2016-05-11T08:13:14-05:00 2015-06-30 560570567 DMJ & CO PLLC 509 WEST MAIN STREET SANFORD NC 27332 990 2014-07-01 237125932 SANDHILLS INDEPENDENT SCHOOL CORPORATION SAND 9106926920 P O BOX 290 SOUTHERN PINES NC 283880290 EDWARD T PHILLIPS CFO 9106926920 2016-05-10 1 DONNA B JOHNSON CPA P00176202 9197744535 2014 2016-08-17 19:52:53Z THE O'NEAL SCHOOL EDWARD T PHILLIPS P O BOX 290 SOUTHERN PINES NC 283880290 18029147 0 X WWW.ONEALSCHOOL.ORG X 1971 NC THE O'NEAL SCHOOL IS A COLLEGE PREPARATORY SCHOOL DEDICATED TO THE DEVELOPMENT OF ACADEMIC EXCELLENCE, STRENGTH OF CHARACTER AND PHYSICAL WELL-BEING OF ITS STUDENTS IN AN ENVIRONMENT WHERE INTEGRITY, SELF-DISCIPLINE, AND CONSIDERATION FOR OTHERS ARE FUNDAMENTAL. 19 19 140 155 0 0 391797 2260690 6374886 6911868 412423 -4289896 2925747 212811 10104853 5095473 958357 1092650 0 0 4606401 4388089 0 0 0 2440357 2065191 8005115 7545930 2099738 -2450457 15276550 6883162 8072784 2146087 7203766 4737075 THE O'NEAL SCHOOL IS A COLLEGE PREPARATORY SCHOOL DEDICATED TO THE DEVELOPMENT OF ACADEMIC EXCELLENCE, STRENGTH OF CHARACTER AND PHYSICAL WELL-BEING OF ITS STUDENTS IN AN ENVIRONMENT WHERE INTEGRITY, SELF-DISCIPLINE, AND CONSIDERATION FOR OTHERS ARE FUNDAMENTAL. 0 0 5173167 1092650 2582525 EDUCATION AND SCHOOL RELATED ACTIVITIES FOR GRADES PRE-K - 12TH SERVICING APPROXIMATELY 456 STUDENTS. 5173167 1 1 0 0 0 0 0 0 0 1 1 0 0 1 0 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0 0 1 0 0 0 0 1 1 15 0 1 140 1 0 0 0 0 0 1 0 0 0 0 0 X 19 19 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 NC X EDWARD T PHILLIPS 9106926920 3300 AIRPORT RD-PO BOX 290 28388 SOUTHERN PINES NC 28387 DR PAMELA GUEST TRUSTEE 1.00 X 0 0 0 SUSAN BALDELLI TRUSTEE 1.00 X 0 0 0 LEE HOWELL JR SECRETARY 1.00 X X 0 0 0 SHERWOOD BLACKWOOD TRUSTEE 1.00 X 0 0 0 ROBERTA KING TRUSTEE 1.00 X 0 0 0 MICHAEL GUTSCHMIT TRUSTEE 1.00 X 0 0 0 LAURIE TREXLER TREASURER 1.00 X X 0 0 0 SARAH O'LEARY TRUSTEE 1.00 X 0 0 0 STUART MILLS CHAIRMAN 1.00 X X 0 0 0 DR JOSEPH TOZZI TRUSTEE 1.00 X 0 0 0 STEPHEN LATER TRUSTEE 1.00 X 0 0 0 STAN BRADSHAW TRUSTEE 1.00 X 0 0 0 KONNI MCMURRAY VICE-CHAIRMAN 1.00 X X 0 0 0 XAN SMITH TRUSTEE 1.00 X 0 0 0 DR ZA'VETTE TATUM-KODZAI TRUSTEE 1.00 X 0 0 0 DR LYNDA ACKER TRUSTEE 1.00 X 0 0 0 R WINSTON DOZIER JR TRUSTEE 1.00 X 0 0 0 MARK EPSTEIN TRUSTEE 1.00 X 0 0 0 PAUL DENT TRUSTEE 1.00 X 0 0 0 EDWARD T PHILLIPS CFO 40.00 X 119806 0 6855 JOHN ELMORE HEADMASTER 40.00 X 173400 0 31125 ALAN K BARR FORMER HEADMASTER 40.00 X 218880 0 24855 512086 0 62835 3 1 1 0 JANI-KING OF RALEIGHDURHAM 801 JONES FRANKLIN RD STE 230 RALEIGH NC 27606 JANITORIAL 113920 1 2260690 1062170 2260690 EDUCATION SERVICE & FEE 611600 6461407 6461407 AUXILLARY SERVICES 611600 229186 229186 221275 221275 6911868 39447 39447 32914 0 32914 32914 32914 2027543 6500000 1931223 10925663 96320 -4425663 -4329343 -4329343 256685 76788 179897 179897 5095473 2582525 0 252258 1092650 1092650 325537 13850 311687 3507552 2725601 781951 50407 39457 10950 221037 173148 47889 283556 213255 70301 38838 38838 20185 20185 19351 19351 11046 11046 69882 69882 180333 180333 77320 77320 UTILITIES, INSURANCE AN 507092 52432 454660 PROFESSIONAL DUES, PUBL 282821 10369 272452 FACULTY REMISSION 181863 181863 MATERIALS AND SUPPLIES 114704 84454 30250 561756 394709 167047 7545930 5173167 2372763 0 182568 924936 1787868 425852 583527 62781 137377 57969 60869 10003 1318787 994584 11368582 324203 1155759 1815169 0 3262249 15276550 6883162 472490 430196 1076769 1415891 6500000 0 300000 23525 0 8072784 2146087 X 5547287 3022672 655895 713819 1000584 1000584 7203766 4737075 15276550 6883162 X -2450457 -16234 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1760868 0 41620 763552 1038936 1644691 150 229693 113666 1760868 1431290 217384 3983 1644691 1439197 821 9459 14087 4100 1431290 1167012 4835 270950 3600 1439197 1.00000 1 0 1159221 859780 299441 159566 134804 24762 324203 ONS INVESTORS, LLC 3262249 3262249 X 6357672 3379309 3379309 2978363 2117110 2117110 5095473 7622718 0 7622718 -76788 -76788 7545930 PART V, LINE 4: GENERAL ENDOWMENT SUPPORTS SCHOOL OPERATIONS, COOK ENDOWMENT IS USED FOR FACULTY PROFESSIONAL DEVELOPMENT, AND CURTIS ENDOWMENT IS FOR BONUSES FOR FACULTY WHO HAVE BEEN WITH THE SCHOOL FOR TWO YEARS OR MORE. PART X, LINE 2: THE SCHOOL IS A NOT-FOR-PROFIT ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXES UNDER INTERNAL REVENUE CODE SECTION 501(C)(3). THE SCHOOL ACCOUNTS FOR UNCERTAIN INCOME TAX POSITIONS BY PRESCRIBING A MINIMUM PROBABILITY THRESHOLD A TAX POSITION MUST MEET BEFORE A FINANCIAL STATEMENT INCOME TAX BENEFIT IS RECOGNIZED. THE MINIMUM THRESHOLD IS DEFINED AS A TAX POSITION, BASED SOLELY ON ITS TECHNICAL MERITS, THAT WOULD MORE LIKELY THAN NOT BE SUSTAINED UPON EXAMINATION BY THE RELEVANT TAX AUTHORITY WITH KNOWLEDGE OF THE SAME FACTS. THE TAX BENEFIT TO BE RECOGNIZED IS MEASURED AS THE LARGEST AMOUNT OF BENEFIT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED UPON ULTIMATE RESOLUTION. BASED ON ALL KNOWN FACTS AND CIRCUMSTANCES AND CURRENT TAX LAW, THE SCHOOL BELIEVES THE TOTAL AMOUNT OF UNCERTAIN INCOME TAX POSITION LIABILITIES AND RELATED ACCRUED INTEREST ARE NOT MATERIAL TO ITS FINANCIAL POSITION. AS OF JUNE 30, 2015 AND INCLUDING THE PREVIOUS THREE YEARS CONSIDERING EXTENSIONS, THE SCHOOL'S INCOME TAX RETURNS ARE OPEN AND SUBJECT TO EXAMINATION BY TAX AUTHORITIES WITH RELEVANT JURISDICTION. SHOULD SUCH AN EXAMINATION TAKE PLACE, MANAGEMENT DOES NOT ANTICIPATE ANY SIGNIFICANT ISSUES RELATED TO THE OPEN YEARS. PART XI, LINE 2D - OTHER ADJUSTMENTS: SATISFACTION OF PROGRAM REQUIREMENTS 3,329,309. IN-KIND CONTRIBUTION 50,000. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES -76,788. CONTRIBUTIONS-TEMPORARILY RESTRICTED 1,915,714. STUDENT SCHOLARSHIPS 70,900. INCOME FROM LONG-TERM INVESTMENTS 135,684. TEMPORARILY RESTRICTED - FUNDRAISING REVENUE 71,600. PART XII, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES (INCOME INCLUDED IN NET INCOME) -76,788. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 ADVERTISEMENTS IN THE LOCAL NEWSPAPERS AUCTION 256685 256685 76788 256685 256685 76788 76788 179897 NC 0 THE SCHOOL CONDUCTS A RAFFLE AS PART OF ITS AUCTION FUNDRAISER. TICKETS ARE SOLD AND UPON PURCHASING A TICKET THE DONOR IS REGISTERED TO WIN PRIZES. THE PRIZES ARE DEDUCTED FROM THE REVENUE RECEIVED FROM TICKET SALES. LABOR INVOLVED WITH CARRYING OUT THE RAFFLE IS DONE ON VOLUNTEER BASIS - PARENT ORGANIZATION OF SCHOOL, SCHOOL PERSONNEL AND OTHER COMMUNITY SUPPORTERS. 0 0 0 0 0 1 FINANCIAL AID 153 1076050 OTHER - AMOUNT OF FINANCIAL AID GIVEN IS NEED BASED AND VARIES PART I, LINE 2: THE SCHOOL USES AN INDEPENDENT THIRD PARTY TO REVIEW FINANCIAL AID APPLICANTS. ALL FINANCIAL AID IS NEED BASED. THE THIRD PARTY MAKES RECOMMENDATIONS TO THE SCHOOL ON WHAT APPLICANTS THEY FEEL NEED ASSISTANCE AND THE AMOUNT OF ASSISTANCE NEEDED. THE SCHOOL POLICY IS THAT ALL STUDENTS PAY AT LEAST 25% TOWARD TUITION REGARDLESS OF CIRCUMSTANCES. X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 JOHN ELMORE HEADMASTER 169800 0 100 0 3500 0 0 0 31125 0 204525 0 0 0 ALAN K BARR FORMER HEADMASTER 218880 0 0 0 0 0 0 0 24855 0 243735 0 0 0 MICHAEL GUTSCHMIT TRUSTEE FOR DEBT SERVICE X 50000 50000 0 1 1 MR R WINSTON DOZIER JR TRUSTEE FOR DEBT SERVICE X 250000 250000 0 1 1 300000 JOHN ELMORE HEADMASTER 13850 TUITION REMISSION X 8 1062170 AVERAGE OF HIGH/LOW 0 1 1 PART I, LINE 32B: THE SCHOOL USES VANGUARD TO SELL SECURITIES THAT ARE CONTRIBUTED TO THE SCHOOL. 0 0 0 0 0 0 0 0 1 1 REAL PROPERTY, IMPROVEMENTS AND FACILITIES 2014-09-29 6500000 OUTSTANDING BALANCE OF BOND PAYABLE TO WELLS FARGO BANK, NA 471305234 ONS INVESTORS LLC 25 CYPRESS POINT DRIVE PINEHURST NC 28374 PARTNERSHIP 0 0 1 0 PART I, LINE 6C: THE SCHOOL PAID OFF THE $6,500,000 BOND PAYABLE AS OF SEPTEMBER 30, 2014. THE FUNDS USED TO PAY OFF THE BOND PAYABLE INCLUDED CURRENT FUNDS, SMALL LOANS, CONTRIBUTIONS AND THE DEEDING OF THE SCHOOL'S REAL PROPERTY AND IMPROVEMENTS, AND FACILITIES TO AN LLC OWNED 50% BY AN INVESTOR AND 50% BY THE SCHOOL. PART II, LINE 2E: PERSON(S) INVOLVED: KONNI MCMURRAY, VICE-CHAIR OF SANDHILLS INDEPENDENT SCHOOL CORPORATION. PART II, LINE 2E: EXPLANATION OF INVOLVEMENT: KONNI MCMURRAY, IN ADDITION TO HER HUSBAND BRIAN, HAVE A 50% OWNERSHIP INTEREST IN ONS INVESTORS, LLC. SANDHILLS INDEPENDENT SCHOOL CORPORATION OWNS THE OTHER 50% INTEREST IN ONS INVESTORS, LLC. FORM 990, PART VI, SECTION A, LINE 2 LAURIE TREXLER, TREASURER, AND MICHAEL GUTSCHMIT, TRUSTEE, ARE BROTHER AND SISTER. FORM 990, PART VI, SECTION B, LINE 11 THE FINANCE COMMITTEE IS RESPONSIBLE FOR REVIEWING THE 990 PRIOR TO FILING ON BEHALF OF THE BOARD. AFTER REVIEW BY THE FINANCE COMMITTEE, A REPORT AND COPY OF THE 990 IS GIVEN TO THE ENTIRE BOARD BEFORE THE RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C TRUSTEES, OFFICERS, ADMINISTRATORS, FACULTY, STAFF AND OTHER EMPLOYEES HAVE AN OBLIGATION TO EXERCISE THEIR AUTHORITY AND TO CARRY OUT THE DUTIES OF THEIR RESPECTIVE POSITIONS FOR THE SOLE BENEFIT OF THE SCHOOL. WHERE POTENTIAL CONFLICTS OF INTEREST EXIST, IT SHALL BE THE RESPONSIBILITY OF THE PERSON INVOLVED OR ANY OTHER PERSON WITH KNOWLEDGE OF THE EVENT TO NOTIFY THE BOARD. THE BOARD WILL TAKE ACTION AS DEEMED APPROPRIATE. THE CONFLICT OF INTEREST POLICY IS REVIEWED AT LEAST ANNUALLY BY SCHOOL PERSONNEL. FORM 990, PART VI, SECTION B, LINE 15 THE HEADMASTER'S ORIGINAL COMPENSATION WAS SET AFTER REVIEWING PEER INFORMATION. AFTER ONE YEAR OF SERVICE TO THE SCHOOL AND ON AN ANNUAL BASIS THEREAFTER, THE EXECUTIVE COMMITTEE OF THE BOARD PERFORMS A REVIEW AND DECIDES ON SALARY ADJUSTMENT. TOP MANAGEMENT, WHICH IS CONSIDERED THE CFO, SERVES AT THE DISCRETION OF THE HEADMASTER. THUS, THE HEADMASTER DETERMINES THE COMPENSATION PACKAGE OF THIS POSITION. DESCRIPTION OF WHISTLEBLOWER POLICY: EVERY EMPLOYEE WHO FEELS A VIOLATION OF THE HANDBOOK HAS OCCURRED IS ENCOURAGED TO REPORT SUCH VIOLATION. THE EMPLOYEE IS ASKED TO SPEAK WITH HIS OR HER SUPERVISOR OR HEADMASTER OR OTHER DIRECTOR/MANAGER/SUPERVISOR HE OR SHE FEELS COMFORTABLE SPEAKING WITH. ALL DIRECTORS/MANAGERS/SUPERVISORS ARE REQUIRED TO REPORT ANY SUSPECTED VIOLATION TO THE HEADMASTER. THE HEADMASTER IS REQUIRED TO CONDUCT AN INVESTIGATION OF ALL REPORTED VIOLATIONS. ALL REPORTED AND INVESTIGATED CLAIMS ARE ALSO REPORTED TO THE EXECUTIVE COMMITTEE OF THE BOARD. VIOLATIONS MAY BE SUBMITTED ON A CONFIDENTIAL BASIS OR ANONYMOUSLY. FORM 990, PART VI, SECTION C, LINE 19 ALL REQUESTS FOR REVIEW OF THE ORGANIZATION'S GOVERNING DOCUMENTS AND 990 ARE DIRECTED TO THE HEADMASTER AND/OR CFO. FORM 990, PART XI, LINE 9: CHANGE IN MARKET VALUE OF INVESTMENTS -66,234. IN KIND CONTRIBUTION NOT REPORTABLE ON FORM 990 50,000. FORM 990, PART XII LINE 2C: FINANCE COMMITTEE METHODS AND SELECTION THE FINANCE COMMITTEE HAS NOT CHANGED ITS METHOD OF OVERSIGHT OR SELECTION PROCESS FROM THAT OF THE PRIOR YEAR. ONS INVESTORS LLC 25 CYPRESS POINT DRIVE PINEHURST NC 28374 471305234 REAL ESTATE LESSOR NC RELATED 0 -1626 3262249 0 0 1 0.50000