2016-01-29T12:55:51-06:00 2015-06-30 420714325 RSM US LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2014-07-01 540562160 THE POTOMAC SCHOOL POTO 7033564100 PO BOX 430 MCLEAN VA 22101 JOHN KOWALIK HEAD OF SCHOOL 7033564100 2016-01-28 1 WILLIAM E TURCO CPA P00369217 3012963600 2014 2016-04-25 22:37:26Z JOHN KOWALIK PO BOX 430 MCLEAN VA 22101 65800794 0 X WWW.POTOMACSCHOOL.ORG X 1907 DC TO PREPARE STUDENTS TO ACHIEVE ACADEMICALLY AND TO LEAD HEALTHY, PRINCIPLED, AND SUCCESSFUL LIVES. 23 23 570 1080 104759 -33968 2758068 3004073 37669215 39049474 497644 506199 711904 634857 41636831 43194603 4096085 4169047 0 0 22899534 23524508 0 0 1328436 16989750 13950565 43985369 41644120 -2348538 1550483 141356624 141998657 63675063 62837718 77681561 79160939 TO PREPARE KINDERGARTEN THROUGH TWELFTH GRADE STUDENTS TO ACHIEVE ACADEMICALLY AND TO LEAD HEALTHY, PRINCIPLED, AND SUCCESSFUL LIVES. 0 0 32799686 4169047 36986866 PROVIDING EDUCATION FROM KINDERGARTEN TO THE TWELFTH GRADE FOR APPROXIMATELY 1025 STUDENTS. 2586156 2188475 SUMMER DAY CAMP AND ACADEMIC REVIEW. 35385842 1 1 0 0 0 0 0 0 0 1 1 0 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 1 129 0 1 570 1 1 1 0 0 0 0 1 1 0 0 0 0 X 23 23 0 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 H LAWRENCE CULP JR CHAIR 1.50 X X 0 0 0 MARJORIE P BRENNAN CHAIR-ELECT & VICE CHAIR 1.50 X X 0 0 0 JAMES R SOCAS TREASURER 1.50 X X 0 0 0 MARY LOUISE LEIPHEIMER SECRETARY 1.50 X X 0 0 0 J KEITH AUSBROOK TRUSTEE 1.50 X 0 0 0 SAMEER BHARGAVA 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 ALAN J DABBIERE TRUSTEE 1.50 X 0 0 0 MICHAEL L DAVIS TRUSTEE 1.50 X 0 0 0 JOHN K DELANEY TRUSTEE 1.50 X 0 0 0 DAVID W DUPREE 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 LYNNE F O'BRIEN TRUSTEE 1.50 X 0 0 0 RONALD H PEELE JR TRUSTEE 1.50 X 0 0 0 STEVEN J QUAMME 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 KOWALIK HEAD OF SCHOOL 60.00 X 666733 0 108043 DAVID DEJESUS CFO AND COO 60.00 X 240426 0 38813 BARBARA OVERSTREET DIRECTOR, DEVELOPMENT 50.00 X 181052 0 32345 DONALD FIRKE HEAD, UPPER SCHOOL 50.00 X 163104 0 73317 WILLIAM COOK ASST HOS FOR ACADEMICS 50.00 X 155109 0 33947 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 50.00 X 139662 0 38586 GERALD KOUNTZ HEAD, INTERMEDIATE SCHOOL 50.00 X 134231 0 42040 1680317 0 367091 26 0 1 0 DEBEVOISE & PLIMPTON LLP 919 3RD AVENUE NEW YORK NY 10022 PROFESSIONAL SERVICES 1132678 SAGE DINING SERVICES INC 1402 YORK RD LUTHERVILLE MD 21093 FOOD SERVICE 797700 COAKLEY & WILLIAMS CONSTRUCTION INC 7475 WISCONSIN AVENUE STE 900 BETHESDA MD 20814 GENERAL CONTRACTOR 216662 C J MAINTENANCE INC 9254 BENDIX ROAD COLUMBIA MD 21045 JANITORIAL 212914 ROHAN CONSTRUCTION GROUP INC 2722 MERRILEE DRIVE STE 300 FAIRFAX VA 22031 GENERAL CONTRACTOR 160237 6 402347 2601726 293702 3004073 TUITION 900099 35595914 35595914 SUMMER PROGRAMS 900099 2188475 2188475 TRANSPORTATION 900099 972941 875596 97345 ENRICHMENT PROGRAM 900099 149013 149013 MUSIC LESSON FEES 900099 74263 74263 68868 68868 39049474 433596 7414 426182 198 0 198 198 198 22452777 22380174 72603 72603 72603 512371 402347 159612 352759 352759 125093 66405 58688 58688 OTHER INCOME 900099 223212 223212 223212 43194603 39175341 104759 910430 4169047 4169047 994864 862368 91312 41184 18349331 15949758 1692448 707125 1075619 900686 124552 50381 1761378 1525410 155232 80736 1343316 1180076 115159 48081 116400 24136 91391 873 87549 59262 26143 2144 786690 563456 198146 25088 16254 11002 4854 398 667283 453417 105413 108453 744991 560517 170490 13984 1478619 1075858 372228 30533 320317 308957 11360 392619 303974 18230 70415 1677142 1135251 500813 41078 3184848 2155812 951030 78006 367978 270369 90210 7399 SUMMER PROGRAM 1700448 1700448 DEPARTMENT EXPENSES 1329467 1297630 29423 2414 FOOD AND ENTERTAINMENT 805249 545392 240159 19698 RECRUITING 184745 173364 10518 863 89966 159652 -57909 -11777 41644120 35385842 4929842 1328436 500 500 18639168 20204322 501860 291721 30083 97597 86047 69224 595967 777631 114379295 31864926 84303462 82514369 17748499 31097520 18518497 6017742 932541 928031 141356624 141998657 1339771 2821610 18181370 16868004 39847257 38543216 1395497 1344895 2911168 3259993 63675063 62837718 X 74131340 75638391 1003710 904525 2546511 2618023 77681561 79160939 141356624 141998657 X 1550483 221683 -292788 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35280681 396280 692522 562001 35807482 30671763 804573 5164382 1360037 35280681 27322984 339060 3476390 466671 30671763 28586826 320990 -737127 847705 27322984 23773643 575892 4674160 436869 28586826 0.92520 0.07310 0.00170 0 0 9754656 9754656 93919717 22937725 70981992 10364253 8927201 1437052 340669 340669 82514369 INTEREST RATE SWAP AGREEMENT 2877441 DEFERRED COMPENSATION 382552 3259993 X 39361099 221683 -4121592 -3899909 43261008 -66405 -66405 43194603 37881721 359193 359193 37522528 4121592 4121592 41644120 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, 2015, THE SCHOOL HAD IMMATERIAL TAXABLE UNRELATED BUSINESS INCOME WITH LOSSES THAT COULD BE CARRIED OVER, 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 TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. 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 2012. PART XI, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION -4,121,592. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE -66,405. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B - BOOKSTORE 66,405. UNREALIZED LOSS ON SWAP 292,788. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION 4,121,592. 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 ANNOUCEMENT IS PRINTED IN THE WASHINGTON POST NEWSPAPER. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 4715064 0 0 0 0 0 0 4715064 0 4715064 0 0 0 0 0 0 SPRING AUCTION 840986 396420 444566 130688 FALL FROLIC CARNIVAL 62927 5050 57877 28924 1 10805 877 9928 914718 402347 512371 159612 159612 352759 1 FINANCIAL AID AWARDS TO STUDENTS 187 4121592 VARIOUS AWARDS TO TEACHERS 22 47455 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 0 0 0 0 0 0 0 0 0 JOHN KOWALIK HEAD OF SCHOOL 347027 0 0 0 319706 0 18200 0 92333 0 777266 0 0 0 DAVID DEJESUS CFO AND COO 219449 0 0 0 20977 0 21982 0 19259 0 281667 0 0 0 BARBARA OVERSTREET DIRECTOR, DEVELOPMENT 180160 0 0 0 892 0 13035 0 21385 0 215472 0 0 0 DONALD FIRKE HEAD, UPPER SCHOOL 161657 0 0 0 1447 0 11561 0 63635 0 238300 0 0 0 WILLIAM COOK ASST HOS FOR ACADEMICS 153022 0 0 0 2087 0 17237 0 24647 0 196993 0 0 0 CHARLOTTE NELSEN DIRECTOR, ADMISSION & FIN. AID 137745 0 0 0 1917 0 16043 0 24789 0 180494 0 0 0 GERALD KOUNTZ HEAD, INTERMEDIATE SCHOOL 131000 0 0 0 3231 0 9170 0 34990 0 178391 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 - $66,300 DONALD FIRKE - $39,813 GERALD KOUNTZ - $32,870 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 3479115 16430000 16430000 2004 1 0 1 1 B 3749424 20570000 20570000 2006 0 0 1 1 C 728245 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 34 290272 CONFIRMATION FROM BROKER X FOOD & BEVERAGES 1 2880 COST X EVENT TICKET 1 550 COST 0 1 0 FORM 990, PART VI, SECTION A, LINE 4 THE POTOMAC SCHOOL AMENDED ITS BY-LAWS EFFECTIVE JUNE 1, 2015. THE SUMMARY OF AMENDMENTS ARE: ARTICLE II.A - THE BOARD OF TRUSTEES SHALL CONSIST OF FROM 17 TO 26 ELECTED AND VOTING TRUSTEES. ARTICLE II.B - THE OFFICERS OF THE BOARD WERE CLARIFIED TO INCLUDE THE CHAIR-ELECT (IF ANY). ARTICLE II.B.1 - THE TERM OF THE CHAIR OF THE BOARD SHALL BE 3 YEARS. AT THE END OF THE 3-YEAR TERM, THE BOARD MAY EXTEND THE CHAIR'S TERM BY ONE ADDITIONAL YEAR. ARTICLE II.B.2 - THE FOLLOWING CLARIFICATION WAS MADE: 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 OF THE BOARD. 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. ARTICLE II.B.6- THE FOLLOWING CLARIFICATION WAS MADE: A TWO-THIRDS MAJORITY OF THE ENTIRE VOTING MEMBERSHIP OF THE BOARD MAY REMOVE THE CHAIR, VICE-CHAIR, TREASURER, AND SECRETARY FROM HIS OR HER OFFICE FOR REASONS THAT THE TWO-THIRDS MAJORITY DEEMS TO CONSTITUTE GOOD CAUSE FOR SUCH REMOVAL. ARTICLE II.D.3 WAS DELETED IN ITS ENTIRETY. ARTICLE III.B - THE FOLLOWING CLARIFICATION MADE: IF THE BOARD CHAIR HAS NOT APPOINTED MEMBERS OR A CHAIR OF A COMMITTEE BY JULY 1, THE EXISTING MEMBERS OR CHAIR SHALL HAVE THE POWERS AND DUTIES OF THAT COMMITTEE UNTIL THE BOARD CHAIR APPOINTS NEW MEMBERS OR A CHAIR. 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 -292,788.