2018-02-03T12:22:48-06:00 2017-06-30 420714325 RSM US LLP 9737 Washingtonian Blvd Flr 4 Gaithersburg MD 20878 990 2016-07-01 231365963 REGENTS OF THE MERCERSBURG COLLEGE REGE 7173286110 300 EAST SEMINARY ST MERCERSBURG PA 172361551 MARIA L KIMSEY TREASURER 7173286110 2018-02-01 1 William E Turco CPA P00369217 3012963600 66.98.98.5 2018-02-01 09:15:18 ES P B807BA4C69A73CA6C24C1450FD5847F62F078646 C19F5D3F195EC13517A150B69ABBCB37DF598FBC 2016 2021-01-29 14:40:06Z The Mercersburg Academy Katherine M Titus 300 EAST SEMINARY ST MERCERSBURG PA 172361551 133301209 0 X WWW.mercersburg.edu X 1865 PA Mercersburg Academy prepares young men and women from diverse backgrounds for college and for life in a global community. Students at Mercersburg pursue a rigorous and dynamic curriculum while learning to live together harmoniously in a supportive residential environment. Mercersburg's talented faculty instill in students the value of hard work and the importance of character and community as they teach students to think for themselves, to approach life thoughtfully and creatively, to thrive physically, to act morally, to value the spiritual dimension of human existence, and to serve others. 31 30 373 677 5484 0 34418512 12460359 25096875 25898223 24816141 7562563 286774 435695 84618302 46356840 5820309 5834428 0 0 19232522 19343367 26250 0 3262887 17568766 17742987 42647847 42920782 41970455 3436058 435320369 461019229 74403925 68450939 360916444 392568290 X Mercersburg Academy prepares young men and women from diverse backgrounds for college and for life in a global community. Students at Mercersburg pursue a rigorous and dynamic curriculum while learning to live together harmoniously in a supportive residential environment. Mercersburg's talented faculty instill in students the value of hard work and the importance of character and community as they teach students to think for themselves, to approach life thoughtfully and creatively, to thrive physically, to act morally, to value the spiritual dimension of human existence, and to serve others. 0 0 30952600 5834428 24811728 An independent college-preparatory school in south-central Pennsylvania, the Academy offers a rigorous academic program to approximately 430 boarding and day students in grades 9 through 12. In small classes, students and faculty work eye to eye and mind to mind, as they deepen their understanding of their subjects-and of themselves. Outside the classroom, students immerse themselves in theater, sports, music, competitions, and camaraderie. They develop deep friendships with students from next door and from across the world. They explore new concepts and push past their limits. Mercersburg is a place of transformation. Students transform themselves-as they prepare to transform their world. 894701 1086495 Summer and Extended Programs:Programs outside the regular academic program including academic instruction, athletics, fine arts, and international and domestic travel programs during school breaks and the summer. 31847301 1 1 0 0 0 0 0 1 0 1 1 1 0 0 1 1 1 0 1 1 1 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 150 0 1 373 1 1 1 0 0 0 0 0 0 0 0 0 X 31 30 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AK CO DC MA MD MI NJ NH NV OK OR SC WA X MARIA L KIMSEY Mercersburg Academ 7173286110 300 EAST SEMINARY ST MERCERSBURG PA 172361551 David O Frantz PhD President 8.00 X X 0 0 0 Stacie Rice Lissette Esq Vice President 5.00 X X 0 0 0 Deborah J Simon Vice President 5.00 X X 0 0 0 Trustee Trustee 3.00 X 0 0 0 Kenneth T Berents Trustee 1.50 X 0 0 0 Albert C Bellas Trustee 3.00 X 0 0 0 Kenneth T Berents Trustee 1.50 X 0 0 0 Cynthia L Davenport Borger Trustee 1.50 X 0 0 0 Barrett Burns Trustee 1.50 X 0 0 0 Sally Anne Epstein Trustee 1.50 X 0 0 0 Laura Fisher Trustee 1.50 X 0 0 0 David C Flanagan Trustee 1.50 X 0 0 0 Samuel N Goldsmith Trustee 1.50 X 0 0 0 Thomas B Hadzor Trustee 3.00 X 0 0 0 Andrew W Hall Trustee 1.50 X 0 0 0 H Dean Hosgood III PhD MPH Trustee 1.50 X 0 0 0 Todd D Hovenden Trustee 1.50 X 0 0 0 Honorable John E Jones III Trustee 3.00 X 0 0 0 Magdalena Kala Trustee 1.50 X 0 0 0 Peter M Lebovitz Trustee 3.00 X 0 0 0 Philip A Lloyd Esq Trustee 3.00 X 0 0 0 Pierce Lord Trustee 1.50 X 0 0 0 Douglas L Miller Esq Trustee 1.50 X 0 0 0 Jamil T Myrie Trustee 1.50 X 0 0 0 Amy Jones Satrom Trustee 1.50 X 0 0 0 Jorge A Vargas Trustee 1.50 X 0 0 0 David G Wagner Trustee 3.00 X 0 0 0 Steven M Wagshal Trustee 1.50 X 0 0 0 Vanessa E Youngs Trustee 1.50 X 0 0 0 Allen W Zern Trustee 3.00 X 0 0 0 Katherine Titus Head of School 70.00 X X 158155 0 77092 Maria Kimsey Asst Head/Fin & Ops/trea/Asst Sec 60.00 X 231423 0 35968 Brian H Hargrove Asst Head/Advancement/Sec/Asst Trea 60.00 X 251761 0 48348 Mary Rutherford Assoc. Head of School 60.00 X 170608 0 26361 Julia Maurer Asst. Head of School 60.00 X 149869 0 118556 Brian Nordyke Director of Facilities 50.00 X 147433 0 29946 Carolyn Yeager Director of Development 50.00 X 144146 0 56334 Jeffrey Goetz Controller 50.00 X 128625 0 22489 Danielle Nordyke Director of Human Resources 50.00 X 118319 0 21830 Douglas Hale Former Head of School 70.00 X 757706 0 40215 2258045 0 477139 16 1 1 0 CONEWAGO ENTERPRISES INC 660 EDGEGROVE ROAD HANOVER PA 17331 CONSTRUCTION 7335207 SAGE DINING SERVICES INC 1402 YORK ROAD STE 100 LUTHERVILLE MD 21093 FOOD SERVICE 2188972 MORGAN-KELLER INC 70 THOMAS JOHNSON DRIVE FREDERICK MD 21702 CONSTRUCTION 1438077 STEEGETHOMSON COMMUNICATIONS 230 S BROAD ST STE 200 PHILADELPHIA PA 19102 MARKETING/COMMUNICATIONS 544951 BEYNON SPORTS SURFACES INC 16 ALT ROAD Hunt Valley MD 21030 CONSTRUCTION 439437 13 12460359 720716 12460359 TUITION AND FEES 900099 25193282 25193282 SUMMER PROGRAMS 900099 704941 704941 25898223 3383542 3383542 7800 0 7800 7800 7800 91123140 250 86944369 0 4178771 250 4179021 4179021 189760 0 189760 189760 Liquidated damages 900099 112700 112700 dINING HALL 900099 57507 5484 52023 Laundromat 900099 12913 12913 55015 55015 238135 46356840 25898223 5484 7992774 7000 7000 5827428 5827428 1187614 1187614 574123 574123 12215455 8804862 2099482 1311111 1219858 870812 211425 137621 3140408 2407739 466364 266305 1005909 766125 151087 88697 206316 201263 4882 171 57916 57916 780388 780388 1025697 326437 677414 21846 539350 539350 727152 317276 66231 343645 637359 571731 37062 28566 1570031 1529404 40627 917080 405591 410443 101046 631227 132427 2216 496584 2109814 1524420 414210 171184 3135964 2279424 614491 242049 429026 429026 Taxes 138369 138369 Food 1911440 1911440 CURRICULUM DEVELOPMENT 1611905 1611905 Auxillary activities 405679 405679 908274 687713 207126 13435 42920782 31847301 7810594 3262887 1500 1500 31009230 21171869 78478595 72562727 47990 109234 241551 468253 502762 233467 240248 882957 486743 142356678 46789679 92126534 95566999 53530349 44265078 178327400 225381402 214094 489116 435320369 461019229 3974819 2461776 5328656 5052210 49235000 49235000 225000 15640450 11701953 74403925 68450939 X 165116813 184631684 19226355 23976841 176573276 183959765 360916444 392568290 435320369 461019229 X 3436058 24228214 3987574 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2333840 X X 0 242547469 11793182 31492788 11176907 780388 273876144 250891115 12016128 -8382123 11285888 691763 242547469 242246044 14686981 5186095 10555309 672696 250891115 215147512 5273549 31881245 9466594 589668 242246044 190747345 4967613 29259705 9336173 490978 215147512 0.51740 0.45440 0.02820 0 0 366297 366297 136498412 45184998 91313414 2356281 1604681 751600 3135688 3135688 95566999 ALTERNATIVE INVESTMENTS 94825702 F Pooled investments 100932726 F Equity Investment 20881 F 2771731.59-VG ST Admiral (VFSUX) 29602093 F 225381402 interest rate swap agreements 9242037 Asset Retirement Obligation 327766 Split-interest agreements 1841836 Deferred Compensation liability 290314 11701953 X 67541911 24228214 -2262755 21965459 45576452 780388 780388 46356840 35890065 0 35890065 780388 6250329 7030717 42920782 Part III, Line 4: Mercersburg's fine arts and valuable items collections include, but are not limited to, paintings, etchings, pictures, tapestries, stained glass windows, antiquities and other works of art (i.e. valuable rugs, sculptures, bronzes, antique furniture, rare books, historical letters, antique silver, manuscripts, rare glass) of rarity, historical value, and/or artistic merit. Art not only provides aesthetic appreciation and enjoyment, it also has the power to stimulate creative thinking and discussion. We attempt to integrate art into the lives of people, inspiring reflection and generating historical and cultural awareness. Some pieces of Mercersburg's collection are permanently on display throughout the school, others are periodically placed on exhibit to the school community and the general public. Part V, Line 4: The purpose of the Endowment is to support the current operations and activities of the Academy through a total return investment strategy and a spending policy set to maintain, or ideally increase, the purchasing power of the Endowment, without putting the principal value of the Endowment's investments at imprudent risk. Part X, Line 2: Under provisions of the Internal Revenue Code, Section 501(c)(3), and the applicable income tax regulations of Pennsylvania, Mercersburg is exempt from taxes on income other than unrelated business income. Since Mercersburg had no material unrelated business income during the years ended June 30, 2017 and 2016, no provision for income taxes has been made. The accounting standard on accounting for uncertainty in income taxes addresses 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, Mercersburg 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% 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. Mercersburg had no such positions recorded in the financial statements at June 30, 2017 and 2016. Generally, Mercersburg is no longer subject to U.S. federal income tax positions by tax authorities for years before 2014. Part XI, Line 2d - Other Adjustments: INSTITUTIONAL STUDENT AID NETTED AGAINST TUITION AND FEES -5,760,051. Bank fees, bad debt & Prof. fees reclassed to functional expense 2,443. actuarial adjustment on split-interest agreements -48,509. Change in market value of swap agreement 4,036,083. Fundraising costs related to capital gifts -492,721. Part XII, Line 4b - Other Adjustments: INSTITUTIONAL STUDENT AID NETTED AGAINST TUITION AND FEES 5,760,051. Bank fees, bad debt & Prof. fees reclassed to functional expense -2,443. Fundraising costs related to capital gifts 492,721. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 Schedule E, Part I, Line 3 REGENTS OF THE MERCERSBURG COLLEGE PUBLICIZES ITS RACIALLY NON-DISCRIMINATORY POLICY ANNUALLY IN THE WASHINGTON POST. Europe (Including Iceland & Greenland) 0 2 program services agent/consultant used to coordinate students' travel (Global Programs) 58837 Central America and the Caribbean 0 0 program services student service/academic trip 76669 East Asia and the Pacific 0 0 program services student service/academic trip 30078 Europe (Including Iceland & Greenland) 0 0 program services student service/academic trip 186283 South America 0 0 program services student service/academic trip 12780 East Asia and the Pacific 0 0 fundraising soliciting gifts 17563 North America 0 0 fundraising soliciting gifts 2007 Central America and the Caribbean 0 0 program services Admission efforts for recruitment 5000 East Asia and the Pacific 0 0 program services Admission efforts for recruitment 27350 Europe (Including Iceland & Greenland) 0 0 program services Admission efforts for recruitment 6500 North America 0 0 program services Admission efforts for recruitment 1725 Middle East and North Africa 0 0 program services Admission efforts for recruitment 6900 Europe (Including Iceland & Greenland) 0 6 program services use of agent/consultant for recruiting international students (Admission) 45080 North America 0 2 program services use of agent/consultant for recruiting international students (Admission) 11270 Russia and Neighboring States 0 1 program services use of agent/consultant for recruiting international students (Admission) 5635 Central America and the Caribbean 0 0 Investment 64443555 Europe (Including Iceland & Greenland) 0 0 Investment 1166079 0 2 0 9 0 11 389217 65714094 66103311 1 0 0 0 0 1 1 MMP & W VOLUNTEER FIRE COMPANY 132 NORTH MAIN STREET MERCERSBURG PA 17236 251146751 501(c)(3) 7000 general support to assist with needs of the fire company Scholarships 197 5713480 Student aid for required fees, books and supplies 24 46571 student service/cultural trip 64 67377 Part I, Line 2: Families apply for financial aid through School and Student Services by completing a parent financial statement and supplying three years of W2s and 1040s plus business/farm statements as applicable. X X X 1 1 X X X X 0 0 0 0 0 0 0 1 0 Katherine Titus Head of School 152933 0 5000 0 222 0 17352 0 61736 0 237243 0 0 0 Maria Kimsey Asst Head/Fin & Ops/trea/Asst Sec 210152 0 0 0 21271 0 25415 0 15793 0 272631 0 0 0 Brian H Hargrove Asst Head/Advancement/Sec/Asst Trea 198123 0 0 0 53638 0 25190 0 30153 0 307104 0 0 0 Mary Rutherford Assoc. Head of School 164125 0 0 0 6483 0 18414 0 12901 0 201923 0 0 0 Julia Maurer Asst. Head of School 149559 0 0 0 310 0 16967 0 105984 0 272820 0 0 0 Brian Nordyke Director of Facilities 146728 0 0 0 705 0 16789 0 16399 0 180621 0 0 0 Carolyn Yeager Director of Development 143716 0 0 0 430 0 15889 0 41568 0 201603 0 0 0 Jeffrey Goetz Controller 127777 0 0 0 848 0 14446 0 12767 0 155838 0 0 0 Douglas Hale Former Head of School 163800 0 501986 0 91920 0 20735 0 23543 0 801984 0 0 0 Part I, Line 1a The Discretionary account is only associated with school business and is not for personal expenses. The head of school is required to live on campus. The house is used regularly for school functions including student dinners, board entertainment, alumni events and hosting overnight teacher candidates and speakers. T. Douglas Hale, Former Head of School, and Katherine Titus, Current Head of School, received non-taxable housing allowance in the amount of $10,000, including part-time housekeeping services. Following employees received taxable housing: Brian Hargrove - $17,950 Mary D. Rutherford - $4,226 Part I, Line 7 Katherine Titus received a performance bonus in the amount of $5,000 and this is reported in Schedule J, Part II, Column B(II). As of June 30, 2016, Douglas Hale received a $501,986 longevity bonus as approved by Mercersburg Academy's Board of Regents. A MERCERSBURG BOROUGH GENERAL PURPOSE AUTHORITY 236002995 2009-12-18 30000000 REFUND 2000A & 2000B BOND ISSUES 0 0 0 B MERCERSBURG BOROUGH GENERAL PURPOSE AUTHORITY 236002995 2010-02-17 19235000 REFUND 2000B & 2005 BOND ISSUES 0 0 0 A 30000000 30000000 2010 1 0 1 1 B 19235000 120000 19115000 2010 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 1 0 1 1 SUNTRUST BANK 22.000000000000 0 0 0 0 1 B 0 0 1 0 1 1 SUNTRUST BANK 22.000000000000 0 0 0 0 1 A 1 B 1 Katherine M Titus Head of School Mortgage loan for home in Rhode Island X 250000 241551 0 1 1 241551 X 36 720197 average of high/low X shirts for girls lacrosse 1 519 Invoice 0 1 0 Form 990, Part VI, Section B, line 11b Form 990 is provided to each board member and officer electronically for their independent review before it is filed. Form 990, Part VI, Section B, line 12c Officers, trustees, and ALL employees are required annually to prepare a "Conflict of Interest Policy Questionnaire" disclosing businesses, activities, and/or relationships that may give rise to conflicts. These are reviewed, and addressed as necessary, by management. Form 990, Part VI, Section B, line 15 THE EXECUTIVE COMMITTEE OF MERCERSBURG ACADEMY'S BOARD DELIBERATE ON, REVIEW, AND APPROVE THE SALARY OF THE HEAD OF SCHOOL AND THE OTHER TWO TOP EMPLOYEES. THIS GROUP HAS FULL COMPARABILITY DATA AVAILABLE FROM BOTH ABOPS AND NAIS TO AID IN SUCH DELIBERATIONS. THE EXECUTIVE COMMITTEE REPORTS ITS FINDINGS TO THE ENTIRE BOARD THAT THEY HAVE REVIEWED AND APPROVED THE COMPENSATION OF THESE INDIVIDUALS. THE HEAD OF SCHOOL UNDERGOES ANOTHER REVIEW BY THE FULL BOARD AT THE MAY MEETINGS. THE COMPLETION OF THAT DELIBERATION, REVIEW, AND APPROVAL PROCESS IS RECORDED IN THE MINUTES OF THE MAY BOARD MEETINGS. THE OFFICERS OF MERCERSBURG ACADEMY'S BOARD DISCUSS, REVIEW, AND APPROVE THE RECOMMENDATION FROM THE HEAD OF SCHOOL CONCERNING THE SALARIES OF THE TOP FOUR HIGHEST PAID EMPLOYEES OF THE SCHOOL, NOT INCLUDING THE HEAD OF SCHOOL. THESE BOARD OFFICERS ALSO HAVE FULL COMPARABILITY DATA AVAILABLE FROM BOTH ABOPS AND NAIS TO AID IN THEIR DELIBERATIONS. Form 990, Part VI, Section C, line 19 Governing documents, conflict of interest policy and audited financial statements are available upon request or at the Business Office, Mercersburg Academy. Form 990, Part XI, line 9: actuarial adjustment on split-interest agreements -48,509. Change in market value of swap agreement 4,036,083.