2013-05-15T08:59:36-05:00 2012-06-30 420714325 MCGLADREY LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2011-07-01 560530005 SALEM ACADEMY AND COLLEGE SALE 3367212615 601 S CHURCH ST WINSTONSALEM NC 27101 DEREK BRYAN 3367212615 2013-05-13 1 ADRIENNE MCKINNEY P00819656 3362724551 2011 2016-02-24 21:20:13Z DR SUSAN PAULY 601 S CHURCH ST WINSTONSALEM NC 27101 38411942 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. 32 32 838 82 0 0 5368289 7798471 22155839 25300670 1424437 3386178 1401751 1245859 30350316 37731178 9334098 11158247 0 0 12464899 13289262 0 0 721986 8832036 9459883 30631033 33907392 -280717 3823786 90112437 91726988 17756358 20139952 72356079 71587036 SEE SCHEDULE O. 0 0 26285011 11158247 22921041 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. 26285011 1 1 0 0 0 0 1 1 1 1 1 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 1 1525 0 1 838 1 0 0 0 0 0 0 0 0 0 0 X 32 32 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 1 0 X DEREK BRYAN 3369175472 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 0 0 0 ROBIAUN L CHARLES 1.00 X 0 0 0 ANN WILSON CRAMER 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 SALLIE CRAIG TUTON HUBER 1.00 X 0 0 0 STEPHEN G JENNINGS 1.00 X X 0 0 0 LEIGH FLIPPIN KRAUSE 1.00 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 NANCY TAYLOR SUMNER 1.00 X 0 0 0 GWYNNE STEPHENS TAYLOR 1.00 X X 0 0 0 RAMON VELEZ 1.00 X 0 0 0 JIANMIN WANG 1.00 X 0 0 0 WALLACE C WU 1.00 X 0 0 0 DEREK R BRYAN 40.00 X 105594 0 16802 SUSAN CALOVINI 40.00 X 57562 0 7779 WANDA R MOTSINGER 40.00 X 39551 0 10377 SUSAN ELIZABETH PAULY 60.00 X 196786 0 17249 VICKI W SHEPPARD 40.00 X 100856 0 13388 KARL J SJOLUND 40.00 X 114133 0 24038 614482 0 89633 4 0 1 0 ARAMARK SERVICES INC 601 S CHURCH ST BOX 11 WINSTON SALEM NC 27101 DINING SERVICES 1640328 KIEGER GRAPHIC COMMUNICATIONS 3735 KIMWELL DRIVE WINSTON SALEM NC 27103 PRINTING SERVICES 215971 RESOURCE PAINTING PO BOX 1428 YADKINVILLE NC 27055 PAINTING & REPAIRS 208703 FIRST AMERICAN EQUIPMENT FINANCE 1801 W OLYMPIC BLVD PASADENA CA 91199 EQUIPMENT LEASING 177890 BARNES & NOBLE COLLEGE BOOKSELLERS PO BOX 823660 PHILADELPHIA PA 19182 BOOK STORE OPERATION 136233 5 855763 6942708 40305 7798471 TUITION AND FEES 611710 18511609 18511609 FOOD SERVICES 611710 3565427 3565427 HOUSING REVENUE 611710 3209925 3209925 BOOK STORE REVENUE 611710 13709 13709 25300670 1175225 1175225 124650 64589 60061 60061 60061 2827128 616175 2210953 2210953 2210953 OTHER REVENUE 611710 745382 745382 GOVERNOR'S SCHOOL 611710 296969 296969 COMMUNITY SERVICE 611710 143447 143447 1185798 37731178 22921041 0 7011666 11158247 11158247 642549 444038 198511 10246833 7443649 2492472 310712 423862 315928 94795 13139 1228600 679417 502066 47117 747418 530974 179707 36737 20771 20771 105514 105514 137302 137302 303300 120713 182587 452209 311831 115733 24645 636904 317010 313768 6126 434761 201252 214399 19110 10000 10000 7712 7712 357004 316581 25236 15187 461483 461483 1719625 1375700 343925 270113 270113 CONTRACTS - FOOD SERVIC 1428123 1428123 UTILITIES 840910 672728 168182 REPAIRS & MAINTENANCE 750367 600294 150073 MISCELLANEOUS 660367 354748 305619 863418 440104 372612 50702 33907392 26285011 6900395 721986 2005862 2330092 2238402 4631987 358949 446665 303552 215790 1283468 1303173 56791268 32430084 23206566 24361184 42640310 41322331 8064704 7468919 10010624 9646847 90112437 91726988 1430662 1371523 671305 568251 14000000 13500000 177818 257309 2397449 1476573 2045420 17756358 20139952 X 5816465 4185225 15395176 14819901 51144438 52581910 72356079 71587036 90112437 91726988 X 3823786 -4592829 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 1 1 0 1 1 20.00 1500 1 X X X 0 0 1 52844007 1805618 -389170 2670112 51590343 45553433 1466429 9077612 3253467 52844007 42688892 1645876 4332568 3113903 45553433 56807530 1765944 -13129433 2755149 42688892 0.04000 0.82000 0.14000 1 0 1169584 1169584 39023114 39023114 16214976 16214976 383594 32430084 -32046490 24361184 PRIVATE EQUITY INVESTMENTS 7468919 F 7468919 SPLIT INTEREST AGREEMENTS 9646847 9646847 LIABILITIES UNDER SPLIT INTEREST AGREEMENTS 283884 REVOLVING PERKINS LOAN 243799 INTEREST RATE SWAP LIABILITY 1517737 2045420 37731178 33907392 3823786 -3622375 -970454 -4592829 -769043 21907389 -3622375 -12128701 -15751076 37658465 137302 -64589 72713 37731178 22676432 64589 64589 22611843 137302 11158247 11295549 33907392 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 PROGRAM ACTIVITIES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: 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 CONSOLIDATED FINANCIAL STATEMENTS. MANAGEMENT EVALUATED THE COLLEGE'S TAX POSITIONS AND CONCLUDED THAT THE COLLEGE 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 FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") ACCOUNTING STANDARDS CODIFICATIONS ("FASB ASC"). WITH FEW EXCEPTIONS, THE COLLEGE IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE, OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2009. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -352,017. LOSS ON INTEREST RATE SWAP -618,437. TOTAL TO SCHEDULE D, PART XI, LINE 8: -970,454. FORM 990, SCHEDULE D, PART XII, LN 2D, OTHER ADJUSTMENTS: CHANGE IN TRUST VALUE AND SPLIT INTERESTS - (352,017) LOSS ON INTEREST RATE SWAP - (618,437) RECLASS GRANTS AND SCHOLARSHIPS TO EXPENSES - (11,158,247) FORM 990. SCHEDULE D, PART XII, LN 4B, OTHER ADJUSTMENTS: RECLASS RENT EXPENSE - (64,589) FORM 990, SCHEDULE D, PART XIII, LN 2D, OTHER ADJUSTMENTS: RECLASS RENT EXPENSE - 64,589 FORM 990, SCHEDULE D, PART XIII, LN 4B, OTHER ADJUSTMENTS: RECLASS GRANTS AND SCHOLARSHIPS TO EXPENSES - 11,158,247 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 PELL GRANTS, FEDERAL DIRECT STUDENT LOANS, NC LEGISLATIVE TUITION GRANTS, AND NC STATE CONTRACTUAL SCHOLARSHIPS. SCHEDULE E, LINE 3 - EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION: THE NONDISCRIMINATORY POLICY IS INCLUDED ON MARKETING MATERIALS AND EMPLOYMENT ADVERTISEMENTS FOR THE SCHOOL. 1 SCHOLARSHIPS 1089 11158247 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 0 0 X X X 0 0 0 0 0 0 0 0 0 SUSAN ELIZABETH PAULY 196657 0 0 0 129 0 8333 0 8916 0 214035 0 0 0 NC CAPITAL FACILITIES FINANCE AGENCY 2005-01-01 15000000 FACILITIES RENOVATION 0 0 0 15000000 15000000 2008 0 0 1 1 0 0 0 0 1 0 1 1 BB&T 10.000000000000 0 0 0 0 0 X 1 0 X 0 X 0 X 3 40105 FMV X FOOD & DRINKS FOR EVENT 2 0 X AUCTION ITEMS 1 0 X FLOWERS 1 0 X PIANO 2 0 X BUILDING IMPROVEMENTS 1 0 0 0 1 THIRD PARTY USE: PART I, LINE 32B: CONTRIBUTIONS OF SECURITIES ARE SOLD BY A LICENSED BROKER. NON REPORTING OF REVENUE: PART I, LINE 33: NONCASH CONTRIBUTIONS OTHER THAN SECURITIES ARE NOT BOOKED TO REVENUE. FORM 990, PART VI, SECTION B, LINE 11 THE 990 PROCESS IS OVERSEEN BY SALEM'S AUDIT COMMITTEE. THE CFO WORKS WITH THE TAX PREPARER TO COMPLETE THE RETURN. IT IS REVIEWED BY THE AUDIT COMMITTEE, AND THEN SENT TO THE FULL BOARD BEFORE FILING. 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 5: NET UNREALIZED LOSSES ON INVESTMENTS: -3,622,375. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -352,017. LOSS ON INTEREST RATE SWAP -618,437. TOTAL TO FORM 990, PART XI, LINE 5: -4,592,829. 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