2015-05-08T14:02:45-05:00 2014-06-30 251408703 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 990 2013-07-01 250965561 SHADY SIDE ACADEMY SHAD 4129683137 423 FOX CHAPEL ROAD PITTSBURGH PA 152382296 GILBERT SCHNEIDER CFO 4129683137 2015-05-06 1 SUSAN M KIRSCH P00341397 4122613644 2013 2016-02-25 16:41:14Z THOMAS M CANGIANO 423 FOX CHAPEL ROAD PITTSBURGH PA 152382296 56830623 0 X WWW.SHADYSIDEACADEMY.ORG X 1883 PA PROVIDES EDUCATION TO STUDENTS IN PRE-KINDERGARTEN THROUGH TWELFTH GRADE. 34 31 493 34 0 0 3186305 4207207 25403277 25987671 2412191 3785916 47098 91018 31048871 34071812 3023933 3027632 0 0 16290550 16901364 0 0 1206727 12383443 11965546 31697926 31894542 -649055 2177270 84129279 92333203 7725317 8692902 76403962 83640301 SHADY SIDE ACADEMY OFFERS AN EXCEPTIONAL PRE-K THROUGH TWELFTH GRADE ACADEMIC AND BALANCED EDUCATIONAL EXPERIENCE BY CHALLENGING EACH STUDENT TO REALIZE HIS OR HER POTENTIAL IN A STIMULATING AND NURTURING ENVIRONMENT. 0 0 19826697 3027632 22851978 INSTRUCTIONAL: -THE ACADEMY ENROLLS APPROXIMATELY 941 STUDENTS (PRE K - 12). THE ACADEMY IS COLLEGE PREPARATORY WITH MOST SENIORS CONTINUING ON TO HIGHER EDUCATION. THE ACADEMY OPERATES THREE SEPARATE CAMPUSES FOR JUNIOR, MIDDLE AND SENIOR SCHOOLS.-ATHLETICS: ALL SHADY SIDE ACADEMY STUDENTS ARE OFFERED A WIDE RANGE OF PHYSICAL ACTIVITIES THROUGHOUT THE SCHOOL YEAR TO ENCOURAGE HEALTHY CHOICES, DEVELOP SKILLS AND LEARN THE IMPORTANCE OF SPORTSMANSHIP. 1720263 1851187 AUXILIARY SERVICES: -RESIDENTIAL LIFE PROGRAM: THE ACADEMY OPERATES A FIVE DAY BOARDING PROGRAM FOR APPROXIMATELY 45 STUDENT BOARDERS. THE STUDENTS ARE HOUSED IN ACADEMY DORMITORIES (MONDAY THROUGH FRIDAY) WITH TEACHERS WHO OVERSEE AND OPERATE THE RESIDENTIAL LIFE PROGRAM.-FOOD SERVICE: SERVES DAY STUDENTS LUNCH AND SERVES THOSE INVOLVED IN RESIDENTIAL LIFE PROGRAM BREAKFAST, LUNCH AND DINNER.-BOOK AND ATHLETIC STORES: THE STORES OFFER INDIVIDUALS THE OPPORTUNITY TO PURCHASE EDUCATIONAL TEXTBOOKS AND SUPPLIES AND ATHLETIC EQUIPMENT AND CLOTHING. THE ACADEMY REQUIRES ATHLETIC AND HEALTH CREDITS FOR GRADUATION. 1075292 1284506 SUMMER PROGRAMS:-SHADY SIDE ACADEMY'S SUMMER PROGRAMS PROVIDE AN ENDLESS ARRAY OF POSSIBILITIES FOR ALL KIDS. 22622252 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 1 0 0 1 1 0 0 0 0 1 1 0 0 0 1 50 0 1 493 1 0 0 0 0 0 0 0 0 0 0 X 34 31 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X GILBERT SCHNEIDER CFO 4129683137 423 FOX CHAPEL ROAD PITTSBURGH PA 15238 X EBEN H ADAMS TRUSTEE 3.50 X 0 0 0 FREDERICK B BROAD TRUSTEE 3.50 X 0 0 0 JAY CLEVELAND JR TRUSTEE 3.50 X 0 0 0 ROBERT E COCHRAN TRUSTEE (ENTERED 7/1/2013) 3.50 X 0 0 0 ELIZABETH CONCORDIA TRUSTEE 3.50 X 0 0 0 KARA S CONOMIKES TRUSTEE 3.50 X 0 0 0 VALIRE CARR COPELAND TRUSTEE 3.50 X 0 0 0 DEBRA KLINE DEMCHAK TRUSTEE (ENTERED 7/1/2013) 3.50 X 0 0 0 WILLIAM T DIEHL TRUSTEE 3.50 X 0 0 0 ROBERT D FERGUSON TRUSTEE 3.50 X 0 0 0 BRYAN P GENTILE TRUSTEE 3.50 X 0 0 0 NITA RAI-GOHEL MD TRUSTEE 3.50 X 0 0 0 JUDITH GRANATO TRUSTEE 3.50 X 0 0 0 JONATHAN M KAMIN TRUSTEE 3.50 X 0 0 0 J STEPHEN LEE TRUSTEE 3.50 X 0 0 0 JEFFREY A MCDANIEL TRUSTEE (ENTERED 7/1/2013) 3.50 X 0 0 0 ALEXANDER P MOSER TRUSTEE 3.50 X 0 0 0 LOUIS B PLUNG TRUSTEE 3.50 X 0 0 0 PAUL M POHL TRUSTEE 3.50 X 0 0 0 ANTHONY J ROSS TRUSTEE 3.50 X 0 0 0 C LANCE RUTTENBERG TRUSTEE 3.50 X 0 0 0 OZZY SAMAD TRUSTEE 3.50 X 0 0 0 SARA SCAIFE TRUSTEE 3.50 X 0 0 0 JAMES D SCALO TRUSTEE 3.50 X 0 0 0 BARBARA PIPPIN THAI MD TRUSTEE 3.50 X 0 0 0 T SPENCER TODD TRUSTEE (ENTERED 7/1/2013) 3.50 X 0 0 0 MAZEN F YOUSSEF TRUSTEE 3.50 X 0 0 0 MARY JO DIVELY CHAIR OF THE BOARD 3.50 X X 0 0 0 SANDRA SAUEREISEN CHAIR COMMITTEE ON TRUSTEE 3.50 X X 0 0 0 DIVYA ANNAMRAJU VICE CHAIR, COMMUNITY LIFE 3.50 X X 0 0 0 MICHAEL J HANNON VICE CHAIR, BUILDINGS & GR 3.50 X X 0 0 0 TRACY PRIZANT LEVY MD VICE CHAIR, DEVELOPMENT 3.50 X X 0 0 0 J KEEFE ELLIS VICE CHAIR, FINANCE; TREAS 3.50 X X 0 0 0 ROBERT SHANNON MULLIN CHAIR ENDOWMENT 3.50 X X 0 0 0 THOMAS M CANGIANO PRESIDENT 40.00 X 288440 0 147562 THOMAS ARNOLD VICE PRESIDENT, FINANCE 40.00 X 135098 0 37092 JEFFREY DAY VICE PRESIDENT, ADVANCEMENT 40.00 X 113700 0 78201 DEBRA MAUDER SECRETARY OF THE BOARD 40.00 X 86331 0 6329 KATHARINE VAVPETIC HEAD OF SENIOR SCHOOL 40.00 X 106598 0 73711 ELLEN MCCONNELL HEAD OF JUNIOR SCHOOL 40.00 X 104138 0 38197 AMY NIXON HEAD OF MIDDLE SCHOOL 40.00 X 112045 0 44325 946350 0 425417 6 0 1 0 METZ CULINARY MANAGEMENT TWO WOODLAND DRIVE DALLAS PA 18612 FOOD SERVICE 1376491 WL ROENIGK INC 798 EKASTOWN ROAD SARVER PA 16055 TRANSPORTATION 363331 MCPC INC PO BOX 643283 PITTSBURGH PA 152643283 IT SOLUTIONS PROVIDER 241428 QUALITY MECHANICAL SERVICES INC 1300 HULTON ROAD VERONA PA 15147 HVAC REPAIRS/SERVICES/EQUIPMENT 229969 DRAZ'S PAINTING LLC 1503 MIDDLECREST DRIVE GLENSHAW PA 15116 PAINTING SERVICES 177327 7 42999 4164208 122381 4207207 TUITION AND FEES 900099 22851978 22851978 AUXILIARY SERVICES 900099 1851187 1476589 374598 SUMMER PROGRAMS 900099 1284506 1284506 25987671 808533 808533 25396858 22419475 2977383 2977383 2977383 28994 42999 53653 -24659 -24659 401360 285683 115677 115677 34071812 25613073 0 4251532 4000 4000 3023632 3023632 1152685 507665 438235 206785 12430717 8653444 3284238 493035 773594 530815 202409 40370 1529409 907710 561176 60523 1014959 698749 264032 52178 10773 10773 56955 56955 164320 164320 369527 369527 394125 319744 74381 3192049 2637427 427189 127433 762844 613716 149128 1101364 1101364 438023 397601 17217 23205 8979 8979 158517 158517 2101217 1680974 420243 222945 222945 BUILDINGS AND GROUNDS 1515567 186149 1329418 SUMMER PROGRAMS 1075292 1075292 ENTERTAINMENT 209276 55443 27516 126317 BAD DEBT 134755 132255 2500 49018 46489 2529 31894542 22622252 8065563 1206727 1099201 2117558 2369773 1476790 13161 822956 587745 621947 194213 399040 220078 198586 60389661 32809006 28672119 27580655 42578922 56932299 8394067 2183372 84129279 92333203 1189388 1314291 2375459 1725061 4160470 5474699 0 178851 7725317 8692902 X 26939388 26368551 510275 866668 48954299 56405082 76403962 83640301 84129279 92333203 X 2177270 5188887 -129818 X X 0 1 X 1 0 X 2133099 2114372 3152230 3186305 4207208 14793214 2133099 2114372 3152230 3186305 4207208 14793214 519238 14273976 1042323 989354 1009925 1587561 803530 5432693 20225907 123290919 0.70570 0.67490 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 51157171 1472168 8889048 819000 1886545 58812842 46214220 859311 6715836 754000 1878196 51157171 49787531 319776 -1111703 608985 2172399 46214220 45127887 151072 8921959 2538576 1874811 49787531 41256428 331513 5593332 554414 1498972 45127887 0.04090 0.95910 0 0 331343 331343 45467587 19390182 26077405 10337829 10337829 0 4252902 3080995 1171907 27580655 INTEREST RATE SWAP 129818 ANNUITIES PAYALE 49033 178851 X 39624416 5188887 449472 5638359 33986057 85755 85755 34071812 32388076 579290 579290 31808786 85755 85755 31894541 PART III, LINE 4: SHADY SIDE ACADEMY IS A NON-PROFIT EDUCATIONAL INSTITUTION. THE PURPOSE OF ITS COLLECTIONS IS TO DOCUMENT AND ENHANCE THE ACADEMY'S HERITAGE AND HISTORY IN ORDER TO PROVIDE AN EDUCATIONAL TIMELINE FOR CURRENT AND FUTURE ACADEMY STUDENTS, FAMILIES, AND FACULTY. PART V, LINE 4: THE ACADEMY'S ENDOWMENT CONSISTS OF VARIOUS INVESTMENT FUNDS ESTABLISHED PRIMARILY FOR SUPPORT OF THE ORGANIZATION'S MISSION. ITS ENDOWMENT INCLUDES DONOR-RESTRICTED ENDOWMENT FUNDS. AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE ACADEMY TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. THE TRUSTEES OF THE ACADEMY HAVE ELECTED TO BE GOVERNED BY THE COMMONWEALTH OF PENNSYLVANIA'S ACT 141 (ACT 141). ACT 141 IS A TOTAL RETURN POLICY THAT ALLOWS A NONPROFIT TO CHOOSE TO TREAT A PERCENTAGE OF THE AVERAGE MARKET VALUE OF THE ENDOWMENT'S PERMANENTLY RESTRICTED INVESTMENTS AS INCOME EACH YEAR. HOWEVER, THE LONG-TERM PRESERVATION OF THE REAL VALUE OF THE ASSETS MUST BE TAKEN INTO CONSIDERATION WHEN THE BOARD ELECTS THE AMOUNT. ON AN ANNUAL BASIS, THE EXECUTIVE COMMITTEE OF THE BOARD, IN WRITING, MUST ELECT A SPENDING RATE OF BETWEEN 2% AND 7%. IN ACCORDANCE WITH ACT 141, THE ACADEMY ANNUALLY TRANSFERS BETWEEN 5% AND 5.5% OF THE PREVIOUS THREE YEARS' MARKET VALUE AVERAGE OF THE PERMANENTLY RESTRICTED ENDOWMENT FUND. THIS PERCENTAGE IS APPLIED TO A 12-QUARTER AVERAGE MARKET VALUE OF THE INVESTMENTS AT JUNE 30 OF THE PREVIOUS YEAR. THE ACADEMY CLASSIFIES AS PERMANENTLY RESTRICTED NET ASSETS THE ORIGINAL AND SUBSEQUENT VALUE OF GIFTS DONATED TO THE PERMANENT ENDOWMENT. IN ACCORDANCE WITH ACT 141, THE ACADEMY HAS ADOPTED A WRITTEN INVESTMENT POLICY, OF WHICH A SECTION SPECIFICALLY RELATES TO THE ENDOWMENT FUND. THE ACADEMY CONSIDERS THE FOLLOWING FACTORS IN MAKING A DETERMINATION TO SET A SPENDING RATE: 1. PROTECTING THE CORPUS OF THE ENDOWMENT FUND. 2. PRESERVING THE SPENDING POWER OF THE ASSETS. 3. OBTAINING MAXIMUM INVESTMENT RETURN WITH REASONABLE RISK AND OPERATIONAL CONSIDERATION. 4. COMPLYING WITH APPLICABLE LAWS PART X, LINE 2: THE ACADEMY IS A NOT-FOR-PROFIT ENTITY AND HAS BEEN RECOGNIZED AS TAX EXEMPT PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE ACADEMY HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS REQUIRING AN ACCRUAL OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THERE WERE NO INTEREST OR PENALTIES RECOGNIZED IN THE STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2014 AND 2013. MANAGEMENT BELIEVES THAT THE ACADEMY IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR TAX YEARS PRIOR TO 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 53,653. COST OF GOODS SOLD 285,683. TRANSFER TO RESTRICTED ASSETS 110,136. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 53,653. COST OF GOODS SOLD 285,683. TRANSFER FROM RESTRICTED ASSETS 110,136. CHANGE IN FMV OF INTEREST RATE SWAP 129,818. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 EMPLOYMENT AND STUDENT HANDBOOKS, WEBSITE AND EMPLOYMENT ADS SCHEDULE E, PART I, LINE 6 THE ACADEMY RECEIVES DIRECT FUNDING FOR TEXTBOOKS, INSTRUCTIONAL MATERIALS AND EQUIPMENT THROUGH PENNSYLVANIA ACTS 195/90/35. THE ACADEMY RECEIVES GIFT FUNDING THAT IS MADE POSSIBLE THROUGH PARTICIPATION IN THE EITC PROGRAMS WHICH PROVIDES A TAX CREDIT TO THE BUSINESSES WHO PARTICIPATE IN THIS PROGRAM. UNTUCKED 71993 42999 28994 6690 1367 20426 25170 71993 42999 28994 6690 1367 20426 25170 53653 -24659 1 FINANCIAL AID 163 2777702 N/A N/A TUITION DISCOUNTS 214 240817 N/A N/A ACADEMIC PRIZES 5113 N/A N/A PART I, LINE 2: THE ACADEMY AWARDS FINANCIAL AID TO QUALIFYING INDIVIDUALS TO OFFSET THE COST OF TUITION. THE PROCESS IS MANAGED BY THE ACADEMY'S BUSINESS OFFICE AND USES AN OUTSIDE PARTY TO ASSIST IN COLLECTING FINANCIAL INFORMATION FROM PARENTS. MOST FUNDING IS AWARDED BASED ON DEMONSTRATED ECONOMIC NEED AND FUNDING AVAILABLE. A VERY LIMITED NUMBER OF AWARDS ARE BASED ON OTHER MERIT CRITERIA. AS PART OF THE ACADEMY'S COMMITMENT TO SERVICE LEARNING, AN ANNUAL EVENT IS COORDINATED THROUGH THE OUTSIDE PROGRAMMING OFFICE. A PORTION OF THE PROCEEDS FROM THIS EVENT ARE THEN CONTRIBUTED TO OUTSIDE CHARITABLE ORGANIZATIONS AS IDENTIFIED BY THE PROGRAM ADMINISTRATORS AND STUDENTS. THE ACADEMY HOLDS A BENEFIT CONCERT EACH YEAR. A STUDENT COMMITTEE SELECTS A THEME FOR THE BENEFIT AND THEY SEEK OUT A NON-PROFIT ORGANIZATION THAT ACHIEVES THAT THEME. THE STUDENTS SELECT THE ORGANIZATION AND THE PROFITS FROM THE CONCERT ARE DONATED TO THAT ORGANIZATION. THE STUDENTS ALSO COMPLETE SERVICE LEARNING AT THE SITE OF THE ORGANIZATION THEY SELECT. THE HOMELESS CHILDREN'S EDUCATION FUND WAS THE RECIPIENT OF THE 2013 UNTUCKED EVENT, RECEIVING A $4,000 DONATION FROM THE EVENT. X X X X X 1 1 X X X 0 1 0 0 0 0 0 1 0 THOMAS M CANGIANO PRESIDENT 271705 0 10250 0 6485 0 49871 0 97691 0 436002 0 0 0 THOMAS ARNOLD VICE PRESIDENT, FINANCE 134848 0 250 0 0 0 9850 0 27242 0 172190 0 0 0 JEFFREY DAY VICE PRESIDENT, ADVANCEMENT 113450 0 250 0 0 0 7975 0 70226 0 191901 0 0 0 KATHARINE VAVPETIC HEAD OF SENIOR SCHOOL 106348 0 250 0 0 0 4599 0 69112 0 180309 0 0 0 AMY NIXON HEAD OF MIDDLE SCHOOL 111795 0 250 0 0 0 8050 0 36275 0 156370 0 0 0 PART I, LINE 1A THE PRESIDENT DOES HAVE A DISCRETIONARY SPENDING ACCOUNT BUT IT IS FOR SPECIFIC PURPOSES RELATED TO OPERATIONS, PROGRAMMING AND/OR PROFESSIONAL DEVELOPMENT. TO CONDUCT BUSINESS AND TO CARRY OUT THE MISSION OF THE ORGANIZATION FURTHER, THE ORGANIZATION PROVIDES THE PRESIDENT WITH A MEMBERSHIP TO THE DUQUESNE CLUB. PART I, LINE 4B THE PRESIDENT PARTICIPATED IN A NONQUALIFIED DEFERRED COMPENSATION PLAN. PART I, LINE 7 AT THE DISCRETION OF THE ACADEMY BOARD OF TRUSTEES, THE PRESIDENT OF THE ACADEMY RECEIVES AN ANNUAL PERFORMANCE BONUS AND ALL EMPLOYEES RECEIVE AN ANNUAL BONUS. ENROLLED STUDENT CHILD, BOARD MEMBER 30300 TUITION SCHOLARSHIP/FINANCIAL AID PNC BANK BOARD MEMBER IS AN OFFICER OF PNC BANK WITH WHOM THE ACADEMY DOES BUSINESS 224012 LOAN INTEREST AND FEES 0 UPMC BOARD MEMBER IS AN OFFICER OF UPMC WITH WHOM THE ACADEMY DOES BUSINESS 1298857 HEALTH INSURANCE FEES 0 X 26 122381 FAIR MARKET VALUE 0 0 1 0 FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE OF THE BOARD IS COMPRISED OF 14 MEMBERS; CHAIR OF THE BOARD, CHAIR ELECT OF THE BOARD, PAST CHAIR OF THE BOARD, VICE CHAIR FOR COMMUNITY LIFE, VICE CHAIR FOR BUILDINGS AND GROUNDS, VICE CHAIR FOR DEVELOPMENT, VICE CHAIR FOR FINANCE, CHAIR FOR BENEDUM COMMITEE, CHAIR FOR COMMUNITY CONNECTIONS, CHAIR FOR ENDOWMENT AND 3 AT LARGE MEMBERS. ALL MEMBERS ARE MEMBERS OF THE FULL BOARD OF TRUSTEES. THIS GROUP MEETS REGULARLY TO DISCUSS STRATEGIC INITIATIVES OF THE ACADEMY AND TO ENSURE THAT MANAGEMENT IS MEETING THE GOALS AND OBJECTIVES AS ESTABLISHED BY THE BOARD. DECISIONS NOT REQUIRING A FULL BOARD VOTE MAY BE MADE BY THIS COMMITTEE IF NEEDED. FORM 990, PART VI, SECTION A, LINE 6 THE BUSINESS AND AFFAIRS OF THE CORPORATION ARE MANAGED BY A BOARD OF TRUSTEES, WHO ALSO CONSTITUTE THE MEMBERS OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A TWO TRUSTEES ARE ELECTED OR APPOINTED EACH YEAR BY THE SHADY SIDE ACADEMY ALUMNI ASSOCIATION. IN THE EVENT THAT THE ALUMNI ASSOCIATION FAILS TO SELECT TWO TRUSTEES IN ANY YEAR, THE BOARD FILLS ANY RESULTING VACANCY BY ELECTING AN ALUMNUS OF THE ACADEMY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED BY MANAGEMENT AND BY THE AUDIT COMMITTEE. A COPY OF FORM 990 IS DISTRIBUTED TO BOARD MEMBERS PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C AN EXPLANATION OF THE CONFLICT OF INTEREST POLICY IS PRESENTED TO ALL BOARD OF TRUSTEE MEMBERS AT THE START OF EACH SCHOOL YEAR. ANNUAL DISCLOSURE FORMS ARE DISTRIBUTED AND INFORMATION IS THEN SENT TO THE BUSINESS OFFICE WHERE IT IS REVIEWED AND MAINTAINED ON FILE THROUGHOUT THE YEAR. CONFLICTS OF INTEREST DISCLOSURE FORMS ARE FORWARDED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 THE ACADEMY'S CHAIRMAN OF THE BOARD SELECTS CERTAIN BOARD MEMBERS TO COMPRISE A COMPENSATION COMMITTEE. THIS GROUP ANALYZES DATA FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS AND OTHER LOCAL SURVEYS TO DETERMINE APPROPRIATE SALARY RANGES. FOR TOP MANAGEMENT, THE ACADEMY ENGAGES THE SERVICES OF LOCAL LEGAL COUNSEL TO ASSIST IN THE REVIEW AND PREPARATION OF EMPLOYMENT CONTRACTS AND/OR AGREEMENTS. FORM 990, PART VI, SECTION C, LINE 19 SHADY SIDE ACADEMY MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY STATEMENT AND FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST THROUGH THE ACADEMY'S BUSINESS OFFICE. FORM 990, PART VII, EMERITI TRUSTEES WITH NO VOTING RIGHTS: G. NICHOLAS BECKWITH, III, PAUL G. BENEDUM, JR., MICHAEL P. CASEY, M.D., FLOYD A. CEPHAS, SR., MARY ELLEN COSTA, JOHN P. DAVIS, JR., JOHN H. DEMMLER, WILLIAM P. GETTY, LAWRENCE N. GUMBERG, STEPHEN HALPERN, KARL F. KRIEGER, ANNE V. LEWIS, W. THOMAS MCGOUGH, JR., EDWIN F. SCHEETZ, JR., SUSANNE C. WEAN. FORM 990, PART XI, LINE 9: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP -129,818. FORM 990, PART XII, QUESTION 2C, FINANCIAL STATEMENTS AND REPORTING: AS A SUB-COMMITTEE OF THE FINANCE COMMITTEE, THE AUDIT COMMITTEE IS CHARGED WITH THE SELECTION OF AN OUTSIDE INDEPENDENT AUDIT FIRM. THIS IS REVIEWED ANNUALLY AND, BASED ON CONTRACT TERMS WITH THE CURRENT FIRM AT THE TIME, THE COMMITTEE DETERMINES WHEN TO NEGOTIATE CONTINUED RATES AND/OR TO REQUEST BIDS FROM OTHER FIRMS. PRIOR TO THE RELEASE OF THE FINAL FINANCIAL STATEMENTS THE AUDIT COMMITTEE MEETS WITH THE AUDIT TEAM FROM THE INDEPENDENT AUDIT FIRM AS WELL AS MANAGEMENT CHARGED WITH AUDIT RESPONSIBILITIES TO REVIEW AND DISCUSS THE DRAFT FINANCIAL STATEMENTS AND THE AUDIT PROCESS. SHADY SIDE ACADEMY FOUNDATION 423 FOX CHAPEL ROAD PITTSBURGH PA 15238 251754941 INACTIVE PA 501(C)(3) 509(A)(3) TYPE I SHADY SIDE ACADEMY 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0