2020-07-14T14:16:49-05:00 2019-07-31 PricewaterhouseCoopers LLP 2001 MARKET ST SUITE 1800 PHILADELPHIA PA 19103 990 2018-08-01 231353340 MILTON HERSHEY SCHOOL AND SCHOOL TRUST % WENDY STARNER HERSHEY TRUST MILT 7175201100 PO BOX 445 HERSHEY PA 17033 MATTHEW JACOLIK ASSISTANT TREASURER 7175201100 2020-07-13 true ERIC M MCNEIL P00460263 2673303000 2020-07-13 155.201.35.117 23522320201965000041 2020-07-14 P DE9241CCE480DF8489CDD08C9B4A5C1B073A88EF D9F86E75EFDAFE7C85A38040228A3F35A3BFA220 2018 2020-09-23 17:36:50Z PETER GURT PO BOX 830 HERSHEY PA 17033 2456312065 false X WWW.MHS-PA.ORG X SEE SCH O 1909 PA IN KEEPING WITH MILTON AND CATHERINE HERSHEY'S DEED OF TRUST, MILTON HERSHEY SCHOOL NURTURES AND EDUCATES CHILDREN IN SOCIAL AND FINANCIAL NEED. SEE SCHEDULE O. 12 0 2152 198 -12153638 42591 64868 531373 413688 1065620633 1437521222 3170555 3237605 1069365152 1441237383 6760163 9454071 0 0 136049516 140641422 0 0 0 141905747 155771296 284715426 305866789 784649726 1135370594 14034640162 17659493213 234372149 266191685 13800268013 17393301528 X SEE SCHEDULE O FOR FURTHER DETAILS. false false 230941754 9454071 413688 SEE SCHEDULE O FOR FURTHER DETAILS. 230941754 true true false false false false true false true true true false false false true true false true false true false false false false false false false true true false false false false false false false false false false false false true true true true false false true 222 0 true 2152 true true true false false false false false false false false false false false X 12 0 true false false false false true false true true false false true true true true true true true true false X WENDY STARNER HERSHEY TRUST 7175201100 PO BOX 445 HERSHEY PA 17033 X ROBERT CONNOR HEIST BOARD OF MANAGERS 24.0 1.0 X 0 142200 0 DAVID SALTZMAN Board of Managers 4.0 0.0 X 0 112200 0 M Diane Koken Board of Managers 5.0 7.0 X 0 100000 155000 James Brown Board of Managers 7.0 4.0 X 0 100000 155000 Jan L Bergen Board of Managers 8.0 0.0 X 0 116200 0 Melissa L Fullmore board of Managers 8.0 0.0 X 0 122200 0 James Katzman Board of Managers 8.0 3.0 X 0 113964 102624 Michela English Board of Managers 4.0 0.0 X 0 112345 0 Maria Kraus Board of Managers 6.0 1.0 X 0 112724 0 AMY MARSH BOARD OF MANAGERS AS OF 1/1/19 5.0 0.0 X 0 0 0 DANIEL KATZIR BOARD OF MANAGERS AS OF 1/1/19 4.0 0.0 X 0 0 0 COREL ROBBIN-COKER BOARD OF MANAGERS AS OF 1/1/19 5.0 0.0 X 0 0 0 HERSHEY TRUST COMPANY TRUSTEE 0.0 0.0 X 1000 0 0 ELLIOTT H ROBINSON VP ADMINISTRATION 48.0 0.0 X 275791 0 96998 PETER G GURT PRESIDENT 60.0 0.0 X 520488 0 110635 LISA RASHID VP - COMMUNICATIONS 60.0 0.0 X 226752 0 75111 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 60.0 0.0 X 241938 0 55576 STEVEN SPARKS ESQ Secretary 53.0 2.0 X 0 543337 66332 TANYA BAYNHAM VP GRAD PROG FOR SUCC 60.0 0.0 X 165144 0 44178 Jeffrey Johnson VP Human Resources 53.0 0.0 X 201815 0 71270 Gayla Molinelli Treasurer until 4/19 53.0 2.0 X 0 396644 65019 linda vettori assistant secretary 24.0 1.0 X 0 81952 12294 ANDREW CLINE VP LEGAL 60.0 0.0 X 293266 0 84785 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 47.0 0.0 X 209391 0 79401 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 57.0 0.0 X 211156 0 79726 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 55.0 0.0 X 161141 0 73648 WILLIAM H WEBER III HEAD OF SR DIVISION 53.0 0.0 X 164441 0 71897 TIMOTHY C FAKE SR DIRECTOR IT 54.0 0.0 X 178274 0 38189 ANDREW CLARK ASSOCIATE GENERAL COUNSEL 60.0 0.0 X 177197 0 67637 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 50.0 0.0 X 157500 0 51544 DAVID C MILLER JR SR DIR RISK MANAGEMENT 48.0 0.0 X 164134 0 80690 DENISE L ALSTON DDS DIR DENTAL SERVICES 55.0 0.0 X 152794 0 32301 ERIC HENRY ACTING TREASURER to 4/18 56.0 5.0 X 0 1230050 55699 3502222 3283816 1725554 91 true true false KINSLEY CONSTRUCTION INC PO BOX 2886 YORK PA 174052886 Construction 21116738 WOHLSEN CONSTRUCTION CO PO BOX 4612 LANCASTER PA PA 12704 CONSTRUCTION 17512153 WARFEL CONsTRUCTION COMPANY 1110 ENTERPRISE RD EAST PETERSBURG PA 17520 CONSTRUCTION 9943296 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 INVEST & SHARED SRVS 9008813 SODEXO INC AFFILIATES PO BOX 360170 PITTSBURGH PA 152516170 FOOD SERVICE/MGT 6024072 162 64868 64868 AG MILK, LIVESTOCK & CROP SALES 900099 313179 313179 UTILITY REBATES 900099 35698 35698 CONCESSION STAND SALES 900099 52474 52474 FOOD REBATES 900099 4561 4561 MEMORABILIA SALES TO PUBLIC 900099 1739 1739 6037 6037 413688 379211911 -12137608 391349519 0 0 5909145 2671540 3237605 0 3237605 -16030 3253635 2070284935 427518 1012121165 281977 1058163770 145541 1058309311 1058309311 0 0 0 0 0 0 0 0 0 0 1441237383 413688 -12153638 1452912465 X 0 9454071 9454071 0 0 3284252 2016478 1267774 0 87246775 81592759 5654016 15994597 14715029 1279568 26449558 24228360 2221198 7666240 7052941 613299 0 4750135 3527148 1222987 178705 164409 14296 0 0 44199808 44199808 6454089 6453028 1061 3928033 2471973 1456060 2400299 2195097 205202 2081413 2008351 73062 0 6176405 5627576 548829 2305027 2093078 211949 0 533158 439707 93451 0 0 42081459 37911388 4170071 5106060 1151147 3954913 CONTRACTED SERVICES 12434756 10076329 2358427 FOOD, CLOTHING & HOUSEHOLD 7046831 6773450 273381 EQUIP RENTAL & MAINTENANCE 4449188 4088859 360329 TRUST EXPENSES 4299003 4299003 7346927 6900576 446351 305866789 230941754 74925035 0 30317 70848 72252268 84245354 0 0 37041295 41221282 0 0 0 0 0 0 1882672 1875503 1020601 1454830 1333660967 600434509 686911100 733226458 2202918342 2424665883 11032583567 14372733055 0 0 0 0 0 0 14034640162 17659493213 234372149 266191685 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 234372149 266191685 X 1412654728 1481104069 0 0 12387613285 15912197459 13800268013 17393301528 14034640162 17659493213 X 1135370594 2471054611 -13391690 X X false true X true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X false 12387613285 3524584175 15912197460 12668675449 -281062164 12387613285 12556285107 112390342 12668675449 11072259160 1484025947 12556285107 10695613308 376645852 11072259160 1.00000 false true true 64811340 64811340 108920005 1058684981 535692419 631912567 101244641 64742090 36502551 733226458 SEE PART XIII 14372733055 F 14372733055 0 0 X 3914536644 2471054611 2244650 2473299261 1441237383 1441237383 318831588 -426889 -426889 319258477 -13391688 -13391688 305866789 SCHEDULE D, PART III, LINE 1A & 4 MAINTAINING COLLECTIONS OF ART, HISTORICAL TREASURES, OR SIMILAR ASSETS THE ORGANIZATION ELECTED, AS PERMITTED UNDER ASC 958-360-25-1 and 958-605-25-19 (formerly SFAS 116), NOT TO REPORT IN ITS REVENUE STATEMENT AND BALANCE SHEET WORKS OF ART, HISTORICAL TREASURES, OR OTHER SIMILAR ASSETS HELD FOR PUBLIC EXHIBITION, EDUCATION OR RESEARCH IN FURTHERANCE OF PUBLIC SERVICE. THE DEPARTMENT OF SCHOOL HISTORY AND THE MHS HERITAGE CENTER AT KINDERHAUS PROVIDE FOR THE CARE AND MANAGEMENT OF THE HISTORICAL ASSETS OF THE MILTON HERSHEY SCHOOL COMMUNITY. THE HISTORICAL ASSETS(COLLECTION) CONSIST OF ARCHIVAL RECORDS AND DOCUMENTS, THREE DIMENSIONAL OBJECTS, INTERPRETIVE EXHIBITS, AND HISTORICAL CAMPUS BUILDINGS WHICH HELP TO DOCUMENT THE LIVES AND VALUES OF MILTON AND CATHERINE HERSHEY AS FOUNDERS OF OUR SCHOOL, THE HISTORY AND TRADITIONS OF THE SCHOOL AS AN INSTITUTION, AND THE STORIES OF THE STUDENTS, STAFF, AND ALUMNI WHO MAKE UP THE SCHOOL COMMUNITY. EXCLUDED FROM THIS MANDATE ARE LEGAL BOARD RECORDS, STUDENT RECORDS, AND ALUMNI RECORDS. SCHEDULE D, PART V, LINE 4 TRUST FUNDS AS MANDATED BY MILTON HERSHEY'S DEED OF TRUST, THE TRUST FUNDS ARE USED TO OPERATE THE MILTON HERSHEY SCHOOL AND MANAGE THE SCHOOL TRUST IN PERPETUITY. THE SCHOOL HAS MADE A POSITIVE DIFFERENCE IN THE LIVES OF ITS STUDENTS FOR OVER 110 YEARS. IN ORDER TO CONTINUE TO CHANGE LIVES FOR THE NEXT 110 YEARS AND BEYOND, THE TRUST FUNDS AND OTHER ASSETS OF THE MILTON HERSHEY SCHOOL TRUST (THE "ASSETS") ARE INVESTED FOR THE LONG TERM. DOING SO HELPS TO ENSURE FUNDS ARE AVAILABLE TO MEET CURRENT AND FUTURE OBLIGATIONS OF MILTON HERSHEY SCHOOL. THE BOARD AND THE TRUSTEE, WITH ASSISTANCE FROM THIRD-PARTY INVESTMENT CONSULTANTS, CONTINUALLY REVIEW THE PERFORMANCE OF THE ASSETS AND INVESTMENT DECISIONS. STRICT INVESTMENT GUIDELINES GOVERN A DISCIPLINED PROCESS FOR ASSET ALLOCATION, MANAGER SELECTION AND REVIEW OF MANAGEMENT FEES. SCHEDULE D, PART X, LINE 2 FIN 48 FOOTNOTE TAX POSITIONS ARE RECOGNIZED OR DERECOGNIZED BASED ON A "MORE-LIKELY THAN-NOT" THRESHOLD FOR POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S ACCOUNTING POLICY FOR EVALUATING UNCERTAIN TAX POSITIONS IS THAT RECOGNIZED INCOME TAX POSITIONS ARE MEASURED AT THE LARGEST AMOUNT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST DOES NOT BELIEVE THERE ARE ANY UNRECOGNIZED TAX BENEFITS OR LIABILITIES THAT SHOULD BE RECORDED. SCHEDULE D, PART XI, LINE 2D RECONCILIATION OF REVENUE PER AUDITED FIN STMTS WITH REVENUE PER RETURN RENTAL INCOME (RECLASS) (13,202) PROGRAM SERVICE REVENUE (RECLASS) (413,687) RENTAL EXPENSES 2,671,539 ____________ 2,244,650 SCHEDULE D, PART XII, LINE 2D RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN RENTAL INCOME (RECLASS) (13,202) PROGRAM SERVICE REVENUE (RECLASS) (413,687) ____________ (426,889) SCHEDULE D, PART XII, LINE 4B RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN UNRECOGNIZED PENSION & POST RETIREMENT LOSS (13,391,688) SUPPLEMENTAL INFORMATION FORM 990, PARTS VIII AND IX: DETAIL OF REVENUE AND EXPENSES PART VIII, STATEMENT OF REVENUE MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 1F CONTRIBUTIONS 64,868 - 64,868 2 PROGRAM SERVICE REV - 413,688 413,688 3 INVESTMENT INCOME 379,211,911 - 379,211,911 6 NET RENTAL INCOME 3,224,403 13,202 3,237,605 7(I) GAIN ON SALE-SECURITIES 1,058,163,770 - 1,058,163,770 7(II) GAIN ON SALE-OTHER (18,879) 164,420 145,541 ______________ ________ _____________ 12 TOTAL REVENUE 1,440,646,073 591,309 1,441,237,383 PART IX, STATEMENT OF FUNCTIONAL EXPENSES MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 2 GRANTS TO INDIVIDUALS - 9,454,071 9,454,071 5 COMPENSATION OF OFFICERS 1,000 3,283,252 3,284,252 7 OTHER SALARIES & WAGES - 87,246,775 87,246,775 8 PENSION PLAN CONTRIBUTIONS - 15,994,597 15,994,597 9 OTHER EMPLOYEE BENEFITS - 26,449,558 26,449,558 10 PAYROLL TAXES - 7,666,240 7,666,240 11B LEGAL FEES - 4,750,135 4,750,135 11C ACCOUNTING FEES - 178,705 178,705 11F INVEST MGMT FEES 44,199,808 - 44,199,808 11G OTHER FEES FOR SERVICES - 6,454,089 6,454,089 12 ADVERTISING - 3,928,033 3,928,033 13 OFFICE EXPENSES - 2,400,299 2,400,299 14 INFORMATION TECHNOLOGY - 2,081,413 2,081,413 16 OCCUPANCY - 6,176,405 6,176,405 17 TRAVEL - 2,305,027 2,305,027 19 CONFERENCES - 533,158 533,158 22 DEPRECIATION 420,593 41,660,866 42,081,459 23 INSURANCE - 5,106,060 5,106,060 24A CONTRACTED SERV/CONSULTING - 12,434,756 12,434,756 24B FOOD/CLOTHING/HOUSEHOLD - 7,046,831 7,046,831 24D EQUIP RENTAL & MAINTENANCE - 4,449,188 4,449,188 24C TRUST EXPENSES (*) 4,229,003 - 4,229,003 24E ALL OTHER EXPENSES - 7,346,927 7,346,927 __________ ___________ ____________ 25 TOTAL FUNCTIONAL EXPENSES 48,920,404 256,946,385 305,866,789 (*) TRUST EXPENSES INCLUDE LEGAL, CONSULTING AND OTHER EXPENSES RELATED TO MANAGEMENT OF THE TRUST. SUPPLEMENTAL INFORMATION FORM 990, PART X, LINE 27: UNRESTRICTED NET ASSETS (INCOME FUND) MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 1 CASH 41,631 52,534 94,165 2 SAVINGS & TEMP INVEST 36,064,387 - 36,064,387 4 ACCOUNTS RECEIVABLE 26,288,822 379,990 26,668,812 8 INVENTORIES FOR SALE/USE - 1,875,502 1,875,502 9 PREPAID EXPENSES - 1,454,829 1,454,829 10A PROPERTY EQPMT, AT COST 1,123,339,436 101,244,641 1,224,584,077 10B LESS: ACCUMULATED DEP. (535,692,419) (64,742,090) (600,443,509) 11 INVEST: PUBLICLY TRADED 424,292,436 - 424,292,436 12 INVEST: OTHER 615,362,532 - 615,362,532 17 LIABILITIES (14,385,797) (234,472,365) (248,858,162) _____________ ____________ _____________ NET UNRESTRICTED ASSETS 1,675,311,028 (194,206,959) 1,481,104,069 OF THE $1,481,104,069 IN NET UNRESTRICTED ASSETS, $1,065,440,888 IS AVAILABLE IN MARKETABLE INVESTMENTS. THE REMAINDER OF THE NET UNRESTRICTED ASSETS IS IN NON-LIQUID REAL ESTATE, INCLUDING CAMPUS BUILDINGS, AND INVESTMENTS. FORM 990, PART X BALANCE SHEET DETAIL PART X, LINE 11 PUBLICLY TRADED SECURITIES U.S. GOVERNMENT OBLIGATIONS 596,133,934 FMV AGENCY BONDS 274,467,346 FMV CORPORATE BONDS 321,805,376 FMV BOND FUNDS 283,387,476 FMV COMMON STOCKS-OTHER 948,871,751 FMV ______________ TOTAL PART X, LINE 11 2,424,665,883 PART X, LINE 12/SCHEDULE D, PART VII CLOSELY HELD EQUITY INTERESTS THE HERSHEY COMPANY - COMMON SHARES 7,157,576 FMV HERSHEY ENTERTAINMENT & RESORTS 665,900,000 FMV HERSHEY TRUST COMPANY 44,525,565 FMV THE HERSHEY CO - CLASS B SHARES 9,197,266,701 FMV ____________ SUB-TOTAL CLOSELY-HELD INTERESTS 9,914,849,842 PART X, LINE 12 (CONTINUED) OTHER STOCK FUNDS - OTHER 2,479,019,521 OTHER BOND FUNDS 857,536,677 MARKETABLE ALTERNATIVES 17,036,171 ALTERNATIVE ASSETS-NON MARKETABLE 1,104,290,844 _______________ SUB-TOTAL OTHER 4,457,883,213 ______________ TOTAL PART X, LINE 12 14,372,733,055 true true true true true true true false false false false false false false false false false true SCHEDULE E, LINE 3 THE MILTON HERSHEY SCHOOL ANNUALLY PUBLISHES ITS NON-DISCRIMINATION POLICY IN NEWSPAPERS OF ITS GENERAL COMMUNITY. THE CURRENT ADVERTISEMENT WAS PUBLISHED IN THE PHILADELPHIA INQUIRER, THE HARRISBURG PATRIOT NEWS, THE NEW YORK TIMES AND THE PITTSBURGH POST-GAZETTE. THE ADVERTISEMENT READS AS FOLLOWS: QUALIFIED STUDENTS ARE ELIGIBLE FOR ADMISSION REGARDLESS OF RACE, COLOR, NATIONAL OR ETHNIC ORIGIN, ANCESTRY, SEX, RELIGIOUS CREED OR DISABILITY. MILTON HERSHEY SCHOOL DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL OR ETHNIC ORIGIN, ANCESTRY, SEX, RELIGIOUS CREED OR DISABILITY IN THE ADMINISTRATION OF ITS EDUCATIONAL POLICIES, ADMISSIONS POLICIES, SCHOLARSHIP AND LOAN PROGRAMS, AND ATHLETIC AND OTHER SCHOOL-ADMINISTERED PROGRAMS. Europe (Including Iceland and Greenland) Investments 52782978 Central America and the Caribbean Investments 519595182 East Asia and the Pacific Investments 3345168 North America Investments 34879357 Sub-Saharan Africa Investments 32263875 642866560 642866560 true false true true true false true Continuing Education Scholarships 608 9454071 SCHEDULE I, PART I, QUESTION 2 MONITORING THE USE OF GRANT FUNDS THE CONTINUING EDUCATION SCHOLARSHIP (CES) HAS BEEN ESTABLISHED TO PROVIDE POST-SECONDARY SCHOLARSHIP ASSISTANCE TO ELIGIBLE MILTON HERSHEY SCHOOL GRADUATES PURSUING FULL-TIME STUDY IN AN ACCREDITED UNDERGRADUATE PROGRAM WITH THE INTENTION TO EARN A DIPLOMA, CERTIFICATE, OR DEGREE. THE CES EASES - AND OFTEN ELIMINATES - THE BURDEN OF STUDENTS' POST-SECONDARY COSTS BY HELPING TO PAY FOR STANDARD FULL-TIME TUITION, FEES, ROOM AND BOARD, AND POSSIBLY HEALTH INSURANCE NOT COVERED BY AID FROM POSTSECONDARY SCHOOLS. THE CES COVERS COSTS FOR RECENT GRADUATES UP TO $94,250. THESE FUNDS ARE AVAILABLE TO ALUMNI WHO PURSUE THEIR POSTGRADUATE STUDIES WITHIN FIVE YEARS OF GRADUATION. CES STAFF AND RESOURCES ARE DEVOTED TO FOLLOWING UP WITH ALUMNI TO ENSURE THEY HAVE THE SUPPORT THEY NEED AS THEY NAVIGATE THE POSTGRADUATE YEARS. 85% OF GRADUATES WILL IMMEDIATELY CONTINUE THEIR STUDIES AFTER LEAVING MHS. THE MILTON HERSHEY SCHOOL, THROUGH CES OFFICE STAFF, UTILIZES A COMBINATION OF THE FOLLOWING DOCUMENTS TO VALIDATE SCHOLARSHIP ELIGIBILITY AND COLLEGE COST & FINANCIAL AID DATA: COLLEGE ACADEMIC TRANSCRIPTS/GRADES, A STANDARDIZED COST AND AID ASSESSMENT FORM THAT IS COMPLETED BY THE INSTITUTION'S FINANCIAL AID OFFICE (RELEASE FORM), COLLEGE BILLS, SIGNED COPIES OF LEASES/RENTAL AGREEMENTS, RECEIPTS, DEGREE COMPLETION EVALUATIONS, AND OTHER DOCUMENTATION AS NEEDED. SCHEDULE I, PART III GRANTS & ASSISTANCE TO INDIVIDUALS IN THE U.S. THE MILTON HERSHEY SCHOOL OFFERS A CONTINUING EDUCATION SCHOLARSHIP PROGRAM FOR STUDENTS GRADUATING AFTER THE SPRING OF 2004, WHERE SCHOLARSHIP CREDITS ARE EARNED GRADUALLY EACH YEAR OF HIGH SCHOOL. THE MAXIMUM AWARD FOR THE GRADUATING CLASS OF 2019 WILL BE $94,250. THE MAXIMUM AWARD MAY BE INCREASED EVERY YEAR TO MATCH THE AVERAGE U.S. COLLEGE INFLATION RATE. THE EARNING OF THE SCHOLARSHIP AWARD IS DEPENDENT ON THE STUDENTS' ANNUAL ACADEMIC PERFORMANCE AND CERTAIN OTHER CONDITIONS. UPON INCEPTION OF THIS PROGRAM, CURRENT HIGH SCHOOL STUDENTS WERE AWARDED THE SCHOLARSHIP CREDIT FOR GRADES PREVIOUSLY COMPLETED. STUDENTS WHO HAD GRADUATED IN OR PRIOR TO THE SPRING OF 2004 WERE NOT AFFECTED BY THE NEW POLICY. SIGNIFICANT ASSUMPTIONS IN DETERMINING THE LIABILITY FOR THIS PROGRAM INCLUDE PARTICIPATION AND DISCOUNT RATES. THE EXPENSE RECOGNIZED FOR THE CONTINUING EDUCATION PROGRAMS DESCRIBED ABOVE WAS $9,454,071 AND $6,760,163 DURING THE YEARS ENDED JULY 31, 2019 AND 2018 RESPECTIVELY, AND IS INCLUDED IN CONTINUING EDUCATION PROGRAMS ON THE STATEMENT OF ACTIVITIES OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST FINANCIAL STATEMENTS. THE AMOUNT REPORTED COVERS THE 608 STUDENTS CURRENTLY RECEIVING CONTINUING EDUCATION SCHOLARSHIPS AS WELL AS THE 963 STUDENTS EARNING CREDITS TOWARD THEIR FUTURE SCHOLARSHIPS. SCHEDULE I, PART III, COLUMN (C): THE AMOUNT REPORTED IN COLUMN C "AMOUNT OF CASH GRANT" CONSISTS OF $7,378,390 OF CASH GRANTS PAID DURING THE YEAR AND $2,075,681 WHICH REPRESENTS AN INCREASE IN THE TUITION ACCRUAL FOR GRANTS TO BE PAID IN FUTURE YEARS. THE TOTAL OF THESE AMOUNTS IS $9,454,071. X X X X true true X X X X X true false false false false false false false false ELLIOTT H ROBINSON VP ADMINISTRATION 264353 0 0 0 11438 0 58996 0 38002 0 372789 0 0 0 PETER G GURT PRESIDENT 386159 0 118434 0 15895 0 60025 0 50610 0 631123 0 0 0 LISA RASHID VP - COMMUNICATIONS 225612 0 0 0 1140 0 43759 0 31352 0 301863 0 0 0 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 208946 0 0 0 445 0 50373 0 29028 0 288792 0 0 0 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 210318 0 0 0 838 0 50535 0 29191 0 290882 0 0 0 TIMOTHY C FAKE SR DIRECTOR IT 177894 0 0 0 380 0 26954 0 11235 0 216463 0 0 0 ANDREW CLARK ASSOCIATE GENERAL COUNSEL 176897 0 0 0 300 0 38389 0 29248 0 244834 0 0 0 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 159282 0 0 0 1859 0 42942 0 30706 0 234789 0 0 0 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 157175 0 0 0 325 0 21086 0 30458 0 209044 0 0 0 ERIC HENRY ACTING TREASURER to 4/18 0 223502 0 525000 0 481548 0 34895 0 20804 0 1285749 0 0 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 240112 0 0 0 1826 0 23587 0 31989 0 297514 0 0 0 DAVID C MILLER JR SR DIR RISK MANAGEMENT 163197 0 0 0 937 0 58609 0 22081 0 244824 0 0 0 WILLIAM H WEBER III HEAD OF SR DIVISION 164273 0 0 0 168 0 40627 0 31270 0 236338 0 0 0 M Diane Koken Board of Managers 0 100000 0 0 0 0 0 155000 0 0 0 255000 0 0 STEVEN SPARKS ESQ Secretary 0 435538 0 106251 0 1548 0 43775 0 22557 0 609669 0 0 TANYA BAYNHAM VP GRAD PROG FOR SUCC 164541 0 0 0 603 0 21989 0 22189 0 209322 0 0 0 James Brown Board of Managers 0 100000 0 0 0 0 0 155000 0 0 0 255000 0 0 James Katzman Board of Managers 0 108942 0 0 0 5022 0 102624 0 0 0 216588 0 0 Jeffrey Johnson VP Human Resources 198088 0 0 0 3727 0 44679 0 26591 0 273085 0 0 0 Gayla Molinelli Treasurer until 4/19 0 337131 0 58000 0 1513 0 42198 0 22821 0 461663 0 0 ANDREW CLINE VP LEGAL 282612 0 0 0 10654 0 54525 0 30260 0 378051 0 0 0 DENISE L ALSTON DDS DIR DENTAL SERVICES 152644 0 0 0 150 0 17073 0 15228 0 185095 0 0 0 SCHEDULE J, PART I, LINE 1A TRAVEL FOR COMPANIONS SPOUSE/DEPENDENT TRAVEL: SPOUSES AND CHILDREN OF BOARD MEMBERS MAY BE INVITED TO ATTEND GRADUATION AND THE ANNUAL BOARD RETREAT AT THE DISCRETION OF THE SCHOOL OR TRUST COMPANY. IF A SPOUSE OR DEPENDENT ACCOMPANIES A BOARD MANAGER/DIRECTOR TO THE ANNUAL RETREAT, ALL CHARGES RELATED TO THE SPOUSE OR CHILD ARE THE RESPONSIBILITY OF THE MANAGER/DIRECTOR. IF A SPOUSE OR DEPENDENT ATTENDS GRADUATION WEEKEND EVENTS, THE COST OF MEALS, LODGING AND TRAVEL WILL BE PAID BY THE TRUST COMPANY AND REPORTED AS TAXABLE INCOME TO THE MANAGER/DIRECTOR. ORDINARILY, TRUST COMPANY STAFF WILL MAKE ALL TRAVEL AND LODGING ARRANGEMENTS. REIMBURSEMENT WILL ONLY BE MADE FOR THE COST OF COACH AIRFARE. ALL REQUESTS FOR EXPENSE REIMBURSEMENT MUST BE ACCOMPANIED BY ORIGINAL RECEIPTS AND MUST BE SUBMITTED WITHIN 60 DAYS OF THE DATE ON WHICH THE EXPENSES WERE INCURRED. ADEQUATE DESCRIPTIONS INCLUDING THE DATE, PURPOSE, AND INDIVIDUALS ENTERTAINED MUST ALSO BE INCLUDED. SCHEDULE J, PART I, LINE 1A HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE THE PRESIDENT OF MILTON HERSHEY SCHOOL IS PROVIDED WITH A RESIDENCE ON CAMPUS FOR BOTH PUBLIC AND PERSONAL USE. THE PRESIDENT'S EMPLOYMENT CONTRACT INCLUDES PROVISIONS WHICH REQUIRE HOSTING BOTH INTERNAL AND EXTERNAL EVENTS ON BEHALF OF THE SCHOOL AT THE PROVIDED HOME. THE VALUE OF THESE BENEFITS (FAIR MARKET VALUE OF RENTAL) PLUS OPERATING COSTS ARE NONTAXABLE BENEFITS. SCHEDULE J, PART I, LINE 1A HEALTH CLUB DUES ALL EMPLOYEES OF THE MILTON HERSHEY SCHOOL ARE ELIGIBLE FOR REIMBURSEMENT OF HEALTH CLUB DUES NOT TO EXCEED $240 PER ANNUM FOR A SINGLE MEMBERSHIP AND $360 FOR A FAMILY MEMBERSHIP. SCHEDULE J, PART I, LINE 4A SEVERANCE AND CHANGE OF CONTROL PAYMENTS ERIC HENRY RECEIVED SEVERANCE PAYMENTS OF $480,667 FROM THE HERSHEY TRUST COMPANY (EIN: 23-0692150), A FOR-PROFIT RELATED CORPORATION. MR. HENRY SERVED AS ACTING TREASURER OF THE MILTON HERSHEY SCHOOL UNTIL APRIL 2018. SCHEDULE J REPORTABLE COMPENSATION MR. AND MRS. HERSHEY ORGANIZED THE MILTON HERSHEY SCHOOL ("THE SCHOOL") IN THE FORM OF A TRUST ("SCHOOL TRUST") CREATED UNDER AN ORIGINAL 1909 DEED OF TRUST THAT, AS AMENDED, STILL GOVERNS THE OPERATION OF THE SCHOOL. THE DEED OF TRUST SETS FORTH THE RESPECTIVE POWERS AND AUTHORITIES OF THE TRUSTEE AND MANAGERS OF THE SCHOOL, NAMES THE HERSHEY TRUST COMPANY, A STATE-CHARTERED TRUST COMPANY, AS TRUSTEE FOR COMPENSATION OF NO MORE THAN $1,000 PER YEAR AND PROVIDES FOR THE TRUSTEE TO APPOINT THE INDIVIDUAL MANAGERS OF THE SCHOOL FROM ITS OWN BOARD OF DIRECTORS. THE MANAGERS SUBSEQUENTLY INCORPORATED. THAT CORPORATION, ACTING AS MANAGER UNDER THE DEED OF TRUST, TOGETHER WITH THE SCHOOL TRUST ARE THE COMPONENTS OF THE INTEGRATED TAX-EXEMPT ORGANIZATION, THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST (EIN: 23-1353340). MR. HERSHEY CREATED THE SAME STRUCTURE FOR HIS OTHER CHARITY, THE M.S. HERSHEY FOUNDATION (EIN: 23-6242734). AS A RESULT OF THE STRUCTURE CREATED BY MR. HERSHEY, HERSHEY TRUST COMPANY: (A) SERVES AS TRUSTEE FOR THE MILTON HERSHEY SCHOOL & SCHOOL TRUST AND (B) SERVES AS TRUSTEE FOR THE M.S. HERSHEY FOUNDATION TRUST. THE COMPENSATION OF BOARD MEMBERS SERVING ON THE BOARDS OF ANY OF THE RELATED FOR-PROFIT ENTITIES (HERSHEY TRUST COMPANY, HERSHEY ENTERTAINMENT & RESORTS COMPANY AND THE HERSHEY COMPANY) IS COMMENSURATE WITH THEIR RESPONSIBILITIES WITH RESPECT TO THE RELEVANT FOR-PROFIT ENTITY. THE FOLLOWING INFORMATION DETAILS THE COMPENSATION ARRANGEMENTS OF THE BOARD OF MANAGERS WHO ARE COMPENSATED BY RELATED FOR-PROFIT ENTITIES. (SCHEDULE J, PART II, LINE (II)) NONE OF THE COMPENSATION WAS PAID DIRECTLY BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST (EIN 23-1353340). (SCHEDULE J, PART II, LINE (I)) JAN L. BERGEN MS. BERGEN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-069215). JAMES BROWN ESQ. MR. BROWN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN FEBRUARY 2016. MR. BROWN JOINED THE HERSHEY COMPANY BOARD ON MAY 3, 2017. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT COMPANY, THE HERSHEY COMPANY (EIN 23-0691590). MICHELA ENGLISH MS. ENGLISH JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JANUARY 2018. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-069215). MELISSA L. FULLMORE MS. FULLMORE JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-069215). ROBERT C. HEIST, ESQ. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). MR. HEIST WAS ELECTED PRESIDENT OF HERSHEY TRUST COMPANY IN DECEMBER 2017; HOWEVER, HE IS NOT COMPENSATED FOR THIS POSITION. JAMES KATZMAN MR. KATZMAN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017 AND THE BOARD OF THE HERSHEY COMPANY IN MAY 2018. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM FOR-PROFIT COMPANIES, HERSHEY TRUST COMPANY (EIN 23-0692150) AND THE HERSHEY COMPANY (EIN 23-0691590). M. DIANE KOKEN MS. KOKEN JOINED THE HERSHEY COMPANY BOARD ON MAY 3, 2017. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, THE HERSHEY COMPANY (EIN 23-0691590). MARIA KRAUS MS. KRAUS JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JANUARY 2018. MS. KRAUS JOINED THE BOARD OF THE MS HERSHEY FOUNDATION IN APRIL 2018. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0691590). DAVID SALTZMAN COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). AMY MARSH MS. MARSH JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JANUARY 2019. NO COMPENSATION WAS PAID DURING CALENDAR YEAR 2018. DANIEL KATZIR MR. KATZIR JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JANUARY 2019. NO COMPENSATION WAS PAID DURING CALENDAR YEAR 2018. CORDEL ROBBIN-COKER MR. ROBBIN-COKER JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JANUARY 2019. NO COMPENSATION WAS PAID DURING CALENDAR YEAR 2018. THE FOLLOWING INFORMATION DETAILS THE COMPENSATION ARRANGEMENTS OF CERTAIN OFFICERS AND KEY EMPLOYEES OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THEY ARE COMPENSATED BY RELATED FOR-PROFIT ENTITIES. THEIR COMPENSATION IS ESTABLISHED BASED UPON DATA PROVIDED BY INDEPENDENT COMPENSATION CONSULTANTS. THIS PROCESS IS BASED ON POSITION COMPARABLES TAKING INTO ACCOUNT RESPONSIBILITIES AND DUTIES, AUTHORITY, AND OBJECTIVES. NONE OF THEIR COMPENSATION, EMPLOYEE BENEFIT CONTRIBUTIONS, OR NON-TAXABLE BENEFITS WAS PAID DIRECTLY BY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST DURING THE REPORTING PERIOD. ERIC HENRY UNTIL APRIL 2018, MR. HENRY SERVED AS ACTING TREASURER OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY (EIN: 23-0692150). HE ALSO SERVED AS THE CHIEF EXECUTIVE OFFICER AND CHIEF INVESTMENT OFFICER OF HERSHEY TRUST COMPANY. HE ALSO SERVED AS CHAIRMAN OF THE BOARD OF HERSHEY ENTERTAINMENT & RESORT CO (EIN: 23-0691815) AND RECEIVED NO COMPENSATION FOR THIS SERVICE. NONE OF HIS COMPENSATION, EMPLOYEE BENEFIT CONTRIBUTIONS, OR NON-TAXABLE BENEFITS WAS PAID BY MILTON HERSHEY SCHOOL & SCHOOL TRUST. GAYLA MOLINELLI MS. MOLINELLI WAS APPOINTED TREASURER OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN JUNE 2018 AND SERVED IN THIS POSITION UNTIL APRIL 2019. NONE OF HER COMPENSATION, EMPLOYEE BENEFIT CONTRIBUTIONS, OR NON-TAXABLE BENEFITS WAS PAID BY MILTON HERSHEY SCHOOL & SCHOOL TRUST. STEVEN SPARKS MR. SPARKS WAS APPOINTED SECRETARY OF MILTON HERSHEY SCHOOL AND SCHOOL TRUST (EIN: 23-0692150) IN JULY 2016. HE ALSO SERVES AS GENERAL COUNSEL, SECRETARY, AND INTERIM COMPLIANCE DIRECTOR OF HERSHEY TRUST COMPANY. A PORTION OF HIS 2018 COMPENSATION AND BENEFITS REPORTED BY HERSHEY TRUST COMPANY WAS REIMBURSED BY MILTON HERSHEY SCHOOL. LINDA VETTORI MS. VETTORI WAS APPOINTED ASSISTANT SECRETARY OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY (EIN: 23-0692150) IN APRIL 2013. SHE ALSO SERVES AS MANAGER, LEGAL AFFAIRS OF HERSHEY TRUST COMPANY. A PORTION OF HER 2018 COMPENSATION AND BENEFITS REPORTED BY HERSHEY TRUST COMPANY WAS REIMBURSED BY MILTON HERSHEY SCHOOL. HERSHEY TRUST COMPANY HERSHEY TRUST COMPANY, TRUSTEE, IS PAID $1,000 ANNUALLY FOR ITS SERVICES AS STIPULATED IN THE DEED OF TRUST. THE TRUSTEE'S ACTUAL TIME SPENT PER WEEK ON MILTON HERSHEY SCHOOL AND SCHOOL TRUST MATTERS WOULD BE AN ACCUMULATION OF THE OFFICER AND STAFF TIME. EACH OFFICER'S INDIVIDUAL TIME IS DETAILED ON PART VII AND SCHEDULE J. SCHEDUL FORM 990, PART I, LINE 1 & FORM 990, PART III, LINE 1 MILTON HERSHEY SCHOOL & SCHOOL TRUST MISSION SINCE IT WAS FOUNDED IN 1909 BY FAMOUS CHOCOLATE MAKER MILTON S. HERSHEY AND HIS WIFE, CATHERINE, MILTON HERSHEY SCHOOL HAS BEEN PROVIDING LIFE-CHANGING OPPORTUNITY THROUGH AN EDUCATIONAL MODEL CENTERED ON GIVING STUDENTS THE TOOLS AND SUPPORT TO LEAD HAPPY, HEALTHY, AND FULFILLING LIVES. UNABLE TO HAVE CHILDREN OF THEIR OWN, THE HERSHEYS DEVELOPED A VISION FOR HOW THEY WOULD HELP CHILDREN AND MADE IT A REALITY. THEY USED THEIR OWN WEALTH TO CREATE NOT JUST A SCHOOL, BUT A HOME. FOR MORE THAN 110 YEARS, THE SCHOOL HAS AND CONTINUES TO STAY TRUE TO THE HERSHEYS' INITIAL VISION AND MISSION-TO HELP YOUNG PEOPLE BREAK THE CYCLE OF POVERTY BY PROVIDING A NURTURING HOME AND EDUCATION TO CHILDREN IN NEED. TO THIS DAY, THE SCHOOL CONTINUES TO BE GUIDED BY THE DEED OF TRUST THAT THE HERSHEYS SIGNED. IN THE 2018-2019 SCHOOL YEAR, APPROXIMATELY 2,100 STUDENTS FROM LOW-INCOME FAMILIES BENEFITED FROM MILTON HERSHEY SCHOOL'S COST-FREE, PRIVATE, COEDUCATIONAL HOME AND PRE-K THROUGH 12TH-GRADE EDUCATION. THE SCHOOL AIMS TO PROVIDE EACH STUDENT WITH HIGH QUALITY LEARNING EXPERIENCES AND DEVELOPMENT OPPORTUNITIES IN THE CLASSROOM AND BEYOND. THE SCHOOL'S WHOLE-CHILD APPROACH TO EDUCATION NURTURES AND EDUCATES STUDENTS SO THAT THEY CAN LEAD FULFILLING AND PRODUCTIVE LIVES. AS A RESIDENTIAL SCHOOL, STUDENTS LIVE AT MILTON HERSHEY SCHOOL AS PART OF THE HOME LIFE PROGRAM. EACH STUDENT HAS A SAFE AND SUPPORTIVE ENVIRONMENT TO CALL HOME UNDER THE WATCHFUL CARE, SUPERVISION, AND SUPPORT OF A MARRIED HOUSEPARENT COUPLE. THESE EXPERIENCED AND TRAINED ADULTS CARE FOR 8-12 STUDENTS OF SIMILAR AGES AND THE SAME GENDER IN ONE OF 186 STUDENT HOMES ACROSS CAMPUS. WHEN STUDENTS REACH THEIR SENIOR YEAR, THEY TAKE PART IN THE TRANSITIONAL LIVING PROGRAM WHICH PREPARES THEM FOR LIFE AFTER GRADUATION. THE SCHOOL CARES FOR ITS STUDENTS 24 HOURS A DAY, 365 DAYS A YEAR, INCLUDING HOLIDAYS AND THE SUMMER MONTHS. WHILE MANY SCHOOLS CLOSE DOWN FOR THE SUMMER, STUDENTS AT MILTON HERSHEY SCHOOL CONTINUE TO LEARN THROUGH THE SCHOOL'S OPTIONAL YEAR-ROUND EXPERIENCES (YRE) PROGRAM. STUDENTS WHO CHOOSE TO STAY ON CAMPUS DURING SUMMER BREAK ARE PROVIDED WITH A SAFE AND STABLE HOME ON CAMPUS WHERE THEY CAN EXPLORE THEIR INTERESTS AND BUILD ON THEIR CLASSROOM LEARNING THROUGH A WIDE-RANGE OF LEARNING EXPERIENCES AND ADVENTURES, BOTH ON AND OFF CAMPUS. EXAMPLE ACTIVITIES INCLUDE ART, MUSIC, AND DANCE PROGRAMMING, INTERNSHIPS, FIELD TRIPS, AND MORE. SIXTY-SIX PERCENT OF ALL STUDENTS PARTICIPATED IN YRE PROGRAMMING IN THE 2018-2019 SCHOOL YEAR. BECAUSE MILTON HERSHEY SCHOOL SERVES LOW-INCOME STUDENTS, MOST OBSTACLES THE STUDENTS FACE STEM FROM POVERTY-RELATED ISSUES. OF NEW STUDENTS ENROLLED DURING THE 2018-2019 SCHOOL YEAR, FIFTY PERCENT EXPERIENCED FAMILY DRUG OR ALCOHOL MISUSE, FORTY-NINE PERCENT HAD MENTAL HEALTH ISSUES IN THEIR FAMILY, TWENTY-TWO PERCENT ARE RAISED BY SOMEONE OTHER THAN THEIR BIOLOGICAL PARENTS AND SIXTY-THREE PERCENT HAVE A FAMILY MEMBER INCARCERATED. IN RESPONSE TO THESE CHALLENGES, HEALTHY LIVING AND PERSONAL WELLNESS ARE AN IMPORTANT PART OF THE CURRICULUM AT ALL GRADE LEVELS. AS PART OF THE SCHOOL'S WHOLE-CHILD APPROACH TO EDUCATION, STUDENTS RECEIVE PERSONALIZED MEDICAL AND BEHAVIORAL CARE, AS WELL AS DENTAL AND VISION SERVICES, AT NO COST TO THEIR FAMILIES. THESE RESOURCES SUPPORT THE HEALTH AND WELL-BEING OF STUDENTS SO THEY CAN REMAIN FOCUSED IN THE CLASSROOM AND ON THEIR EMOTIONAL, SOCIAL, AND SPIRITUAL DEVELOPMENT. MILTON HERSHEY SCHOOL STUDENTS RECEIVE PERSONALIZED ATTENTION AND SUPPORT IN SMALL CLASS SIZES AVERAGING 15 STUDENTS. THEY ALSO HAVE ACCESS TO CAREER AND TECHNICAL EDUCATION AND EXTRACURRICULAR OPPORTUNITIES, WHICH WOULD LIKELY BE UNOBTAINABLE IN THEIR HOME COMMUNITIES. THE SCHOOL PROVIDES CHILDREN WITH VALUABLE, NURTURING RELATIONSHIPS AND THE CRITICAL SOCIAL, EMOTIONAL, AND LEADERSHIP TOOLS THEY NEED TO OVERCOME THEIR CIRCUMSTANCES OF POVERTY AND EXCEL IN TODAY'S COMPETITIVE AND CHALLENGING WORLD. STUDENT TEST SCORES ARE JUST ONE INDICATOR OF STUDENT SUCCESS AT MILTON HERSHEY SCHOOL. STUDENTS CONSISTENTLY SCORE BETTER THAN STATE AVERAGES ON STANDARDIZED TESTING - NOT JUST AMONG OTHER STUDENTS WHO ARE ECONOMICALLY DISADVANTAGED BUT AMONG ALL STUDENTS IN PENNSYLVANIA. MILTON HERSHEY SCHOOL ADOPTS THE STATE TARGETS AS A MINIMUM GOAL AND HAS OUTPERFORMED STATE AVERAGES AND SCORES OF SOME PREMIER SCHOOL DISTRICTS. EIGHTY-FIVE PERCENT OF 2019 GRADUATES PLANNED TO CONTINUE THEIR EDUCATION AT A TWO- OR FOUR-YEAR COLLEGE OR TRADE SCHOOL. FOR STUDENTS WHO WILL GO ON TO HIGHER EDUCATION, MILTON HERSHEY SCHOOL OFFERS SCHOLARSHIP FUNDING TO COVER MOST OF THE TUITION, FEES, BOOKS, AND ROOM AND BOARD. THE HOME LIFE PROGRAM SUPPORTS STUDENTS IN UNIQUE WAYS DURING THEIR SENIOR YEAR AS THEY START THINKING ABOUT LIFE AFTER HIGH SCHOOL GRADUATION. THE SCHOOL'S TRANSITIONAL LIVING PROGRAM PLACES SENIORS IN A SEMI-INDEPENDENT ENVIRONMENT UNDER ADULT, LIVE-IN SUPERVISION. THIS COLLEGE/DORMITORY LIFESTYLE AND THE ACCOMPANYING RESPONSIBILITIES ARE LEARNING EXPERIENCES THAT HELP BUILD STUDENTS' CONFIDENCE IN LIVING INDEPENDENTLY AND FACING OTHER CHALLENGES THEY MAY ENCOUNTER AFTER HIGH SCHOOL. STUDENTS LEARN SKILLS FROM PERSONAL FINANCE AND SAFETY TO HEALTHY SLEEPING AND EATING HABITS IN THE TRANSITIONAL LIVING CURRICULUM. ALL SENIORS ALSO TAKE A CAPSTONE CLASS WHERE THEY MAKE FUNDAMENTAL DECISIONS AND MANAGE NEW RESPONSIBILITIES TO PREPARE FOR LIFE AFTER HIGH SCHOOL GRADUATION. THE CAPSTONE CLASS COVERS A WIDE RANGE OF ESSENTIAL LIFE SKILLS, INCLUDING RESUME WRITING, TIME MANAGEMENT, AND NAVIGATING HEALTHCARE AND HEALTH INSURANCE. THIS TYPE OF CLASS IS ESPECIALLY IMPORTANT FOR STUDENTS WHO COME FROM UNDERPRIVILEGED BACKGROUNDS. IN ADDITION, WHETHER THEY ARE ENTERING COLLEGE, THE WORKFORCE, OR THE MILITARY, MILTON HERSHEY SCHOOL PROVIDES COMPREHENSIVE AND INDIVIDUALIZED SUPPORT TO STUDENTS AND GRADUATES THROUGH THE GRADUATE PROGRAMS FOR SUCCESS (GPS) DIVISION. DEDICATED CAREER COUNSELORS AND TRANSITION SPECIALISTS SUPPORT STUDENTS AND ALUMNI OF ALL AGES. CAREER COUNSELORS PROVIDE HIGH SCHOOL STUDENTS WITH MENTORSHIPS AND GUIDANCE ABOUT JOB INTERVIEWS, COLLEGE APPLICATIONS, AND TRANSPORTATION TO ORIENTATIONS. TRANSITION SPECIALISTS PROVIDE TARGETED SUPPORT TO YOUNG ALUMNI. FORM OF ORGANIZATION MILTON HERSHEY SCHOOL AND SCHOOL TRUST IS AN INTEGRATED TAX-EXEMPT ORGANIZATION COMPOSED OF THE NOT-FOR-PROFIT CORPORATION, MILTON HERSHEY SCHOOL, ACTING AS MANAGER UNDER THE DEED OF TRUST, AND THE TRUST ITSELF. THIS INFORMATIONAL RETURN IS REQUIRED TO INCLUDE THE EXPENSES OF THE ORGANIZATION AS A WHOLE, WITH DETAIL AS REQUIRED BY THE FORM INSTRUCTIONS. AS A RESULT, THIS RETURN INCLUDES ALL EXPENSES OF SERVING THE STUDENTS ENROLLED IN THE SCHOOL AND SCHOLARSHIP COSTS FOR ALUMNI PURSUING CONTINUING EDUCATION, AS WELL AS THE COSTS ASSOCIATED WITH ADMINISTERING THE INVESTMENTS HELD IN THE TRUST. FORM 990, PART I, LINE 5 THIS FIGURE INCLUDES W-2 FORMS FILED WITHIN THE TAX YEAR: ALL ANCILLARY ROLES, PART-TIME INTERNSHIPS AND WORK EXPERIENCE FOR STUDENTS ON CAMPUS, POSITIONS WHICH HAVE BEEN VACATED AND FILLED BY ANOTHER INDIVIDUAL WITHIN THE YEAR, AND ONE-TIME EVENT WORKERS, FOR EXAMPLE. MILTON HERSHEY SCHOOL EMPLOYS APPROXIMATELY 1,300 FULL-TIME STAFF. FORM 990, PART III PROGRAM SERVICE ACCOMPLISHMENTS MILTON HERSHEY SCHOOL SEEKS TO NURTURE AND EDUCATE THE "WHOLE CHILD," WHICH MEANS THE SCHOOL AND SCHOOL TRUST PROVIDE FOR EACH CHILD IN A COMPREHENSIVE MANNER - COVERING THE EXPENSES OF, BUT NOT LIMITED TO THE FOLLOWING: - THE EDUCATION OF STUDENTS IN STATE-OF-THE-ART CLASSROOMS WITH SMALL CLASS SIZES AVERAGING 15 STUDENTS PER CLASSROOM - THE PHYSICAL, DENTAL, AND PSYCHOLOGICAL CARE OF ALL STUDENTS - CLOTHING, FOOD, AND ROOM AND BOARD - CAREER AND TECHNICAL TRAINING, COLLEGE COURSES BEFORE GRADUATION, VISUAL AND PERFORMING ARTS, MUSICAL INSTRUCTION, ATHLETIC PROGRAMS AND CAMPS, AND ENVIRONMENTAL AND AGRICULTURAL EDUCATION OFTEN NEW STUDENTS WHO ENROLL AT THE SCHOOL HAVE FALLEN AT LEAST ONE OR TWO GRADE LEVELS BEHIND BECAUSE OF FACTORS RELATED TO POVERTY, SUCH AS HOMELESSNESS, FAMILY DRUG AND ALCOHOL ADDICTION, MENTAL ILLNESS, OR NEIGHBORHOOD VIOLENCE. OF NEW STUDENTS ENROLLED IN THE 2018-2019 SCHOOL YEAR, THIRTY-FOUR PERCENT ATTENDED AT LEAST THREE DIFFERENT SCHOOLS BEFORE ARRIVING AT MILTON HERSHEY SCHOOL. AT MILTON HERSHEY SCHOOL, STUDENTS ARE GIVEN PSYCHOLOGICAL AND EMOTIONAL SUPPORT WHEN NEEDED: CLOSE TO EIGHTY-FIVE PERCENT OF STUDENTS RECEIVE ANYWHERE FROM ONE TO NINE SPECIALTY SERVICES AND FIFTEEN PERCENT RECEIVE TEN OR MORE SERVICES. DESPITE THESE CHALLENGES, MILTON HERSHEY SCHOOL STUDENTS ARE RESILIENT AND HAVE HIGH POTENTIAL FOR SUCCESS IN THE SCHOOL'S UNIQUE NURTURING ENVIRONMENT. IN ADDITION TO HOUSING, FOOD, AND CLOTHING, EACH STUDENT RECEIVES REGULAR MEDICAL, VISION AND DENTAL CHECKUPS FROM THE SCHOOL, AS WELL AS ANY NECESSARY HEALTH SERVICE OR MEDICATION. DURING SCHOOL YEAR 2018-19, THERE WERE 107,511 HEALTH SERVICE VISITS BY STUDENTS TO THE SCHOOL'S MEDICAL PROFESSIONALS DURING THE REPORTING YEAR, IN ADDITION TO 51,116 DENTAL PROCEDURES PERFORMED ON STUDENTS. A STRONG FOCUS ON CAREER AND TECHNICAL EDUCATION, JOB SHADOWING, AND HANDS-ON LEARNING THROUGH INTERNSHIPS, CO-OPS, AND APPRENTICESHIPS HELPS TO PREPARE STUDENTS FOR LIFE BEYOND MILTON HERSHEY SCHOOL. STUDENTS IN ALL GRADE LEVELS, INCLUDING ELEMENTARY STUDENTS ARE EXPOSED TO AGE AND GRADE APPROPRIATE CAREER AND TECHNICAL EDUCATION. YOUNG LEARNERS START WITH HANDS-ON ACTIVITIES AND GUEST SPEAKERS WHILE HIGH SCHOOL STUDENTS COMPLETE INTERNSHIPS AND ACCREDITED INDUSTRY CERTIFICATIONS. FOR THE PAST FIVE YEARS, EVERY GRADUATING SENIOR HAS EARNED AT LEAST TWO INDUSTRY-RECOGNIZED NATIONAL CERTIFICATIONS BY PASSING AN INDUSTRY-APPROVED TEST. DURING THE 2018-2019 SCHOOL YEAR, NINETY-SIX PERCENT OF GRADUATING SENIORS EARNED AT LEAST THREE INDUSTRY CERTIFICATIONS. THERE ARE CURRENTLY TWELVE CAREER PATHWAYS THAT STUDENTS ARE ABLE TO PURSUE, INCLUDING BUSINESS/FINANCIAL MANAGEMENT & ACCOUNTING; LAW, PUBLIC SAFETY, & SECURITY; COMPUTER SCIENCE & INNOVATION; AND AGRICULTURAL & NATURAL RESOURCES. DURING THE 2018-19 SCHOOL YEAR, MILTON HERSHEY SCHOOL LAUNCHED THE EDUCATION & HUMAN SERVICES PATHWAY. THROUGH THIS PATHWAY, STUDENTS CAN EXPLORE CAREERS IN EDUCATION AND SOCIAL WORK THROUGH CLASSES, INTERNSHIPS, AND JOB SHADOW EXPERIENCES BEFORE GRADUATING FROM HIGH SCHOOL. ------------------- THIS TUITION-FREE, COMPREHENSIVE PROGRAM, INCLUDING PHYSICAL CARE AS WELL AS EDUCATIONAL PROGRAMMING IN ACADEMIC, HOME LIFE AND COMMUNITY/CAREER SETTINGS, HAS AN ANNUAL COST OF: TOTAL PROGRAM EXPENSES: 230,941,754 LESS: LINE 22 DEPRECIATION (37,911,388) LINE 2 GRANTS (9,454,071) -------------- TOTAL EXPENSES 183,576,295 TOTAL NUMBER OF STUDENTS: 2,119 GAAP Cost per Student - Total Expenses (Part IX Line 25) 305,866,789 (TOTAL EXPENSES/2,119) = $144,345 Total Annual Cost per Student- School and Trust Total School Expenses (Part XIII Line 25) less Depreciation (Part XIII line 22) and CES Grants (Part XIII line 2) 205,831,448 (TOTAL EXPENSES)/2,119 (TOTAL NUMBER OF STUDENTS) = $97,136 MHS COST PER STUDENT - SCHOOL ONLY Total Program expenses less depreciation (Part IX line 22) and CES Grants (Part IX line 2) $183,576,295 (TOTAL EXPENSES)/2,119 (TOTAL NUMBER OF STUDENTS) = $86,663 MHS DIRECT COST PER STUDENT - SCHOOL ONLY A PREMIER BOARDING SCHOOL LIKE MILTON HERSHEY SCHOOL, OFFERING SIMILAR ACADEMIC PROGRAMMING AND SMALL CLASS SIZES, CHARGES APPROXIMATELY $60,000 PER YEAR, WITHOUT PROVIDING PERSONAL EFFECTS LIKE CLOTHING, TECHNOLOGY, TRANSPORTATION, OR CAREER TRAINING AND INTERNSHIPS. ADDITIONALLY, MILTON HERSHEY SCHOOL ASSUMES THE COST FOR MEDICAL PSYCHOLOGICAL, DENTAL, ORTHODONTIC, SOCIAL WORK, AND PRESCRIPTION CARE FOR EACH STUDENT. COSTS AT MOST PRIVATE COLLEGES ALSO EXCEED THIS FIGURE. FORM 990, PART VI, SECTION A, LINE 2 FAMILY/BUSINESS RELATIONSHIP SEVERAL OF THE BOARD OF MANAGERS MEMBERS AND OFFICERS OF THE FILING ORGANIZATION ALSO SERVE AS DIRECTORS AND OFFICERS OF BUSINESS ENTITIES THAT ARE RELATED TO THIS FILING ORGANIZATION. OTHER THAN THEIR OVERLAPPING SERVICE ON RELATED COMPANY BOARDS, THEY HAVE NO FAMILY OR BUSINESS RELATIONSHIPS WITH EACH OTHER. PLEASE SEE FORM 990, SCHEDULES J AND R FOR FURTHER INFORMATION. FORM 990, PART VI, SECTION A, LINE 7A ELECTION OF MEMBERS OF GOVERNING BODY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAVE A UNIQUE, SELF-PERPETUATING, INTERLOCKING AND INTEGRATED GOVERNANCE STRUCTURE. MR. AND MRS. HERSHEY ORGANIZED THE SCHOOL IN THE FORM OF A TRUST (THE "SCHOOL TRUST") CREATED UNDER AN ORIGINAL 1909 DEED OF TRUST THAT, AS AMENDED, STILL GOVERNS THE OPERATION OF THE SCHOOL. THE DEED OF TRUST SETS FORTH THE RESPECTIVE POWERS AND AUTHORITIES OF THE TRUSTEE AND INDIVIDUAL MANAGERS OF THE SCHOOL AND NAMES THE HERSHEY TRUST COMPANY ("HTC"), A STATE CHARTERED TRUST COMPANY, AS TRUSTEE FOR COMPENSATION OF NO MORE THAN $1,000 PER YEAR. UNDER THE DEED OF TRUST, THE TRUSTEE IS DIRECTED TO HOLD TITLE TO ALL SCHOOL PROPERTY AND ALL INVESTMENTS AND ASSETS THAT SUPPORT THE SCHOOL. THE INDIVIDUAL MANAGERS, IN TURN, ARE NOT PERMITTED TO HOLD SCHOOL ASSETS, BUT ARE OTHERWISE GENERALLY RESPONSIBLE FOR MANAGING THE SCHOOL, INCLUDING WITH RESPECT TO ADMISSIONS, THE PROGRAM OF EDUCATING AND FULL-TIME CARING FOR THE CHILDREN, AND EMPLOYMENT DECISIONS. AS REQUIRED UNDER THE DEED OF TRUST, THE MEMBERS OF THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST ARE APPOINTED BY THE TRUSTEE FROM AMONG THE TRUSTEE'S OWN BOARD OF DIRECTORS. SINCE MR. HERSHEY'S DEATH IN 1945, ALL OF THE STOCK OF HTC HAS BEEN OWNED BY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S 100 PERCENT OWNERSHIP OF THE STOCK OF HTC HAS ENSURED A SELF-PERPETUATING, INTERLOCKING GOVERNANCE STRUCTURE FOR THE SCHOOL BECAUSE THE HTC STOCK CARRIES THE RIGHT TO ELECT THE DIRECTORS OF HTC AND IN TURN TO APPOINT THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST FROM AMONG HTC'S OWN BOARD OF DIRECTORS. THE SAME TWELVE INDIVIDUALS (AS OF 7/31/19) SERVE ON THE BOARD OF DIRECTORS OF HTC AND THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 REVIEW PROCESS THE FORM 990 IS REVIEWED BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST MANAGEMENT AND BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S INDEPENDENT TAX ADVISOR, WHO SIGNS THE RETURN AS THE "PAID PREPARER." THE AUDIT COMMITTEE OF THE BOARD OF MANAGERS REVIEWS AND DISCUSSES THE FORM 990 AT ONE OF ITS SCHEDULED MEETINGS PRIOR TO FILING THE RETURN WITH THE IRS. ADDITIONALLY, THE FORM 990 IS PROVIDED TO THE FULL BOARD OF MANAGERS, NOTING KEY DISCLOSURES, PRIOR TO THE FILING OF THE FORM 990 WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST THE BOARD OF MANAGERS OF MILTON HERSHEY SCHOOL OPERATES UNDER A CONFLICT OF INTEREST POLICY WHICH REQUIRES DIRECTORS TO DISCLOSE "ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST" WITH MILTON HERSHEY SCHOOL AND SCHOOL TRUST OR HERSHEY TRUST COMPANY. THE CONFLICTS POLICY CANNOT BE MODIFIED OR AMENDED WITHOUT THE PRIOR WRITTEN APPROVAL OF THE PENNSYLVANIA OFFICE OF ATTORNEY GENERAL ("PA OAG"). THE MILTON HERSHEY SCHOOL'S CONFLICT OF INTEREST POLICY IS APPLICABLE TO ALL SCHOOL EMPLOYEES AND REQUIRES THE SCHOOL'S OFFICERS, MANAGERS AND SUPERVISORS TO RESPOND ANNUALLY TO A CONFLICT DISCLOSURE SURVEY. ALL DISCLOSED CONFLICTS ARE REVIEWED BY THE SCHOOL'S CONFLICT OF INTEREST COMMITTEE AND ANY CORRECTIVE ACTION REQUIRED AS A RESULT OF THE DISCLOSED CONFLICT IS ADDRESSED WITH THE EMPLOYEE WHO MADE THE DISCLOSURE AND THEIR SUPERVISOR. THE CONFLICT OF INTEREST POLICY COVERING OFFICERS AND OTHER KEY EMPLOYEES OF HERSHEY TRUST COMPANY, TRUSTEE FOR MILTON HERSHEY SCHOOL AND SCHOOL TRUST, IS DOCUMENTED IN HERSHEY TRUST COMPANY'S ETHICAL STANDARDS, CONFLICT OF INTEREST, AND CODE OF CONDUCT SECTIONS OF ITS POLICY MANUALS. EACH MANAGER, DIRECTOR, OFFICER AND KEY EMPLOYEE IS REQUIRED TO AVOID ALL ACTIVITY THAT COULD CREATE A CONFLICT OF INTEREST OR EVEN GIVE AN APPEARANCE OF A CONFLICT OF INTEREST. ANY CONFLICTS OF INTEREST ARE TO BE REPORTED AS SOON AS PRACTICAL AFTER THEY BECOME AWARE OF SUCH A CONFLICT. ANNUALLY, EACH MANAGER, DIRECTOR, OFFICER AND KEY EMPLOYEE IS REQUIRED TO COMPLETE AN ANNUAL STATEMENT OF DISCLOSURE. THE FORMS IDENTIFY VENDORS, INVESTMENTS, OTHER BOARD MEMBERSHIPS, AND FAMILY MEMBERS THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE STATEMENTS ARE REVIEWED BY THE GENERAL COUNSEL OF HERSHEY TRUST COMPANY ALONG WITH THE CHAIR OF THE NOMINATING & GOVERNANCE COMMITTEE IN ORDER FOR THEM TO BE AWARE OF ACTIVITIES THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE RESULTS OF THIS REVIEW ARE THEN DOCUMENTED AND SHARED WITH THE NOMINATING & GOVERNANCE COMMITTEE AND THEN THE FULL BOARD FORM 990, PART VI, SECTION B, LINES 15A AND 15B COMPENSATION PROCESS AN INDEPENDENT COMPENSATION CONSULTANT EVALUATES AND COMPARES THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF MILTON HERSHEY SCHOOL TO SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO DETERMINE THAT IT IS FAIR AND REASONABLE. THIS PROCESS OCCURS AT REGULAR INTERVALS THEREAFTER, BUT NOT LESS FREQUENTLY THAN EVERY FIVE YEARS. THE COMPENSATION INFORMATION IS REVIEWED AND APPROVED BY THE BOARD OF MANAGERS, THE GOVERNING BODY OF THE MILTON HERSHEY SCHOOL, WHO DOES NOT HAVE ANY CONFLICT OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENTS OF THE OFFICERS AND KEY EMPLOYEES. THE REVIEW OF THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES, INCLUDING DETAIL ON THE DELIBERATIONS AND DECISIONS, IS CONTEMPORANEOUSLY DOCUMENTED WITHIN THE MINUTES FROM THE BOARD MEETING. A FILE WITH POSITION DESCRIPTIONS, RESUMES OF OFFICERS AND KEY EMPLOYEES, THE REPORT OF THE INDEPENDENT COMPENSATION CONSULTANT AND A COPY OF THE APPLICABLE BOARD MINUTES IS MAINTAINED BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF HERSHEY TRUST COMPANY, TRUSTEE OF MILTON HERSHEY SCHOOL AND SCHOOL TRUST IS DETERMINED BY PERIODIC REVIEW (GENERALLY, AT LEAST EVERY THREE YEARS) BY THIRD PARTY COMPENSATION CONSULTANTS TO DETERMINE IT IS FAIR AND REASONABLE. THE MEMBERS OF THE BOARD OF MANAGERS OF MILTON HERSHEY SCHOOL DO NOT RECEIVE ANY DIRECT COMPENSATION FROM MILTON HERSHEY SCHOOL. THE MANAGERS RECEIVE COMPENSATION FROM HERSHEY TRUST COMPANY AS DIRECTORS OF THE HERSHEY TRUST COMPANY IN ACCORDANCE WITH ITS BYLAWS AND THE PENNSYLVANIA OFFICE OF ATTORNEY GENERAL AGREEMENT. FORM 990, PART VI, SECTION C, LINE 17 STATE FILING OF FORM 990 THE FORM 990 IS NOT REQUIRED TO BE FILED IN THE STATE OF PENNSYLVANIA; HOWEVER, A COPY IS PROVIDED TO THE PENNSYLVANIA OFFICE OF THE ATTORNEY GENERAL FOR THEIR REVIEW. FORM 990, PART VI, SECTION C, LINE 19 PUBLIC AVAILABILITY OF GOVERNING DOCUMENTS THE DEED OF TRUST ESTABLISHING THE MILTON HERSHEY SCHOOL TRUST AND THE CONFLICT OF INTEREST POLICY ARE POSTED ON THE MILTON HERSHEY SCHOOL WEBSITE. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAS ITS FORM 990 POSTED ON ANOTHER WEBSITE, GUIDESTAR. INCLUDED IN THE 990 ARE CERTAIN FINANCIAL STATEMENT COMPONENTS FOR REVIEW. THE FORM 990 AND TAX EXEMPTION LETTER ARE PROVIDED TO ANYONE WHO REQUESTS THEM IN ACCORDANCE WITH IRS REGULATIONS. FORM 990, PART VII, SECTION B HERSHEY TRUST COMPANY IS LISTED AS AN INDEPENDENT CONTRACTOR. MILTON HERSHEY SCHOOL REIMBURSES HERSHEY TRUST COMPANY FOR THE SHARED SERVICES (COMPENSATION AND BENEFITS) OF CERTAIN INDIVIDUALS WHO PERFORM SERVICES FOR BOTH HERSHEY TRUST COMPANY AND MILTON HERSHEY SCHOOL. THE SCHOOL TRUST REIMBURSES HERSHEY TRUST COMPANY FOR INVESTMENT SERVICES. FORM 990, PART XI, LINE 11G OTHER FEES FOR SERVICE THIS AMOUNT IS FOR HOSPITAL, MEDICAL, AND DENTAL SERVICES PROVIDED FOR THE STUDENTS. FORM 990, PART XI, LINE 9 RECONCILIATION OF NET ASSETS INCREASE IN UNRECOGNIZED PENSION SERVICE COST $(13,391,690) MHST CORPUS LLC PO BOX 445 HERSHEY PA 17033 271451942 RE RENTAL PA 0 0 MHS TRUST MHST INCOME LLC PO BOX 445 HERSHEY PA 17033 271451914 RE RENTAL PA 0 0 MHS TRUST EATON VANCE TRUST CO HIGH YIELD CTF TWO INTERNATIONAL PLACE BOSTON MA 02210 320399219 INVESTMENTS MA 6689171 124859637 MHS TRUST THE MS HERSHEY FOUNDATION PO BOX 445 HERSHEY PA 17033 236242734 EDUCATION PA 501(c)(3) 10 HTC TRUSTEE false THE WILLIAM E DEARDEN ALUMNI CAMPUS INC PO BOX 830 HERSHEY PA 17033 202579678 SVCS TO ALUM PA 501(c)(3) 7 NA false HERSHEY CEMETERY COMPANY PO BOX 445 HERSHEY PA 17033 231973529 CEMETERY PA 501(c)(13) N/A NA false Hershey Cemetery Perpetual Maintenance PO Box 445 Hershey PA 17033 236629638 Cemetery PA 501(c)(13) N/A HTC Trustee false FRANKLIN TEMPLETON EMERGING MARKET DEBT PO BOX 7777 SAN MATEO CA 94403 263995499 INVESTMENTS CA MHS TRUST Exluded from Tax 6836340 84863665 false 0 false 0.61490 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 230692150 STATE TRUST C PA HTC TRUSTEE C CORP 14290276 48387121 1.00000 true HERSHEY ENTERTAINMENT & RESORTS CO 27 W CHOCOLATE HERSHEY PA 17033 230691815 ENTERTAINMENT PA HTC TRUSTEE C CORP 319283251 339151771 1.00000 true THE HERSHEY CO 100 CRYSTAL A DR HERSHEY PA 17033 230691590 CONFECTIONARY PA HTC TRUSTEE C CORP 1125061495 2309098178 0.80270 true MILTON HERSHEY SCHOOL BLK TRUST BLACKROCK INST TR TTE 400 HOWARD S SAN FRANCISCO CA 94105 306349039 INVESTMENTS CA MHS TRUST TRUST 66824760 1214461210 1.00000 true HERSHEY WEST END LAND CONDO ASSOC INC 100 EAST MANSION ROAD HERSHEY PA 17033 462294247 CONDO ASSOCIATION PA HTC TRUSTEE c corp 0 0 1.00000 false THE ORCHARD AT HERSHEY CONDO ASSOC INC 100 EAST MANSION ROAD HERSHEY MA 17033 462295692 INACTIVE PA HTC TRUSTEE c corp 0 0 1.00000 false true true true false false true true true false false false false true false true true false false false Hershey Entertainment & Resorts Co a 289774 market Hershey Trust Company a 231992 market The MS Hershey Foundation a 11878 market Hershey Entertainment & Resorts Co c 327967 market The Hershey Co H 47835000 market The Hershey Co f 170527433 market Hershey Entertainment & Resorts Co f 14570000 market Milton Hershey School BLK Trust g 113862563 market Milton Hershey School BLK Trust h 320000499 market Hershey Trust Company m 6441481 cost Hershey Trust Company o 702481 cost Hershey Entertainment & Resorts Co p 1263018 market The MS Hershey Foundation p 110809 market FRANKLIN TEMPLETON EMERGING MARKET DEBT b 3000000 market FRANKLIN TEMPLETON EMERGING MARKET DEBT c 3468904 market SCHEDULE R, PART I DISREGARDED ENTITIES THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST OWNS 100% OF MHST CORPUS LLC AND MHST INCOME LLC. BOTH ARE PENNSYLVANIA SINGLE-MEMBER LIMITED LIABILITY COMPANIES. THE LLCS' PRINCIPAL ACTIVITY ARE THE ACQUISITION, HOLDING AND DEVELOPMENT OF RENT-PRODUCING REAL ESTATE, AND THEIR PRINCIPAL SOURCE OF REVENUE IS RENT. THEY ARE DISREGARDED SINGLE-MEMBER LLCS FOR TAX PURPOSES. MHST CORPUS LLC AND MHST INCOME LLC DO NOT CURRENTLY HAVE ANY ASSETS OR INCOME. SCHEDULE R, PART II RELATED TAX-EXEMPT ORGANIZATIONS RELATED TAX-EXEMPT ORGANIZATIONS THE M.S. HERSHEY FOUNDATION (EIN 23-6242734) IS A PENNSYLVANIA NONPROFIT THAT IS EXEMPT FROM FEDERAL INCOME TAX PURSUANT TO INTERNAL REVENUE CODE SECTION 501(C)(3). MILTON HERSHEY FUNDED THE FOUNDATION IN 1935 AND APPOINTED HERSHEY TRUST COMPANY AS ITS TRUSTEE. THE FOUNDATION HAS SEVERAL OPERATIONS IN HERSHEY, PENNSYLVANIA INCLUDING THE HERSHEY STORY, HERSHEY GARDENS, HERSHEY COMMUNITY ARCHIVES AND THE HERSHEY THEATRE. THE MEMBERS OF THE BOARD OF MANAGERS OF THE FOUNDATION ARE APPOINTED BY THE HERSHEY TRUST COMPANY, IN ITS CAPACITY AS TRUSTEE, FROM AMONG ITS OWN BOARD OF DIRECTORS. TOGETHER THE TRUSTEE AND BOARD OF MANAGERS SERVE AS THE GOVERNING BODY OF THE FOUNDATION. HERSHEY CEMETERY COMPANY (EIN 23-1973529) IS A PENNSYLVANIA CEMETERY COMPANY THAT IS EXEMPT FROM FEDERAL INCOME TAX PURSUANT TO INTERNAL REVENUE CODE SECTION 501(C)(13). HERSHEY TRUST COMPANY OPERATES THE CEMETERY COMPANY AND IS TRUSTEE OF THE HERSHEY CEMETERY PERPETUAL MAINTENANCE FUND TRUST (EIN: 23-6629638) THAT WAS ESTABLISHED TO PROVIDE FUNDING FOR PERPETUAL MAINTENANCE FOR THE HERSHEY CEMETERY. HERSHEY CEMETERY IS THE FINAL RESTING PLACE OF MILTON & CATHERINE HERSHEY. THE HERSHEY TRUST COMPANY AND THE HERSHEY CEMETERY COMPANY ARE RELATED TO MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE WILLIAM E. DEARDEN ALUMNI CAMPUS, INC. (EIN 20-2579678) IS A PENNSYLVANIA NONPROFIT THAT IS EXEMPT FROM FEDERAL INCOME TAX PURSUANT TO INTERNAL REVENUE CODE SECTION 501(C)(3). THE NONPROFIT'S MISSION IS TO PROMOTE AND ENHANCE THE EDUCATION AND GENERAL WELFARE OF THE STUDENTS AND ALUMNI OF THE SCHOOL; TO ACHIEVE CLOSER COOPERATION BETWEEN THE SCHOOL AND ALUMNI, IN THE INTEREST OF THE EDUCATION AND GENERAL WELFARE OF THE STUDENTS AND ALUMNI; TO DEVELOP AMONG TEACHERS, ADMINISTRATION, STUDENTS, ALUMNI AND THE GENERAL PUBLIC SUCH PROGRAMS AND ACTIVITIES AS WILL SECURE FOR ALL STUDENTS AND ALUMNI THE HIGHEST ADVANTAGES IN PHYSICAL, MENTAL AND SOCIAL EDUCATION AND DEVELOPMENT; TO SERVE AS A CLEARING HOUSE FOR THE GATHERING AND DISSEMINATION OF INFORMATION AND KNOW-HOW IN FURTHERANCE OF THE FOREGOING PURPOSES; AND TO SOLICIT AND ACCEPT DONATIONS, GIFTS, GRANTS, LEGACIES AND BEQUESTS TO FURTHER THE FOREGOING PURPOSES. PER ITS GOVERNING INSTRUMENT, SEVERAL OF THE BOARD MEMBERS ARE SELECTED FROM THE OFFICERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST OR ARE APPOINTED BY THE PRESIDENT OF THE MILTON HERSHEY SCHOOL. SCHEDULE R, PART IV RELATED ORGANIZATIONS TAXABLE AS A CORPORATION OR TRUST THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HOLDS 28.93% OF THE OUTSTANDING COMBINED COMMON AND CLASS B SHARES OF THE HERSHEY COMPANY. EACH SHARE OF THE CLASS B COMMON STOCK ENTITLES ITS HOLDER TO 10 VOTES. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAS 80.27% OF ALL VOTES ENTITLED TO BE CAST ON MATTERS REQUIRING THE VOTE OF COMMON STOCK AND CLASS B COMMON STOCK VOTING TOGETHER. COLUMNS (F) AND (G) REFLECT THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S 28.93% SHARE OF THE HERSHEY COMPANY'S TOTAL INCOME AND END-OF-YEAR ASSETS. COLUMN (H) REFLECTS THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S TOTAL COMBINED VOTING POWER. (PERCENTAGES AS OF JULY 31, 2019) SCHEDULE R, PARTS III AND IV, RELATED ORGANIZATIONS TAXED AS A PARTNERSHIP AND RELATED ORGANIZATIONS TAXED AS A CORPORATION OR TRUST. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUSTS INVESTED IN ONE PARTNERSHIP AND ONE TRUST THAT ARE INVESTMENT ENTITIES, IN WHICH THE SCHOOL AND SCHOOL TRUST OWN MORE THAN FIFTY PERCENT. SCHEDULE R, PART V, LINE 2 (ITEM 6) HERSHEY ENTERTAINMENT & RESORTS CO. PROVIDED HERSHEYPARK AND GIANT CENTER TICKETS, PROJECT FELLOWSHIP ACTIVITIES AND OTHER BENEFITS TO MILTON HERSHEY SCHOOL STUDENTS AT NO COST. THE VALUE OF THESE BENEFITS WAS $327,967.