The form 990 is the tax report we must make to the feds every year about our finances, policies, and various activities over the recently completed fiscal year, in this case 1 July 22 through 30 June 23. We have to file it by 15 November (though we’ve had extensions on some years when Norm took extra time).
It’s a massive document of 44 pages this time. To save space in email and your time reading any of it, I broke it up into 10 parts, with notes about what each contains. I put them up on the website on this non-public page. Each blue text is a link to a part of the form 990. The posting is non-public because the form is still a draft; Norm and Sonya have to make changes I’ve described in the email body to all of you. After the document is final, I’ll post it on our website, as we’re required to do as one option. David, do you have suggestion about where it should go on the site?
990 per se; 12 pages – the core of the 990: summary of finances and important questions to answer
Sched(ule) A; 8 pages – statement of how we get and use public funds – we don’t, so these pages have no entries. Oops, 2 extra pages, also with no entries, are here.
Sched(ule) D; 5 pages – supplemental financial statements – only item on p. 3 reports that we have a building deposit in the amount of $31,243 and a security deposit in the amount of $7,000
Sched(ule) E; 2 pages – schools – we answer standard questions about students and non-discrimination
Sched(ule) O; 1 page – text that details answers we made on other parts, such as relatedness among Board members and being able to reach them at our address
Amortization 4562; 3 pages – Norm and Sonya apply standard decreases in value of assets over the years
Federal asset report; 3 pages – a list of things we hold as assets, such as computers, furniture, etc., and the depreciation applied to their values
Officer information; 7 pages – one page for each of us; I am adding addresses and estimated hours per week on Board work
Event income and deduction worksheet; 2 pages – a brief summary of our finances
Federal statements – one page with our bank info and accounts payable
Things to check or change:
Cover page, 990:
Part I, lines 3-6:
Number of voting members on Board: change 7 to 6 (Kim Cichuniec dropped out)
Number of independent voting members: change 5 to 4 (David and I are related)
Total number of individuals employes Change 0 to 6
Total number of volunteers: Change 0 to 10
I checked the numbers in the dollar figures; they’re very close, with a minor change noted later. I had to go to cash basis from accrual basis that I usually use in QuickBooks.
Part IV, lotsa lines:
Line 8: Do we have art collections? I take it that our cultural artifacts count elsewhere
Line 10: Do we have donor-restricted endowments? Not as endowments, only as donations, and these have been spent out as directed (donation from BFF Enterprises with condition that Lou Ellen teach life skills course)
Line 11a: Do we have an amount for land, buildings, and equipment…?: “Yes” is checked, but there’s no entry in Schedule D, Part VI
Line 26: Are there receivables due to a founder?: Marked “No,” but shouldn’t it be “Yes,” given the note payable to Lou Ellen?
Part V, a number of lines:
Line 1a: Number of 1096 forms reported: Change blank to 1 (we sent a 1099 to Prestons, hence, filed a 1099)
Line 2a: Number of employees on IRS form W-3: Change blank to 6
Line 2b: Did we file the tax returns? Change blank to “Yes”
Part VI, many lines:
Section A, line 1a: Number of voting members of Board at end to tax year: Change 7 to 6, as in Part I
Section A, line 1b: Number of independent voting members: Change 5 to 4, as in Part I
Section B, line 11a: Do we provide a complete copy of the form 990 to all Board members before filing? Change “No” to “Yes” – I’m sending the annotated draft to everyone.
Section B, line 12b: Do Board members have to report any conflicts of interest? Change “No” to “Yes”
Section B, line 13: Do we have a whistleblower policy?: Change “No” to “Yes,” though we haven’t brought it up lately
Part VII:
In the listing of Board members, remove Kim Cichuniec
Schedule O:
Remove Kim Cichuniec name
Officer Information: I can add addresses and hours per week:
Pritish: 340 Assiniboine Road, Toronto, Ontario M3J 1P3, Canada
Hours per week (ca. 13/52) = 0.25
Vince: 4904 CALABAZILLA DR, Las Cruces, NM, 88011 -7655
Hours per week: 10
David: 339 Santa Diana Terrace, Apt. 206, Sunnyvale, CA, 94085
Hours per week: (ca. 35/52) = 0.6
Kim: Remove her entry
Paul: 4815 AGAVE DR, Las Cruces, NM, 88001
Hours per week (ca. 20/52) = 0.4
Sue: 4975 Tobosa Rd, Las Cruces, NM, 88011
Hours per week (ca. 13/52) = 0.25
Not on form 990 but it financial statement:
Page (unnumbered) re Governing body and management:
Line 1a: Number of voting members: change 7 to 6
Line 1b: Number of independent voting members: change 5 to 4
Page 7: Remove Kim Cichuniec from list of Board members
On page 11 of the form 990: I have notes where I calculated amounts:
Cash in savings and temporary cash: Norm has 333,244, I have 333,132 as amounts in accounts 1031 (321,193.54) and 1045 (11,938.56) – do I also count 1040, share account, at 105.16, making it 333,238?
Salaries and benefits: Norm has 209,565.
Norm and I both show salaries as 192,826
Adding in payroll taxes on salaries, Norm has 15,309, I have 15,206
The difference is certainly from cash basis vs. accrual basis
Norm also adds in workers’ compensation insurance in the amount of 1,430
In chart of accounts: Salary for Rebecca Dankert came up in Salaries – instructional (17210), but as she is the custodian, these should go into Salaries – support (17220). We need to correct this, and I need to change Rebecca’s pay in QuickBooks to 17220
Under Occupancy, what do I count? Norm has a total of 88,268
Rent, yes – 72,000
Property insurance for Preston – 7,612
Property tax for Preston – 8,284
Utilities – 7,620
No combination of these adds up to 88,268