2012-05-14T13:02:25-05:00 2011-06-30 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2010-07-01 520635080 BULLIS SCHOOL INC BULL 3012998500 10601 FALLS ROAD POTOMAC MD 20854 TODD MCCREIGHT 3012998500 2012-05-14 1 WILLIAM E TURCO CPA 3012963600 2010 2016-02-24 21:20:13Z GERALD BOARMAN 10601 FALLS ROAD POTOMAC MD 20854 30503802 0 X WWW.BULLIS.ORG X 1936 MD PROVIDES CO-EDUCATIONAL ELEMENTARY AND SECONDARY EDUCATION TO STUDENTS 20 20 470 178 221 0 1198209 1332712 19329732 19760128 298997 432936 445121 575861 21272059 22101637 2804491 3428707 0 0 12613151 13195476 35397 0 678066 6050863 5827181 21503902 22451364 -231843 -349727 45306191 45825694 24474292 23510250 20831899 22315444 X BULLIS SCHOOL IS AN INDEPENDEDNT, CO-EDUCATIONAL COLLEGE PREPARATORY DAY SCHOOL OFFERING GIRLS AND BOYS IN GRADES 3 THROUGH 12 AN EDUCATIONAL PROGRAM OF EXCELLENCE IN A COMMUNITY THAT VALUES INTEGRITY, RESPECT, RESPONSIBILITY, DIVERSITY AND SERVICE. A CARING AND SUPPORTIVE FACULTY FOSTERS A POSITIVE ATTITUDE ABOUT LEARNING AND CHALLENGES ITS STUDENTS TO ACHIEVE THEIR HIGHEST POTENTIAL IN ACADEMICS, THE ARTS AND ATHLETICS. 0 0 17301481 3428707 19760128 PROVIDES CO-EDUCATIONAL ELEMENTARY AND SECONDARY SCHOOL EDUCATION TO 650 STUDENTS:PROMOTE DIVERSITY AND OFFER AN INDEPENDENT SCHOOL EDUCATION TO ELIGIBLE STUDENTS REGARDLESS OF FINANCIAL ABILITY. 17301481 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 X 44 0 1 470 1 1 1 1 CJ EI UK 0 0 0 1 1 0 0 0 0 X 20 20 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MD X MARIA THOMAS 3012998500 10601 FALLS ROAD POTOMAC MD 20854 KENNETH THOMPSON 2.00 X X 0 0 0 THOMAS SULLIVAN 2.00 X X 0 0 0 HOLLY FUNGER 2.00 X X 0 0 0 ANDREW BLAIR 2.00 X X 0 0 0 MARIAN BENNETT 2.00 X 0 0 0 GARY FRIEDLANDER 2.00 X 0 0 0 ADAM GREENBERG 2.00 X 0 0 0 KATHRYN HANLEY 2.00 X 0 0 0 LESLEY LAVALLEYE 2.00 X 0 0 0 GEORGE MAVRIKES 2.00 X 0 0 0 ALLAN MCKELVIE 2.00 X 0 0 0 CHRIS NORDEEN 2.00 X 0 0 0 XIUMIN OVERALL 2.00 X 0 0 0 MILTON THEO 2.00 X 0 0 0 BERRY TRIMBLE 2.00 X 0 0 0 DAVID TRONE 2.00 X 0 0 0 CYNDI VASCO 2.00 X 0 0 0 DELL WARREN 2.00 X 0 0 0 MARK WEINBERGER 2.00 X 0 0 0 PAULA WIDERLITE 2.00 X 0 0 0 GERALD BOARMAN 60.00 X 211911 0 46666 THOMAS FARQUHAR 60.00 X 178506 0 48253 TODD MCCREIGHT 50.00 X 157985 0 11346 MARTIN BERGER 40.00 X 113194 0 8211 BRUCE KELLEY 40.00 X 110476 0 38340 JOANNE SZADKOWSKI 40.00 X 109574 0 11088 ANDREW DELINSKY 40.00 X 106722 0 14125 AMY JONES 40.00 X 105166 0 12384 1093534 0 190413 8 0 1 0 PIONEER BUILDING SERVICES INC 9600 BLACKWELL ROAD SUITE 200 ROCKVILLE MD 20850 JANITORIAL/CLEANING 307965 SODEXO INC PO BOX 536922 ATLANTA GA 303536922 FOOD SERVICES 303051 BARBIZON CAPITOL INC 6437 GENERAL GREEN WAY ALEXANDRIA VA 22312 THEATER EQUIPMENT 107786 3 69475 1263237 101289 1332712 TUITION/FEES 900099 18478514 18478514 SUMMER PROGRAMS 900099 1110456 1110456 TRANSPORTATION 900099 128633 128633 AUXILIARY 900099 30860 30860 STUDENT ACTIVITIES 900099 11665 11665 19760128 292149 221 291928 369038 369038 369038 369038 8061756 7920969 140787 140787 140787 205078 69475 139068 66010 66010 437543 342128 95415 95415 OTHER INCOME 900099 45398 45398 45398 22101637 19760128 221 1008576 3428707 3428707 617881 440130 149476 28275 10256615 7329015 2489044 438556 603391 429809 145970 27612 951407 753846 159977 37584 766182 545769 185351 35062 48825 48825 63870 63870 55467 55467 458696 331818 126878 125790 24162 22713 78915 1126139 765297 355239 5603 874513 783088 91425 1509 1142 367 115655 96095 15374 4186 914583 777396 137187 1085939 923048 162891 182173 113844 68329 DEPARTMENTS 226229 226229 OTHER EXPENSES 168688 72531 74251 21906 STUDENT PROGRAMS 144886 144886 BAD DEBT 75694 75694 AMORTIZATION 43176 36700 6476 115349 79111 36238 22451364 17301481 4471817 678066 34223 38394 7210485 3340664 210340 124976 99948 284123 111749 119280 313848 350008 48513542 18509686 23361847 30003856 8672891 6646827 3332728 2973803 1958132 1943763 45306191 45825694 838761 897421 5172194 4717516 17945000 17455000 212374 187279 305963 253034 24474292 23510250 X 17926650 19205289 224440 397702 2680809 2712453 20831899 22315444 45306191 45825694 X -349727 1833272 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12436946 155719 1576720 5126955 9042430 11745669 451349 384093 144165 12436946 13845175 414229 -2377515 136220 11745669 0.70000 0.30000 0 0 451853 7803222 8255075 34412414 13012832 21399582 5846053 5496854 349199 30003856 OIL AND GAS PARTNERSHIP 1572 F LIMITED PARTNERSHIPS 2972231 F 2973803 ANNUITIES PAYABLE 21106 FUNDS HELD FOR OTHERS 231928 253034 22101637 22451364 -349727 1833272 1833272 1483545 20966931 1833272 35000 -3428707 -1560435 22527366 55467 -481196 -425729 22101637 19483386 35000 481196 516196 18967190 55467 3428707 3484174 22451364 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: EARNINGS FROM THE UNRESTRICTED ENDOWMENT SUPPORT THE OPERATING EXPENSES OF THE SCHOOL; EARNINGS FROM THE RESTRICTED ENDOWMENT SUPPORT FACULTY DEVELOPMENT AND FINANCIAL AID. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE SCHOOL IS GENERALLY EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, THE SCHOOL IS SUBJECT TO INCOME TAXES ON UNRELATED BUSINESS INCOME, AS DEFINED BY THE INTERNAL REVENUE SERVICE. DURING THE YEAR ENDED JUNE 30, 2011, THE SCHOOL HAD NO NET TAXABLE UNRELATED BUSINESS INCOME, AND ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS REQUIRED IN THE ACCOMPANYING FINANCIAL STATEMENTS. THE SCHOOL ADOPTED THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (FASB ASC TOPIC 740-10), WHICH ADDRESSED THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE SCHOOL MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE-LIKELY-THAN-NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50 PERCENT LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT THE SCHOOL HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. THE SCHOOL FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. GENERALLY, THE SCHOOL IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR THE YEARS BEFORE 2008. PART XII, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION REVENUE IN THE FINANCIAL STATEMENTS -3,428,707. PART XII, LINE 4B - OTHER ADJUSTMENTS: GALA & GOLF TOURNAMENT - COSTS REPORTED ON LINE 8B -139,068. INVENTORY - COST OF SALES REPORTED ON LINE 10B -342,128. PART XIII, LINE 2D - OTHER ADJUSTMENTS: GALA & GOLF TOURNAMENT - COSTS REPORTED ON LINE 8B 139,068. INVENTORY - COST OF SALES REPORTED ON LINE 10B 342,128. PART XIII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST TUITION REVENUE IN THE FINANCIAL STATEMENTS 3,428,707. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 AN ADVERTISEMENT WAS PLACED IN THE WASHINGTON POST NEWSPAPER ANNOUNCING THE SCHOOL'S NON-DISCRIMINATION POLICY. ANNUAL GALA 250143 57500 192643 126948 GOLF TOURNAMENT 24400 11975 12425 588 7191 4341 274543 69475 205068 588 7191 131289 139068 66000 1 FINANCIAL AID FOR TUITION 143 3428707 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ALL FINANCIAL AID AT BULLIS IS GRANTED BASED ON DEMONSTRATED FINANCIAL NEED, OFFERED IN ORDER TO ENSURE ECONOMIC AND RACIAL DIVERSITY IN THE STUDENT BODY, CONSISTENT WITH THE SCHOOL'S ADMISSION POLICIES. SOME OF THE FACTORS CONSIDERED ARE: INCOME (BOTH TAXABLE AND NONTAXABLE), ASSETS,NUMBER OF DEPENDENTS, AGE OF PARENTS AND NUMBER OF CHILDREN ATTENDING TUITION-CHARGING SCHOOLS. X X X X X 1 1 X X X 0 0 0 0 0 0 0 0 0 GERALD BOARMAN 190200 0 0 0 21711 0 28925 0 17887 0 258723 0 0 0 THOMAS FARQUHAR 177893 0 0 0 613 0 26447 0 21960 0 226913 0 0 0 TODD MCCREIGHT 157985 0 0 0 0 0 11059 0 587 0 169631 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION PAYMENTS ARE MADE FOR SECT 162 DOUBLE BONUS FOR THE DISABILITY INSURANCE BENEFIT PAID TO HEAD OF SCHOOL. THE SCHOOL COMPENSATES THE HEADMASTER WITH A PACKAGE THAT INCLUDES HOUSING, WHICH IS NECESSARY TO CARRY OUT THE DUTIES OF HIS JOB. THE HOUSING BENEFIT IS TREATED AS NON-TAXABLE COMPENSATION UNDER CODE SECTION 119(D). WE HAVE DISCLOSED FAIR RENTAL VALUE AS THE VALUE OF THE HOUSING BENEFIT - $35,078 (GERALD BOARMAN - $17,539 AND THOMAS FARQUHAR - $17,539). THE ENTIRE COMPENSATION PACKAGE, INCLUDING THE HOUSING ARRANGEMENT WAS APPROVED BY THE BOARD OF TRUSTEES WITH PROPER DOCUMENTATION. A HOUSE KEEPING BENEFIT IS PROVIDED TO THE HEAD OF SCHOOL. THIS BENEFIT IS RELATED TO THE USE OF THE HOUSING IN THE CONDUCT OF THE HEADMASTER'S OFFICIAL DUTIES. GERALD BOARMAN RECEIVED A NON-TAXABLE HEALTH CLUB DUES IN THE AMOUNT OF $1,188. X 24894 SALE PRICE OF BOOKS X 2 54395 FMV X FENCING 1 22000 COST 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WILL BE REVIEWED BY THE BOARD FINANCE COMMITTEE, WHICH PERFORMS THE FUNCTIONS OF AN AUDIT COMMITTEE IN ADDITION TO ITS OTHER FINANCIAL RESPONSIBILITIES. MCGLADREY AND PULLEN, LLP, THE FIRM THAT PREPARES THE FORM 990 FOR THE SCHOOL, WILL MAKE THE PRESENTATION TO THE FINANCE COMMITTEE. ONCE THE FINANCE COMMITTEE IS SATISFIED WITH THE FORM 990, THE FORM 990 IS SENT TO THE FULL BOARD OF TRUSTEES FOR REVIEW AND FOR THEIR INFORMATION FORM 990, PART VI, SECTION B, LINE 12C EACH BOARD MEMBER IS REQUIRED EACH FALL TO REVIEW THE BOARD CONFLICT OF INTEREST POLICY, AND SIGN A STATEMENT THAT CERTIFIES THAT THEY UNDERSTAND THE POLICY, AGREE TO COMPLY WITH THE POLICY, AND HAVE NO CONFLICTS AS DESCRIBED IN THE POLICY. IF A CONFLICT EXISTS OR IS PERCEIVED, THE BOARD MEMBER IS REQUIRED TO NOTIFY THE BOARD CHAIR. THE BUSINESS OFFICER MONITORS ALL TRANSACTIONS BETWEEN ALL DISQUALIFIED PERSONS (WHICH INCLUDES ALL BOARD MEMBERS) AND THE SCHOOL TO ENSURE THAT THE CONFLICT OF INTEREST POLICY IS BEING FULLY COMPLIED WITH. IF THE BUSINESS OFFICER FINDS A TRANSACTION THAT APPEARS TO VIOLATE THE CONFLICTS POLICY, HE/SHE NOTIFIES THE HEAD OF SCHOOL AND BOARD CHAIR, WHO THEN MEET WITH THE DISQUALIFIED PERSON TO INVESTIGATE THE POTENTIAL CONFLICT AND RESOLVE IT IN A MANNER THAT COMPLIES WITH THE CONFLICTS POLICY. FORM 990, PART VI, SECTION B, LINE 15 FOR THE HEAD OF SCHOOL: EACH TIME THE BOARD ENTERS INTO AN EMPLOYMENT CONTRACT WITH THE HEAD OF SCHOOL (GENERALLY EVERY THREE TO FIVE YEARS), AN AD HOC BOARD COMPENSATION COMMITTEE IS FORMED TO FOLLOW A PROCEDURE THAT IS DESIGNED TO OBTAIN A REBUTTABLE PRESUMPTION OF REASONABLENESS: 1. ALL BOARD MEMBERS CHOSEN FOR THE COMPENSATION COMMITTEE ARE QUERIED TO ENSURE THAT NO MEMBER HAS A PERSONAL INTEREST IN THE COMPENSATION DECISION. 2. COMPENSATION (SALARY AND BENEFITS) COMPARABILITY DATA IS OBTAINED FOR THE DOZEN OR SO DC-AREA INDEPENDENT SCHOOLS THAT MOST CLOSELY RESEMBLE BULLIS IN ENROLLMENT, BUDGET, AND ASSETS. THE COMPARABILITY DATA IS OBTAINED FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS AND FROM THE ASSOCIATION OF GREATER WASHINGTON INDEPENDENT SCHOOLS. 3. THE COMPARABILITY DATA IS TABULATED AND COMPARED TO THE PROPOSED COMPENSATION FOR THE HEAD OF SCHOOL. THE COMPENSATION COMMITTEE DECIDES WHETHER THE PROPOSED COMPENSATION IS REASONABLE IN LIGHT OF WHAT COMPARABLE SCHOOLS ARE CURRENTLY PAYING THEIR HEADS, AND MAKES ADJUSTMENTS TO THE PROPOSED COMPENSATION AS NECESSARY TO ENSURE REASONABLENESS AND COMPARABILITY. 4. THE COMPENSATION COMMITTEE DOCUMENTS THE BASIS FOR ITS DETERMINATION CONCURRENTLY WITH THE APPROVAL. DOCUMENTATION INCLUDES: TERMS OF THE PROPOSED COMPENSATION, MEMBERS OF THE COMMITTEE WHO WERE PRESENT AND VOTED, AND THE COMPARABILITY DATA AND HOW IT WAS OBTAINED. 5. THE COMPENSATION COMMITTEE THEN MEETS WITH THE HEAD SEARCH COMMITTEE (IF ONE THEN EXISTS) TO PRESENT ITS DETERMINATION, AND THE SEARCH COMMITTEE FINALIZES THE OFFER TO THE HEAD. 6. THE MAJOR DETAILS OF THE HEAD CONTRACT ARE THEN PRESENTED TO THE FULL BOARD OF TRUSTEES FOR THEIR INFORMATION AND ACCEPTANCE. EVERY FEW YEARS DURING A HEAD'S CONTRACT TERM, A SLIGHTLY LESS FORMAL VERSION OF THIS PROCESS IS FOLLOWED TO ENSURE THAT COMPENSATION INCREASES AWARDED THE HEAD UNDER THE CURRENT CONTRACT REMAIN REASONABLE COMPARED TO LIKE SCHOOLS. FOR THE BUSINESS OFFICER: WHENEVER A COMPENSATION COMMITTEE IS FORMED TO EXAMINE THE HEAD'S COMPENSATION, IT USES THE SAME PROCESS TO EXAMINE THE BUSINESS OFFICER'S COMPENSATION, TO ENSURE REASONABLENESS AND COMPARABILITY. FORM 990, PART VI, SECTION C, LINE 19 THE BOARD HAS NO SPECIFIC POLICY ON THIS MATTER. THE SCHOOL'S PRACTICE IS TO SHARE THESE DOCUMENTS ON REQUEST WITH INDIVIDUALS OR ORGANIZATIONS THAT HAVE A LEGITIMATE BUSINESS NEED TO SEE THE DOCUMENTS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,833,272.