2016-05-13T15:32:08-05:00 2015-06-30 KPMG LLP 1003 Bishop Street Suite 2100 Honolulu HI 96813 990 2014-07-01 990073523 PUNAHOU SCHOOL % JILL KAWANO PUNA 8089445711 1601 PUNAHOU STREET HONOLULU HI 96822 JOHN D FIELD JR VP & TREASURER 8089445812 2016-05-12 true ANA E AKHTAR P01856987 8085402800 2016-05-13 2014 2016-08-17 19:52:53Z JOHN D FIELD JR 1601 PUNAHOU STREET HONOLULU HI 96822 117297872 false X www.PUNAHOU.EDU X 1853 HI PUNAHOU SCHOOL IS A PRIMARY AND SECONDARY SCHOOL THAT IS RECOGNIZED FOR ITS ACADEMIC EXCELLENCE, ATHLETICS, AND EXTRACURRICULAR ACTIVITIES FOR MORE THAN 3750 STUDENTS IN GRADES K-12. 16 16 1473 5000 478176 458585 29226195 14643734 85399100 88371545 3106892 3885141 2768074 3148218 120500261 110048638 5326761 5559971 0 0 69709664 72686409 13450 7895 3444966 24939216 24435717 99989091 102689992 20511170 7358646 400493894 413217900 38200247 39503249 362293647 373714651 X PUNAHOU IS COMMITTED TO PROVIDE AN ENVIRONMENT WHERE STUDENTS CAN DEVELOP MORAL AND SPIRITUAL VALUES CONSISTENT WITH THE CHRISTIAN PRINCIPLES ON WHICH PUNAHOU WAS FOUNDED, AFFIRMING THE WORTH AND DIGNITY OF EACH INDIVIDUAL; DEVELOP INTELLECTUAL, ACADEMIC AND PHYSICAL POTENTIAL TO THE FULLEST DEGREE, PREPARING THEM FOR HIGHER EDUCATION AND FOR CHALLENGES FACING THEM NOW AND IN THE FUTURE; DEVELOP AND ENHANCE CREATIVITY AND APPRECIATION FOR THE ARTS; APPRECIATE CULTURAL DIVERSTIY AND DEVELOP SOCIAL RESPONSIBILTY. FOUNDED IN 1841, PUNAHOU SCHOOL IS THE LARGEST INDEPENDENT SCHOOL IN AMERICA. IT IS A PRIVATELY OPERATED SCHOOL SERVING CHILDREN FROM EVERY RACIAL, RELIGIOUS, SOCIAL AND ECONOMIC GROUP IN HAWAII. PUNAHOU HAS FACULTY AND ACADEMIC SUPPORT STAFF OF APPROXIMATELY 600, SERVING ABOUT 3,750 STUDENTS FROM KINDERGARTEN TO GRADE 12. THE SCHOOL IS DIVIDED INTO TWO MAJOR DIVISIONS: THE JUNIOR SCHOOL (KINDERGARTEN TO GRADE 8) AND THE ACADEMY (GRADES 9 TO 12), EACH WITH ITS OWN PRINCIPAL. IN false false 76925847 5559971 81863614 ACADEMIC CURRICULUM - PUNAHOU SCHOOL IS A COEDUCATIONAL COLLEGE PREPATORY DAY SCHOOL OFFERING EDUCATIONAL EXCELLENCE. MORE THAN 96 PERCENT OF PUNAHOU GRADUATES GO ON TO ATTEND COLLEGE. CURRENTLY, PUNAHOU IS DIVIDED INTO THE JUNIOR SCHOOL, KINDERGARTEN THROUGH GRADE 8, AND THE ACADEMY, GRADES 9-12. THE JUNIOR SCHOOL (K-8) IS COMPOSED OF THREE SECTIONS WITH A PRINCIPAL AND FIVE SUPERVISORS OVERSEEING APPROXIMATELY 2,000 STUDENTS. THESE SMALLER, SELF-CONTAINED SECTIONS FOR K-2, 3-5 AND 6-8 ARE DESIGNED TO MEET THE SPECIAL NEEDS OF THESE GROUPS OF CHILDREN. SUPPLEMENTAL EDUCATION, SUCH AS OUTDOOR AND CAMP EXPERIENCES, ARE ALSO OFFERED IN THE JUNIOR SCHOOL. THE CASE MIDDLE SCHOOL WAS COMPLETED IN 2005 FOR GRADES 6-8. THIS EXPANDED AREA OF CAMPUS WAS DESIGNED TO SUPPORT AN EDUCATION PROGRAM DESIGNED SPECIFICALLY TO MEET THE INTELLECTUAL AND SOCIAL NEEDS OF EARLY ADOLESCENTS. THE LEARNING ENVIRONMENT RECOGNIZES THIS DEVELOPMENTAL PERIOD THROUGH MORE INTIMATE ORGANIZATIONAL STRUCTURES, FACILITIES MORE OPEN TO THE ENVIRONMENT AND CLASSROOM AND GATHERING SPACES DESIGNED TO ENCOURAGE COLLABORATION AND INTEGRATED LEARNING. IN THE ACADEMY, COLLEGE PREPARATORY GRADUATION REQUIREMENTS INCLUDE CREDITS IN ENGLISH, SCIENCE, SOCIAL STUDIES, MATHEMATICS, FOREIGN LANGUAGE, PHYSICAL EDUCATION, PERFORMING ARTS, AND COMMUNITY SERVICE. 4584017 3746027 SUMMER SCHOOL OFFERS A VARIED AND ENRICHED PROGRAM IN ACADEMICS, SPORTS, MUSIC AND DANCE. THE PROGRAMS STIMULATE INTEREST, CREATIVITY AND ENJOYMENT IN SPECIAL AREAS THAT ARE NOT ALWAYS COVERED DURING THE REGULAR SCHOOL YEAR. 3922211 2603076 CO-CURRICULAR ACTIVITIES ARE AN ESSENTIAL PART OF THE PUNAHOU EXPERIENCE, HELPING STUDENTS DEVELOP A SENSE OF RESPONSIBILITY, COMMITMENT, CONFIDENCE AND LEADERSHIP. WITH A FOCUS ON EXPERIENTIAL, HANDS-ON, AND COLLABORATIVE LEARNING, THE CURRICULUM IS SUPPORTED BY A WIDE VARIETY OF MEDIA SERVICES, TECHNOLOGY RESOURCES AND A WELL-ROUNDED ARTS PROGRAM. 2917646 77928 ATHLETICS 604535 27577 MUSIC DEPARTMENT & THEATER PROGRAMS 105857 53323 STUDENT ACTIVITIES 3628038 158828 89060113 true true false false true false false false true true true false true true true true false true false false false false false true false false false true true false false false false false false true false true true false false false true true true false false true 196 0 true 1473 true true true false false false false false true 1 false false false false false false X 16 16 true false false false false false false true true false false true true true true true true true true false HI X JILL KAWANO 8089445711 1601 PUNAHOU STREET HONOLULU HI 96822 ETHAN D B ABBOTT TRUSTEE 1.0 0.0 X 0 0 0 DEBORAH K BERGER TRUSTEE 1.0 0.0 X 0 0 0 W DAVID P CAREY III TRUSTEE 1.0 0.0 X 0 0 0 STEPHEN M CASE TRUSTEE 1.0 0.0 X 0 0 0 HAN H SONNY CHING TRUSTEE 1.0 0.0 X 0 0 0 MARGARET M COLE ASSISTANT SECRETARY 1.0 0.0 X X 0 0 0 WENDY B CRABB SECRETARY 1.0 0.0 X 0 0 0 MARK H FUKUNAGA SECOND VICE CHAIR 1.0 0.0 X X 0 0 0 RONALD D HIGGINS II TRUSTEE 1.0 0.0 X 0 0 0 CLAIRE O JOHNSON TRUSTEE (THRU 05/12/2015) 1.0 0.0 X 0 0 0 CONSTANCE H LAU TRUSTEE 1.0 0.0 X 0 0 0 WARREN K K LUKE TRUSTEE 1.0 0.0 X 0 0 0 DUNCAN MACNAUGHTON CHAIR OF THE BOARD 1.0 0.0 X X 0 0 0 PIERRE M OMIDYAR TRUSTEE 1.0 0.0 X 0 0 0 MICHAEL A PIETSCH TRUSTEE 1.0 0.0 X 0 0 0 JEFFREY N WATANABE TRUSTEE 1.0 0.0 X 0 0 0 KATHLEEN S WO FIRST VICE CHAIR 1.0 0.0 X X 0 0 0 JAMES K SCOTT PRESIDENT 40.0 0.0 X 418686 0 43520 JOHN D FIELD JR VP & TREASURER 40.0 0.0 X 252536 0 27253 JILL M KAWANO ASSISTANT TREASURER 40.0 0.0 X 138758 0 14085 KEVIN E CONWAY PRINCIPAL - ACADEMY 40.0 0.0 X 273061 0 24515 MICHAEL T WALKER PRINCIPAL - JUNIOR SCHOOL 40.0 0.0 X 242030 0 37010 KATHRYN A NELSON VP - INST ADVANCEMENT 40.0 0.0 X 216689 0 31455 PAULA G HODGES ACADEMY ASST PRINCIPAL 40.0 0.0 X 162981 0 26165 PAULINE L BAILEY DIR - HUMAN RESOURCES 40.0 0.0 X 155041 0 15425 JOHN R OVERTON II DIRECTOR - PHYSICAL PLANT 40.0 0.0 X 149973 0 28366 BETSY S HATA DIR - ADMISSION & FIN AID 40.0 0.0 X 148537 0 23481 WENDI A KAMIYA CHIEF INFORMATION OFFICER 40.0 0.0 X 135577 0 17397 2293869 0 288672 65 false true false RONS CONSTRUCTION CORPORATION 2045 KAM IV ROAD HONOLULU HI 96819 CONSTRUCTION SVCS 837915 DESIGN PARTNERS INC 1580 MAKALOA STREET SUITE 1100 HONOLULU HI 96814 ARCH/DESIGN SVCS 500000 FERNANDEZ EVENTS LLC 91-246 OIHANA ST KAPOLEI HI 96707 ENTERTAINMENT SVCS 428009 ROSENBERG MCKAY 733 BISHOP ST HONOLULU HI 96813 LAW FIRM SVCS 395925 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 021102112 INVESTMENT MGMT 390814 20 14643734 1726408 14643734 TUITION & FEES 611600 81863614 81863614 INSTRUCTIONAL SERVICES 611600 6507931 6507931 88371545 3886970 478176 3408794 0 0 288422 183573 104849 0 104849 104849 4238673 430406 4245728 425180 -7055 5226 -1829 -1829 2531917 2110026 421891 421891 0 278716 284727 -6011 -6011 CAFETERIA 900099 2627489 2627489 2627489 110048638 88371545 478176 6555183 0 5559971 5559971 0 0 1795075 597331 933012 264732 294988 294988 50169847 45054655 3684739 1430453 3576489 3180686 296441 99362 12929424 11067417 1377070 484937 3920586 3421281 375794 123511 0 149058 149058 96852 96852 0 7895 7895 544292 544292 1465392 108686 1254895 101811 321585 435 321150 1121634 453124 189608 478902 818210 705190 84568 28452 4413 4413 4153785 4019019 123566 11200 1349399 1181272 76451 91676 0 101133 54725 28150 18258 0 0 8244942 7977441 245270 22231 0 INSTRUCTIONAL 2749607 2749607 CAFETERIA EXPENSE 1475899 1475899 ADMINISTRATION 671115 390768 280347 ATHLETIC EXPENSE 518945 518945 649456 635028 13229 1199 102689992 89060113 10184913 3444966 8063752 5318743 47300629 48991934 15863984 15014702 321681 88821 0 0 0 0 265895 253805 240810 257010 2450556 2910891 250164136 123639395 121100945 126524741 71400451 80904120 109115875 109950990 0 0 0 0 24369316 23002143 400493894 413217900 23552949 25090021 0 0 6922306 6974850 0 0 0 0 0 0 0 0 0 0 7724992 7438378 38200247 39503249 X 228155135 235557799 62636632 61744090 71501880 76412762 362293647 373714651 400493894 413217900 X 7358646 5372230 -1309872 X X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3 26095 278121 6908898 true true 210810544 5291810 8912188 2455635 5660246 513000 216385661 194881890 4567655 19308806 2191676 5237265 518866 210810544 187609571 3805659 10962824 2026784 5013231 456150 194881889 188286691 3054138 3649994 1967870 4945137 468245 187609571 171887008 4559539 19027143 1892535 4912865 381599 188286691 0.47354 0.35313 0.17333 false false 500498 500498 158690568 67135438 91555130 28876996 11129701 17747295 53565463 44071162 9494301 8530611 1303094 7227517 126524741 INVESTMENT IN LTD PARTNERSHIPS 109950990 F 109950990 PERPETUAL TRUSTS 23002143 23002143 0 DEPOSITS HELD IN CUSTODY 902265 CAPITAL LEASE 304573 LIABILITY UNDER SPLIT-INTEREST 3435067 OTHER LIABILITIES 2796473 7438378 X 115666310 5372230 2293599 7665829 108000481 544292 1503865 2048157 110048638 104245306 2099606 2099606 102145700 544292 544292 102689992 RECONCILIATION OF REVENUE SCHEDULE D, PART XI, LINE 2D OTHER ADJUSTMENTS ARE AS FOLLOWS: CARNIVAL EXPENSES NET ON 990 : 2,110,026 RENTAL EXPENSES NET ON 990 : 183,573 ----------- TOTAL 2,293,599 SCHEDULE D, PART XI, LINE 4B OTHER ADJUSTMENTS ARE AS FOLLOWS: CHANGE IN VALUE OF SPLIT-INT AGR : 1,713,052 LOSS ON SALE OF FIXED ASSETS : 5,226 BOOKSTORE EXPENSES NET ON 990 : (284,727) FMV ADJUSTMENT - INVESTMENTS : 70,314 ---------- TOTAL 1,503,865 RECONCILIATION OF EXPENSES SCHEDULE D, PART XII, LINE 2D OTHER ADJUSTMENTS ARE AS FOLLOWS: CARNIVAL EXPENSES NET ON 990 : 2,110,026 RENTAL EXPENSES NET ON 990 : 183,573 LOSS ON SALE OF FIXED ASSETS : (5,226) BOOKSTORE EXPENSES NET ON 990 : 284,727 ACCOUNTING ADJ FOR ADOPTION OF FASB 158: (473,494) ---------------- TOTAL 2,099,606 FIN 48 FOOTNOTE THE SCHOOL RECOGNIZES INCOME TAX POSITIONS IN ACCORDANCE WITH ASC TOPIC 740-10 (INTEREPRETATION 48), INCOME TAXES - OVERALL, (ASC TOPIC 740), WHICH PRESCRIBES A "MORE-LIKELY THAN-NOT" RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE (THE LARGEST AMOUNT OF BENEFIT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED UPON ULTIMATE RESOLUTION WITH TAX AUTHORITIES) FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF AN INCOME TAX POSITION EXPECTED TO BE TAKEN IN A TAX RETURN. INTENDED USES OF THE ORGANIZATION'S ENDOWMENT FUNDS SCHEDULE D, PART V, LINE 4 THE PRIMARY PURPOSE OF THE ENDOWMENT FUNDS FOR PUNAHOU SCHOOL IS THE CREATION AND MAINTENANCE OF SCHOLARSHIPS IN ORDER TO HELP ALLEVIATE THE COST OF EDUCATING THEIR STUDENTS. true true true true true true true false false false false false false false false false true PUBLICATION OF RACIALLY NON-DISCRIMINATORY POLICY FORM 990, SCHEDULE E, LINE 3 STATED IN PERIODIC NEWSPAPER ADVERTISEMENT. CARNIVAL 2531917 2531917 20805 265126 784840 1039255 0 2531917 2531917 20805 265126 784840 1039255 2110026 421891 SCHOLARSHIPS 661 5559971 0 N/A N/A PROCEDURES FOR MONITORING USE OF GRANT FUNDS FORM 990, SCHEDULE I, PART I, LINE 2 GRANT FUNDS CONSIST ALMOST ENTIRELY OF SCHOLARSHIPS AND FINANCIAL AID, WHICH ARE GIVEN TO STUDENTS IN THE FORM OF TUITION REDUCTIONS OR WAIVERS. FUNDS ARE ALSO SET ASIDE FOR THE REIMBURSEMENT OF SCHOOL SUPPLIES FOR SOME STUDENTS. THESE STUDENTS MUST SUBMIT RECEIPTS DETAILING THEIR PURCHASES SO THAT PUNAHOU CAN VERIFY THAT AMOUNTS SUBMITTED FOR REIMBURSEMENT CONSIST ENTIRELY OF APPROVED EXPENDITURES. X X X true true X X X X false false false false false false false false false JAMES K SCOTT PRESIDENT 407436 0 0 0 11250 0 26000 0 17520 0 462206 0 0 0 JOHN D FIELD JR VP & TREASURER 220036 0 0 0 32500 0 17633 0 9620 0 279789 0 0 0 JILL M KAWANO ASSISTANT TREASURER 138758 0 0 0 0 0 14085 0 0 0 152843 0 0 0 KEVIN E CONWAY PRINCIPAL - ACADEMY 240561 0 0 0 32500 0 19392 0 5123 0 297576 0 0 0 MICHAEL T WALKER PRINCIPAL - JUNIOR SCHOOL 234530 0 0 0 7500 0 24240 0 12770 0 279040 0 0 0 KATHRYN A NELSON VP - INST ADVANCEMENT 209189 0 0 0 7500 0 17038 0 14417 0 248144 0 0 0 PAULA G HODGES ACADEMY ASST PRINCIPAL 162981 0 0 0 0 0 16548 0 9617 0 189146 0 0 0 PAULINE L BAILEY DIR - HUMAN RESOURCES 155041 0 0 0 0 0 15425 0 0 0 170466 0 0 0 JOHN R OVERTON II DIRECTOR - PHYSICAL PLANT 149973 0 0 0 0 0 15596 0 12770 0 178339 0 0 0 BETSY S HATA DIR - ADMISSION & FIN AID 148537 0 0 0 0 0 14933 0 8548 0 172018 0 0 0 WENDI A KAMIYA CHIEF INFORMATION OFFICER 135577 0 0 0 0 0 12867 0 4530 0 152974 0 0 0 DETAIL REGARDING COMPENSATION SCHEDULE J, PART I, LINE 1A FIRST-CLASS TRAVEL WAS PROVIDED TO THE ACADEMY PRINCIPAL AS A REASONABLE ACCOMODATION FOR A HEALTH CONDITION, AND IS NOT TREATED AS TAXABLE COMPENSATION. A HOUSING ALLOWANCE IS PROVIDED TO KEVIN CONWAY AND JOHN FIELD AND IS INCLUDED IN THEIR REPORTABLE COMPENSATION. THE PRESIDENT AND THE LOWER SCHOOL PRINCIPAL RESIDE ON CAMPUS AS A CONDITION OF EMPLOYMENT. THIS BENEFIT WAS TREATED AS NONTAXABLE COMPENSATION. THE PRESIDENT, TREASURER, AND VP OF INSTITUTIONAL ADVANCEMENT ARE MEMBERS OF SOCIAL CLUBS FOR THE PURPOSE OF RECREATION, NETWORKING, AND ENTERTAINMENT. THE PORTION OF EXPENSES THAT CAN BE TRACED TO PERSONAL USE ARE TREATED AS TAXABLE COMPENSATION. EXPENSE REIMBURSEMENT POLICY SCHEDULE J, PART I, LINE 1B THE SCHOOL FOLLOWS A WRITTEN EXPENSE REIMBURSEMENT POLICY REQUIRING ALL THREE OF THE FOLLOWING: (1) THE EXPENSE MUST BE A SCHOOL-RELATED EXPENSE; (2) SUBSTANTIATION RECEIPTS ARE REQUIRED WITHIN A REASONABLE AMOUNT OF TIME; (3) EXCESS ADVANCES MUST BE RETURNED WITHIN A REASONABLE AMOUNT OF TIME. TUITION REMISSION All regular full-time faculty and staff hired after February 16, 1994, are eligible to receive full tuition remission for one child. All regular full-time faculty and staff hired on or before February 16, 1994 and have been continuously employed by Punahou, are eligible to receive full tuition remission for two children. This benefit is treated as a nontaxable compensation. SUSAN J FIELD FAMILY MEMBER OF OFFICER 102729 SEE SCHEDULE L DISCLOSURE false WENDY S MACIAS WALKER FAMILY MEMBER OF KEY EMP 90674 SEE SCHEDULE L DISCLOSURE false MARI-JO SCHULL FAMILY MEMBER OF TRUSTEE 101586 SEE SCHEDULE L DISCLOSURE false BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L, PART IV, COLUMN (D) THE PAYMENTS NOTED BELOW REPRESENT COMPENSATION PAID BY THE ORGANIZATION TO FAMILY MEMBERS OF INTERESTED PERSONS FOR SERVICES RENDERED TO THE ORGANIZATION. PAYMENT AMOUNTS WERE DETERMINED BY INDIVIDUALS WITHOUT A CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION, AND ANY INTERESTED PERSONS RECUSED THEMSELVES IN ACCORDANCE WITH THE CONFLICT OF INTEREST POLICY DISCLOSED ABOVE. JOHN D. FIELD: MR. FIELD'S SPOUSE, SUSAN FIELD, RECEIVED COMPENSATION FROM THE SCHOOL FOR SERVICES AS AN ACADEMY MATH TEACHER. MICHAEL T. WALKER: MR. WALKER'S SPOUSE, WENDY MACIAS-WALKER, RECEIVED COMPENSATION FROM THE SCHOOL FOR SERVICES AS A PSYCHOSOCIAL EDCUATION INSTRUCTOR. CLAIRE O. JOHNSON: MS. JOHNSON'S DAUGHTER, MARI-JO-SCHULL, RECEIVED COMPENSATION FROM THE SCHOOL FOR SERVICES AS A 4TH GRADE TEACHER. X 5 1278 REPLACEMENT COST X 128155 REPLACEMENT COST X 114 1525327 AVG MARKET PRICE false true true NON-CASH DONATIONS DISCLOSURE SCHEDULE M, COLUMN B The organization is reporting the number of contributions received on Column B of Schedule M. For contributions of securities, each separate gift is reported on Column B. THIRD PARTIES USED TO SELL NON-CASH DONATIONS SCHEDULE M, PART I, LINE 32B THE ORGANIZATION USES A THIRD PARTY BROKERAGE SERVICE TO SELL ALL DONATED STOCK. METHOD OF DETERMINING REVENUES SCHEDULE M, PART I, COLUMN D CONTRIBUTED PROPERTY IS RECORDED AS INCOME AT THE FAIR VALUE OF THE PROPERTY ON THE DATE OF DONATION. THE FAIR VALUE OF PUBLICLY TRADED SECURITIES IS BASED ON AVERAGE MARKET PRICES. OTHER PROGRAM SERVICES FORM 990, PART III, LINE 4D Athletics - Punahou School has been a member of the ILH (Interscholastic League of Honolulu) since 1909 and fields over 115 competitive teams. Students interested in participating on an athletic team can try out for one of 23 different sports beginning in the 7th grade. Student Activities - For many students, Punahou becomes more than just a school; it serves as a community, a neighborhood, a place which provides a large part of their total environment. Thus, the student activities are varied and offer the students opportunities to get involved in special interest clubs, May Day/Holoku Pageant and curriculum-related travel by athletic teams, speech/debate and musical groups. Theatre Programs - Theatre has a long history at Punahou. Informal classroom activities growing out of a class studies initiate play-acting in early grades. More structured stage experiences are offered in the Grades 5 and 7 Keaka Punahou Clubs and Thurston Memorial Chapel performances. Theatre opportunities in the Drama Workshop classroom or on the Dillingham stage are offered each semester for seventh and eighth graders. Academy students have the opportunity to perform in a play each semester, or to direct or act in student-initiated productions in the Drama Workshop. Formal Theatre courses are offered in Technical Theatre, Acting and Musical Theatre in the Academy. REVIEW PROCESS FOR FORM 990 FORM 990, PART VI, SECTION B, LINE 11 The Board of Trustees has delegated the review of the Form 990 to the Audit Committee. The organization's Assistant Treasurer & Controller works closely with the outside accounting firm it engages to review the return; and the final draft of Form 990 is also reviewed by the Vice President of Finance and Administration prior to providing the draft to the Audit Committee. Subsequent to its review, the Audit Committee reports back to the Board regarding its oversight of the Form 990 and a complete copy of the Form 990 & Form 990-T is provided to the entire voting Board before the return is filed. CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C This Conflict of Interest Policy was duly adopted by the Board of Trustees of Punahou School, a Hawaii nonprofit corporation (the School), on June 12, 2007. 1. Purpose. The Board of Trustees recognizes that the Trustees, Directors, KEY EMPLOYEES, and Officers are active participants in the communities in which they live. As such, these people may serve in many capacities with businesses, organizations, agencies and programs that may intersect with the interests of the School. While such roles may give rise to a dual interest which is beneficial to all parties, the Trustees, Directors, KEY EMPLOYEES, and Officers, must be sensitive to instances that may be perceived to present a conflict between the best interests of the School and their individual interests. Accordingly, the purpose of this Conflict of Interest Policy is to protect the interest of the School, and to assist the Trustees, Directors, KEY EMPLOYEES, and Officers in carrying out their fiduciary obligations, when the Trustees, Directors, KEY EMPLOYEES, and Officers are contemplating any arrangement that may benefit the private interest of a trustee, director, KEY EMPLOYEE, OR officer of the School. This policy is intended to supplement but not replace any applicable laws of the State of Hawaii governing conflicts of interest. 2. Definitions. Arrangement shall mean any issue, matter, contract, agreement, transaction or other arrangement with the School or in which the School has an interest. Conflict of Interest shall mean any action or proposed action by a Trustee, director, KEY EMPLOYEE, or officer with respect to an Arrangement with or involving: (i) such Trustee, Director, KEY EMPLOYEE, or Officer (ii) the spouse of such person, or (iii) a Related Entity of such person. An Arrangement in which no action is taken or proposed to be taken by a Trustee, Director, KEY EMPLOYEE, or Officer (i.e., transactions which are not brought before the Board of Trustees or officers for approval) shall not constitute a Conflict of Interest. Interested Person shall mean any Trustee, Director, KEY EMPLOYEE, or Officer, having a Conflict of Interest. Related Entity shall mean any organization in which a Trustee, Director, KEY EMPLOYEE, or Officer, or the spouse of such Trustee, Director, KEY EMPLOYEE, or Officer, directly or indirectly (i) owns or controls a majority of the voting power or beneficial interests, or (ii) is an officer, director, trustee, KEY EMPLOYEE, partner or otherwise serves in a fiduciary capacity. 3. Conflict of Interest Procedures. (a) Duty to Disclose. An Interested Person shall promptly disclose to the Board of Trustees the existence of a Conflict of Interest known to the Interested Person and all material facts relating to the Conflict of Interest. Trustees, Directors, KEY EMPLOYEES, and Officers are encouraged to disclose any Arrangements which may not constitute an actual Conflict of Interest, but which give rise to the appearance of a Conflict of Interest. The conflict of interest policy will be monitored by the audit committee. Any actual or potential Conflict of Interest may also be raised by any other member of the Board of Trustees. (b) Procedures for Addressing the Conflict of Interest. (i) An Interested Person may make a presentation to the Board of Trustees, but after such presentation, the Interested Person shall recuse themselves from the meeting during the discussion of, and the vote on, the Arrangement involving the Conflict of Interest or the appearance of a Conflict of Interest. (ii) The chairperson of the Board of Trustees shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed Arrangement. The Board of Trustees shall endeavor, to the extent reasonably practical, to comply with the "rebuttable presumption of reasonableness" set forth in Internal Revenue Service Treasury Regulation 53.4958-6 when evaluating any proposed Arrangement. (iii) After exercising due diligence, the Board of Trustees shall determine whether the School is able to obtain a more advantageous arrangement with reasonable efforts from a person or entity that would not give rise to a Conflict of Interest or the appearance of a Conflict of Interest. (iv) If a more advantageous arrangement is not reasonably attainable under circumstances that would not give rise to a Conflict of Interest or the appearance of a Conflict of Interest, the Board of Trustees shall determine by a majority vote of the disinterested Trustees: that the Arrangement is in the School's best interest, is fair and reasonable to the School, and whether to enter into the Arrangement. 4. Record of Proceedings. The minutes of the Board of Trustees shall contain: (a) The names of the persons who disclosed or otherwise were found to have a Conflict of Interest and the nature of the Conflict of Interest. (b) The names of the persons who were present for the discussion and vote relating to the Arrangement, the content of the discussion (including any action taken to determine whether the Conflict of Interest was in the School's best interest and any alternatives to the proposed Arrangement), and a record of any votes taken in connection therewith. 5. Annual Statements. EACH TRUSTEE, DIRECTOR, KEY EMPLOYEE, or OFFICER SHALL ANNUALLY FILL OUT A CONFLICT OF INTEREST STATEMENT. IN IT, THEY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON (I) HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, (II) HAS READ AND UNDERSTANDS THE POLICY, (III) AGREES TO COMPLY WITH THE POLICY, AND (IV) DISCLOSES ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST (AS DEFINED IN THE CONFLICT POLICY). COMPENSATION DETERMINATION FORM 990, PART VI, SECTION B, LINE 15A & 15B The Board appoints a Compensation Committee, comprised solely of independent trustees, none of which have a conflict of interest with respect to the compensation arrangement, to be accountable for setting reasonable compensation for each officer or key employee. The President, consistent with the organization's philosophy and principles, and based on performance goals established for the President by the Board and Compensation Committee, develops annual performance goals and criteria to be used by the Compensation Committee in determining merit increases for other officers and key employees. The President acts solely as an advisor in this process, and does not determine, or have a vote with regards to officer or key employee salaries. Appropriate comparability data is obtained from independent experts, i.e., total economic benefits paid by similarly situated organizations (both taxable and tax-exempt) for similar job responsibilities. The Committee's written record include the (1) terms of the arrangement with the President and/or officers and key employees (including the date the arrangement was approved); (2) a list of members present during the debate on the transaction (and how the members voted when it was approved); (3) a description of the comparable data relied on by the Committee; and (4) any actions taken with respect to consideration of the transaction by members of the committee who had a conflict of interest with respect to the transaction. Key deliberations of the Committee are also documented in minutes which are approved at the next Committee meeting. A benchmark review was prepared in August 2014. The Ad Hoc Committee on Executive Compensation reviewed and approved the benchmarks on 10/20/2014. Their recommendation was approved in the Board Executive Committee Meeting on 12/09/2014. INFORMATION AVAILABLE TO PUBLIC FORM 990, PART VI, SECTION C, LINE 19 While federal tax laws do not mandate that the organization's governing documents, conflict of interest policy and financial statements be made available for public inspection, the organization makes its financial statements available upon request. OTHER CHANGES IN NET ASSETS OR FUND BALANCES FORM 990, PART XI, LINE 9 OTHER CHANGES ARE AS FOLLOWS: CHANGE IN VALUE OF SPLIT-INT AGR: (1,713,052) FMV ADJUSTMENT - INVESTMENTS : (70,314) ADOPTION OF PROVISIONS OF SFAS 158: 473,494 ------------ TOTAL (1,309,872) RELATIONSHIPS BETWEEN OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES FORM 990, PART VI, SECTION A, LINE 2 CONSTANCE LAU, A MEMBER OF THE BOARD OF TRUSTEES, JEFFREY WATANABE, A MEMBER OF THE BOARD OF TRUSTEES, AND JAMES SCOTT, PRESIDENT, HAVE A BUSINESS RELATIONSHIP IN A FOR-PROFIT ENTITY. CNW FACULTY BENEFIT TRUST AT PUNAHOU PO BOX 3170 DEPT 715 HONOLULU HI 968023170 990301435 CHAR. TRUST HI 501(C)(3) 11D PUNAHOU SCH true CF CHARITABLE TRUST PO BOX 3170 DEPT 715 HONOLULU HI 968023170 916571634 CHAR. TRUST HI 501(C)(3) PF PUNAHOU SCH true JTW TE COTR PUNAHOU 1ST HWN BANK PO BOX 3708 HONOLULU HI 96801 996048709 CHAR. TRUST HI 501(C)(3) 11D PUNAHOU SCH true false false true false false false false false false false false false false false false false false false false CNW FACULTY BENEFIT TRUST AT PUNAHOU c 824693 cash received CF TRUST c 112804 cash received JTW TE COTR PUNAHOU c 823983 cash received