2020-05-07T10:38:40-05:00 2019-06-30 251408703 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 990 2018-07-01 250965561 SHADY SIDE ACADEMY SHAD 4129683137 423 FOX CHAPEL ROAD PITTSBURGH PA 152382296 GILBERT SCHNEIDER CFO 4129683137 2020-05-05 1 SUSAN M KIRSCH P00341397 4122613644 71.199.115.66 2020-05-05 10:27:02 ED P 470F6EE92D0861946F302F57E10AE5E26DE8070F 2DE944997D7ABE881877DC4F54E6CC9B6D27F555 2018 2020-11-19 02:30:22Z BARTLEY P GRIFFITH 423 FOX CHAPEL ROAD PITTSBURGH PA 152382296 39120101 0 X WWW.SHADYSIDEACADEMY.ORG X 1883 PA PROVIDES EDUCATION TO STUDENTS IN PRE-KINDERGARTEN THROUGH TWELFTH GRADE. 32 31 518 31 0 0 6149569 3338848 29624572 30012747 1229919 1850962 -77299 -176930 36926761 35025627 3832722 4293923 0 0 21694577 21759870 0 0 1082816 11644074 11957075 37171373 38010868 -244612 -2985241 105680512 105163161 7885746 8863815 97794766 96299346 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 23821547 4171597 26336329 INSTRUCTIONAL:-THE ACADEMY ENROLLS APPROXIMATELY 1,035 STUDENTS (PRE K - 12). THE ACADEMY IS COLLEGE PREPARATORY WITH MOST SENIORS CONTINUING ON TO HIGHER EDUCATION. THE ACADEMY OPERATES FOUR SEPARATE CAMPUSES FOR COUNTRY DAY, 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. 2138034 122325 2032729 AUXILIARY SERVICES:-RESIDENTIAL LIFE PROGRAM: THE ACADEMY OPERATES A FIVE AND SEVEN DAY BOARDING PROGRAM FOR APPROXIMATELY 76 STUDENT BOARDERS. THE STUDENTS ARE HOUSED IN ACADEMY DORMITORIES WITH ADMINISTRATORS AND 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. 1659846 1254989 SUMMER PROGRAMS:-SHADY SIDE ACADEMY'S SUMMER PROGRAMS PROVIDE AN ENDLESS ARRAY OF POSSIBILITIES FOR ALL KIDS. 27619427 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 1 0 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 1 0 0 0 0 1 1 0 0 0 1 60 0 1 518 1 0 0 0 0 0 0 0 0 0 0 0 0 X 32 31 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X GILBERT SCHNEIDER CFO 4129683034 423 FOX CHAPEL ROAD PITTSBURGH PA 15238 X NICOLLE BAGNELL TRUSTEE 3.50 0.00 X 0 0 0 JAMES BERNIER TRUSTEE 3.50 0.00 X 0 0 0 ROBERT E COCHRAN TRUSTEE 3.50 0.00 X 0 0 0 KARA SALVITTI CONOMIKES TRUSTEE 3.50 0.00 X 0 0 0 ROLAND J COSTON-CRISWELL TRUSTEE 3.50 0.00 X 0 0 0 DEBRA KLINE DEMCHAK CHAIR ENDOWMENT 3.50 0.00 X 0 0 0 ANNIE HANNA ENGEL CHAIR AUDIT 3.50 0.00 X 0 0 0 BRYAN P GENTILE TRUSTEE 3.50 0.00 X 0 0 0 ROBERT GLIMCHER CHAIR AUDIT 3.50 0.00 X 0 0 0 AMIT SINGH GROVER TRUSTEE 3.50 0.00 X 0 0 0 MICHELE JEGASOTHY TRUSTEE 3.50 0.00 X 0 0 0 JOSEPH L KELLEY TRUSTEE 3.50 0.00 X 0 0 0 MARY ANNE HANNA LANG TRUSTEE 3.50 0.00 X 0 0 0 CHERYL L LITTLE TRUSTEE 3.50 0.00 X 0 0 0 VIRGINIA RAMSEY LYONS TRUSTEE 3.50 0.00 X 0 0 0 PETER J MCILROY TRUSTEE 3.50 0.00 X 0 0 0 MIROYA MONSOUR TRUSTEE 3.50 0.00 X 0 0 0 GREGG M PERELMAN TRUSTEE 3.50 0.00 X 0 0 0 JAMES E ROHR JR TRUSTEE 3.50 0.00 X 0 0 0 SARA SCAIFE TRUSTEE 3.50 0.00 X 0 0 0 ANN GIBBONS SCHERLIS TRUSTEE 3.50 0.00 X 0 0 0 VANCE M SMITH IV TRUSTEE 3.50 0.00 X 0 0 0 GEORGE L STEWART II CHAIR COMMITTEE ON TRUSTEES 3.50 0.00 X 0 0 0 JEFFREY B TODD TRUSTEE 3.50 0.00 X 0 0 0 T SPENCER TODD TRUSTEE 3.50 0.00 X 0 0 0 LAUREN O'BRIEN TROUTMAN TRUSTEE 3.50 0.00 X 0 0 0 MICHAEL J HANNON IMMEDIATE PAST CHAIR 3.50 0.00 X X 0 0 0 JONATHAN M KAMIN CHAIR OF THE BOARD 3.50 0.00 X X 0 0 0 THOMAS KARET VICE CHAIR FOR BUILDINGS AND GROUNDS 3.50 0.00 X X 0 0 0 JEFFREY A MCDANIEL VICE CHAIR FOR COMMUNITY LIFE 3.50 0.00 X X 0 0 0 ROBERT S MULLIN VICE CHAIR FOR FINANCE, TREASURER 3.50 0.00 X X 0 0 0 LOIUS B PLUNG VICE CHAIR FOR DEVELOPMENT 3.50 0.00 X X 0 0 0 GILBERT SCHNEIDER CHIEF FINANCIAL OFFICER 40.00 0.00 X 174443 0 28916 DEBRA MAUDER SECRETARY OF THE BOARD 40.00 0.00 X 101269 0 35719 AMY NIXON INTERIM PRESIDENT 40.00 0.00 X 214658 0 36691 ALLISON SARAS DIRECTOR ALUMNI AND DEVELOPMENT 40.00 0.00 X 111375 0 12684 EUGENE DEAL ATHLETIC DIRECTOR 40.00 0.00 X 107488 0 36043 SOPHIE LAU HEAD OF SENIOR SCHOOL 40.00 0.00 X 118544 0 93875 ELLEN MCCONNELL HEAD OF JUNIOR SCHOOL 40.00 0.00 X 118050 0 31670 TIMOTHY WINNER DIRECTOR OF EDUCATIONAL TECHNOLOGY 40.00 0.00 X 117287 0 22505 THOMAS M CANGIANO FORMER PRESIDENT 40.00 0.00 X 152705 0 38155 1215819 0 336258 9 1 1 0 PJ DICK INCORPORATED PO BOX 6774 PITTSBURGH PA 15212 CONSTRUCTION 5600645 METZ CULINARY MANAGEMENT TWO WOODLAND DRIVE DALLAS PA 18612 FOOD SERVICE/CATERING 1699041 PALOMBO LANDSCAPING INC 530 HAMILTON DR PITTSBURGH PA 15235 STADIUM TURF 390876 ABC TRANSIT INC 4242 WILLIAM FLYNN HIGHWAY ALLISON PARK PA 15101 BUS LEASES/RENTALS 358101 STRADA ARCHITECTURE LLC 611 WILLIAM PENN PLACE SUITE 700 PITTSBURGH PA 15219 ARCHITECTURE 248629 14 3338848 352313 3338848 TUITION AND FEES 900099 26336329 26336329 AUXILIARY SERVICES 900099 2421429 2032729 388700 SUMMER PROGRAMS 900099 1254989 1254989 30012747 1269819 1269819 4317946 3736803 581143 581143 581143 180741 357671 -176930 -176930 35025627 29624047 0 2062732 4238711 4238711 55212 55212 575525 62731 450063 62731 15695733 11033293 4002426 660014 810751 596451 174018 40282 3475219 2744615 655501 75103 1202642 827148 322460 53034 14381 14381 65718 65718 118410 118410 339299 339299 430597 359849 70748 1572256 1139079 372763 60414 672249 518334 153915 1487115 1487115 250497 227637 5901 16959 7210 7210 100309 100309 2407836 1926269 481567 325255 325255 BUILDINGS AND GROUNDS 2727871 1172202 1555669 SUMMER PROGRAMS 1079932 1079932 EXEC SEARCH EXPENSE 140829 13676 127153 BAD DEBT 127380 83849 43531 89931 73874 16057 38010868 27619427 9308625 1082816 1683169 2715698 2659265 1649451 2097810 1321988 672216 602849 293774 185079 457971 505361 78104184 41554325 36229130 36549859 61587177 61632876 105680512 105163161 3040406 1892592 2480799 2359532 2000000 4000000 364541 611691 7885746 8863815 X 33947072 31952606 565517 435453 63282177 63911287 97794766 96299346 105680512 105163161 -2985241 1489821 0 X X 0 1 X 1 0 X 4858016 5109492 9173600 6149569 3338848 28629525 4858016 5109492 9173600 6149569 3338848 28629525 3769477 24860048 245864 824861 939186 1072072 1269819 4351802 32981327 141548774 0.75380 0.78890 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 63282177 513664 3199497 1259441 1824610 63911287 59565023 749569 5640642 1077705 1595352 63282177 52790169 1668834 7890219 1062724 1721475 59565023 54060433 1877406 -206173 1008904 1932593 52790169 58812842 580409 482018 1115253 4699583 54060433 0.00000 1.00000 0.00000 0 0 555563 555563 60683438 26371526 34311912 12414868 11866319 548549 4450315 3316480 1133835 36549859 ANNUITIES PAYABLE 38958 LEASE PAYABLE 572733 611691 X 32476943 1489821 -4293923 -2804102 35281045 118410 -373828 -255418 35025627 33972363 373828 373828 33598535 118410 4293923 4412333 38010868 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 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 NET ASSETS RESTRICTED IN PERPETUITY ENDOWMENT FUNDS THE ORIGINAL AND SUBSEQUENT VALUE OF GIFTS DONATED TO THE 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, 2019 AND 2018. MANAGEMENT BELIEVES THAT THE ACADEMY IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR TAX YEARS PRIOR TO 2016. PART XI, LINE 2D - OTHER ADJUSTMENTS: SCHOLARSHIPS/FINANCIAL AID -4,293,923. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -357,671. AUXILIARY EXPENSES NETTED AGAINST INCOME -16,157. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 357,671. AUXILIARY EXPENSES NETTED AGAINST INCOME 16,157. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS/FINANCIAL AID 4,293,923. 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. 1 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 13525 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 21606 SOUTH AMERICA - ARGENTINA, BOLIVIA, BRAZIL, CHILE, COLUMBIA, EQUADOR 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 3515 SOUTH ASIA - AFGHANISTAN, BANGLADESH, BHUTAN, INDIA, MALDIVES, NEPAL, 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 3900 MIDDLE EAST AND NORTH AFRICA - ALGERIA, BAHRAIN, DJIBOUTI, EGYPT, 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 2500 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 7650 SUB-SAHARAN AFRICA - ANGOLA, BENIN, BOTSWANA, BURKINA FASO, 0 0 PROGRAM SERVICES EDUCATIONAL PROGRAMS 2516 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 999600 0 0 0 0 0 0 1054812 0 1054812 EAST ASIA AND THE PACIFIC 13525 DIRECT DEPOSIT OR CHECK N/A N/A EUROPE (INCLUDING ICELAND & GREENLAND) 21606 DIRECT DEPOSIT OR CHECK N/A N/A MIDDLE EAST AND NORTH AFRICA 2500 DIRECT DEPOSIT OR CHECK N/A N/A CENTRAL AMERICA AND THE CARIBBEAN 7650 DIRECT DEPOSIT OR CHECK N/A N/A SOUTH ASIA 3900 DIRECT DEPOSIT OR CHECK N/A N/A SUB-SAHARAN AFRICA 2516 DIRECT DEPOSIT OR CHECK N/A N/A SOUTH AMERICA 3515 DIRECT DEPOSIT OR CHECK N/A N/A 1 0 1 1 0 0 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. 1 FINANCIAL AID 242 4015610 N/A N/A TUITION DISCOUNTS 182 217893 N/A N/A AUGUSTUS SCHROEDER AWARDS 16 5208 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. X X X 1 1 X X X 0 0 0 0 0 0 0 1 0 GILBERT SCHNEIDER CHIEF FINANCIAL OFFICER 174193 0 250 0 0 0 12726 0 16190 0 203359 0 0 0 AMY NIXON INTERIM PRESIDENT 214408 0 250 0 0 0 13417 0 23274 0 251349 0 0 0 SOPHIE LAU HEAD OF SENIOR SCHOOL 118294 0 250 0 0 0 7425 0 86450 0 212419 0 0 0 THOMAS M CANGIANO FORMER PRESIDENT 152705 0 0 0 0 0 13253 0 24902 0 190860 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, THE ORGANIZATION PROVIDES THE PRESIDENT WITH A MEMBERSHIP TO THE DUQUESNE CLUB. 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. 8850 STUDENT AID FINANCIAL AID X 29 352313 FAIR MARKET VALUE 0 0 1 0 PART I, COLUMN (B): THE NUMBER SHOWN IN COLUMN (B) REPRESENTS THE NUMBER OF STOCK CONTRIBUTIONS THROUGH JUNE 30, 2019. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE, WHEN NECESSARY OR DESIRABLE BETWEEN MEETINGS OF THE BOARD, HAVE AND PERFORM ALL THE POWERS AND DUTIES OF THE BOARD; PROVIDED, HOWEVER, THAT THE EXECUTIVE COMMITTEE SHALL NOT HAVE ANY OF THE POWERS SPECIFICALLY RESERVED TO THE BOARD BY LAW OR THESE BY-LAWS OR THE POWER TO ALTER THE FUNDAMENTAL POLICIES OF THE BOARD. THE ESTABLISHMENT OF AN EXECUTIVE COMMITTEE AND THE DELEGATION THERETO OF POWER AND AUTHORITY SHALL NOT RELIEVE ANY TRUSTEE OF HIS FIDUCIARY RELATIONSHIP AND RESPONSIBILITY TO THE ACADEMY, AND EACH TRUSTEE SHALL DISCHARGE HIS DUTIES IN GOOD FAITH AND WITH THAT DILIGENCE, CARE AND SKILL WHICH AN ORDINARILY PRUDENT PERSON WOULD EXERCISE UNDER SIMILAR CIRCUMSTANCES. FORM 990, PART VI, SECTION A, LINE 7A AN INDIVIDUAL ELECTED PRESIDENT OF THE ALUMNI COUNCIL SHALL COMMENCE TO SERVE A THREE YEAR TERM AS TRUSTEE ON THE JULY 1 NEXT FOLLOWING THE ASSUMPTION OF OFFICE AS PRESIDENT OF THE ALUMNI COUNCIL. PURSUANT TO THE AFFILIATION AGREEMENT DATED AUGUST 11, 2016 BETWEEN FOX CHAPEL COUNTRY DAY SCHOOL INC. (HEREINAFTER REFERRED TO AS "FCCDS") AND THE ACADEMY, THE INDIVIDUAL WHO WAS THE PRESIDENT OF THE FCCDS BOARD OF TRUSTEES AS OF AUGUST 11, 2016 (IN CONSULTATION WITH THE HEAD OF SCHOOL OF FCCDS) SHALL ELECT (I) TWO TRUSTEES TO SERVE TERMS BEGINNING JULY 1, 2016, (II) TWO TRUSTEES TO SERVE TERMS BEGINNING JULY 1, 2017, (III) TWO TRUSTEES TO SERVE TERMS BEGINNING JULY 1, 2019 (WHICH TRUSTEES MAY BE THE SAME TRUSTEES ELECTED PURSUANT TO SECTION 1.10(A)(I)), AND (IV) TWO TRUSTEES TO SERVE TERMS BEGINNING JULY 1, 2020 (WHICH TRUSTEES MAY BE THE SAME TRUSTEES ELECTED PURSUANT TO SECTION 1.10(A)(II)) FORM 990, PART VI, SECTION B, LINE 11B 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 THE POSITIONS OF PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE ACADEMY. IN ADDITION, THE ACADEMY ENGAGES THE SERVICES OF LOCAL LEGAL COUNSEL TO ASSIST IN THE REVIEW AND PREPARATION OF EMPLOYMENT CONTRACTS AND/OR AGREEMENTS. THE ACADEMY'S PRESIDENT ANALYZES DATA FROM THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS, THE PENNSYLVANIA ASSOCIATION OF INDEPENDENT SCHOOLS, AND OTHER LOCAL SURVEYS TO DETERMINE APPROPRIATE SALARY RANGES FOR OTHER KEY EMPLOYEES. 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 BENEDUM; MICHAEL P. CASEY; FLOYD A. CEPHAS, SR.; MARY ELLEN COSTA; JOHN P. DAVIS, JR.; JOHN H. DEMMLER; DIANE M. FISHER; WILLIAM P. GETTY; LAWRENCE N. GUMBERG; STEPHEN F. HALPERN; KARL F. KRIEGER; J. STEPHEN LEE; ANNE V. LEWIS; W. THOMAS MCGOUGH, JR.; EDWIN F. SCHEETZ, JR.; SUSANNE C. WEAN; JAMES H. WOLF. 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) LINE 12A, I SHADY SIDE ACADEMY 1 FOX CHAPEL COUNTRY DAY SCHOOL 620 SQUAW RUN ROAD EAST PITTSBURGH PA 15238 250952071 SUPPORTING ORG PA 501(C)(3) LINE 12A, I SHADY SIDE ACADEMY 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0