2020-07-14T14:51:42-05:00 2019-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1570 FRUITVILLE PIKE SUITE 400 LANCASTER PA 17601 990 2018-07-01 231352639 TRUSTEES OF THE PUBLIC SCHOOL OF GERMANTOWN TRUS 2156463300 PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 THOMAS P TAFT CHIEF OPERATING OFFICER 2156463300 2020-07-14 1 KERRI N BOGDA CPA P00760402 7177404863 73.101.37.214 2020-07-14 10:51:34 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 F58787FA80410BAE38B710EAF9FCC5760AD3BCDF 2018 2021-01-29 14:40:06Z GERMANTOWN ACADEMY THOMAS P TAFT PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 59258622 0 X WWW.GERMANTOWNACADEMY.NET X 1759 PA AN INDEPENDENT, COEDUCATIONAL COLLEGE PREP SCHOOL FOR COMMUTING STUDENTS IN GRADES PRE-K - TWELVE. 28 28 670 137 -9957 -9957 3132184 4867961 37418711 38550426 8719067 4565367 2831188 3283530 52101150 51267284 6318905 6665962 0 0 28064005 28892187 21488 25914 1678569 9664953 10003210 44069351 45587273 8031799 5680011 132869952 137269653 36760500 35714688 96109452 101554965 X GERMANTOWN ACADEMY INSPIRES STUDENTS TO BE INDEPENDENT IN THOUGHT; CONFIDENT IN EXPRESSION; COMPASSIONATE IN SPIRIT; COLLABORATIVE IN ACTION; AND HONORABLE IN DEED. 0 0 36131232 6665962 38550426 GERMANTOWN ACADEMY IS A NON-SECTARIAN, COEDUCATIONAL COLLEGE PREPARATORY SCHOOL EDUCATING STUDENTS FROM PRE-K TO GRADE 12. FOUNDED IN 1759, GERMANTOWN ACADEMY HAS OVER 250 YEARS OF HISTORY, TRADITION, AND OUTSTANDING ACADEMICS. GERMANTOWN ACADEMY IS A PLACE THAT INSPIRES. STUDENTS DEVELOP A LOVE OF LEARNING BEGINNING WITH THE FIRST DAY OF PRE-K THAT CONTINUES THROUGH THE FINAL DAY OF 12TH GRADE AND BEYOND. OUR DEDICATED FACULTY AND STAFF EMBRACE STUDENTS' INNATE CURIOSITY AND ENCOURAGE THEM TO BUILD UPON THEIR NATURAL STRENGTHS WHILE CHALLENGING THEM TO EXPAND THEIR KNOWLEDGE THROUGH A MULTITUDE OF LEARNING EXPERIENCES. THIS IS OUR PROMISE TO OUR STUDENTS, AND IT BECOMES THEIR FOUNDATION FOR LIFE.FOR MORE THAN 250 YEARS, STUDENTS AT GERMANTOWN ACADEMY HAVE BEEN ENCOURAGED TO FOLLOW THEIR PASSIONS. THE CUMULATIVE RESULT IS AN EXCEPTIONAL ACADEMIC, ARTISTIC, ATHLETIC, AND SOCIAL EXPERIENCE THAT CREATES SUCCESSFUL, WELL-EDUCATED, ETHICAL YOUNG PEOPLE WHO BELIEVE THEY CAN MAKE A DIFFERENCE IN THE WORLD.GERMANTOWN ACADEMY IS A PLACE OF INNOVATION. WE ARE AT THE FOREFRONT OF IMPORTANT INITIATIVES SUCH AS 21ST CENTURY CURRICULUM DEVELOPMENT, LANGUAGE INSTRUCTION, AND INTERNATIONAL RELATIONSHIPS. IF A NEW PROGRAM OR IDEA PROVIDES AN OPPORTUNITY FOR OUR STUDENTS, WE WILL EXPLORE IT.WITH TALENTED AND CARING FACULTY, HONEST AND CURIOUS STUDENTS, AND A BEAUTIFUL ENVIRONMENT, GERMANTOWN ACADEMY IS WHERE YOUR CHILD CAN BECOME HIS OR HER BEST SELF. A TOTAL OF 1,158 STUDENTS WERE ENROLLED THIS FISCAL YEAR. 36131232 1 1 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 0 1 1 1 0 0 1 0 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 1 48 0 670 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 28 28 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X THOMAS P TAFT CHIEF OPERATING OFF 2674057224 PO BOX 287 MORRIS ROAD FORT WASHINGTON PA 19034 ALISON KORMAN FELDMAN TRUSTEE 5.00 X 0 0 0 THOMAS E DURKIN TRUSTEE 5.00 X 0 0 0 SCOTT BADAMI TRUSTEE 5.00 X 0 0 0 SALVATORE J PAONE JR TRUSTEE 5.00 X 0 0 0 NANCY A WOLFSON TRUSTEE 5.00 X 0 0 0 MICHELLE WOOD TRUSTEE 5.00 X 0 0 0 LORI R GRISWOLD TRUSTEE 5.00 X 0 0 0 KRISTEN LUECKEL BUCKLER TRUSTEE 5.00 X 0 0 0 KATHY WYSZOMIERSKI TRUSTEE 5.00 X 0 0 0 JUDY CHANG CODY TRUSTEE 5.00 X 0 0 0 JUDY A FELGOISE TRUSTEE 5.00 X 0 0 0 JUDI J GOODMAN TRUSTEE 5.00 X 0 0 0 JOHN M GALLOWAY TRUSTEE 5.00 X 0 0 0 JOHN KORMAN TRUSTEE 5.00 X 0 0 0 JOEL MAGERMAN TRUSTEE 5.00 X 0 0 0 JEFFREY SULTANIK TRUSTEE 5.00 X 0 0 0 TYNETTA ALSTON TRUSTEE 5.00 X 0 0 0 HEATHER R BADAMI TRUSTEE 5.00 X 0 0 0 ANDREW SANDIFER TRUSTEE 5.00 X 0 0 0 ANDREW TOWNE TRUSTEE 5.00 X 0 0 0 ANNAMARIE GEPPERT HELLEBUSCH TRUSTEE 5.00 X 0 0 0 ANTHONY DISANDRO JR TRUSTEE 5.00 X 0 0 0 BELA D BAGGA TRUSTEE 5.00 X 0 0 0 JANET HAUGEN TREASURER 5.00 X X 0 0 0 BRADLEY J KORMAN PRESIDENT/BOARD CHAIR 5.00 X X 0 0 0 BERTON E KORMAN TRUSTEE 5.00 X 0 0 0 CARL RAPP TRUSTEE 5.00 X 0 0 0 CAROL MOMJIAN TRUSTEE 5.00 X 0 0 0 CHERYL ROSS TRUSTEE 5.00 X 0 0 0 GEORGE M RITER TRUSTEE 5.00 X 0 0 0 BRIAN DIDONATO SECRETARY 5.00 X X 0 0 0 THOMAS P TAFT CHIEF OPERATING OFFICER 50.00 X 202085 0 25648 RICHARD SCHELLHAS HEAD OF SCHOOL 50.00 X 300163 0 34166 SUSAN SZCZEPKOWSKI HEAD OF LOWER SCHOOL 40.00 X 122373 0 91783 JONAS JESWALD HEAD OF MIDDLE SCHOOL 40.00 X 126036 0 51937 JEFFREY THOMPSON DIRECTOR OF AQUATICS 40.00 X 135138 0 84198 CHRISTOPHER NELSON HEAD OF UPPER SCHOOL 40.00 X 140749 0 20435 AUDREY SCHNUR DIRECTOR, INSTITUTIONAL ADVANCEMENT 40.00 X 159688 0 49564 1186232 0 357731 16 0 1 0 ANCHOR MANAGEMENT GROUP LLC 1000 CONSHOHOCKEN ROAD SUITE 201 CONSHOHOCKEN PA 19428 CONSTRUCTION SVCS. 2483450 ARAMARK SERVICES INC 24858 NETWORK PLACE CHICAGO IL 60673 CLEANING SERVICES 466074 SAGE DINING SERVICES INC 1402 YORK ROAD LUTHERVILLE MD 21093 DINING SERVICES 434123 1100 ARCHITECT PC 475 TENTH AVENUE 10TH FLOOR NEW YORK NY 10018 ARCHITECTURAL SVCS. 202533 EJC CONSTRUCTION INC 18 HILLCREST AVENUE ERDENHEIM NY 10018 CONSTRUCTION SVCS. 181687 7 169373 4698588 304446 4867961 STUDENT TUITION FEES 611600 37565863 37565863 AUXILIARY PROGRAM REVENUE 611600 691173 691173 MUSIC LESSONS 611600 293390 293390 38550426 1350292 -9957 1360249 171749 23077 148672 148672 148672 10856423 7641348 3215075 3215075 3215075 241497 47942 193555 193555 335376 278971 56405 56405 SUMMER PROGRAMS 900099 1507340 1507340 EXTENDED DAY & CHILD CARE FEES 900099 894151 894151 AQUATIC CLUB REVENUE 900099 439066 439066 44341 44341 2884898 51267284 38550426 -9957 7858854 6665962 6665962 610351 467253 115512 27586 19784645 15097007 3790482 897156 1276364 939788 266756 69820 5723888 5254143 414358 55387 1496939 1139282 290262 67395 207933 207933 61981 61981 25914 25914 97520 97520 173005 128040 44651 314 111024 15170 95854 1373967 739963 516571 117433 191857 191857 2141701 1629591 420148 91962 512884 360030 131831 21023 3206462 2439753 629027 137682 306968 306968 EDUC., ATHLETICS, GEN'L 806064 806064 BAD DEBTS 207685 195985 11700 DINING ROOM 199848 199848 AQUATICS CLUB EXPENSES 181988 181988 222323 82520 80460 59343 45587273 36131232 7777472 1678569 9296868 9347512 1218757 1431294 1374588 1947296 362104 317026 73813 69856 600197 479445 120478182 42232373 77426136 78245809 17640393 26853311 10872043 3448830 14005053 15129274 132869952 137269653 2488883 2763349 13365777 13547274 20475834 18948077 430006 455988 36760500 35714688 X 60596055 61957104 8847693 10656024 26665704 28941837 96109452 101554965 132869952 137269653 X 5680011 -1358719 1124221 X 0 1 X 1 0 X 2882581 4729778 2222713 3132184 4867961 17835217 2882581 4729778 2222713 3132184 4867961 17835217 122276 17712941 715827 714542 818204 1165418 1531998 4945989 2080820 2251215 2384624 2503414 2884898 12104971 34886177 179960156 0.50770 0.51550 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2014 AMOUNT: $ 51,909. 2015 AMOUNT: $ 99,970. 2016 AMOUNT: $ 40,921. 2017 AMOUNT: $ 74,786. 2018 AMOUNT: $ 44,341. SUMMER PROGRAMS - 2014 AMOUNT: $ 1,199,033. 2015 AMOUNT: $ 1,284,671. 2016 AMOUNT: $ 1,321,397. 2017 AMOUNT: $ 1,363,508. 2018 AMOUNT: $ 1,507,340. AQUATIC CLUB REVENUE - 2014 AMOUNT: $ 323,905. 2015 AMOUNT: $ 289,953. 2016 AMOUNT: $ 336,315. 2017 AMOUNT: $ 381,461. 2018 AMOUNT: $ 439,066. EXTENDED DAY AND CHILD CARE FEES - 2014 AMOUNT: $ 505,973. 2015 AMOUNT: $ 576,621. 2016 AMOUNT: $ 685,991. 2017 AMOUNT: $ 683,659. 2018 AMOUNT: $ 894,151. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X 0 28512436 1151912 2175829 1538036 30302141 27309956 288274 2277861 1363655 28512436 25365613 137893 3079250 1272800 27309956 27098343 359484 -543263 1548951 25365613 27218545 347803 47572 515577 27098343 0.30050 0.45580 0.24370 1 0 5635443 5635443 99748799 29500428 70248371 14441551 12731945 1709606 652389 652389 78245809 BENEFICIAL INTEREST IN PERPETUAL TRUST 15129274 15129274 STUDENT DEPOSITS AND ACCOMMODATIONS 450822 DISCOUNT FOR FUTURE INTERESTS IN SPLIT-INTEREST ARRANGEMENTS 5166 455988 X 44571352 -1358719 -5639261 -6997980 51569332 -302048 -302048 51267284 39125839 302048 302048 38823791 6763482 6763482 45587273 PART III, LINE 4: GERMANTOWN ACADEMY MAINTAINS AND DISPLAYS COLLECTIONS OF WORKS OF ART, HISTORICAL TREASURES AND OTHER SIMILAR ASSETS AS A KEY COMPONENT OF OUR LIBERAL ARTS, COLLEGE PREPARATORY CURRICULUM. THESE WORKS OF ART ARE INCORPORATED ON A REGULAR BASIS AS PART OF OUR ART CLASSES TO HELP PROVIDE THE ACADEMY'S STUDENTS WITH THE FRAMEWORK NECESSARY TO GROW AS ARTISTS THEMSELVES AND TO MEET THE STATED CURRICULAR OBJECTIVES OF OUR MISSION. THERE IS NO INTENTION TO EVER SELL A WORK OF ART IN ORDER TO GENERATE INCOME. PART V, LINE 4: THE SCHOOL'S ENDOWMENTS CONSIST OF INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES INCLUDING SCHOLARSHIPS AND FINANCIAL AID, FACULTY COMPENSATION, STUDENT PRIZES, PARENT EDUCATION, STUDENT EDUCATION, IMPROVEMENTS TO PROPERTY, PLANT AND EQUIPMENT, AS WELL AS VARIOUS OTHER ACTIVITIES OF THE SCHOOL. ITS ENDOWMENTS INCLUDE BOTH A DONOR-RESTRICTED ENDOWMENT FUND AND FUND DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS AN ENDOWMENT. AS REQUIRED BY SFAS NO. 117, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. THE SCHOOL IS ALSO THE BENEFICIARY OF AN ENDOWMENT THAT IS HELD BY THE EDWIN M. LAVINO PERPETUAL TRUST. PART X, LINE 2: THE SCHOOL ACCOUNTS FOR UNCERTAINTIES IN INCOME TAXES IN ACCORDANCE WITH AUTHORITATIVE GUIDANCE, WHICH PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. MANAGEMENT DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD AT JUNE 30, 2019 AND 2018. PART XI, LINE 2D - OTHER ADJUSTMENTS: SCHOLARSHIPS & FINANCIAL AID -6,665,962. GAIN ON BENEFICIAL INTEREST IN PERPETUAL TRUST 1,124,221. INVESTMENT FEES -97,520. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -278,971. RENTAL EXPENSES -23,077. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 278,971. RENTAL EXPENSE 23,077. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS & FINANCIAL AID 6,665,962. INVESTMENT FEES 97,520. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE ORGANIZATION'S NONDISCRIMATORY POLICY IS PUBLISHED IN LOCAL NEWSPAPERS. THE FOLLOWING IS ALSO PUBLISHED ON THE ACADEMY'S WEBSITE: AT GERMANTOWN ACADEMY, WE WELCOME STUDENTS, FACULTY, AND STAFF FROM ALL ETHNIC, CULTURAL, RACIAL, RELIGIOUS, AND SOCIOECONOMIC GROUPS, AND OF ALL SEXUAL ORIENTATIONS WHO RESPECT THE VALUES SET FORTH IN OUR SCHOOL'S GENERAL MISSION STATEMENT AND IN THIS DIVERSITY STATEMENT OF PURPOSE AND PRACTICE. WE HONOR OUR SCHOOL'S DIVERSITY BY RESPECTING THE VARIOUS CUSTOMS AND TRADITIONS OF ALL MEMBERS OF OUR COMMUNITY. SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVED BOOKS FROM THE STATE OF PENNSYLVANIA. EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 3 COLLEGE COUNSELING SERVICES TO HIGH SCHOOL STUDENTS EDUCATIONAL ASSISTANCE 43734 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 PROGRAM SERVICES EDUCATIONAL TRIP 12670 0 3 0 0 0 3 56404 0 56404 1 0 1 0 1 0 PART I, LINE 2: THE COLLEGE MONITORS GRANTS THROUGH ITS COUNSELING SERVICES TO HIGH SCHOOL STUDENTS. SCHEDULE F, PART IV, LINE 1: THE ORGANIZATION INVESTS IN PARTNERSHIP INTERESTS, THROUGH WHICH TRANSFERS TO FOREIGN CORPORATIONS ARE MADE. NO TRANSFERS DURING THE PARTNERSHIP'S REPORTING PERIOD EXCEEDED THE THRESHOLD FOR REPORTING. SCHEDULE F, PART IV, LINE 5: THE ORGANIZATION INVESTS IN PARTNERSHIP INTERESTS, THROUGH WHICH THE ORGANIZATION HOLDS INDIRECT INTERESTS IN FOREIGN PARTNERSHIPS. THE PERCENTAGE OWNERSHIP DURING THE PARTNERSHIP'S REPORTING PERIOD DID NOT EXCEED THE THRESHOLD FOR REPORTING. X X X X X 1 PENTERA 8650 COMMERCE PARK PLACE SUITE G INDIANAPOLIS IN 46268 INFORMATION SOLICITING FOR ESTATE PLANNING 0 0 15000 15000 15000 15000 PA A NIGHT OFF CAMPUS 241497 241497 2750 27937 1095 16160 241497 241497 2750 27937 1095 16160 47942 193555 1 STUDENT GRANTS FOR TUITION 343 6665962 BOOK REDUCTION TO TUITION PART I, LINE 2: ALL RECIPIENTS ARE INDIVIDUALS RECEIVING SCHOLARSHIPS. DETERMINATION OF STUDENTS' QUALIFICATIONS FOR THE AWARDS ARE MADE BY THE SCHOOL'S FINANCIAL AID COMMITTEE. SCHOLARSHIPS ARE AWARDED TO STUDENTS BASED ON FINANCIAL NEED. SCHOLARSHIP CANDIDATES ARE EVALUATED FOR FINANCIAL NEED BY AN INDEPENDENT SCHOLARSHIP SERVICE. SCHOLARSHIPS ARE PROVIDED AS A REDUCTION TO TUITION. X X 1 1 X X X 0 0 0 0 0 0 0 0 0 THOMAS P TAFT CHIEF OPERATING OFFICER 202085 0 0 0 0 0 17177 0 8471 0 227733 0 0 0 RICHARD SCHELLHAS HEAD OF SCHOOL 250163 0 50000 0 0 0 25514 0 8652 0 334329 0 0 0 SUSAN SZCZEPKOWSKI HEAD OF LOWER SCHOOL 122373 0 0 0 0 0 10402 0 81381 0 214156 0 0 0 JONAS JESWALD HEAD OF MIDDLE SCHOOL 126036 0 0 0 0 0 10713 0 41224 0 177973 0 0 0 JEFFREY THOMPSON DIRECTOR OF AQUATICS 135138 0 0 0 0 0 11487 0 72711 0 219336 0 0 0 CHRISTOPHER NELSON HEAD OF UPPER SCHOOL 140749 0 0 0 0 0 11964 0 8471 0 161184 0 0 0 AUDREY SCHNUR DIRECTOR, INSTITUTIONAL ADVANCEMENT 159688 0 0 0 0 0 13573 0 35991 0 209252 0 0 0 PART I, LINE 1A THE HEAD OF SCHOOL IS REQUIRED TO LIVE ON CAMPUS AND IS PROVIDED HOUSING AND CLEANING SERVICES AS PART OF HIS EMPLOYMENT AGREEMENT. THIS IS NOT INCLUDED IN TAXABLE INCOME AS IT IS EXCLUDED UNDER INTERNAL REVENUE CODE SECTION 119. THE HOUSING ALLOWANCE WAS ALSO NOT INCLUDED IN TAXABLE INCOME. A MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT 232245125 613609A48 2012-07-26 11600000 REFINANCE 2010 ISSUE AND FINANCE CONSTRUCTION PROJECTS 0 0 0 B MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT 232245125 2014-08-28 10000000 REFINANCE PRIOR BOND ISSUE 0 0 0 C MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT 232245125 2014-08-28 4000000 REFINANCE PRIOR BOND ISSUE 0 0 0 A 4135000 12248841 41840 209030 11997372 2012 1 0 1 1 B 2500000 10000000 10000000 2014 1 0 1 1 C 4000000 4000000 2014 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 0 0 0 0 1 B 0 0 1 0 1 0 0 0 1 C 0 0 1 0 1 0 0 0 1 A 1 B 1 C 1 SCHEDULE K SUPPLENTAL INFORMATION BOND ISSUE A: THE DIFFERENCE BETWEEN THE ISSUE PRICE OF $11,600,000 AND THE GROSS PROCEEDS OF $12,248,841 IS PREMIUM ON THE BOND ISSUE. PER IRS INSTRUCTIONS NAMES ARE NOT PER IRS INSTRUCTIONS, INTERESTED PERSONS ARE NOT INDIVIDUALLY NAMED. 189270 TUITION REMISSION TUITION ASSISTANCE X 169373 PURCHASE PRICE X 5 135073 NYSE 0 0 1 0 PART I, COLUMN (B): THE NUMBER IN COLUMN B REPRESENTS THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE MAY MAKE DECISIONS WHEN THE BOARD IS NOT IN SESSION WHEN PREVIOUSLY AUTHORIZED BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 2 ALISON FELDMAN, BERTON E. KORMAN, BRADLEY J. KORMAN, AND JOHN P. KORMAN - FAMILY RELATIONSHIP NANCY A. WOLFSON AND JUDY A. FELGOISE - FAMILY RELATIONSHIP JOHN P. KORMAN AND BERTON E. KORMAN - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY A CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM WITH A STRONG BACKGROUND IN ACCOUNTING AND TAX MATTERS FOR CLIENTS OF THIS TYPE. INFORMATION IS PROVIDED TO THIS FIRM BY OUR ORGANIZATION AND, UPON COMPLETION OF THE FORM BY OUR ACCOUNTANTS, THE FORM IS REVIEWED BY OUR ORGANIZATION FOR ACCURACY AND COMPLETENESS. AT THE CONCLUSION OF OUR REVIEW THE FORM IS FILED WITH THE INTERNAL REVENUE SERVICE AND STATE OF PENNSYLVANIA. A COPY OF THE FORM 990 IS FORWARDED TO EACH TRUSTEE PRIOR TO BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C NO MEMBER OF THE BOARD OF TRUSTEES NOR ANY MEMBER OF A BOARD COMMITTEE SHALL RECEIVE REMUNERATION DIRECTLY OR INDIRECTLY AS A RESULT OF BUSINESS DECISIONS OR CONTRACTS WHICH ARE AWARDED BY THE BOARD UNLESS A DETERMINATION HAS BEEN MADE BY THE BOARD OR THE EXECUTIVE COMMITTEE OF THE BOARD THAT IT IS IN THE BEST INTEREST OF THE ACADEMY TO ALLOW SUCH AN ARRANGEMENT. IN SUCH CASES THE CONFLICT OF INTEREST SHALL BE CLEARLY ACKNOWLEDGED AND THE AFFECTED BOARD OR COMMITTEE MEMBER SHALL ABSTAIN FROM PARTICIPATION IN THE DECISION TO AWARD SUCH CONTRACT OR TO TAKE ACTION RESULTING IN THE AWARD OF SUCH CONTRACT. IT SHALL BE THE RESPONSIBILITY OF THE MEMBERS OF THE BOARD OF TRUSTEES AND OF THE COMMITTEES OF THE BOARD TO CALL TO THE PRESIDENT OF THE BOARD OF TRUSTEES OR THE CHAIRMAN OF THE BOARD COMMITTEE INVOLVED, ANY SITUATION WHERE A CONFLICT OF INTEREST OR POSSIBLE CONFLICT OF INTEREST MAY BE FOUND. BOARD MEMBERS SIGN A CONFLICT OF INTEREST STATEMENT ANNUALLY WHICH IS MONITORED BY THE HEAD OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES AND THE FINANCE COMMITTEE CAREFULLY EXAMINE THE COMPENSATION PROPOSAL FOR THE NEXT FISCAL YEAR DURING THE COURSE OF THE PREVIOUS FALL AND APPROVE IT DURING THE JANUARY MEETING. THE SALARIES OF ALL FACULTY AND ADMINISTRATORS INCLUDING THE HEAD OF SCHOOL ARE BENCHMARKED BASED ON POOLED SURVEY DATA FROM 56 COMPARABLE SCHOOLS NATIONWIDE (DAY SCHOOLS WITH OVER 750 STUDENTS). COMPENSATION IS BASED ON THE 75TH PERCENTILE OF THE COMPARABLE SCHOOLS. ALL OTHER STAFF MEMBERS ARE PAID BASED ON DATA COLLECTED THROUGH "SALARY.COM." FOR EACH POSITION, BASED UPON EXPERIENCE, COMPENSATION IS SET BETWEEN THE 25TH AND 75TH PERCENTILE. THIS POLICY ENSURES FAIR COMPENSATION IS DETERMINED INDEPENDENTLY AND WITHOUT UNDUE INFLUENCE OF OUR ORGANIZATION. COMPENSATION RELATED INFORMATION IS RECORDED IN BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: GAIN ON BENEFICIAL INTEREST IN PERPETUAL TRUST 1,124,221. PERPETUAL TRUST (1) INVESTMENTS PA N/A T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1