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82nd Street Academics

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									        82nd Street Academics
                     ANNUAL REPORT 2008


         STEPS
                    TO COLLEGE

EARLY
                                                Mission Statement

 82nd Street Academics will offer educa onal programs that complement public educa on so
  that students, regardless of home language in Northern Queens, will have equal access to
                                  quality higher educa on.




                                                     Values

   In the spring of 2008, the Board of Directors and senior management of 82nd Street Academics
 agreed on ?ve core values that characterize our school. The values have become an integral part of
  our staff training and our organiza onal assessment. In the following pages, you will read how the
                values have in?uenced our thinking in the management of the school.


                          We offer highest quality, affordable educa onal programs.

                                We maintain a healthy, safe, clean environment.

                        We provide exemplary customer service and family rela ons.

                               We show interest in all student needs in our area.

                We express our Chris an origin and believe that God has created each child
                             with unique and needed gi s for this society.


                                                Facts at a Glance



                 Student Enrollment                                           82nd Street Academics Revenue
700                                                           1200000
600
                                                              1000000
500
                                                               800000
400
                                                               600000
300
200                                                            400000

100                                                            200000
 0                                                                  0
      2003-04 2004-05 2005-06 2006-07 2007-08
                                                                        2003-04 2004-05 2005-06 2006-07 2007-08
Letter to Our Community and Employees

Dear Friends,

      82nd Street Academics has been helping students of Jackson Heights and Northwest
Queens with educational support since 1974. Over that time, we have worked to understand
each child, support families, and bring out the best in our students.

       It’s fair to say that this year has been one of the most unusual in the history of the
school. More students are attending, we have expanded our program offerings, and we have a
formal plan to guide us into the future. We took one step of correction as we failed to find
funding for an anti-gang initiative.

        The community is changing as well. The number of young children in Jackson Heights is
simply much higher. The city-sponsored After School program at P.S. 69 has been discontinued.
It is a moment when the services of 82nd Street Academics are critically needed.




Some of the changes are visible and relate to students and families -

Health and Nutrition
        We committed to serving healthier snacks this year in several programs, in cooperation
with the USDA’s Child and Adult Care Food Program (CACFP). The USDA, in conjunction with the
New York State Dept. of Health, provided over $12,000 for our food program this year, in
addition to the $13,057 provided by 82nd Street Academics. We conformed to federal standards
for all snacks served in the school and will continue in the partnership with the Department.



                                                                           2008 Annual Report   ~1~
Pre-College Programs
       The mission of our school is to help students take ‘early steps to college.’ We want to
offer a chain of services from Pre-School to Pre-College that will ensure student success in
college. This past year we offered prep classes for admission to the specialized high schools of
New York City. 3 of the 10 students in the first SHSAT class were successful on the exam itself
and entered one of New York City’s seven specialized public high schools in September 2008.
Simultaneously, we offered a prep course for the SAT Reasoning Test for college admissions.
While there are excellent for-profit companies offering test preparation, we are able to provide a
similar class that is more affordable.



Other changes strengthen our internal structure:

Board Development
       82nd Street Academics has increasing needs for legal and financial advice, educational
partnerships, and community participation. A solid Board of Directors will help us continue our
rapid development with careful oversight. In August 2007, we sponsored our first board
development dinner and invited several community leaders to discover more about 82nd Street
Academics and how they can support the mission. From that event, we invited Vijay Kolhatkar
(Retired, Customer Service Director, United Airlines), Omar Almanzar (Assistant District
Attorney, Suffolk County) and Kenji Niwa, (Owner, M&V Café in Jackson Heights) to join the
Board of Directors.

Using Technology to Increase Awareness
       We increased our outreach efforts with new families with the help of Mr. Amar Rajwani,
who has created a marketing department to promote awareness in the community about our
programs and maximize our enrollment. One of his initiatives was to implement Kintera, an
internet-based contact manager. The new software lets us share information about
conversations with prospective clients in order to ensure that we respond to all inquiries and




 ~2~   82nd Street Academics
questions appropriately. Parents see our attention to their questions as a sign that we will also
be careful in caring for their children.

Commitment to Quality
        One strength of 82nd Street Academics is a well-supervised, high quality staff team. Our
selection process is unusually good, because we invest in a personnel consultant who
consistently helps us choose motivated, responsible staff members who enjoy teaching here.
We have also added cameras to all classrooms so that supervisors and parents have an
immediate sense of activities in the classroom. The result is more effective administration and
supervision this year with increased quality as we grow.




      As the world endures this troubled economic time, I can tell you that the best protection
that we can offer children and youth is to provide them with skills and knowledge that give
students the chance to seize opportunity and overcome challenge. I’m very proud of the
important role that our staff play in the lives of 600 families in northwest Queens.



Ronald Dale Tompkins, Ph.D.
Executive Director




                                                                              2008 Annual Report   ~3~
Accomplishments in 2007-08
      The 2008 fiscal year was a period of exciting growth and program development for the school.
We are anticipating a bright future for the organization in continuing our work with the children of
Queens. Some of our many accomplishments from this year are listed below…

       Our programs reached a new milestone in student attendance this year with a record monthly
high point of 364 Full Time Enrollments (FTEs) in April 2008. Our total FTE count for 2007-08 was
594. We use the FTE measurement to standardize the enrollment of students in many programs,
each with different schedules and lengths.

       We increased revenue this year by 15%. We were also able to exert more control over our
expenses with increased investment in monthly financial monitoring and budget analysis. The extra
money that this produced allowed us to repay the loan from Community Church that gave us some
of our early start-up capital. The surplus for 2007-08 is $55,348

        This year, Merrill Lynch provided technical support to open an interest bearing fund that will
eventually be built to $200,000. The interest from this fund will provide a variety of student
scholarships for high achievers and families in need. We are opening the account with $20,000 and
will fundraise to build the scholarship fund to our goal.

       We developed a plan to increase staff retention through merit-based scholarships. Since we
don’t offer physical products, the work and quality of our teachers is all we have to offer. This means
that we need to invest in training and motivating staff in order to have high quality programs.
Retaining staff over time also improves the quality of our offerings. In the first year of the program,
we awarded 5 merit scholarships to high-performing staff members in the After School Achievement
Club to provide our staff team with support for college tuition. We also provided funds for staff
development, increasing in-service training from $2,214 in the 2006-07 fiscal year to $11,813 in
2007-08.




 ~4~    82nd Street Academics
Snapshot on 2008-09
       82nd Street Academics is still in a mode of rapid growth – probably 25% for the 2008-09
year. We will expand our Universal Pre-K program, start operations at a second campus, and
dedicate a state of the art playground.

UPK
        Our Universal Pre-K program is one of the largest programs operated by a community
based organization in the Borough of Queens. We have 196 students enrolled for Fall 2008.The
program has almost doubled since its inception at our school in 2002 when we enrolled our first
group of 108 students. We will also take a big step in improving our services for these 4-year-
old children by providing full meals, which will be prepared in accordance with federal
guidelines.

Pre-College
        We are anticipating a second successful year of Pre-College programs including
Specialized High School Test Preparation, SAT Reasoning Test Preparation, and a new summer
program for incoming high school freshmen. We are also seeking ways to expand programming
in this department to reach a larger number of youth in this area. One possibility is a
partnership with the NYC Department of Youth and Community Development to administer the
Summer Youth Employment Program in our community. This program would increase the
number of youth in our area who use their summer break from school to gain valuable work
experience.

Extension Campus
       The Jewish Center of Jackson Heights offers a new attractive facility across the street
from the largest elementary school in the area; P.S. 69 enrolls 1,300 students annually in K –
5th grades. The initial offering at this site will be Afterschool Achievement Club, providing seats
for up to 18 Kindergarten and 1st Grade Students. Positive results will allow us to expand use of
the building for other programs.

Learning Park Playground
       With magnificent support from State Senator John Sabini and also State Assemblyman
Ivan Lafayette, the new playground at the 81-10 campus received $150,000 in special funding
from New York. This playground is built to NYS specifications with learning standards built into
the design of various gym equipment. This is a terrific resource for the entire community, fights
childhood obesity, and adds a highly visible symbol of our work with children.
                                                                               2008 Annual Report   ~5~
OUR
VALUESquality educational programs that are affordable
  We offer high




               We realize that skilled teachers are our greatest resource. We have
                committed to hiring only New York State certified teachers in our
              Universal Pre-K program. We have also created incentive programs to
                   reward staff members who consistently perform well on their
              evaluations. We continue to rely on state learning standards to design
                               curricula for our school age programs.




  ~6~   82nd Street Academics
OUR
VALUES a safe, clean, and healthy environment
    We maintain




          As the school grows, we continue to change our internal systems to
       make sure that students are safe at all times. We have installed cameras
       that parents can access from any internet connection to check on how
          we work with each student. We have also taken steps to improve
            sanitation, including the addition of a new bathroom and the
                               installation of hand dryers.




                                                                        2008 Annual Report   ~7~
OUR
VALUES provide exemplary customer service
     We




               Our commitment at 82nd Street Academics is to post our policies and
              program descriptions clearly and to respond promptly to questions and
                 problems. We want parents to know what they may expect from a
                program so that they can make an informed decision as to whether
               our programs meet their needs. We also want people to know clearly
                  what programs will cost and what obligations they are making in
              signing up. Our reception staff members are trained to be welcoming,
                                      informative, and helpful.




  ~8~
  ~8~   82nd Street Academics
        82nd Street Academics
OUR
VALUES an interest in all student needs in our area
    We show




         We are constantly seeking ways to expand the scope of our services in
        order to fulfill the mandate of our guiding mission. The newly formed Pre-
         College department has added a new dimension to our offerings, and
                         allows more students to benefit from our skills.

         Gilbert Worotikan (featured above) is a freshman at Brooklyn Technical
         High School in New York City and an 82nd Street Academics alumnus.
        He completed his fourth program with us this past fall, a Specialized High
        Schools Admissions Test prep course. Gilbert passed the demanding city
             exam and won free admission to Brooklyn Tech with the help he
                               received in the SHSAT class.




                                                                          2008 Annual Report
                                                                          2008 Annual Report   ~9~
OUR
VALUES our belief that God gives each child unique
   We express
                                   and needed gifts for this society




               We have developed our educational philosophy around the belief that
              each child has skills and gifts that need a nurturing environment in which to
                    flourish. This is expressed through our extensive training in child
                 development, appropriate disciplinary techniques, and our strong
                                        communication with parents.




  ~ 10 ~   82nd Street Academics
Staff Members 2007-08                                Summer School

                                                     Mallory Tompkins      School Age Program
School Wide
                                                                           Coordinator
Ronald Tompkins       Executive Director             Rommel Autencio       Teacher
Courtney Rajwani      Assistant Executive Director   Diana Diaz            Teacher
Mary Pellettieri      Business Administrator         Zulma Fabian          Teacher
Parthena Zigouris     Education Director             Nancy Guzman          Teacher
Malcolm McTaggart     Media Director                 Rakiba Kibria         Teacher
Amar Rajwani          Parent and Marketing           Amar Rajwani          Teacher
                      Coordinator                    Elizabeth Rodriguez   Teacher
Edwin Ortiz           Receptionist                   Stephanie Rodriguez Teacher
Linda Abbas           Special Projects               Tenelle Sanchez       Teacher
                                                     Shari Smith           Teacher
Pre-K                                                Althea Vega           Teacher
                                                     Melissa Voorhis       Teacher
Eunice Kim            Teacher
                                                     Ebony Ellison         Assistant Teacher
Heather Garcia        Teacher
                                                     Nicole Sosa           Assistant Teacher
Lisa Florio           Assistant Teacher
Kelly Rojas           Assistant Teacher              After School Achievement Club
Cynthia Ubiles        Assistant Teacher
                                                     Mallory Tompkins      School Age Program
Extended Day                                                               Coordinator
                                                     Meghan Nichols        Yoga Teacher
Malika Khalsa         Teacher
                                                     Christopher Bahng     Piano Teacher
Dina Garcia           Teacher
                                                     Benjamin Rivers       Drama Teacher
Universal PreK                                       Carol Joy Bowman      Teacher
                                                     Diana Diaz            Teacher
Virena Brata          Teacher
                                                     Zulma Fabian          Teacher
Rachel Ortiz          Teacher
                                                     Jennifer Feurtado     Teacher
Lolymary Questel      Teacher
                                                     Nancy Guzman          Teacher
Michelle Vitale Teacher
                                                     Mayra Dutan           Assistant Teacher
Keen Lee              Assistant Teacher
                                                     Ebony Ellison         Assistant Teacher
Tamar Mungo           Assistant Teacher
                                                     Shanyssa Findley      Assistant Teacher
Joyelle Pafk          Assistant Teacher
                                                     Vanessa Herrera       Assistant Teacher
Amita Saha            Assistant Teacher
                                                     Alyssa Laurenceau     Assistant Teacher
Elizabeth Tripoulas   Assistant Teacher
                                                     Jessica Salazar       Assistant Teacher
My First Yoga, inc.   Yoga Instruction
                                                     Elizabeth Rodriguez   Substitute Teacher

                                                     Pre College Programs

                                                     Amar Rajwani          Teacher
                                                     Melissa Voorhis       Teacher



                                                                               2008 Annual Report   ~ 11 ~
Financial Highlights
        In the 2007-08 fiscal year, the school generated a surplus from operations of $55,348 for the
fiscal year. In recent years, the school’s financial health has steadily improved, with this figure
marking the highest point to date. A variety of factors contributed to the school’s financial success
in the last fiscal year. Among these factors were:

Tuition Adjustments
        In previous years, most of the school’s programs were priced significantly below other,
similar programs in the local geographic area. This caused several programs (including After School
Achievement Club, Summer School, and Extended Day) to repeatedly fail to break even, even with
healthy levels of enrollment. The management team made tuition adjustments that became
effective in November 2006. However, since many students during that year were allowed to keep
the old rates, the new pricing did not come into full effect until the 2007-08 fiscal year. In future
years, we will continue to balance the competing priorities of affordability, program quality, and
investment in staff development when setting prices.

Effective Publicity
       The 2007-08 fiscal year marked a new investment made by the school in advertising our
programs to the community. This year was the first time that 82nd Street Academics hired a
Marketing Coordinator. Additionally, the advertising budget for the school increased from $13,828 in
the 2006-07 fiscal year to $20,222 in the 2007-08 fiscal year. As a result, more people took
advantage of the programs and services offered by 82nd Street Academics. In the 2007-08 school
year, our early childhood programs filled to capacity, and our school age programs showed strong
gains in enrollment from the prior year. With higher enrollment in the 2007-08 fiscal year than in
any of the past 5 years, the school saw high returns on the costs of staffing and the lease from the
church.

Efficient Spending
       In 2007-08, 82nd Street Academics took several steps to ensure that the school did not take
on excessive or unexpected costs. The management began producing monthly reports to compare
actual costs with anticipated costs and also made quarterly budget revisions. This procedure allowed
the management to control overhead costs, project realistic expectations for organizational
performance and encouraged program directors to be prudent about financial decisions.

        The success of the organization in the past year has allowed the school to take important
steps to promote its financial health. The management and the board of directors have agreed on
the following uses of the surplus from operations:

√        Repayment of the loan from Community Church in the amount of $25,888

√        Creation of a board-designated investment fund with a starting balance of $20,000. The
         eventual goal of this fund is to build up 12% of the annual operations expense to protect the
         school in case of a future cash flow problem. Interest from this fund will be used to create
         tuition scholarships for students in our programs.

√        Remaining money will be used to finance new program development.




~ 12 ~    82nd Street Academics
                                              2003-04       2004-05         2005-06        2006-07         2007-08



 Total Income                                  516,982        607,437        735,437         933,405       1,092,177



 Net Income                                     (8,459)        (6,936)       (13,814)          4,926           55,348

 Deferred Income                                 54,797        66,246         41,304          88,819         131,644
 Equipment                                                                     9,313          14,308          19,814
 Loans                                                         15,831         30,814          30,814          25,888

 Average FTEs                                         307         381             453            575                594




Notes

1. Lease amounts for years when the church owned the school are estimated for comparison at 33% of Income

2. The actual average FTE for 2005-06 and 2006-07 has been extrapolated to earlier years for purpose of comparison.

3. The FTE for each year is calculated by combining the FTE for Summer School with the FTE for the school year.

4. FTE is 1 student attending 5 days for 2.5 hours.




                                                                                               2008 Annual Report   ~ 13 ~
                                       82nd STREET ACADEMICS.



                                   INDEPENDENT AUDITORS’ REPORT

                                                ON

                                       FINANCIAL STATEMENTS

                                  FOR THE YEAR ENDED JUNE 30, 2008

                                 (WITH COMPARATIVE TOTALS FOR 2007)

                                                AND

                                    SUPPLEMENTAL INFORMATION




~ 14 ~   82nd Street Academics
                                  INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of

        82nd Street Academics.
        81-10 35th Avenue
        Jackson Heights. N.Y. 11372

        We have audited the accompanying statements of financial position of the 82nd Street Academics
(“Academic”) as of June 30, 2008, and the related statements of activities and cash flows for the year then ended.
These financial statements are the responsibility of the Academics’ management. Our responsibility is to express
an opinion on these financial statements based on our audits. The prior year ended June 30, 2007 summarized
comparative information has been derived from the Academics’ financial statements and in our report dated
September 28, 2007 we expressed an unqualified opinion on these financial statements.

         We conducted our audits in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statements presentation. We believe that our audits provide a reasonable basis for our opinion.

         In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the 82nd Street Academics as of June 30, 2008 and the changes in its net assets and its cash
flows for the year then ended in conformity with accounting principles generally accepted in the United States of
America

         Our audit was made primarily for the purpose of forming an opinion on the basic financial statements
taken as a whole. The accompanying schedule of functional expenses is presented for the purposes of additional
analysis and is not a required part of the basic financial statements. The data in the schedule have been subjected
to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken as a whole.



Bronx, NY
September 24, 2008




                                                                                           2008 Annual Report   ~ 15 ~
                                           82nd STREET ACADEMICS
                                      STATEMENT OF FINANCIAL POSITION
                                       FOR THE YEAR ENDED JUNE 30, 2008

                                                                                 2008                  2007
     ASSETS
     Current Assets:
      Cash and cash equivalents                                                $ 98,428              $ 87,869
      Account Receivable (Note 3)                                                 72,472                51,172
      Prepaid Expenses (Note 4)                                                   10,543                 6,067
      Total Current Assets                                                     $ 181,443             $ 145,108

     Fixed Assets:
       Computers                                                     13,391                10,973
       Furniture and Fixtures                                        13,437                 9,214
       Cameras                                                        4,291                     -
       Less: Accumulated Depreciation                               (11,305)               (4,563)
       Total Fixed Assets                                                         19,814                15,624
                                                  TOTAL ASSETS                 $ 201,257             $ 160,732

     LIABILITIES
       Accounts Payable                                                                -                 1,498
       Deferred Income (Note 5)                                                  137,134                88,319
       Other Current Liabilities (Note 6)                                         13,473                86,300
                                              TOTAL LIABILITIES                $ 150,607             $ 176,117

     NET ASSETS
      Unrestricted                                                               29,460                (25,888)
      Temporarily restricted                                                     20,690                 10,503
      Permanently restricted                                                        500                      -
                                              TOTAL NET ASSETS                 $ 50,650              $ (15,385)

                   TOTAL LIABILITIES AND NET ASSETS                            $ 201,257             $ 160,732



                                 The accompanying notes are an integral part of these financial statements




~ 16 ~   82nd Street Academics
                                  82nd STREET ACADEMICS
                                 STATEMENT OF ACTIVITIES
                              FOR THE YEAR ENDED JUNE 30, 2008
UNRESTRICTED NET ASSETS                                                         2008                 2007
  Revenues and support
  Tuition Income (Note 7)                                                   $   1,040,589       $      913,349
  Grants (Note 8)                                                                 26,709                14,200
  Special Program                                                                  9,388                    6,708
  Gifts and other income                                                                 -                   538
                       TOTAL UNRESTRICTED REVENUES AND SUPPORT $                1,076,686       $      934,795
Expenses
    Payroll Expenses (Note 9)                                               $    640,119        $      525,575
    Lease (Note 10)                                                              150,094               245,903
    OTPS 2 Instructional Cost (Note 11)                                           52,412                37,461
    Health Benefit                                                                35,913                15,419
    Office/OTPS 2 Administration (Note 12)                                        26,991                11,218
   Outside Services                                                               20,572                18,287
    Publicity/Advertising                                                         20,222                13,828
    Playground Maintenance/Development                                            14,428                          -
    Meals                                                                         13,057                15,743
    Insurance (Property and Casualty)                                             10,550                    9,384
    Electricity                                                                    7,807                    6,219
    Miscellaneous (Note 13)                                                        6,984                10,122
    Depreciation Provision/Expense                                                 6,742                    3,959
    Gas                                                                            6,206                     700
    Telephone                                                                      2,907                    2,453
    Computer Software & Services                                                   1,947                    1,962
    Repairs                                                                        1,317                    2,460
   Equipment Rental                                                                1,101                    1,600
    Entertainment/Special Visitors                                                 1,084                    2,353
    Equipment Administrative                                                           885                  3,256
    Program Expense                                                                      -                   400
   Credit Card Collection Expense                                                        -                  1,567
                                                         TOTAL EXPENSES $       1,021,338       $      929,869
INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS:                             $     55,348        $           4,926
                    UNRESTRICTED NET ASSETS AT BEGINNING OF YEAR $                (25,888)      $      (30,814)
                            UNRESTRICTED NET ASSETS AT END OF YEAR $              29,460        $      (25,888)
TEMPORARILY/PERMANENTLY RESTRICTED NET ASSETS:
(DECREASE) INCREASE IN TEMP. RESTRICTED NET ASSETS                          $     10,187        $           1,190
    TEMPORARILY RESTRICTED NET ASSETS AT BEGINNING OF YEAR $                      10,503        $           9,313
              TEMPORARILY RESTRICTED NET ASSETS AT END OF YEAR $                  20,690        $       10,503
            PERMANENTLY RESTRICTED NET ASSETS AT END OF YEAR $                         500      $             -
                              RESTRICTED NET ASSETS AT END OF YEAR $              21,190        $       10,503
                                           NET ASSETS AT END OF YEAR $            50,650        $      (15,385)




The accompanying notes are an integral part of these financial statements




                                                                                             2008 Annual Report       ~ 17 ~
                                         82nd STREET ACADEMICS
                                       STATEMENTS OF CASH FLOWS
                                     FOR THE YEAR ENDED JUNE 30, 2008

                                                                                        2008               2007


    CASH FLOWS FROM OPERATING ACTIVITIES
         Increase in Net Assets                                                     $     55,348       $     4,926
         Adjustment to reconcile increase in net assets with net cash provided by
         operating activities:
         Add back depreciation expense                                                     6,742             3,959
         (Increase) in Account Receivable                                                (29,792)          (13,968)
         Decrease/(Increase) in Grant Receivable                                           8,492           (22,367)
         (Increase) in Prepaid Expense                                                    (4,477)           (6,066)
         Increase/(Decrease) in Accounts Payable                                               759         (24,214)
         Increase in Deferred Grants                                                      14,500             2,500
         Increase in Deferred Income                                                      35,195            43,634
         (Decrease)/Increase in Deferred Tuition Unused Credits                                (880)          880
         (Decrease)/Increase in Deferred End of Month                                           (21)          368
         (Decrease)/Increase in Deferred Lease                                           (80,800)           80,800
         (Decrease) in Payroll Liability- NYS Disability                                        (71)              (57)
         Increase (Decrease) in Accrued Payroll Account                                    7,056            (3,757)
         (Decrease) in NYS Unemployment                                                   (1,247)           (4,336)
                                   NET CASH PROVIDED BY OPERATING ACTIVITIES $            10,804       $    62,303
    CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of Fixed Asset, Furniture, Fixture & Equipment                         (10,932)           (9,905)
                                         NET CASH USED BY INVESTING ACTIVITIES $         (10,932)      $    (9,905)
    CASH FLOWS FROM FINANCING ACTIVITIES
           Contribution into playground fund                                              10,187             1,190
           Contributions into scholarship fund                                                 500                  -
    NET CASH PROVIDED BY FINANCING ACTIVITIES                                       $     10,687       $     1,190
                                  NET INCREASE IN CASH AND CASH EQUIVALENTS               10,559            53,588
                                       BEGINNING CASH AND CASH EQUIVALENTS                87,869            34,281
                                           ENDING CASH AND CASH EQUIVALENTS $             98,428       $    87,869


    The accompanying notes are an integral part of these financial statements




~ 18 ~    82nd Street Academics
                                           82nd STREET ACADEMICS
                                       NOTES TO FINANCIAL STATEMENTS
                                      FOR THE YEAR ENDED JUNE 30, 2008



Note 1: Nature of Organization

         The Board of Regent of the University of the State of New York, Education Department at their meeting
of September 12, 2003 granted a provisional charter for three years to 82nd Street Academics, Inc. Prior to the
expiration of the said three-year period, an application for an extension of the provisional charter and/or for an
absolute charter was filed and it was granted and extended until February 12, 2010.

        82nd Street Academics, Inc. (the ‘Academics’) is a nonprofit organization and it has elected to be exempted
from federal income taxes under section 501 (c) (3) of the Internal Revenue Code. Accordingly, no provision for
income taxes has been made in the accompanying financial statements.

        Academics’ missions, among others, are to offer programs to complement the public education curricula
and serve to expand opportunities for students to receive a quality higher education, as well as to provide a
variety of after school academic enrichment programs.

Note 2: Summary of Significant Accounting Policies

       The financial statements of Academics have been prepared on the accrual basis of accounting. Outlined
below are those policies considered particularly significant.

        (a)     Financial Statements Presentation

        In fiscal year 2006, Academics adopted Statement of Financial Accounting Standards (SFAS) No. 117,
“Financial Statements of Not-for-Profit Organizations.” Under SFAS No. 117, Academics is required to report
information regarding its financial position and activities according to three classes of net assets (unrestricted
net assets, temporarily restricted net assets, and permanently restricted net assets) based upon the existence or
absence of individual donor-imposed restrictions. Accordingly, Academics have classified its financial statements
to represent these classes of net assets.

         Academics also adopted SFAS No. 116 “Accounting for contributions received and contribution made,” in
fiscal year 2006. In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily
restricted, or permanently restricted support, depending on the existence and/or nature of any individual donor
restrictions. The adoption had no cumulative effect on net assets at the date of the adoption.

        (b)     Revenue Recognition

         Disbursements against either state and/or local government revenues are subject to audit by state and
local funding agencies. The acceptability of these payments is subject to final determination by the respective
funding source. It is the organization’s opinion that no disallowance will occur. Accordingly, an allowance for
disallowed amount has not been provided for in these statements.

        Amounts due from government agencies are cost incurred and consist of un-reimbursed expenditures of
the current year. Similarly, amounts due to government agencies represent the excess of advances received over


                                                                                           2008 Annual Report   ~ 19 ~
 expenditures incurred. The acceptability of these amounts, as well as other expenditures of the program, is
 subject to final determination by the governmental funding source.

          (c)       Cash and Cash Equivalents

        For purpose of these statements (statement of financial position and statement of cash flows),
 Academics considers all highly liquid investments available for current use with an initial maturity of three
 months or less to be cash equivalents.

          (d)       Fixed Assets

         Academics’ accounting policy as from fiscal year 2006 was to capitalize fixed assets with acquisition
 cost exceeding $1,000 and the costs incurred since then have been capitalized and depreciated accordingly.

          (e)       Depreciation

         Fixed Assets are to be carried at cost. Depreciation on capitalized fixed assets is to be calculated using
 the straight line method over the assets useful lives and employing the half-year convention in the year of
 purchase. Depreciation expense as at June 30, 2008 was $6,742.

          (f)       Credit Risk

         Academics’ financial statements that are exposed to concentrations of credit risk consist primarily of
 cash, grant and other receivables. The account at the financial institution is insured by the Federal Deposit
 Insurance Corporation (FDIC) up to $100,000. At various times during the year, Academics had cash balance at
 HSBC which exceeded the FDIC insurance limit.

          The grant and other receivables consist of amount due from city government funding sources. Because
 the grants are evidenced by signed contracts with city government and grant letters, management believes
 there is negligible credit risk associated with these amounts, therefore, no allowance for doubtful accounts is
 considered necessary.

          (g)       Commitments and Contingencies

         Academics received funding from New York City Department of Education and Department of Health
 (CACFP) which is subject to audit by the funding source. The ultimate determination of amounts received
 under these contracts is generally based upon allowable costs reported to and audited by the funding source.
 Until such audit has been completed and final settlement reached, there exists a contingency to refund any
 amount received in excess of allowable costs.

          Academics allocated $27,777 towards UPK for space utilization, whereas the actual amount provided
 for in the budget and disbursed by UPK was $22,857. Since the actual amount paid was below the budgeted
 amount, there is no contingency provision required.




~ 20 ~   82nd Street Academics
                                         82nd STREET ACADEMICS
                                     NOTES TO FINANCIAL STATEMENTS
                               FOR THE YEAR ENDED JUNE 30, 2008 (continued)

         Community United Methodist Church, Jackson Heights (‘Church’) has entered into a contractual
agreement with the New York City Department of Education to provide Universal Pre-Kindergarten (UPK) for
four (4) year old children between the months of September to June during the school years 2005-2006, 2006-
2007 and 2007 to 2008.

       Academics agreed to provide the instructional and administrative resources as well as the equipment
necessary to fulfill the contract and in return, the Church will give all monies received from the New York City
Department of Education for the fulfillment of the contract to Academics.

        Additionally, the Church will provide space and utilities for the classes and Academics will reimburse the
Church for the rental of the space with the total amount listed on the UPK contract under the ‘Lease and Utilities’
Budget Lines. The budget line amounts for 2006-2007 and 2007-2008 are $260,000 and $177,014 respectively.
This agreement will be in effect for the duration of the contract between the Church and the New York City
Department of Education.

        (h)     Estimates

        The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and disclosures
made. Accordingly, actual results could differ from those estimates.

        (i)     Promises to Give

         Contributions are recognized when the donor makes a promise to give to the Academics that is, in
substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted
net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-
restricted contributions are reported as increases in temporarily or permanently restricted net assets depending
on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to
unrestricted net assets.

        (j)     Contributed Services

        During the years ended June 30, 2008, the value of contributed services meeting the requirements for
recognition in the financial statements was immaterial and has not been recorded. In addition, many individuals
volunteered their time and performed a variety of tasks that assisted Academics in meeting its missions, but
those services do not meet the criteria for recognition as contributed services. Therefore, no amounts have
been reflected herein applicable to these contributed services.

        (k)     Long lived impaired Assets

        In the event that facts and circumstances indicate that the Academics’ long lived assets may be impaired,
an evaluation of recoverability would be performed. Such an evaluation entails comparing the estimated future
un-discounted cash flows associated with the assets to the asset’s carrying amount to determine if a write down




                                                                                             2008 Annual Report   ~ 21 ~
  to market value or discounted cash flow value is required. The Academics considers that no asset impairment
  circumstance exists that would require such an evaluation.

           (l)       Temporarily Restricted Net Assets

           A total sum of ten thousand dollars ($10,000) grant for playground has been fully expensed and
  therefore reclassified as unrestricted being that the Academics has met the time and purpose of the grantees
  restrictions. The temporarily restricted net assets balance as at June 30, 2008 was twenty thousand, six
  hundred and ninety dollars ($20,690).

           (m)       Net assets Released from Restrictions

           Net assets were released from restrictions during year ended June 30, 2008 by incurring expenses
  satisfying the restricted purposes as follows:


           Net Assets

           Playground                                                                      $ 10,209
           Discretionary Funds                                                                7,000
           Administrative Support                                                             5,000
           Pre-K Supplies                                                                     2,000
           Summer 2007 Program                                                                2,500
           Total                                                                            $26,709



           (n)       Comparative Financial Information

          The financial statements include certain prior year summarized comparative information. Accordingly,
  such information should be read in conjunction with the prior year financial statements from which the
  summarized information wad derived.

           (o)       Related Party Transactions

          Academics’ is related to the Church by virtue of having interlocking Boards of Trustees and the
  organizations do share personnel, office space and/or other services.

          Academics rents it administrative and program facility from the Church. Rent expense for the year
  ended June 30, 2008 amounted to $150,094. The lease amount funded under UPK Budget was twenty seven
  thousand, seven hundred and seventy seven dollars ($27,777). The Academics’management believes that all
  related party transactions were at fair market value.

           The executive director is the father of both the associate executive director and the program director
  for the after school and summer school programs. The director of marketing and family involvement and pre-
  college programs is the spouse of the associate executive director.




~ 22 ~   82nd Street Academics
                                  82nd STREET ACADEMICS
                              NOTES TO FINANCIAL STATEMENTS
                        FOR THE YEAR ENDED JUNE 30, 2008 (continued)



Note 3   Account Receivable

         The breakdown of Account Receivable balance of $72,472 is as follows:

                                                                           2008                   2007

         Summer School Program                                          $31,081            $ 11,711
         Grant Receivable (Universal Pre K)                              23,763              22,004
         Summer School Pre K Program                                     10,399               1,440
         Grant Receivable (CACFP)                                         3,449                   -
         Grant Receivable (OCFS Health and Safety)                        1,500                   -
         After School Program                                             1,133                 363
         Pre College                                                        735                   -
         Pre K Program                                                      228                 270
         Extended Day Program                                               184                 184
         Grant Receivable (Div. of Youth/Community Development)               -               9,500
         Grant Receivable (State Education Department)                                        4,500
         Grant Receivable (City Society)                                      -               1,200
         Total Account Receivable                                       $72,472            $ 51,172




Note 4   Prepaid Expenses

         The $10,543 prepaid expenses balance is accounted for below:


                                                                           2008                   2007

         Publicity Expenses                                             $ 3,140            $    2,916
         Health Insurance                                                 2,807                     -
         Office Expenses OTPS 2 Adminstraive                              2,168                   681
         Summer School Administraive Expenses                             1,313                   707
         Office Expenses OTPS 2 Instructional                             1,115                 1,286
         Summer School Instructional                                          -                   459
         Miscellaneous                                                        -                    18
         Total Prepaid Expenses                                         $10,543            $    6,067




                                                                                 2008 Annual Report   ~ 23 ~
Note 5           Deferred Income

                 The $137,134 deferred income balance is accounted for below:

                                                                          2008              2007

         Deferred Income - Summer School                               $ 86,692          $ 70,501
         Deferred Income - Summer PreK                                    18,508           10,932
         Deferred Grant                                                   17,000            2,500
         Deferred Income - PreK                                            5,294            2,443
         Deferred Income - PreK Extended Day                               3,074              340
         Deferred Income - High School Readiness                           2,780                -
         Deferred Income - After School                                    1,871             (154)
         Deferred Income - Special Program                                 1,240              480
         Deferred Income - SHSAT Prep                                        675                -
         Deferred Income - Registration (After School)                         -               49
         Deferred Income - Registration (PreK)                                 -              348
         Deferred Tuition Unused Credits                                       -              880
         Total Deferred Income                                         $ 137,134         $ 88,319




Note 6           Other Current liabilities

                  The $13,473 “Other Current Liabilities” as at June 30, 2008 consist of NYS Unemployment liability, credit
card liability and accrued payroll and is accounted for as detailed below. Out of this amount, a total sum of $12,646 being
$10,389 of accrued payroll has been paid and $2,257 of credit card liability paid leaving a balance of $827 as at September
24, 2008 in ‘other current liabilities account’.


                                                                         2008               2007

         Accrued Payroll                                               $ 10,389         $  3,333
         Chase Credit Card                                                2,257                -
         NYS Unemployment                                                   827            2,075
         Deferred Lease                                                       -           80,800
         Payroll Liability - NYS Disability                                   -               71
         Accrued Payroll Account                                              -               21
         Total Other Current Liabilities                               $ 13,473         $ 86,300




   ~ 24 ~   82nd Street Academics
                                            82nd STREET ACADEMICS
                                        NOTES TO FINANCIAL STATEMENTS
                                  FOR THE YEAR ENDED JUNE 30, 2008 (continued)



Note 7         Tuition Income

               The breakdown of $1,040,589 revenues from tuition are detailed below:
                                                                                2008                 2007

                UPK                                                         $ 475,196             $ 438,899
                After School                                                    255,438             233,772
                Pre K Programs                                                  117,004             103,252
                Summer School                                                    98,753              91,606
                PreK Extended Day                                                64,134              40,630
                Summer PreK                                                      11,704                   -
                SHSAT Prep                                                        6,213                   -
                Registration - PreK                                               4,858                   -
                Registration - After School                                       3,837                   -
                PreK Plus                                                         2,938               3,623
                Registration - Summer PreK                                          425                   -
                Income                                                               89               1,567
                Total Tuition Income                                        $ 1,040,589           $ 913,349




Note 8         Grants

               The total grant of $26,709 is accounted for as follows:

                                Source of Grants                          Purposes              Amount

                NY State Education Department                      Restricted to Playground       10,000
                NYC Dept of Youth and Comm Development             Discretionary Funds             7,000
                NYC Dept of Youth and Comm Development             Administrative Support          5,000
                NY State Education Department                      Pre-K Supplies                  2,000
                NY State Education Department                      Summer 2007 Program             2,500
                NYS Office of Children and Family Services                                           209
                Total Grants Received                                                           $ 26,709



Actual amount of grant received by the Academics amounted to $43,709 out of this amount $26,709 has been recognized
leaving $17,000 in deferred grant ($43,907-26,709 = 17,000).


                                                                                              2008 Annual Report   ~ 25 ~
Note 9            Payroll Expense



                  The breakdown of the $640,119 payroll expense is as follows:

                                                                         2008                 2007
          Instructional Payroll Expenses                               $ 377,685           $ 381,395
          Administrative Payroll Expense                                 206,571             100,422
          Employer Tax - FICA                                             43,754              36,534
          Continuing Education/Staff Development                          11,813               2,214
          Professional Development                                           296                 688
          NY Unemployment                                                      -               4,322
          Total Payroll Expenses                                       $ 640,119           $ 525,575



Note 10                     Lease

                  The agreement between the church and 82nd Street Academics for space utilization and utilities for fiscal
year 2008 amounted to a total of $177,014. This amount was derived from facility cost and utilities expenditure allowed
on the UPK budget and lease amount for school-wide. Out of the that amount, a total sum of $150,094 is earmarked for
space utilization which is all allocated to all the programs in accordance with their proportionate space utilization and a
sum of $26,920 is allocated for utilities, insurance and equipment rental under the UPK budget. The breakdown of the
allocated facility utilization amount is as follows:

                                                                         2008                 2007
          Lease (UPK program allocated cost)                           $  27,777           $ 64,170
          Lease - Other (All other programs)                             122,317             181,733
          Total Lease                                                  $ 150,094           $ 245,903

          Utilities
          Electric                                                         7,807               6,219
          Gas/Fuel                                                         6,206                 700
          Telphone                                                         2,907               2,453
          Insurance                                                       10,550               7,776
          Equipment Rental                                                 1,101               1,600
          Subtotal                                                     $ 28,571            $ 18,748
          Total Space Utilization Allocation                           $ 178,665           $ 264,651


Notes:

(1) The difference of $1,651 ($178,665 - $177,014) between the agreement amount and the actual space utilization
    amount is due to over and under-spending on the budget lines under the UPK budget.

(2) The significant decrease in the lease amount from 2007 is due to the reclassification and removal of salaries of three
    (3) employees from the total lease amount. The salaries of those employees are now paid by the school.



   ~ 26 ~    82nd Street Academics
Note 11            OTPS2 Instructional Costs

           The instructional cost component of the “other than personnel cost” (OTPS) of $52,412 is itemized as
follows:

                                                                                2008                2007

           Class Supplies and Books                                            $24,585         $ 22,009
           Classroom Equipment                                                  10,781            5,856
           Student Trips                                                        12,092               48
           Instructional Consultants                                             4,954            9,515
           OTPS Instructionals Cost Other                                            -               33
           Total OTPS 2 Instructional Costs                                    $52,412         $ 37,461




Note 12            Office/OTPS 2 Administrative

           The administrative cost component of the “other than personnel cost” (OTPS) of $26,991 is as follows:

                                                                                 2008               2007

           Supplies -Admin. Expense (Office)                                   $ 7,737          $  1,857
           Maintainance/Janitorial                                               7,600             4,272
           Hospitality                                                           4,107             2,929
           Supplies -Admin. Expense                                              3,039             1,876
           Board Expense                                                         2,588                 -
           Fund Raising Expense                                                  1,352                 -
           Postage and Delivery                                                    568               284
           Total Office/OTPS 2 Administrative                                  $26,991          $ 11,218




Note 13            Miscellaneous

           The breakdown of the $6,984 miscellaneous expenses is as follows:
                                                                                 2008               2007

           Adjustments/Disc. Expense                                           $ 1,776          $  6,253
           Bad Debt Expense                                                      1,262             2,248
           Bank Service Charges                                                  1,070             1,057
           *Miscellaneous - other                                                2,876               564
           Total Miscellaneous                                                 $ 6,984          $ 10,122

           *Miscellaneous-other consist of payments for fingerprinting, delivery tips, and late filing fee



                                                                                            2008 Annual Report   ~ 27 ~
~ 28 ~
                                                                                                                                                     82nd STREET ACADEMICS
                                                                                                                                   SCHEDULE OF FUNCTIONAL ALLOCATION OF EXPENSES
                                                                                                                                            FOR THE YEAR ENDED JUNE 30, 2008
                                                                                                                                                                                                                                                     Administration
                                                                                                                                                 PROGRAM SERVICES                                                                                      & General




82nd Street Academics
                                                                               After                                Summer                                                                                               Registration-   Program     Administration
                                                               UPK            School              Pre K              School         Extended             Summer       SHSAT     Registrati   Registration-    PreK         Summer        Services      & General
                                                             Program         Program             Program            Program        Day Program            PreK         Prep     on - PreK    After School     Plus          Prek          Total          Total          2008 Totals       2007 Totals
                            Personnel Services               $ 198,001       $ 106,393       $      48,774      $      41,144       $   26,707       $      4,856     $ 2,601   $   2,038    $      1,604    $ 1,214     $       217     $ 433,548   $      206,571     $   640,119       $ 525,575
                            Lease                               27,777          55,242              25,320             21,370           13,879              2,533       1,345       1,051            830         636              92       150,075              19          150,094          270,218
                            Instructional Cost                  23,937          12,862               5,896              4,974            3,229               587         314          246            194         147              26        52,412                -          52,412           37,461
                            Health Benefit                      16,401           8,813               4,040              3,408            2,212               402         215          169            133         101              18        35,913                -          35,913           15,419
                            Supplies Administrative                  -               -                     -                  -              -                    -         -           -               -            -             -             -           26,991          26,991           11,218
                            Outside Consultant Services          9,395           5,048               2,314              1,952            1,267               230         123           97             76          58              10        20,572                  -        20,572           18,287
                            Publicity/Advertisement              9,235           4,962               2,275              1,919            1,246               226         121           95             75          57              10        20,222                -          20,222           13,828
                            Playground Maintenance/Deve          6,589           3,541               1,623              1,369              889               162           87          68             53          40               7        14,428                -          14,428                -
                            Meals                                5,963           3,204               1,469              1,239              804               146           78          61             48          37               7        13,057                -          13,057           15,743
                            Insurance (Property and Casua       10,550               -                     -                  -              -                    -         -           -               -            -             -        10,550                -          10,550                -
                            Electricity                          7,807               -                     -                  -              -                    -         -           -               -            -             -         7,807                -           7,807                -
                            Miscellaneous                        3,190           1,714                786                663               430                78           42          33             26          20               3         6,984                -           6,984           10,122
                            Depreciation Provision/Expense       3,079           1,654                758                640               415                76           40          32             25          19               3         6,742                -           6,742                -
                            Gas                                  6,206               -                     -                  -              -                    -         -           -               -            -             -         6,206                -           6,206                -
                            Telephone                            2,907               -                     -                  -              -                    -         -           -               -            -             -         2,907                -           2,907                -
                            Computer Services                    1,947               -                     -                  -              -                    -         -           -               -            -             -         1,947                -           1,947                -
                            Building Maintenance                 1,317               -                     -                  -              -                    -         -           -               -            -             -         1,317                -           1,317            2,460
                           Equipment Rental                      1,101               -                     -                  -              -                    -         -           -               -            -             -         1,101                -           1,101                -
                            Entertainment/Special Visitors        495              266                122                103                67                12            7           5               4            3             1         1,084                -           1,084            2,353
                            Equipment Administrative                 -               -                     -                  -              -                    -         -           -               -            -             -             -              885             885            1,962
                            Credit Card Collection Expense           -               -                     -                  -              -                    -         -           -               -            -             -             -                  -             -            1,566
                            Program Expenses                         -               -                     -                  -              -                    -         -           -               -            -             -             -                  -             -              400
                            Newsletters                                  -               -                  -                  -                 -                -         -           -               -            -             -             -                  -                 -            -
                            Office Expenses                              -               -                  -                  -                 -                -         -           -               -            -             -             -                  -                 -            -
                            Arts/Crafts                                  -               -                  -                  -                 -                -         -           -               -            -             -             -                  -                 -            -
                            Fund Raising                                 -               -                  -                  -                 -                -         -           -               -            -             -             -                  -                 -            -



                            Total Expenditures               $ 335,898       $ 203,699       $     93,378       $     78,781        $   51,144       $     9,308      $ 4,974   $ 3,895      $     3,069     $ 2,330     $      394      $ 786,871   $    234,466       $ 1,021,338       $ 926,612
                        The accompanying notes are an integral part of these financial statements
     82nd Street Academics
         81-10 35th Avenue
Jackson Heights, New York City 11372
            82ndst.com

								
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