2026-05-13T09:57:40-05:00 2025-06-30 991856619 GRANT THORNTON ADVISORS LLC 757 THIRD AVENUE 9TH FLOOR NEW YORK NY 100172013 990 2024-07-01 760756768 HARLEM CHILDREN'S ZONE PROMISE ACADEMY CHARTER SCHOOL HARL 2123603255 245 W 129TH STREET NEW YORK NY 10027 JOHN MACAPAGAL CONTROLLER 2123603255 2026-05-13 1 0 SCOTT THOMPSETT P00741490 2125990100 2024 2025-03-06 01:10:19Z KWAME OWUSU-KESSE 35 EAST 125TH STREET NEW YORK NY 10035 28034547 0 X WWW.HCZPROMISE.ORG X 2004 NY TO PROVIDE HIGH QUALITY, STANDARDS-BASED ACADEMIC PROGRAMS FOR STUDENTS, GRADES K-12. 5 3 256 0 0 0 31827703 28034532 0 0 13 13 11993 2 31839709 28034547 194544 71651 0 0 23517441 21699259 0 0 0 7271234 7624511 30983219 29395421 856490 -1360874 78380702 75900339 9041986 7922497 69338716 67977842 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 27767652 71651 0 SEE SCHEDULE O 27767652 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 43 0 1 256 1 0 0 0 0 0 0 0 0 0 0 1 0 X 5 3 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X JOHN MACAPAGAL 2123603255 35 E 125TH STREET NEW YORK NY 10035 KWAME OWUSU-KESSE CEO & PRESIDENT 2.00 42.00 X X 0 1028455 247967 GEOFFREY CANADA CHAIRMAN 2.00 42.00 X X 0 815948 52967 MITCH KURZ TREASURER/SECRETARY 2.00 3.00 X X 0 0 0 KENNETH LANGONE CHAIRMAN EMERITUS (NON-VOTING) 2.00 3.00 X X 0 0 0 ELLANOR BODIE BRIZENDINE TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 STANLEY DRUCKENMILLER TRUSTEE (NON-VOTING) 2.00 3.00 X 0 0 0 DENISE FULLER THRU 062425 TRUSTEE (NON-VOTING) 2.00 2.00 X 0 0 0 WILLIE MAE LEWIS TRUSTEE 2.00 2.00 X 0 0 0 KEITH MEISTER TRUSTEE (NON-VOTING) 2.00 3.00 X 0 0 0 AISHA TOMLINSON THRU 062425 PARENT REP (NON-VOTING) 2.00 0.00 X 0 0 0 ALFONSO WYATT TRUSTEE 2.00 2.00 X 0 0 0 RALPH STEFANO CFO 2.00 42.00 X 0 356899 0 ACHIL PETIT THRU 082024 SUPERINTENDENT 20.00 20.00 X 1189653 0 87775 ARI BROWNE DIRECTOR, BUSINESS ADMIN 20.00 20.00 X 272709 0 73163 AMY DEAL PRINCIPAL (HIGH SCHOOL) 40.00 0.00 X 259015 0 41238 SASKIA BROWN DEPUTY SUPERINTENDENT 20.00 20.00 X 331503 0 90424 TOYA STILLEY DIRECTOR, OPERATIONS 20.00 20.00 X 262981 0 76651 2315861 2201302 670185 51 0 1 0 0 2310446 25381614 342472 92472 28034532 13 13 MISCELLANEOUS INCOME 900099 2 2 2 28034547 0 0 15 71651 71651 17094773 16069087 1025686 316374 297392 18982 2820127 2650919 169208 1467985 1379906 88079 79826 75036 4790 1731928 1628012 103916 271418 255133 16285 351027 330499 20528 1965318 1847399 117919 231767 231227 540 118238 111144 7094 306333 287953 18380 FOOD 1683981 1683981 TRAINING 304505 286235 18270 UNIFORMS 144187 144187 CLASSROOM SUPPLIES 134462 134462 301521 283429 18092 29395421 27767652 1627769 0 13247513 15128875 70869 70882 2081596 633957 306561 345026 1126065 638444 576917 487621 62097246 59233978 78380702 75900339 3058244 2806663 5983742 5115834 9041986 7922497 X 14379344 14850449 54959372 53127393 69338716 67977842 78380702 75900339 -1360874 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 358275 110190 248085 693206 484945 208261 74584 43309 31275 487621 DUE FROM RELATED PARTIES 5999398 CONTRIBUTED SPACE RECEIVABLE 53127393 OTHER ASSETS 27272 RIGHT-OF-USE ASSETS 79915 59233978 DEFERRED COMPENSATION PAYABLE 5030745 LEASE LIABILITY OBLIGATIONS 85089 5115834 X 28732849 698302 698302 28034547 0 28034547 30093723 698302 698302 29395421 0 29395421 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, 2025 OR 2024. 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 AGREEMENT AND THE CHARTER SCHOOLS ACT, THE SCHOOL IS ENTITLED TO RECEIVE FUNDING FROM STATE AND FEDERAL SOURCES THAT ARE AVAILABLE TO PUBLIC SCHOOLS. THESE FUNDS INCLUDE NEW YORK CITY PUPIL ENROLLMENT FUNDS, FEDERAL FOOD SUBSIDIES, AND TITLE I AND TITLE II FUNDS. THE CALCULATION OF THE AMOUNTS TO BE PAID TO THE SCHOOL UNDER THESE PROGRAMS IS DETERMINED BY THE STATE AND IS BASED ON COMPLEX LAWS AND REGULATIONS, ENROLLMENT LEVELS, AND ECONOMIC INFORMATION RELATED TO THE HOME SCHOOL DISTRICTS OF THE CHILDREN ENROLLED IN THE SCHOOL. IF THESE REGULATIONS, SOME OF WHICH ARE RELATIVELY NEW IN THE STATE OF NEW YORK, WERE TO CHANGE, OR OTHER FACTORS INCLUDED IN THE CALCULATIONS WERE TO CHANGE, THE LEVEL OF FUNDING THAT THE SCHOOL RECEIVES COULD VARY SIGNIFICANTLY. 1 INCENTIVES (GIFT CARDS) 60 71651 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. 1 1 0 0 0 0 0 1 0 ACHIL PETIT THRU 082024 SUPERINTENDENT 330601 0 728513 0 130539 0 77400 0 10375 0 1277428 0 678513 0 KWAME OWUSU-KESSE CEO & PRESIDENT 0 767509 0 260946 0 0 0 204900 0 43067 0 1276422 0 110946 GEOFFREY CANADA CHAIRMAN 0 513448 0 302500 0 0 0 9900 0 43067 0 868915 0 0 SASKIA BROWN DEPUTY SUPERINTENDENT 291503 0 40000 0 0 0 53395 0 37029 0 421927 0 0 0 RALPH STEFANO CFO 0 356899 0 0 0 0 0 0 0 0 0 356899 0 0 ARI BROWNE DIRECTOR, BUSINESS ADMIN 181118 0 91591 0 0 0 36134 0 37029 0 345872 0 69341 0 TOYA STILLEY DIRECTOR, OPERATIONS 176390 0 86591 0 0 0 39622 0 37029 0 339632 0 69341 0 AMY DEAL PRINCIPAL (HIGH SCHOOL) 186042 0 72973 0 0 0 32812 0 8426 0 300253 0 55473 0 PART I, LINES 4A-B FORM 990, SCHEDULE J, LINE 4(A): SUPERINTENDENT, ACHIL PETIT'S CALENDAR YEAR END 2024 COMPENSATION IS COMPRISED OF SEVERAL DIFFERENT COMPONENTS: - A SEVERANCE PAYMENT IN THE AMOUNT OF $130,549. THIS AMOUNT IS REPORTED IN SCHEDULE J, PART II, COLUMN (B)(III). - PAYOUT OF HIS ACCUMULATED GROWTH FUND IN THE AMOUNT OF $678,513. THIS AMOUNT IS REPORTED IN SCHEDULE J, PART II, COLUMN (B)(II). - A FINAL PERFORMANCE BONUS IN THE AMOUNT OF $50,000. THIS AMOUNT IS REPORTED IN SCHEDULE J, PART II, COLUMN (B)(II). FORM 990, SCHEDULE J, LINE 4(B): 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 2024, 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 2024 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 92472 FMV 0 1 0 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. OUR APPROACH IS TO ADDRESS THE WHOLE CHILD, AND TO DO SO OVER YEARS AND YEARS. THAT MEANS WE OFFER A HIGH-QUALITY EDUCATION, AND WE ALSO DO WHATEVER IT TAKES TO ADDRESS ANY ISSUE EVEN THOSE OUTSIDE THE CLASSROOM THAT CAN HINDER A CHILD'S SUCCESS. WE HAVE HUNDREDS OF EXPERIENCED FACULTY DEDICATED TO FOSTERING OUR SCHOLARS' INTELLIGENCE, HEALTH, CHARACTER, AND CIVIC-MINDEDNESS. OUR TWO K-12 SCHOOLS HAVE LONGER SCHOOL DAYS AND YEARS THAN TRADITIONAL PUBLIC SCHOOLS, SO SCHOLARS HAVE THE TIME THEY NEED TO MASTER THEIR CORE SUBJECTS AND TO FULLY EXPERIENCE THE SCIENCES, THE ARTS, AND PHYSICAL FITNESS. 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. HARLEM CHILDREN'S ZONE PROMISE ACADEMY I CONSISTS OF THE ELEMENTARY, MIDDLE, AND HIGH SCHOOLS, ALL OF WHICH OPERATE AT A SINGLE, DEDICATED SITE LOCATED AT 245 WEST 129TH STREET IN CENTRAL HARLEM. FOR MORE DETAILED INFORMATION ABOUT THE ACADEMY'S PROGRAMMATIC ACTIVITIES, PLEASE VISIT WWW.HCZPROMISE.ORG. 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. 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: THE PROMISE ACADEMY SHARES CERTAIN EXPENSES WITH ITS AFFILIATED ORGANIZATIONS, HARLEM CHILDREN'S ZONE ("HCZ") AND THE HARLEM CHILDREN'S ZONE PROMISE ACADEMY II. THESE SHARED EXPENSES INCLUDE PRORATED SALARIES AND OTHER EXPENSES THAT ARE ALLOCATED AMONGST THE ENTITIES. THE NET IMPACT OF THESE SHARED SERVICES IS THAT THE HARLEM CHILDREN'S ZONE PROMISE ACADEMY I RECORDS A DUE FROM RELATED PARTIES TOTALING $1,678,822 ON ITS BALANCE SHEET. HCZ ALSO PROVIDES THE CHARTER SCHOOL WITH CERTAIN SERVICES AT NO COST. THESE SERVICES HAVE BEEN VALUED AT $698,302. 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 $53,127,393. 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 2025, HCZ PROVIDED A SUBSIDY OF $890,786 FOR THE FISCAL 2025 CONTRIBUTION TO THE 457(F) PLAN. IN ADDITION TO THE 457(F) PLAN SUBSIDY, THE ACADEMY ALSO RECEIVED ADDITIONAL GRANT FUNDING IN THE AMOUNT OF $1,419,660 FROM THE HARLEM CHILDREN ZONE, (FOR A TOTAL CASH FUNDING OF $2,310,446 FOR THE YEAR ENDING JUNE 30, 2025).