2017-05-11T14:35:27-05:00 2016-06-30 420714325 RSM US LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2015-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3367212615 601 S CHURCH ST WINSTONSALEM NC 27101 JEREMY SHREVE CFO 3367212615 2017-05-11 1 YONG ZHANG P01249785 3362724551 2015 2021-01-29 14:40:06Z DE LORRAINE STERRITT P 601 S CHURCH ST WINSTONSALEM NC 27101 51419278 0 X WWW.SALEM.EDU, WWW.SALEMACADEMY.COM X 1772 NC SALEM COLLEGE IS AN INDEPENDENT COLLEGE COMMITTED TO THE LIBERAL ARTS AND QUALITY PROFESSIONAL PREPARATION. FOUNDED BY THE MORAVIAN CHURCH IN 1772 AS A SCHOOL FOR GIRLS, SALEM STRIVES TO SET ITS SIGNATURE UPON ITS STUDENTS BY ENCOURAGING THEM TO RECOGNIZE AND STRENGTHEN THEIR HUMAN FACULTIES AND THEIR CAPACITIES FOR SERVICE, PROFESSIONAL LIFE, AND LEADERSHIP. IN LIGHT OF SUCH EVIDENCE THAT SUCH POWERS FLOURISH WHEN WOMEN LIVE AND LEARN WITHIN A COMMUNITY DEDICATED TO THEIR EDUCATION, SALEM AFFIRMS ITS COMMITMENT TO YOUNG WOMEN IN A RESIDENTIAL SETTING. AS A RESULT OF THE HISTORICAL EVOLUTION OF ITS MISSION, THE COLLEGE EDUCATES BOTH WOMEN AND MEN IN THE COMMUNITY THROUGH ITS CONTINUING STUDIES PROGRAM AND GRADUATE PROGRAMS IN EDUCATION. 31 31 885 31 0 0 7429601 4727782 30195106 31285875 2387334 2408461 1005686 920881 41017727 39342999 14542225 15601198 0 0 14211790 14705084 0 0 1291999 12134713 12480257 40888728 42786539 128999 -3443540 114321746 105372977 34297708 34248064 80024038 71124913 X SALEM COLLEGE, A LIBERAL ARTS COLLEGE FOR WOMEN, VALUES ITS STUDENTS AS INDIVIDUALS, DEVELOPS THEIR UNIQUE POTENTIAL, AND PREPARES THEM TO CHANGE THE WORLD.NOW IN ITS THIRD CENTURY OF SUSTAINING A COMMUNITY IN WHICH GIRLS LEARN BEST, SALEM ACADEMY REMAINS DEDICATED TO FOSTERING THE INTELLECTUAL, SPIRITUAL, SOCIAL, AND PHYSICAL GROWTH OF YOUNG WOMEN.FOUNDED IN 1772 BY THE MORAVIAN CHURCH, SALEM ACADEMY FLOURISHES TODAY AS AN INDEPENDENT, COLLEGE-PREPARATORY SCHOOL THAT CELEBRATES ITS DIVERSITY AND AFFIRMS EACH STUDENT'S UNIQUENESS.AS ADVOCATES FOR WOMEN IN LEADERSHIP ROLES, WE RECOGNIZE OUR PLACE IN A GLOBAL SOCIETY AND PERSIST IN OUR COMMITMENT TO A LIFETIME OF LEARNING. WE PLEDGE OURSELVES TO RETAIN AND NURTURE THOSE VALUES WHICH ENCOURAGE EACH STUDENT TO TAKE RISKS, SHOW INTEGRITY, AND DISCOVER HER PASSION AS SHE SETS OUT ON HER OWN JOURNEY. 0 0 34572813 15601198 32236083 SALEM ACADEMY & COLLEGE PROVIDES A COLLEGE EDUCATION TO APPROXIMATELY 1,000 FULL-TIME STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 170 FULL-TIME STUDENTS (GRADES 9-12) AND PROVIDES CONTINUING EDUCATION TO APPROXIMATELY 250 PART-TIME STUDENTS THROUGHOUT THE COMMUNITY. THE COLLEGE ALSO PROVIDES ADEQUATE FOOD SERVICES AND HOUSING TO APPROXIMATELY 540 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM COLLEGE AND APPROXIMATELY 90 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM ACADEMY. 34572813 1 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 1390 0 1 885 1 0 0 0 0 0 1 1 0 0 0 0 X 31 31 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 1 1 1 0 NC X JEREMY SHREVE 3367212600 601 S CHURCH ST WINSTON SALEM NC 27101 STEPHEN G JENNINGS CHAIR 1.00 X X 0 0 0 LEIGH FLIPPIN KRAUSE VICE CHAIR 1.00 X X 0 0 0 M ELIZABETH RADER TREASURER 1.00 X X 0 0 0 RAMON VELEZ SECRETARY 1.00 X X 0 0 0 JULIA CARDWELL ARCHER TRUSTEE 1.00 X 0 0 0 DEANA BASS TRUSTEE 1.00 X 0 0 0 ELIZABETH COPELAND BECHER TRUSTEE 1.00 X 0 0 0 JO SEPHENSON BROWN TRUSTEE 1.00 X 0 0 0 D WAYNE BURKETTE TRUSTEE 1.00 X 0 0 0 ROBIAUN L CHARLES TRUSTEE 1.00 X 0 0 0 L DUANE DAVIS TRUSTEE 1.00 X 0 0 0 MCDARA P FOLAN III TRUSTEE 1.00 X 0 0 0 GINGER RENICK GRIFFIN TRUSTEE 1.00 X 0 0 0 ANN STONE HANES TRUSTEE 1.00 X 0 0 0 SALLIE CRAIG TUTON HUBER TRUSTEE 1.00 X 0 0 0 CAMILLE DISHER MCDOWELL TRUSTEE 1.00 X 0 0 0 CHI-CHI ZIGLAR MESSICK TRUSTEE 1.00 X 0 0 0 WILLIAM R PHILLIPS TRUSTEE 1.00 X 0 0 0 S MARGARET PIKE TRUSTEE 1.00 X 0 0 0 SYDNOR COZART PRESNELL TRUSTEE 1.00 X 0 0 0 REBECCA HEWIT RAUENHORST TRUSTEE 1.00 X 0 0 0 MARY WHITE RIGHTS TRUSTEE 1.00 X 0 0 0 LUCY ROSE TRUSTEE 1.00 X 0 0 0 G DEE SMITH TRUSTEE 1.00 X 0 0 0 SUSAN LUNDEEN SMITH TRUSTEE 1.00 X 0 0 0 MARY LOUISE FORD STOTT TRUSTEE 1.00 X 0 0 0 NANCY TAYLOR SUMNER TRUSTEE 1.00 X 0 0 0 LAURA SIDES WATSON TRUSTEE 1.00 X 0 0 0 D JOEFF WILLIAMS TRUSTEE 1.00 X 0 0 0 DANIELLE THOMASON WILLIAMS TRUSTEE 1.00 X 0 0 0 WALLACE C WU TRUSTEE 1.00 X 0 0 0 LORRAINE STERRITT PRESIDENT 40.00 X 218824 0 14698 JENNIFER LYNCH VP INSTITUATIONAL ADVANCEMENT 40.00 X 37465 0 2420 ROSEMARY WHEELER EXECUTIVE SECRETARY 40.00 X 41971 0 11758 VICKI SHEPPARD VP INSTITUATIONAL ADVANCEMENT 40.00 X 79696 0 8855 DEREK BRYAN CFO 40.00 X 111746 0 17890 SUSAN CALOVINI VP ACADEMIC AFFAIRS 40.00 X 123889 0 18394 KARL SJOLUND HEAD OF SCHOOL 40.00 X 130199 0 21556 743790 0 95571 4 0 1 0 FRANK L BLUM CONSTRUCTION CO PO BOX 4153 WINSTON SALEM NC 27115 CONSTRUCTION 5514757 ARAMARK SERVICES INC PO BOX 906023 CHARLOTTE NC 28290 DINING SERVICES 1984058 UNIVERSAL PROTECTION SERVICE LLC 26375 NETWORK PLACE CHICAGO IL 60673 SECURITY 433576 KEIGER GRAPHIC COMMUNICATIONS 3735 KIMWELL DRIVE WINSTON SALEM NC 27103 PRINTING SERVICES 429695 RESOURCE PAINTING INC PO BOX 1428 YADKINVILLE NC 27055 PAINTING AND MAINTENANCE 236125 12 125686 4602096 385893 4727782 TUITION AND FEES 611710 23246610 23246610 FOOD SERVICES 611710 4152723 4152723 HOUSING REVENUE 611710 3781214 3781214 BOOK STORE REVENUE 611710 105328 105328 31285875 1656461 1656461 67878 97205 -29327 -29327 -29327 12153112 577962 11679581 299493 473531 278469 752000 752000 OTHER REVENUE 611710 480475 480475 GOVERNOR'S SCHOOL 611710 367244 367244 COMMUNITY SERVICE 611710 102489 102489 950208 39342999 32236083 0 2379134 15601198 15601198 820833 492500 328333 11339308 8756973 2130440 451895 474204 346730 91609 35865 1209892 692421 444948 72523 860847 606635 216104 38108 41010 41010 98961 98961 95145 95145 1268086 324439 850661 92986 565601 359353 198212 8036 739143 392440 337816 8887 382384 177389 204995 429477 370244 28092 31141 785642 785642 2168182 1734545 433637 310245 310245 AUXILIARY ENTERPRISE 1960299 1960299 REPAIRS & MAINTENANCE 1075021 861025 213996 UTILITIES 893740 714992 178748 COMMUNICATIONS 514830 411864 102966 1152491 476624 451642 224225 42786539 34572813 6921727 1291999 11824 8358 2830237 6487018 4462702 3329790 786479 247863 4000 4000 75539658 40058913 34592781 35480745 60133162 52651215 11500561 7163988 114321746 105372977 2952714 2265222 1363877 1341939 23544497 22256200 185491 226031 5019945 7285097 1231184 873575 34297708 34248064 X 1261491 2261262 20143591 22450804 58618956 46412847 80024038 71124913 114321746 105372977 X -3443540 -1575991 -3444883 -434711 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 0.00 1 0 0 1 1 20.00 1500 1 X X X 0 0 1 X 61737106 1100626 458856 7463260 55833328 62912119 876152 1024959 3076124 61737106 54511646 3047005 8058852 2705384 62912119 50202553 1044083 5920370 2655360 54511646 52844007 1805618 -389170 2670112 51590343 0.74170 0.25830 0 0 3149307 3149307 56364025 30968698 25395327 13982885 9090215 4892670 2043441 2043441 35480745 SPLIT INTEREST AGREEMENTS 2321504 CASH SURRENDER VALUE OF LIFE INSURANCE 956135 INTEREST IN OIL WELL 50389 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 3835960 7163988 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 228333 INTEREST RATE SWAP LIABILITY 645242 873575 X 21733159 -1575991 -434711 -2010702 23743861 95145 15503993 15599138 39342999 27187401 0 27187401 95145 15503993 15599138 42786539 PART II, LINE 9: SALEM'S HISTORIC CONSERVATION EASEMENT IS FOR A HISTORIC STRUCTURE ON CAMPUS THAT IS USED IN SALEM'S DAILY OPERATIONS. REVENUES AND EXPENSES ARE REPORTED IN THE NORMAL OPERATIONS OF THE INSTITUTION AND THE STRUCTURE IS RECORDED WITH OTHER PROPERTY ON THE BALANCE SHEET. PART III, LINE 4: SALEM DOES NOT RECOGNIZE REVENUE FROM THE RECEIPT OF HISTORICAL TREASURES OR WORKS OF ART, BUT MAKES THEM AVAILABLE MAINLY FOR EXHIBITION AND SCHOLARLY RESEARCH. PART IV, LINE 2B: FUND BALANCES OF STUDENT ACTIVITY ORGANIZATIONS AND HEALTH INSURANCE. PART V, LINE 4: SALEM'S ENDOWMENT FUNDS ARE USED TO FUND SCHOLARSHIPS AND FOR THE OPERATING EXPENSES OF SALEM ACADEMY AND COLLEGE. PART X, LINE 2: MANAGEMENT EVALUATED SALEM'S TAX POSITIONS AND CONCLUDED THAT SALEM HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THE INCOME TAXES TOPIC OF THE FASB ASC. SALEM BELIEVES IT DOES NOT MEET ANY FILING REQUIREMENTS FOR THE FORM 990-T AND, ACCORDINGLY, HAS NOT FILED A FORM 990-T. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF TRUSTS AND SPLIT INTEREST AGREEMENTS -671,142. GAIN ON INTEREST RATE SWAP 236,431. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE -97,205. RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 15,601,198. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 15,601,198. RECLASS RENT EXPENSE TO NET REVENUE -97,205. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 SEE PART II SCHEDULE E, PART I, LINE 6 SALEM STUDENTS RECEIVE A VARIETY OF FEDERAL AND STATE GRANTS AND LOANS, INCLUDING FEDERAL PELL GRANTS, FEDERAL DIRECT STUDENT LOANS, NC NEED-BASED SCHOLARSHIPS, AND NC GOLDEN LEAF FOUNDATION SCHOLARSHIPS. SCHEDULE E, LINE 3 - EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION: THE NONDISCRIMINATORY POLICY IS INCLUDED ON MARKETING MATERIALS AND EMPLOYMENT ADVERTISEMENTS FOR THE SCHOOL. 1 SCHOLARSHIPS 909 15601198 0 PART I, LINE 2: SALEM GRANTS FUNDS IN THE WAY OF SCHOLARSHIPS TO QUALIFIED STUDENTS IN ITS ACADEMY AND COLLEGE. SALEM MAINTAINS RECORDS ON ALL STUDENTS RECEIVING FINANCIAL AID IN THE FORM OF SALEM GRANTS OR FROM OTHER SOURCES. SALEM COLLEGE COMPLIES WITH ALL APPLICABLE FEDERAL RULES AS IT RELATES TO COLLEGE FINANCIAL AID. SCHEDULE I, PART III, COLUMN B: THE VAST MAJORITY OF SALEM'S COLLEGE STUDENTS RECEIVE SOME FORM OF SCHOLARSHIP FROM THE COLLEGE. SALEM PROVIDES THIS ASSISTANCE THROUGH ENDOWED SCHOLARSHIPS AND INSTITUTIONAL REMISSION (DISCOUNT). SALEM COMPLIES WITH ALL FEDERAL AND STATE REGULATION REGARDING THE REWARDING OF STUDENT FINANCIAL AID AND FILES THE REQUISITE INFORMATION WITH FEDERAL AND STATE AGENCIES AS IT PERTAINS TO ITS STUDENTS. X 1 1 X X X 0 0 0 0 0 0 0 0 0 LORRAINE STERRITT PRESIDENT 218824 0 0 0 0 0 5610 0 9088 0 233522 0 0 0 KARL SJOLUND HEAD OF SCHOOL 130199 0 0 0 0 0 6951 0 14605 0 151755 0 0 0 PART I, LINE 1A THE COLLEGE PRESIDENT AND THE HEAD OF SCHOOL ARE CONTRACTUALLY OBLIGATED TO LIVE IN HOUSING ADJACENT TO CAMPUS. SUCH HOUSING IS FOR THE CONVENIENCE OF THE ORGANIZATION; IT IS NON-TAXABLE COMPENSATION TO THE RECIPIENTS. A NC CAPITAL FACILITIES FINANCE AGENCY 2005-01-01 15000000 FACILITIES RENOVATION PROJECTS 0 0 0 B NC CAPITAL FACILITIES FINANCE AGENCY 2013-01-01 12000000 CONSTRUCTION/RENOVATION 0 0 0 A 3700000 15000000 165061 14834939 2008 0 0 1 1 B 812751 12000000 162642 11837358 2014 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 A 0 0 0 0 1 1 BB&T 10.000000000000 0 0 0 0 1 B 0 0 0 0 1 0 0 0 1 A 1 B 1 X 2 108650 FMV X 6 168243 FMV X FURNITURE AND MISC 3 99550 FMV X PIANO 1 9450 FMV 2 0 1 0 PART I, COLUMN (B): THE NUMBER IN COLUMN B REFLECTS THE NUMBER OF CONTRIBUTORS FORM 990, PART VI, SECTION B, LINE 11 A DRAFT OF THE FULL 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. THE APPROVED DRAFT IS POSTED TO THE BOARD'S SECURE PORTAL, WITH NAMES AND ADDRESSES REDACTED FROM SCHEDULE B TO REDUCE RISK OF DONOR DISCLOSURE. THE BOARD IS NOTIFIED THAT THE RETURN HAS BEEN POSTED AND PROVIDED A TIME FRAME IN WHICH COMMENTS OR QUESTIONS SHOULD BE MADE. THE RETURN IS FILED AFTER THAT DATE. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR, THE BOARD OF TRUSTEES AND EXECUTIVE TEAM OF SALEM ARE ASKED TO REVIEW THE CONFLICT OF INTEREST POLICY, REVIEW SALEM'S LIST OF MAJOR VENDORS AND PROVIDE A SIGNED STATEMENT STATING ANY RELATIONSHIPS WITH THESE VENDORS AND ANY OTHER ITEMS THAT MAY HAVE THE POTENTIAL TO BE A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR THE PRESIDENT IS DETERMINED BY THE BOARD OF TRUSTEES. THE PRESIDENT IS EVALUATED ANNUALLY AND COMPENSATION IS REVIEWED BY THE EXECUTIVE COMMITTEE AND THE FULL BOARD. THE PRESIDENT REVIEWS THE COMPENSATION OF OTHER EXECUTIVE TEAM MEMBERS AND REPORTS TO THE BOARD WHO REVIEWS THESE DECISIONS. SALEM MAKES USE OF SURVEY DATA PROVIDED BY NORTH CAROLINA INDEPENDENT COLLEGES AND UNIVERSITIES, THE COUNCIL OF INDEPENDENT COLLEGES AND OTHER SOURCES TO DETERMINE THE APPROPRIATE LEVEL OF COMPENSATION FOR OFFICERS/KEY EMPLOYEES AND WOULD ENGAGE ADDITIONAL OUTSIDE CONSULTANTS IF NECESSARY. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS AND GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST FROM THE CFO'S OFFICE FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -671,142. GAIN ON INTEREST RATE SWAP 236,431. FORM 990, PART XII, LINE 2C THE ORGANIZATION'S OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED SINCE THE PRIOR YEAR. FORM 990, PART XI, LINE 8 DURING THE FISCAL YEAR ENDED JUNE 30, 2016, SALEM DISCOVERED THAT AN ORGANIZATION, WHICH WAS HOLDING FUNDS GIFTED BY DONORS IN PRIOR YEARS FOR SALEM'S BENEFIT, HAD VARIANCE POWER OVER SUCH FUNDS. ACCORDINGLY, SALEM'S INTERESTS IN SUCH FUNDS SHOULD NOT HAVE BEEN RECOGNIZED AS AN ASSET IN ITS FINANCIAL STATEMENTS. THE ADJUSTMENT RESULTED IN A DECREASE OF $3,546,471 IN PERMANENTLY RESTRICTED NET ASSETS AS OF JUNE 30, 2014, AND AN INCREASE IN PERMANENTLY RESTRICTED CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS AND PERPETUAL TRUSTS OF $101,588 FOR THE YEAR ENDED JUNE 30, 2015. FORM 990, PART I, LINE 6 VOLUNTEERS TYPICALLY CONSIST OF VOLUNTEER ASSISTANTS WITH ATHLETIC AND PERFORMING ARTS PROGRAMS AND ARE ALL PART TIME AND TEMPORARY IN NATURE. PART VII, SECTION A, COLUMN F: THE ORGANIZATION, IN A FULL TRANSPARENCY POSTURE TO REPORTING, IS REPORTING ALL BENEFITS IN FULL IN COLUMN F, PART VII AND NOT APPLYING THE $10,000 PER ITEM EXCEPTION FOR CERTAIN BENEFITS. SALEM RECREATIONAL FIELDS LLC 601 SOUTH CHURCH STREET WINSTON SALEM NC 27101 562272294 RECREATION FIELD NC 0 737006 SALEM ACADEMY AND COLLEGE