2018-03-09T11:35:29-07:00 2017-06-30 990 2016-07-01 042104265 GROTON SCHOOL GROT 9784483363 PO Box 991 Groton MA 01450 Arthur Diaz Chief Financial Officer 9784487566 2018-03-09 71.11.1.35 2016 2021-01-29 14:40:06Z Arthur Diaz PO Box 991 Groton MA 01450 63838725 0 X www.groton.org X 1884 MA Groton School provides college and university preparatory education for students in grades eight to twelve. 28 27 234 340 -44217 0 11573674 14959754 20840257 20978197 28869441 18845541 367731 402626 61651103 55186118 6680571 6630932 0 0 18375364 18844432 0 0 2330189 20158909 21922284 45214844 47397648 16436259 7788470 481882186 520237297 102287689 95569403 379594497 424667894 Groton School is dedicated to educating promising students in a diverse and intimate community that fosters intellectual, moral, and spiritual character and physical development in preparation for lifelong learning, leadership, and service to others. 0 0 32385200 6630932 20978197 Education of students in grades eight through twelve in a non-profit, co-educational college preparatory boarding school. The School provides aid assistance for 37% of its students in the form of tuition grants, housing support, travel assistance, and subsidies for books, supplies, and laptop purchases (377 students). 0 0 0 32385200 1 1 0 1 0 0 0 1 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 1 1 0 0 1 211 0 1 234 1 1 1 0 0 0 0 0 0 0 0 0 X 28 27 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 MA X Arthur Diaz 9784487566 PO Box 991 Groton MA 014500991 David Altshuler Board Member 4 0 X 0 0 0 Charles A Anton Board Member 4 0 X 0 0 0 Nicholas F Burgin Board Member 4 0 X 0 0 0 Diana V Chigas Board Member 4 0 X 0 0 0 Franz F Colloredo Mansfeld Board Member 4 0 X 0 0 0 Diana S Ferguson Board Member 4 0 X 0 0 0 William B Gray Board Member 4 0 X 0 0 0 Monica Spencer Green Board Member 4 0 X 0 0 0 Grant A Gund Board Member 4 0 X 0 0 0 Gary C Hill Board Member 4 0 X 0 0 0 Stephen G Hill Board Member 4 0 X 0 0 0 John R S Jacobsson Board Member 4 0 X 0 0 0 Alexander Robert Krapf Board Member 4 0 X 0 0 0 Richard R Patton Board Member 4 0 X 0 0 0 Andrew S Paul Board Member 4 0 X 0 0 0 Andrea N Picott Board Member 4 0 X 0 0 0 Benjamin N Pyne Board Member 4 0 X 0 0 0 Jennifer Eplett Reilly Board Member 4 0 X 0 0 0 Rachel E Slack Board Member 4 0 X 0 0 0 Stacey Clover Symonds Board Member 4 0 X 0 0 0 William C Vrattos Board Member 4 0 X 0 0 0 James H R Windels Board Member 4 0 X 0 0 0 Nancy Yang Board Member 4 0 X 0 0 0 Jonathan D Klein President 4 0 X X 0 0 0 Ann Bakewell Woodward Vice President 4 0 X X 0 0 0 D D Willard Gardiner Jr Treasurer 4 0 X X 0 0 0 Peter C Erichsen Secretary 4 0 X X 0 0 0 Temba Maqubela Headmaster 60 0 X X 440681 0 156835 Arthur Diaz Chief Financial Officer 50 0 X 244760 0 91049 J Hale Smith Retired CFO on Sabbatical 0 0 X X 119691 0 30279 John MacEachern Director of Development 50 0 X 223330 0 78812 Elizabeth Lawrence Development Leadership Gift Officer 50 0 X 163544 0 51386 Elizabeth Preston Chief Technology Officer 50 0 X 152997 0 29546 Ian Gracey Director of Admissions 50 0 X 142791 0 117878 Megan Harlan Director of College Counseling 50 0 X 126908 0 87453 1614702 0 643238 20 1 1 0 Lee Kennedy Company Inc 122 Quincy Shore Drive Quincy MA 02171 Construction 2446382 Acella Construction Corporation 62 Accord Park Drive Suite 2 Norwell MA 02061 Construction 2361842 Timberline Construction Corporation 300 Pine Street Canton MA 02021 Construction 1639675 Chartwells 2400 Yorkmont Road Charlotte NC 28217 Food Service 1536978 Mahan Slate Roofing Company 32 Verge Street Springfield MA 01129 Construction 1307925 23 0 0 0 0 0 14959754 3624825 14959754 Tuition 611600 20364080 20364080 0 0 Technology support fee 611710 226200 226200 0 0 Health center fee 611710 126000 126000 0 0 Laptop rental and lease 611710 114300 114300 0 0 Application fees 611710 79450 79450 0 0 68167 68167 0 0 20978197 4980178 0 -55481 5035659 0 0 0 0 0 0 0 0 372653 0 20607 0 352046 0 352046 0 11264 340782 22429582 0 8554146 10073 13875436 -10073 13865363 0 0 13865363 0 118361 67781 50580 0 0 50580 0 55186118 20978197 -44217 19292384 113357 113357 6517575 6517575 0 0 0 0 933325 0 933325 0 110606 110606 0 0 12146762 8927203 1941233 1278326 2318304 1507816 561335 249153 2516385 1600609 690896 224880 819050 532707 198318 88025 0 0 0 0 123183 0 123183 0 126245 11123 115122 0 0 0 0 0 0 0 3008447 -22 3008469 0 1112283 374825 713798 23660 367103 95982 183809 87312 181400 48540 86107 46753 461551 115752 324967 20832 0 0 0 0 3033829 3022972 9787 1070 351117 96505 154464 100148 0 0 0 0 39803 20657 16836 2310 2689582 0 2689582 0 0 0 0 0 8097166 7875311 221855 0 352011 50833 287603 13575 Food 912816 767500 80308 65008 Special Events 471954 354805 34519 82630 General Mechandise & Equipment 299667 283057 9293 7317 Other Regulatory 137556 21888 84005 31663 156571 -64401 213445 7527 47397648 32385200 12682259 2330189 54556 39042 1266187 2065179 13071860 12364070 359886 587880 0 0 0 0 21004 8487 238524 257975 1158351 262565 229526573 96855969 134919361 132670604 198661855 228767975 124896792 135979710 15797 15797 7218013 7218013 0 0 481882186 520237297 14654022 11909064 0 0 2224160 3155091 71542500 69925381 0 0 0 0 0 0 0 0 13867007 10579867 102287689 95569403 X 225163878 246462643 75676688 85579076 78753931 92626175 379594497 424667894 481882186 520237297 X 7788470 27871849 0 0 4389022 5024056 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 0 0 0 Schedule C, Part II-B, Line 1 The School is a member of a number of associations such as the National Association of Independent Schools, New England Association of Schools and Colleges, and the Association of Independent Schools in New England, which may use a portion of their membership dues to lobby on behalf of its members. The portion of dues and fees allocated to lobbying activities is not determinable. 0 0 X X 0 320150377 14471653 43721190 3393385 13990825 0 360959010 348220123 4138587 -11323956 3340451 17543926 0 320150377 352334319 3983613 4468108 2895958 9669959 0 348220123 313592181 2553487 46100003 2797139 7114213 0 352334319 295580171 5384256 26464968 2708118 11129096 0 313592181 0.55 0.23 0.22 0 0 0 4072260 4072260 0 202679321 82470002 120209319 0 0 0 0 0 12478099 8478055 4000044 0 10296893 5907912 4388981 132670604 0 0 Hedge Funds 89048001 F Venture Capital Funds 26926971 F Real Assets Funds 10417620 F Private Equity Funds 9587118 F 135979710 0 Interest Rate Swap Agreements 8281143 Charitable Remainder Unitrusts 1614277 Charitable Gift Annuity 684447 10579867 X 78247135 27871849 0 0 -1083559 26788290 51458845 3825734 -98461 3727273 55186118 37562760 0 0 0 98461 98461 37464299 3825734 6107615 9933349 47397648 Schedule D, Part III, Line 1 The collections, which include art work, books, and artifacts of historical significance have been acquired through contributions since the School's inception and are not recognized as assets on the statements of financial position. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset class. Schedule D, Part III, Line 4 The artwork acquired by the School since its inception often relates to the School's history and has either been purchased or acquired by donation. This collection is displayed throughout the campus for viewing by students, faculty, and visitors. Schedule D, Part V, Line 4 The endowment is used to support the educational mission of the School. Schedule D, Part X, Line 2 The School follows FASB ASC 740, "Income Taxes", which clarifies the accounting for uncertain income tax positions by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The School recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. Management evaluated the School's tax positions and concluded that the School had no material uncertain income tax positions as of June 30, 2017 or 2016. The School is no longer subject to income tax examinations by the US federal, state, or local tax authorities for fiscal years before 2014. The School will account for interest and penalties related to uncertain tax positions, if any, as part of tax expense. Schedule D, Part XI, Line 2d Unrealized gain on the value of interest rate swaps 3,444,269, reduced accrued pension liability 1,126,700, increase in value of split interest agreements 517,638, financial aid (6,107,615), and the recovery provision for uncollectible pledges (64,551). Schedule D, Part XI, Line 4b Rental expenses of (20,607) are associated with unrelated business income, cost of goods sold at the School store (67,781), and loss on disposal of assets (10,073). Schedule D, Part XII, Line 2d Rental expenses of 20,607 are associated with unrelated business income, loss on disposal of property 10,073, and the cost of goods sold at the School store 67,781. Schedule D, Part XII, Line 4b Financial aid of 6,107,615. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 Schedule E, Part I, Line 3 Groton's diversity and inclusion mission statement is noted on its website. It notes that Groton School is committed to diversity and inclusivity with responsibility, mutual respect, and empathy. We strive to maintain a community in which every person feels welcomed, valued, and respected. We are dedicated to shared examination of our different perspectives, inherent privileges, disadvantages, and prejudices, especially in terms of race, religion, national origin, gender and sexuality, socioeconomic status, and political ideology. We believe this work is critical to preparing students to lead "lives of character, learning, leadership, and service." Sub-Saharan Africa 0 0 Program Services School sponsored Choir trip to South Africa that included fourteen students. 59000 South America 0 0 Program Services School sponsored Global Education trip to Peru that included twelve students. 36000 Sub-Saharan Africa 0 0 Program Services School sponsored Global Education trip to Uganda that included eight students. 27000 East Asia and the Pacific 0 0 Fundraising Fundraising receptions held in China in January 2017. 23000 East Asia and the Pacific 0 0 Fundraising Fundraising receptions held in Beijing and Seoul in March 2017. 23000 East Asia and the Pacific 0 0 Program Services Admissions receptions held in Beijing and Hong Kong in November 2016. 14000 East Asia and the Pacific 0 0 Program Services School sponsored Global Education trip to China that included eight students. 12000 Europe (including Iceland and Greenland) 0 0 Program Services School sponsored Global Education trip to France that included twelve students. 9000 East Asia and the Pacific 0 0 Fundraising Fundraising receptions in Beijing and Seoul in September 2016. 8000 East Asia and the Pacific 0 0 Fundraising Fundraising receptions held in Shanghai in November 2016. 6000 East Asia and the Pacific 0 0 Fundraising Fundraising reception held in Hong Kong in October 2016. 5000 Europe (including Iceland and Greenland) 0 0 Fundraising Fundraising receptions held in Amsterdam and the UK in June 2017. 4000 Europe (including Iceland and Greenland) 0 0 Program Services College counseling campus tours in Ireland in March 2017. 1000 Central America and the Caribbean 0 0 Investments 37471000 0 0 37698000 0 0 0 0 0 0 1 Town of Groton 173 Main Street Groton MA 01450 046001164 Government Entity 110000 0 Cash payment records The contribution was made to help the Town of Groton subsidize their annual operating costs. 1 0 Tuition Grant 155 0 6107615 Total credits applied to tuition Credits are applied to tuition as a means of subsidizing the overall tuition costs to qualified students attending Groton School during the academic year and for the available summer program. Travel Grant 100 191561 0 Credits are applied to monthly bill to offset costs Incidental Grant 65 163608 0 Credits are applied to the monthly bill Laptop Grants 32 33705 0 Payments made to purchase laptops for qualified students Parent Travel Grant 42 21086 0 Payments made to subsidize travel related expense for parents Schedule I, Part I, Line 2 The School works directly with town officials and local charitable organizations to assess future needs and the use of current and past monetary grants. The School also makes several other small donations throughout the year based on charitable purpose, historical relationships, and current needs. These one time contributions are not typically monitored by the CFO or Headmaster. Financial aid grants are awarded annually to qualified students and are typically applied as credits to the tuition bill up to the amount of the grant for the current academic year. In some instances, cash payments are issued directly to parents as a reimbursement for academic expenses or travel related costs when applicable. X X X X 1 1 X X X 0 1 0 0 0 0 0 0 0 Temba Maqubela Headmaster 387053 0 0 0 53628 0 81959 0 74876 0 597516 0 46900 0 Arthur Diaz Chief Financial Officer 244760 0 0 0 0 0 36217 0 54832 0 335809 0 0 0 John MacEachern Director of Development 223330 0 0 0 0 0 53966 0 24846 0 302142 0 0 0 Ian Gracey Director of Admissions 142791 0 0 0 0 0 28391 0 89487 0 260669 0 0 0 Elizabeth Lawrence Development Leadership Gift Officer 123544 0 0 0 40000 0 29492 0 21894 0 214930 0 0 0 Megan Harlan Director of College Counseling 110867 0 0 0 16041 0 20014 0 67439 0 214361 0 0 0 Elizabeth Preston Chief Technology Officer 132387 0 0 0 20610 0 20373 0 9173 0 182543 0 0 0 Schedule J, Part I, Line 1a Faculty are required to live in on-campus housing as a condition of employment. The Headmaster's home includes some space that is reserved for School related meetings and student activities. The cost of maintaining this allotted space is paid by the School and recorded as an operating expense. The Headmaster's contract, which is approved by the Board President and the Compensation Committee, includes the cost of residential cleaning. The cost is recorded by the School as a taxable benefit and reported on the W-2. The School will only pay for the cost of a traveling spouse when they are an authorized participant in School related functions. In such a case, the cost is treated as a non-taxable work-related event. The discretionary account is provided to the Headmaster as part of the approved annual budget. The account is used to fund small School related expenses and, as a result, is not reported as a taxable fringe benefit. Schedule J, Part I, Line 3 The salary of Groton's Headmaster is determined annually by the Personnel Committee of the board. As input to their decision, the committee reviews the results of the annual ABOPS salary survey. ABOPS is a 40-member organization of independent schools whom we consider to be our peers. Schedule J, Part I, Line 4 The Headmaster's contract, which is approved by the President of the Board and the Compensation Committee, included an annual $43,000 deferred compensation contribution. The School deposited the initial payment to a qualified 457(b) plan up to the annual IRS limit of $18,000. The remaining balance was deposited to a non-qualified 457(f) plan. Each deposit to the 457(f) plan is subject to a three year vesting period and is distributed once the terms are satisfied. The initial payout from the plan in July of 2016 was recorded as a taxable distribution and reported on the W-2. A Massachusetts Development Finance Agency 043431814 2013-10-17 75000000 Building renovations & refinancing existing debt 0 0 0 A 4710000 0 75000000 0 644020 48640000 474250 0 0 25885750 0 0 2016 1 0 1 1 A 0 0 0 0 0 0 0 0 0 1 A 0 0 0 0 1 1 Morgan Stanley Capital Services Bank of New York Mellon 30 0 0 0 0 1 A 1 Schedule K, Part IV, Line 4b-10/17/2013 75,000,000 Massachusetts Development Finance Agency The Bank of New York Mellon Swap 20 years, The Bank of New York Mellon Swap 38 years, and Morgan Stanley Capital Services Swap 30 years. Vuyelwa M Maqubela Family Member of Temba Maqubela 109106 Employment 0 Alexander Diaz Family Member of Arthur Diaz 1500 Employment 0 X 119 3624825 FMV 0 0 1 0 Schedule M, Part I, Line 33 The number of security contributions is based on the number of gifts and not the number of shares received. Form 990, Part VI, Section B, Line 11b A draft of the Form 990 without Schedule B was distributed electronically to each member of the Audit Committee. After a thorough review, the Committee had an opportunity to ask questions and suggest revisions during a group conference call. The draft was also posted to a secure electronic portal, accessible by the full Board, prior to filing. Form 990, Part VI, Section B, Line 12c All School officers, key employees, and members of the Board of Trustees are required annually to read the conflict of interest policy and sign the document. The signature indicates an understanding of the guidelines and an assurance to the Board that they are in compliance with the policy. Any potential conflict must be disclosed and reviewed by the President of the Board to determine if further action is required. Any identified conflict will prohibit such individual from participating in the governing body's deliberations and transaction decisions related to the conflict. Form 990, Part VI, Section B, Line 15 An employment contract between the Headmaster and the School is updated periodically and renewed annually. Each year, the President of the Board and the Compensation Committee review the Headmaster's and other senior administrator's salaries and benefits. The salary survey provided by the Association of Business Officers of Preparatory Schools is used as a guide and a point of comparison. The annual salary and benefit offerings for the Chief Financial Officer are made by the Headmaster. All salaries and benefit offerings for the remaining School employees are updated annually and approved by the Chief Financial Officer or the Headmaster up the aggregate salary increase approved by the Board of Trustees. Form 990, Part VI, Section C, Line 19 The Form 990 without Schedule B can be viewed on-line by going to guidestar.org, an independently operated website. The conflict of Interest Policy and the Governing Documents may be viewed any time upon request for the same period of disclosure set forth in Section 6104(d). Form 990, Part XI, Line 9 Change in value of interest rate swap agreements 3,444,269, accrued pension liability 1,126,700, split interest agreements 517,638, and recovery for uncollectable pledges (64,551). Charitable Remainder Trust (5) PO Box 991 Groton MA 01450 Charitable Trust MA Groton School T 1 Pooled Income Fund PO Box 991 Groton MA 01450 Pooled Income Fund MA Groton School T 1 Growth Pooled Income Fund PO Box 991 Groton MA 01450 Pooled Income Fund MA Groton School T 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Charitable Remainder Trust (5) s 0 The aggregate annual transfers from the fund to the School that represent the value of the fund assigned to the beneficiaries upon their death. Pooled Income Fund s 0 The aggregate annual transfers from the fund to the School that represent the value of the fund assigned to the beneficiaries upon their death. Growth Pooled Income Fund s 0 The aggregate annual transfers from the fund to the School that represent the value of the fund assigned to the beneficiaries upon their death.