2014-05-13T10:46:28-05:00 2013-06-30 420714325 MCGLADREY LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2012-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3367212615 601 S CHURCH ST WINSTONSALEM NC 27101 DEREK BRYAN 3367212615 2014-05-13 1 ADRIENNE MCKINNEY P00819656 3362724551 2012 2015-11-30 17:44:51Z DR SUSAN PAULY 601 S CHURCH ST WINSTONSALEM NC 27101 44833300 0 X HTTP://WWW.SALEM.EDU 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. 31 31 838 82 0 0 7798471 4240145 25300670 27413724 3386178 3202635 1245859 1058498 37731178 35915002 11158247 11921958 0 0 13289262 12994998 0 0 735454 9459883 10267407 33907392 35184363 3823786 730639 91726988 105216178 20139952 29515714 71587036 75700464 SEE SCHEDULE O. 0 0 27552245 11921958 24757476 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. 27552245 1 1 0 0 0 0 1 1 1 1 1 1 0 1 1 1 1 0 1 0 1 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 1591 0 1 838 1 0 0 0 0 0 0 0 0 0 0 X 31 31 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 1 0 X DEREK BRYAN 3367212613 601 S CHURCH ST WINSTON SALEM NC 27101 WINIFRED CURRIE BALLENGER 1.00 X 0 0 0 LISA HERRON BANKOFF 1.00 X 0 0 0 DEANA BASS 1.00 X 0 0 0 ELIZABETH COPELAND BECHER 1.00 X 0 0 0 MARY MARTHA W BEECY 1.00 X 0 0 0 CHARLES A BLIXT 1.00 X X 0 0 0 D WAYNE BURKETTE 1.00 X X 0 0 0 ROBIAUN L CHARLES 1.00 X 0 0 0 L DUANE DAVIS 1.00 X 0 0 0 MARY MAPLES DUNN 1.00 X 0 0 0 RODGERYN R FLOW 1.00 X 0 0 0 MCDARA P FOLAN III 1.00 X 0 0 0 GINGER RENICK GRIFFIN 1.00 X 0 0 0 ANN STONE HANES 1.00 X 0 0 0 SALLIE CRAIG TUTON HUBER 1.00 X 0 0 0 STEPHEN G JENNINGS 1.00 X 0 0 0 LEIGH FLIPPIN KRAUSE 1.00 X X 0 0 0 MARTHA RIGGS LOWRY 1.00 X 0 0 0 JENNIFER REINHARDT LYNCH 1.00 X 0 0 0 MARTHA JOHNSTON MANNING 1.00 X 0 0 0 CHI-CHI ZIGLAR MESSICK 1.00 X 0 0 0 WILLIAM H PETREE JR 1.00 X 0 0 0 WILLIAM R PHILLIPS 1.00 X 0 0 0 S MARGARET PIKE 1.00 X 0 0 0 M ELIZABETH RADER 1.00 X 0 0 0 REBECCA HEWIT RAUENHORST 1.00 X 0 0 0 ANNA MCCOY SMITH 1.00 X X 0 0 0 G DEE SMITH 1.00 X 0 0 0 NANCY TAYLOR SUMNER 1.00 X 0 0 0 RAMON VELEZ 1.00 X 0 0 0 WALLACE C WU 1.00 X 0 0 0 DEREK R BRYAN 40.00 X 108239 0 17465 SUSAN CALOVINI 40.00 X 115171 0 17963 WANDA R MOTSINGER 40.00 X 41166 0 9660 SUSAN ELIZABETH PAULY 60.00 X 205020 0 19455 VICKI W SHEPPARD 40.00 X 103836 0 12791 KARL J SJOLUND 40.00 X 117990 0 23937 691422 0 101271 5 0 1 0 ARAMARK SERVICES INC 601 S CHURCH ST BOX 11 WINSTON SALEM NC 27101 DINING SERVICES 1640328 FRANK L BLUM 830 E 25TH ST WINSTON SALEM NC 27105 CONSTRUCTION AND RENOVATION SERVICES 992635 DEUTSCHE BANK - ALEX BROWN 100 N MAIN ST 2400 WINSTON SALEM NC 27101 INVESTMENT ADVISORY SERVICES 667243 LAMBERT ARCHITECTURE & INTERIORS 125 SUNNYNOLL CT 200 WINSTON SALEM NC 27106 ARCHITECTURE AND BUILDING DESIGN SERVICE 471112 KEIGER PRINTING 3735 KIMWELL DRIVE WINSTON SALEM NC 27103 PRINTING SERVICES 215971 10 89819 4150326 585407 4240145 TUITION AND FEES 611710 20270334 20270334 FOOD SERVICES 611710 3693575 3693575 HOUSING REVENUE 611710 3347551 3347551 BOOK STORE REVENUE 611710 102264 102264 27413724 1349992 1349992 102545 69874 32671 32671 32671 10689567 11500 8848424 0 1841143 11500 1852643 11500 1841143 OTHER REVENUE 611710 450581 450581 GOVERNOR'S SCHOOL 611710 431316 431316 COMMUNITY SERVICE 611710 139130 139130 4800 4800 1025827 35915002 24757476 0 6917381 11921958 11921958 517633 401006 116627 10268926 7677849 2194517 396560 429723 318027 86882 24814 1034537 666239 322626 45672 744179 551831 155192 37156 30303 30303 100366 100366 120555 120555 478805 478805 488749 328532 124946 35271 943629 468701 461122 13806 162453 162453 403254 367574 25054 10626 450568 450568 1881945 1505556 376389 275187 275187 AUXILARY ENTERPRISE 1713698 1713698 REPAIRS & MAINTENANCE 964197 771358 192839 UTILITIES 786685 629348 157337 COMMUNICATIONS 262814 210251 52563 1204199 258870 890407 54922 35184363 27552245 6896664 735454 2330092 1331883 4631987 4941984 446665 306668 215790 176186 1303173 59616260 33979664 24361184 25636596 41322331 45847896 7468919 8266562 9646847 18708403 91726988 105216178 1371523 2081867 568251 662036 13500000 24874760 257309 215415 2397449 2045420 1681636 20139952 29515714 X 4185225 4331645 14819901 17368704 52581910 54000115 71587036 75700464 91726988 105216178 X 730639 2866194 516595 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 51590343 1022257 5920309 2633474 55899435 52844007 1805618 -389170 2670112 51590343 45553433 1466429 9077612 3253467 52844007 42688892 1645876 4332568 3113903 45553433 56807530 1765944 -13129433 2755149 42688892 0.02510 0.80170 0.17320 1 0 2129397 2129397 42437063 42437063 13023524 13023524 2026276 33979664 -31953388 25636596 PRIVATE EQUITY INVESTMENTS 8266562 F 8266562 SPLIT INTEREST AGREEMENTS 9924448 UNSPENT BOND PROCEEDS 7045754 CASH SURRENDER VALUE OF LIFE INSURANCE 816286 DEBT ISSUANCE COSTS 273035 INTEREST IN OIL WELL 50389 FIXED ASSETS HELD FOR RESALE 598491 18708403 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 271330 REVOLVING PERKINS LOAN 221960 INTEREST RATE SWAP LIABILITY 1188346 1681636 X 27376152 2866194 -11147334 -8281140 35657292 120555 137155 257710 35915002 23262724 120874 120874 23141850 120555 11921958 12042513 35184363 DESCRIPTION OF HOW ORGANIZATION REPORTS CONSERVATION EASEMENTS: 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 237 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. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: SALEM'S ENDOWMENT FUNDS ARE USED TO FUND SCHOLARSHIPS AND FOR THE OPERATING EXPENSES OF SALEM ACADEMY AND COLLEGE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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 ASC. WITH FEW EXCEPTIONS, SALEM IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE, OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF TRUSTS AND SPLIT INTEREST AGREEMENTS 445,233. GAIN ON INTEREST RATE SWAP 329,391. RECLASS GRANTS AND ALLOCATIONS TO EXPENSE -11,921,958. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE -69,874. NONCASH CONTRIBUTIONS 207,029. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASS RENT EXPENSE 69,874. IMPAIRMENT LOSS 51,000. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASS GRANTS AND ALLOCATIONS TO EXPENSE 11,921,958. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 SEE PART II EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE 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. CENTRAL AMERICA AND THE CARIBBEAN INVESTMENTS 5490265 EUROPE (INCLUDING ICELAND & GREENLAND) INVESTMENTS 2776297 0 0 0 0 0 0 8266562 0 8266562 0 0 1 0 0 0 1 SCHOLARSHIPS 1157 11921958 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 ELIZABETH PAULY 204822 0 0 0 198 0 10403 0 9052 0 224475 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 2000000 15000000 15000000 15000000 2008 0 0 1 1 B 125240 12000000 138142 1998312 2823774 7045754 2014 0 0 0 0 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 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 9181 FMV X 12 378378 FMV X NOTES & PAPERS FROM DR. BORWICK 1 4999 FMV X LIBRARY ITEMS 1 1000 FMV X LAB EQUIPMENT 1 8401 FMV X PIANO 1 17700 APPRAISAL X HARP 1 22000 APPRAISAL X BLDG IMPRVMTS 1 55594 APPRAISAL X AUDIO EQUIP 1 84103 APPRAISAL X SALEM WEDGWOOD CHINA 1 756 FMV X FLOWER ARRANGEMENTS 1 3295 FMV 4 0 1 1 METHOD FOR DETERMINING NUMBER OF CONTRIBUTIONS: PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS RECEIVED. THIRD PARTY USE: 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 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 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 445,233. GAIN ON INTEREST RATE SWAP 329,391. NONCASH CONTRIBUTIONS -207,029. IMPAIRMENT LOSS -51,000. 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