Focus Learning Academy Inc

Nonprofit profile at a glance

EIN
752538384
IRS 990 coverage
2015–2015
Forms available
Form 990 2015
Location
Dallas, TX, USA
Phone
2144677751
Rating
68
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Elementary, Secondary Education, K - 12

Reported finances

Revenue
$11,513,420
Expenses
$11,328,082
Assets
$12,983,526
Liabilities
$10,239,645

Source: IRS Form 990. Selected filing: tax year 2015. Amounts in USD.

Leadership & pay

11 people listed

Executive titles in this filing

  • Leroy McClure (CEO)

Highest reported compensation

  • Leroy McClure (CEO): $223,149 total reported compensation
  • Patricia Byrd (Chief Academic Officer 2): $158,701 total reported compensation
  • R Dale Dowell (Chief Financial Officer): $141,336 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2015. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The stakeholders of FOCUS Academies will provide world class, innovative and multisensory educational experiences that inspire all students to achieve positive life goals with global impact.

What it reported doing in 2015

During the 2014 school year the school received a 10 year charter renewal from its regulatory body, the Texas Education Agency. It also graduated its fourth senior class during the 2015 school year.

Operating model

Revenue model
Grant-funded. 96% of the money available for current operations came from government grants.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.
  • Includes noncash contributions: Reported contributions include donated property or goods.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 82
  • Transparency & Controls: 74
  • Accountability: 57
  • Sustainability: 40
  • Growth: NotEnoughData

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 80.1%; rating input score 80
  • Program expense ratio: 81.4%; rating input score 81
  • Fundraising efficiency: $361.58 raised per $1 spent on fundraising; rating input score 94; 94th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 12th percentile among comparable filings
  • Governance controls: 4 of 9 controls in place; rating input score 44
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 1.6%; rating input score 45; 45th percentile among comparable filings
  • Total-asset coverage ratio: 1.15; rating input score 50; 50th percentile among comparable filings
  • Liabilities to assets ratio: 0.79; rating input score 17; 17th percentile among comparable filings
  • Officer compensation ratio: 7.9%; rating input score 22; 22nd percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: Limited
  • Asset growth: Limited

Details

  • Where the money goes: 80.1% of revenue deployed · 81.4% of spending went to programs
  • Governance: 2 of 3 board members independent · 4 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $9.2M in reported program spending
  • Leadership: top reported pay $223K · 11 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $1.2M reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 10 filed schedules · includes major donors and executive pay
  • Contacts: How to reach this organization
  • Money network: 8 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • Moderate — Accountability: Governance controls: 5 of 9 not reported.
  • Moderate — Sustainability: Operating margin scored 45/100.
  • Review — Sustainability: Total-asset coverage ratio scored 50/100.
  • High — Sustainability: Liabilities to assets ratio scored 17/100.
  • High — Sustainability: Officer compensation ratio scored 22/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.