2017-12-19T06:04:00-06:00 2017-06-30 521511275 RAFFA PC 1899 L STREET NW SUITE 850 WASHINGTON DC 20036 990 2016-07-01 237425256 THE FOUNDATION SCHOOLS FOUN 3018810078 6000 EXECUTIVE BOULEVARD NO 605 ROCKVILLE MD 20852 GINA JAMES CEO 3018810078 2017-12-19 1 FRANK H SMITH P00639053 2028225000 2017-12-19 207.238.152.33 2017-12-19 07:03:43 ES P 248DEB9EEDB6BAD9CF18FF838D0EF823C1BE4C2C DAB48F1DB241BD34F7C51364F39BEF4B5B3312C9 2016 2018-03-14 21:41:22Z GINA JAMES 6000 EXECUTIVE BOULEVARD NO 605 ROCKVILLE MD 20852 15594624 0 X WWW.FOUNDATIONSCHOOLS.ORG X 1975 DC PROVIDE SPECIALIZED EDUCATIONAL AND THERAPEUTIC PROGRAMS FOR STUDENTS WITH EMOTIONAL DISABILITIES. 11 11 187 13 0 0 408209 528753 14682864 15034212 10231 14857 -45582 -46463 15055722 15531359 3285 2900 0 0 11274853 11317020 0 0 227454 3723741 3993321 15001879 15313241 53843 218118 12925980 12736541 6411025 6003468 6514955 6733073 X THE SPECIFIC AND PRIMARY PURPOSES FOR WHICH THE FOUNDATION SCHOOLS (THE SCHOOLS) IS ORGANIZED AND SHALL BE EXCLUSIVELY OPERATED ARE: (1) TO PROVIDE SPECIALIZED EDUCATIONAL AND THERAPEUTIC PROGRAMS FOR STUDENTS WITH EMOTIONAL DISABILITIES (2) TO PREPARE EMOTIONALLY DISABLED CHILDREN TO BECOME INTEGRATED MEMBERS OF THE COMMUNITY AT LARGE; AND (3) TO ASSIST EMOTIONALLY DISABLED CHILDREN TO BECOME PRODUCTIVE AND SUCCESSFUL AFTER LEAVING SECONDARY SCHOOL IN THEIR ACADEMIC AND/OR CAREER PATHS. 0 0 13835853 2900 15034212 THE SCHOOLS IS COMMITTED TO A HOLISTIC APPROACH IN DEVELOPING INNOVATIVE PROGRAMS AND ANCILLARY SUPPORT SERVICES WHICH ADDRESS THE EDUCATIONAL, SOCIAL, AND EMOTIONAL NEEDS OF CHILDREN AND ADOLESCENTS BY UTILIZING THE LATEST TECHNIQUES IN EDUCATION, PSYCHOLOGY, PSYCHIATRY, SOCIAL SERVICES, AND PSYCHOPHARMACOLOGY. THE SCHOOLS' PROGRAM SERVICE CONSISTS OF OPERATING TWO SCHOOLS IN THE GREATER WASHINGTON METROPOLITAN AREA WHICH PROVIDE BOTH PRIMARY AND SECONDARY EDUCATION TO STUDENTS WHO HAVE BEEN UNSUCCESSFUL IN LESS RESTRICTIVE SETTINGS AND HAVE BEEN TRANSFERRED FROM LOCAL SCHOOL DISTRICTS. 13835853 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 5 0 1 187 1 0 0 0 0 0 1 1 0 0 0 0 X 11 11 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 0 0 MD VA X LORE PERCIVAL 3018810078 6000 EXECUTIVE BOULEVARD 605 ROCKVILLE MD 20852 CARLA HARGROVE MCGILL CHAIRMAN 4.00 X X 0 0 0 ERIC RANDOLPH VICE CHAIRMAN 3.00 X X 0 0 0 THOMAS M DEGONIA II ESQ TREASURER 2.00 X X 0 0 0 ADE ADEBISI DIRECTOR 1.00 X 0 0 0 ANDREA R ADLER LCSW-C DIRECTOR 1.00 X 0 0 0 VALERIE BARTON DIRECTOR 1.00 X 0 0 0 JAMES W CORNELSEN DIRECTOR 1.00 X 0 0 0 ANDRE J GINGLES ESQ DIRECTOR 3.00 X 0 0 0 ERIC HARRIS DIRECTOR (UNTIL 09/2016) 1.00 X 0 0 0 TARA JACKSON ESQ DIRECTOR 1.00 X 0 0 0 FRIEDA K LACEY EDD DIRECTOR 1.00 X 0 0 0 NEENA MASIH DIRECTOR 1.00 X 0 0 0 GREGORY STEVE PROCTOR DIRECTOR (UNTIL 09/2016) 1.00 X 0 0 0 GINA JAMES CEO 50.00 X 197850 0 22243 LORE PERCIVAL CFO/SECRETARY 50.00 X 212175 0 29794 MICHELLE LIEBERMAN DIRECTOR OF HR 40.00 X 132782 0 16555 YVETTE COLVIN DIRECTOR OF OPERATIONS 40.00 X 122481 0 15650 KELLI KUNERT DIRECTOR OF PR & DEVELOPMENT 40.00 X 119267 0 10369 MARK DEEGAN DIRECTOR OF TECHNOLOGY 40.00 X 116478 0 25322 TORI WILSON SCHOOL PRINCIPAL 40.00 X 104850 0 9038 GALE NAQUIN FORMER CEO (UNTIL 02/2016) 50.00 X 159514 0 1218 1165397 0 130189 9 1 1 0 ALIGN STAFFING 7474 GREENWAY CTR DRIVE 620 GREENBELT MD 20770 TEMPORARY STAFFING 650894 ASSOC BUILDING MAINTENANCE COMPANY 2140 PRIEST BRIDGE CT 3 CROFTON MD 21114 JANITORIAL & MAINTENANCE 213297 COMPLETE HEALTHCARE STAFFING 5800 SILENT SUN PL CLARKSVILLE MD 21029 TEMPORARY STAFFING 167256 PG CNT PUB SCH FOOD & NUTR SRV 13300 OLD MARLBORO PK UPP MARLBORO MD 20772 CATERING SERVICES 119625 GEORGE WASHINGTON UNIVERSITY 45155 RESEARCH PLACE ASHBURN VA 20147 INTERNSHIPS 115403 6 1002 164337 20000 343414 32879 528753 TUITION 900099 14527038 14527038 THERAPEUTIC SERVICES 900099 363560 363560 STUDENT MEAL PROGRAM 900099 88349 88349 E-RATE PROGRAM 900099 51376 51376 TRAINING INSTITUTION 900099 3889 3889 15034212 14857 14857 16640 164337 63265 -46625 -46625 MISCELLANEOUS 900099 162 162 162 15531359 15034212 0 -31606 2900 2900 491318 245575 224142 21601 8378355 7730877 505301 142177 471658 385535 75425 10698 1284111 1229816 50385 3910 691578 630434 48112 13032 67068 67068 47311 47311 1486109 1446152 39839 118 8196 7724 259 213 136389 112061 21396 2932 96668 81115 10393 5160 1355894 1210180 140723 4991 10068 4785 4180 1103 21246 4217 17029 361278 350261 7417 3600 66269 59715 6554 INSTR. & STUDENT SERV. 318133 318133 DUES 18692 16373 1429 890 15313241 13835853 1249934 227454 760600 471410 4172454 4776325 1752977 1656375 104116 108646 10690729 5006964 5977242 5683765 118571 40020 40020 12925980 12736541 802502 700319 5549398 5247312 59125 55837 6411025 6003468 X 6501321 6722089 13634 10984 6514955 6733073 12925980 12736541 218118 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1037165 1037165 8110260 3559382 4550878 122751 108169 14582 1384553 1304934 79619 36000 34479 1521 5683765 DEFERRED RENT 55837 55837 X 15624062 46078 46625 92703 15531359 0 15531359 15405944 46078 46625 92703 15313241 0 15313241 PART X, LINE 2: THE SCHOOLS PERFORMED AN EVALUATION OF UNCERTAINTY IN INCOME TAXES FOR THE YEARS ENDED JUNE 30, 2017 AND 2016, AND DETERMINED THAT THERE WERE NO MATTERS THAT WOULD REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS OR THAT MAY HAVE ANY EFFECT ON ITS TAX-EXEMPT STATUS. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 46,625. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 46,625. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 WE DO NOT SOLICIT STUDENTS AS THEY ARE REFERRED BY LOCAL PUBLIC SCHOOL SYSTEMS. WE HAVE PRINTED MATERIALS THAT ARE DISTRIBUTED TO PARENTS AND ANY OTHER INTERESTED PARTIES DURING THE REFERRAL PROCESS. SCHEDULE E, PART I, LINE 6 A SUBSTANTIAL PORTION OF THE TUITION AND RELATED SERVICES REVENUE EARNED BY THE SCHOOLS IS PAID BY THE LOCAL JURISDICTIONS OF THE STATE OF MARYLAND AND THE DISTRICT OF COLUMBIA. FOR THE YEAR ENDED JUNE 30, 2017, THE REVENUE ATTRIBUTABLE TO SUCH CONTRACTS TOTALED $14,890,598 OF THE SCHOOLS' TOTAL REVENUE AND SUPPORT. REVENUE EARNED FROM THE LOCAL JURISDICTIONS OF MARYLAND AND THE DISTRICT OF COLUMBIA REPRESENTS APPROXIMATELY 95% OF THE TOTAL REVENUE AND SUPPORT RECOGNIZED BY THE SCHOOLS FOR THE YEAR ENDED JUNE 30, 2017. DINNER AND AUCTION 180977 164337 16640 17907 9885 19449 16024 180977 164337 16640 17907 9885 19449 16024 63265 -46625 X X X X X 1 0 0 0 0 0 0 0 0 GINA JAMES CEO 196549 0 1301 0 0 0 6034 0 16209 0 220093 0 0 0 LORE PERCIVAL CFO/SECRETARY 210874 0 1301 0 0 0 17311 0 12483 0 241969 0 0 0 GALE NAQUIN FORMER CEO (UNTIL 02/2016) 47014 0 0 0 112500 0 0 0 1218 0 160732 0 0 0 PART I, LINE 4A GALE NAQUIN, WHO SERVED AS CEO FROM JULY 1, 2015 UNTIL FEBRUARY 1, 2016, RECEIVED A SEVERANCE OF $112,500 DURING MARCH 2016. A MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY 520936091 2012-07-25 6220995 REFUNDING MHHEFA BOND DEBT ISSUED NOVEMBER 2002 0 0 0 A 6105000 115995 1 0 1 1 A 0 0 0 0 0 0 1 A 0 0 0 0 0 0 0 0 0 A 0 OLD LINE BANK DIR OF THE SCHOOLS AND PRES. OF OLB, CHAIRMAN OF THE SCHOOLS AND DIR.OF OLB 161748 THE SCHOOLS ENTERED INTO DEBT AGREEMENTS WITH OLB, A LOAN IN THE AMOUNT OF $6,220,995 AND REVOLVING LINE OF CREDIT OF $2,000,000. INTEREST PAID BY THE SCHOOLS WAS $161,748 IN FY17. THE CHAIR OF THE SCHOOL'S BOARD OF DIRECTORS, CARLA HARGROVE MCGILL, IS A BOARD MEMBER OF OLD LINE BANK AND DIRECTOR JAMES W. CORNELSEN, IS THE PRESIDENT OF OLD LINE BANK. IN ADDITION, ANDRE J. GINGLES SERVES ON THE SCHOOLS BOARD OF DIRECTORS AS WELL AS ON THE OLD LINE BANK BOARD OF DIRECTORS. AFTER CONSULTATION WITH OUTSIDE COUNSEL, THE DECISION TO ENTER INTO A TRANSACTION WITH OLD LINE BANK WAS APPROVED BY THE BOARD OF DIRECTORS COMPOSED ENTIRELY OF INDIVIDUALS UNRELATED TO AND NOT SUBJECT TO THE CONTROL OF THE DISQUALIFIED PERSONS WHO WERE AND ARE AFFILIATED WITH OLD LINE BANK. 0 X 3808 FMV X 1911 FMV X 33 3193 FMV X FUNDR. EVENTS 10 17907 FMV X COMPUTERS 2 3000 FMV X SCHOOL SUPP. 5 2702 FMV X STUDENT EVENTS 29 358 FMV 0 0 0 PART I, COLUMN (B): THE TOTAL REPRESENTED IN PART I, COLUMN (B) REPRESENTS THE NUMBER OF CONTRIBUTIONS THAT WERE RECEIVED FOR THE YEAR ENDED JUNE 30, 2017. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO OTHER COMMITTEES THAT MAY ACT ON BEHALF OF THE FULL BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B THE SCHOOLS' OUTSIDE ACCOUNTING FIRM COMPLETES THE TAX RETURN. THE DRAFT VERSION OF THE FEDERAL FORM 990 IS FIRST REVIEWED BY THE SCHOOLS BOARD OF DIRECTORS AUDIT COMMITTEE AND THEN SUBMITTED TO THE FULL BOARD OF DIRECTORS FOR REVIEW PRIOR TO SUBMITTING TO THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY COVERS BOARD MEMBERS AND ALL EMPLOYEES OF THE SCHOOLS. EACH DIRECTOR AND OFFICER IS REQUIRED TO MAKE AND SIGN AN ANNUAL STATEMENT THAT THEY ARE AWARE OF AND IN COMPLIANCE WITH THE POLICY. THE POLICY IS ACTIVELY ENFORCED AND MONITORED BY OFFICERS OF THE SCHOOLS. OFFICERS HAVE THE RESPONSIBILITY TO ENSURE THAT THE SCHOOLS GOALS ARE TRANSPARENT IN EACH TRANSACTION THAT THE SCHOOLS ENGAGE IN. IF A REAL OR POTENTIAL CONFLICT ARISES, THE INTERESTED PARTY IS PRECLUDED FROM VOTING IN CONNECTION WITH THE MATTER. FORM 990, PART VI, SECTION B, LINE 15A THE SCHOOLS BOARD OF DIRECTORS WANTS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS ARE BEING REVIEWED IN SUCH A MANNER AS TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS AS SET FORTH UNDER IRC SECTION 4958. THE BOARD OF DIRECTORS HAS NAMED AN EXECUTIVE COMPENSATION COMMITTEE COMPRISED OF "DISINTERESTED" DIRECTORS TO OVERSEE EXECUTIVE COMPENSATION. RESPONSIBILITIES INCLUDE: 1. THE COMMITTEE HAS ENGAGED AN INDEPENDENT COMPENSATION CONSULTANT OR FIRM TO CONDUCT A MARKET COMPENSATION STUDY WHICH WOULD INCLUDE SURVEYS AND REVIEW OF PUBLICLY ACCESSIBLE FEDERAL FORM 990 INFORMATION OF COMPARABLE ORGANIZATIONS. 2. A CONTEMPORANEOUS WRITTEN RECORD IS MADE TO DOCUMENT THE COMMITTEE'S THOROUGHNESS AND RATIONALE FOR ITS DECISION. 3. RECOMMENDED COMPENSATION IS PRESENTED BY THE COMMITTEE TO THE FULL BOARD OF DIRECTORS FOR APPROVAL. THESE PROCEDURES WERE LAST PERFORMED DURING 2015. FORM 990, PART VI, SECTION C, LINE 19 THE SCHOOLS' FEDERAL FORM 990, CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS AND OTHER GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST.