Happy Trails School

Nonprofit profile at a glance

EIN
384027584
IRS 990 coverage
2018–2021
Forms available
Form 990 2021
Location
Tucson, AZ, USA
Phone
5203257556
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Child Day Care

Official website

Reported finances

Revenue
$1,092,782
Expenses
$961,084
Assets
$274,987
Liabilities
$21,943

Source: IRS Form 990. Selected filing: tax year 2021. Amounts in USD.

Leadership & pay

3 people listed

Executive titles in this filing

  • REV RICHARD JONES (Vice President)
  • JANICE LATHREM (President)

Highest reported compensation

  • THERESA REYNOLDS (Treasurer): $58,092 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2021. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To operate a daycare and pre-school center for young children in a christian atmosphere keeping with the tenets of the united methodist church & of the association of christian schools international.

What it reported doing in 2021

Operated daycare & preschool center

Operating model

Revenue model
Earned-program. 84% of the money available for current operations came from fees and other program revenue.
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.

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 total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 68
  • Transparency & Controls: 90
  • Accountability: 44
  • Sustainability: 40
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 72.7%; rating input score 73
  • Program expense ratio: 82.7%; rating input score 83
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 13th percentile among comparable filings
  • Governance controls: 1 of 8 controls in place; rating input score 12
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 12.1%; rating input score 54; 54th percentile among comparable filings
  • Total-asset coverage ratio: 0.29; rating input score 10; 10th percentile among comparable filings
  • Liabilities to assets ratio: 0.08; rating input score 47; 47th percentile among comparable filings
  • Officer compensation ratio: 6%; rating input score 51; 51st percentile among comparable filings

Growth

  • Program expense growth: 2.2% per year; rating input score 100; 40th percentile among comparable filings
  • Revenue growth: 8.4% per year; rating input score 100; 64th percentile among comparable filings
  • Asset growth: 25.4% per year; rating input score 100; 86th percentile among comparable filings

Details

  • Where the money goes: 72.7% of revenue deployed · 82.7% of spending went to programs
  • Governance: 2 of 3 board members independent · 1 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $795K in reported program spending
  • Leadership: top reported pay $58K · 3 people listed
  • Consistency: 26 of 26 current checks pass
  • Schedules: 3 filed schedules
  • Filing history: 4 filing years from 2018 to 2021
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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.

  • High — Accountability: Governance controls: 7 of 8 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 10/100.
  • Review — Sustainability: Operating margin scored 54/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 47/100.
  • Review — Sustainability: Officer compensation ratio scored 51/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.