2020-07-13T17:57:06-05:00 2019-06-30 420714325 RSM US LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2018-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3369175472 601 S CHURCH ST WINSTONSALEM NC 27101 KEN BUCHANAN VP FINANCE & ADMIN 3369175472 2020-07-13 1 YONG ZHANG CPA P01249785 7033366400 66.98.98.6 2020-07-13 00:31:34 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 67AF02E10978DF50186A66F4465B872A534856F3 2018 2020-09-23 17:36:50Z DR SUSAN HENKING 601 S CHURCH ST WINSTONSALEM NC 27101 62706676 0 X WWW.SALEM.EDU, WWW.SALEMACADEMY.COM X 1772 NC SALEM COLLEGE IS AN INDEPENDENT COLLEGE COMMITTED TO THE LIBERAL ARTS AND QUALITY PROFESSIONAL PREPARATION. FOUNDED BY THE MORAVIAN CHURCH IN 1772 AS A SCHOOL FOR GIRLS, SALEM STRIVES TO SET ITS SIGNATURE UPON ITS STUDENTS BY ENCOURAGING THEM TO RECOGNIZE AND STRENGTHEN THEIR HUMAN FACULTIES AND THEIR CAPACITIES FOR SERVICE, PROFESSIONAL LIFE, AND LEADERSHIP. IN LIGHT OF SUCH EVIDENCE THAT SUCH POWERS FLOURISH WHEN WOMEN LIVE AND LEARN WITHIN A COMMUNITY DEDICATED TO THEIR EDUCATION, SALEM AFFIRMS ITS COMMITMENT TO YOUNG WOMEN IN A RESIDENTIAL SETTING. AS A RESULT OF THE HISTORICAL EVOLUTION OF ITS MISSION, THE COLLEGE EDUCATES BOTH WOMEN AND MEN IN THE COMMUNITY THROUGH ITS CONTINUING STUDIES PROGRAM AND GRADUATE PROGRAMS IN EDUCATION. 28 28 784 276 50549 0 5576083 12827591 31154145 25762792 3143029 2270618 620686 1021338 40493943 41882339 15809350 13076655 0 0 14621248 11490721 0 0 1037325 12405189 12719020 42835787 37286396 -2341844 4595943 101972275 99050637 30629760 21434810 71342515 77615827 X SALEM COLLEGE, A LIBERAL ARTS COLLEGE FOR WOMEN, VALUES ITS STUDENTS AS INDIVIDUALS, DEVELOPS THEIR UNIQUE POTENTIAL, AND PREPARES THEM TO CHANGE THE WORLD.NOW IN ITS THIRD CENTURY OF SUSTAINING A COMMUNITY IN WHICH GIRLS LEARN BEST, SALEM ACADEMY REMAINS DEDICATED TO FOSTERING THE INTELLECTUAL, SPIRITUAL, SOCIAL, AND PHYSICAL GROWTH OF YOUNG WOMEN.FOUNDED IN 1772 BY THE MORAVIAN CHURCH, SALEM ACADEMY FLOURISHES TODAY AS AN INDEPENDENT, COLLEGE-PREPARATORY SCHOOL THAT CELEBRATES ITS DIVERSITY AND AFFIRMS EACH STUDENT'S UNIQUENESS.AS ADVOCATES FOR WOMEN IN LEADERSHIP ROLES, WE RECOGNIZE OUR PLACE IN A GLOBAL SOCIETY AND PERSIST IN OUR COMMITMENT TO A LIFETIME OF LEARNING. WE PLEDGE OURSELVES TO RETAIN AND NURTURE THOSE VALUES WHICH ENCOURAGE EACH STUDENT TO TAKE RISKS, SHOW INTEGRITY, AND DISCOVER HER PASSION AS SHE SETS OUT ON HER OWN JOURNEY. 0 0 29254969 13076655 26649251 SALEM ACADEMY & COLLEGE PROVIDES A COLLEGE EDUCATION TO APPROXIMATELY 468 FULL-TIME STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 121 FULL-TIME STUDENTS (GRADES 9-12) AND PROVIDES CONTINUING EDUCATION TO APPROXIMATELY 284 PART-TIME STUDENTS THROUGHOUT THE COMMUNITY. THE COLLEGE ALSO PROVIDES ADEQUATE FOOD SERVICES AND HOUSING TO APPROXIMATELY 385 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM COLLEGE AND 65 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM ACADEMY. 29254969 1 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 1172 0 1 784 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 28 28 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 1 1 1 0 NC X X SCOTT MORIN 3367212600 601 S CHURCH ST WINSTON SALEM NC 27101 X CAMILLE DISHER MCDOWELL TRUSTEE 2.00 X 0 0 0 D JOEFF WILLIAMS TREASURER 2.00 X X 0 0 0 ELIZABETH DENTON BAIRD TRUSTEE 2.00 X 0 0 0 ELLEN TODD DREW TRUSTEE 2.00 X 0 0 0 JULIA CARDWELL ARCHER TRUSTEE 2.00 X 0 0 0 L DUANE DAVIS TRUSTEE 2.00 X 0 0 0 LOSSIE FREEMAN TRUSTEE 2.00 X 0 0 0 LUCY ROSE VICE CHAIR 15.00 X X 0 0 0 MARTHA MANNING TRUSTEE 2.00 X 0 0 0 MARY LOUISE FORD STOTT TRUSTEE 2.00 X 0 0 0 MCDARA P FOLAN III CHAIR 20.00 X X 0 0 0 MIMI ALEDO-SANDOVAL SECRETARY 2.00 X X 0 0 0 PATRICE BLACK MITCHELL TRUSTEE 2.00 X 0 0 0 ROBIN RHODES HOWELL TRUSTEE 2.00 X 0 0 0 STRATFORD NEWITT KIGER TRUSTEE 2.00 X 0 0 0 SUSAN LUNDEEN SMITH TRUSTEE 2.00 X 0 0 0 SYDNEY TIMMONS TAYLOR TRUSTEE 2.00 X 0 0 0 TERRIE ALLEN DAVIS TRUSTEE 2.00 X 0 0 0 BETH DIXON BALDWIN TRUSTEE 2.00 X 0 0 0 SARAH BERGA TRUSTEE 2.00 X 0 0 0 DAVID GUTHRIE TRUSTEE 2.00 X 0 0 0 KATHERINE HOLLAND-ORTIZ TRUSTEE 2.00 X 0 0 0 INA BLACKMORE KAMENZ TRUSTEE 2.00 X 0 0 0 VICTORIA LASLEY TRUSTEE 2.00 X 0 0 0 BRANDY NELSON TRUSTEE 2.00 X 0 0 0 STEVE STREWSBURG TRUSTEE 2.00 X 0 0 0 SANDRA DORAN PRESIDENT 40.00 X 133333 0 0 JENNIFER LYNCH VP INSTITUTIONAL ADVANCEMENT 40.00 X 66895 0 7443 KATHY M BARNES AVP INSTITUTIONAL ADVANCEMENT 40.00 X 87102 0 19178 ROSEMARY LOFTUS WHEELER EXEC SECRETARY TO PRESIDENT 40.00 X 42512 0 10496 JEREMY SHREVE VP FINANCE, ADM 40.00 X 35150 0 1314 ANTHONY SLATER VP FINANCE, ADM 40.00 X 90102 0 11485 RONALD DOWDY VP FINANCE, ADM 40.00 X 28333 0 0 CAROL KILLEBREW MEYERS HEAD OF ACADEMY 40.00 X 70192 0 5188 SUSAN CALOVINI DEAN OF STUDENTS 40.00 X 126048 0 11273 LORRAINE STERRITT PRESIDENT UNTIL 5/2018 40.00 X 117931 0 3063 797598 0 69440 2 1 0 0 ARAMARK SERVICES INC PO BOX 906023 CHARLOTTE NC 28290 DINING SERVICES 2470154 SUNSTATES SECURITY LLC PO BOX 896583 CHARLOTTE NC 28289 CAMPUS SECURITY 431900 THE BUDD GROUP 2325 S STRATFORD ROAD WINSTON SALEM NC 27103 GROUNDS MAINTENANCE 286478 BRET STERN PRODUCTIONS 18 LEONARD STREET NORWALK CT 06850 MARKETING/VIDEO PRODUCTION 263228 RESOURCE PAINTING 3200 OLD HWY 421 WEST YADKINVILLE NC 27055 PAINTING 213754 12 8625 214631 12604335 874593 12827591 TUITION AND FEES 611710 19825856 19825856 FOOD SERVICES 611710 3035832 3035832 HOUSING REVENUE 611710 2891145 2891145 BOOK STORE REVENUE 611710 9959 9959 25762792 809117 809117 114951 40612 74339 74339 74339 16609638 5630409 15078156 5700390 1531482 -69981 1461501 1461501 15170 8625 5179 9991 9991 GOVERNOR'S SCHOOL 611710 205343 205343 COMMUNITY SERVICE 611710 58905 58905 SUMMER SPORTS CAMP 711210 50549 50549 622211 622211 937008 41882339 26649251 50549 2354948 13076655 13076655 580942 487127 93815 9296973 7017851 1803551 475571 873157 576000 250117 47040 739649 542579 157898 39172 478665 68665 358000 52000 76415 76415 175942 175942 92447 92447 1943491 305754 1603743 33994 462748 438316 22467 1965 627657 196181 399299 32177 317609 125576 154713 37320 930175 817452 107667 5056 358854 78445 272599 7810 777633 777633 1638744 1440152 189684 8908 322525 322525 AUXILIARY ENTERPRISE 2180528 2180528 REPAIRS & MAINTENANCE 790573 694767 91508 4298 COMMUNICATIONS 211015 185443 24425 1147 1333999 732972 403975 197052 37286396 29254969 6994102 1037325 X 17236 2002872 3887229 0 1903747 1852072 543587 563699 141341 113795 69103492 43751772 31627619 25351720 54427235 59842615 9424281 9323864 101972275 99050637 2370405 1801053 1151824 858561 20131434 18342677 186800 179420 6509698 0 279599 253099 30629760 21434810 X -256647 8104335 19159677 69511492 52439485 0 71342515 77615827 101972275 99050637 X 4595943 1867530 60207 -250368 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 0.00 1 0 0 1 1 20.00 2200 1 0 262239 X X X 0 0 1 X 60673349 612646 4115682 5543947 59857730 57875976 2291557 3849252 3343436 60673349 55833328 1142201 3895935 2995488 57875976 61737106 1100626 458856 7463260 55833328 62912119 876152 1024959 3076124 61737106 0.00450 0.73300 0.26250 0 0 3441428 3441428 49383403 32568994 16814409 15764476 11182778 4581698 514185 514185 25351720 SPLIT INTEREST AGREEMENTS 937945 CASH SURRENDER VALUE OF LIFE INSURANCE 950747 INTEREST IN OIL WELL 50389 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 7358259 ASSETS HELD FOR SALE 26524 9323864 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 253099 253099 X 30376190 1867530 -13327023 -11459493 41835683 92447 -45791 46656 41882339 24163085 45791 45791 24117294 92447 13076655 13169102 37286396 PART II, LINE 9: SALEM'S HISTORIC CONSERVATION EASEMENT IS FOR A HISTORIC STRUCTURE ON CAMPUS THAT IS USED IN SALEM'S DAILY OPERATIONS. REVENUES AND EXPENSES ARE REPORTED IN THE NORMAL OPERATIONS OF THE INSTITUTION AND THE STRUCTURE IS RECORDED WITH OTHER PROPERTY ON THE BALANCE SHEET. PART III, LINE 4: SALEM DOES NOT RECOGNIZE REVENUE FROM THE RECEIPT OF HISTORICAL TREASURES OR WORKS OF ART, BUT MAKES THEM AVAILABLE MAINLY FOR SCHOLARLY RESEARCH AND EXHIBITION IN VARIOUS CAMPUS BUILDINGS. PART IV, LINE 2B: FUND BALANCES OF STUDENT ACTIVITY ORGANIZATIONS AND HEALTH INSURANCE. PART V, LINE 4: SALEM'S ENDOWMENT FUNDS ARE USED TO FUND SCHOLARSHIPS AND FOR THE OPERATING EXPENSES OF SALEM ACADEMY AND COLLEGE. PART X, LINE 2: MANAGEMENT EVALUATED SALEM'S TAX POSITIONS AND CONCLUDED THAT SALEM HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THE INCOME TAXES TOPIC OF THE FASB ASC. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF TRUSTS AND SPLIT INTEREST AGREEMENTS -95,209. GAIN ON INTEREST RATE SWAP 34,841. RECLASS GRANTS AND ALLOCATIONS TO EXPENSE -13,076,655. IMPAIRMENT OF PROPERTY -190,000. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE -40,612. RECLASS FUNDRAISING EXPENSES -5,179. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE 40,612. RECLASS FUNDRAISING EXPENSES 5,179. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 13,076,655. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 SEE PART II SCHEDULE E, PART I, LINE 6 SALEM STUDENTS RECEIVE A VARIETY OF FEDERAL AND STATE GRANTS AND LOANS, INCLUDING FEDERAL PELL GRANTS, FEDERAL DIRECT STUDENT LOANS, NC NEED-BASED SCHOLARSHIPS, AND NC GOLDEN LEAF FOUNDATION SCHOLARSHIPS. SCHEDULE E, LINE 3 - EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION: THE NONDISCRIMINATORY POLICY IS INCLUDED ON MARKETING MATERIALS AND EMPLOYMENT ADVERTISEMENTS FOR THE SCHOOL. SCHOLARSHIP LUNCH 6250 6250 4354 GOLF TOURNAMENT 17545 2375 15170 825 23795 8625 15170 5179 5179 9991 1 SCHOLARSHIPS 708 13076655 0 PART I, LINE 2: SALEM GRANTS FUNDS IN THE WAY OF SCHOLARSHIPS TO QUALIFIED STUDENTS IN ITS ACADEMY AND COLLEGE. SALEM MAINTAINS RECORDS ON ALL STUDENTS RECEIVING FINANCIAL AID IN THE FORM OF SALEM GRANTS OR FROM OTHER SOURCES. SALEM COLLEGE COMPLIES WITH ALL APPLICABLE FEDERAL RULES AS IT RELATES TO COLLEGE FINANCIAL AID. SCHEDULE I, PART III, COLUMN B: THE VAST MAJORITY OF SALEM'S COLLEGE STUDENTS RECEIVE SOME FORM OF SCHOLARSHIP FROM THE COLLEGE. SALEM PROVIDES THIS ASSISTANCE THROUGH ENDOWED SCHOLARSHIPS AND INSTITUTIONAL REMISSION (DISCOUNT). SALEM COMPLIES WITH ALL FEDERAL AND STATE REGULATION REGARDING THE REWARDING OF STUDENT FINANCIAL AID AND FILES THE REQUISITE INFORMATION WITH FEDERAL AND STATE AGENCIES AS IT PERTAINS TO ITS STUDENTS. 0 0 0 0 0 0 0 0 0 LORRAINE STERRITT PRESIDENT UNTIL 5/2018 117866 0 0 0 65 0 0 0 3063 0 120994 0 0 0 FORM 990 PART VII AND SCHEDULE J PART II PRESIDENT SANDRA DORAN DID NOT RECEIVE W2 OR 1099 REPORTABLE COMPENSATION FROM SALEM ACADEMY & COLLEGE DURING 2018. INSTEAD, THE ORGANIZATION PAID SERVICE FEES TO A PROFESSIONAL AGENCY UNTIL SEPTEMBER 2019, AT WHICH POINT THE PRESIDENT WAS PLACED ON SALEM'S PAYROLL. FEES PAID TO THE PROFFESSIONAL AGENCY FOR THE SERVICES OF THE PRESIDENT IN 2018 AMOUNTED TO $133,333. LORRAINE STERRITT'S TERM AS PRESIDENT ENDED DURING THE PREVIOUS FISCAL YEAR AND, AS SUCH, HER COMPENSATION WAS DISCONTINUED ON 6/30/18. IN THE INTEREST OF FULL TRANSPARENCY, THE ORGANIZATION IS REPORTING HER 2018 CALENDAR YEAR COMPENSATION ON FORM 990 PART VII. A NC CAPITAL FACILITIES FINANCE AGENCY 2005-01-01 15000000 FACILITIES RENOVATION PROJECTS 0 0 0 B NC CAPITAL FACILITIES FINANCE AGENCY 2013-01-01 12000000 CONSTRUCTION/RENOVATION 0 0 0 A 5500000 15000000 165061 14834939 2008 0 0 1 1 B 2968262 12000000 162642 11837358 2014 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 A 0 0 0 0 1 1 BB&T 10.000000000000 0 0 0 0 1 B 0 0 0 0 1 0 0 0 1 A 1 B 1 X 46 874593 FMV 0 0 1 0 PART I, COLUMN (B): THE NUMBER IN COLUMN B REFLECTS THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF THE FULL 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. THE APPROVED DRAFT IS POSTED TO THE BOARD'S SECURE PORTAL, WITH NAMES AND ADDRESSES REDACTED FROM SCHEDULE B TO REDUCE RISK OF DONOR DISCLOSURE. THE BOARD IS NOTIFIED THAT THE RETURN HAS BEEN POSTED AND PROVIDED A TIME FRAME IN WHICH COMMENTS OR QUESTIONS SHOULD BE MADE. THE RETURN IS FILED AFTER THAT DATE. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR, THE BOARD OF TRUSTEES AND EXECUTIVE TEAM OF SALEM ARE ASKED TO REVIEW THE CONFLICT OF INTEREST POLICY, REVIEW SALEM'S LIST OF MAJOR VENDORS AND PROVIDE A SIGNED STATEMENT STATING ANY RELATIONSHIPS WITH THESE VENDORS AND ANY OTHER ITEMS THAT MAY HAVE THE POTENTIAL TO BE A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR THE PRESIDENT IS DETERMINED BY THE BOARD OF TRUSTEES. THE PRESIDENT IS EVALUATED ANNUALLY AND COMPENSATION IS REVIEWED BY THE EXECUTIVE COMMITTEE AND THE FULL BOARD. THE PRESIDENT REVIEWS THE COMPENSATION OF OTHER EXECUTIVE TEAM MEMBERS AND REPORTS TO THE BOARD WHO REVIEWS THESE DECISIONS. SALEM MAKES USE OF SURVEY DATA PROVIDED BY NORTH CAROLINA INDEPENDENT COLLEGES AND UNIVERSITIES, THE COUNCIL OF INDEPENDENT COLLEGES AND OTHER SOURCES TO DETERMINE THE APPROPRIATE LEVEL OF COMPENSATION FOR OFFICERS/KEY EMPLOYEES AND WOULD ENGAGE ADDITIONAL OUTSIDE CONSULTANTS IF NECESSARY. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FROM THE CFO'S OFFICE FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990 PART VII SANDRA DORAN, PRESIDENT, WAS HIRED THROUGH AN AGENCY AS THE NEW PRESIDENT OF SALEM ACADEMY & COLLEGE. PRESIDENT DORAN'S COMPENSATION WAS PAID TO THE AGENCY THROUGH THE END OF THE 2018 CALENDAR YEAR AND WAS HIRED DIRECTLY TO THE COLLEGE IN SUBSEQUENT MONTHS. FORM 990 PART X LINES 1 AND 2 THE PRIOR YEAR BEGINNING BALANCES IN LINES 1 AND 2 WERE RECLASSIFIED TO LINE 1 FOR THE CURRENT YEAR END TO BETTER CATEGORIZE THE CASH INSTRUMENT. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -95,209. GAIN ON INTEREST RATE SWAP 34,841. IMPAIRMENT OF PROPERTY -190,000. FORM 990, PART XII, LINE 2C THE ORGANIZATION'S OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED SINCE THE PRIOR YEAR. FORM 990, PART I, LINE 6 VOLUNTEERS CONSIST OF SCHOOL ALUMNI, PARENTS, BUSINESS COMMUNITY MEMBERS, AS WELL AS TEMPORARY AND PART-TIME ASSISTANTS WITH ATHLETIC AND PERFORMING ARTS PROGRAMS. PART VII, SECTION A, COLUMN F: THE ORGANIZATION, IN A FULL TRANSPARENCY POSTURE TO REPORTING, IS REPORTING ALL BENEFITS IN FULL IN COLUMN F, PART VII AND NOT APPLYING THE $10,000 PER ITEM EXCEPTION FOR CERTAIN BENEFITS. SALEM RECREATIONAL FIELDS LLC 601 SOUTH CHURCH STREET WINSTON SALEM NC 27101 562272294 RECREATION FIELD NC 0 737006 SALEM ACADEMY AND COLLEGE