2016-05-09T16:40:13-05:00 2015-06-30 420714325 RSM US LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2014-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3367212615 601 S CHURCH ST WINSTONSALEM NC 27101 DEREK BRYAN CFO 3367212615 2016-05-09 1 ADRIENNE MCKINNEY P00819656 3362724551 2014 2016-08-17 19:52:53Z DE LORRAINE STERRITT P 601 S CHURCH ST WINSTONSALEM NC 27101 54349275 0 X WWW.SALEM.EDU, WWW.SALEMACADEMY.COM X 1772 NC SEE SCHEDULE O.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. 30 30 847 200 0 0 4277332 7429601 28319795 30195106 8574660 2387334 1280669 1005686 42452456 41017727 12848611 14542225 0 0 13230959 14211790 0 0 1248658 11223923 12134713 37303493 40888728 5148963 128999 111259335 114321746 30006564 34297708 81252771 80024038 THE BOARD HAS NOT ADOPTED A FORMAL MISSION STATEMENT. 0 0 32877419 14542225 31228530 SALEM ACADEMY & COLLEGE PROVIDES A COLLEGE EDUCATION TO APPROXIMATELY 1,118 FULL-TIME STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 173 FULL-TIME STUDENTS (GRADES 9-12) AND PROVIDES CONTINUING EDUCATION TO APPROXIMATELY 400 PART-TIME STUDENTS THROUGHOUT THE COMMUNITY. THE COLLEGE ALSO PROVIDES ADEQUATE FOOD SERVICES AND HOUSING TO APPROXIMATELY 500 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM COLLEGE AND 110 STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM ACADEMY. 32877419 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 1497 0 1 847 1 0 0 0 0 0 0 0 0 0 0 X 30 30 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 1 1 1 0 NC X DEREK BRYAN 3367212600 601 S CHURCH ST WINSTON SALEM NC 27101 LISA HERRON BANKOFF TRUSTEE 0.00 X 0 0 0 DEANA BASS TRUSTEE 0.00 X 0 0 0 ELIZABETH COPELAND BECHER TRUSTEE 0.00 X 0 0 0 JO STEPHENSON BROWN TRUSTEE 0.00 X 0 0 0 DAVID WAYNE BURKETTE TRUSTEE 0.00 X 0 0 0 ROBIAUN L CHARLES TRUSTEE 0.00 X 0 0 0 L DUANE DAVIS TRUSTEE 0.00 X 0 0 0 MCDARA P FOLAN III TRUSTEE 0.00 X 0 0 0 GINGER RENICK GRIFFIN TRUSTEE 0.00 X 0 0 0 ANN STONE HANES TRUSTEE 0.00 X 0 0 0 SALLIE CRAIG TUTON HUBER TRUSTEE 0.00 X 0 0 0 STEPHEN G JENNINGS CHAIR, TRUSTEE 0.00 X X 0 0 0 LEIGH FLIPPIN KRAUSE VICE CHAIR, TRUSTEE 0.00 X X 0 0 0 JENNIFER REINHARDT LYNCH TRUSTEE 0.00 X 0 0 0 CAMILLE DISHER MCDOWELL TRUSTEE 0.00 X 0 0 0 CHI-CHI ZIGLAR MESSICK TRUSTEE 0.00 X 0 0 0 WILLIAM R PHILLIPS TRUSTEE 0.00 X 0 0 0 S MARGARET PIKE TRUSTEE 0.00 X 0 0 0 SYDNOR COZART PRESNELL TRUSTEE 0.00 X 0 0 0 M ELIZABETH RADER SECRETARY, TRUSTEE 0.00 X X 0 0 0 REBECCA HEWIT RAUENHORST TRUSTEE 0.00 X 0 0 0 MARY WHITE RIGHTS TRUSTEE 0.00 X 0 0 0 JANET LUCILLE ROSE TRUSTEE 0.00 X 0 0 0 G DEE SMITH TRUSTEE 0.00 X 0 0 0 MARY LOUISE FORD STOTT TRUSTEE 0.00 X 0 0 0 NANCY TAYLOR SUMNER TRUSTEE 0.00 X 0 0 0 RAMON VELEZ TREASURER, TRUSTEE 0.00 X X 0 0 0 LAURA SIDES WATSON TRUSTEE 0.00 X 0 0 0 D JOEFF WILLIAMS TRUSTEE 0.00 X 0 0 0 WALLACE CHI-LI WU TRUSTEE 0.00 X 0 0 0 SUSAN PAULY PRESIDENT 60.00 X 323586 0 19455 LORRAINE STERRITT PRESIDENT 60.00 X 108790 0 3570 WANDA MOTSINGER EXECUTIVE SECRETARY 40.00 X 26721 0 5109 ROSEMARY WHEELER EXECUTIVE SECRETARY 40.00 X 41503 0 11591 VICKI SHEPPARD VP INSTITUTIONAL ADVANCEMENT 40.00 X 108505 0 13130 DEREK BRYAN CFO 40.00 X 113809 0 17530 KARL SJOLUND ACADEMY HEAD 40.00 X 135642 0 12446 SUSAN CALOVINI DEAN OF COLLEGE 40.00 X 126720 0 12000 985276 0 94831 6 0 1 0 FRANK L BLUM CONSTRUCTION CO PO BOX 4153 WINSTON SALEM NC 27115 CONSTRUCTION 4254889 ARAMARK SERVICES INC PO BOX 906023 CHARLOTTE NC 28290 DINING SERVICES 2273895 UNIVERSAL PROTECTION SERVICE LLC 26375 NETWORK PLACE CHICAGO IL 60673 SECURITY 411764 KEIGER GRAPHIC COMMUNICATIONS 3735 KIMWELL DRIVE WINSTON SALEM NC 27103 PRINTING SERVICES 347444 RESOURCE PAINTING INC PO BOX 1428 YADKINVILLE NC 27055 PAINTING AND MAINTENANCE 298543 10 104718 7324883 327919 7429601 TUITION AND FEES 611710 22334344 22334344 FOOD SERVICES 611710 4059005 4059005 HOUSING REVENUE 611710 3696392 3696392 BOOK STORE REVENUE 611710 105365 105365 30195106 1756312 1756312 66206 93944 -27738 -27738 -27738 13868626 13237604 631022 631022 631022 OTHER REVENUE 611710 589157 589157 GOVERNOR'S SCHOOL 611710 341154 341154 COMMUNITY SERVICE 611710 103113 103113 1033424 41017727 31228530 0 2359596 14542225 14542225 793298 475979 317319 10958920 8463212 2058972 436736 458297 335099 88536 34662 1169305 669193 430022 70090 831970 586285 208855 36830 39634 39634 95641 95641 165072 165072 1225547 313555 822125 89867 546627 347298 191563 7766 714348 379275 326484 8589 369556 171438 198118 415070 357824 27150 30096 759287 759287 2095448 1676358 419090 299838 299838 AUXILIARY ENTERPRISE 1894539 1894539 REPAIRS & MAINTENANCE 1038958 832141 206817 UTILITIES 863759 691007 172752 COMMUNICATIONS 497560 398048 99512 1113829 460635 436491 216703 40888728 32877419 6762651 1248658 2272912 2842061 3075189 4462702 486200 786479 144898 4000 100 0 72460479 37867698 31128085 34592781 61180888 60133162 12971063 11500561 111259335 114321746 2452897 2952714 1502940 1363877 24350246 23544497 192120 185491 5019945 1508361 1231184 30006564 34297708 X 3416906 1261491 19016350 20143591 58819515 58618956 81252771 80024038 111259335 114321746 X 128999 -1181226 -176506 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 62912119 876152 1024959 3076124 61737106 54511646 3047005 8058852 2705384 62912119 50202553 1044083 5920370 2655360 54511646 52844007 1805618 -389170 2670112 51590343 45553433 1466429 9077612 3253467 52844007 0.02950 0.77560 0.19490 1 0 3125520 3125520 51105648 51105648 13359816 13359816 4869495 37867698 -32998203 34592781 SPLIT INTEREST AGREEMENTS 10288771 CASH SURRENDER VALUE OF LIFE INSURANCE 916356 DEBT ISSUANCE COSTS 245045 INTEREST IN OIL WELL 50389 11500561 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 243615 REVOLVING PERKINS LOAN 105896 INTEREST RATE SWAP LIABILITY 881673 1231184 X 25046642 -1181226 -14710885 -15892111 40938753 165072 -86098 78974 41017727 26275375 93944 93944 26181431 165072 14542225 14707297 40888728 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 -330,085. GAIN ON INTEREST RATE SWAP 161,425. RECLASS GRANTS AND ALLOCATIONS TO EXPENSE -14,542,225. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE -93,944. NON-CASH GIFTS 7,846. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE 93,944. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 14,542,225. 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 1030 14542225 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 0 0 0 0 0 0 0 0 0 SUSAN PAULY PRESIDENT 223702 0 0 0 99884 0 11314 0 8141 0 343041 0 0 0 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 3100000 15000000 15000000 15000000 2008 0 0 1 1 B 355503 12000000 138142 11861858 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 47 320073 FMV X BUILDING REPAIRS 1 7846 COST 0 1 0 PART I, COLUMN (B): NUMBER OF CONTRIBUTIONS IS FROM AN EQUAL 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 DOCUMENTS REQUIRED TO BE MADE AVAILABLE FOR PUBLIC INSPECTION ARE AVAILABLE UPON REQUEST AT THE CFO'S OFFICE. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -330,085. GAIN ON INTEREST RATE SWAP 161,425. NON-CASH GIFT NOT REPORTED ON AUDITED FINANCIALS -7,846. 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 I, LINE 6 VOLUNTEERS TYPICALLY CONSIST OF VOLUNTEER ASSISTANTS WITH ATHLETIC AND PERFORMING ARTS PROGRAMS AND ARE ALL PART TIME AND TEMPORARY IN NATURE. FORM 990, PART III, LINE 1 SALEM ACADEMY & COLLEGE PROVIDES A COLLEGE EDUCATION TO APPROXIMATELY 1,118 COLLEGE STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 173 FULL TIME STUDENTS IN GRADES 9-12 AND CONTINUING EDUCATION SERVICES TO APPROXIMATELY 400 PART TIME STUDENTS IN THE COMMUNITY. THE COLLEGE MAINTAINS HOUSING AND FOOD SERVICE TO ACCOMMODATE APPROXIMATELY 500 UNDERGRADUATE COLLEGE STUDENTS AND THE ACADEMY PROVIDES SAME FOR APPROXIMATELY 110 BOARDING STUDENTS WHO MAINTAIN RESIDENCE ON THE CAMPUS OF SALEM ACADEMY. 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