2023-05-15T16:18:58-05:00 2022-06-30 390859910 BAKER TILLY US LLP 1570 FRUITVILLE PIKE SUITE 400 LANCASTER PA 17601 990 2021-07-01 231352639 THE PUBLIC SCHOOL OF GERMANTOWN PUBL 2156463300 PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 DAVID PANNEPACKER CFO AND COO 2156463300 2023-05-10 1 DAVID PANNEPACKER XXX-XX-XXXX KERRI N BOGDA CPA P00760402 7177404863 2023-05-10 X 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z GERMANTOWN ACADEMY DAVID PANNEPACKER PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 68740984 0 X WWW.GERMANTOWNACADEMY.NET X 1759 PA AN INDEPENDENT, COEDUCATIONAL COLLEGE PREP SCHOOL FOR COMMUTING STUDENTS IN GRADES PRE-K - TWELVE. 29 29 606 93 15327 0 8600674 15634590 41275111 42182570 1433940 2703844 1291512 3218362 52601237 63739366 8003625 8333056 0 0 30252861 31381195 6738 0 1816573 9843079 11846641 48106303 51560892 4494934 12178474 151608543 175689280 32739088 54315600 118869455 121373680 X GERMANTOWN ACADEMY INSPIRES STUDENTS TO BE INDEPENDENT IN THOUGHT; CONFIDENT IN EXPRESSION; COMPASSIONATE IN SPIRIT; COLLABORATIVE IN ACTION; AND HONORABLE IN DEED. 0 0 41069363 8333056 42182570 GERMANTOWN ACADEMY IS A NON-SECTARIAN, COEDUCATIONAL COLLEGE PREPARATORY SCHOOL EDUCATING STUDENTS FROM PRE-K TO GRADE 12. FOUNDED IN 1759, GERMANTOWN ACADEMY HAS OVER 250 YEARS OF HISTORY, TRADITION, AND OUTSTANDING ACADEMICS. GERMANTOWN ACADEMY IS A PLACE THAT INSPIRES. STUDENTS DEVELOP A LOVE OF LEARNING BEGINNING WITH THE FIRST DAY OF PRE-K THAT CONTINUES THROUGH THE FINAL DAY OF 12TH GRADE AND BEYOND. OUR DEDICATED FACULTY AND STAFF EMBRACE STUDENTS' INNATE CURIOSITY AND ENCOURAGE THEM TO BUILD UPON THEIR NATURAL STRENGTHS WHILE CHALLENGING THEM TO EXPAND THEIR KNOWLEDGE THROUGH A MULTITUDE OF LEARNING EXPERIENCES. THIS IS OUR PROMISE TO OUR STUDENTS, AND IT BECOMES THEIR FOUNDATION FOR LIFE.FOR MORE THAN 250 YEARS, STUDENTS AT GERMANTOWN ACADEMY HAVE BEEN ENCOURAGED TO FOLLOW THEIR PASSIONS. THE CUMULATIVE RESULT IS AN EXCEPTIONAL ACADEMIC, ARTISTIC, ATHLETIC, AND SOCIAL EXPERIENCE THAT CREATES SUCCESSFUL, WELL-EDUCATED, ETHICAL YOUNG PEOPLE WHO BELIEVE THEY CAN MAKE A DIFFERENCE IN THE WORLD.GERMANTOWN ACADEMY IS A PLACE OF INNOVATION. WE ARE AT THE FOREFRONT OF IMPORTANT INITIATIVES SUCH AS 21ST CENTURY CURRICULUM DEVELOPMENT, LANGUAGE INSTRUCTION, AND INTERNATIONAL RELATIONSHIPS. IF A NEW PROGRAM OR IDEA PROVIDES AN OPPORTUNITY FOR OUR STUDENTS, WE WILL EXPLORE IT.WITH TALENTED AND CARING FACULTY, HONEST AND CURIOUS STUDENTS, AND A BEAUTIFUL ENVIRONMENT, GERMANTOWN ACADEMY IS WHERE YOUR CHILD CAN BECOME HIS OR HER BEST SELF. A TOTAL OF 1,207 STUDENTS WERE ENROLLED THIS FISCAL YEAR. 41069363 1 1 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 0 1 1 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 1 42 0 606 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 29 29 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X DAVID PANNEPACKER CFO AND COO 2674057140 PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 DR LORI R GRISWOLD PRESIDENT/BOARD CHAIR 20.00 X X 0 0 0 CARL RAPP VICE PRESIDENT 5.00 X X 0 0 0 JOHN M GALLOWAY SECRETARY 5.00 X X 0 0 0 JANET HAUGEN TREASURER 5.00 X X 0 0 0 LARRY ALTMAN TRUSTEE 5.00 X 0 0 0 BELA D BAGGA TRUSTEE 5.00 X 0 0 0 IRA BROWNSTEIN TRUSTEE 5.00 X 0 0 0 AMY SEYFERT CONNELLY TRUSTEE 5.00 X 0 0 0 ANTHONY DISANDRO JR TRUSTEE 5.00 X 0 0 0 MARK DOOLEY TRUSTEE 5.00 X 0 0 0 JUDY A FELGOISE TRUSTEE 5.00 X 0 0 0 DESRENE FREEMAN TRUSTEE 5.00 X 0 0 0 JUDI J GOODMAN TRUSTEE 5.00 X 0 0 0 ANNAMARIE GEPPERT HELLEBUSCH TRUSTEE 5.00 X 0 0 0 PHILIP HUANG TRUSTEE 5.00 X 0 0 0 MICHAEL H JORDAN TRUSTEE 5.00 X 0 0 0 SAMANTHA MACGREGOR JORDAN TRUSTEE 5.00 X 0 0 0 JOHN KORMAN TRUSTEE 5.00 X 0 0 0 JENNIFER LEMING TRUSTEE 5.00 X 0 0 0 CAROL MOMJIAN TRUSTEE 5.00 X 0 0 0 DR LINDA WHITE NUNES TRUSTEE 5.00 X 0 0 0 SALVATORE J PAONE JR TRUSTEE 5.00 X 0 0 0 GEORGE M RITER TRUSTEE 5.00 X 0 0 0 CHERYL ROSS TRUSTEE 5.00 X 0 0 0 ANDREW SANDIFER TRUSTEE 5.00 X 0 0 0 JEFFREY SULTANIK TRUSTEE 5.00 X 0 0 0 TED SWANSON TRUSTEE 5.00 X 0 0 0 KEZIRAH LINN VAUGHTERS TRUSTEE 5.00 X 0 0 0 KATHY WYSZOMIERSKI TRUSTEE 5.00 X 0 0 0 RICHARD SCHELLHAS HEAD OF SCHOOL 50.00 X 440000 0 52576 DAVID PANNEPACKER CFO AND COO 50.00 X 122500 0 18166 AUDREY SCHNUR DIRECTOR INSTITUTIONAL ADVANCEMENT 40.00 X 189851 0 16951 JEFFREY THOMPSON DIRECTOR OF AQUATICS 40.00 X 157896 0 95181 SUSAN SZCZEPKOWSKI HEAD OF LOWER SCHOOL 40.00 X 148270 0 101884 JONAS JESWALD HEAD OF MIDDLE SCHOOL 40.00 X 146223 0 59259 MOLLY MACKEAN HEAD OF UPPER SCHOOL 40.00 X 156550 0 16353 THOMAS P TAFT FMR CHIEF OPERATING OFFICER 40.00 X 113489 0 17499 1474779 0 377869 29 1 1 0 ARAMARK SERVICES INC 24858 NETWORK PLACE CHICAGO IL 60673 CLEANING SERVICES 434187 NEXDINE LLC 905B SOUTH MAIN ST MANSFIELD MA 02048 DINING SERVICES 160166 NOVACARE REHABILITATION PO BOX 643361 PITTSBURGH PA 15264 ATHLETICS TRAINING SERVICES 144680 CANON FINANCIAL SERVICES 14904 COLLECTIONS CENTER DRIVE CHICAGO IL 606930149 COPIER USAGE SERVICES 134288 VERACROSS LLC PO BOX 844683 BOSTON MA 022844683 SOFTWARE SERVICES 133686 7 6975 348982 15278633 261992 15634590 STUDENT TUITION FEES 611600 41129944 41129944 AUXILIARY PROGRAM REVENUE 611600 668000 668000 MUSIC LESSONS 611600 384626 384626 42182570 1462735 15327 1447408 11880 11880 257138 24741 232397 232397 232397 5973757 4744528 1229229 1229229 1229229 10665 6975 1884 8781 8781 297505 230465 67040 67040 SUMMER PROGRAMS 900099 1268542 1268542 EXTENDED DAY & CHILD CARE FEES 900099 941094 941094 AQUATIC CLUB REVENUE 900099 664138 664138 36370 36370 2910144 63739366 42182570 15327 5906879 8333056 8333056 790488 605820 149113 35555 21542362 16375097 4185555 981710 1348941 1004376 271578 72987 6081200 5634682 379802 66716 1618204 1243708 300901 73595 152677 152677 61762 61762 151944 151944 351287 182718 151420 17149 106596 10005 96591 2030810 1510895 381796 138119 336000 336000 2983420 2243301 616467 123652 600187 384862 198784 16541 3375455 2538081 697474 139900 392106 392106 EDUC., ATHLETICS, GEN'L 790274 790274 DINING ROOM 174612 174612 BAD DEBTS 154056 154056 DUES AND SUBSCRIPTIONS 58818 11935 46883 126637 35946 36633 54058 51560892 41069363 8674956 1816573 14507101 378242 505657 38906718 441681 6600740 75972 92834 38043 31242 657062 588606 130960345 52025919 78377290 78934426 32807630 27813789 4458514 6636888 264313 350279 19475280 15355516 151608543 175689280 2603299 2856902 12940552 12148963 16596271 32886507 5700000 598966 723228 32739088 54315600 X 71152529 68081279 47716926 53292401 118869455 121373680 151608543 175689280 X 12178474 -5554485 -4119764 X 0 1 X 1 0 X 3132184 4867961 2640866 8600674 15634590 34876275 3132184 4867961 2640866 8600674 15634590 34876275 4088458 30787817 1165418 1531998 1333336 1408140 1716426 7155318 2807374 3220274 2762247 1243923 3218314 13252132 55283725 199870991 0.55690 0.51920 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: AQUATIC CLUB REVENUE - 2017 AMOUNT: $ 381,461. 2018 AMOUNT: $ 439,066. 2019 AMOUNT: $ 334,733. 2020 AMOUNT: $ 328,332. 2021 AMOUNT: $ 664,138. EXTENDED DAY AND CHILD CARE FEES - 2017 AMOUNT: $ 683,659. 2018 AMOUNT: $ 894,151. 2019 AMOUNT: $ 644,127. 2020 AMOUNT: $ 664,930. 2021 AMOUNT: $ 941,094. FLEXIBLE FUND ADJUSTMENT - 2020 AMOUNT: $ 16,862. 2021 AMOUNT: $ 4,086. LATE FEES - 2021 AMOUNT: $ 5,950. INSURANCE PREMIUM DIVIDEND - 2019 AMOUNT: $ 6,854. 2020 AMOUNT: $ 6,854. 2021 AMOUNT: $ 6,954. NON-CHARITABLE FUNDRAISING RECEIPTS - 2020 AMOUNT: $ 84,286. 2021 AMOUNT: $ 10,665. OTHER INCOME - 2017 AMOUNT: $ 74,786. 2018 AMOUNT: $ 44,341. 2019 AMOUNT: $ 2,355. 2020 AMOUNT: $ 13,937. 2021 AMOUNT: $ 19,380. SCHOOL STORE SALES - 2017 AMOUNT: $ 303,960. 2018 AMOUNT: $ 335,376. 2019 AMOUNT: $ 232,494. 2020 AMOUNT: $ 124,628. 2021 AMOUNT: $ 297,505. SUMMER PROGRAMS - 2017 AMOUNT: $ 1,363,508. 2018 AMOUNT: $ 1,507,340. 2019 AMOUNT: $ 1,541,684. 2020 AMOUNT: $ 4,094. 2021 AMOUNT: $ 1,268,542. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X 0 37266144 2522840 -3786244 1552063 34450677 31081410 191100 7423483 1429849 37266144 30302141 398137 1650368 1269236 31081410 28512436 1151912 2175829 1538036 30302141 27309956 288274 2277861 1363655 28512436 0.28000 0.49000 0.23000 1 0 6780099 6780099 105842669 37492101 68350568 16510270 14533818 1976452 1827307 1827307 78934426 BENEFICIAL INTEREST IN PERPETUAL TRUST 15355516 15355516 STUDENT DEPOSITS AND ACCOMMODATIONS 374071 CAPITAL LEASE OBLIGATIONS 349157 723228 X 45837207 -5554485 -12604764 -18159249 63996456 -257090 -257090 63739366 43332982 257090 257090 43075892 8485000 8485000 51560892 PART III, LINE 4: GERMANTOWN ACADEMY MAINTAINS AND DISPLAYS COLLECTIONS OF WORKS OF ART, HISTORICAL TREASURES AND OTHER SIMILAR ASSETS AS A KEY COMPONENT OF OUR LIBERAL ARTS, COLLEGE PREPARATORY CURRICULUM. THESE WORKS OF ART ARE INCORPORATED ON A REGULAR BASIS AS PART OF OUR ART CLASSES TO HELP PROVIDE THE ACADEMY'S STUDENTS WITH THE FRAMEWORK NECESSARY TO GROW AS ARTISTS THEMSELVES AND TO MEET THE STATED CURRICULAR OBJECTIVES OF OUR MISSION. THERE IS NO INTENTION TO EVER SELL A WORK OF ART IN ORDER TO GENERATE INCOME. PART V, LINE 4: THE SCHOOL'S ENDOWMENTS CONSIST OF INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES INCLUDING SCHOLARSHIPS AND FINANCIAL AID, FACULTY COMPENSATION, STUDENT PRIZES, PARENT EDUCATION, STUDENT EDUCATION, IMPROVEMENTS TO PROPERTY, PLANT AND EQUIPMENT, AS WELL AS VARIOUS OTHER ACTIVITIES OF THE SCHOOL. ITS ENDOWMENTS INCLUDE BOTH A DONOR-RESTRICTED ENDOWMENT FUND AND FUND DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS AN ENDOWMENT. AS REQUIRED BY SFAS NO. 117, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. THE SCHOOL IS ALSO THE BENEFICIARY OF AN ENDOWMENT THAT IS HELD BY THE EDWIN M. LAVINO PERPETUAL TRUST. PART X, LINE 2: THE SCHOOL ACCOUNTS FOR UNCERTAINTIES IN INCOME TAXES IN ACCORDANCE WITH AUTHORITATIVE GUIDANCE, WHICH PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. MANAGEMENT DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD AT JUNE 30, 2022 AND 2021. PART XI, LINE 2D - OTHER ADJUSTMENTS: SCHOLARSHIPS & FINANCIAL AID -8,333,056. GAIN ON BENEFICIAL INTEREST IN PERPETUAL TRUST -4,119,764. INVESTMENT FEES -151,944. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -230,465. RENTAL EXPENSES -24,741. FUNDRAISING EXPENSES -1,884. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 230,465. RENTAL EXPENSE 24,741. FUNDRAISING EXPENSES 1,884. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS & FINANCIAL AID 8,333,056. INVESTMENT FEES 151,944. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE ORGANIZATION'S NONDISCRIMATORY POLICY IS PUBLISHED IN LOCAL NEWSPAPERS. THE FOLLOWING IS ALSO PUBLISHED ON THE ACADEMY'S WEBSITE: AT GERMANTOWN ACADEMY, WE WELCOME STUDENTS, FACULTY, AND STAFF FROM ALL ETHNIC, CULTURAL, RACIAL, RELIGIOUS, AND SOCIOECONOMIC GROUPS, AND OF ALL SEXUAL ORIENTATIONS WHO RESPECT THE VALUES SET FORTH IN OUR SCHOOL'S GENERAL MISSION STATEMENT AND IN THIS DIVERSITY STATEMENT OF PURPOSE AND PRACTICE. WE HONOR OUR SCHOOL'S DIVERSITY BY RESPECTING THE VARIOUS CUSTOMS AND TRADITIONS OF ALL MEMBERS OF OUR COMMUNITY. SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVED BOOKS AND SCHOOL SUPPLIES FROM THE STATE OF PENNSYLVANIA. EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICE COLLEGE COUNSELING SERVICES TO HIGH SCHOOL STUDENTS 259943 0 0 0 0 0 0 259943 0 259943 1 0 1 0 1 0 PART III ACCOUNTING METHOD: SCHEDULE F, PART IV, LINE 1: THE ORGANIZATION INVESTS IN PARTNERSHIP INTERESTS, THROUGH WHICH TRANSFERS TO FOREIGN CORPORATIONS ARE MADE. NO TRANSFERS DURING THE PARTNERSHIP'S REPORTING PERIOD EXCEEDED THE THRESHOLD FOR REPORTING. SCHEDULE F, PART IV, LINE 3: THE ORGANIZATION INVESTS IN PARTNERSHIP INTERESTS, THROUGH WHICH THE ORGANIZATION HOLDS INDIRECT INTERESTS IN FOREIGN CORPORATIONS. THE PERCENTAGE OWNERSHIP DURING THE PARTNERSHIP'S REPORTING PERIOD DID NOT EXCEED THE THRESHOLD FOR REPORTING. SCHEDULE F, PART IV, LINE 5: THE ORGANIZATION INVESTS IN PARTNERSHIP INTERESTS, THROUGH WHICH THE ORGANIZATION HOLDS INDIRECT INTERESTS IN FOREIGN PARTNERSHIPS. THE PERCENTAGE OWNERSHIP DURING THE PARTNERSHIP'S REPORTING PERIOD DID NOT EXCEED THE THRESHOLD FOR REPORTING. BARNS & BLOOMS 17640 6975 10665 615 1269 17640 6975 10665 615 1269 1884 8781 1 STUDENT GRANTS FOR TUITION 420 8333056 PART I, LINE 2: ALL RECIPIENTS ARE INDIVIDUALS RECEIVING SCHOLARSHIPS. DETERMINATION OF STUDENTS' QUALIFICATIONS FOR THE AWARDS ARE MADE BY THE SCHOOL'S FINANCIAL AID COMMITTEE. SCHOLARSHIPS ARE AWARDED TO STUDENTS BASED ON FINANCIAL NEED. SCHOLARSHIP CANDIDATES ARE EVALUATED FOR FINANCIAL NEED BY AN INDEPENDENT SCHOLARSHIP SERVICE. SCHOLARSHIPS ARE PROVIDED AS A REDUCTION TO TUITION. X X 1 1 X X X 0 0 0 0 0 0 0 0 0 RICHARD SCHELLHAS HEAD OF SCHOOL 440000 0 0 0 0 0 33363 0 19213 0 492576 0 0 0 JEFFREY THOMPSON DIRECTOR OF AQUATICS 157896 0 0 0 0 0 12745 0 82436 0 253077 0 0 0 SUSAN SZCZEPKOWSKI HEAD OF LOWER SCHOOL 148270 0 0 0 0 0 12603 0 89281 0 250154 0 0 0 AUDREY SCHNUR DIRECTOR INSTITUTIONAL ADVANCEMENT 189851 0 0 0 0 0 16035 0 916 0 206802 0 0 0 JONAS JESWALD HEAD OF MIDDLE SCHOOL 146223 0 0 0 0 0 12429 0 46830 0 205482 0 0 0 MOLLY MACKEAN HEAD OF UPPER SCHOOL 156550 0 0 0 0 0 7827 0 8526 0 172903 0 0 0 THOMAS P TAFT FMR CHIEF OPERATING OFFICER 113489 0 0 0 0 0 9276 0 8223 0 130988 0 0 0 PART I, LINE 1A THE HEAD OF SCHOOL IS REQUIRED TO LIVE ON CAMPUS AS A CONVENIENCE TO THE ORGANIZATION AND AS A CONDIITON OF HIS EMPLOYMENT. THIS HOUSING ALLOWANCE IS NOT INCLUDED IN TAXABLE INCOME AS IT IS EXCLUDED UNDER INTERNAL REVENUE CODE SECTION 119. THE HEAD OF SCHOOL IS ALSO PROVIDED CLEANING SERVICES AS PART OF HIS EMPLOYMENT AGREEMENT AND THESE SERVICES ARE ALSO CONSIDERED TO BE A NONTAXABLE FRINGE BENEFIT DUE TO THE NUMBER OF BUSINESS ACTIVITIES THAT OCCUR AT THE RESIDENCE. A MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT 232245125 613609A48 2012-07-26 11600000 REFINANCE 2010 ISSUE 0 0 0 B MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232245125 613609L46 2021-07-01 25265000 REFINANCE 2014 ISSUE AND CAPITAL PROJECTS 0 0 0 A 7375000 12248841 41840 209030 11997372 2012 1 0 1 1 B 29267488 14263273 4307812 315746 1652994 11306890 15991858 2023 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 A 1 B 1 SCHEDULE K SUPPLENTAL INFORMATION BOND ISSUE A: THE DIFFERENCE BETWEEN THE ISSUE PRICE OF $11,600,000 AND THE GROSS PROCEEDS OF $12,248,841 IS PREMIUM ON THE BOND ISSUE. BOND ISSUE B: THE DIFFERENCE BETWEEN THE ISSUE PRICE OF $25,265,000 AND THE GROSS PROCEEDS OF $29,267,488 IS PREMIUM ON THE BOND ISSUE. PER IRS INSTRUCTIONS NAMES ARE NOT PER IRS INSTRUCTIONS, INTERESTED PERSONS ARE NOT INDIVIDUALLY NAMED. 177305 TUITION REMISSION TUITION ASSISTANCE X 193657 PURCHASE PRICE X 7 68335 NYSE 0 0 1 0 PART I, COLUMN (B): THE NUMBER IN COLUMN B REPRESENTS THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE MAY MAKE DECISIONS WHEN THE BOARD IS NOT IN SESSION WHEN PREVIOUSLY AUTHORIZED BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 2 TRUSTEES MICHAEL JORDAN AND SAMANTHA MACGREGOR JORDAN HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY A CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM WITH A STRONG BACKGROUND IN ACCOUNTING AND TAX MATTERS FOR CLIENTS OF THIS TYPE. INFORMATION IS PROVIDED TO THIS FIRM BY OUR ORGANIZATION AND, UPON COMPLETION OF THE FORM BY OUR ACCOUNTANTS, THE FORM IS REVIEWED BY OUR ORGANIZATION FOR ACCURACY AND COMPLETENESS. AT THE CONCLUSION OF OUR REVIEW THE FORM IS FILED WITH THE INTERNAL REVENUE SERVICE AND STATE OF PENNSYLVANIA. A COPY OF THE FORM 990 IS FORWARDED TO EACH TRUSTEE PRIOR TO BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS SIGN A CONFLICT OF INTEREST STATEMENT ANNUALLY WHICH IS MONITORED BY THE HEAD OF THE BOARD. NO MEMBER OF THE BOARD OF TRUSTEES NOR ANY MEMBER OF A BOARD COMMITTEE SHALL RECEIVE REMUNERATION DIRECTLY OR INDIRECTLY AS A RESULT OF BUSINESS DECISIONS OR CONTRACTS WHICH ARE AWARDED BY THE BOARD UNLESS A DETERMINATION HAS BEEN MADE BY THE BOARD OR THE EXECUTIVE COMMITTEE OF THE BOARD THAT IT IS IN THE BEST INTEREST OF THE ACADEMY TO ALLOW SUCH AN ARRANGEMENT. IN SUCH CASES THE CONFLICT OF INTEREST SHALL BE CLEARLY ACKNOWLEDGED AND THE AFFECTED BOARD OR COMMITTEE MEMBER SHALL ABSTAIN FROM PARTICIPATION IN THE DECISION TO AWARD SUCH CONTRACT OR TO TAKE ACTION RESULTING IN THE AWARD OF SUCH CONTRACT. IT SHALL BE THE RESPONSIBILITY OF THE MEMBERS OF THE BOARD OF TRUSTEES AND OF THE COMMITTEES OF THE BOARD TO CALL TO THE ATTENTION OF THE PRESIDENT OF THE BOARD OF TRUSTEES OR THE CHAIRMAN OF THE BOARD COMMITTEE INVOLVED, ANY SITUATION WHERE A CONFLICT OF INTEREST OR POSSIBLE CONFLICT OF INTEREST MAY BE FOUND. THE CONFLICT OF INTEREST POLICY DOES MENTION FAMILY AND BUSINESS RELATIONSHIPS AS A SOURCE OF POTENTIAL CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES AND THE FINANCE COMMITTEE CAREFULLY EXAMINE THE COMPENSATION PROPOSAL FOR THE NEXT FISCAL YEAR DURING THE COURSE OF THE PREVIOUS FALL AND APPROVE IT DURING THE JANUARY MEETING. THE SALARIES OF ALL FACULTY AND ADMINISTRATORS INCLUDING THE HEAD OF SCHOOL ARE BENCHMARKED BASED ON POOLED SURVEY DATA FROM 56 COMPARABLE SCHOOLS NATIONWIDE (DAY SCHOOLS WITH OVER 750 STUDENTS). ALL OTHER STAFF MEMBERS ARE PAID BASED ON DATA COLLECTED THROUGH "SALARY.COM." FOR EACH POSITION, BASED UPON EXPERIENCE, COMPENSATION IS SET BETWEEN THE 25TH AND 75TH PERCENTILE. THIS POLICY ENSURES FAIR COMPENSATION IS DETERMINED INDEPENDENTLY AND WITHOUT UNDUE INFLUENCE OF OUR ORGANIZATION. COMPENSATION RELATED INFORMATION IS RECORDED IN BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: GAIN ON BENEFICIAL INTEREST IN PERPETUAL TRUST -4,119,764. PERPETUAL TRUST (1) INVESTMENTS PA MELLON BANK T 755045 15355516 0.59100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1