2019-05-01T14:08:29-05:00 2018-06-30 135565207 KPMG LLP 210 Park Ave Suite 2650 Oklahoma City OK 73102 990 2017-07-01 850129165 Albuquerque Academy ALBU 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Andrew T Watson Head of School 5058283200 2019-05-01 1 Lori A McLaughlin P01231707 4052396411 2019-05-01 4.14.112.142 2019-05-01 14:06:54 MD P B899B7F6BC88544A198CA7C3CBF0FC74CA7C41E1 B899B7F6BC88544A198CA7C3CBF0FC74CA7C41E1 2017 2019-02-21 02:37:17Z Andrew T Watson 6400 Wyoming Blvd NE Albuquerque NM 87109 36178263 0 X www.aa.edu X 1955 NM Albuquerque Academy is a non-denominational, coeducational, independent day school. 24 24 897 575 25485 0 2956991 2369776 24090827 24578276 5786939 4666261 54456 336042 32889213 31950355 2318 11690 0 0 22981342 22495221 0 0 807805 11256962 11453350 34240622 33960261 -1351409 -2009906 121833316 119460055 48048246 47718257 73785070 71741798 X See Schedule O. 0 0 21693844 11690 20539554 Founded in 1955, Albuquerque Academy is a nationally-recognized independent, coeducational, college preparatory day school serving students in grades six through twelve. With a broad and excellent program, a spirit of public purpose, and a desire to serve a diverse set of students of talent and character, the school hopes to better its students, and then the wider community, through its efforts. See Schedule O. 2125263 0 2325292 Albuquerque Academy offers a six week summer program that provided educational opportunities to 1,889 students during the fiscal year ended June 30, 2018. See Schedule O. 1632054 0 1295949 Albuquerque Academy has partnered with Sage Dining Services to provide food service to the on-campus dining halls. Sage focuses on safety, quality service, community, nutrition, education, sustainability, and delicious food made from scratch using seasonal and locally-sourced ingredients when available. See Schedule O. 419519 0 582595 Charger Aquatics ("CAQ")CAQ is a comprehensive, year-round aquatics program that provides swimmers in the greater Albuquerque area with opportunities to learn, participate, and compete in the school's state-of-the-art aquatics facility located in the nationally acclaimed Natatorium and is offered as part of the school's ongoing commitment to provide service and outreach to the community at large. CAQ offers membership in USA-sanctioned clubs, including USA Swimming and US Masters Swimming, along with a selection of non-member aquatics classes such as swim lessons and lifeguard certification. Total enrollment for all programs was 245 for the fiscal year ended June 30, 2018.The financial results directly below represent all other program services expenses and revenues: 419519 0 582595 25870680 1 1 0 0 0 0 0 1 0 1 1 1 0 1 1 1 0 1 1 0 0 0 0 0 1 0 0 1 0 1 1 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 1 1 0 0 0 1 54 0 1 897 1 1 1 0 0 0 0 1 1 0 0 0 0 X 24 24 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NM X Sandy Timmons 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Adam Honegger Chair 5.00 0.00 X 0 0 0 Thomas Smidt III Vice Chair 2.00 0.00 X 0 0 0 Patrick Apodaca Secretary 2.00 0.00 X 0 0 0 Ron Moya Assistant Secretary 2.00 0.00 X 0 0 0 Chris Jillson Assistant Treasurer 2.00 0.00 X 0 0 0 Chaouki Abdallah General Trustee 2.00 0.00 X 0 0 0 Arthur Chu General Trustee 2.00 0.00 X 0 0 0 John David General Trustee 2.00 0.00 X 0 0 0 Pam Garrett Charter Trustee 2.00 0.00 X 0 0 0 Ian McKinnon Charter Trustee 2.00 0.00 X 0 0 0 Diane Ogawa General Trustee 2.00 0.00 X 0 0 0 Chamiza Pacheco De Alas General Trustee 2.00 0.00 X 0 0 0 Erika Rimson General Trustee 2.00 0.00 X 0 0 0 Valerie Romero-Leggott General Trustee 2.00 0.00 X 0 0 0 Jesus Salazar General Trustee 2.00 0.00 X 0 0 0 Leah Blaugrund Sandman General Trustee 2.00 0.00 X 0 0 0 Ernest Schmider Charter Trustee 2.00 0.00 X 0 0 0 Christina Sheehan General Trustee 2.00 0.00 X 0 0 0 Marcella Stewart General Trustee 2.00 0.00 X 0 0 0 Randy Talbot General Trustee 2.00 0.00 X 0 0 0 Judy Talcott General Trustee 2.00 0.00 X 0 0 0 Chandler Todd General Trustee 2.00 0.00 X 0 0 0 Eric Weinstein General Trustee 2.00 0.00 X 0 0 0 Hope Mead Wynn Charter Trustee 2.00 0.00 X 0 0 0 Andrew Watson Head of School 40.00 0.00 X 363965 0 38339 Gary Gordon Treasurer 40.00 0.00 X 222816 0 35757 Nancy Parker Business Manager 40.00 0.00 X 131865 0 17024 Pamela Scanlon Director of Finance 40.00 0.00 X 130339 0 24450 Stephanie Levy-Lipkowitz Assistant Head of School 40.00 0.00 X 126780 0 52023 Jeffrey Morgan Campaign Initiatives and Major Gifts Director 40.00 0.00 X 122338 0 24660 Taryn Bachis Athletics Director 40.00 0.00 X 118039 0 14140 1216142 0 206393 11 0 1 0 Sage Dining Services Inc 1402 York Rd Lutherville MD 21093 Dining and food services 684209 First American Equipment Finance 1801 W Olympic Blvd Pasadena CA 91199 Equipment and computer leasing 272382 KPMG LLP PO Box 120001 Dallas TX 75312 Audit and tax services 122350 Labatt New Mexico LLC PO BOX 27730 Albuquerque NM 87125 Food and food supplies 117292 Southwest Airlines 14800 Frye Rd Fort Worth TX 76155 Air travel services 116747 6 X 80677 29930 1186527 1072642 144323 2369776 Tuition and fees 611110 26149288 26149288 0 Summer and outreach programs 611110 2325292 2325292 0 Cafeteria and food service 611110 1376725 1376725 0 Tuition Remission 611110 -1472040 -1472040 0 Financial Assistance 611110 -4218470 -4218470 0 417481 417481 24578276 1731214 25485 1705729 6716092 3781045 2935047 2935047 2935047 8362 29930 34096 -25734 -25734 2138 93 2045 2045 577788 412674 165114 165114 Federal trade land income 900099 114621 0 114621 Purchase card rebate 900099 70103 0 70103 Miscellaneous income 900099 9893 0 9893 194617 31950355 24743390 25485 4811704 11690 11690 661890 281334 320270 60286 59392 59392 17194598 14722548 2072941 399109 898240 767355 106637 24248 2400818 1908235 442424 50159 1280283 1082470 167329 30484 120540 120540 89066 89066 599935 599935 989514 654963 333148 1403 184328 42092 95167 47069 1271362 968921 257170 45271 431623 340574 69084 21965 1110739 919953 189954 832 550600 449696 65286 35618 316067 115816 114651 85600 1901106 1901106 1909431 1676331 231600 1500 330891 247278 79352 4261 Food service 1165365 1165365 0 0 Student and instruction 392975 391398 1577 0 Summer, aquatics, outre 77422 65269 12153 0 Bad debt expense 12386 0 12386 33960261 25870680 7281776 807805 20198 28654 10916367 11398572 2669682 961749 304869 379538 0 0 0 0 8657 12553 182072 167584 571063 584136 83292428 57835297 27028287 25457131 14989039 15557870 28021304 26662989 0 0 0 0 37121778 38249279 121833316 119460055 2831735 3474062 0 0 2096766 2096862 36915270 36671817 0 0 0 0 5659143 5001694 0 0 545332 473822 48048246 47718257 X 26458474 24759910 29219168 28767681 18107428 18214207 73785070 71741798 121833316 119460055 -2009906 -33366 0 X X 0 1 X 1 0 X 0 339819 X X 0 78679817 1622133 5649593 0 2638955 3370420 79942168 77223932 414381 9491664 0 4550000 3910160 78679817 85172516 1684299 1051803 0 7751942 2922744 77233932 90623882 111949 1835410 0 5850000 1548725 85172516 94053009 1211504 10554779 0 5979122 9216288 90623882 0.47000 0.23000 0.30000 1 1 1 353024 353024 65323765 42722862 22600903 0 13204123 11509391 1694732 4411516 3603044 808472 25457131 Partnership investments 8418382 F Sandoval county real estate 8485000 F 165,998 shares of First Eagle Global Fund Class I 9730806 F Dona Ana county real estate 28801 F 26662989 Albuquerque Academy for Boys Trust #1 34327721 Albuquerque Academy for Boys Trust #2 2866882 Split-interest agreement 689672 Cost of issuance, net 306872 Interest rate swap 58132 38249279 Annuity and split-interest obligations 473822 473822 X Part III, Line 4: The Academy maintains a small art collection consisting of items donated to the school. Included in this collection is a series of photogravuers, a flemish tapestry, and several oil paintings (including portraits of Mr. & Mrs. Simms, major donors to the Academy). The art collection is currently displayed in various venues across campus for the edification of our students as well as for the enjoyment of vistors of our campus. It is anticipated that items within the collection will grow in value over time and may eventually be sold to support various programs and initiatives benefiting the Academy's students. During the fiscal year ended June 30, 2018, the Academy did not receive any new donations of art, historical treasures or similar assets that were added to its existing art collection. Part V, Line 4: The Academy's endowment, consisting of permanently restricted, temporarily restricted, and quasi-endowment funds, provides vital financial support for the overall mission of the Academy. The endowment sustains opportunities of remarkable scope, including experiential and outdoor education, deep academic excellence, global exchanges and languages and sustainability initiatives closely attuned to a changing world. These programs make the student experience here one of the broadest in independent education. The endowment also supports our admission process and generous financial assistance program. These programs are committed to providing access to the Academy for students of talent and character from throughout the city, region, and (at times) country as they seek an enriched and meaningful educational experience. The Academy's endowment supports our outreach programs to include: Community Academy lectures; Charger Aquatics; Summer Session; and artistic, athletic, and volunteer events on campus all exemplify our community outreach and the Academy's belief in life-long learning. Part X, Line 2: The Academy is a not-for-profit organization and qualifies as an organization described in Section 501(c)(3) of the Internal Revenue Code (IRC). As such, the Academy is exempt from federal income taxes under Section 501(a) except on net income derived from unrelated business activities. For the year ended June 30, 2018, the Academy has determined that no material income taxes are due for its activities. Accordingly, no provision for income taxes has been recorded in the accompanying financial statements. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the accompanying financial statements. The Academy files informational tax returns. In the normal course of business, the Academy is subject to examination by federal, state, local, and foreign jurisdictions, where applicable. As of June 30, 2018, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations for the Academy are from the year ended June 30, 2014 and forward. The Academy would recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. There was no such interest or penalties recorded for the year ended June 30, 2018. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 Schedule E, Part I, Line 3 The Academy enrolled 1,158 students during the fiscal year ended June 30, 2018. Female students accounted for 51% of total students enrolled, and male students accounted for 49% of total students enrolled. Approximately 52% of total students enrolled represented students of color. Students of color for the fiscal year ended June 30, 2018 were represented as follows: 2% African American, 12% Asian, 14% Hispanic, less than 1% Middle Eastern, less than 1% Native American, 23% Multi-ethnic and 48% Caucasian. The Academy publishes its racially nondiscriminatory policy in the following materials: 1. Admission brochures 2. Admission/financial assistance forms 3. Summer session catalogue 4. Admissions page of the Academy website 5. Employment page of the Academy website 6. Standing orders of the Albuquerque Academy Board of Trustees and its standing committees. Golf Tournament 38292 29930 8362 600 3099 17146 5000 0 8251 38292 29930 8362 600 3099 17146 5000 8251 34096 -25734 1 School Year Abroad 120 Water Street North Andover MA 01845 042589375 501(c)(3) 11690 Financial assistance determined by School Year Abroad for Academy students studying abroad in their junior year. 1 Schedule I - Part I - Line 2 Academy students, in good standing, in their sophmore year may apply for a study abroad program for their junior year. Students applying for a study abroad program do so through School Year Abroad (SYA), a 501(c)(3), unaffiliated to the Academy. SYA has its own application process and facilitates placing students for a year abroad. Students applying through SYA may apply for financial assistance. SYA uses School and Student Services (SSS) for students applying for financial assistance. SSS is utilized by independent schools nation wide in assisting in the determination of financial assistance awards. In the event that a student qualifies for assistance, the Academy funds a portion of the overall assistance amount. SYA notifies the Academy when a student has qualified for financial assistance and provides a billing statement for the portion owed by the Academy. X X X X X 0 0 0 0 0 0 0 0 0 Andrew Watson Head of School 333965 0 30000 0 0 0 16200 0 22139 0 402304 0 0 0 Gary Gordon Treasurer 202816 0 20000 0 0 0 12906 0 22851 0 258573 0 0 0 Pamela Scanlon Director of Finance 130339 0 0 0 0 0 8167 0 16283 0 154789 0 0 0 Stephanie Levy-Lipkowitz Assistant Head of School 126780 0 0 0 0 0 8127 0 43896 0 178803 0 0 0 Part I, Line 3 See Schedule O for discussion of establishing the compensation of the Academy's Head of School and Treasurer. A Village of Los Ranchos de Albuquerque 850236091 545610AR8 2010-09-21 37303574 See Part VI of Schedule K 0 0 0 A 37304714 427496 6043078 30833000 2010 1 0 1 1 A 0 1 0 0 0 0 1 A 0 0 1 0 0 0 0 0 0 A 1 Schedule K - Part I In September 2010, the Academy requested the Village of Los Ranchos de Albuquerque, New Mexico issue $36,000,000 of Series 2010 bonds (i) for the purpose of refunding Series 1999 bonds and Series 2002 bonds and paying the costs associated with the termination of a swap agreement entered into in connection with the Series 2002 bonds and (ii) to finance the acquisition, installation and construction of certain infrastructure projects on the Academy campus. The Series 2010 bonds were issued at a premium of $1,303,574, resulting in total proceeds of $37,303,574. The Series 2010 bonds provided $6,043,078 in proceeds to fund updates to fire alarm and smoke detection systems and replacement of electrical load centers and motor control centers in original campus buildings, replacement of buried hot water and chilled water loop lines on the central and east campus, replacement of buried hot water loop lines on the west campus and replacement of existing west campus roof top HVAC units with roof top air handling units with chilled water coils and an air cooled chiller system and renovation of classroom buildings and fixtures, including classroom technology upgrades. In September 2013, the Academy completed all of its capital improvements and utilized all of the funds that were originally set aside in the Series 2010 issue. The Series 2010 bonds also provided $1,098,000 in proceeds to terminate swap arrangements that had been entered into in connection with the Series 2002 Bonds. Schedule K - Part II - Line 3 The total proceeds in Part II - Line 3 differ from the total issue price in Part I due to investment earnings on capital expenditures from proceeds. Schedule K - Part IV Line 2b The most recent due date for Form 8038-T would have been September 21, 2016. This form was not filed for the Series 2010 bonds because the bond proceeds were not invested and therefore not subject to arbitrage profits that must be reported under the provisions of section 148. Carol Watson See Part V 59392 See Part V 0 Modrall Sperling Roehl Harris See Part V 123190 See Part V 0 Schedule L - Part IV, Columns (b) and (d) Line 1: Carol Watson is the spouse of the Head of School. Amount represents total compensation for the fiscal year ended June 30, 2018.Line 2: Christina Sheehan, Trustee, is a current employee and shareholder of Modrall, Sperling, Roehl, Harris & Sisk, PA. Amount represents total payments to the organization for the fiscal year ended June 30, 2018. X 14 123531 FMV @ liquidation X Piano 1 10000 Appraised value X Wireless microphone system 1 5710 FMV @ contribution X Paragon swim start platforms 8 5082 FMV @ contribution 1 0 1 1 Part I, Column (b): The Academy reports the number of individual contributors in Part I Column B of this schedule. Part I, Line 32b: The Academy uses the donated services of Banc of America/Merrill Lynch to liquidate non-cash contributions. Such liquidation usually is undertaken within days of receipt of the contribution. Form 990 - Part I - Line 1 - Mission Statement The Academy was the fortunate recipient of a transformational donation of land in the early sixties and chose to use this gift to ensure economic accessibility to students living throughout the city of Albuquerque and the region. Today the Academy offers students an education that is without equal in the Southwest. Students from area schools are served by teachers who deliver their subject matter in creative and engaging ways. Students in the 6/7 division follow a non-traditional schedule that allows adaptability in an ever-changing world. Students in the 8/9 division are given their own campus space and their own accountability to help them grow into confident young adults. For the 10/12 division, course work involves increasingly philosophical and analytical thought. Academy students serve the community to which they belong, compete in a variety of competitive sports and participate in a variety of academic clubs and student organizations. Most Academy students attend four-year colleges and universities upon graduation, many of them enrolling at some of the best universities in the country. Admission to the Academy is competitive; approximately 72% of those who applied for enrollment for the 2017/18 school year were offered admission. For the 2017/18 school year, the student body consisted of 49% boys and 51% girls, 52% are students of color, and approximately 22% received approximately $4.1 million in financial assistance. Financial assistance is based on demonstrated financial need; only after students are admitted and their needs are assessed might financial assistance be offered. Form 990 - Part III - Line 1 - Organization's Mission We believe that children's lives change when their natural passion for learning is nurtured and transformed into habits of life-long learning and reflection. We believe that the world changes as these children learn to serve country and community with wisdom, conviction, and compassion. In light of these beliefs: We serve students of talent and character, offering them an education that broadens their perspective, sharpens their minds, strengthens their bodies, and engages their hearts. We commit to creating a caring, inclusive, and just community, using the geography and culture of our home in the Southwest to enrich our educational programs and to foster creativity, personal balance and a connection to the natural world. We devote our resources to ensure economic accessibility to our students and to support the wider community through outreach and community service. We entrust this mission to our graduates and successors as we preserve our resources and serve the children of generations to come. Form 990 - Part III - Statement of Program Accomplishments The Academy opened its doors in the fall of 1955 with 12 boys in grades 7 through 9, two teachers, and founding Head William Wilburn. Classes were held in rented space in the Parish Hall of St. Michael's and All Angels Church. In 1957, enrollment had grown to 75 boys and the school moved to a 27-acre site on north Edith Boulevard in Albuquerque, NM. The first class of seven boys graduated in 1960. In 1966, the school moved to its present location, and in 1967/68 was home to 405 boys. Girls were admitted beginning in 1973. For the school year 2017/18, the Academy served 1,158 girls and boys in grades 6 through 12. The Academy's remarkable growth was made possible largely through the transformational gift of Albert G. Simms, a New Mexico financier and rancher, and his wife, Ruth Hanna McCormick Simms. In the early 1960's the Simms gave or bequeathed to the Academy (in trust) more than 12,000 acres of undeveloped land and 8,000 shares of Albuquerque National Bank stock. The undeveloped land has been sold resulting in the endowment that today enables education in a beautiful and uplifting environment, and also has provided the school its campus. The uniqueness of the Academy is due, in large part, to its commitment to its admission policy, and to providing accessibility to qualified students from throughout the greater Albuquerque community. Every Academy student benefits from the school's commitment to accessibility and affordability. Direct support from the endowment covers approximately 25% of the cost not covered by tuition. A further commitment of the Academy is to diversity and dedicating the school's resources to creating an environment in which all students can thrive. It is the responsibility of all the school's constituents to make this environment conducive to learning and to foster mutual respect for one another. Students of color (including students of Middle Eastern, Hispanic, African American, Asian, and Native American ancestry) represented approximately 52% of the total student population for the 2017/18 school year. Appreciation for diversity is also extended to those of various socioeconomic levels. Academy students benefit academically from small classes (averaging 19 students per class in grades 6 through 8 and 15 students per class in grades 9 through 12) and a teacher-to-student ratio of 1:9. 233 Academy students took advanced placement exams during the 2017/18 school year; of these students who took an advanced placement exam 63% received scores of 4 or 5, and 89% received a score of 3 or above. The 2018 graduating class had 26 National Merit Scholarship semifinalists, 14 commended students and 16 National Hispanic Scholars. Almost all Academy graduates enroll in a four-year college or university immediately upon graduation. Form 990 - Part III - Statement of Program Accomplishments Summer Program: The Academy summer session offered the opportunity to 1,889 children of the greater Albuquerque community (most non-affiliated with the regular school year) to participate in an enriching and exciting summer experience during the fiscal year ended June 30, 2018. The program had 282 class offerings including early childhood programs, a day camp, various sports camps and swim instruction for children from preschool to high school. Credit classes in math and science are also offered to high school students. An integral part of the session is the Multicultural Summer Honors Program, a summer scholarship program for academically talented and motivated African American, Native American, Hispanic, and other students who will be entering the fourth and fifth grades. The summer program has been an integral part of the Academy since 1984, reinforcing the school's unique mission of accessibility, affordability, excellence and outreach. The program also builds a broader sense of community as summer students and their siblings, as well as children of faculty and alumni, return summer after summer. The session is staffed by qualified and talented individuals who come from throughout New Mexico and the wider national and international educational community. The teacher/student ratios for the summer session offered for the fiscal year ended June 30, 2018 were 1:5 for the day camp, 1:8 for the children's workshop, 1:12 for pre-grade 1, 1:13 for pre-grade 2-3, and 1:15 for all other programs offered. Community Builders: Community outreach is an important aspect of the Academy's mission. The school is deeply committed to making a positive impact on the greater Albuquerque community, the state of New Mexico and beyond. Outreach initiatives are abundant and community service is part of the curriculum at all grade levels. Each year students undertake projects at numerous non-profit organizations in the community. Community Builders is a tuition free program that gives students from the Academy and other area schools an opportunity to learn the "nuts and bolts" of community philanthropy and non-profit organizations. The program includes a mix of site visits and meetings with community leaders to discuss a variety of topics, including types of non-profits, legal and ethical issues in the non-profit sector, grant writing for non-profits, non-profit governing boards and community leadership. At the end of the program students come together as a mock foundation to make decisions about how to support some of the non-profits they studied, both financially and through volunteer work. The program is supported by donors of which funds up to $10,000 can be allocated among studied non-profits. Community Academy: Community Academy supports the Academy's commitment to community outreach and life-long learning. Community Academy offers a continuing evening lecture series, free of charge to the entire community, presented by Academy faculty, alumni, and community leaders with expertise in their fields. Form 990 - Part III - Statement of Program Accomplishments The Academy dining halls provide lunch every school day for students, faculty and staff. Sage, the school's new partner, has served independent schools for over 25 years. Sage's mission is to create exceptional dining experiences that delight the senses, inspire minds and foster community. They provide nutritious meals, prepared with care, presented in an attractive manner and served in a friendly atmosphere by a courteous staff. They operate under a comprehensive sustainability initiative that safeguards the environment without losing quality. Team members have continuous training on everything from preventing food allergy reactions and recognizing signs of eating disorders to kitchen safety and preparing authentic international cuisine. The Sage Team has become a part of the Academy community, sharing every success and joining in every celebration. They tailor each menu for us, using fresh, locally sourced ingredients so the Academy knows we're getting the best of our region. Form 990, Part VI, Section B, line 11b Form 990 is prepared by the Academy's Controller with a review by the Academy's Business Manager, other key members of the Academy's management team and by an external tax preparer. The Board of Trustee's Audit & Risk Committee members with Academy employees (Head of School, Treasurer, Business Manager and Director of Finance) review the form in detail prior to filing with the Internal Revenue Service (IRS). Trustee members utilize this time to ask questions, clarify data and make suggestions for any changes. Any agreed upon changes are incorporated into the Form, with a final review undertaken by the Controller and the Business Manager. The Form is submitted electronically to the IRS in a timely manner. The Board of Trustees receive the Form 990 prior to the filing of the return. The Academy values those few donors who request that they remain anonymous to the community. To that end, to protect such donors and keep the school's promise that their identity will not be widely known, Schedule B of Form 990 is not provided to all Trustees of the Academy. All other portions of the Form 990 are provided to all Trustees. To be sure the board is aware of gifts and to protect the organization from the potential of inappropriate gifts to the school, the Board Chair, Head of School, Treasurer, and Director of Institutional Advancement are fully aware of the identity of all donors. Should any one of them determine that a donation might be inappropriate or pose a conflict with the organization, they are charged with raising the issue with the full board. The Academy publishes a comprehensive giving report on an annual basis that is available to the public. Form 990, Part VI, Section B, line 12c The conflict of interest statement is directed to the Trustees, officers, those who make purchasing decisions, all persons who are described as management personnel and to anyone who has proprietary information concerning the Academy. Each employee must sign a statement annually which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy and has agreed to comply with the policy. The conflict of interest statement requires that individuals refrain from voting or participating in any matter or issue in which they have any potential conflict of interest. This is to ensure the Academy operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status. Periodic review shall, at a minimum, include whether transactions between employees and the Academy are negotiated as the result of "arm's length bargaining and whether partnerships, joint ventures and any other business arrangements with the school are properly recorded. Transactions are further reviewed to ensure they reflect reasonable investment or payment for goods and services, they further charitable purposes and they do not result in inurement, impermissible private benefit or any excess benefit transaction. Accounting and other personnel are encouraged to report a situation involving a potential conflict of interest to an appropriate school official. Form 990, Part VI, Section B, line 15 The executive committee of the Board of Trustees takes responsibility for the evaluation of its two direct reports, the Head of School and the Treasurer, and for the determination of compensation for each of those individuals. The executive committee consists of the Board Chair, Vice Chair, Secretary, Assistant Secretary, Assistant Treasurer, and two at-large board members appointed by the Chair. All board members, including the members of the executive committee, submit a conflict of interest disclosure statement to the Chair of the board annually. These are utilized to determine that the committee members do not have any undisclosed conflicts of interest and they do not have any direct financial interest in the compensation provided to the Head of School or the Treasurer. In addition, at the time the executive committee considers compensation questions, each committee member is asked again to confirm that they do not have any conflicts of interest. The executive committee has, in some years, retained a compensation consultant intimately familiar with compensation for the heads of independent schools both in the region and nationally. The consultant has no financial or other interest in the compensation decisions made. The consultant has prepared a study of up to thirty or forty schools that are or may be comparable to the Academy in terms of complexity, size of operating budget, grade range and student body size. The consultant also considers heads of school with experience levels comparable to the Academy's Head of School. The consultant's compensation information includes evidence of salary, bonuses, benefits and other non-cash consideration that other heads of school may receive. The executive committee considers the information assembled by the consultant, and in addition, information gathered from Form 990's of other independent schools, GuideStar reports, news sources and independent school associations, in setting compensation for the Head of School, together with any information obtained from any evaluations that may have been performed, ordinarily in the spring and early summer, in advance of the beginning of the Academy's fiscal year. The executive committee maintains minutes of its meetings, including those in which compensation matters are considered. The Chair of the board reports the compensation decisions to the full board. The most recent compensation consultant study was completed during the 2018 fiscal year. The compensation consultant provided a letter to the Academy's executive committee confirming their judgment that the Head of School's compensation was reasonable and appropriate. Determining comparability of the Treasurer's compensation is more difficult because of the paucity of information available. The Treasurer's position at the Academy involves a fairly unique set of responsibilities in independent schools, ranging from management of a substantial endowment to a wide range of debt management, legal, business, and financial matters. One of the reports done by the compensation consultant did include information regarding the Treasurer's compensation by comparability to the second highest paid officer of the subject schools. That information, coupled with information from a survey by an Association of School Business Officers, certain Form 990 information, and the knowledge of the members of the executive committee of compensation levels prevailing in the geographic area for persons with the skill set and work ethic necessary to fill this office have been used to set compensation since that study. The executive committee continues to look for additional means of doing comparisons of compensation. At the end of fiscal year 2018, the board changed the organization structure of the school by eliminating the Treasurer position and consolidating those and other responsibilities in a new Chief Financial Officer position. Pursuant to IRS Section 4958 guidelines, the Head of School and the Treasurer do not serve as trustees; they have had no role in the setting of their compensation in this or any previous year of their employment; all of the compensation at issue is in the form of cash payments to the two recipients and none is deferred; the two are eligible for other non-cash benefits provided to all other employees of the school; none of the members of the executive committee receive any compensation from the school; and the members of the committee have reviewed comparability data before reaching a decision on compensation levels. Form 990, Part VI, Section C, line 19 The Academy keeps an electronic record (updated annually) of financial institutions, bondholders and vendors who have requested a copy of the Academy's audited financial statements as a condition of providing credit and services to the school. After the financial statement audit is completed and accepted by the Board of Trustees, electronic copies of the statements are distributed to all entities in the database. The Academy does not currently make its governing documents or conflict of interest policy statements available to the public. Form 990 - Part VIII - Statement of Revenue - Line 2e The Academy's audited financial statements net financial assistance awarded against gross tuition revenue. For the fiscal year ended the Academy awarded assistance to 247 students. The assistance we award is a reduction to the total cost of tuition. We do not provide cash or non-cash awards. Financial assistance is awarded based solely upon demonstrated financial need. A family's need is assessed annually through a comprehensive screening process. The annual process requires that the family complete an application and provide the Academy with a full set of tax returns including all supporting schedules. To determine the appropriate financial assistance, the Academy utilizes a standard methodology provided by School and Student Services ("SSS") which is used by Independent Schools nationwide. This methodology calculates a contribution for each individual family based upon the family's specific financial situation and discretionary income. Prior to making an award, each applicant's file and proposed award is carefully reviewed by a committee to ensure the decisions are based on consistent application of need based criteria. Assistance is awarded to students as a reduction in their tuition, lunch fees, and/or other academic fees. No cash is distributed to recipients. The Academy awarded zero non-cash assistance for the fiscal year ended June 30, 2018. Financial assistance is awarded annually consistent with the current academic school year. Applicants must reapply annually by submitting a new application and current tax documentation. In addition to a committee review of each award, the Financial Assistance Office of the Academy conducts a random audit of files annually as another measure to ensure that financial assistance is being awarded appropriately and the proper supporting documentation was submitted as part of the application process. On a monthly basis, the Accounting Office of the Academy compares the financial assistance subsidiary ledger postings to a list of awards provided by the Financial Assistance Office to ensure there are no discrepancies between the two amounts. Any discrepancies are promptly researched and resolved. Form 990 - Part VIII - Statement of Revenue - Line 2d As a benefit to its employees the Academy provides tuition remission to students of employees. The Academy's audited financial statements net tuition remission against gross tuition revenue. Tuition remission is a reduction in tuition and the Academy awards no cash or non-cash grants as remission. Monthly the Academy accounting office reconciles tuition remission expense to supporting documentation. Any discrepancies are reviewed and corrected as needed. Form 990 - Part XII - Financial Statements and Reporting - Line 2c The Academy has an Audit and Risk Committee that assumes responsibility for oversight of the annual financial statement audit and the resulting financial statements. The Audit and Risk Committee is also responsible for assessing and selecting the external audit firm of the Academy. The Academy did not change its oversight or selection process for the appointment of its external audit firm during the tax year currently being reported on. Albuquerque Academy Educational Foundation 6400 Wyoming Blvd NE Albuquerque NM 871093899 850381395 Support New Mexico ISAS schools NM 501(c)(3) Line 12a, I 1 Albuquerque Academy Student Support Foundation 6400 Wyoming Blvd NE Albuquerque NM 871093899 205895188 Provide support to Albuquerque Academy NM 501(c)(3) Line 12a, I 1 Albuquerque Academy for Boys Trust #1 1300 Merrill Lynch Drive Pennington NJ 085341501 856008015 Provide distributions to Albuquerque Academy for educational expenditures NM 501(c)(3) Line 12d, III-O 0 Albuquerque Academy for Boys Trust #2 1300 Merrill Lynch Drive Pennington NJ 085341501 856014105 Provide distributions to Albuquerque Academy for educational expenditures NM 501(c)(3) PF 0 High Desert Investment Corporation PO Box 92933 Albuquerque NM 87199 850394108 Real estate development NM Albuquerque Academy C 5948 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule R - Part IV - High Desert Investment Corporation The following footnote disclosure was included in the Academy's consolidated financial statements for the year ended June 30, 2018: In 1991, The Academy's Board of Trustees formed High Desert Investment Corporation (High Desert), a for-profit entity for the initial purpose of acquiring and developing property owned by the Academy in the foothills of the Sandia Mountains in Albuquerque. High Desert suffered losses connected with the country's residential housing collapse in 2007 from which it has not recovered. High Desert ceased operations in 2012. High Desert does not operate in the name of, or for the account of, the Academy, bind the Academy by its actions, or act as an agent of the Academy. The financial activities of the Academy and High Desert Investment Corporation are reflected in the accompanying consolidated financial statements, and all significant interentity transactions are eliminated in consolidation.