2023-03-10T09:26:40-06:00 2022-06-30 205991824 SC&H GROUP INC 910 RIDGEBROOK ROAD SPARKS MD 21152 990 2021-07-01 526001577 MCDONOGH SCHOOL INCORPORATED MCDO 4103630600 8600 MCDONOGH ROAD OWINGS MILLS MD 211171009 SHERRI VOELKEL CHIEF FINANCIAL OFFICER 4103630600 2023-02-22 1 SHERRI VOELKEL 999009999 LORI S BURGHAUSER P00370694 4104031500 2023-02-22 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z DAVID J FARACE 8600 MCDONOGH ROAD OWINGS MILLS MD 211171009 98711154 0 X WWW.MCDONOGH.ORG X 1873 MD PROVIDE EXCEPTIONAL EDUCATION INSPIRING A PASSION FOR LEARNING, GROWTH & A COMMITMENT TO EXCELLENCE. 33 31 888 275 288010 270351 12902085 10342859 47671137 53398805 5215551 8406403 602697 3630502 66391470 75778569 7471280 7176223 0 0 35156066 37732264 37275 23252 2975934 16593912 18896911 59258533 63828650 7132937 11949919 303028509 293896634 71968650 71608824 231059859 222287810 X SITUATED ON A BEAUTIFUL 800-ACRE CAMPUS IN OWINGS MILLS MD, MCDONOGH SCHOOL IS A COEDUCATIONAL, COLLEGE PREPARATORY, INDEPENDENT PREKINDERGARTEN THROUGH 12 SCHOOL WITH AN OPTIONAL FIVE-DAY BOARDING PROGRAM FOR STUDENTS IN GRADES 9-12. MCDONOGH SCHOOL IS A COMMUNITY THAT FINDS JOY IN WORK, IN PLAY, IN DISCOVERY, AND IN THE REALIZATION OF PERSONAL POTENTIAL. STRONG, MUTUALLY RESPECTFUL RELATIONSHIPS INSPIRE A PASSION FOR TEACHING AND LEARNING, A DEDICATION TO PERSONAL INTEGRITY, AND A COMMITMENT TO EXCELLENCE. EMBRACING DIVERSITY OF BACKGROUND, CULTURE, AND THOUGHT, THE SCHOOL BUILDS UPON ITS FOUNDER'S ORIGINAL MISSION TO PROVIDE LIFE-ALTERING OPPORTUNITIES AND TO DEVELOP IN STUDENTS THE WILL "TO DO THE GREATEST POSSIBLE AMOUNT OF GOOD." 0 0 51711763 7176223 53378605 MCDONOGH SCHOOL IS A HIGHLY REGARDED COEDUCATIONAL, INDEPENDENT SCHOOL WITH APPROXIMATELY 1,450 STUDENTS IN PRE-KINDERGARTEN THROUGH TWELFTH GRADE. AN OPTIONAL FIVE-DAY BOARDING PROGRAM IS AVAILABLE FOR STUDENTS IN GRADES 9-12. MCDONOGH'S ACADEMIC PROGRAM IS DESIGNED TO FOSTER A LOVE OF LEARNING. THE LOWER SCHOOL PROVIDES A SOLID FOUNDATION WITH AN EMPHASIS ON READING, WRITING, AND MATHEMATICS. TEACHERS WELCOME CHILDREN AS INDIVIDUALS, TAILORING THE ACADEMIC CURRICULUM TO DEVELOP THEIR FULL POTENTIAL-INTELLECTUALLY, PHYSICALLY, SOCIALLY, AND EMOTIONALLY. THE MIDDLE SCHOOL BUILDS ON THAT FOUNDATION WITH APPRECIATION FOR THE INTELLECTUAL, PHYSICAL, SOCIAL, AND EMOTIONAL NEEDS OF YOUNG ADOLESCENTS. STUDENTS LEARN THE ELEMENTS OF RESPONSIBLE SCHOLARSHIP IN READING, ENGLISH, WORLD LANGUAGES, MATHEMATICS, SCIENCE, SOCIAL STUDIES, AND TECHNOLOGY. THE UPPER SCHOOL COMBINES RIGOROUS ACADEMICS WITH A WIDE VARIETY OF EXTRACURRICULAR ACTIVITIES. IN AN ENVIRONMENT THAT FOSTERS VERSATILITY, STUDENTS SELECT HONORS AND ADVANCED COURSES, DEVELOP THEIR ATHLETIC AND ARTISTIC ABILITIES, LEARN LEADERSHIP AND TEAMWORK SKILLS, AND GRADUATE WELL PREPARED FOR COLLEGE.FORM 990, PART VI, SECTION B, LINE 10A:THE POLICIES DESCRIBED IN PART VI, SECTION B, LINES 10A-16B APPLY TO MCDONOGH SCHOOL, INC. AND ITS AFFILIATE AS LISTED BELOW: FOLIO NETWORK, LLC 51711763 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 1 0 1 0 1 0 0 1 0 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 1 1 0 0 0 1 1 0 0 0 1 173 0 888 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 33 31 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 MD X SHERRI VOELKEL 4103630600 8600 MCDONOGH ROAD OWINGS MILLS MD 211171009 ROBERT L YOUNG III PRESIDENT 1.00 0.00 X X 0 0 0 MICHAEL W CUMMINGS VICE PRESIDENT 1.00 0.00 X X 0 0 0 STANLEY J KRASKA JR TREASURER 1.00 0.00 X X 0 0 0 H STACEY BOYER SECRETARY 1.00 0.00 X X 0 0 0 ROBERT A BAVAR MEMBER 1.00 0.00 X 0 0 0 ROBERT W BLACK III MEMBER 1.00 0.00 X 0 0 0 STEVEN K BREEDEN MEMBER 1.00 0.00 X 0 0 0 DONALD B CHRISTIAN MEMBER 1.00 0.00 X 0 0 0 LEIGH ANN CURL MD MEMBER 1.00 0.00 X 0 0 0 IRVIN DEANDREI DRUMMOND MEMBER 1.00 0.00 X 0 0 0 BRANDON M ETHERIDGE MEMBER 1.00 0.00 X 0 0 0 MICHAEL S FADER MEMBER 1.00 0.00 X 0 0 0 MICHAEL L FALCONE MEMBER 1.00 0.00 X 0 0 0 KRISTIN F FINKELSTEIN MEMBER 1.00 0.00 X 0 0 0 RONNIE FOOTLICK MEMBER 1.00 0.00 X 0 0 0 MICHAEL I GREENEBAUM MEMBER 1.00 0.00 X 0 0 0 JANET M HERBERT MEMBER 1.00 0.00 X 0 0 0 BRETT INGERMAN MEMBER 1.00 0.00 X 0 0 0 JOSHUA P JONES-DILWORTH MEMBER 1.00 0.00 X 0 0 0 HALLIE D LABEL MEMBER 1.00 0.00 X 0 0 0 JOHN A LUETKEMEYER JR MEMBER 1.00 0.00 X 0 0 0 STEVEN S OH MEMBER 1.00 0.00 X 0 0 0 CALLIE J RAHMAN MEMBER 1.00 0.00 X 0 0 0 PATRICIA B RAKSIN MEMBER 1.00 0.00 X 0 0 0 SUDHIR R RAO MEMBER 1.00 0.00 X 0 0 0 SHAWN W ROBINSON MEMBER 1.00 0.00 X 0 0 0 HENRY A ROSENBERG JR MEMBER 1.00 0.00 X 0 0 0 DAVID D ROTHSCHILD MEMBER 1.00 0.00 X 0 0 0 RICHARD B SILBERSTEIN MEMBER 1.00 0.00 X 0 0 0 TAYMOUR TAMADDON MEMBER 1.00 0.00 X 0 0 0 CRAIG A THOMPSON MEMBER 1.00 0.00 X 0 0 0 STEVEN WOLCHINSKY MEMBER 1.00 0.00 X 0 0 0 SAMUEL H WRIGHT MEMBER 1.00 0.00 X 0 0 0 DAVID J FARACE HEAD OF SCHOOL 60.00 0.00 X 473825 0 175797 SHERRI VOELKEL CHIEF FINANCIAL OFFICER 50.00 0.00 X 221574 0 45230 KATHRYN MUELLER ASSOCIATE HEAD OF SCHOOL 50.00 0.00 X 225411 0 37341 KERRY JOHNSTON DIRECTOR OF DEVELOPMENT 50.00 0.00 X 168111 0 92029 EUNICE DEEGAN CO-DIRECTOR OF ATHLETICS 50.00 0.00 X 138592 0 18257 MERRITT A LIVERMORE HEAD OF UPPER SCHOOL 50.00 0.00 X 135359 0 97811 J PETER WELCH CHIEF OPERATING OFFICER 50.00 0.00 X 129233 0 40932 MATTHEW MACMULLAN CO-DIRECTOR OF ATHLETICS 50.00 0.00 X 128830 0 53859 KEVIN COSTA DIRECTOR OF INOVATION & LEARNING 50.00 0.00 X 123788 0 46039 1744723 0 607295 28 0 1 0 CHESAPEAKE CONTRACTING GROUP 25 MAIN STREET SUITE 300 REISTERSTOWN MD 21136 GENERAL CONTRACTING 4792351 SAGE DINING SERVICES 1402 YORK ROAD 100 LUTHERVILLE MD 21093 FOOD SERVICES 1711434 WILLIAMS SCOTSMAN PO BOX 91975 CHICAGO IL 606931975 MODULAR BUILDING PROVIDER 622876 THE MULLAN CONTRACTING COMPANY 2330 W JOPPA RD SUITE 210 LUTHERVILLE MD 21093 GENERAL CONTRACTING 437018 LOTHORIAN LLC 13536 JARRETTSVILLE PIKE PHOENIX MD 21131 GENERAL CONTRACTING 433259 19 6860 10335999 866504 10342859 TUITION AND FEES 611710 48757987 48757987 INSTRUCTIONAL CAMPS 611710 1973257 1973257 RIDING PROGRAM/HORSE SHOWS 611710 1211596 1191396 20200 STUDENT SUPPORT 611710 728527 728527 CAMPUS HOUSING 611710 620075 620075 107363 107363 53398805 1365943 267810 1098133 111475 111475 578853 305477 273376 273376 273376 29408216 2000 22141814 227942 7266402 -225942 7040460 7040460 470900 257352 213548 213548 INSURANCE PROCEEDS 611710 2881979 2881979 REBATE REVENUE 611710 63217 63217 MISCELLANEOUS REVENUE 611710 58856 58856 28051 28051 3032103 75778569 53378605 288010 11769095 7176223 7176223 1375463 877337 498126 25966859 22896585 2160142 910132 1259972 1042674 177950 39348 7256386 5749271 1141095 366020 1873584 1573627 226470 73487 174807 174807 120603 120603 23252 23252 57554 57554 500019 163438 332585 3996 133990 80924 53066 256186 149932 86299 19955 803959 95982 707977 3516689 2846527 503419 166743 69354 22956 44923 1475 1272689 1004846 201276 66567 4725347 3818222 681678 225447 673724 125836 547888 UBIT TAX EXPENSE 17245 17245 DINING MEALS 2014059 1609951 303675 100433 ACADEMIC SUPPORT AND SU 944212 944212 HORSE SHOW AND EQUINE S 669716 665270 3341 1105 2946758 1745287 721623 479848 63828650 51711763 9140953 2975934 14594848 17630822 16255326 21995479 11316035 8811116 386260 216350 149724 20271 217308 237852 1835829 2195118 166523143 53842389 114376230 112680754 122516914 110428464 10664850 12639886 10715185 7040522 303028509 293896634 2518802 2726563 19830011 21328397 49258952 47355771 360885 198093 71968650 71608824 X 127072888 131675322 103986971 90612488 231059859 222287810 303028509 293896634 X 11949919 -23164658 10530 2432160 X X 0 1 X 1 0 X 13923122 12271978 29353347 12902085 10342859 78793391 13923122 12271978 29353347 12902085 10342859 78793391 19831829 58961562 2515176 2176975 2452141 2094699 1788461 11027452 15791 17779 26296 58644 270351 388861 554368 566940 1090595 565025 3503003 6279931 96489635 241780695 0.61110 0.61820 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: GROSS SALES OF INVENTORY - 2017 AMOUNT: $ 283,508. 2018 AMOUNT: $ 342,062. 2019 AMOUNT: $ 313,881. 2020 AMOUNT: $ 281,124. 2021 AMOUNT: $ 470,900. MISCELLANEOUS REVENUE - 2017 AMOUNT: $ 195,598. 2018 AMOUNT: $ 176,147. 2019 AMOUNT: $ 187,143. 2020 AMOUNT: $ 174,224. 2021 AMOUNT: $ 86,907. GROSS INCOME FROM FUNDRAISING EVENTS - 2017 AMOUNT: $ 23,000. 2018 AMOUNT: $ 18,630. 2019 AMOUNT: $ 61,850. INSURANCE PROCEEDS - 2017 AMOUNT: $ 52,262. 2018 AMOUNT: $ 30,101. 2019 AMOUNT: $ 527,721. 2020 AMOUNT: $ 109,677. 2021 AMOUNT: $ 2,881,979. REBATE REVENUE - 2021 AMOUNT: $ 63,217. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 614775 X 0 96462703 2127426 -10536610 3643094 84410425 77389402 1641500 21052589 3620788 96462703 74374252 7023016 -723711 3284155 77389402 74417759 1134639 2121806 3299952 74374252 68796551 2941055 5864572 3184419 74417759 0.09360 0.61440 0.29200 0 0 76038 76038 129396938 37640915 91756023 22934928 7549889 15385039 13758644 8651585 5107059 356595 356595 112680754 ANNUITIES PAYABLE 507687 CONSTRUCTION FEES PAYABLE 293179 DEFERRED FINANCING COSTS -602773 198093 X 44391654 -23164658 10530 2198499 -20955629 65347283 10431286 10431286 75778569 53163703 688430 688430 52475273 11353377 11353377 63828650 PART III, LINE 4: ARTWORK AND ANTIQUES ARE AVAILABLE TO PROVIDE STUDENTS WITH ART EDUCATION ENRICHMENT. PART V, LINE 4: THE SCHOOL'S ENDOWMENTS CONSIST OF VARIOUS FUNDS ESTABLISHED TO SUPPORT A VARIETY OF SCHOLARSHIPS, PROFESSIONAL DEVELOPMENT, AND GENERAL OPERATIONS OF THE SCHOOL. PART X, LINE 2: ASC 740, INCOME TAXES, PRESCRIBES A RECOGNITION THRESHOLD AND A MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, AS WELL AS GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES AND FINANCIAL STATEMENT REPORTING DISCLOSURES. FOR THESE BENEFITS TO BE RECOGNIZED, A TAX POSITION MUST BE MORE-LIKELY-THAN NOT TO BE SUSTAINED UPON EXAMINATION BY TAXING AUTHORITIES. THE AMOUNT RECOGNIZED IS MEASURED AS THE LARGEST AMOUNT OF BENEFIT THAT IS GREATER THAN FIFTY PERCENT LIKELY OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE SCHOOL RECOGNIZES INTEREST AND PENALTIES ACCRUED ON ANY UNRECOGNIZED TAX EXPOSURES AS A COMPONENT OF INCOME TAX EXPENSE. THE SCHOOL DOES NOT HAVE ANY AMOUNTS ACCRUED RELATING TO INTEREST AND PENALTIES AS OF JUNE 30, 2022 AND 2021. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF ASSETS HELD IN ANNUITY TRUSTS 2,198,499. PART XI, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID EXPENSE NETTED WITH REVENUE 7,176,223. INVESTMENT EXPENSES NETTED WITH INVESTMENT REVENUE 57,554. COST OF GOODS SOLD -257,352. RENTAL EXPENSES -305,477. CHANGE IN CSV OF LIFE INSURANCE -359,262. EMPLOYEE TUITION REMISSION NETTED WITH REVENUE 4,119,600. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES NETTED WITH RENTAL INCOME 305,477. COST OF GOOD SOLD 257,352. BAD DEBT EXPENSE 125,601. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT EXPENSES NETTED WITH INVESTMENT REVENUE 57,554. FINANCIAL AID EXPENSE NETTED WITH REVENUE 7,176,223. EMPLOYEE TUITION REMISSION 4,119,600. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 MCDONOGH SCHOOL HAS PUBLISHED ITS RACIAL NONDISCRIMINATION POLICY IN ALL MEDIA THROUGH WHICH IT ADVERTISES. CENTRAL AMERICAN AND THE CARIBBEAN 0 0 INVESTMENTS 11287666 NORTH AMERICA - CANADA AND MEXICO, BUT NOT THE UNITED STATES 0 0 PROGRAM STUDENT TRIP 27520 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SOFTWARE SUBSCRIPTION 3400 0 0 0 0 0 0 11318586 0 11318586 1 0 1 1 0 0 PART I, LINE 3: IN ACCORDANCE WITH IRS INSTRUCTIONS, ALL AMOUNTS REPORTED IN PART I OF SCHEDULE F ARE REPORTED USING THE ACCRUAL BASIS OF ACCOUNTING WHICH IS THE SAME METHOD OF ACCOUNTING USED IN THE FINANCIAL STATEMENTS. PART III ACCOUNTING METHOD: X X X X X X 1 MARTS & LUNDY INC 160 CHUBB AVENUE SUITE 303 LYNDHURST NJ 07071 CONSULTING SERVICE 0 0 23252 -23252 23252 -23252 MD SCHEDULE G, PART I, LINE 2B, COLUMN (V) MARTS & LUNDY, INC. PERFORMED A CAMPAIGN FEASIBILITY STUDY AND CAMPAIGN CONSULTING SERVICES. THEY DID NOT SOLICIT FUNDS ON THE SCHOOL'S BEHALF. 1 SCHOLARSHIP GRANTS AND TUITION SUPPORT 307 7176223 CASH GRANTED NON-EMPLOYEE SCHOLARSHIPS AND FINANCIAL AID PART I, LINE 2: NON-EMPLOYEE SCHOLARSHIPS, FINANCIAL AID AND EMPLOYEE TUITION SUPPORT IS MONITORED THROUGH STUDENT BILLING SYSTEM. X X 1 1 X X X 0 0 0 0 0 0 0 0 0 DAVID J FARACE HEAD OF SCHOOL 473135 0 0 0 690 0 27807 0 147990 0 649622 0 0 0 SHERRI VOELKEL CHIEF FINANCIAL OFFICER 220893 0 0 0 681 0 13187 0 32043 0 266804 0 0 0 KATHRYN MUELLER ASSOCIATE HEAD OF SCHOOL 225411 0 0 0 0 0 14559 0 22782 0 262752 0 0 0 KERRY JOHNSTON DIRECTOR OF DEVELOPMENT 167913 0 0 0 198 0 11150 0 80879 0 260140 0 0 0 MERRITT A LIVERMORE HEAD OF UPPER SCHOOL 134988 0 0 0 371 0 10472 0 87339 0 233170 0 0 0 MATTHEW MACMULLAN CO-DIRECTOR OF ATHLETICS 128308 0 0 0 522 0 9667 0 44192 0 182689 0 0 0 J PETER WELCH CHIEF OPERATING OFFICER 128709 0 0 0 524 0 9681 0 31251 0 170165 0 0 0 KEVIN COSTA DIRECTOR OF INOVATION & LEARNING 123313 0 0 0 475 0 8932 0 37107 0 169827 0 0 0 EUNICE DEEGAN CO-DIRECTOR OF ATHLETICS 135590 0 0 0 3002 0 9989 0 8268 0 156849 0 0 0 PART I, LINE 1A AS A CONDITION OF EMPLOYMENT, THE FOLLOWING MCDONOGH EMPLOYEES ARE PROVIDED HOUSING FOR THE CONVENIENCE AND BENEFIT OF THE SCHOOL. DAVID J. FARACE, HEAD OF SCHOOL, RECEIVED HOUSING AS A NONTAXABLE BENEFIT. AS A NONTAXABLE FRINGE BENEFIT, MEMBERSHIP FEES WERE PAID FOR DAVID J. FARACE, THE HEAD OF SCHOOL, IN THE AMOUNT OF $12,152. A MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 526002033 574221ND5 2019-02-13 18195034 CAPITAL IMPROVEMENTS; REFUNDING OF SERIES 2013 BONDS; FUND ISSUANCE COSTS 0 0 0 B MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 526002033 059136BM2 2019-12-05 15290492 TO FINANCE CONSTRUCTION OF THE MIDDLE SCHOOL BUILDING 0 0 0 C MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY 526002033 059136CB5 2021-07-29 18014779 REFUNDING OF THE 2011 BONDS 0 0 0 A 1890000 18219880 332539 9599290 8288051 2019 1 0 1 1 B 15433644 575775 291211 14566658 2020 0 0 1 1 C 1050000 18014779 3890 305899 17704990 2021 1 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 SCHEDULE K, PART II, LINE 3 (BOND A): TOTAL PROCEEDS SHOWN ON PART II, LINE 3 INCLUDE INVESTMENT EARNINGS ON UNSPENT BOND PROCEEDS. SCHEDULE K, PART II, LINE 3 (BOND B): TOTAL PROCEEDS SHOWN ON PART II, LINE 3 INCLUDE INVESTMENT EARNINGS ON UNSPENT BOND PROCEEDS. 56200 TUITION ASSISTANCE EDUCATION JOSHUA P JONES-DILWORTH BOARD MEMBER 103481 THE SCHOOL HIRED JOSHUA P. JONES-DILWORTH'S FIRM, JONES-DILWORTH, INC. FOR COMMUNICATION CONSULTING. ALL TRANSACTIONS ARE AT ARMS-LENGTH AND AT FAIR MARKET VALUE. 0 X 27 866504 FAIR MARKET VALUE 3 0 1 0 PART I, COLUMN (B): THE TOTAL IN COLUMN (B) REPRESENTS THE TOTAL NUMBER OF CONTRIBUTIONS RECEIVED. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. AFTER THAT REVIEW, THE FORM 990 IS POSTED ON THE TRUSTEE WEBSITE FOR APPROVAL BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C COPIES OF THE CONFLICT-OF-INTEREST POLICY AND RELATED QUESTIONNAIRE ARE SUBMITTED TO ALL INTERESTED PARTIES AND ALL CURRENT MEMBERS OF THE BOARD OF TRUSTEES TO REVIEW, COMPLETE, AND SIGN. THE QUESTIONNAIRE WHICH DISCLOSES, IF APPLICABLE, ANY POTENTIAL CONFLICTS, IS SUBMITTED TO THE VICE PRESIDENT OF THE BOARD OF TRUSTEES FOR REVIEW. ANY POTENTIAL CONFLICTS ARE RESOLVED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. IF A CONFLICT EXISTS, THE INTERESTED PERSON IS PROHIBITED FROM PARTICIPATING IN THE GOVERNING BODY'S DELIBERATIONS AND DECISIONS SURROUNDING THE CONFLICTED MATTER. THE CONFLICT-OF-INTEREST POLICY IS ANNUALLY REVIEWED BY THE GOVERNANCE COMMITTEE OF THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 MCDONOGH SCHOOL MAINTAINS AN EXECUTIVE COMPENSATION POLICY FOR DETERMINING COMPENSATION FOR BOTH OFFICERS AND KEY EMPLOYEES. MCDONOGH SCHOOL USES PEER DATA PROVIDED BY IRS FORM 990 AND DATA PROVIDED BY BOTH AIMS (ASSOCIATION OF INDEPENDENT MARYLAND SCHOOLS) AND NAIS (NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS) FOR COMPARABILITY PURPOSES. THE INDEPENDENT BOARD HIRES AND DETERMINES COMPENSATION OF THE HEAD OF SCHOOL, WHO THEN HIRES AND DETERMINES COMPENSATION OF OTHER TOP MANAGEMENT OFFICIALS, OFFICERS, AND KEY EMPLOYEES. ALL COMPENSATION IS DETERMINED BASED ON PERFORMANCE, COMPARABLE COMPENSATION DATA, AND BUDGETARY GUIDELINES AS APPROVED BY COMMITTEES OF THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICIES, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF ASSETS HELD IN ANNUITY TRUSTS -350,820. CHANGE IN VALUE OF ANNUITIES PAYABLE 188,785. CHANGE IN CHARITABLE REMAINDER UNITRUST 2,360,534. CHANGE IN VALUE OF CASH SURRENDER VALUE 359,262. BAD DEBT EXPENSE -125,601. FORM 990, PAGE 12, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FOLIO NETWORK LLC PO BOX 380 OWINGS MILLS MD 21117 275349063 SCHOOL PERFORMANCE APPRAISAL SOFTWARE MD 111475 1404519 MCDONOGH SCHOOL INCORPORATED CHARITABLE REMAINDER UNITRUST (8) PO BOX 380 OWINGS MILLS MD 21117 CHARITABLE REMAINDER UNITRUST MD T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0