2015-05-14T13:59:46-05:00 2014-06-30 420714325 MCGLADREY LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2013-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3367212615 601 S CHURCH ST WINSTONSALEM NC 27101 DEREK BRYAN CFO 3367212615 2015-05-07 1 ADRIENNE MCKINNEY P00819656 3362724551 2013 2016-02-25 16:41:14Z DE LORRAINE STERRITT P 601 S CHURCH ST WINSTONSALEM NC 27101 99600751 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. 32 32 830 200 0 0 4240145 4277332 27413724 28319795 3202635 8574660 1058498 1280669 35915002 42452456 11921958 12848611 0 0 12994998 13230959 0 0 1043198 10267407 11223923 35184363 37303493 730639 5148963 105216178 111259335 29515714 30006564 75700464 81252771 SEE SCHEDULE O. 0 0 29788011 12848611 29449352 SALEM ACADEMY & COLLEGE PROVIDES A COLLEGE EDUCATION TO APPROXIMATELY 1,100 FULL-TIME STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 175 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. 29788011 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 1656 0 1 830 1 0 0 0 0 0 0 0 0 X 32 32 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 0 0 X DEREK BRYAN 3367212613 601 S CHURCH ST WINSTON SALEM NC 27101 LISA HERRON BANKOFF TRUSTEE 1.00 X 0 0 0 DEANA BASS TRUSTEE 1.00 X 0 0 0 ELIZABETH COPELAND BECHER TRUSTEE 1.00 X 0 0 0 CHARLES A BLIXT CHAIR, TRUSTEE 1.00 X X 0 0 0 JO STEPHENSON BROWN TRUSTEE 1.00 X 0 0 0 D WAYNE BURKETTE TREASURER, TRUSTEE 1.00 X X 0 0 0 ROBIAUN L CHARLES TRUSTEE 1.00 X 0 0 0 L DUANE DAVIS TRUSTEE 1.00 X 0 0 0 MARY MAPLES DUNN TRUSTEE 1.00 X 0 0 0 RODGERYN R FLOW TRUSTEE 1.00 X 0 0 0 MCDARA P FOLAN III TRUSTEE 1.00 X 0 0 0 GINGER RENICK GRIFFIN TRUSTEE 1.00 X 0 0 0 ANN STONE HANES TRUSTEE 1.00 X 0 0 0 SALLIE CRAIG TUTON HUBER TRUSTEE 1.00 X 0 0 0 STEPHEN G JENNINGS TRUSTEE 1.00 X 0 0 0 LEIGH FLIPPIN KRAUSE VICE CHAIR, TRUSTEE 1.00 X X 0 0 0 MARTHA RIGGS LOWRY TRUSTEE 1.00 X 0 0 0 JENNIFER REINHARDT LYNCH TRUSTEE 1.00 X 0 0 0 MARTHA JOHNSTON MANNING TRUSTEE 1.00 X 0 0 0 CHI-CHI ZIGLAR MESSICK TRUSTEE 1.00 X 0 0 0 WILLIAM H PETREE JR TRUSTEE 1.00 X 0 0 0 WILLIAM R PHILLIPS TRUSTEE 1.00 X 0 0 0 S MARGARET PIKE TRUSTEE 1.00 X 0 0 0 M ELIZABETH RADER TRUSTEE 1.00 X 0 0 0 REBECCA HEWIT RAUENHORST TRUSTEE 1.00 X 0 0 0 LUCY ROSE TRUSTEE 1.00 X 0 0 0 ANNA MCCOY SMITH SECRETARY, TRUSTEE 1.00 X X 0 0 0 G DEE SMITH TRUSTEE 1.00 X 0 0 0 NANCY TAYLOR SUMNER TRUSTEE 1.00 X 0 0 0 RAMON VELEZ TRUSTEE 1.00 X 0 0 0 D JOEFF WILLIAMS TRUSTEE 1.00 X 0 0 0 WALLACE C WU TRUSTEE 1.00 X 0 0 0 SUSAN PAULY PRESIDENT 60.00 X 208793 0 20168 WANDA MOTSINGER EXECUTIVE SECRETARY 40.00 X 41937 0 9798 VICKI SHEPPARD VP INSTITUTIONAL ADVANCEMENT 40.00 X 105780 0 13021 DEREK BRYAN CFO 40.00 X 110503 0 17729 SUSAN CALOVINI DEAN OF COLLEGE 40.00 X 116929 0 18636 KARL SJOLUND ACADEMY HEAD 40.00 X 123289 0 21355 707231 0 100707 5 0 1 0 FRANK L BLUM CONSTRUCTION COMPANY PO BOX 4153 WINSTON SALEM NC 27115 CONSTRUCTION 5300356 ARAMARK SERVICES INC PO BOX 906023 CHARLOTTE NC 28290 DINING SERVICES 1955208 DEUTSCHE BANK - ALEX BROWN 100 N MAIN ST 2400 WINSTON SALEM NC 27101 INVESTMENT ADVISORY SERVICES 376914 UNIVERSAL PROTECTION SERVICES 26375 NETWORK PLACE CHICAGO IL 60673 SECURITY 331027 KEIGER GRAPHIC COMMUNICATION 3735 KIMWELL DRIVE WINSTON SALEM NC 27103 PRINTING SERVICES 271277 11 88360 4188972 128829 4277332 TUITION AND FEES 611710 21050302 21050302 FOOD SERVICES 611710 3765382 3765382 HOUSING REVENUE 611710 3406766 3406766 BOOK STORE REVENUE 611710 97345 97345 28319795 1320323 1320323 118670 67160 51510 51510 51510 64085074 250398 56731135 350000 7353939 -99602 7254337 -99602 7353939 OTHER REVENUE 611710 769831 769831 GOVERNOR'S SCHOOL 611710 341319 341319 COMMUNITY SERVICE 611710 118009 118009 1229159 42452456 29449352 0 8725772 12848611 12848611 527970 317492 210478 10435924 7791077 2160996 483851 450621 323308 94380 32933 1057862 673920 316674 67268 758582 560559 161200 36823 35128 35128 104118 104118 487826 487826 812214 281572 530642 567347 391384 175963 752834 392125 360709 147550 147550 398294 370961 24004 3329 720724 720724 1821412 1457130 364282 303213 303213 AUXILARY ENTERPRISE 1720671 1720671 REPAIRS & MAINTENANCE 915910 732728 183182 UTILITIES 819741 655793 163948 COMMUNICATIONS 299848 239878 59970 1317093 480020 628557 208516 37303493 29788011 6472284 1043198 1331883 2272912 4941984 3075189 306668 486200 176186 144898 100 66900336 35772251 25636596 31128085 45847896 61180888 8266562 18708403 12971063 105216178 111259335 2081867 2452897 662036 1502940 24874760 24350246 215415 192120 1681636 1508361 29515714 30006564 X 4331645 3416906 17368704 19016350 54000115 58819515 75700464 81252771 105216178 111259335 X 5148963 -488028 891372 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 54511646 3047005 8058852 2705384 62912119 50202553 1044083 5920370 2655360 54511646 52844007 1805618 -389170 2670112 51590343 45553433 1466429 9077612 3253467 52844007 42688892 1645876 4332568 3113903 45553433 0.03190 0.75040 0.21770 1 0 3046852 3046852 50400138 50400138 13064352 13064352 388994 35772251 -35383257 31128085 SPLIT INTEREST AGREEMENTS 10633168 UNSPENT BOND PROCEEDS 1185569 CASH SURRENDER VALUE OF LIFE INSURANCE 842897 DEBT ISSUANCE COSTS 259040 INTEREST IN OIL WELL 50389 12971063 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 257926 REVOLVING PERKINS LOAN 207337 INTEREST RATE SWAP LIABILITY 1043098 1508361 X 30021539 -488028 -11981239 -12469267 42490806 110912 -149262 -38350 42452456 24469232 125262 125262 24343970 110912 12848611 12959523 37303493 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: THE SINGLE SISTERS HOUSE (CONSTRUCTED IN 1785, RENOVATED IN 2006-07) ENCOMPASSES A REMARKABLE STORY OF GIRLS AND WOMEN WHOSE LEADERSHIP AND COMMUNITY SERVICE HELPED BUILD AN EDUCATIONAL INSTITUTION THAT HAS THRIVED FOR OVER 242 YEARS. THE SINGLE SISTERS HOUSE SERVES AS A WELCOME CENTER AND GATEWAY TO THE CAMPUS; PROVIDES CLASSROOMS, CONFERENCE ROOMS, AND A LECTURE HALL; CONTAINS THE OFFICE OF COLLEGE ADMISSION AND PUBLIC RELATIONS; AND A MUSEUM WHERE VISITORS ARE ABLE TO DISCOVER HOW THE SINGLE SISTERS HOUSE AND SCHOOL HAVE ACCOMODATED THE CHANGING NEEDS OF WOMEN FROM THE 18TH TO THE 21ST CENTURIES. 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: SALEM IS EXEMPT FROM FEDERAL INCOME TAXATION AS DEFINED BY SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS GENERALLY EXEMPT FROM STATE INCOME TAXES UNDER THE PROVISIONS OF THE NORTH CAROLINA NONPROFIT CORPORATION ACT. THEREFORE, NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. MANAGEMENT EVALUATED SALEM'S TAX POSITIONS AND CONCLUDED THAT SALEM HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THE INCOME TAXES TOPIC OF THE FASB ACCOUNTING STANDARDS CODIFICATION. SALEM BELIEVES THAT IT DOES NOT MEET ANY FILING REQUIREMENTS FOR THE FORM 990-T AND, ACCORDINGLY, HAS NOT FILED A FORM 990-T. AS SUCH, ALL YEARS REMAIN OPEN FOR EXAMINATION BY APPLICABLE TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF TRUSTS AND SPLIT INTEREST AGREEMENTS 722,124. GAIN ON INTEREST RATE SWAP 145,248. RECLASS GRANTS AND ALLOCATIONS TO EXPENSE -12,848,611. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE -67,160. RECLASS LOSS ON SALE OF PROPERTY TO NET REVENUE -58,102. NON-CASH GIFTS 27,000. PRIOR YEAR IMPAIRMENT LOSS REALIZED IN CURRENT YEAR -51,000. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE TO NET REVENUE 67,160. RECLASS LOSS ON SALE OF PROPERTY TO NET REVENUE 58,102. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 12,848,611. 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 1184 12848611 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: 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 208595 0 0 0 198 0 10611 0 9557 0 228961 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 2500000 15000000 15000000 15000000 2008 0 0 1 1 B 149754 12000000 138142 10676289 1185568 2014 0 0 0 0 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 SCHEDULE K, PART II, LINE 17 DOES THE ORGANIZATION MAINTAIN ADEQUATE BOOKS AND RECORDS TO SUPPORT THE FINAL ALLOCATION OF PROCEEDS: THE FINAL ALLOCATION OF PROCEEDS HAS NOT YET BEEN MADE. ONCE FINAL ALLOCATION OF PROCEEDS HAS BEEN MADE, THE ORGANIZATION WILL MAINTAIN ADEQUATE BOOKS AND RECORDS TO SUPPORT THE FINAL ALLOCATION OF PROCEEDS. X 38 101829 FMV X PIANO 1 27000 APPRAISAL 0 1 1 PART I, LINE 32B: CONTRIBUTIONS OF SECURITIES ARE SOLD BY A LICENSED BROKER. FORM 990, PART VI, SECTION B, LINE 11 THE 990 IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE BEFORE SUBMISSION TO THE IRS. COPIES ARE MADE AVAILABLE TO THE REST OF THE BOARD ELECTRONICALLY OR VIA HARD COPY. 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 15A 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 OUR CONFLICT OF INTEREST POLICY IS REVIEWED EACH YEAR BY THE BOARD AND SENIOR ADMINISTRATORS AT SALEM. WE WILL COMPLY WITH ALL LAWS REGARDING PUBLIC INSPECTION OF 990S AND OTHER RECORDS. RECORDS ARE MAINTAINED IN THE CFO'S OFFICE RELATED TO 990S AND FINANCIAL STATEMENTS AND IN THE PRESIDENT'S OFFICE CONCERNING OUR CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS. WE MAINTAIN A COPY OF THE 990 FOR PUBLIC INSPECTION IN THE CFO'S OFFICE BY REQUEST. WE DO NOT PLAN AT THIS TIME TO PLACE ANY DOCUMENTATION ON OUR WEBSITE. WE ARE AWARE THAT OUR 990 WILL BE AVAILABLE ON GUIDESTAR. OUR CONFLICT OF INTEREST STATEMENTS AND ANY OTHER GOVERNING DOCUMENTS REQUIRED TO BE AVAILABLE TO THE PUBLIC WOULD BE AVAILABLE BY REQUEST THROUGH THE PRESIDENT'S OFFICE. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 722,124. GAIN ON INTEREST RATE SWAP 145,248. IMPAIRMENT LOSS BOOKED IN PRIOR YEAR, REALIZED IN CURRENT YEAR 51,000. NON-CASH GIFT NOT REPORTED ON AUDITED FINANCIALS -27,000. 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 1,050 COLLEGE STUDENTS, A HIGH SCHOOL EDUCATION TO APPROXIMATELY 175 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