Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,452,255

• 1e · Government grants (contributions)

  $25,894,831

• 1f · All other contributions, gifts and grants

  $587,241

• 1g · Noncash contributions included above

  $87,241

• 3 · Investment income

  total $20 · excluded $20

• 11a · Other revenue: MISCELLANEOUS INCOME

  total $1,758 · excluded $1,758

• 11e · Other revenue, total

  $1,758

Functional expenses

Part IX, the statement of functional expenses.

• 2 · Grants to domestic individuals

  total $175,678 · program services $175,678

• 7 · Other salaries and wages

  total $14,676,062 · program services $13,898,231 · management and general $777,831

• 8 · Pension plan contributions

  total $314,793 · program services $298,109 · management and general $16,684

• 9 · Other employee benefits

  total $2,326,139 · program services $2,202,854 · management and general $123,285

• 10 · Payroll taxes

  total $1,220,605 · program services $1,155,913 · management and general $64,692

• 11c · Fees: accounting

  total $89,279 · management and general $89,279

• 11g · Fees: other

  total $1,326,808 · program services $1,256,487 · management and general $70,321

• 13 · Office expenses

  total $234,121 · program services $221,713 · management and general $12,408

• 14 · Information technology

  total $411,751 · program services $389,928 · management and general $21,823

• 16 · Occupancy

  total $5,311,922 · program services $4,999,355 · management and general $312,567

• 17 · Travel

  total $227,541 · program services $226,699 · management and general $842

• 22 · Depreciation, depletion and amortization

  total $36,199 · program services $34,280 · management and general $1,919

• 23 · Insurance

  total $315,366 · program services $298,652 · management and general $16,714

• 24a · Other expenses: FOOD

  total $1,334,092 · program services $1,334,092 · management and general $0

• 24b · Other expenses: CLASSROOM SUPPLIES

  total $319,887 · program services $319,887 · management and general $0

• 24c · Other expenses: TRAINING

  total $291,243 · program services $275,807 · management and general $15,436

• 24d · Other expenses: UNIFORM

  total $139,338 · program services $139,338

• 24e · All other expenses

  total $390,035 · program services $369,363 · management and general $20,672

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $6,717,508 · end of year $314,541

• 2 · Savings and temporary cash investments

  beginning of year $70,867 · end of year $70,881

• 3 · Pledges and grants receivable

  beginning of year $2,028,920 · end of year $7,005,941

• 9 · Prepaid expenses and deferred charges

  beginning of year $705,400 · end of year $318,066

• 10a · Land, buildings and equipment: cost or other basis

  $642,345

• 10b · Land, buildings and equipment: accumulated depreciation

  $356,859

• 10c · Land, buildings and equipment, net

  beginning of year $89,415 · end of year $285,486

• 15 · Other assets

  beginning of year $1,991,000 · end of year $59,503,581

• 17 · Accounts payable and accrued expenses

  beginning of year $2,591,200 · end of year $2,864,944

• 25 · Other liabilities

  beginning of year $5,408,386 · end of year $61,299,933

• 27 · Net assets without donor restrictions

  beginning of year $3,603,524 · end of year $3,333,619

The filer's explanations (Part III)

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 THE HARLEM CHILDREN'S ZONE OR THE EMPLOYEE. THE AMOUNTS CONTRIBUTED BY THE 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 2022, EMPLOYEES RECEIVED A PAYOUT OF DEFERRED COMPENSATION FROM THE GROWTH FUND 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 2022 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 II EMPLOYEES ARE DETERMINED BY THE CEO, KWAME OWUSU-KESSE, WITH INPUT FROM THE SUPERINTENDENT. ALL BONUSES ARE PERFORMANCE BASED AND THE RECIPIENTS ARE NOT PROVIDED ANY INPUT INTO THE AMOUNT OF THE BONUS RECEIVED.