2014-12-08T12:42:45-06:00 2014-06-30 521511275 RAFFA PC 1899 L STREET NW SUITE 900 WASHINGTON DC 20036 990 2013-07-01 237425256 THE FOUNDATION SCHOOLS FOUN 3018810078 6000 EXECUTIVE BOULEVARD NO 605 ROCKVILLE MD 20852 ANDREA ADLER CEO 3018810078 2014-12-08 1 FRANK H SMITH P00639053 2028225000 2014-12-08 2013 2015-11-30 17:44:51Z ANDREA ADLER 6000 EXECUTIVE BOULEVARD NO 605 ROCKVILLE MD 20852 15514746 0 X WWW.FOUNDATIONSCHOOLS.ORG X 1975 DC PROVIDE SPECIALIZED EDUCATIONAL AND THERAPEUTIC PROGRAMS FOR STUDENTS WITH EMOTIONAL DISABILITIES. 14 14 181 14 0 0 424294 470914 14632883 14993103 4203 6439 -30179 -28902 15031201 15441554 1784 709 0 0 10308443 10866428 0 0 241374 3732568 3667962 14042795 14535099 988406 906455 12390733 13094215 7210778 7007805 5179955 6086410 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 12813150 709 14993103 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. 12813150 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 7 0 1 181 1 0 0 0 0 0 1 1 0 0 0 0 X 14 14 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 CFOSECRETARY 3018810078 6000 EXECUTIVE BOULEVARD 605 ROCKVILLE MD 20852 ANDRE J GINGLES ESQ CHAIRMAN 2.50 X X 0 0 0 CHARLES H ATWELL VICE-CHAIRMAN 3.50 X X 0 0 0 THOMAS M DEGONIA II ESQ TREASURER 2.00 X X 0 0 0 RICHARD ABBRUZZESE 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 ERIC HARRIS DIRECTOR 1.00 X 0 0 0 TARA JACKSON 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 CARLA HARGROVE MCGILL DIRECTOR 4.00 X 0 0 0 GREGORY STEVE PROCTOR JR DIRECTOR 1.00 X 0 0 0 ERIC RANDOLPH DIRECTOR 1.00 X 0 0 0 SIOBHAN RODDY WILAN DIRECTOR 1.00 X 0 0 0 ANDREA ADLER CEO 50.00 X 276182 0 30829 LORE PERCIVAL CFO/SECRETARY 50.00 X 213223 0 26314 SHEILA CAHILL SCHOOL DIRECTOR 50.00 X 209857 0 30007 GINA JAMES SCHOOL DIRECTOR 50.00 X 169058 0 20743 MICHELLE LIEBERMAN DIR. OF HR 40.00 X 130440 0 14694 YVETTE COLVIN DIR. OF ADMIN. SVCS. 40.00 X 119361 0 14333 MARK DEEGAN DIR. TECHNOLOGY 40.00 X 114057 0 21423 KELLI KUNERT DIR. OF PR & DEVELOPMENT 32.00 X 116820 0 10111 CYNTHIA WEDDINGTON-RUHL CLINICAL DIRECTOR 40.00 X 105801 0 19765 1454799 0 188219 9 0 1 0 ALIGN STAFFING 7474 GREENWAY CTR DRIVE 620 GREENBELT MD 20770 TEMPORARY STAFFING 534289 COMPLETE HEALTHCARE STAFFING 5800 SILENT SUN PL CLARKSVILLE MD 21029 TEMPORARY STAFFING 235674 ASSOC BUILDING MAINTENANCE COMPANY 2140 PRIEST BRIDGE CT 3 CROFTON MD 21114 JAN. AND MAINT. SERVICES 185345 GEORGE WASHINGTON UNIVERSITY 45155 RESEARCH PLACE ASHBURN VA 20147 STUDENT INTERNS 133614 PG CNT PUB SCH FOOD & NUTR SRV 13300 OLD MARLBORO PK UPP MARLBORO MD 20772 CATERING SERVICES 117693 6 159920 310994 50258 470914 TUITION 900099 14819416 14819416 STUDENT MEAL PROGRAM 900099 98515 98515 E-RATE PROGRAM 900099 51386 51386 OTHER SERVICES 900099 23786 23786 14993103 6439 6439 44254 159920 73192 -28938 -28938 MISCELLANEOUS INCOME 900099 36 36 36 15441554 14993103 0 -22463 709 709 1010662 700651 273690 36321 7792864 7116983 543066 132815 406821 325191 74343 7287 973529 915939 56638 952 682552 618571 50427 13554 22188 22188 41299 41299 1067260 996365 57118 13777 35720 9615 1151 24954 159109 125823 24737 8549 95469 75852 18802 815 1382030 1163300 218730 38735 32091 4294 2350 382567 374688 7879 81165 81165 INSTR. & STUDENT SERV. 345010 345010 DUES 17410 12362 5048 14535099 12813150 1480575 241374 1610915 3362504 902810 1002590 2797312 1913064 77233 83244 10660696 4097767 6826933 6562929 135510 129864 40020 40020 12390733 13094215 919161 922360 6084032 5910915 207585 174530 7210778 7007805 X 5125573 6017958 54382 68452 5179955 6086410 12390733 13094215 906455 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1037165 1037165 8110260 2748356 5361904 97124 59887 37237 1416147 1289524 126623 6562929 DEFERRED RENT 174530 174530 X 15527246 12500 73192 85692 15441554 0 15441554 14620791 12500 73192 85692 14535099 0 14535099 PART X, LINE 2: THE SCHOOLS PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEAR ENDED JUNE 30, 2014 AND 2013, 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 73,192. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 73,192. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 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. DINNER AND AUCTION 204174 159920 44254 29254 10760 15715 17463 204174 159920 44254 29254 10760 15715 17463 73192 -28938 X X X X X 0 0 0 0 0 0 0 0 0 ANDREA ADLER CEO 276081 0 0 0 101 0 20400 0 10429 0 307011 0 0 0 LORE PERCIVAL CFO/SECRETARY 209622 0 3500 0 101 0 16348 0 9966 0 239537 0 0 0 SHEILA CAHILL SCHOOL DIRECTOR 206256 0 3500 0 101 0 17224 0 12783 0 239864 0 0 0 GINA JAMES SCHOOL DIRECTOR 165457 0 3500 0 101 0 8288 0 12455 0 189801 0 0 0 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 0.00000 0.00000 0.00000 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 177793 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 APPROXIMATELY $177,793 IN FY14. THE CHAIRMAN OF THE SCHOOL'S BOARD OF DIRECTORS, ANDRE J. GINGLES, IS A BOARD MEMBER OF OLD LINE BANK AND DIRECTOR JAMES W. CORNELSEN, IS THE PRESIDENT OF OLD LINE BANK. IN ADDITION, CARLA HARGROVE MCGILL AND GREGORY STEVE PROCTOR, JR. BOTH SERVE ON THE SCHOOLS BOARD AS WELL AS ON THE OLD LINE BANK BOARD. 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 2394 FMV X 975 FMV X 2 1680 FMV X FUNDR. EVENTS 9 39493 FMV X SCHOOL SUPP. 1 3216 FMV X STUDN. EVENTS 1 2500 FMV 0 0 0 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 11 THE SCHOOLS' OUTSIDE ACCOUNTING FIRM COMPLETES THE TAX RETURN. IT 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, OFFICER, AND KEY EMPLOYEE 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 FOUNDATION 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 IN 2009. 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.