2016-02-15T00:00:00-06:00 2015-06-30 135565207 KPMG LLP 210 Park Ave Suite 2850 Oklahoma City OK 73102 990 2014-07-01 850129165 Albuquerque Academy ALBU 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Andrew Watson Head of School 5058283200 2016-02-16 1 Stephanie L Stewart P01646944 4052396411 2014 2016-08-17 19:52:53Z Andrew Watson 6400 Wyoming Blvd NE Albuquerque NM 87109 40563953 0 X www.aa.edu X 1955 NM Albuquerque Academy is a non-denominational, coeducational, independent day school. 22 22 1017 494 -5105 -5363 3085272 2169384 26947604 27640076 6441110 4884375 -3186 132852 36470800 34826687 4661317 4398629 0 0 24542310 24742083 0 0 1652573 11652657 12232921 40856284 41373633 -4385484 -6546946 138669947 127463599 49291348 48670422 89378599 78793177 X See Schedule O. 0 1 28474466 4334139 23563743 Albuquerque Academy is a private, coeducational, college preparatory day school serving middle school and high school students in grades 6 through 12, located in Albuquerque, NM. See Schedule O. 2090838 9820 2116092 Albuquerque Academy offers a six week summer program that provided educational opportunities to 1,877 students during the fiscal year ended June 30, 2015. See Schedule O. 1320154 54670 1328428 The food service department serves the Academy by providing nutritious meals, prepared with care, presented in an attractive manner, and served in a friendly atmosphere. See Schedule O. 897175 0 770502 The Media Literacy Project ("MLP")MLP, founded in 1993, is nationally recognized as a leader in media literacy education. Its mission is to cultivate critical thinking and activism in media culture to build healthy and just communities. MLP delivers dynamic multimedia presentations, at conferences, workshops and classrooms across the country. The media literacy curricula action guides are used in countless classrooms and communities in all fifty states and abroad. MLP's Catalyst Institute and other training programs have empowered thousands of people to advocate for a media literate society.As disclosed in Part III - Statement of Program Accomplishments - Line 3, the Academy ceased operations of the Media Literacy Project effective June 30, 2015. This form includes the following revenue and expenses associated with the Media Literacy Project:Part VIII - Statement of Revenue - Line 1f - $67,134Part VIII - Statement of Revenue - Line 2e - $68,327Part VIII - Statement of Revenue - Line 3 - $ 20Part IX - Statement of Functional Expenses - Column B - $435,358There will be no continuing cash flows associated with the Media Literacy Project in future years for the Academy.Community BuildersCommunity outreach is an important aspect of the Academy's mission. The school is deeply committed to making a positive impact on the greater Albuquerque community, the state of New Mexico and beyond. Outreach initiatives are abundant and community service is part of the curriculum at all grade levels. Each year students undertake projects at numerous non-profit organizations in the community. Community Builders is a tuition free program that gives students from the Academy and other area schools an opportunity to learn the "nuts and bolts" of community philanthropy and non-profit organizations. The program includes a mix of site visits and meetings with community leaders to discuss a variety of topics, including types of non-profits, legal and ethical issues in the non-profit sector, grant writing for non-profits, non-profit governing boards and community leadership. At the end of the program students come together as a mock foundation to make decisions about how to support some of the non-profits they studied, both financially and through volunteer work. The program is supported by donors of which funds totaling $10,000 can be allocated among studied non-profits.Charger Aquatics ("CAQ")CAQ is a comprehensive, year-round aquatics program that provides swimmers in the greater Albuquerque area with opportunities to learn, participate, and compete in the school's state-of-the-art aquatics facility located in the nationally acclaimed Natatorium and is offered as part of the school's ongoing commitment to provide service and outreach to the community at large. CAQ offers membership in USA-sanctioned clubs, including USA Swimming and US Masters Swimming, along with an extensive selection of non-member aquatics classes such as Aqua Fitness and toddler and preschool swim lessons. Total enrollment for all programs was 270 for the fiscal year ended June 30, 2015.Community AcademyCommunity Academy supports the Academy's commitment to community outreach and life-long learning. Community Academy offers a continuing evening lecture series, free of charge to the entire community, presented by Academy faculty, alumni, and community leaders with expertise in their fields.The financial results directly below represent all other program services expenses and revenues: 897175 0 770502 32782633 1 1 0 0 0 0 0 1 0 1 1 1 0 1 1 1 1 0 1 0 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 1 1 0 0 0 1 93 0 1017 1 1 1 0 0 0 0 1 1 0 0 X 22 22 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 NM X Brent Wheelis 5058283200 6400 Wyoming Blvd NE Albuquerque NM 87109 Adam Honegger Chair 5.00 0.00 X 0 0 0 Pam Garrett Vice Chair 2.00 0.00 X 0 0 0 Ronald W Moya Assistant Treasurer 2.00 0.00 X 0 0 0 Karen Landis Knauf Secretary 2.00 0.00 X 0 0 0 Valerie Romero-Leggott Assistant Secretary 2.00 0.00 X 0 0 0 Chaouki Abdallah General Trustee 2.00 0.00 X 0 0 0 Patrick Apodaca General Trustee 2.00 0.00 X 0 0 0 Thomas J Baca Charter Trustee 2.00 0.00 X 0 0 0 Jennifer Davis Hall Charter Trustee 2.00 0.00 X 0 0 0 Andrew Hsi Charter Trustee 2.00 0.00 X 0 0 0 Chris Jillson General Trustee 2.00 0.00 X 0 0 0 Ian McKinnon General Trustee 2.00 0.00 X 0 0 0 Jesus Salazar General Trustee 2.00 0.00 X 0 0 0 Ernest L Schmider General Trustee 2.00 0.00 X 0 0 0 Christina C Sheehan Ex-Officio Trustee 2.00 0.00 X 0 0 0 Thomas Smidt III General Trustee 2.00 0.00 X 0 0 0 Walter Stern Charter Trustee 2.00 0.00 X 0 0 0 Randy H Talbot General Trustee 2.00 0.00 X 0 0 0 Judy Talcott General Trustee 2.00 0.00 X 0 0 0 Peter Watterberg Ex-Officio Trustee 2.00 0.00 X 0 0 0 Susan Willis Ex-Officio Trustee 2.00 0.00 X 0 0 0 Hope Mead Wynn General Trustee 2.00 0.00 X 0 0 0 Andrew Watson Head of School 40.00 0.00 X 384818 0 38790 Gary L Gordon Treasurer 40.00 0.00 X 250771 0 45040 Donald Smith Associate Head of School 40.00 0.00 X 162537 0 25700 Stephanie Levy-Lipkowitz Assistant Head of School 40.00 0.00 X 123917 0 64740 Nancy Parker Business Manager 40.00 0.00 X 128148 0 18086 Pamela Scanlon Director of Finance 40.00 0.00 X 122994 0 21670 Jeffrey Morgan Director of Advancement 40.00 0.00 X 118078 0 21455 1291263 0 235481 10 0 1 0 Sysco New Mexico LLC 601 Comanche Road NE Albuquerque NM 87114 Dining hall supplies 159180 Energy Control Inc 2600 American Road SE Suite 360 Rio Rancho NM 87124 HVAC system maintenance/support 133339 Agenda LLC 400 Gold Ave SW 12th Floor Albuquerque NM 87102 Marketing services 106563 KPMG LLP 6565 Americas Pkwy NE Ste 700 Albuquerque NM 87110 Audit services 105342 Shamrock Foods Company PO Box 52409 Phoenix AZ 850722409 Dining hall supplies 104531 6 30848 27730 970538 46532 1093736 50197 2169384 Tuition and fees 611110 23563743 23563743 0 0 Summer school/outreach 611110 2116092 2116092 0 0 Food service 611110 1328428 1328428 0 0 Charger aquatics 900099 418702 418702 0 0 Media literacy 900099 68327 68327 0 0 144784 144784 27640076 2076033 -5105 2081138 8060633 5252291 2808342 2808342 2808342 17405 27730 25303 -7898 -7898 2445 384 2061 2061 597977 459288 138689 138689 34826687 27778765 -5105 4883643 4398629 4398629 723092 294777 344093 84222 77915 77915 17767283 15771443 1257905 737935 1334722 1179630 101907 53185 3536899 3127448 243662 165789 1302172 1139945 103272 58955 77257 77257 126669 126669 351840 351840 899534 358913 540145 476 342245 168007 174238 1021376 736680 182269 102427 348571 317237 18354 12980 1080967 876007 203375 1585 391189 310356 14547 66286 221536 56844 53862 110830 1922958 1922958 2487615 2036607 376319 74689 279054 250085 19993 8976 Settlem inv. land litig 1000000 1000000 Stdt and instructional 948180 948180 Food service 396892 396892 Summer, CAQ, Outreach 337038 337038 41373633 32782633 6938427 1652573 34751 24080 4042206 2513675 4184882 657393 246630 269960 0 0 0 0 0 16217 249773 217857 600879 559335 82605257 51929071 32704914 30676186 66818230 15651374 28097419 40004886 0 0 0 0 1690263 36872636 138669947 127463599 2263188 2375813 0 0 1499588 1587935 37140627 37097174 0 0 0 0 7670252 6996818 200000 0 517693 612682 49291348 48670422 X 40370302 34467292 31012577 26310514 17995720 18015371 89378599 78793177 138669947 127463599 -6546946 -4038476 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 177494 X X 0 90623882 111949 1835410 0 5850000 1548725 85172516 94053009 1211504 10554779 0 5979122 9216288 90623882 90881192 3167111 8893220 0 6200000 2688514 94053009 126002365 1087464 -26611969 0 8312731 1283937 90881192 131182768 229222 6215947 0 10799680 825892 126002365 0.52800 0.26000 0.21200 1 0 397024 397024 65289806 37963475 27326331 12817890 10638266 2179624 4100537 3327330 773207 30676186 Partnership Investments 13463914 F Sandoval County Real Estate 9240000 F First Eagle Class I 8691375 F AMG Yacktman Focused - SVC 8361021 F Lindsay Corp Common Stock 219775 F Dona Ana County Real Estate 28801 F 40004886 Assets held in trust by others 35741646 Split-interest agreement 597825 Bond issuance and financing costs, net 348249 Accrued investment income 184916 36872636 Annuity and other split-interest obligations 452908 Interest rate swap liability 159774 612682 X 25385444 -4038476 -5535902 -9574378 34959822 351840 -484975 -133135 34826687 35970866 484975 484975 35485891 351840 5535902 5887742 41373633 Part III, Line 4: The Academy maintains a small art collection consisting of items donated to the school. Included in this collection is a series of photogravuers, a flemish tapestry, and several oil paintings (including portraits of Mr. & Mrs. Simms, major donors to the Academy.) The art collection is currently displayed in various venues across campus for the edification of our students as well as for the enjoyment of vistors of our campus. It is anticipated that items within the collection will grow in value over time and may eventually be sold to support various programs and initiatives benefiting the Academy's students. There were no new donations of art, historical treasures or similar assets made to the school for the year ended June 30, 2015. Part V, Line 4: The Academy's endowment, consisting of permanently restricted, temporarily restricted, and quasi-endowment funds, provides vital financial support for the overall mission of the Academy. The endowment sustains opportunities of remarkable scope, including experiential and outdoor education, deep academic excellence, global exchanges and languages and sustainability initiatives closely attuned to a changing world. These programs make the student experience here one of the broadest in independent education. The endowment also supports our admission process and generous financial assistance program. These programs are committed to providing access to the Academy for students of talent and character from throughout the city, region, and (at times) country as they seek an enriched and meaningful educational experience. The Academy's endowment supports our outreach programs to include: Community Academy lectures; Charger Aquatics; Summer Session; and artistic, athletic, and volunteer events on campus all exemplify our community outreach and the Academy's belief in life-long learning. Part X, Line 2: The Academy is a not-for-profit organization and qualifies as an organization described in Section 501(c)(3) of the Internal Revenue Code (IRC). As such, the Academy is exempt from federal income taxes under Section 501(a) except on net income derived from unrelated business activities. For the years ended June 30, 2015 and 2014, the Academy has determined that no income taxes are due for its activities. Accordingly, no provision for income taxes has been recorded in the accompanying special-purpose financial statements. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the accompanying special-purpose financial statements. The Academy files informational tax returns. In the normal course of business, the Academy is subject to examination by federal, state, local, and foreign jurisdictions, where applicable. As of June 30, 2015 and 2014, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations for the Academy are from the year ended June 30, 2011 and forward. The Academy would recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. There is no such interest or penalties recorded for the years ended June 30, 2015 and 2014. Part XI, Line 2d - Other Adjustments: Financial assistance netted against revenue for GAAP, gross for tax -4,305,102. Tuition remission netted against revenue for GAAP, gross for tax -1,230,800. Part XI, Line 4b - Other Adjustments: Inventory COGS shown gross in GAAP expense, netted for tax -459,288. Fundraising expenses shown gross in GAAP expense, netted for tax -25,687. Part XII, Line 2d - Other Adjustments: Inventory COGS shown gross in GAAP expense, netted for tax 459,288. Fundraising expenses shown gross in GAAP expense, netted for tax 25,687. Part XII, Line 4b - Other Adjustments: Financial assistance netted against revenue for GAAP, gross for tax 4,305,102. Tuition remission netted against revenue for GAAP, gross for tax 1,230,800. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 The Academy publishes its racially nondiscriminatory policy in the following materials: 1. Admission brochures 2. Admission view book 3. Admission/financial assistance forms 4. College profile guide 5. Summer session catalogue 6. Admissions page of the Academy website 7. Employment page of the Academy website 8. Standing orders of the Albuquerque Academy Board of Trustees and its standing committees Schedule E, Part I, Line 6 The Academy receives funds from the federal government in the form of the National School Lunch Program. For the fiscal year ended June 30, 2015 the Academy received $46,532 through the National School Lunch Program. The Academy also participates in the state of New Mexico textbook program. Based upon its enrollment, the school receives credits that allow all students to use state textbooks. The Albuquerque Academy Educational Foundation ("Educational Foundation") is an entity whose principal purpose is to support New Mexico member schools of the Independent Schools Association of the Southwest. The Educational Foundation is operated, supervised, and controlled by the Academy. Effective July 1, 2009, the Educational Foundation suspended the awarding of grants until such time as economic conditions make it feasible to resume the awards. No grants were awarded during the fiscal year ended June 30, 2015. Europe (Including Iceland & Greenland) 0 0 Program services See Part V. 8860 0 0 0 0 0 0 8860 0 8860 1 0 0 1 1 0 Part I, line 3: Expenditures are accounted for on the accrual basis of accounting. Schedule F - Part I - 3(e) Media Literacy Project was engaged to create a media literacy curriculum for grades 7 and 8 in the United Kingdom, and to provide training to teachers in the United Kingdom to implement the curriculum. Skip Porter Golf Tourn. 45135 27730 17405 1400 0 15513 4180 0 4210 45135 27730 17405 1400 15513 4180 4210 25303 -7898 1 Financial assistance for students attending the Academy. Includes assistance awarded for the regular school year and the Academy's six week summer program. 283 4398629 See Part IV. Part I, Line 2: Financial assistance is awarded based solely upon demonstrated financial need. A family's need is assessed annually through a comprehensive screening process. The annual process requires that the family complete an application and provide the Academy with a full set of tax returns including all supporting schedules. To determine the appropriate financial assistance, the Academy utilizes a standard methodology provided by School and Student Services ("SSS") which is used by Independent Schools nationwide. This methodology calculates a contribution for each individual family based upon the family's specific financial situation and discretionary income. Prior to making an award, each applicant's file and proposed award is carefully reviewed by a committee to ensure the decisions are based on consistent application of need based criteria. Assistance is awarded to students as a reduction in their tuition, lunch fees, and/or other academic fees. No cash is distributed to recipients. The Academy awarded zero non-cash assistance for the fiscal year ended June 30, 2015. Financial assistance is awarded annually consistent with the current academic school year. Applicants must reapply annually by submitting a new application and current tax documentation. In addition to a committee review of each award, the Financial Assistance Office of the Academy conducts a random audit of files annually as another measure to ensure that financial assistance is being awarded appropriately and the proper supporting documentation was submitted as part of the application process. On a monthly basis, the Accounting Office of the Academy compares the financial assistance subsidiary ledger postings to a list of awards provided by the Financial Assistance Office to ensure there are no discrepancies between the two amounts. Any discrepancies are promptly researched and resolved. X X X X 0 0 0 0 0 0 0 0 0 Andrew Watson Head of School 329818 0 55000 0 0 0 26000 0 12790 0 423608 0 0 0 Gary L Gordon Treasurer 200771 0 50000 0 0 0 12939 0 32102 0 295812 0 0 0 Donald Smith Associate Head of School 162537 0 0 0 0 0 16628 0 9072 0 188237 0 0 0 Stephanie Levy-Lipkowitz Assistant Head of School 123917 0 0 0 0 0 13051 0 51689 0 188657 0 0 0 Part I, Line 3 See Schedule O for discussion of establishing the compensation of the Academy's Head of School and Treasurer. A Village of Los Ranchos De Albuquerque 850236091 545610AR8 2010-09-21 37303574 See Part VI of Schedule K 0 0 0 A 37304714 427496 6044218 30833000 2010 1 0 1 1 A 0 0 0 0 0 0 0 A 0 0 0 0 0 0 0 0 0 A 1 Schedule K - Part I In September 2010, the Academy requested the Village of Los Ranchos de Albuquerque, New Mexico issue $36,000,000 of Series 2010 bonds (i) for the purpose of refunding Series 1999 bonds and Series 2002 bonds and paying the costs associated with the termination of a swap agreement entered into in connection with the Series 2002 bonds and (ii) to finance the acquisition, installation and construction of certain infrastructure projects on the Academy campus. The Series 2010 bonds were issued at a premium of $1,303,574, resulting in total proceeds of $37,303,574. The Series 2010 bonds provided $6,043,078 in proceeds to fund updates to fire alarm and smoke detection systems and replacement of electrical load centers and motor control centers in original campus buildings, replacement of buried hot water and chilled water loop lines on the central and east campus, replacement of buried hot water loop lines on the west campus and replacement of existing west campus roof top HVAC units with roof top air handling units with chilled water coils and an air cooled chiller system and renovation of classroom buildings and fixtures, including classroom technology upgrades. In September 2013, the Academy completed all of its capital improvements and utilized all of the funds that were originally set aside in the Series 2010 issue. The Series 2010 bonds also provided $1,098,000 in proceeds to terminate swap arrangements that had been entered into in connection with the Series 2002 Bonds. 19600 See Part V See Part V Carol Watson See Part V 77915 See Part V 0 Schedule L, Part III, Column (d) and (e) Tuition remission Schedule L, Part IV, Column (b) and (d) Total compensation to spouse of Head of School for the fiscal year ended June 30, 2015. X 2 45697 FMV at liquidation X Piano 1 4500 Appraised value 0 0 1 1 Part I, Column (b): The Academy reports the number of individual contributors in Part I Column B of this schedule. Part I, Line 32b: The Academy uses the donated services of Banc of America/Merrill Lynch to liquidate non-cash contributions. Such liquidation usually is undertaken within days of receipt of the contribution. Form 990 - Part I - Line 1: Mission Statement The Academy was the fortunate recipient of a transformational gift of land in the early sixties, and fittingly, has chosen to use this gift to ensure economic accessibility to students living throughout the city of Albuquerque and the region. Today the Academy offers students an education that is without equal in the Southwest. Students from approximately 90 area schools are served by teachers who deliver their subject matter in creative and engaging ways. Students in the 6/7 division follow a non-traditional schedule that allows adaptability in an ever-changing world. Students in the 8/9 division are given their own campus space and their own accountability to help them grow into confident young adults. For the 10/12 division, course work involves increasingly philospohical and analytical thought. Academy students serve the community to which they belong, compete in a variety of competitive sports and participate in a variety of academic clubs and student organizations. Most Academy students attend four-year colleges and universities upon graduation, many of them enrolling at some of the best universities in the country. Admission to the Academy is competitive; approximately 59% of those who apply are offered admission. For the 2014/15 school year, the student body consisted of 48% boys and 52% girls, 50% are students of color, and 25% received approximately $4.3 million in financial assistance. Financial assistance is based on demonstrated financial need; only after students are admitted and their needs are assessed might financial assistance be offered. Form 990 - Part III - Line 1 - Organization's Mission We believe that children's lives change when their natural passion for learning is nurtured and transformed into habits of life-long learning and reflection. We believe that the world changes as these children learn to serve country and community with wisdom, conviction, and compassion. In light of these beliefs: We serve students of talent and character, offering them an education that broadens their perspective, sharpens their minds, strengthens their bodies, and engages their hearts. We commit to creating a caring, inclusive, and just community, using the geography and culture of our home in the Southwest to enrich our educational programs and to foster creativity, personal balance and a connection to the natural world. We devote our resources to ensure economic accessibility to our students and to support the wider community through outreach and community service. We entrust this mission to our graduates and successors as we preserve our resources and serve the children of generations to come. Form 990, Part III, line 3 The following disclosure is from the Academy's audited financial statements for the fiscal years ending June 30, 2015 and 2014. Media Literacy Project was founded in 1993, is a nationally recognized leader in media literacy education, and was headquartered on the Academy campus. Its mission was to cultivate critical thinking and activism in media culture to build healthy and just communities. Over the past several years, Media Literacy Project experienced continual difficulty in obtaining funding to support its mission and operations. As a result of the continued difficulties experienced by the program, management of the Academy has ceased operations effective June 30, 2015 of Media Literacy Project. There are no continuing cash flows from Media Literacy. Form 990 - Part III - Statement of Program Accomplishments The Academy opened its doors in the fall of 1955 with 12 boys in grades 7 through 9, two teachers, and founding Head William Wilburn. Classes were held in rented space in the Parish Hall of St. Michael's and All Angels Church. In 1957, enrollment had grown to 75 boys and the school moved to a 27-acre site on north Edith Boulevard in Albuquerque, NM. The first class of seven boys graduated in 1960. In 1966, the school moved to its present location, and in 1967/68 was home to 405 boys. Girls were admitted beginning in 1973. For the school year 2014/15, the Academy served 1,129 girls and boys in grades 6 through 12. The Academy's remarkable growth was made possible largely through the transformational gift of Albert G. Simms, a New Mexico financier and rancher, and his wife, Ruth Hanna McCormick Simms. In the early 1960's the Simms gave or bequeathed to the Academy (in trust) more than 12,000 acres of undeveloped land and 8,000 shares of Albuquerque National Bank stock. The undeveloped land has been sold resulting in the endowment that today enables education in a beautiful and uplifting environment, and also has provided the school its campus. The uniqueness of the Academy is due, in large part, to its commitment to its admission policy, and to providing accessibility to qualified students from throughout the greater Albuquerque community. Every Academy student benefits from the school's commitment to accessibility and affordability. Direct support from the endowment covers approximately 25% of the cost not covered by tuition. A further commitment of the Academy is to diversity and dedicating the school's resources to creating an environment in which all students can thrive. It is the responsibility of all the school's constituents to make this environment conducive to learning and to foster mutual respect for one another. Students of color (including students of Middle Eastern, Hispanic, African American, Asian, and Native American ancestry) represented approximately 50% of the total student population for the 2014/15 school year. Appreciation for diversity is also extended to those of various socioeconomic levels. The Academy has chosen to voluntarily participate in the USDA's National School Lunch Program which provides nutritionally balanced, low-cost or free breakfast and lunch to students each school day. Academy students benefit academically from small classes (averaging 16 students in the 6/7 division to 15 in the 10/12 division) and a teacher-to-student ratio of 1:9. 268 Academy students took advanced placement exams during the 2014/15 school year; of these students who took an advanced placement exam 74% received scores of 4 or 5, and 90% received a score of 3 or above. The 2015 graduating class had 27 National Merit Scholarship semifinalists, 14 commended students and 15 National Hispanic Scholars. Almost all Academy graduates enroll in a four-year college or university immediately upon graduation. Form 990 - Part III - Statement of Program Accomplishments The Academy summer session offered the opportunity to 1,877 children of the greater Albuquerque community (most non-affiliated with the regular school year) to participate in an enriching and exciting summer experience during the fiscal year ended June 30, 2015. The program had 283 class offereings including early childhood programs, a day camp, various sports camps and swim instruction for children from preschool to high school. Credit classes in math and science are also offered to high school students. An integral part of the session is the Multicultural Summer Honors Program, a summer scholarship program for academically talented and motivated African American, Native American, Hispanic, and other students who will be entering the fourth and fifth grades. The summer program has been an integral part of the Academy since 1984, reinforcing the school's unique mission of accessibility, affordability, excellence and outreach. The program also builds a broader sense of community as summer students and their siblings, as well as children of faculty and alumni, return summer after summer. The session is staffed by qualified and talented individuals who come from throughout New Mexico and the wider national and international educational community. The teacher/student ratios for the summer session offered for the fiscal year ended June 30, 2015 were 1:5 for the day camp, 1:8 for the children's workshop, 1:12 for pre-grade 1, 1:13 for pre-grade 2-3, and 1:15 for all other programs offered. Form 990 - Part III - Statement of Program Accomplishments The food service department serves the Academy community by providing nutritious meals, prepared with care, presented in an attractive manner, and served in a friendly atmosphere by a courteous staff within budgetary guidelines and in an environmentally sustainable way. The Academy dining halls provide lunch every school day for students, faculty, and staff. Lunch is included in the price of tuition and students are required to attend lunch as part of the regular school day. Students may self-select from hot or cold sandwiches, a salad bar, pasta and pizza, home-style items, Southwestern and Asian fare, soup, and milk/juice choices. In grades 6-9, nine to ten students and one faculty member eat at each table. Lunch tables are assigned and change on a regulary scheduled basis. In grades 10-12, students have open seating and may eat anytime during this division's open lunch period. The Academy participates in the USDA National School Lunch Program and follows the nutrition guidelines specified for these meals for students in grades 6-12. Calories, carbohydrates, protein, vitamins A and C, iron, calcium, cholesterol, and sodium are evaluated during menu planning and meet the USDA requirement when averaged over a week. Total fat is planned to be 30% or less and saturated fat 10% or less. Form 990, Part VI, Section B, line 11 Form 990 is prepared by the Academy's Controller with a review by the Academy's Business Manager, other key members of the Academy's management team and by an external tax preparer. The Board of Trustee's Audit & Risk Committee members with Academy employees (Head of School, Treasurer, Business Manager and Director of Finance) review the form in detail prior to filing with the Internal Revenue Service (IRS). Trustee members utilize this time to ask questions, clarify data and make suggestions for any changes. Any agreed upon changes are incorporated into the Form, with a final review undertaken by the Controller and the Business Manager. The Form is submitted electronically to the IRS in a timely manner. The Board of Trustees receive the Form 990 prior to the filing of the return. The Academy values those few donors who request that they remain anonymous to the community. To that end, to protect such donors and keep the school's promise that their identity will not be widely known, Schedule B of Form 990 is not provided to all Trustees of the Academy. All other portions of the Form 990 are provided to all Trustees. To be sure the board is aware of gifts and to protect the organization from the potential of inappropriate gifts to the school, the Board Chair, Head of School, Treasurer, and Director of Institutional Advancement are fully aware of the identity of all donors. Should any one of them determine that a donation might be inappropriate or pose a conflict with the organization, they are charged with raising the issue with the full board. The Academy publishes a comprehensive giving report on an annual basis that is available to the public. Form 990, Part VI, Section B, line 12c The conflict of interest statement is directed to the Trustees, officers, those who make purchasing decisions, all persons who are described as management personnel and to anyone who has proprietary information concerning the Academy. Each employee must sign a statement annually which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy and has agreed to comply with the policy. The conflict of interest statement requires that individuals refrain from voting or participating in any matter or issue in which they have any potential conflict of interest. This is to ensure the Academy operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status. Periodic review shall, at a minimum, include whether transactions between employees and the Academy are negotiated as the result of "arm's length bargaining and whether partnerships, joint ventures and any other business arrangements with the school are properly recorded. Transactions are further reviewed to ensure they reflect reasonable investment or payment for goods and services, they further charitable purposes and they do not result in inurement, impermissible private benefit or any excess benefit transaction. Accounting and other personnel are encouraged to report a situation involving a potential conflict of interest to an appropriate school official. Form 990, Part VI, Section B, line 15 The executive committee of the Board of Trustees takes responsibility for the evaluation of its two direct reports, the Head of School and the Treasurer, and for the determination of compensation for each of those individuals. The executive committee consists of the Board Chair, Vice Chair, Secretary, Assistant Secretary, Assistant Treasurer, and two at-large board members appointed by the Chair. All board members, including the members of the executive committee, submit a conflict of interest disclosure statement to the Chair of the board annually. These are utilized to determine that the committee members do not have any undisclosed conflicts of interest and they do not have any direct financial interest in the compensation provided to the Head of School or the Treasurer. In addition, at the time the executive committee considers compensation questions, each committee member is asked again to confirm that they do not have any conflicts of interest. The executive committee has, in some years, retained a compensation consultant intimately familiar with compensation for the heads of independent schools both in the region and nationally. The consultant has no financial or other interest in the compensation decisions made. The consultant has prepared a study of up to thirty or forty schools that are or may be comparable to the Academy in terms of complexity, size of operating budget, grade range and student body size. The consultant also considers heads of school with experience levels comparable to the Academy's Head of School. The consultant's compensation information includes evidence of salary, bonuses, benefits and other non-cash consideration that other heads of school may receive. The executive committee considers the information assembled by the consultant, and in addition, information gathered from Form 990's of other independent schools, news sources and independent school associations, in setting compensation for the Head of School, together with any information obtained from any evaluations that may have been performed, ordinarily in the spring and early summer, in advance of the beginning of the Academy's fiscal year. The executive committee maintains minutes of its meetings, including those in which compensation matters are considered. The Chair of the board reports the compensation decisions to the full board. The most recent compensation consultant study was completed during the 2009/10 fiscal year. The compensation consultant provided a letter to the Academy's executive committee confirming his judgment that the Head of School's compensation was reasonable and appropriate. As noted, this information is supplemented by more recent information. Determining comparability of the Treasurer's compensation is more difficult because of the paucity of information available. The Treasurer's position at the Academy involves a fairly unique set of responsibilities in independent schools, ranging from management of a substantial endowment to a wide range of debt management, legal, business, and financial matters. One of the reports done by the compensation consultant did include information regarding the Treasurer's compensation by comparability to the second highest paid officer of the subject schools. That information, coupled with information from a survey by an Association of School Business Officers, certain Form 990 information, and the knowledge of the members of the executive committee of compensation levels prevailing in the geographic area for persons with the skill set and work ethic necessary to fill this office have been used to set compensation since that study. The executive committee continues to look for additional means of doing comparisons of compensation. The executive committee uses additional resources for making compensation decisions. Form 990's from comparable schools continue to allow the Academy to proceed during most years, by considering those (perhaps with a limited accounting firm confirmation of the information) together with information available from independent schools and business associations each year, and adding in a consultant's study and report on a regular basis. Form 990, Part VI, Section C, line 19 The Academy keeps a database (updated annually) of financial institutions, bondholders and vendors who have requested a copy of the Academy's audited financial statements as a condition of providing credit and services to the school. After the financial statement audit is completed and accepted by the Board of Trustees, electronic copies of the statements are distributed to all entities in the database. The Academy does not currently make its governing documents or conflict of interest policy statements available to the public. Form 990 - Part XII - Financial Statements and Reporting - Line 2c The Academy has an Audit and Risk Committee that assumes responsibility for oversight of the annual financial statement audit and the resulting financial statements. The Audit and Risk Committee is also responsible for assessing and selecting the external audit firm of the Academy. The Academy did not change its oversight or selection process for the appointment of its external audit firm during the tax year currently being reported on. Albuquerque Academy Educational Foundation 6400 Wyoming Blvd NE Albuquerque NM 87109 850381395 Support New Mexico ISAS schools NM 501(c)(3) Line 11b, II 1 Albuquerque Academy Student Support Foundation 6400 Wyoming Blvd NE Albuquerque NM 87109 205895188 Provide support to Albuquerque Academy NM 501(c)(3) Line 11b, II 1 Albuquerque Academy for Boys Trust #1 1300 Merrill Lynch Drive 3rd Pennington NJ 08534 856008015 Provide support to Albuquerque Academy NM 501(c)(3) Line 11d, III-O 0 High Desert Investment Corporation PO Box 92933 Albuquerque NM 87199 850394108 Real estate developer NM Albuquerque Academy C 7396 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Form 990 - Schedule R - Part IV - Line 1 Footnote disclosure from June 30, 2015 and 2014 Special-Purpose Financial Statements of the Academy: In 1991, the Academy's Board of Trustees formed High Desert Investment Corporation (High Desert), a for-profit entity, for the intial purpose of acquiring and developing property owned by the Academy in the foothills of the Sandia Mountains in Albuquerque. High Desert included the following wholly owned subsidiaries: Tiburon Investment LLC, Mariposa East Commons LLC, and Mariposa Community Center LLC. In 2003, High Desert purchased approximately 1,400 acres of land from the Academy, which was located in Rio Rancho, New Mexico and undertook development activity of that real estate. High Desert suffered losses connected with the country's residential housing collapse beginning in 2007 from which it has not recovered. No development activity or land sales occurred in fiscal years ended June 30, 2015 or 2014. The Academy's equity method investment in High Desert was evaluated for impairment at June 30, 2012, and determined it to be fully impaired. The special-purpose audited financial statements reflect no activity for High Desert for the years ended June 30, 2015 and 2014.