BASED ON WHETHER IT IS "MORE-LIKELY-THAN-NOT" THAT THE POSITION WILL BE SUSTAINED BY THE TAXING AUTHORITY UPON EXAMINATION. THE SCHOOL ROUTINELY EVALUATES POTENTIAL UNCERTAIN TAX POSITIONS. THE SCHOOL HAS IDENTIFIED ITS STATUS AS AN EXEMPT ORGANIZATION AS A TAX POSITION; HOWEVER, THE SCHOOL HAS DETERMINED THAT SUCH TAX POSITION DOES NOT RESULT IN AN UNCERTAINTY THAT REQUIRES RECOGNITION. THE SCHOOL FILES AN INFORMATIONAL TAX RETURN IN THE U.S. FEDERAL JURISDICTION. AS OF JUNE 30, 2019, U.S. FEDERAL INFORMATIONAL TAX RETURNS FOR THE YEARS ENDED PRIOR TO JUNE 30, 2017 ARE CLOSED TO ASSESSMENT. THERE WERE NO AMOUNTS OF ACCRUED INTEREST OR PENALTIES AS OF JUNE 30, 2019. 1 1 0 1 0 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE ORGANIZATION'S STAFF INFORMS INTERESTED PARENTS AND STUDENTS OF THE RACIALLY NONDISCRIMINATORY POLICY IN THE ENROLLMENT PROCESS. SCHEDULE E, PART I, LINE 4 THE SCHOOL DOES NOT OFFER SCHOLARSHIPS OR FINANCIAL ASSISTANCE. SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVES REVENUE FROM THE FEDERAL AND STATE GOVERNMENTS FOR EDUCATIONAL PROGRAMS AND FROM THE STATE OF ARIZONA FOR STATE EQUALIZATION ASSISTANCE. A THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PHOENIX ARIZONA 522038405 71885FFK8 2017-09-14 21473100 FINANCING CHARTER SCHOOL 0 0 0 A 21473100 112360 1559270 513830 18830039 457601 2018 0 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 SCHEDULE K, PART I, COLUMN A, ITEM (A): (A) ISSUER NAME: THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PHOENIX, ARIZONA SCHEDULE K, PART I, COLUMN A, ITEM (E): (E) ISSUE PRICE: UNDER A BOND INDENTURE AND RELATED AGREEMENTS DATED SEPTEMBER 1, 2017, THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PHOENIX, ARIZONA, A GOVERNMENTAL ISSUER, ISSUED EDUCATION FACILITY REVENUE BONDS (LEGACY TRADITIONAL SCHOOLS EAST MESA AND CADENCE (NEVADA) CAMPUSES) SERIES 2017A AND LOANED THE PROCEEDS THEREOF TO LEGACY TRADITIONAL SCHOOL - EAST MESA, AS REPRESENTATIVE OF AN OBLIGATED GROUP (DEFINED BELOW), FOR THE PURPOSE OF FINANCING THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING THE CAMPUS FACILITIES OF TWO MEMBERS OF THE OBLIGATED GROUP, INCLUDING THIS ORGANIZATION. THE MEMBERS OF THE OBLIGATED GROUP ARE JOINTLY AND SEVERALLY LIABILE FOR THE ENTIRE BOND ISSUE. HOWEVER, THE AMOUNT OF THE ISSUE PRICE IN ITEM (E) (AND THE AMOUNTS SHOWN IN PART II) IS THE PORTION ALLOCATED TO FINANCING THE CAMPUS FACILITIES OF THIS ORGANIZATION, AND THE AMOUNT DIFFERS FROM THE TOTAL BOND ISSUE PRICE REPORTED ON FORM 8038-G WHICH WAS THE TOTAL OF THE BOND ISSUE PRICE. BOTH OF THE MEMBERS OF THE OBLIGATED GROUP WHOSE CAMPUS FACILITIES WERE FINANCED WITH THE BOND ISSUE ARE REPORTING THEIR RESPECTIVE ALLOCATED PORTIONS OF THE TOTAL. OBLIGATED GROUP DEFINITION: AS OF JUNE 30, 2019, THE "OBLIGATED GROUP" INCLUDED THE FOLLOWING ORGANIZATIONS: (1) LEGACY TRADITIONAL SCHOOL - EAST MESA, (2) LEGACY TRADITIONAL SCHOOLS - NEVADA, INC., AND (3) LEGACY TRADITIONAL SCHOOL - PHOENIX. VERTEX EDUCATION LLC 100% CONTROLLED ENTITY OF ONE CURRENT AND ONE FORMER OFFICER OPERATIONS X 125000 114351 0 1 0 114351 VERTEX EDUCATION LLC 100% CONTROLLED ENTITY OF ONE CURRENT AND ONE FORMER OFFICER 819148 MANAGEMENT FEES AND COMMUNITY EDUCATION SERVICE FEES 0 PROVESTUS DEVELOPEMENT SOLUTIONS LLC 100% CONTROLLED ENTITY OF TWO CURRENT AND ONE FORMER OFFICER 455294 DEVELOPEMENT FEES 0 VERTEX EDUCATION LLC 100% CONTROLLED ENTITY OF ONE CURRENT AND ONE FORMER OFFICER 114011 ADVERTISING, MARKETING, AND PUBLIC RELATION EXPENSES 0 VERTEX EDUCATION LLC 100% CONTROLLED ENTITY OF ONE CURRENT AND ONE FORMER OFFICER 230421 GUARANTEE FEES 0 SCHEDULE L, PART II, LOANS TO AND FROM INTERESTED PERSONS: THE SCHOOL RECEIVES ADVANCES FROM VERTEX EDUCATION, LLC. THESE BALANCES INCLUDE INTEREST AT 10% FOR ADVANCES AND UNPAID MANAGEMENT FEES. THESE BALANCES ARE DUE ON DEMAND AND ARE UNCOLLATERALIZED. SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: THE SCHOOL HAS A MANAGEMENT SERVICES AGREEMENT WITH VERTEX EDUCATION, LLC. AS OF JUNE 30, 2019, AARON HALE AND HIS SPOUSE ARE MEMBERS OF VERTEX EDUCATION. AARON HALE SERVES AS AN OFFICER OF THE SCHOOL.IN ACCORDANCE WITH THE MANAGEMENT SERVICE AGREEMENT, VERTEX EDUCATION PROVIDES ASSISTANCE WITH THE OPERATIONS AND MANAGEMENT OF THE SCHOOL IN THE AREAS OF SCHOOL DEVELOPMENT, FINANCIAL SERVICES, HUMAN RESOURCES, INFORMATION SYSTEMS, FACILITIES MANAGEMENT AND FOOD SERVICES. IN ACCORDANCE WITH THE COMMUNITY EDUCATION SERVICES AGREEMENT, VERTEX PROVIDES ASSISTANCE WITH PROGRAM OF INSTRUCTION, LICENSING, POLICIES AND PROCEDURES, TRAINING OF PROGRAM STAFF, ENROLLMENT AND REGISTRATION, BILLINGS AND COLLECTIONS, AND COMMUNICATION WITH PARENTS, RELATED TO PROGRAMS SUCH AS LKC, PRE-SCHOOL, KEEP, AND CLUBS. FORM 990, PART VI, SECTION A, LINE 2 NATHAN SCHLINK, THE ORGANIZATION'S PRESIDENT, AND CORY THEOBALD, DIRECTOR, HAVE A FAMILY RELATIONSHIP WITH THE ORGANIZATION'S TREASURER, AARON HALE. AARON HALE, TREASURER, AND BRANDON JONES, CEO, HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 3 THE SCHOOL HAS A MANAGEMENT SERVICES AGREEMENT WITH VERTEX EDUCATION, LLC. IN ACCORDANCE WITH THE MANAGEMENT SERVICE AGREEMENT, VERTEX EDUCATION PROVIDES ASSISTANCE WITH THE OPERATIONS AND MANAGEMENT OF THE SCHOOL IN THE AREAS OF SCHOOL DEVELOPMENT, FINANCIAL SERVICES, HUMAN RESOURCES, INFORMATION SYSTEMS, FACILITIES MANAGEMENT AND FOOD SERVICES. THE SCHOOL ALSO HAS AN AGREEMENT WITH VERTEX EDUCATION FOR REIMBURSEMENTS FOR ADVERTISING, MARKETING, AND PUBLIC RELATION EXPENSES. THE SCHOOL HAS A COMMUNITY EDUCATION SERVICES AGREEMENT WITH VERTEX EDUCATION, IN WHICH VERTEX PROVIDES ASSISTANCE WITH PROGRAM OF INSTRUCTION, LICENSING, POLICIES AND PROCEDURES, TRAINING OF PROGRAM STAFF, ENROLLMENT AND REGISTRATION, BILLINGS AND COLLECTIONS, AND COMMUNICATION WITH PARENTS, RELATED TO PROGRAMS SUCH AS LKC, PRE-SCHOOL, KEEP, AND CLUBS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEE WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS EMAILED TO EACH OF THE ORGANIZATION'S GOVERNING BOARD MEMBERS FOR REVIEW PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH OFFICER, DIRECTOR, TRUSTEE, OR KEY EMPLOYEE MUST ANNUALLY SIGN A STATEMENT THAT AFFIRMS THAT SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY AND HAS AGREED TO COMPLY WITH THE POLICY. IF ANY PERSON WHO IS A DIRECTOR OR OFFICER IS AWARE THAT THE ORGANIZATION IS ABOUT TO ENTER INTO ANY BUSINESS TRANSACTION DIRECTLY OR INDIRECTLY WITH SUCH PERSON, ANY MEMBER OF THAT PERSON'S FAMILY, OR ANY ENTITY IN WHICH THAT PERSON HAS ANY LEGAL, EQUITABLE OR FIDUCIARY INTEREST OR POSITION, SUCH PERSON SHALL (A) IMMEDIATELY INFORM THOSE CHARGED WITH APPROVING THE TRANSACTION ON BEHALF OF THE ORGANIZATION OF SUCH PERSON'S INTEREST OR POSITION, (B) AID THE PERSONS CHARGED WITH MAKING THE DECISION BY DISCLOSING ANY MATERIAL FACTS WITHIN SUCH PERSON'S KNOWLEDGE THAT BEAR ON THE ADVISABILITY OF SUCH TRANSACTION FROM THE STANDPOINT OF THE ORGANIZATION, AND (C) NOT BE ENTITILED TO VOTE ON THE DECISION TO ENTER INTO SUCH TRANSACTION. A COPY OF THE CONFLICT OF INTEREST POLICY WILL BE MAINTAINED IN THE CORPORATE RECORDS, AND THE BOARD WILL REVIEW THAT POLICY ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 CERTAIN OF THE ORGANIZATION'S GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC THROUGH WEBSITES OF STATE GOVERNMENT AGENCIES. THE ORGANIZATION CONSIDERS SPECIFIC REQUESTS FOR ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ON A CASE-BY-CASE BASIS. FORM 990, PART XII, LINE 2C: NO CHANGES HAVE BEEN MADE TO THE OVERSIGHT PROCESS OR THE SELECTION PROCESS FROM THE PRIOR YEAR. 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