2018-03-28T10:32:19-05:00 2017-06-30 420714325 RSM US LLP 9737 Washingtonian Blvd 400 Gaithersburg MD 20878 990 2016-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 1301 POTOMAC SCHOOL RD MCLEAN VA 22101 John Kowalik HEAD OF SCHOOL 7033564100 2018-03-22 1 WILLIAM E TURCO CPA P00369217 3012963600 66.98.98.5 2018-03-22 15:49:41 ED P B807BA4C69A73CA6C24C1450FD5847F62F078646 C19F5D3F195EC13517A150B69ABBCB37DF598FBC 2016 2021-01-29 14:40:06Z John Kowalik 1301 POTOMAC SCHOOL RD MCLEAN VA 22101 69660524 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 24 529 1080 65019 -1866 3099031 14471064 40686100 43088562 597949 559497 517307 543454 44900387 58662577 3893893 4114365 0 0 24155875 25457336 0 269184 2150193 14504593 14609414 42554361 44450299 2346026 14212278 143845558 161617383 64260483 62484174 79585075 99133209 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 34635662 4114365 40900269 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1060 STUDENTS. 2783209 2123274 SUMMER DAY CAMP AND ACADEMIC REVIEW. 37418871 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 1 131 0 1 529 1 1 1 0 0 0 0 1 1 0 0 0 0 X 24 24 1 0 1 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 1.50 X X 0 0 0 Sameer Bhargava Vice-Chair and Treasurer 1.50 X X 0 0 0 Mary Louise Leipheimer Secretary 1.50 X X 0 0 0 David W Dupree Trustee 1.50 X 0 0 0 Lynne F O'Brien Trustee 1.50 X 0 0 0 James B Fleming Trustee 1.50 X 0 0 0 Natalie F Bush Trustee 1.50 X 0 0 0 Douglas M Cummings Trustee 1.50 X 0 0 0 Alan J Dabbiere Trustee 1.50 X 0 0 0 Michael L Davis Trustee 1.50 X 0 0 0 Daniel I Fisher Trustee 1.50 X 0 0 0 Grace Guggenheim Trustee 1.50 X 0 0 0 Stephanie Amann Kapsis Trustee 1.50 X 0 0 0 William J Kilberg Trustee 1.50 X 0 0 0 Mark C Lowham Trustee 1.50 X 0 0 0 Robert M McDowell Trustee 1.50 X 0 0 0 Robert D Moser Trustee 1.50 X 0 0 0 Steven J Pann Trustee 1.50 X 0 0 0 Ronald H Peele Jr Trustee 1.50 X 0 0 0 Thomas J Rietano Trustee 1.50 X 0 0 0 Susan N Schieffer Trustee 1.50 X 0 0 0 Karen Sonneborn Trustee 1.50 X 0 0 0 Abigail Spangler Trustee 1.50 X 0 0 0 Mark J Sullivan Trustee 1.50 X 0 0 0 John J Kowalik Head of School 60.00 X 578349 0 116089 Dyana Conroy CFO/COO 60.00 X 256984 0 81469 Barbara Overstreet Director, Advancement 50.00 X 192064 0 37112 John Mathews Head, Middle & Intermediate Schools 50.00 X 157908 0 70226 Alexander Thomas Interim Dir., Admission & Fin. Aid 50.00 X 143149 0 23562 Cassandra Blanchard Director, Girls Athletics 50.00 X 140245 0 21260 Nancy Powell Head, Lower School 50.00 X 144579 0 31518 1613278 0 381236 32 0 1 0 sagE DINING SERVICES INC 1402 York Rd lutherville MD 21093 food service 938152 Graham-Pelton Associates Inc 39 BEECHWOOD RD SUMMIT NJ 07901 Consultant 286240 C J MAINTENANCE INC 9254 Bendix Road Columbia MD 21045 Janitorial 272418 Dynalectric Company 22930 Shaw Road Ste 100 Dulles VA 20166 General Contractor 260879 Rohan Construction Group Inc 8300 Arlington Boulevard Fairfax VA 22031 General Contractor 221553 8 522385 13948679 1795223 14471064 TUITION 900099 39608359 39608359 SUMMER PROGRAMS 900099 2123274 2123274 TRANSPORTATION 900099 1033616 968597 65019 ENRICHMENT PROGRAM 900099 146240 146240 EXTENDED DAY 900099 97217 97217 79856 79856 43088562 436925 436925 10889277 10766205 500 123072 -500 122572 122572 490195 522385 164202 325993 325993 108945 67040 41905 41905 OTHER INCOME 900099 175556 175556 175556 58662577 43023543 65019 1102951 4114365 4114365 1045244 897922 98044 49278 19100727 16679244 1576668 844815 1207638 1044817 105910 56911 2697591 2230888 322953 143750 1406136 1237225 111724 57187 83636 40776 16819 26041 66750 45467 18754 2529 269184 269184 17573 17573 868291 627916 210493 29882 44489 30175 12446 1868 736974 514688 110150 112136 694867 516690 157002 21175 1398835 1017263 336229 45343 280361 262950 17411 447924 345112 20669 82143 1563804 1065186 439364 59254 3337024 2273017 937565 126442 384018 280716 91026 12276 Summer Program 1793904 1793904 Department expenses 1415645 1393439 19567 2639 Food and entertainment 949446 646852 266635 35959 Bad Debts 211295 45537 18783 146975 314578 314722 -7139 6995 44450299 37418871 4881235 2150193 300 300 24672653 32027331 173175 8893677 96868 155000 58603 76018 726750 280805 117153195 36731018 81003453 80422177 2928315 2841834 33623639 36287746 561802 632495 143845558 161617383 2802958 2966348 18638589 19623992 37183505 35767175 1292589 1238078 4342842 2888581 64260483 62484174 X 76046690 86323662 873407 10078477 2664978 2731070 79585075 99133209 143845558 161617383 X 14212278 3755708 1580148 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35924093 4185401 4226926 1451085 42885335 35807482 2078381 -32417 1929353 35924093 35280681 396280 692522 562001 35807482 30671763 804573 5164382 1360037 35280681 27322984 339060 3476390 466671 30671763 0.92700 0.06370 0.00930 0 0 9754656 9754656 95550597 28110588 67440009 11007043 8620430 2386613 840899 840899 80422177 LIMITED PARTNERSHIPS 3006734 C Common fund investments 33281012 F 36287746 INTEREST RATE SWAP agreement 2684000 Deferred Compensation 204581 2888581 X 58374202 3755708 -4111123 -355415 58729617 -67040 -67040 58662577 38826068 -1513108 -1513108 40339176 4111123 4111123 44450299 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, 2017, 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 2014. Part XI, Line 2d - Other Adjustments: FINANCIAL AID NETTED AGAINST TUITION -4,111,123. Part XI, Line 4b - Other Adjustments: Cost of goods sold reported on Part VIII, line 10b - bookstore -67,040. Part XII, Line 2d - Other Adjustments: Cost of goods sold reported on Part VIII, line 10b - bookstore 67,040. Unrealized loss on swap -1,580,148. Part XII, Line 4b - Other Adjustments: FINANCIAL AID NETTED AGAINST TUITION 4,111,123. 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 4729618 0 0 0 0 0 0 4729618 0 4729618 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 269184 -269184 269184 -269184 Spring Auction 931150 515883 415267 129347 Fall Frolic Carnival 71789 4850 66939 34855 1 9641 1652 7989 1012580 522385 490195 164202 164202 325993 1 FINANCIAL AID AWARDS TO STUDENTS 182 4111123 VARIOUS AWARDS TO TEACHERS 1 3242 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 364291 0 0 0 214058 0 18550 0 100684 0 697583 0 0 0 Dyana Conroy CFO/COO 226078 0 0 0 30906 0 36527 0 49392 0 342903 0 0 0 Barbara Overstreet Director, Advancement 190791 0 0 0 1273 0 13864 0 25978 0 231906 0 0 0 John Mathews Head, Middle & Intermediate Schools 157507 0 0 0 401 0 13201 0 59471 0 230580 0 0 0 Alexander Thomas Interim Dir., Admission & Fin. Aid 137681 0 5000 0 468 0 14666 0 9932 0 167747 0 0 0 Cassandra Blanchard Director, Girls Athletics 139829 0 0 0 416 0 13341 0 9132 0 162718 0 0 0 Nancy Powell Head, Lower School 142619 0 0 0 1960 0 14871 0 18952 0 178402 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 - $67,626 DYANA CONROY - $20,954 JOHN MATHEWS - $33,527 Part I, Line 4b Dyana Conroy participates in a supplemental nonqualified retirement plan 457(f). The school contributed $20,000 during the calendar year. Part I, Line 7 A Performance based bonus was paid to Alexander Thomas. 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 4343673 16430000 16430000 2004 1 0 1 1 B 4861163 20570000 20570000 2006 0 0 1 1 C 1527988 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 27 1795223 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 A, line 4 Approval of Amendments to Potomac School Bylaws April 6, 2017: Article II.A Language of Bylaw After Amendment: Composition of the Board and Election of Trustees. The Board of Trustees (the Board) of the School shall consist of the Head of School, as a non-voting trustee, and from seventeen to twenty-six elected and voting trustees. If the number of elected and voting trustees falls below seventeen, the Board will rectify the situation within thirty days as described in Section II.A.1 below (except that the timing for conducting elections and effectiveness of such elections shall occur on an expedited basis). In the case of a Third Term Trustee, an Extended Service Chair or an Extended Service Officer, the Board may exceed the limit of twenty-six elected and voting trustees. Article II.A.2 Language of Bylaw After Amendment: Term. Board trustees elected in the ordinary cycle, to fill positions beginning July 1 of a given year, shall serve a term of three years. The first term of any person elected to the Board to fill a vacancy commencing on a date other than July 1 shall end on June 30 of the third calendar year after the year in which the person is elected. The Board may re-elect a trustee to one additional, consecutive three-year term. If determined by the Board to be in the best interests of the School, the Board may re-elect a trustee to serve a third consecutive three-year term (a Third Term Trustee). The Board may elect a former trustee to serve one or more new terms (up to a maximum of three new terms in compliance with the preceding provisions) that begin at least one year after the former trustee's last term ended. No person may serve as a trustee for more than three consecutive terms. The Board may extend the term as trustee of an Officer of the Board as provided in Sections II.B.1 and II.B.2 below with respect to an Extended Service Chair or an Extended Service Officer. Article II.B.1 Language of Bylaw After Amendment: Chair. The Board shall elect a Chair for a three-year term after the Committee on Trustees recommends one or two candidates. At the end of the three-year term, the Board may extend the Chair's term by one additional year on the grounds that extraordinary circumstances and the best interests of the School justify such extension. In any case where the Chair's term is extended for a fourth year, the Board shall elect a Chair-Elect to serve as Chair at the conclusion of the fourth year. The Board shall not extend the Chair's term beyond the fourth year. When, due to early termination of a Chair during the academic year, because of resignation, removal, or death, the new Chair's three-year term shall end on June 30 of the second calendar year after election to that position. In the event that the Chair's service as a trustee would otherwise end prior to the end of his or her term as Chair, his or her term as trustee shall be automatically extended as necessary to allow completion of service as Chair (an Extended Service Chair). The Chair shall preside at meetings of the Board, shall in consultation with the Head set the agendas for meetings of the Board, and shall be responsible for providing leadership and direction in all aspects of the Board's work. Article II.B.2 Language of Bylaw After Amendment: Appointment of Other Officers. By July 1 of each year, the Chair for the fiscal year beginning on July 1 shall appoint the Vice-Chair, Treasurer, and Secretary after consultation with the Committee on Trustees and approval by the Board. The Board shall not extend a trustee's term to allow service as Vice-Chair, Treasurer, or Secretary unless determined by the Board to be in the best interests of the School (an Extended Service Officer). If the Board Chair does not appoint an officer by July 1, the existing officer shall have all the powers and duties of that officer until a new officer is appointed, provided that officer's term as trustee has not expired (unless that officer becomes an Extended Service Officer). 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 1,580,148.