2020-02-28T12:06:25-06:00 2019-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1570 FRUITVILLE PIKE SUITE 400 LANCASTER PA 17601 990 2018-07-01 231352646 HAVERFORD SCHOOL HAVE 6106423020 450 LANCASTER AVENUE HAVERFORD PA 19041 DAVID S GOLD CFO 6106423020 2020-02-27 1 KERRI N BOGDA CPA P00350393 7177404863 50.211.1.210 2020-02-27 10:08:57 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 F58787FA80410BAE38B710EAF9FCC5760AD3BCDF 2018 2020-09-23 17:36:50Z JOHN NAGL 450 LANCASTER AVENUE HAVERFORD PA 19041 49907293 0 X WWW.HAVERFORD.ORG X 1916 PA A NON-SECTARIAN COLLEGE PREP SCHOOL PRE-K-12, EDUCATES QUALIFIED BOYS OF DIFFERING BACKGROUNDS. 30 29 312 40 253255 1947 5985836 9590907 34412835 34603348 5645993 1914197 1749729 1783775 47794393 47892227 6517258 6857018 0 0 21555913 21141864 0 0 3531865 12335921 12602516 40409092 40601398 7385301 7290829 162547559 173345857 36595297 38281985 125952262 135063872 X THE HAVERFORD SCHOOL, A NON-SECTARIAN COLLEGE PREPARATORY SCHOOL FOR JUNIOR KINDERGARTEN THROUGH GRADE TWELVE, PROVIDES A SUPERIOR LIBERAL ARTS EDUCATION FOR QUALIFIED BOYS OF DIFFERING BACKGROUNDS. WE ARE COMMITTED TO DEVELOPING THE FULL INTELLECTUAL, ARTISTIC, ATHLETIC AND MORAL POTENTIAL IN EACH BOY, AND WE AIM TO GRADUATE YOUNG MEN WITH STRONG CHARACTER WHO POSSESS A PASSION FOR LEARNING AND PROBLEM SOLVING. 0 0 32428190 6857018 34603348 PREPARING YOUNG MEN ACADEMICALLY FOR THE FUTURE IS UNDOUBTEDLY ONE OF THE MOST VALUABLE BENEFITS OF A HAVERFORD EDUCATION. BUT MORE IMPORTANTLY, WE GIVE BOYS A FOUNDATION OF SKILLS THEY NEED TO LEAD A FULFILLING AND MEANINGFUL LIFE. AS OUR STATEMENT OF VISION READS, "THE HAVERFORD FACULTY PREPARES EACH BOY TO BE FUTURE-READY THROUGH DEVELOPING HIS CHARACTER AND HIS EMOTIONAL INTELLIGENCE, AS WELL AS HIS ACADEMIC, ARTISTIC, AND ATHLETIC TALENTS."THE HAVERFORD SCHOOL INCURS DIRECT INSTRUCTIONAL EXPENSES IN PRE-KINDERGARTEN THROUGH GRADE 12, ATHLETIC PROGRAMS, AND OTHER EXTRA-CURRICULAR ACTIVITY EXPENSES FOR APPROXIMATELY 1,000 STUDENTS. 32428190 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 1 122 0 312 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 30 29 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA MA NJ X DAVID S GOLD CHIEF FINANCIAL OFFICER 4844172722 450 LANCASTER AVENUE HAVERFORD PA 19041 DOROTHY S WALKER TRUSTEE 0.50 X 0 0 0 JONATHAN R MORGAN TRUSTEE 0.50 X 0 0 0 G BART SMITH TRUSTEE 0.50 X 0 0 0 AMY PETERSEN VICE CHAIRMAN 0.50 X X 0 0 0 JENNIFER PARADIS TRUSTEE 0.50 X 0 0 0 H LADDIE MONTAGUE TRUSTEE 0.50 X 0 0 0 MICHAEL S LEWIS TRUSTEE 0.50 X 0 0 0 CHRISTOPHER J MAGUIRE TRUSTEE 0.50 X 0 0 0 JOHN F HOLLWAY TRUSTEE 0.50 X 0 0 0 WILLIAM T HARRINGTON TRUSTEE 0.50 X 0 0 0 ORAY B BOSTON TRUSTEE 0.50 X 0 0 0 RAVINDRA REDDY TRUSTEE 0.50 X 0 0 0 WILLIAM HAMBLETON TRUSTEE 0.50 X 0 0 0 WILLIAM C YOH CHAIR 7.00 X X 0 0 0 SHARON MERHIGE SECRETARY 0.50 X X 0 0 0 RANDALL DRAIN TRUSTEE 0.50 X 0 0 0 MAURICE D GLAVIN TRUSTEE 0.50 X 0 0 0 JOHN J LYNCH III TRUSTEE 0.50 X 0 0 0 JOHN C WILKINS JR TRUSTEE 0.50 X 0 0 0 BARBARA KLOCK TRUSTEE 0.50 X 0 0 0 JENNIFER N PECHET TRUSTEE 0.50 X 0 0 0 JEFFERY F LEE TRUSTEE 0.50 X 0 0 0 CAROLINE R DE MARCO TRUSTEE 0.50 X 0 0 0 GEORGE B LEMMON TRUSTEE 0.50 X 0 0 0 JASON INGLE TRUSTEE 0.50 X 0 0 0 PETER ROHR TRUSTEE 0.50 X 0 0 0 JOHN A NAGL HEADMASTER 40.00 X X 596046 0 41373 THADDEUS J FORTIN TRUSTEE 0.50 X 0 0 0 JOSHUA R LEVINE TRUSTEE 0.50 X 0 0 0 WADE L MCDEVITT TRUSTEE 0.50 X 0 0 0 JEFFERY DAY DIR. OF DEVELOPMENT 40.00 X 210495 0 69772 JAMES J GREYTOK JR HEAD OF MIDDLE SCHOOL 40.00 X 190115 0 33263 JAMES THORBURN ASSISTANT HEADMASTER 40.00 X 267859 0 32610 DAVID GOLD CHIEF FINANCIAL OFFICER 40.00 X 237318 0 31522 BRIAN MCBRIDE ASSOCIATE HEAD FOR EXTERNAL AFFAIRS 40.00 X 200597 0 77636 JOHN NOSTRANT ATHLETIC DIRECTOR 40.00 X 186606 0 31959 REBECCA DAVIS DEAN OF FACULTY 40.00 X 121702 0 29356 MICHELE TODD DIR. OF HUMAN RESOURCES 40.00 X 122714 0 51193 MICHAEL MURPHY ATHLETIC DIRECTOR 40.00 X 158514 0 66445 PAM GREENBLATT LOWER SCHOOL HEAT (AS OF 7/1/18) 40.00 X 135000 0 14762 GEORGE WOOD SENIOR DIRECTOR OF MAJOR GIFTS 40.00 X 142614 0 14287 2569580 0 494178 29 0 1 0 SODEXO USA PO BOX 360170 PITTSBURGH PA 15261 FOOD/FACILITIES MGT 3107658 WALLACE ROBERTS & TODD LLC 1700 MARKET STREET 28TH FL PHILADELPHIA PA 19103 ARCHITECTS 802898 ADAMS BICKEL ASSOC LLC 341 N 10TH AVENUE SUITE 206 ROYERSFORD PA 19468 CONSTRUCTION 335474 ALLIED UNIVERSAL SECURITY SERVICES PO BOX 828854 PHILADELPHIA PA 19182 SECURITY PERSONNEL 312492 DELCO SOLUTIONS LLC 825 CHESTER PIKE SHARON HILL PA 19079 AUDIO VISUAL SERVICES 239916 12 70646 130465 9389796 1090747 9590907 TUITION & FEES 611710 33925069 33925069 DAY CARE PROGRAM 611710 494386 494386 MUSIC LESSONS 611710 116837 116837 ENRICHMENT PROGRAM 611710 67056 67056 34603348 1275490 -48937 1324427 211735 204624 7111 7111 7111 2263360 1624653 638707 638707 638707 370404 70646 185789 184615 184615 CAFETERIA 611710 1074787 63073 1011714 SUMMER DAY CAMP 611710 213105 213105 CAFE SALES 611710 103731 103731 200426 26014 174412 1592049 47892227 34603348 253255 3444717 6857018 6857018 2519994 1105373 919635 494986 12877242 10709526 992315 1175401 1153270 946218 107732 99320 3515337 2761106 414705 339526 1076021 834655 129319 112047 30992 30992 44114 44114 498874 498874 1997587 1977044 20543 277059 277059 1794758 1557762 188245 48751 239194 239194 1803915 1004008 421928 377979 264052 219092 44960 79197 52514 16058 10625 3386971 2624049 402420 360502 350834 300240 26687 23907 UBIT TAXES 4486 4486 INSTRUCTIONAL EXPENSES 771119 771119 ATHLETIC DEPARTMENT 414054 414054 COMMUNICATION 141903 141903 503407 50732 427776 24899 40601398 32428190 4641343 3531865 X 32090 59272 10110623 11578824 4453726 6231587 25270 20831 535444 622943 121153631 50387369 69865303 70766262 37077958 43106932 39845637 40313629 601508 645577 162547559 173345857 2384513 2726523 4938837 4996299 26956612 26960490 444444 2315335 3154229 36595297 38281985 X 97248070 102688573 3182411 4786476 25521781 27588823 125952262 135063872 162547559 173345857 X 7290829 2681210 -860429 X 0 1 X 1 0 X 6670221 8442787 4798613 5929618 9590907 35432146 6670221 8442787 4798613 5929618 9590907 35432146 1597853 33834293 1680731 1503949 1526415 1266172 1487225 7464492 12454 12454 1193379 1345101 1288205 1279346 1289857 6395888 49304980 169162526 0.68620 0.63380 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: CAFETERIA - 2014 AMOUNT: $ 969,234. 2015 AMOUNT: $ 1,021,747. 2016 AMOUNT: $ 993,344. 2017 AMOUNT: $ 1,008,891. 2018 AMOUNT: $ 1,011,714. OTHER - 2014 AMOUNT: $ 401. 2015 AMOUNT: $ 16,957. 2016 AMOUNT: $ 4,953. 2017 AMOUNT: $ 33,187. 2018 AMOUNT: $ 54,277. ATHLETICS - 2014 AMOUNT: $ 21,300. 2015 AMOUNT: $ 100,775. 2016 AMOUNT: $ 88,669. 2017 AMOUNT: $ 75,255. 2018 AMOUNT: $ 87,900. THEATER PRODUCTIONS - 2014 AMOUNT: $ 15,032. 2015 AMOUNT: $ 13,680. 2016 AMOUNT: $ 13,292. 2017 AMOUNT: $ 16,598. 2018 AMOUNT: $ 12,208. CAFE SALES - 2014 AMOUNT: $ 154,401. 2015 AMOUNT: $ 123,422. 2016 AMOUNT: $ 115,900. 2017 AMOUNT: $ 108,292. 2018 AMOUNT: $ 103,731. HALL OF FAME DINNER - 2015 AMOUNT: $ 18,048. 2017 AMOUNT: $ 10,790. YEARBOOK SALES - 2014 AMOUNT: $ 1,657. 2015 AMOUNT: $ 1,631. 2016 AMOUNT: $ 2,779. 2017 AMOUNT: $ 650. 2018 AMOUNT: $ 961. SCHOOL STORE - 2014 AMOUNT: $ 12,304. 2015 AMOUNT: $ 4,291. 2016 AMOUNT: $ 1,537. 2017 AMOUNT: $ 2,253. 2018 AMOUNT: $ 4,066. SODEXO SUBSIDY - 2014 AMOUNT: $ 19,050. 2015 AMOUNT: $ 19,050. 2016 AMOUNT: $ 19,050. 2017 AMOUNT: $ 18,900. SCHOOL PICTURE COMMISSION - 2016 AMOUNT: $ 4,044. 2017 AMOUNT: $ 4,530. HUDSON FARM SHOOT - 2015 AMOUNT: $ 25,500. 2016 AMOUNT: $ 44,637. APPLICATION FEES - 2018 AMOUNT: $ 15,000. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 76923595 2555870 3941096 83420561 71516670 2627135 2779790 76923595 67547651 6092005 2122986 71516670 68448481 2133149 -3033979 67547651 63721085 5783939 -1056543 68448481 0.63290 0.32730 0.03980 0 0 521496 521496 102076328 44265576 57810752 14116842 6121793 7995049 4438965 4438965 70766262 ALTERNATIVE INVESTMENTS 40313629 F 40313629 ACCRUED POSTRETIREMENT HEALTH COSTS 258844 INTEREST RATE SWAP AGREEMENTS 2895385 3154229 X 42729478 2681210 -8216321 -5535111 48264589 -372362 -372362 47892227 33617868 372362 372362 33245506 7355892 7355892 40601398 PART V, LINE 4: THE ENDOWMENT FUND SUPPORTS THE MISSION OF THE SCHOOL THROUGH SCHOLARSHIPS, PROGRAM SUPPORT, AND FACULTY SUPPORT. PART X, LINE 2: THE SCHOOL IS A NON-PROFIT EDUCATIONAL ORGANIZATION WHICH HAS BEEN DETERMINED BY THE INTERNAL REVENUE SERVICE TO BE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC"). THE SCHOOL IS SUBJECT TO FEDERAL INCOME TAXES ON ANY NET UNRELATED BUSINESS TAXABLE INCOME, AS DEFINED BY THE IRC. THE SCHOOL HAS EVALUATED ITS TAX POSITIONS AS OF JUNE 30, 2019. A TAX POSITION IS RECOGNIZED AS A BENEFIT ONLY IF IT IS "MORE-LIKELY-THAN-NOT" THAT THE TAX POSITION WOULD BE SUSTAINED IN A TAX EXAMINATION, WITH A TAX EXAMINATION BEING PRESUMED TO OCCUR. THE AMOUNT RECOGNIZED IS THE LARGEST AMOUNT OF TAX BENEFIT THAT HAS A LIKELIHOOD OF BEING REALIZED ON EXAMINATION OF MORE THAN 50 PERCENT. FOR TAX POSITIONS NOT MEETING THE "MORE-LIKELY-THAN-NOT" TEST, NO TAX BENEFIT IS RECORDED. UNDER THE "MORE-LIKELY-THAN-NOT" THRESHOLD GUIDELINES, MANAGEMENT BELIEVES NO SIGNIFICANT UNCERTAIN TAX POSITIONS EXIST, EITHER INDIVIDUALLY OR IN THE AGGREGATE, THAT WOULD GIVE RISE TO THE RECOGNITION OF AN INCOME TAX LIABILITY. AS OF JUNE 30, 2019, IN THE OPINION OF MANAGEMENT, THE SCHOOL HAS NO MATERIAL UNRECOGNIZED INCOME TAX LIABILITIES OR ACCRUED INTEREST AND PENALTIES. THE SCHOOL'S FEDERAL RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) FOR THE YEARS ENDED JUNE 30, 2018, 2017, AND 2016 ARE SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE, GENERALLY FOR THREE YEARS AFTER THE DATE THE RETURN WAS FILED. PART XI, LINE 2D - OTHER ADJUSTMENTS: LOSS ON INTEREST RATE SWAP -860,429. GRANTS TO INDIVIDUALS -6,857,018. INVESTMENT FEES -498,874. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES -167,738. RENTAL EXPENSES -204,624. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES 167,738. RENTAL EXPENSES 204,624. PART XII, LINE 4B - OTHER ADJUSTMENTS: GRANTS TO INDIVIDUALS 6,857,018. INVESTMENT FEES 498,874. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE HAVERFORD SCHOOL IS A MEMBER OF A LOCAL CONSORTIUM CALLED "ADVIS" THAT PUBLISHES A NONDISCRIMINATORY STATEMENT IN NEWSPAPERS. SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVES BOOKS FROM THE PENNSYLVANIA DEPARTMENT OF EDUCATION. CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 221005 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES EDUCATIONAL TRIPS FOR STUDENTS 14566 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES EDUCATIONAL TRIPS FOR STUDENTS 24274 CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES EDUCATIONAL TRIPS FOR STUDENTS 33155 SOUTH AMERICA 0 0 PROGRAM SERVICES EDUCATIONAL TRIPS FOR STUDENTS 14280 0 0 0 0 0 0 307280 0 307280 0 0 0 1 1 0 SCHEDULE F, PART IV, LINES 4 AND 5: THE ORGANIZATION HAS INTERESTS IN FOREIGN CORPORATIONS AND PARTNERSHIPS, HOWEVER, ITS PERCENTAGE OWNERSHIP DOES NOT EXCEED THE THRESHOLD FOR REPORTING ON FOREIGN FORMS. PARENTS GALA 250076 65761 184315 44643 2100 40652 EA DAY 33022 33022 18809 7 69082 4385 64697 9540 36921 352180 70146 282034 54183 2100 96382 152665 129369 1 SCHOLARSHIPS & FINANCIAL AID 359 6857018 PART I, LINE 2: GRANT FUNDS ARE DETERMINED USING AN OUTSIDE SERVICE WHICH DETERMINES NEED FOR TUITION ASSISTANCE. THE FUNDS OR TUITION DISCOUNT IS THEN APPLIED AGAINST THE TUITION OBLIGATION AT THE SCHOOL. FAMILIES ARE ASKED TO NOTIFY THE SCHOOL IF THEIR FINANCIAL SITUATION CHANGES. X X 1 1 X X X X 0 0 0 0 0 0 0 1 0 JOHN A NAGL HEADMASTER 467042 0 90000 0 39004 0 27500 0 13873 0 637419 0 0 0 JEFFERY DAY DIR. OF DEVELOPMENT 180495 0 0 0 30000 0 18050 0 51722 0 280267 0 0 0 JAMES J GREYTOK JR HEAD OF MIDDLE SCHOOL 160115 0 0 0 30000 0 16012 0 17251 0 223378 0 0 0 JAMES THORBURN ASSISTANT HEADMASTER 220359 0 0 0 47500 0 22036 0 10574 0 300469 0 0 0 DAVID GOLD CHIEF FINANCIAL OFFICER 237318 0 0 0 0 0 23732 0 7790 0 268840 0 0 0 BRIAN MCBRIDE ASSOCIATE HEAD FOR EXTERNAL AFFAIRS 200597 0 0 0 0 0 20060 0 57576 0 278233 0 0 0 JOHN NOSTRANT ATHLETIC DIRECTOR 145606 0 0 0 41000 0 14561 0 17398 0 218565 0 0 0 REBECCA DAVIS DEAN OF FACULTY 121702 0 0 0 0 0 12170 0 17186 0 151058 0 0 0 MICHELE TODD DIR. OF HUMAN RESOURCES 122014 0 0 0 700 0 12201 0 38992 0 173907 0 0 0 MICHAEL MURPHY ATHLETIC DIRECTOR 143514 0 0 0 15000 0 14351 0 52094 0 224959 0 0 0 GEORGE WOOD SENIOR DIRECTOR OF MAJOR GIFTS 140514 0 0 0 2100 0 14051 0 236 0 156901 0 0 0 PART I, LINE 1A HEADMASTER JOHN NAGL RECEIVES A HOUSING ALLOWANCE THAT IS INCLUDED IN HIS TAXABLE WAGES. THE FAIR MARKET VALUE OF HIS HOUSING ALLOWANCE FOR 2018 WAS $36,000. THE FAIR MARKET VALUE OF HIS CAR ALLOWANCE FOR 2018 WAS $3,004. THE FOLLOWING PERSONNEL ARE REQUIRED TO RESIDE ON CAMPUS AND THEIR HOUSING ALLOWANCES ARE LIKEWISE INCLUDED IN THEIR TAXABLE WAGES: JAMES THORBURN, JOHN NOSTRANT, PAM GREENBLATT, JAMES GREYTOK, JEFFREY DAY, MICHAEL MURPHY AND KARL ANDREN. JAMES THORBURN AND JOHN NOSTRANT ALSO RECEIVE TAX GROSS-UP PAYMENTS RELATED TO THEIR TAXABLE HOUSING ALLOWANCES. PART I, LINE 7 THE HEADMASTER RECEIVED A BONUS BASED ON GOALS AND CRITERIA DETERMINED BY THE BOARD ON A DISCRETIONARY BASIS. THE CRITERIA WERE NOT BASED ON EITHER REVENUE OR NET EARNINGS. A MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232245125 NONEAVAIL 2010-12-28 30000000 CURRENT REFUNDING T/E BOND ISSUE 6/02/08 TO FINANCE FACILITIES CONSTRUCTION 0 0 0 A 3000000 30000000 30000000 2010 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 1 0 0 0 1 A 1 SCHEDULE K, PART IV, LINE 2C NOTE THAT ALL FUNDS NOT IMMEDIATELY DISSEMINATED WERE PLACED INTO A REFUNDING ESCROW ACCOUNT WHOSE INTEREST RATE WAS DELIBERATELY AND CLEARLY LOWER THAN THE RATE ON THE BOND ISSUE ITSELF. THE YIELD ON THE ESCROW WAS VERIFIED AT CLOSING TO BE BELOW THE BOND YIELD AND NO CHANGES HAVE BEEN MADE TO THE ESCROW INVESTMENTS OR BOND YIELD. THEREFORE, MANAGEMENT HAS DETERMINED THAT NO ADDITIONAL REBATE CALCULATION IS REQUIRED. 1421050 DISCOUNTED TUITION EMPLOYEE FINANCIAL ASSISTANCE KATHERINE THORBURN KATHERINE THORBURN IS THE SPOUSE OF JAMES THORBURN, A KEY EMPLOYEE 120437 KATHERINE THORBURN IS AN EMPLOYEE AS IS HER SPOUSE, JAMES THORBURN. HER SALARY AND BENEFITS ARE BEING REPORTED. KATHERINE DOES NOT REPORT TO JAMES NOR DOES JAMES PARTICIPATE IN SALARY DISCUSSIONS. 0 X 130465 PURCHASE PRICE X 30 960282 NYSE PRICE 0 0 1 0 PART I, COLUMN (B): THE NUMBERS IN COLUMN B REPRESENT THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 1 SOMETIMES THE BROADER BOARD WILL VOTE TO GIVE AUTHORITY TO THE EXECUTIVE COMMITTEE, COMPOSED OF THE CHAIR, THE VICE CHAIR, SECRETARY, TREASURER, THREE OTHER MEMBERS AND THE HEADMASTER. THE SCOPE IS ON A CASE BY CASE BASIS. FORM 990, PART VI, SECTION B, LINE 11B THE INITIAL REVIEW IS UNDERTAKEN BY THE CHIEF FINANCIAL OFFICER. ONCE THE CFO APPROVES, THE SCHOOL WILL THEN CIRCULATE THE RETURN IN ITS ENTIRETY TO THE FULL BOARD FOR COMMENTS OR QUESTIONS BEFORE THE RETURN IS TRANSMITTED TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY THE BOARD OF TRUSTEES IS REQUIRED TO COMPLETE A QUESTIONNAIRE TO HIGHLIGHT ANY CONFLICTS. BUSINESS AND PERSONAL RELATIONSHIPS ARE SPECIFICALLY MENTIONED IN THE POLICY AS HAVING POTENTIAL FOR CONFLICTS OF INTEREST. THE CHIEF FINANCIAL OFFICER REVIEWS THE FORMS ANNUALLY TO DETERMINE IF ANY CONFLICTS EXIST. IF A POTENTIAL CONFLICT ARISES, THE BOARD MEMBER, OFFICER, OR KEY EMPLOYEE IN QUESTION RECUSES HIMSELF OR HERSELF FROM ANY VOTES OR DECISIONS RELATED TO THE CONFLICT. OFFICERS AND KEY EMPLOYEES ARE HELD RESPONSIBLE FOR ANY POTENTIAL CONFLICTS UNDER THE SCHOOL'S "CODE OF CONDUCT" POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE HEADMASTER'S COMPENSATION IS DETERMINED BY THE CHAIRMAN OF THE BOARD OF TRUSTEES AND THE EXECUTIVE COMMITTEE. THEY ENGAGE AN OUTSIDE CONSULTANT (HUGH MALLON OF EXECUTIVE COMPENSATION CONCEPTS) FOR ASSISTANCE IN DETERMINING THE HEADMASTER'S CONTRACT. THE CONSULTANT BENCHMARKS/SAFE HARBORS AGAINST OTHER HEADMASTERS IN THE INDUSTRY TO ENSURE THE HEADMASTER'S COMPENSATION IS WITHIN FAIR MARKET RANGE. IN 2016, THE HEADMASTER'S CONTRACT WAS EXTENDED THROUGH 2021. CHANGES SUCH AS THE EXTENSION OF THE HEADMASTER'S EMPLOYMENT CONTRACT ARE DOCUMENTED IN THE BOARD MINUTES. THE BOARD OF DIRECTORS IS INFORMED ON A HISTORICAL BASIS OF THE HEADMASTER'S COMPENSATION. OTHER KEY EMPLOYEES' SALARIES ARE DETERMINED BY THE HEADMASTER, WHO BENCHMARKS SALARIES WITH OTHER SCHOOLS IN THE AREA ON AN ANNUAL BASIS AND REVIEWS THE SALARIES WITH THE BOARD CHAIR IN CHARGE OF THE FACULTY AND STAFF COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: NET GAIN/LOSS ON INTEREST RATE SWAP -860,429.