2021-05-05T10:47:34-05:00 2020-06-30 135565207 KPMG LLP 210 Park Ave Suite 2650 Oklahoma City OK 73102 990 2019-07-01 850129165 Albuquerque Academy ALBU 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Bruce Orem Chief Financial Officer 5058283200 2021-05-03 1 Mark Shelton P01213482 6123055000 2019 2022-09-23 18:48:47Z Julianne Puente 6400 Wyoming Blvd NE Albuquerque NM 87109 63168466 0 X www.aa.edu X 1955 NM Albuquerque Academy is a non-denominational, coeducational, independent day school. 25 25 901 419 47570 40795 2120342 2754101 26393445 25266296 4708568 3952166 6860764 1019170 40083119 32991733 23375 0 0 0 23429263 22633024 0 0 585654 11002287 10615185 34454925 33248209 5628194 -256476 143245332 142402536 67957282 70932878 75288050 71469658 X See Schedule O. 0 0 25580532 22845842 Albuquerque Academy is a nationally-recognized independent, college preparatory day school that serves a diverse student body in grades six through twelve. The school offers educational programs that promote a passion for lifelong learning, foster creativity and connection, and encourage community service. See Schedule O. 1099605 783841 Albuquerque Academy normally offers a six week summer program. Due to COVID related restrictions, 2020 summer camps and enrichment courses were cancelled. Most of the reported expense and revenue is related to the July 2019 summer program. See Schedule O. 1316352 1267091 Albuquerque Academy has partnered with Sage Dining Services to provide food service to the on-campus dining halls. Sage focuses on safety, quality service, community, nutrition, education, sustainability, and delicious food made from scratch using seasonal and locally-sourced ingredients when available. See Schedule O. 340604 594758 Charger Aquatics ("CAQ")CAQ is a comprehensive, year-round aquatics program that provides swimmers in the greater Albuquerque area with opportunities to learn, participate, and compete in the school's Natatorium and is offered as part of the school's ongoing commitment to provide service and outreach to the community at large. CAQ offers membership in USA-sanctioned clubs, including USA Swimming and US Masters Swimming, along with a selection of non-member aquatics classes such as swim lessons and lifeguard certification. Total enrollment for all programs was 265 for the fiscal year ended June 30, 2020.The financial results directly below represent all other program services expenses and revenues: 340604 594758 28337093 1 1 0 0 0 0 0 1 0 1 1 1 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 47 0 1 901 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 25 25 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NM X Sandy Timmons 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Andrew Watson Head of School 40.00 0.00 X 361157 0 44862 Bruce Orem Chief Financial Officer 40.00 0.00 X 202500 0 12150 Nancy Parker Business Manager 40.00 0.00 X 141196 0 12829 Stephanie Levy-Lipkowitz Assistant Head of School 40.00 0.00 X 133508 0 30649 Jeffrey Morgan Campaign Director 40.00 0.00 X 129071 0 10981 Taryn Bachis Athletics Director 40.00 0.00 X 120232 0 11160 Christine Lenhart Head of 10/12 Division 40.00 0.00 X 113160 0 26968 Thomas Smidt III Chair 10.00 0.00 X X 0 0 0 Diane Ogawa Vice Chair 5.00 0.00 X X 0 0 0 Chris Jillson Treasurer 3.00 0.00 X X 0 0 0 Eric Weinstein Secretary 3.00 0.00 X X 0 0 0 Christina Sheehan Assistant Secretary 3.00 0.00 X X 0 0 0 Chaouki Abdallah General Trustee 3.00 0.00 X 0 0 0 Patrick Apodaca General Trustee 3.00 0.00 X 0 0 0 Notah Begay III General Trustee 3.00 0.00 X 0 0 0 Chris Buttner General Trustee 3.00 0.00 X 0 0 0 Molly Cheves General Trustee 3.00 0.00 X 0 0 0 Arthur Chu General Trustee 3.00 0.00 X 0 0 0 Susan Barger Fox General Trustee 3.00 0.00 X 0 0 0 Joselyne Gallegos General Trustee 3.00 0.00 X 0 0 0 Adam Honegger Charter Trustee 3.00 0.00 X 0 0 0 Francine Jacobs General Trustee 3.00 0.00 X 0 0 0 Ian McKinnon Charter Trustee 3.00 0.00 X 0 0 0 Ronald Moya Charter Trustee 3.00 0.00 X 0 0 0 Chamiza Pacheco De Alas General Trustee 3.00 0.00 X 0 0 0 Teresa Pallozzi General Trustee 3.00 0.00 X 0 0 0 Kevin Pierce General Trustee 3.00 0.00 X 0 0 0 Erika Rimson General Trustee 3.00 0.00 X 0 0 0 Valerie Romero-Leggott Charter Trustee 3.00 0.00 X 0 0 0 Jesus Salazar General Trustee 3.00 0.00 X 0 0 0 Randy Talbot Charter Trustee 3.00 0.00 X 0 0 0 Chandler Todd General Trustee 3.00 0.00 X 0 0 0 1200824 0 149599 10 0 1 0 SAGE Dining Services Inc 1402 York Road Lutherville MD 21093 Cafeteria and food services 1245020 National Roofing Co Inc 6821 Academy Parkway West NE Albuquerque NM 87109 Roof repairs and maintenance 1091286 Engie Servies US Inc PO BOX 31001-2204 Pasadena CA 911102204 HVAC system maintenance and repairs 166610 Brace Builders LLC PO Box 83073 Albuquerque NM 871983073 Building remodel and renovation services 158631 Meketa Investment Group 100 Lowder Brook Drive Suite 100 Westwood MA 02090 Investment advisory services 133333 10 X 49116 1357499 1347486 19615 2754101 Tuition and fees 611110 27420183 27420183 0 Cafeteria and food service 611110 1460040 1460040 0 Summer and outreach programs 611110 783841 783841 0 Financial assistance 611110 -4852794 -4852794 0 455026 455026 25266296 2059468 47570 2011898 31622175 107306 29699283 137500 1922892 -30194 1892698 1892698 565186 339950 225236 225236 Insurance proceeds 900099 791323 791323 Miscellaneous income 900099 2611 2611 793934 32991733 25491532 47570 4698530 X 760068 404839 268478 86751 8321 8321 16451611 14514296 1600337 336978 863981 759977 84250 19754 3359246 3211867 145490 1889 1189797 1053226 111143 25428 184854 184854 138389 138389 471865 471865 683451 539478 138376 5597 133841 34400 93192 6249 989552 756755 208522 24275 505995 271829 187655 46511 1167336 1005083 160843 1410 452087 333575 116775 1737 208064 97395 87074 23595 1848255 1701115 144753 2387 2044714 1895549 146534 2631 366899 329505 36932 462 Food service 1054719 1054719 Student and instruction 281908 281908 Outreach and community 83256 83256 33248209 28337093 4325462 585654 44136 661132 6309315 4554477 74104 63320 26024587 23283493 0 0 0 0 9113 231 158606 192153 408200 299167 87641580 59898816 24237763 27742764 15888320 23681777 31815086 21084091 0 0 0 0 38276102 40839931 143245332 142402536 3461120 2884933 0 0 22918096 22921304 36318365 35849912 0 0 0 0 4573599 4316767 0 3277800 686102 1682162 67957282 70932878 X 29407668 26122827 45880382 45346831 75288050 71469658 143245332 142402536 X -256476 -4924106 108217 1253973 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 339819 X X 0 85022345 109147 556435 0 2576524 2905941 80205462 79942168 3760245 4612783 0 51929 3240922 85022345 78679817 1622133 5649593 0 2638955 3370420 79942168 77233932 414381 9491664 0 4550000 3910160 78679817 85172516 1684299 1051803 0 7751942 2922744 77233932 0.48000 0.23000 0.29000 1 1 1 353024 353024 69342178 44256654 25085524 0 13590559 11995675 1594884 4355819 3646487 709332 27742764 Sandoval county real estate 7910000 F Dona Ana county real estate 28801 F Vanguard Total Stock Market Index, institutional shares 7509199 F Partnership investments 5636091 F 21084091 Albuquerque Academy for Boys Trust #1 33813536 Albuquerque Academy for Boys Trust #2 2902229 Split-interest agreement 739643 Cost of issuance, net 279288 Construction in progress 2050194 Accrued investment income 117151 Finance lease assets, net 921317 Operating lease assets 16573 40839931 Annuity and split-interest obligations 467801 Interest rate swap liability 431356 Finance lease liabilities 766432 Operating lease liabilities 16573 1682162 X Part III, Line 4: The Academy maintains a small art collection consisting of items donated to the school. Included in this collection is a series of photogravures, a flemish tapestry, and several oil paintings (including portraits of Mr. & Mrs. Simms, major donors to the Academy). The art collection is currently displayed in various venues across campus for the edification of our students as well as for the enjoyment of visitors of our campus. It is anticipated that items within the collection will grow in value over time and may eventually be sold to support various programs and initiatives benefiting the Academy's students. During the fiscal year ended June 30, 2020, the Academy did not receive any new donations of art, historical treasures or similar assets that were added to its existing art collection. Part V, Line 4: The Academy's endowment, consisting of permanently restricted, temporarily restricted, and quasi-endowment funds, provides vital financial support for the overall mission of the Academy. The endowment sustains opportunities of remarkable scope, including experiential and outdoor education, deep academic excellence, global exchanges and languages and sustainability initiatives closely attuned to a changing world. These programs make the student experience here one of the broadest in independent education. The endowment also supports our admission process and generous financial assistance program. These programs are committed to providing access to the Academy for students of talent and character from throughout the city, region, and (at times) country as they seek an enriched and meaningful educational experience. The Academy's endowment also supports outreach programs, including: Community Academy lectures, Charger Aquatics and Summer programs. Part X, Line 2: The Academy is a not-for-profit organization and qualifies as an organization described in Section 501(c)(3) of the Internal Revenue Code (IRC). As such, the Academy is exempt from federal income taxes under Section 501(a) except on net income derived from unrelated business activities. For the year ended June 30, 2020, the Academy has determined that no material income taxes are due for its activities. Accordingly, no provision for income taxes has been recorded in the accompanying financial statements. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the accompanying financial statements. The Academy files informational tax returns. In the normal course of business, the Academy is subject to examination by federal, state, local, and foreign jurisdictions, where applicable. As of June 30, 2020, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations for the Academy are from the year ended June 30, 2016 and forward. The Academy would recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. There were no such interest or penalties recorded for the year ended June 30, 2020. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 Schedule E, Part I, Line 3 The Academy enrolled 1,157 students during the fiscal year ended June 30, 2020. Female students accounted for 50% of total students enrolled, and male students accounted for 50% of total students enrolled. Approximately 53% of total students enrolled represented students of color. Students of color for the fiscal year ended June 30, 2020 were represented as follows: 2% African American, 12% Asian, 13% Hispanic, less than 1% Middle Eastern, less than 1% Native American, 25% Multi-ethnic and 47% Caucasian. The Academy publishes its racially nondiscriminatory policy on its website. In addition, the policy is printed on all admission materials, financial assistance materials, and the summer session catalogue. It is also included in all media advertisements. X X X X X 0 0 0 0 0 0 0 0 0 Andrew Watson Head of School 331157 0 30000 0 0 0 16800 0 28062 0 406019 0 0 0 Bruce Orem Chief Financial Officer 202500 0 0 0 0 0 12150 0 0 0 214650 0 0 0 Nancy Parker Business Manager 141196 0 0 0 0 0 8516 0 4313 0 154025 0 0 0 Stephanie Levy-Lipkowitz Assistant Head of School 133508 0 0 0 0 0 8620 0 22029 0 164157 0 0 0 Part I, Line 3 See Schedule O for discussion of establishing the compensation of the Academy's Head of School. A Village of Los Ranchos de Albuquerque 850236091 545610AR8 2010-09-21 37303574 See Part VI of Schedule K 0 0 0 A 605000 37304714 427496 6043078 30833000 2010 1 0 1 1 A 0 1 0 0 0 0 1 A 0 0 1 0 0 0 0 0 0 A 1 Schedule K - Part I In September 2010, the Academy requested the Village of Los Ranchos de Albuquerque, New Mexico issue $36,000,000 of Series 2010 bonds (i) for the purpose of refunding Series 1999 bonds and Series 2002 bonds and paying the costs associated with the termination of a swap agreement entered into in connection with the Series 2002 bonds and (ii) to finance the acquisition, installation and construction of certain infrastructure projects on the Academy campus. The Series 2010 bonds were issued at a premium of $1,303,574, resulting in total proceeds of $37,303,574. The Series 2010 bonds provided $6,043,078 in proceeds to fund updates to fire alarm and smoke detection systems and replacement of electrical load centers and motor control centers in original campus buildings, replacement of buried hot water and chilled water loop lines on the central and east campus, replacement of buried hot water loop lines on the west campus and replacement of existing west campus roof top HVAC units with roof top air handling units with chilled water coils and an air cooled chiller system and renovation of classroom buildings and fixtures, including classroom technology upgrades. In September 2013, the Academy completed all of its capital improvements and utilized all of the funds that were originally set aside in the Series 2010 issue. The Series 2010 bonds also provided $1,098,000 in proceeds to terminate swap arrangements that had been entered into in connection with the Series 2002 Bonds. Schedule K - Part II - Line 3 The total proceeds in Part II - Line 3 differ from the total issue price in Part I due to investment earnings on capital expenditures from proceeds. Schedule K - Part IV Line 2b The most recent due date for Form 8038-T would have been September 21, 2017. This form was not filed for the Series 2010 bonds because the bond proceeds were not invested and therefore not subject to arbitrage profits that must be reported under the provisions of section 148. Modrall Sperling Roehl Harris See Part V 121733 See Part V 0 Schedule L - Part IV, Columns (b) and (d) Line 1: Kevin Pierce, Trustee, is a current employee and Christina Sheehan, Trustee, is a current employee and shareholder of Modrall, Sperling, Roehl, Harris & Sisk, PA. Amount represents total payments to the organization for the fiscal year ended June 30, 2020. Form 990 - Part I - Line 1 - Mission Statement The Academy was the fortunate recipient of a transformational donation of land in the early sixties and chose to use this gift to ensure economic accessibility to students living throughout the city of Albuquerque and the region. Today the Academy offers students an education that is without equal in the Southwest. Students from area schools are served by teachers who deliver their subject matter in creative and engaging ways. Students in the 6/7 division follow a non-traditional schedule that allows adaptability in an ever-changing world. Students in the 8/9 division are given their own campus space and their own accountability to help them grow into confident young adults. For the 10/12 division, course work involves increasingly philosophical and analytical thought. Academy students serve the community to which they belong, compete in a variety of competitive sports and participate in a variety of academic clubs and student organizations. Most Academy students attend four-year colleges and universities upon graduation, many of them enrolling at some of the best universities in the country. Admission to the Academy is competitive; approximately 76% of those who applied for enrollment for the 2019/20 school year were offered admission. For the 2019/20 school year, the student body consisted of 50% boys and 50% girls, 53% are students of color, and approximately 24% received approximately $4.7 million in financial assistance. Financial assistance is based on demonstrated financial need; only after students are admitted and their needs are assessed might financial assistance be offered. Form 990 - Part III - Line 1 - Organization's Mission We believe that children's lives change when their natural passion for learning is nurtured and transformed into habits of life-long learning and reflection. We believe that the world changes as these children learn to serve country and community with wisdom, conviction, and compassion. In light of these beliefs: We serve students of talent and character, offering them an education that broadens their perspective, sharpens their minds, strengthens their bodies, and engages their hearts. We commit to creating a caring, inclusive, and just community, using the geography and culture of our home in the Southwest to enrich our educational programs and to foster creativity, personal balance and a connection to the natural world. We devote our resources to ensure economic accessibility to our students and to support the wider community through outreach and community service. We entrust this mission to our graduates and successors as we preserve our resources and serve the children of generations to come. Form 990 - Part III - Statement of Program Accomplishments The Academy opened its doors in the fall of 1955 with 12 boys in grades 7 through 9, two teachers, and founding Head William Wilburn. Classes were held in rented space in the Parish Hall of St. Michael's and All Angels Church. In 1957, enrollment had grown to 75 boys and the school moved to a 27-acre site on north Edith Boulevard in Albuquerque, NM. The first class of seven boys graduated in 1960. In 1966, the school moved to its present location, and in 1967/68 was home to 405 boys. Girls were admitted beginning in 1973. For the school year 2019/20, the Academy served 1,157 girls and boys in grades 6 through 12. The Academy's remarkable growth was made possible largely through the transformational gift of Albert G. Simms, a New Mexico financier and rancher, and his wife, Ruth Hanna McCormick Simms. In the early 1960's the Simms gave or bequeathed to the Academy (in trust) more than 12,000 acres of undeveloped land and 8,000 shares of Albuquerque National Bank stock. The undeveloped land has been sold resulting in the endowment that today enables education in a beautiful and uplifting environment, and also has provided the school its campus. The uniqueness of the Academy is due, in large part, to its commitment to its admission policy, and to providing accessibility to qualified students from throughout the greater Albuquerque community. Every Academy student benefits from the school's commitment to accessibility and affordability. Direct support from the endowment covers approximately 25% of the cost not covered by tuition. A further commitment of the Academy is to diversity and dedicating the school's resources to creating an environment in which all students can thrive. It is the responsibility of all the school's constituents to make this environment conducive to learning and to foster mutual respect for one another. Students of color (including students of Middle Eastern, Hispanic, African American, Asian, and Native American ancestry) represented approximately 53% of the total student population for the 2019/20 school year. Appreciation for diversity is also extended to those of various socioeconomic levels. Academy students benefit academically from small classes (averaging 20 students per class in grades 6 through 7 and 15 students per class in grades 8 through 12) and a teacher-to-student ratio of 1:10. In May 2020, a total of 583 advance placement examinations were ordered for 319 Academy students. Due to the COVID-19 pandemic, final records of the number of exams taken and scores received are not available. The 2020 graduating class had 23 National Merit Scholarship semifinalists, 2 commended students and 9 National Hispanic Scholars. Almost all Academy graduates enroll in a four-year college or university immediately upon graduation. Form 990 - Part III - Statement of Program Accomplishments Summer Program: Due to COVID-related national and statewide health guidelines and operating restrictions, the Academy cancelled 2020 Think Academy Summer and ThinkIt! academic enrichment and fine arts classes, camps, and athletic programs. The Academy summer session did offer 9 online academic credit courses in math and science to 108 high school students. Prior to the cancellation, the Academy had enrolled 1,550 children of the greater Albuquerque community (most non-affiliated with the regular school year) in 298 class offerings including early childhood programs, a day camp, various sports camps and swim instruction for children from preschool to high school. The summer program has been an integral part of the Academy since 1984, reinforcing the school's unique mission of accessibility, affordability, excellence and outreach. An important outreach effort is the Multicultural Summer Honors Program, a summer scholarship program for academically talented and motivated African American, Native American, Hispanic, and other students who will be entering the fourth and fifth grades. Overall, the summer programs build a broader sense of community as summer students and their siblings, as well as children of faculty and alumni, return summer after summer. The session is staffed by qualified and talented individuals who come from throughout New Mexico and the wider national and international educational community. Community Builders: Community outreach is an important aspect of the Academy's mission. The school is deeply committed to making a positive impact on the greater Albuquerque community, the state of New Mexico and beyond. Outreach initiatives are abundant and community service is part of the curriculum at all grade levels. Each year students undertake projects at numerous non-profit organizations in the community. Community Builders is a tuition free program that gives students from the Academy and other area schools an opportunity to learn the "nuts and bolts" of community philanthropy and non-profit organizations. The program includes a mix of site visits and meetings with community leaders to discuss a variety of topics, including types of non-profits, legal and ethical issues in the non-profit sector, grant writing for non-profits, non-profit governing boards and community leadership. At the end of the program students come together as a mock foundation to make decisions about how to support some of the non-profits they studied, both financially and through volunteer work. The program is supported by donors whose funds can be allocated among studied non-profits. Community Academy: Community Academy supports the Academy's commitment to community outreach and life-long learning. Community Academy offers a continuing evening lecture series, free of charge to the entire community, presented by Academy faculty, alumni, and community leaders with expertise in their fields. Form 990 - Part III - Statement of Program Accomplishments The Academy dining halls provide lunch every school day for students, faculty and staff. Sage, the school's new food services vendor, has served independent schools for over 25 years. Sage's mission is to create exceptional dining experiences that delight the senses, inspire minds and foster community. They provide nutritious meals, prepared with care, presented in an attractive manner and served in a friendly atmosphere by a courteous staff. They operate under a comprehensive sustainability initiative that safeguards the environment without losing quality. Team members have continuous training on everything from preventing food allergy reactions and recognizing signs of eating disorders to kitchen safety and preparing authentic international cuisine. The Sage Team has become a part of the Academy community, sharing every success and joining in every celebration. They tailor each menu for us, using fresh, locally sourced ingredients so the Academy knows we're getting the best of our region. Form 990, Part VI, Section B, line 11b Form 990 is prepared by the Academy's Controller with a review by the Academy's Chief Financial Officer and by an external tax preparer. The Board of Trustee's Audit & Risk Committee members with Academy employees (Head of School and Chief Financial Officer) review the form in detail prior to filing with the Internal Revenue Service (IRS). Trustee members utilize this time to ask questions, clarify data and make suggestions for any changes. Any agreed upon changes are incorporated into the Form, with a final review undertaken by the Controller and the Chief Financial Officer. The Form is submitted electronically to the IRS in a timely manner. The Board of Trustees receive the Form 990 prior to the filing of the return. The Academy values those few donors who request that they remain anonymous to the community. To that end, to protect such donors and keep the school's promise that their identity will not be widely known, Schedule B of Form 990 is not provided to all Trustees of the Academy. All other portions of the Form 990 are provided to all Trustees. To be sure the board is aware of gifts and to protect the organization from the potential of inappropriate gifts to the school, the Board Chair, members of the Audit & Risk Committee, Head of School, Chief Financial Officer, and Director of Advancement are fully aware of the identity of all donors. Should any one of them determine that a donation might be inappropriate or pose a conflict with the organization, they are charged with raising the issue with the full board. The Academy publishes a comprehensive giving report on an annual basis that is available to the public. Form 990, Part VI, Section B, line 12c The conflict of interest statement is directed to the Trustees, officers, those who make purchasing decisions, all persons who are described as management personnel and to anyone who has proprietary information concerning the Academy. Each employee must sign a statement annually which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy and has agreed to comply with the policy. The conflict of interest statement requires that individuals refrain from voting or participating in any matter or issue in which they have any potential conflict of interest. This is to ensure the Academy operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status. Periodic review shall, at a minimum, include whether transactions between employees and the Academy are negotiated as the result of "arm's length bargaining and whether partnerships, joint ventures and any other business arrangements with the school are properly recorded. Transactions are further reviewed to ensure they reflect reasonable investment or payment for goods and services, they further charitable purposes and they do not result in inurement, impermissible private benefit or any excess benefit transaction. Accounting and other personnel are encouraged to report a situation involving a potential conflict of interest to an appropriate school official. Form 990, Part VI, Section B, line 15 The executive committee of the Board of Trustees takes responsibility for the evaluation of its direct report, the Head of School, and for the determination of compensation for this individual. The executive committee consists of the Board Chair, Vice Chair, Secretary, Assistant Secretary, Treasurer, and two at-large board members appointed by the Chair. All board members, including the members of the executive committee, submit a conflict of interest disclosure statement to the Chair of the board annually. These are utilized to determine that the committee members do not have any undisclosed conflicts of interest and they do not have any direct financial interest in the compensation provided to the Head of School. In addition, at the time the executive committee considers compensation questions, each committee member is asked again to confirm that they do not have any conflicts of interest. The executive committee has, in some years, retained a compensation consultant intimately familiar with compensation for the heads of independent schools both in the region and nationally. The consultant has no financial or other interest in the compensation decisions made. The consultant has prepared a study of up to thirty or forty schools that are or may be comparable to the Academy in terms of complexity, size of operating budget, grade range and student body size. The consultant also considers heads of school with experience levels comparable to the Academy's Head of School. The consultant's compensation information includes evidence of salary, bonuses, benefits and other non-cash consideration that other heads of school may receive. The executive committee considers the information assembled by the consultant, and in addition, information gathered from Form 990's of other independent schools, GuideStar reports, news sources and independent school associations, in setting compensation for the Head of School, together with any information obtained from any evaluations that may have been performed, ordinarily in the spring and early summer, in advance of the beginning of the Academy's fiscal year. The executive committee maintains minutes of its meetings, including those in which compensation matters are considered. The Chair of the board reports the compensation decisions to the full board. The most recent compensation consultant study was completed during the 2018 fiscal year. The compensation consultant provided a letter to the Academy's executive committee confirming their judgment that the Head of School's compensation was reasonable and appropriate. Pursuant to IRS Section 4958 guidelines, the Head of School does not serve as a trustee; he or she has had no role in the setting of their compensation in this or any previous year of their employment; all of the compensation at issue is in the form of cash payments to the recipient and none is deferred; the Head of School is eligible for other non-cash benefits provided to all other employees of the school; none of the members of the executive committee receive any compensation from the school; and the members of the committee have reviewed comparability data before reaching a decision on compensation levels. Form 990, Part VI, Section C, line 19 Albuquerque Academy keeps an electronic record (updated annually) of financial institutions, bondholders and vendors who have requested a copy of the Academy's audited financial statements as a condition of providing credit and services to the school. After the financial statement audit is completed and accepted by the Board of Trustees, electronic copies of the statements are distributed to all required entities. The Academy does not currently make its governing documents or conflict of interest policy statements available to the public. Form 990 - Part VIII - Statement of Revenue - Line 2d The Academy's audited financial statements net financial assistance awarded against gross tuition revenue. For the fiscal year ended 2020, the Academy awarded assistance to 281 students. The assistance we award is a reduction to the total cost of tuition. We do not provide cash or non-cash awards. Financial assistance is awarded based solely upon demonstrated financial need. A family's need is assessed annually through a comprehensive screening process. The annual process requires that the family complete an application and provide the Academy with a full set of tax returns including all supporting schedules. To determine the appropriate financial assistance, the Academy utilizes a standard methodology provided by School and Student Services ("SSS") which is used by Independent Schools nationwide. This methodology calculates a contribution for each individual family based upon the family's specific financial situation and discretionary income. Prior to making an award, each applicant's file and proposed award is carefully reviewed by a committee to ensure the decisions are based on consistent application of need based criteria. Assistance is awarded to students as a reduction in their tuition, lunch fees, and/or other academic fees. No cash is distributed to recipients. The Academy awarded zero non-cash assistance for the fiscal year ended June 30, 2020. Financial assistance is awarded annually consistent with the current academic school year. Applicants must reapply annually by submitting a new application and current tax documentation. In addition to a committee review of each award, the Financial Assistance Office of the Academy conducts a random audit of files annually as another measure to ensure that financial assistance is being awarded appropriately and the proper supporting documentation was submitted as part of the application process. On a monthly basis, the Accounting Office of the Academy compares the financial assistance subsidiary ledger postings to a list of awards provided by the Financial Assistance Office to ensure there are no discrepancies between the two amounts. Any discrepancies are promptly researched and resolved. Form 990 - Part IX - Statement of Functional Expenses - Line 9 As a benefit to its employees the Academy provides tuition remission to students of employees. Tuition remission is a reduction in tuition and the Academy awards no cash or non-cash grants as remission. For the fiscal year ending June 30, 2020, the Academy's audited financial statements present tuition remission as an expense instead of netting it against gross tuition revenue. Monthly the Academy accounting office reconciles tuition remission expense to supporting documentation. Any discrepancies are reviewed and corrected as needed. Form 990, Part XI, line 9: Impairment loss -113,851. Gain on self-funded insurance 1,367,824. Form 990 - Part XII - Financial Statements and Reporting - Line 2c The Academy has an Audit and Risk Committee that assumes responsibility for oversight of the annual financial statement audit and the resulting financial statements. The Audit and Risk Committee is also responsible for assessing and selecting the external audit firm of the Academy. The Academy did not change its oversight or selection process for the appointment of its external audit firm during the tax year currently being reported on. Albuquerque Academy Educational Foundation 6400 Wyoming Blvd NE Albuquerque NM 871093899 850381395 Support New Mexico ISAS schools NM 501(c)(3) Line 12a, I 1 Albuquerque Academy for Boys Trust #1 1300 Merrill Lynch Drive Pennington NJ 085341501 856008015 Provide distributions to Albuquerque Academy for educational expenditures NM 501(c)(3) Line 12d, III-O 0 Albuquerque Academy for Boys Trust #2 1300 Merrill Lynch Drive Pennington NJ 085341501 856014105 Provide distributions to Albuquerque Academy for educational expenditures NM 501(c)(3) PF 0 Albuquerque Academy Student Support Foundation 6400 Wyoming Blvd NE Albuquerque NM 871093899 205895188 Provide support to Albuquerque Academy NM 501(c)(3) Line 12a, I 1 High Desert Investment Corporation 6400 Wyoming Blvd NE Albuquerque NM 87109 850394108 Real estate development NM Albuquerque Academy C 1.00000 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule R - Part IV - High Desert Investment Corporation The following footnote disclosure was included in the Academy's consolidated financial statements for the year ended June 30, 2020: In 1991, The Academy's Board of Trustees formed High Desert Investment Corporation (High Desert), a for-profit entity for the initial purpose of acquiring and developing property owned by the Academy in the foothills of the Sandia Mountains in Albuquerque. High Desert ceased operations in 2012. The financial activities of the Academy and High Desert Investment Corporation, are reflected in the accompanying consolidated financial statements, and all significant interentity transactions are eliminated in consolidation.