2019-05-13T10:07:22-05:00 2018-06-30 420714325 RSM US LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 20878 990 2017-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2019-05-10 1 WILLIAM E TURCO CPA P00369217 3012963600 66.98.98.9 2019-05-10 13:19:20 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 00BFBB601F26E6691F3C42FDB75EEBE807206D5E 2017 2019-02-21 02:37:17Z JOHN KOWALIK 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 79916174 0 X WWW.POTOMACSCHOOL.ORG X 1907 DC AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 24 24 544 1080 32061 0 14471064 22013681 43088562 44324963 559497 695395 543454 357972 58662577 67392011 4114365 4369137 0 0 25457336 26650803 269184 271165 2091125 14609414 14763781 44450299 46054886 14212278 21337125 161219369 185135794 62086160 60995969 99133209 124139825 X AT THE POTOMAC SCHOOL, WE BELIEVE THAT INTELLECTUAL DEVELOPMENT, LOVE OF LEARNING, AND STRENGTH OF CHARACTER ARE COMPLEMENTARY, AND EQUALLY ESSENTIAL, EDUCATIONAL GOALS. WITH A FIRM COMMITMENT TO OUR CORE VALUES AND A RIGOROUS ACADEMIC PROGRAM, WE PREPARE STUDENTS TO LEAD LIVES OF PURPOSE, ACHIEVEMENT, AND GENEROSITY OF SPIRIT. 0 0 35912641 4369137 42185165 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1060 STUDENTS. 2695859 2107737 SUMMER DAY CAMP AND ACADEMIC REVIEW. 38608500 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 142 0 1 544 1 1 1 0 0 0 0 1 1 0 0 0 0 X 24 24 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X DYANA CONROY 7037496320 1301 POTOMAC SCHOOL ROAD MCLEAN VA 22101 MARJORIE P BRENNAN CHAIR 2.00 X X 0 0 0 SAMEER BHARGAVA VICE-CHAIR AND TREASURER 2.00 X X 0 0 0 MARY LOUISE LEIPHEIMER SECRETARY 2.00 X X 0 0 0 DAVID W DUPREE TRUSTEE 2.00 X 0 0 0 LYNNE F O'BRIEN TRUSTEE 2.00 X 0 0 0 JAMES B FLEMING TRUSTEE 2.00 X 0 0 0 NATALIE F BUSH TRUSTEE 2.00 X 0 0 0 DOUGLAS M CUMMINGS TRUSTEE 2.00 X 0 0 0 NORMA C RAMSEY TRUSTEE 2.00 X 0 0 0 MICHAEL L DAVIS TRUSTEE 2.00 X 0 0 0 DANIEL I FISHER TRUSTEE 2.00 X 0 0 0 GRACE GUGGENHEIM TRUSTEE 2.00 X 0 0 0 STEPHANIE AMANN KAPSIS TRUSTEE 2.00 X 0 0 0 WILLIAM J KILBERG TRUSTEE 2.00 X 0 0 0 JAMES H ROONEY TRUSTEE 2.00 X 0 0 0 ROBERT M MCDOWELL TRUSTEE 2.00 X 0 0 0 ROBERT D MOSER TRUSTEE 2.00 X 0 0 0 STEVEN J PANN TRUSTEE 2.00 X 0 0 0 ERIC W ROSENTHAL TRUSTEE 2.00 X 0 0 0 THOMAS J RIETANO TRUSTEE 2.00 X 0 0 0 SUSAN N SCHIEFFER TRUSTEE 2.00 X 0 0 0 KAREN SONNEBORN TRUSTEE 2.00 X 0 0 0 ABIGAIL SPANGLER TRUSTEE 2.00 X 0 0 0 MARK J SULLIVAN TRUSTEE 2.00 X 0 0 0 JOHN J KOWALIK HEAD OF SCHOOL 60.00 X 623548 0 150922 DYANA CONROY CFO/COO 60.00 X 270317 0 63503 BARBARA OVERSTREET DIRECTOR, ADVANCEMENT 50.00 X 202121 0 38379 TIMOTHY JAEGER ASSISTANT HEAD OF SCHOOL 50.00 X 183408 0 112512 JOHN MATHEWS HEAD, MIDDLE & INTERMEDIATE SCHOOLS 50.00 X 163311 0 89594 NANCY POWELL HEAD, LOWER SCHOOL 50.00 X 151402 0 32755 CASSANDRA BLANCHARD DIRECTOR, GIRLS ATHLETICS 50.00 X 144240 0 22562 1738347 0 510227 39 0 1 0 CANNON WASHINGTON INC DEPARTMENT CHICAGO 19824 PALATINE IL 600559824 DESIGN SERVICES 1485747 SAGE DINING SERVICES 1402 YORK RD LUTHERVILLE MD 21093 FOOD SERVICE 1033054 INTERNETWORKING SOLUTION PROF CONCENTUS PO BOX 400 MCLEAN VA 22101 INFORMATION TECHNOLOGY 366251 C J MAINTENANCE INC 9254 BENDIX ROAD COLUMBIA MD 21045 JANITORIAL 270584 GRAHAM-PELTON ASSOCIATES INC 39 BEECHWOOD ROAD SUMMIT NJ 07901 CONSULTANT 268890 6 594541 21419140 748080 22013681 TUITION 900099 40879507 40879507 SUMMER PROGRAMS 900099 2107737 2107737 TRANSPORTATION 900099 981873 949812 32061 ENRICHMENT PROGRAM 900099 169734 169734 EXTENDED DAY 900099 108169 108169 77943 77943 44324963 515720 515720 2950 0 2950 2950 2950 12421094 12241419 179675 179675 179675 380756 594541 213865 166891 166891 107490 68879 38611 38611 OTHER INCOME 900099 149520 149520 149520 67392011 44292902 32061 1053367 4369137 4369137 973286 842806 86622 43858 19951336 17327054 1777807 846475 1370121 1177944 121577 70600 2896126 2398568 384304 113254 1459934 1277551 125567 56816 102320 67863 30488 3969 63895 42563 19033 2299 271165 271165 19536 19536 915117 600582 216406 98129 76855 30536 13655 32664 565075 351638 128765 84672 719680 526559 172308 20813 1490951 1082961 364020 43970 335055 334507 548 445432 301477 26064 117891 1480431 999186 427276 53969 3511885 2339400 1046127 126358 382374 275221 95605 11548 SUMMER PROGRAM 1764526 1764526 DEPARTMENT EXPENSES 1409687 1385351 21713 2623 FOOD AND ENTERTAINMENT 993504 661219 295582 36703 BAD DEBTS 84848 52723 23577 8548 402610 399128 -40771 44253 46054886 38608500 5355261 2091125 300 300 32027331 44836459 8893677 19790503 155000 258872 76018 83968 280805 587273 120854869 40241795 80422177 80613074 2841834 36287746 38647745 234481 317600 161219369 185135794 2966348 4228488 19623992 20946216 35375615 33949416 1231624 2888581 1871849 62086160 60995969 X 86323662 96975233 10078477 24260654 2731070 2903938 99133209 124139825 161219369 185135794 X 21337125 2676440 993051 X 0 1 X 1 0 X 42885335 4395582 3278736 1536308 49023345 35924093 4185401 4226926 1451085 42885335 35807482 2078381 -32417 1929353 35924093 35280681 396280 692522 562001 35807482 30671763 804573 5164382 1360037 35280681 0.92760 0.05920 0.01320 0 0 9754656 9754656 96062280 30632353 65429927 11642611 9609442 2033169 3395322 3395322 80613074 LIMITED PARTNERSHIPS 4351377 C COMMON FUND INVESTMENTS 34296368 F 38647745 DEFERRED COMPENSATION 287700 INTEREST RATE SWAP AGREEMENT 1584149 1871849 X 65748657 2676440 -4369137 -1692697 67441354 19536 -68879 -49343 67392011 41735092 68879 68879 41666213 19536 4369137 4388673 46054886 PART V, LINE 4: ENDOWMENT FUNDS ARE USED TO PROVIDE FINANCIAL AID, PURCHASE LIBRARY BOOKS, FRAME STUDENT ARTWORK, FUND COMMUNITY SERVICE, FACULTY SALARIES AND ENRICHMENT, SCIENCE PROGRAMS, THEATER AND MUSIC, AND GLOBAL STUDIES. PART X, LINE 2: THE SCHOOL IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE SCHOOL QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. BUSINESS INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. FOR THE YEAR ENDED JUNE 30, 2018, THE SCHOOL HAD IMMATERIAL UNRELATED BUSINESS INCOME TAXES, AND ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS REQUIRED IN THE ACCOMPANYING FINANCIAL STATEMENTS. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT THE SCHOOL HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THE SCHOOL FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH FEW EXCEPTIONS, THE SCHOOL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -4,369,137. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -68,879. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 68,879. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 4,369,137. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 AN ANNOUNCEMENT IS PRINTED IN THE WASHINGTON POST NEWSPAPER. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 4380683 0 0 0 0 0 0 4380683 0 4380683 1 0 0 0 0 0 X X X X X 1 GRAHAM-PELTON CONSULTING INC 39 BEECHWOOD RD SUMMIT NJ 07901 FUNDRAISING CONSULTING SERVICES 0 0 271165 -271165 271165 -271165 SPRING AUCTION 899303 590175 309128 177074 FALL FROLIC CARNIVAL 68870 3750 65120 36791 1 7124 616 6508 975297 594541 380756 213865 213865 166891 1 FINANCIAL AID AWARDS TO STUDENTS 176 4369137 PART I, LINE 2: THE POTOMAC SCHOOL UTILIZES THE SERVICES OF THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, STUDENT SCHOLARSHIP SERVICES (SSS), TO HELP EVALUATE EACH STUDENT'S NEEDS FOR FINANCIAL ASSISTANCE. EACH APPLICANT COMPLETES A STANDARDIZED FORM AND AN EVALUATION IS PRODUCED WHICH INCLUDES RECOMMENDATIONS AS TO THE LEVEL OF FINANCIAL ASSISTANCE REQUIRED. THE SCHOOL USES THESE REPORTS AS A GUIDE TO DETERMINE WHICH STUDENTS REQUIRE FINANCIAL ASSISTANCE AND AN ESTIMATE OF THAT NEED. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 JOHN J KOWALIK HEAD OF SCHOOL 397006 0 0 0 226542 0 54900 0 99167 0 777615 0 0 0 DYANA CONROY CFO/COO 240455 0 2500 0 27362 0 37710 0 31039 0 339066 0 0 0 BARBARA OVERSTREET DIRECTOR, ADVANCEMENT 197761 0 2500 0 1860 0 14368 0 26846 0 243335 0 0 0 TIMOTHY JAEGER ASSISTANT HEAD OF SCHOOL 180011 0 2500 0 897 0 33125 0 82092 0 298625 0 0 0 JOHN MATHEWS HEAD, MIDDLE & INTERMEDIATE SCHOOLS 162785 0 0 0 526 0 23662 0 68450 0 255423 0 0 0 NANCY POWELL HEAD, LOWER SCHOOL 149331 0 0 0 2071 0 15561 0 19577 0 186540 0 0 0 CASSANDRA BLANCHARD DIRECTOR, GIRLS ATHLETICS 143674 0 0 0 566 0 14419 0 9407 0 168066 0 0 0 PART I, LINE 1A THE SCHOOL COMPENSATES THE HEADMASTER AND VARIOUS DEPARTMENT HEADS. THE SCHOOL PROVIDES THE HEADMASTER AND VARIOUS DEPARTMENT HEADS WITH HOUSING. THE RENTAL VALUE REFLECTS THE FAIR MARKET VALUE FOR COMPARABLE HOUSES IN THE AREA. THE TRANSACTIONS WERE APPROVED BY THE BOARD OF TRUSTEES WITH ADEQUATE DOCUMENTATION. FOLLOWING EMPLOYEES RECEIVED NONTAXABLE HOUSING ALLOWANCE: JOHN KOWALIK - $68,979 TIMOTHY JAEGER - $55,376 JOHN MATHEWS - $41,421 PART I, LINE 4B FOLLOWING EMPLOYEES PARTICIPATE IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN 457(F) AND THE SCHOOL CONTRIBUTED FOLLOWING AMOUNTS DURING THE CALENDAR YEAR. JOHN KOWALIK $36,000 DYANA CONROY $20,000 TIMOTHY JAEGER $20,000 JOHN MATHEWS $10,000 PART I, LINE 7 A PERFORMANCE BASED BONUS WAS PAID DURING THE CALENDAR YEAR 2017. A FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2004-07-12 16430000 REDEMPTION OF PRIOR BONDS AND SCHOOL CONSTRUCTION 0 0 0 B FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2005-08-04 20570000 CONSTRUCTION OF NEW UPPER SCHOOL BUILDING 0 0 0 C FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 540787833 2012-09-07 9500000 REFINANCING PRIOR LOAN AND SCHOOL CONSTRUCTION 0 0 0 A 4808093 16430000 16430000 2004 1 0 1 1 B 5453159 20570000 20570000 2006 0 0 1 1 C 1946943 9500000 9500000 2013 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 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 1 PNC BANK 28.000000000000 0 0 0 0 1 C 0 0 1 0 1 1 PNC BANK 12.000000000000 0 0 0 0 1 A 1 B 1 C 1 SCHEDULE K, PART IV, LINE 2C, REBATE NOT YET DUE: NO CALCULATION REQUIRED FOR THE C SERIES DUE TO MEETING REBATE EXCEPTION. X 29 748080 CONFIRMATION FROM BROKER 0 1 0 FORM 990, PART VI, SECTION A, LINE 2 ROBERT MOSER AND SAMEER BHARGAVA - BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. AFTER THAT IT GOES TO THE FULL BOARD FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C FOR KEY EMPLOYEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE HEAD OF SCHOOL OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT IT CAN BE COMMUNICATED TO THE BOARD OF TRUSTEES WHO CAN, IN COUNSEL WITH THE HEAD OF SCHOOL, THEN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS THEY SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL KEY EMPLOYEES. FOR BOARD OF TRUSTEES: WHERE A POTENTIAL CONFLICT OF INTEREST EXISTS, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE TO NOTIFY THE CHAIR AND VICE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE CHAIR OF THE COMMITTEE ON TRUSTEES OF THE CIRCUMSTANCES RESULTING IN THE POTENTIAL CONFLICT SO THAT THE BOARD OF TRUSTEES CAN PROVIDE SUCH GUIDANCE AND TAKE SUCH ACTION AS IT SHALL DEEM APPROPRIATE. THIS STATEMENT SHALL BE SIGNED ANNUALLY BY ALL TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE REVIEWS AND DISCUSSES THE TOTAL COMPENSATION PACKAGES OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS. SALARY INFORMATION ONLY FOR SIMILAR POSITIONS FROM COMPARABLE SCHOOLS ARE USED TO ESTABLISH A REASONABLE COMPENSATION. THE COMMITTEE HAS THE AUTHORITY TO APPROVE THE COMPENSATION PACKAGE OF THE HEAD OF SCHOOL AND SCHOOL ADMINISTRATORS ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 A PUBLIC INSPECTION FILE IS MAINTAINED ONSITE THAT INCLUDES THE 990, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. FORM 990, PART XI, LINE 9: UNREALIZED LOSS ON SWAPS 993,051.