2022-05-02T10:31:06-05:00 2021-06-30 420714325 RSM US LLP 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2020-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2022-04-30 1 JOHN KOWALIK XXX-XX-XXXX ELIZABETH W HELLER P00397829 2022932200 2022-04-30 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z JOHN KOWALIK 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 72609367 0 X WWW.POTOMACSCHOOL.ORG X 1907 DC AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 24 24 416 540 14009 0 5225882 3960184 46249431 44507658 815389 542460 510766 655580 52801468 49665882 4666783 5188654 0 0 28799678 29465280 102750 49500 1810730 15821216 13509201 49390427 48212635 3411041 1453247 218505222 225192195 84965240 78867135 133539982 146325060 X AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 0 0 39557214 5188654 44507658 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1060 STUDENTS. 39557214 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 0 1 0 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 91 0 1 416 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 24 24 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X DYANA CONROY 7033564100 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 SAMEER BHARGAVA CHAIR 2.00 X X 0 0 0 MARY LOUISE LEIPHEIMER VICE CHAIR 2.00 X X 0 0 0 KAREN SONNEBORN SECRETARY 2.00 X X 0 0 0 THOMAS J RIETANO TREASURER 2.00 X X 0 0 0 NOHA ABDALLA TRUSTEE 2.00 X 0 0 0 NATALIE F BUSH TRUSTEE 2.00 X 0 0 0 DOUGLAS M CUMMINGS TRUSTEE 2.00 X 0 0 0 MICHAEL L DAVIS TRUSTEE 2.00 X 0 0 0 ELLEN M DWYER TRUSTEE 2.00 X 0 0 0 DANIEL I FISHER TRUSTEE 2.00 X 0 0 0 JAMES B FLEMING TRUSTEE 2.00 X 0 0 0 TANYA L R LA FORCE TRUSTEE 2.00 X 0 0 0 REED LANDRY TRUSTEE 2.00 X 0 0 0 MARYANNE LAVAN TRUSTEE 2.00 X 0 0 0 ROBERT D MOSER TRUSTEE 2.00 X 0 0 0 NORMA C RAMSEY TRUSTEE 2.00 X 0 0 0 JAMES H ROONEY TRUSTEE 2.00 X 0 0 0 ERIC W ROSENTHAL TRUSTEE 2.00 X 0 0 0 SUSAN N SCHIEFFER TRUSTEE 2.00 X 0 0 0 ABIGAIL SPANGLER TRUSTEE 2.00 X 0 0 0 PAUL SHERIDAN JR TRUSTEE 2.00 X 0 0 0 WON KIM TRUSTEE 2.00 X 0 0 0 CHARLES O ROSSOTTI TRUSTEE 2.00 X 0 0 0 MARTIN W SUMNER TRUSTEE 2.00 X 0 0 0 JOHN J KOWALIK HEAD OF SCHOOL 60.00 X 705321 0 140481 DYANA CONROY CFO/COO 60.00 X 327945 0 74602 BARBARA OVERSTREET DIRECTOR OF ADVANCEMENT 55.00 X 245043 0 36178 TIMOTHY JAEGER ASSOCIATE HEAD OF SCHOOL 60.00 X 250170 0 120264 JOHN MATHEWS HEAD OF MIDDLE SCHOOL 55.00 X 186128 0 93360 NANCY POWELL HEAD OF LOWER SCHOOL 55.00 X 176518 0 36325 DOUGLAS MCLANE HEAD OF UPPER SCHOOL 55.00 X 176981 0 75869 2068106 0 577079 55 0 1 0 COAKLEY & WILLIAMS 7475 WISCONSIN AVE 900 BETHESDA MD 20814 GENERAL CONTRACTOR 2284935 RED COATS INC PO BOX 79579 BALTIMORE MD 21279 JANITORIAL 529258 SAGE DINING SERVICES INC 1402 YORK ROAD SUITE 100 LUTHERVILLE MD 21093 FOOD SERVICE 328616 CANNON WASHINGTON INC DEPARTMENT CHICAGO 19824 PALATINE IL 60055 ARCHITECT 258095 INTERNETWORKING SOLUTION PROFESSIONALS L PO BOX 400 MCLEAN VA 22101 TECHNOLOGY 171200 13 1816 3958368 589731 3960184 TUITION 900099 43991760 43991760 TRANSPORTATION 900099 397712 397712 SUMMER PROGRAMS 900099 81216 81216 ENRICHMENT PROGRAM 900099 36970 36970 44507658 46180 -25440 71620 23374565 22878285 496280 496280 39449 456831 650107 1816 46521 603586 603586 38 18679 -18641 -18641 OTHER INCOME 900099 70635 70635 70635 49665882 44507658 14009 1184031 5188654 5188654 1117785 951032 116903 49850 21836992 18648528 2162432 1026032 1571377 1321799 190927 58651 3387992 2849885 411651 126456 1551134 1351015 130714 69405 83175 52529 27958 2688 66732 42145 22431 2156 49500 49500 66675 66675 994183 656064 310693 27426 58887 37299 19852 1736 471115 256580 103287 111248 666894 457224 192812 16858 1630827 1080124 506427 44276 81019 81019 236171 213567 14465 8139 1280814 811277 431787 37750 5035206 3189330 1697464 148412 433146 293681 128252 11213 DEPARTMENT EXPENSES 1023128 1006285 15489 1354 BAD DEBTS 125197 81709 43488 SUMMER PROGRAM 110910 110910 FOOD AND ENTERTAINMENT 64240 40691 21656 1893 1080882 835867 229328 15687 48212635 39557214 6844691 1810730 300 300 46421942 48114662 6044733 3465167 216216 145062 140368 92047 465849 441557 155968780 51115881 108862639 104852899 33877557 47746534 22475618 20333967 218505222 225192195 3083682 3739714 16959702 22381875 28223120 23063308 10695800 6945800 26002936 22736438 84965240 78867135 X 122575424 136533611 10964558 9791449 133539982 146325060 218505222 225192195 X 1453247 10387384 944447 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 52840311 278776 10765467 1749902 62134652 50026524 3975401 212794 1374408 52840311 49023345 3129335 2445783 4571939 50026524 42885335 4395582 3278736 1536308 49023345 35924093 4185401 4226926 1451085 42885335 0.91500 0.06020 0.02480 0 0 9754656 9754656 132152735 39569192 92583543 13647514 11546689 2100825 413875 413875 104852899 LIMITED PARTNERSHIPS 10161642 C COMMON FUND INVESTMENTS 37584892 F 47746534 DEFERRED COMPENSATION 601052 DEPOSITS 29900 CONTRACT ASSETS 19703015 20333967 DEFERRED COMPENSATION 601052 INTEREST RATE SWAP AGREEMENT 2432371 CONTRACT LIABILITY 19703015 22736438 X 54816616 10387384 -5188654 5198730 49617886 66675 -18679 47996 49665882 42975985 18679 18679 42957306 66675 5188654 5255329 48212635 PART V, LINE 4: ENDOWMENT FUNDS ARE USED TO PROVIDE FINANCIAL AID, PURCHASE LIBRARY BOOKS, FRAME STUDENT ARTWORK, FUND COMMUNITY SERVICE, FACULTY SALARIES AND ENRICHMENT, SCIENCE PROGRAMS, THEATER AND MUSIC, AND GLOBAL STUDIES. PART X, LINE 2: THE SCHOOL IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE SCHOOL QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. BUSINESS INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. FOR THE YEAR ENDED JUNE 30, 2021, THE SCHOOL HAD IMMATERIAL UNRELATED BUSINESS INCOME TAXES AND, ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS REQUIRED IN THE ACCOMPANYING FINANCIAL STATEMENTS. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT THE SCHOOL HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THE SCHOOL FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH FEW EXCEPTIONS, THE SCHOOL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2018. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -5,188,654. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -18,679. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 18,679. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 5,188,654. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 AN ANNOUNCEMENT IS PRINTED IN THE WASHINGTON POST NEWSPAPER. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 665643 0 0 0 0 0 0 665643 0 665643 0 0 0 0 0 0 PART III ACCOUNTING METHOD: X X X X X 1 GRAHAM-PELTON CONSULTING INC 39 BEECHWOOD ROAD SUMMIT NJ 07901 FUNDRAISING CONSULTING SERVICES 0 0 49500 -49500 49500 -49500 VA SPRING AUCTION 617952 316 617636 32885 FALL FROLIC CARNIVAL 32471 32471 13636 1 1500 1500 651923 1816 650107 46521 46521 603586 1 FINANCIAL AID AWARDS TO STUDENTS 190 5188654 PART I, LINE 2: THE POTOMAC SCHOOL UTILIZES THE SERVICES OF THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, STUDENT SCHOLARSHIP SERVICES (SSS), TO HELP EVALUATE EACH STUDENT'S NEEDS FOR FINANCIAL ASSISTANCE. EACH APPLICANT COMPLETES A STANDARDIZED FORM AND AN EVALUATION IS PRODUCED WHICH INCLUDES RECOMMENDATIONS AS TO THE LEVEL OF FINANCIAL ASSISTANCE REQUIRED. THE SCHOOL USES THESE REPORTS AS A GUIDE TO DETERMINE WHICH STUDENTS REQUIRE FINANCIAL ASSISTANCE AND AN ESTIMATE OF THAT NEED. X X 1 1 X X X X 0 1 0 0 0 0 0 0 0 JOHN J KOWALIK HEAD OF SCHOOL 520384 0 0 0 184937 0 42100 0 101686 0 849107 0 0 0 DYANA CONROY CFO/COO 297210 0 0 0 30735 0 46200 0 31987 0 406132 0 20000 0 TIMOTHY JAEGER ASSOCIATE HEAD OF SCHOOL 225417 0 0 0 24753 0 39835 0 83405 0 373410 0 20000 0 BARBARA OVERSTREET DIRECTOR OF ADVANCEMENT 242948 0 0 0 2095 0 18214 0 21014 0 284271 0 0 0 JOHN MATHEWS HEAD OF MIDDLE SCHOOL 185561 0 0 0 567 0 26386 0 69704 0 282218 0 0 0 DOUGLAS MCLANE HEAD OF UPPER SCHOOL 176632 0 0 0 349 0 11911 0 66575 0 255467 0 0 0 NANCY POWELL HEAD OF LOWER SCHOOL 172190 0 0 0 4328 0 18361 0 20550 0 215429 0 0 0 PART I, LINE 1A THE SCHOOL COMPENSATES THE HEAD OF SCHOOL AND VARIOUS DEPARTMENT HEADS. THE SCHOOL PROVIDES THE HEAD OF SCHOOL AND VARIOUS DEPARTMENT HEADS WITH HOUSING. THE RENTAL VALUE REFLECTS THE FAIR MARKET VALUE FOR COMPARABLE HOUSES IN THE AREA. THE TRANSACTIONS WERE APPROVED BY THE BOARD OF TRUSTEES WITH ADEQUATE DOCUMENTATION. FOLLOWING EMPLOYEES RECEIVED NONTAXABLE HOUSING ALLOWANCE: JOHN KOWALIK - $68,979 TIMOTHY JAEGER - $55,376 JOHN MATHEWS - $41,421 DOUGLAS MCLANE - $41,421 PART I, LINE 4B FOLLOWING EMPLOYEES PARTICIPATE IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN 457(F) AND THE SCHOOL CONTRIBUTED FOLLOWING AMOUNTS DURING THE CALENDAR YEAR. DYANA CONROY - $25,000 TIMOTHY JAEGER - $25,000 JOHN MATHEWS - $10,000 FOLLOWING EMPLOYEES RECEIVED A PAYMENT FROM A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN 457(F) DURING THE CALENDAR YEAR. DYANA CONROY - $23,933 TIMOTHY JAEGER - $22,773 A FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2004-07-12 16430000 REDEMPTION OF PRIOR BONDS AND SCHOOL CONSTRUCTION 0 0 0 B FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2005-08-04 20570000 CONSTRUCTION OF NEW UPPER SCHOOL BUILDING 0 0 0 A 6342926 16430000 16430000 2004 1 0 1 1 B 7386407 20570000 20570000 2006 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 1 1 PNC BANK 28.000000000000 0 0 0 0 1 A 1 B 1 SCHEDULE K, PART IV, LINE 2C, REBATE NOT YET DUE: NO CALCULATION REQUIRED FOR THE C SERIES DUE TO MEETING REBATE EXCEPTION. X 37 589731 CONFIRMATION FROM BROKER 0 0 1 0 PART I, COLUMN (B): REPORTING THE NUMBER OF ITEMS RECEIVED FORM 990, PART VI, SECTION A, LINE 2 ROBERT MOSER AND SAMEER BHARGAVA - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 4 BYLAWS WERE UPDATED TO ENSURE: 1. LANGUAGE ACCURATELY REFLECTED CURRENT BOARD PRACTICES; AND 2. THE ADDITION OF BOARD COMMITTEES NOT PREVIOUSLY DOCUMENTED WERE ACCURATELY REFLECTED AND THE AUTHORITY AND SCOPE GIVEN TO THEM BY THE BOARD WAS DEFINED. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. AFTER THAT IT GOES TO THE FULL BOARD FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C FOR KEY EMPLOYEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE HEAD OF SCHOOL OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT IT CAN BE COMMUNICATED TO THE BOARD OF TRUSTEES WHO CAN, IN COUNSEL WITH THE HEAD OF SCHOOL, THEN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS THEY SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL KEY EMPLOYEES. FOR BOARD OF TRUSTEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE CHAIR AND VICE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE CHAIR OF THE COMMITTEE ON TRUSTEES OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT THE BOARD OF TRUSTEES CAN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS IT SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE REVIEWS AND DISCUSSES THE TOTAL COMPENSATION PACKAGES OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS. SALARY INFORMATION ONLY FOR SIMILAR POSITIONS FROM COMPARABLE SCHOOLS ARE USED TO ESTABLISH A REASONABLE COMPENSATION. THE COMMITTEE HAS THE AUTHORITY TO APPROVE THE COMPENSATION PACKAGE OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 A PUBLIC INSPECTION FILE IS MAINTAINED ONSITE THAT INCLUDES THE 990, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. FORM 990, PART XI, LINE 9: INTEREST RATE AGREEMENTS GAIN 944,447.