2015-02-12T14:14:46-06:00 2014-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 125 BAYLIS ROAD MELVILLE NY 117473823 990 2013-07-01 116112414 THE STONY BROOK SCHOOL STON 6317511800 1 CHAPMAN PARKWAY STONY BROOK NY 117901799 SCOTT PAVAO CFO 6317511800 2015-02-11 1 GORDON SIESS CPA PARTNER P00027748 6317527400 2013 2016-03-07 17:11:31Z SCOTT PAVAO 1 CHAPMAN PARKWAY STONY BROOK NY 117901799 26814147 0 X WWW.STONYBROOKSCHOOL.ORG X 1922 NY THE STONY BROOK SCHOOL IS AN INDEPENDENT COLLEGE PREPARATORY SCHOOL (GRADES 7 - 12). 14 14 205 25 17522 16502 1640649 1739250 11901627 12667168 746653 907412 80779 59245 14369708 15373075 2115162 2806234 0 0 5923906 6795588 0 0 738423 5867349 6091631 13906417 15693453 463291 -320378 46380372 49649954 6075797 8210394 40304575 41439560 X THE STONY BROOK SCHOOL IS AN INDEPENDENT COLLEGE PREPARATORY SCHOOL (GRADES 7-12) THAT EXISTS TO CHALLENGE YOUNG MEN AND WOMEN TO KNOW JESUS CHRIST AS LORD, TO LOVE OTHERS AS THEMSELVES, AND TO GROW IN KNOWLEDGE AND SKILL, IN ORDER THAT THEY MAY SERVE THE WORLD THROUGH THEIR CHARACTER AND LEADERSHIP. 0 0 13391621 2806234 12265763 EDUCATION OF BOARDING AND DAY STUDENTS IN GRADES 7-12. ENROLLMENT IS APPROXIMATELY 335 STUDENTS. 356665 401406 EDUCATION PROGRAMS INCLUDING TUTORIAL, ACADEMIC CLASSES, SPORTS, MARINE PROGRAMS, AND COMPUTER COURSES FOR STUDENTS DURING SIX WEEKS IN THE SUMMER. 13748286 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 28 0 1 205 1 1 1 0 0 0 0 1 1 0 0 0 0 0 X 14 14 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X SCOTT PAVAO CFO 6319411560 C/O THE STONY BROOK SCHOOL 1 STONY BROOK NY 11790 JACK HALL PRESIDENT & CHAIR 4.00 0.00 X X 0 0 0 ELAINE KANAS VICE-CHAIR 4.00 0.00 X X 0 0 0 J DOUGLAS KIRK SECRETARY 4.00 0.00 X X 0 0 0 S MICHAEL KOH TREASURER 4.00 0.00 X X 0 0 0 DIANE BENNETT TRUSTEE 2.00 0.00 X 0 0 0 SHARON BOTTOMLEY TRUSTEE 2.00 0.00 X 0 0 0 ALAN CHAPMAN TRUSTEE 2.00 0.00 X 0 0 0 STEPHEN DILL TRUSTEE 2.00 0.00 X 0 0 0 ETHAN HARRIS TRUSTEE 2.00 0.00 X 0 0 0 JOCELYN HATHAWAY HUTZLE TRUSTEE 2.00 0.00 X 0 0 0 JOHN HAILE TRUSTEE 2.00 0.00 X 0 0 0 NORMAN A KOOP TRUSTEE THRU APRIL 2014 2.00 0.00 X 0 0 0 WENDELYNE HORST MURPHY TRUSTEE 2.00 0.00 X 0 0 0 HENRY HO TRUSTEE 2.00 0.00 X 0 0 0 NATHAN HART TRUSTEE 2.00 0.00 X 0 0 0 DAVID A ROBINSON TRUSTEE THRU APRIL 2014 2.00 0.00 X 0 0 0 DANIEL C YATES TRUSTEE THRU APRIL 2014 2.00 0.00 X 0 0 0 SCOTT PAVAO ASSISTANT TREASURER 50.00 0.00 X 82600 0 12051 JOSHUA CRANE HEAD OF SCHOOL 7/1/2013 TO PRESENT 60.00 0.00 X 95800 0 17568 178400 0 29619 0 0 0 0 RACANELLI CONSTRUCTION CO INC 1895 WALT WHITMAN ROAD 1 MELVILLE NY 11747 BUILDING CONSTRUCTION 1220629 SAGE DINING SERVICES INC 222 BOSLEY AVENUE STE B-7 TOWSON MD 21204 FOOD SERVICE MANAGEMENT 1072173 AS A WHISTLE CLEANING SERVICE 7 ANTLER LANE SOUTH SETAUKET NY 11720 CUSTODIAL SERVICES 507860 AUSTIN & CO INC 20 CORPORATE WOODS BLVD ALBANY NY 122112350 INSURANCE 501336 ALL ISLAND MECHANICAL POBOX 289 RONKONKOMA NY 11779 BUILDING CONSTRUCTION 239930 8 23848 1715402 265401 1739250 TUITION 611710 11577467 11577467 STUDENT FEES 611710 688295 688295 SUMMER PROGRAMS 611710 401406 401406 12667168 222610 222610 12061953 11377151 684802 684802 17522 667280 10442 23848 10442 0 57411 53479 3932 3932 MISCELLANEOUS 900099 55313 55313 55313 15373075 12671100 17522 945203 2806234 2806234 271855 271855 3486447 2941866 281166 263415 214439 177596 20844 15999 2539083 2123869 174978 240236 283764 221782 42171 19811 2407 2407 58826 58826 26546 26546 586802 529562 28425 28815 29724 20238 9486 341016 184458 111960 44598 200005 147723 37183 15099 643735 608027 20912 14796 132931 89463 15249 28219 55040 35753 18613 674 88547 77408 9749 1390 278473 249135 23627 5711 TAX AND LICENSES 7396 5182 2214 FOOD SERVICE 1145601 1145601 SECURITY AND CUSTODIAL 686232 656467 15852 13913 HEALTH CENTER 426389 426389 1381961 1301533 34681 45747 15693453 13748286 1206744 738423 1191973 1767283 295812 1965759 1538303 1077721 931908 86750 67734 76203 172651 316081 28398844 26812280 28398844 14162452 15022587 1115440 845135 91819 93591 46380372 49649954 1175848 756600 4643960 4830013 2350000 5762 250227 273781 6075797 8210394 X 24708540 25616270 2282360 2362138 13313675 13461152 40304575 41439560 46380372 49649954 -320378 1455363 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 14895676 154902 2286804 317385 2212220 14807777 13660819 228788 1492269 316443 169757 14895676 14692800 152384 -612865 342422 229078 13660819 12704557 155481 2242762 234600 175400 14692800 11430114 390995 1287448 256100 147900 12704557 0.00400 0.90900 0.08700 0 0 508612 508612 20634913 20634913 5208401 5208401 2046918 2046918 28398844 AGENCY FUNDS 108613 CHARITABLE GIFT ANNUITIES 165168 273781 X 14049137 1455363 53479 1508842 12540295 26546 2806234 2832780 15373075 12914152 53479 53479 12860673 26546 2806234 2832780 15693453 PART V, LINE 4: UTILIZED TO FUND VARIOUS PROGRAM ACTIVITIES WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. PART X, LINE 2: ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE SCHOOL AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF THE SCHOOL HAS TAKEN AN UNCERTAIN POSITION THAT MORE-LIKELY-THAN-NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE SCHOOL, AND HAS CONCLUDED THAT AS OF JUNE 30, 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY (OR ASSET) OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE SCHOOL IS SUBJECT TO ROUTINE AUDITS BY THE TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 53,479. PART XI, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS 2,806,234. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 53,479. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS 2,806,234. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 THE ADMISSIONS OFFICE PUBLISHES THE NON-DISCRIMINATORY POLICY AT LEAST ANNUALLY IN SEVERAL LOCAL NEWPAPERS SERVING SUFFOLK COUNTY AND LONG ISLAND. THE POLICY IS ALSO INCLUDED IN THE SCHOOL VIEWBOOK WHICH IS THE PRIMARY ADMISSIONS PUBLICATION. MAIN EVENT 34290 23848 10442 6898 3544 34290 23848 10442 6898 3544 10442 0 1 FINANCIAL AID 154 2806234 PARENT FINANCIAL STATEMENT ASSESSED BY SCHOOL & STUDENT SRVCS DEPT OF NAIS. NEED BASED FINANCIAL AID. PART I, LINE 2: GRANTS ARE IN THE FORM OF NON-CASH SCHOLARSHIPS OR FINANCIAL AID USED SOLELY TO REDUCE TUITION. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 PART I, LINE 1A THE SCHOOL IS A BOARDING-DAY SCHOOL THAT OPERATES 24/7 AND AS SUCH REQUIRES THE HEADMASTER AND ALL FACULTY AND KEY ADMINISTRATORS TO LIVE ON CAMPUS IN SCHOOL OWNED HOUSING AS A CONDITION OF EMPLOYMENT AND FOR THE CONVENIENCE OF THE INSTITUTION IN CARRYING OUT ITS MISSION AND PURPOSE. PART I, LINE 3 THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES IS RESPONSIBLE TO CONDUCT A PERFORMANCE REVIEW OF THE HEADMASTER (CEO) AND DISCUSS THE TERMS OF THE ANNUAL EMPLOYMENT CONTRACT HE/SHE WILL RECEIVE. GUIDANCE IS PROVIDED FOR SETTING COMPENSATION FROM EDUCATIONAL SALARY INFORMATION OBTAINED FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS FOR SCHOOLS OF COMPARABLE SIZE AND HEADS WITH COMPARABLE EXPERIENCE. THE PRESIDENT OF THE BOARD THEN NEGOTIATES THE CONTRACT WITH THE HEADMASTER AND INFORMS THE EXECUTIVE COMMITTEE WHEN IT IS FINALIZED. THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS DETERMINED ANNUALLY BY THE HEADMASTER OF THE SCHOOL BASED ON EMPLOYEE PERFORMANCE REVIEWS AND SALARY RANGES FOR ADMINISTRATIVE POSITIONS OBTAINED FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS. JOHN KANAS SPOUSE OF BOARD MEMBER BUILDING CONSTRUCTION X 2350000 2350000 0 1 1 2350000 MARTHA PAVAO SPOUSE OF OFFICER 41730 FULL TIME FACULTY 0 X 1 13000 AVG. FMV AT GIFT DATE X 13 252401 AVG. FMV AT GIFT DATE 0 0 0 1 PART I, LINE 32B: THE ORGANIZATION USES BROKERS TO SELL STOCKS GIFTED TO THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 3 THE MANAGEMENT OF THE FOOD SERVICE OPERATION AT THE SCHOOL IS CONTRACTED OUT TO SAGE DINING SERVICES, INC. THE MANAGEMENT OF THE CUSTODIAL SERVICE AT THE SCHOOL IS CONTRACTED OUT TO AS A WHISTLE CLEANING SERVICE. FORM 990, PART VI, SECTION B, LINE 11 AN ADHOC COMMITTEE COMPRISED OF MEMBERS OF THE EXECUTIVE AND FINANCE/AUDIT COMMITTEES OF THE BOARD OF TRUSTEES MEETS WITH THE PARTNER OF THE AUDITING FIRM TO REVIEW THE COMPLETED FORM 990 AND APPROVE THE FORM FOR FILING ON BEHALF OF THE BOARD. BOARD OF TRUSTEE MEMBERS WILL RECEIVE COPIES OF THE FORM 990 THAT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE CONFLICT OF INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE TRUSTEES AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE POTENTIAL CONFLICT OF INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE SHALL LEAVE THE BOARD OF TRUSTEES OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. THE BOARD OF TRUSTEES OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED TRUSTEES WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE SCHOOL'S BEST INTEREST, FOR ITS OWN BENEFIT, AND WHETHER IT IS FAIR AND REASONABLE. IN CONFORMITY WITH THE ABOVE DETERMINATION, IT SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES IS RESPONSIBLE TO CONDUCT A PERFORMANCE REVIEW OF THE HEADMASTER (CEO) AND DISCUSS THE TERMS OF THE ANNUAL EMPLOYMENT CONTRACT HE/SHE WILL RECEIVE. GUIDANCE IS PROVIDED FOR SETTING COMPENSATION FROM EDUCATIONAL SALARY INFORMATION OBTAINED FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS FOR SCHOOLS OF COMPARABLE SIZE AND HEADS WITH COMPARABLE EXPERIENCE. THE PRESIDENT OF THE BOARD THEN NEGOTIATES THE CONTRACT WITH THE HEADMASTER AND INFORMS THE EXECUTIVE COMMITTEE WHEN IT IS FINALIZED. 15B - THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS DETERMINED ANNUALLY BY THE HEADMASTER OF THE SCHOOL BASED ON EMPLOYEE PERFORMANCE REVIEWS AND SALARY RANGES FOR ADMINISTRATIVE POSITIONS OBTAINED FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT PUBLISHED. THE CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO ALL BOARD MEMBERS AND IS INCLUDED IN THE GENERAL EMPLOYEE HANDBOOK. IF A PERSON WANTED TO SEE DOCUMENTS, POLICY, AND/OR FINANCIAL STATEMENTS, THEY WOULD BE MADE AVAILABLE FOR REVIEW IN THE BUSINESS OFFICE OF THE SCHOOL. GENERAL NOTE: INVESTMENT SUB-COMMITTEE MANAGEMENT OF THE ENDOWMENT PORTFOLIO IS DISTRIBUTED BETWEEN THREE MANAGERS AND FIVE MUTUAL OR EXCHANGE TRADED FUNDS. SINCE 1999, A FORMAL INVESTMENT SUB-COMMITTEE ESTABLISHED AT THE BOARD LEVEL HAS OVERSEEN THE MANAGERS AND CHOSEN THE FUNDS. THE MAJORITY OF THE MEMBERS OF THE SUB-COMMITTEE ARE ALL PROFESSIONALS IN THE INVESTMENT BUSINESS. A FORMAL ENDOWMENT INVESTMENT POLICY TO GUIDE THE BOARD IN IT'S FIDUCIARY RESPONSIBILITIES WAS ENACTED IN 2000 AND REVISED SEVERAL TIMES TO ADAPT TO CHANGING MARKET CONDITIONS, MOST RECENTLY IN MARCH OF 2010. THE ENDOWMENT INVESTMENT POLICY ALSO AUTHORIZES AN ANNUAL DRAW OF BETWEEN 4% AND 5% OF THE AVERAGE ENDOWMENT MARKET VALUE OF PERMANENT CORPUS OVER A ROLLING PERIOD OF 12 QUARTERS (3 YEARS). THE INVESTMENTS IN THE CHARITABLE GIFT ANNUITY FUND ARE LIKEWISE INVESTED IN SEVERAL MUTUAL FUNDS / ETF AND ARE GUIDED BY AN CHARITABLE GIFT ANNUITY FUND INVESTMENT POLICY SEEKING TO MEET ALL LEGAL RESERVE REQUIREMENTS AS WELL AS PROVIDE FUNDING FOR ANNUITY OBLIGATIONS. THE CHARITABLE GIFT ANNUITY FUND POLICY WAS ESTABLISHED IN 2005 AND UPDATED IN 2007.