In my state there are 3 levels of prep op - beginner, intermediate, and advanced. Each are treated a little differently by my gym.
BPO, which is like levels 3-5, is the rec team at our gym. They usually have rec coaches and use our rec gym but they sometimes come into the team gym and get some time with the HC. They compete in about 3 local meets a year and sometimes states.
IPO, which is like 5-7, is for 2 groups of gymnasts at my gym - girls who have done a year of 5 and are probably ready to move up but are shaky on a few skills or don't have the best form and would get low scores in 6, or girls who aren't quite ready for level 7. Both of these groups will usually repeat IPO until they're ready for level 7 and then score out of a level 6 meet if they haven't yet. They work out with the level 7 team and have about 8 meets a year.
APO, which is like 7-9, is for highschool girls that have chosen not to compete JO for various reasons - fear, not as much commitment, injury. I'm competing it this year because of some nagging injuries and the strain traveling for meets puts on my family. We can pick our hours (anywhere from 10-20), we work out with a girls our age that are in levels 9 and 10, and have 4-6 mostly local meets a year.
We don't typically post meet results on our website but in team newsletters and events the IPO and APO teams are included with the JO teams, and BPO is included in the rec gym stuff. There isn't really a stigma attached to prep op as I've heard of in other gyms; we're all at the gym because we love gymnastics and are competing the the level or program that will benefit us the most.