2017-02-11T19:54:12-06:00 2016-06-30 420714325 RSM US LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2015-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 1301 POTOMAC SCHOOL RD MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2017-02-11 1 WILLIAM E TURCO CPA P00369217 3012963600 2015 2021-01-29 14:40:06Z X JOHN KOWALIK 1301 POTOMAC SCHOOL RD MCLEAN VA 22101 52469907 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. 23 23 524 1080 69125 -2108 3004073 3099031 39049474 40686100 506199 597949 634857 517307 43194603 44900387 4169047 3893893 0 0 23524508 24155875 0 0 1543586 13950565 14504593 41644120 42554361 1550483 2346026 141998657 143845558 62837718 64260483 79160939 79585075 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 32722450 3893893 38426954 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1030 STUDENTS. 2584400 2371931 SUMMER DAY CAMP AND ACADEMIC REVIEW. 35306850 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 1 0 0 0 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 1 124 0 1 524 1 1 1 0 0 0 0 1 1 0 0 0 0 X 23 23 0 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 1.50 X X 0 0 0 JOHN K DELANEY VICE-CHAIR 1.50 X X 0 0 0 SAMEER BHARGAVA 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 NATALIE F BUSH TRUSTEE 1.50 X 0 0 0 VICTORIA CLARKE TRUSTEE 1.50 X 0 0 0 PATRICIA D COLEMAN TRUSTEE 1.50 X 0 0 0 DAX 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 JAMES B FLEMING 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 MARK J SULLIVAN TRUSTEE 1.50 X 0 0 0 LINDA D TURNER TRUSTEE 1.50 X 0 0 0 JOHN J KOWALIK HEAD OF SCHOOL 60.00 X 560995 0 110635 DYANA CONROY CFO/COO 60.00 X 126092 0 35878 BARBARA OVERSTREET DIRECTOR, ADVANCEMENT 50.00 X 188320 0 35393 DONALD FIRKE HEAD, UPPER SCHOOL 50.00 X 163960 0 77244 WILLIAM COOK ASST HOS FOR ACADEMICS 50.00 X 157859 0 28839 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 50.00 X 156784 0 19601 JOHN MATHEWS HEAD, MIDDLE & INTERMEDIATE SCHOOLS 50.00 X 149480 0 62602 1503490 0 370192 29 0 1 0 SAGE DINING SERVICES INC 1402 YORK RD LUTHERVILLE MD 21093 FOOD SERVICE 832484 BOWA BUILDERS INC 7900 WESTPARK DRIVE STE A180 MCLEAN VA 22101 GENERAL CONTRACTOR 466135 C J MAINTENANCE INC 9254 BENDIX ROAD COLUMBIA MD 21045 JANITORIAL 271108 CONCENTUSNET PO BOX 400 MCLEAN VA 22101 TECHNOLOGY CONSULTING 257621 OLDE RED LLC 3684 CENTERVIEW DRIVE STE 120 CHANTILLY VA 20151 GENERAL CONTRACTOR 210272 6 550858 2548173 282697 3099031 TUITION 900099 37029321 37029321 SUMMER PROGRAMS 900099 2371931 2371931 TRANSPORTATION 900099 986736 917611 69125 ENRICHMENT PROGRAM 900099 142533 142533 MUSIC LESSON FEES 900099 82257 82257 73322 73322 40686100 509936 509936 3034 0 3034 3034 3034 7215704 232555 7114777 245469 100927 -12914 88013 88013 425144 550858 138335 286809 286809 116493 70939 45554 45554 OTHER INCOME 900099 181910 181910 181910 44900387 40798885 69125 933346 3893893 3893893 1033673 870075 123945 39653 18055901 15616995 1760090 678816 1187591 1010395 130791 46405 2529551 2039791 389993 99767 1349159 1168746 134809 45604 59559 37722 20223 1614 66050 41833 22427 1790 1045585 564770 228800 252015 41412 26228 14061 1123 741934 516036 141277 84621 846481 604201 224368 17912 1589317 1092863 459751 36703 283482 281507 1975 401789 322842 21570 57377 1623957 1028528 551410 44019 3165364 2004773 1074789 85802 360035 250929 101040 8066 SUMMER PROGRAM 1703840 1703840 DEPARTMENT EXPENSES 1444840 1404675 37195 2970 FOOD AND ENTERTAINMENT 830055 525713 281842 22500 RECRUITING 155563 114605 36911 4047 145330 185890 -51367 10807 42554361 35306850 5703925 1543586 500 300 20204322 24672653 291721 173175 97597 96868 69224 58603 777631 726750 115801187 34797734 82514369 81003453 2912066 2928315 34203196 33623639 928031 561802 141998657 143845558 2821610 2802958 16868004 18638589 38543216 37183505 1344895 1292589 3259993 4342842 62837718 64260483 X 75638391 76046690 904525 873407 2618023 2664978 79160939 79585075 141998657 143845558 X 2346026 -535182 -1386708 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35807482 2078381 -32417 1929353 35924093 35280681 396280 692522 562001 35807482 30671763 804573 5164382 1360037 35280681 27322984 339060 3476390 466671 30671763 28586826 320990 -737127 847705 27322984 0.92420 0.07420 0.00160 0 0 9754656 9754656 94982487 25501936 69480551 10651023 9295798 1355225 413021 413021 81003453 LIMITED PARTNERSHIPS 1704787 C COMMON FUND INVESTMENTS 31918852 F 33623639 INTEREST RATE SWAP AGREEMENT 4264149 DEFERRED COMPENSATION 78693 4342842 X 40559121 -535182 -3877023 -4412205 44971326 -70939 -70939 44900387 40134985 1457647 1457647 38677338 3877023 3877023 42554361 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, 2016, 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 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -3,877,023. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -70,939. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 70,939. UNREALIZED LOSS ON SWAP 1,386,708. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 3,877,023. 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 4966495 0 0 0 0 0 0 4966495 0 4966495 0 0 0 0 0 0 SPRING AUCTION 908861 544074 364787 115140 FALL FROLIC CARNIVAL 57957 5800 52157 23195 1 9184 984 8200 976002 550858 425144 138335 138335 286809 1 FINANCIAL AID AWARDS TO STUDENTS 166 3877023 VARIOUS AWARDS TO TEACHERS 10 16870 PART I, LINE 2: THE POTOMAC SCHOOL UTILIZES THE SERVICES OF EITHER THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, STUDENT SCHOLARSHIP SERVICES (SSS), OR TUITION AID DATA SERVICES (TADS) 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 1 0 0 0 0 0 0 1 0 JOHN J KOWALIK HEAD OF SCHOOL 358294 0 0 0 202701 0 18550 0 95195 0 674740 0 0 0 DYANA CONROY CFO/COO 108360 0 0 0 17732 0 7875 0 40429 0 174396 0 0 0 BARBARA OVERSTREET DIRECTOR, ADVANCEMENT 185395 0 2000 0 925 0 13458 0 24585 0 226363 0 0 0 DONALD FIRKE HEAD, UPPER SCHOOL 161750 0 0 0 2210 0 12801 0 66385 0 243146 0 0 0 WILLIAM COOK ASST HOS FOR ACADEMICS 155689 0 0 0 2170 0 17796 0 18419 0 194074 0 0 0 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 70077 0 0 0 86707 0 8159 0 12575 0 177518 0 0 0 JOHN MATHEWS HEAD, MIDDLE & INTERMEDIATE SCHOOLS 142180 0 2000 0 5300 0 11978 0 57887 0 219345 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 - $16,764 DONALD FIRKE - $40,609 JOHN MATHEWS - $27,940 PART I, LINE 4A CHARLOTTE NELSEN RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $74,175. THIS AMOUNT IS INCLUDED AS OTHER REPORTABLE COMPENSATION IN PART II, COLUMN B (III). PART I, LINE 7 PERFORMANCE BASED BONUSES WERE PAID TO BARBARA OVERSTREET AND JOHN MATHEWS. 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 3901021 16430000 16430000 2004 1 0 1 1 B 4293587 20570000 20570000 2006 0 0 1 1 C 1121887 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 33 255427 CONFIRMATION FROM BROKER X VIDEO 1 27270 COST 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 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 -1,386,708.