2013-02-11T10:07:19-06:00 2012-06-30 KPMG LLP 210 Park Ave Suite 2850 Oklahoma City OK 73102 990 2011-07-01 850129165 ALBUQUERQUE ACADEMY % BRENT WHEELIS ALBU 5058283200 6400 WYOMING BLVD NE ALBUQUERQUE NM 871093899 GARY GORDON 5058283200 2013-02-07 true 4052396411 2011 2016-02-25 16:41:14Z ANDREW T WATSON 6400 WYOMING BLVD NE ALBUQUERQUE NM 871093899 22518447 false X WWW.AA.EDU X 1955 NM ALBUQUERQUE ACADEMY (" THE ACADEMY") IS A NON-DENOMINATIONAL, COEDUCATIONAL, INDEPENDENT DAY SCHOOL SERVING 1,129 STUDENTS IN GRADES 6 THROUGH 12, AS OF JUNE 30, 2012. SEE SCHEDULE O,GENERAL STMT 1 19 19 957 573 -28085 -28085 2163076 2577180 24270129 25158795 8374618 6034094 -1820 -31208614 34806003 2561455 4533127 5142582 0 0 21991661 23303174 0 82973 951521 12909232 10442256 39434020 38970985 -4628017 -36409530 170456659 132852980 46771358 50746236 123685301 82106744 X SEE SCHEDULE O, GENERAL STATEMENT 2 false false 25952166 5141172 20791402 SEE SCHEDULE O, GENERAL STATEMENT 3 1758958 1410 1967977 SEE SCHEDULE O, GENERAL STATEMENT 3 762955 0 1323786 SEE SCHEDULE O, GENERAL STATEMENT 4 1764408 0 1075630 30238487 true true false false false false false true false true true true false false true true true false true false false false false true true false false false true true true false false false false false false false false true false true false false false false true true true false false true X 108 0 true 957 true true true false false false false true true false false false false X 19 19 false false false false false false false true true false false false true true true true true true true false AZ ID NM NY X BRENT WHEELIS 5058283231 6400 WYOMING BLVD NE ALBUQUERQUE NM 871093899 X WALTER E STERN III 5.0 X 0 0 0 SARAH KOTCHIAN 2.0 X 0 0 0 RANDAL H TALBOT 2.0 X 0 0 0 PAM GARRETT 2.0 X 0 0 0 THOMAS J BACA 2.0 X 0 0 0 THOMAS SMIDT 2.0 X 0 0 0 TRACY SMALL 2.0 X 0 0 0 NAOMI GABEL FINDLEY 2.0 X 0 0 0 JENNIFER DAVIS HALL 2.0 X 0 0 0 HEIDI HEARD 2.0 X 0 0 0 SANDRA RICCI 2.0 X 0 0 0 RONALD W MOYA 2.0 X 0 0 0 ANDREW HSI 2.0 X 0 0 0 KAREN KNAUF 2.0 X 0 0 0 IAN MCKINNON 2.0 X 0 0 0 JOLYNN MURAIDA 2.0 X 0 0 0 VALERIE ROMERO-LEGGOT 2.0 X 0 0 0 GARY SLACK 2.0 X 0 0 0 HOPE MEAD WYNN 2.0 X 0 0 0 ANDREW T WATSON 40.0 X 337095 0 34811 GARY GORDON 40.0 X 225353 0 39528 DON SMITH 40.0 X 143342 0 25053 NANCY PARKER 40.0 X 111724 0 15175 JEFFREY MORGAN 40.0 X 107882 0 18466 PAMELA SCANLON 40.0 X 105365 0 21261 MICHAEL LINSELL 40.0 X 102926 0 21257 1133687 0 175551 9 false true false BLUE CROSS BLUE SHIELD OF NEW MEXIC PO BOX 1186 CHICAGO IL 60690 HEALTH INS.- MEDICAL 1879540 ENERGY CONTROL INC 2600 AMERICAN ROAD SE SUITE 360 RIO RANCHO NM 87124 SECURTIY & ENERGY 1540954 RC ENERGY AA LLC C/O MB FINANCIAL BANK PO BOX 743 CHICAGO IL 60690 RENEWABLE ENERGY 477577 MANUAL LUJAN AGENCIES 4801 INDIAN SCHOOL RD ALBUQUERQUE NM 871903727 INSURANCE BROKER 303048 DELTA DENTAL PLAN OF NEW MEXICO PO BOX 27678 ALBUQUQUERQUE NM 871257678 HEALTH INS.- DENTAL 276551 14 43560 211556 2322064 206797 2577180 TUITION & FEES 900099 20791402 20791402 SUMMER SCHOOL/OUTREACH 900099 1967977 1967977 FOOD SERVICES 900099 1323786 1323786 BOOKSTORE 900099 556641 556641 CHARGER AQUATICS 900099 314188 314188 204801 204801 25158795 5183529 0 -28085 5211614 0 0 20787049 19936484 850565 850565 850565 17970 43560 20508 -2538 -2538 0 0 IMPAIRMENT OF INVESTMENT IN HDIC 900099 -19379938 -19379938 IMPAIRMENT OF MARIPOSA REAL ESTATE 900099 -6035123 -6035123 ASSUMPTION OF HDIC NOTE PAYABLE 900099 -4000000 -4000000 -1791015 -1791015 -31206076 2561455 25158795 -28085 -25146435 0 5142582 5142582 0 0 676452 272807 364673 38972 70852 70852 16705768 14778028 1507622 420118 1256913 1107203 118478 31232 3349551 3062114 237790 49647 1243638 1102634 110775 30229 0 31728 31728 125500 125500 0 82973 82973 378440 378440 179281 174185 4157 939 236065 40803 151680 43582 354565 171712 122939 59914 327489 327489 0 973484 918543 54212 729 286299 242460 12578 31261 0 392421 231040 16296 145085 1835701 1835701 0 2225799 2225799 161663 107796 50907 2960 SUMMER SCH./FOOD SER./BOOK 1131412 1131412 INSTRUCTIONAL/STU. ACTIVITY 1026538 1026538 MAINTENANCE & GROUNDS 527933 527933 ADMINISTRATIVE 179337 70764 94693 13880 68601 59081 9520 38970985 30238487 7780977 951521 4651740 2808152 6125199 3373574 146567 943994 1243139 497380 0 0 0 0 0 2000 180748 266626 692309 645094 78369798 45480826 31993396 32888972 67207785 58303421 57114751 32207575 0 0 0 0 1101025 916192 170456659 132852980 2427668 2383408 0 0 1262233 1360995 37270984 37227532 0 0 0 0 0 4000000 5466140 5466140 344333 308161 46771358 50746236 X 84316414 43341943 22682261 20922491 16686626 17842310 123685301 82106744 170456659 132852980 X -36409530 -5169027 X X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 177494 X X false 126002365 1087464 -26611969 0 8312731 1283937 90881192 131182768 229222 6215947 0 10799680 825892 126002365 181487718 1258417 -35400594 0 12137729 4025044 131182768 244608876 516520 -55419476 0 13829914 -5611712 181487718 0.61100 0.19600 0.19300 true false 397024 397024 61970235 32969470 29000765 0 0 0 10940283 9514867 1425416 5062257 2996490 2065767 32888972 PARTNERSHIP INVESTMENTS 15467844 F SANDOVAL COUNTY REAL ESTATE 12525000 F ASSETS HELD IN TRUST BY OTHERS 4141612 F OTHER INVESTMENTS 44318 F DONA ANA COUNTY REAL ESTATE 28801 F 32207575 0 ANNUITY & OTHER SPLIT INTEREST 308161 308161 2561455 38970985 -36409530 -5169027 -5169027 -41578557 28348558 -5169027 -5169027 33517585 270454 -31226584 -30956130 2561455 69927115 31206076 31206076 38721039 270454 -20508 249946 38970985 SCHEDULE D, PART III, LINE 4 THE ACADEMY MAINTAINS A SMALL ART COLLECTION CONSISTING OF ITEMS DONATED TO THE SCHOOL OVER APPROXIMATELY THE PAST 25 YEARS. INCLUDED IN THIS COLLECTION IS A SERIES OF PHOTOGRAVURES, A FLEMISH TAPESTRY, AND SEVERAL OIL PAINTINGS (INCLUDING PORTRAITS OF MR. & MRS. SIMMS, MAJOR DONORS TO THE ACADEMY). THE ART COLLECTION IS CURRENTLY DISPLAYED IN VARIOUS VENUES ACROSS CAMPUS FOR THE EDIFICATION OF OUR STUDENTS AS WELL AS FOR THE ENJOYMENT OF VISITORS TO OUR CAMPUS. IT IS ANTICIPATED THAT ITEMS WITHIN THE COLLECTION WILL GROW IN VALUE OVER TIME AND MAY EVENTUALLY BE SOLD TO SUPPORT VARIOUS PROGRAMS AND INITIATIVES BENEFITING THE ACADEMY'S STUDENTS. SCHEDULE D, PART V, LINE 4 ALBUQUERQUE ACADEMY'S ENDOWMENT, CONSISTING OF PERMANENT FUNDS AND A QUASI-ENDOWMENT FUND, PROVIDES VITAL FINANCIAL SUPPORT FOR THE OVERALL MISSION OF THE ACADEMY. THE ENDOWMENT SUSTAINS OPPORTUNITIES OF REMARKABLE SCOPE, INCLUDING EXPERIENTIAL AND OUTDOOR EDUCATION, DEEP ACADEMIC EXCELLENCE, GLOBAL EXCHANGES AND LANGUAGES AND SUSTAINABILITY INITIATIVES CLOSELY ATTUNED TO OUR CHANGING WORLD. THESE PROGRAMS MAKE THE STUDENT EXPERIENCE HERE ONE OF THE BROADEST IN INDEPENDENT EDUCATION. THE ENDOWMENT ALSO SUPPORTS OUR UNIQUE ADMISSION PROCESS AND GENEROUS FINANCIAL AID PROGRAM. THESE PROGRAMS ARE COMMITTED TO PROVIDING ACCESS TO THE ACADEMY FOR STUDENTS OF TALENT AND CHARACTER FROM THROUGHOUT THE CITY, REGION, AND (AT TIMES) COUNTRY AS THEY SEEK AN ENRICHED AND MEANINGFUL EDUCATIONAL EXPERIENCE. THE ACADEMY'S ENDOWMENT SUPPORTS OUR OUTREACH PROGRAMS ACROSS CAMPUS EVENTS. OUR EVENING COMMUNITY ACADEMY CLASSES AND LECTURES, CHARGER AQUATICS PROGRAM, SUMMER SESSION, AND ARTISTIC, ATHLETIC, AND VOLUNTEER EVENTS ON CAMPUS ALL EXEMPLIFY OUR COMMUNITY OUTREACH AND THE ACADEMY'S BELIEF IN LIFE-LONG LEARNING. FOR THE CURRENT YEAR, THE ACADEMY HAS CHANGED THE PRESENTATION OF THE ENDOWMENT FUND ROLLFORWARD TO MORE ACCURATELY ALIGN WITH THE FORM INSTRUCTIONS. FOR THE PRIOR YEARS DISCLOSED, THE ACADEMY HAS CHANGED THE PRESENTATION TO BE CONSISTENT AND COMPARABLE WITH THE CURRENT YEAR PRESENTATION, AS SUCH THE PRIOR YEAR AMOUNTS WILL APPEAR TO BE DIFFERENT IF COMPARED TO PRIOR FORM 990 FILINGS OF THE ACADEMY. AS A RESULT OF THIS CHANGE LINE 1(F) NOW APPROPRIATELY REFLECTS THE NET AMOUNTS THAT WERE TRANSFERRED (TO) FROM THE ENDOWMENT FUND FROM THE ACADEMY'S CURRENT FUND. SCHEDULE D, PART X, LINE 2 THE ACADEMY'S INCOME TAX FOOTNOTE CONTAINS A DESCRIPTION OF THE REQUIREMENTS OF ASC 740 - INCOME TAXES. THE FOOTNOTE IN THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 CONTAINS THE FOLLOWING: THE ACADEMY IS A NOT-FOR-PROFIT ORGANIZATION AND QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). IN 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB), ISSUED AUTHORITATIVE GUIDANCE RELATING TO THE ACCOUNTING FOR THE UNCERTAINTY IN INCOME TAXES, WHICH WAS EFFECTIVE FOR THE ACADEMY FOR THE YEAR ENDED JUNE 30, 2012. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). THE GUIDANCE ALSO REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE ACADEMY'S INFORMATION RETURN TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE-LIKELY-THAN-NOT" OF BEING SUSTAINED BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD WOULD BE RECORDED AS A TAX BENEFIT OR EXPENSE IN THE CURRENT YEAR. IN ADDITION, GUIDANCE ON DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE, AND TRANSITION WAS ALSO PROVIDED. AS OF JUNE 30, 2012, THE ACADEMY PERFORMED A COMPREHENSIVE REVIEW OF OUR MATERIAL TAX POSITIONS IN ACCORDANCE WITH RECOGNITION AND MEASUREMENT STANDARDS ESTABLISHED BY GAAP. AS A RESULT OF THESE REVIEWS, THE ACADEMY QUALIFIED AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE IRC AND HAD NO UNREPORTED INCOME DERIVED FROM UNRELATED BUSINESS ACTIVITIES. ADDITIONALLY, THE ACADEMY DID NOT IDENTIFY ANY ENTITY LEVEL TAX POSITIONS THAT WOULD NOT MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD. SCHEDULE D, PART XII, LINE 4B RECONCILIATION OF REVENUE PER AUDITED FINANCIAL STATEMENTS WITH REVENUE PER RETURN IMPAIRMENT OF INVESTMENT IN HDIC $19,379,938 IMPAIRMENT OF MARIPOSA REAL ESTATE $ 6,035,123 ASSUMPTION OF HDIC NOTE PAYABLE $ 4,000,000 NET LOSS OF HDIC $ 1,791,015 SKIP PORTER EXPENSES $ 20,508 -------------- $31,226,584 ============== THE IMPAIRMENT OF INVESTMENT IN HDIC, IMPAIRMENT OF MARIPOSA REAL ESTATE, ASSUMPTION OF HDIC NOTE PAYABLE, AND NET LOSS OF HDIC ARE DISCUSSED IN DETAIL IN SCHEDULE O, GENERAL STATEMENT 10, UNDER THE HEADING PART VIII - STATEMENT OF REVENUE, FOR FURTHER DISCUSSION. THE SKIP PORTER EXPENSES RELATE TO EXPENSES INCURRED FOR THE ANNUAL SKIP PORTER MEMORIAL GOLF TOURNAMENT FUNDRAISING EVENT THAT THE ACADEMY HOSTS. UNDER GAAP THESE EXPENSES ARE CLASSIFIED AS AN EXPENSE AND DO NOT NET AGAINST REVENUE. SCHEDULE D, PART XIII, LINE 4B PART XIII - RECONCILIATION OF EXPENSES PER AUDITED FINANCIAL STATEMENTS WITH EXPENSES PER RETURN THE OTHER AMOUNT OF $(20,508) THAT IS REFLECTED IN THIS RECONCILIATION REPRESENTS THE EXPENSES INCURRED BY THE ACADEMY FOR THE ANNUAL SKIP PORTER MEMORIAL GOLF TOURNAMENT FUNDRAISING EVENT. UNDER GAAP THESE EXPENSES ARE CLASSIFIED AS EXPENSE ON THE STATEMENT OF REVENUE. FOR FORM 990 PRESENTATION THESE AMOUNTS ARE RECLASSIFIED TO THE FORM 990 STATEMENT OF REVENUE AND NETTED AGAINST THE ASSOCIATED INCOME FOR THE FUNDRAISING EVENT. true true true true true true true false false false false false false false false true false true PART I, LINE 3 ALBURQUERQUE ACADEMY PUBLISHES ITS NON-DISCRIMINATION STATEMENT IN THE FOLLOWING METERIALS: 1. SCHOOL MAGAZINE "THE CURRENT" (ANUALLY) 2. ADMISSION BROCHURE 3. ADMISSION VIEW BOOK 4. ADMISSION/FINANCIAL AID FORMS 5. COLLEGE PROFILE GUIDE 6. SUMMER SESSION CATALOGUE 7. NEW PARENT GUIDEBOOK 8. POSTED ON THE ACADEMY'S WEBSITE ON THE EMPLOYMENT PAGE 9. ALBUQUERQUE JOURNAL (ANUALLY) PART I, LINE 6A THE ACADEMY RECEIVES FUNDS FROM THE FEDERAL GOVERNMENT IN THE FORM OF THE NATIONAL SCHOOL LUNCH PROGRAM AND FROM THE STATE OF NEW MEXICO IN THE FORM OF AN ALLOCATION OF FUNDS FOR THE BENEFIT OF CHILDREN TO ASSIST IN THE PURCHASE OF TEXTBOOKS. THE ALBUQUERQUE ACADEMY EDUCATIONAL FOUNDATION IS AN ENTITY WHOSE PRINCIPAL PURPOSE IS TO SUPPORT THE NEW MEXICO MEMBER SCHOOLS OF THE INDEPENDENT SCHOOLS ASSOCIATION OF THE SOUTHWEST. THE FOUNDATION IS OPERATED, SUPERVISED, AND CONTROLLED BY THE ACADEMY. EFFECTIVE JULY 1, 2009, THE FOUNDATION SUSPENDED THE AWARDING OF GRANTS UNTIL SUCH TIME AS ECONOMIC CONDITIONS MAKE IT FEASIBLE TO RESUME THE AWARDS. NO GRANTS WERE AWARDED DURING THE TAX YEAR ENDED JUNE 30, 2012. X X X X X true CAMPBELL COMPANY LAGUNA BEACH CA 1278 GLENNEYRE STREET 401 LAGUNA BEACH CA 92651 LAUNCH CAMPAIGN false 0 82973 -82973 0 82973 -82973 GOLF TOURN. 61530 43560 17970 1400 24 15040 2623 1421 0 61530 43560 17970 1400 24 15040 2623 1421 20508 -2538 true FINANCIAL AID FOR ACADEMY STUDENTS 353 5142582 N/A SUPPLEMENTAL INFORMATION SCHEDULE I PART 1, LINE 2: FINANCIAL AID IS AWARDED BASED SOLELY UPON DEMONSTRATED FINANCIAL NEED. A FAMILY'S NEED IS ASSESSED THROUGH A COMPREHENSIVE SCREENING PROCESS. THE PROCESS REQUIRES THAT THE FAMILY COMPLETE AN APPLICATION AND PROVIDE THE ACADEMY WITH A FULL SET OF TAX RETURNS INCLUDING ALL SUPPORTING SCHEDULES. TO DETERMINE THE APPROPRIATE GRANT, THE ACADEMY UTILIZES A STANDARD METHODOLOGY PROVIDED BY SCHOOL AND STUDENT SERVICES (SSS) AND WHICH IS USED BY INDEPENDENT SCHOOLS NATIONWIDE. THIS METHODOLOGY CALCULATES A CONTRIBUTION FOR EACH INDIVIDUAL FAMILY BASED UPON THE FAMILY'S SPECIFIC FINANCIAL SITUATION AND DISCRETIONARY INCOME. PRIOR TO MAKING ANY AWARD, EACH APPLICANT'S FILE AND PROPOSED AWARD IS CAREFULLY REVIEWED BY A COMMITTEE TO ENSURE THE DECISIONS ARE BASED ON CONSISTENT APPLICATION OF NEED BASED CRITERIA. FINANCIAL AID IS AWARDED FOR ONE YEAR ONLY; APPLICANTS MUST REAPPLY ANNUALLY BY SUBMITTING A NEW APPLICATION AND CURRENT TAX DOCUMENTATION. IN ADDITION TO A COMMITTEE REVIEW OF EACH AWARD, THE FINANCIAL AID OFFICE OF THE ACADEMY CONDUCTS A RANDOM AUDIT OF FILES ANNUALLY AS ANOTHER MEASURE TO ENSURE THAT ALL FINANCIAL AID IS BEING AWARDED APPROPRIATELY AND WITH THE PROPER SUPPORTING DOCUMENTATION. ON A MONTHLY BASIS, THE BUSINESS OFFICE OF THE ACADEMY COMPARES THE FINANCIAL AID SUBSIDIARY LEDGER POSTINGS TO A LIST OF AID AWARDS PROVIDED BY THE FINANCIAL AID OFFICE OF THE ACADEMY TO ENSURE THERE ARE NO DISCREPANCIES BETWEEN THE TWO AMOUNTS. ANY DISCREPANCIES ARE PROMPTLY RESEARCHED AND RESOLVED. X X X X X X false false false false false false false false false ANDREW T WATSON 297095 0 40000 0 0 0 24500 0 10311 0 371906 0 0 0 GARY GORDON 190353 0 35000 0 0 0 11612 0 27916 0 264881 0 0 0 DON SMITH 143342 0 0 0 0 0 14741 0 10312 0 168395 0 0 0 VILLAGE OF LOS RANCHOS DE ALBUQUERQUE 850236091 545610AR8 2010-09-21 37303574 SEE SCHEDULE O false false false 0 0 37303574 3305583 0 0 413341 0 0 0 33584650 0 2010 true false false true false false false false 0.00000 0.00000 0.00000 true false false false 0 false 0 false false X CAROL WATSON SPOUSE OF HEAD OF SCHOOL 65245 2011 FORM W-2 SALARY (BOX 5) false X 10 206797 SELLING PRICE 0 false true true PART I, LINE 32B THE ACADEMY USES THE SERVICES OF MERRILL LYNCH TO LIQUIDATE THE NONCASH CONTRIBUTIONS WITHIN SEVERAL DAYS OF THE CONTRIBUTION BEING MADE. GENERAL STATEMENT 1 FORM 990 PART I, LINE 1 MISSION STATEMENT THE ACADEMY WAS THE FORTUNATE RECIPIENT OF A TRANSFORMATIONAL GIFT OF LAND IN THE EARLY SIXTIES AND, FITTINGLY, HAS CHOSEN TO USE THIS GIFT TO ENSURE ECONOMIC ACCESSIBILITY TO STUDENTS LIVING THROUGHOUT THE CITY OF ALBUQUERQUE AND THE REGION. TODAY THE ACADEMY OFFERS STUDENTS AN EDUCATION THAT IS WITHOUT EQUAL IN THE SOUTHWEST. STUDENTS FROM 90 SCHOOLS SHARE AN INSATIABLE CURIOSITY AND ARE SERVED BY TEACHERS WHO DELIVER THEIR EXPERTISE IN CREATIVE AND ENGAGING WAYS. STUDENTS IN THE 6/7 DIVISION FOLLOW A NON-TRADITIONAL SCHEDULE THAT ALLOWS FOR TEACHING FLEXIBILITY AND ADAPTABILITY IN AN EVER-CHANGING WORLD. STUDENTS IN THE 8/9 DIVISION ARE GIVEN THEIR OWN CAMPUS SPACE AND THEIR OWN ACCOUNTABILITY TO HELP THEM GROW INTO CONFIDENT YOUNG ADULTS. FOR THE 10/12 DIVISION, COURSE WORK INVOLVES INCREASINGLY PHILOSOPHICAL AND ANALYTICAL THOUGHT. ACADEMY STUDENTS SERVE THE COMMUNITY TO WHICH THEY BELONG, COMPETE IN A VARIETY OF COMPETITIVE SPORTS AND PARTICIPATE IN A VARIETY OF ACADEMIC CLUBS AND STUDENT ORGANIZATIONS. MOST ACADEMY STUDENTS ATTEND FOUR-YEAR COLLEGES AND UNIVERSITIES UPON GRADUATION, MANY OF THEM ENROLLING AT SOME OF THE BEST UNIVERSITIES IN THE COUNTRY. ADMISSION TO THE ACADEMY IS COMPETITIVE; APPROXIMATELY ONE-THIRD OF THOSE WHO APPLY ARE OFFERED ADMISSION. FOR THE 2011-2012 SCHOOL YEAR, THE STUDENT BODY CONSISTED OF 47.7% BOYS AND 52.3% GIRLS, 49.2% ARE STUDENTS OF COLOR AND 31.3% RECEIVED APPROXIMATELY $5.1 MILLION IN FINANCIAL AID. FINANCIAL AID IS BASED ON DEMONSTRATED FINANCIAL NEED; ONLY AFTER STUDENTS ARE ADMITTED AND THEIR NEEDS ARE ASSESSED AND FINANCIAL AID IS OFFERED. GENERAL STATEMENT 2 FORM 990 PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION WE BELIEVE THAT CHILDREN'S LIVES CHANGE WHEN THEIR NATURAL PASSION FOR LEARNING IS NURTURED AND TRANSFORMED INTO HABITS OF LIFE-LONG LEARNING AND REFLECTION. WE BELIEVE THAT THE WORLD CHANGES AS THESE CHILDREN LEARN TO SERVE COUNTRY AND COMMUNITY WITH WISDOM, CONVICTION, AND COMPASSION. IN LIGHT OF THESE BELIEFS: WE SERVE STUDENTS OF TALENT AND CHARACTER, OFFERING THEM AN EDUCATION THAT BROADENS THEIR PERSPECTIVE, SHARPENS THEIR MINDS, STRENGTHENS THEIR BODIES, AND ENGAGES THEIR HEARTS. WE COMMIT TO CREATING A CARING, INCLUSIVE, AND JUST COMMUNITY, USING THE GEOGRAPHY AND CULTURE OF OUR HOME IN THE SOUTHWEST TO ENRICH OUR EDUCATIONAL PROGRAMS AND TO FOSTER CREATIVITY, PERSONAL BALANCE AND A CONNECTION TO THE NATURAL WORLD. WE DEVOTE OUR RESOURCES TO ENSURE ECONOMIC ACCESSIBILITY TO OUR STUDENTS AND TO SUPPORT THE WIDER COMMUNITY THROUGH OUTREACH AND COMMUNITY SERVICE. WE ENTRUST THIS MISSION TO OUR GRADUATES AND SUCCESSORS AS WE PRESERVE OUR RESOURCES AND SERVE THE CHILDREN OF GENERATIONS TO COME. GENERAL STATEMENT 3 FORM 990 PART III, LINE 4A-4B, PROGRAM SERVICE ACCOMPLISHMENTS LINE 4A: THE ACADEMY OPENED ITS DOORS IN THE FALL OF 1955 WITH 12 BOYS IN GRADES 7 THROUGH 9, TWO TEACHERS, AND FOUNDING HEAD WILLIAM B.S. WILBURN. CLASSES WERE HELD IN RENTED SPACE IN THE PARISH HALL OF ST. MICHAEL'S AND ALL ANGELS CHURCH. IN 1957, ENROLLMENT HAD GROWN TO 75 BOYS AND THE SCHOOL MOVED TO A 27-ACRE SITE ON NORTH EDITH BOULEVARD IN ALBUQUERQUE, NM. THE FIRST CLASS OF SEVEN BOYS GRADUATED IN 1960. IN 1966, THE SCHOOL MOVED TO ITS PRESENT LOCATION, AND IN 1967-68 WAS HOME TO 405 BOYS. GIRLS WERE ADMITTED IN GRADES 9-12 IN 1973. FOR THE SCHOOL YEAR 2011-2012, THE ACADEMY SERVED 1,129 GIRLS AND BOYS IN GRADES 6 THROUGH 12. THE ACADEMY'S REMARKABLE GROWTH WAS MADE POSSIBLE LARGELY THROUGH THE TRANSFORMATIONAL GIFT OF ALBERT G. SIMMS, A NEW MEXICO FINANCIER AND RANCHER, AND HIS WIFE, RUTH HANNA MCCORMICK SIMMS. IN THE EARLY 1960'S MR. AND MRS. SIMMS GAVE OR BEQUEATHED TO THE ACADEMY (IN TRUST) MORE THAN 12,000 ACRES OF UNDEVELOPED LAND AND 8,000 SHARES OF ALBUQUERQUE NATIONAL BANK (NOW BANK OF AMERICA) STOCK. MOST OF THE UNDEVELOPED LAND HAS BEEN SOLD OVER THE PAST THREE DECADES RESULTING IN THE ENDOWMENT THAT TODAY ENABLES EDUCATION IN A BEAUTIFUL AND UPLIFTING ENVIRONMENT. THE UNIQUENESS OF THE ACADEMY IS DUE, IN LARGE PART, TO ITS COMMITMENT TO A NEED-BLIND ADMISSION POLICY, PROVIDING ACCESSIBILITY TO QUALIFIED STUDENTS FROM THROUGHOUT THE GREATER ALBUQUERQUE COMMUNITY. ONLY AFTER STUDENTS HAVE BEEN CHOSEN ARE THEIR TUITION NEEDS ASSESSED AND FINANCIAL AID OFFERED. EVERY ACADEMY STUDENT BENEFITS FROM THE SCHOOL'S COMMITMENT TO ACCESSIBILITY AND AFFORDABILITY. DIRECT SUPPORT FROM THE ENDOWMENT COVERS 25% OF THE COST NOT COVERED BY TUITION. A FURTHER COMMITMENT OF THE ACADEMY IS TO DIVERSITY AND DEDICATING THE SCHOOL'S RESOURCES TO CREATING AN ENVIRONMENT IN WHICH ALL STUDENTS CAN THRIVE. IT IS THE RESPONSIBILITY OF ALL THE SCHOOL'S CONSTITUENTS TO MAKE THIS ENVIRONMENT CONDUCIVE TO LEARNING AND TO FOSTER MUTUAL RESPECT FOR ONE ANOTHER. THE ACADEMY STUDENT BODY CONSISTED OF 1,129 STUDENTS FOR THE 2011-2012 SCHOOL YEAR. STUDENTS OF COLOR (INCLUDING STUDENTS OF MIDDLE EASTERN, HISPANIC, AFRICAN AMERICAN, ASIAN AND NATIVE AMERICAN ANCESTRY) REPRESENTED 49.2% OF THE TOTAL STUDENT POPULATION FOR THE 2011-2012 SCHOOL YEAR. APPRECIATION FOR DIVERSITY IS ALSO EXTENDED TO THOSE OF VARIOUS SOCIOECONOMIC LEVELS. THE ACADEMY HAS CHOSEN TO VOLUNTARILY PARTICIPATE IN THE USDA'S NATIONAL SCHOOL LUNCH PROGRAM WHICH PROVIDES NUTRITIONALLY BALANCED, LOW-COST OR FREE BREAKFASTS AND LUNCHES TO STUDENTS EACH SCHOOL DAY, SEE ADDITIONAL DISCUSSION IN 4C - FOOD SERVICES BELOW. ACADEMY STUDENTS BENEFIT ACADEMICALLY FROM SMALL CLASSES (AVERAGING 16 STUDENTS IN THE 6/7 DIVISION TO 15 IN THE 10/12 DIVISION) AND A TEACHER-TO-STUDENT RATIO OF 1:9. 311 STUDENTS TOOK AN ADVANCED PLACEMENT EXAM IN MAY 2012. OF THESE STUDENTS, 73% RECEIVED SCORES OF 4 OR 5, AND 91% RECEIVED A SCORE OF 3 OR ABOVE. THE CLASS OF 2012 HAD 33 NATIONAL MERIT SCHOLARSHIP SEMIFINALISTS, 14 COMMENDED STUDENTS AND 16 NATIONAL HISPANIC SCHOLARS. ALMOST ALL ACADEMY GRADUATES ENROLL IN FOUR-YEAR COLLEGES IMMEDIATELY UPON GRADUATION. LINE 4B: THE ACADEMY SUMMER SESSION THE ACADEMY SUMMER SESSION, OFFERED THE OPPORTUNITY TO 1,874 CHILDREN OF THE GREATER ALBUQUERQUE COMMUNITY (MOST NON-AFFILIATED WITH THE REGULAR SCHOOL YEAR) TO PARTICIPATE IN AN ENRICHING AND EXCITING SUMMER EXPERIENCE, DURING THE FISCAL YEAR ENDED JUNE 30, 2012. THE SCHOOL IS EQUALLY PLEASED TO OFFER THIS PROGRAM TO STUDENTS VISITING ALBUQUERQUE AND NEW MEXICO EACH SUMMER. THE PROGRAM HAD 191 CLASS OFFERINGS AND INCLUDES EARLY CHILDHOOD PROGRAMS, A DAY CAMP, VARIOUS SPORTS CAMPS AND SWIM INSTRUCTION FOR CHILDREN FROM PRESCHOOL TO HIGH SCHOOL, FOR THE FISCAL YEAR ENDED JUNE 30, 2012. CREDIT CLASSES IN MATH AND SCIENCE ARE ALSO OFFERED TO HIGH SCHOOL STUDENTS. AN INTEGRAL PART OF THE SESSION IS THE MULTICULTURAL SUMMER HONORS PROGRAM, A SUMMER SCHOLARSHIP PROGRAM FOR ACADEMICALLY TALENTED AND MOTIVATED AFRICAN AMERICAN, NATIVE AMERICAN, HISPANIC AND OTHER STUDENTS WHO WILL BE ENTERING THE FOURTH AND FIFTH GRADES. SUMMER SESSION HAS BEEN AN INTEGRAL PART OF THE ACADEMY SINCE 1984, REINFORCING THE SCHOOL'S UNIQUE MISSION OF ACCESSIBILITY, AFFORDABILITY, EXCELLENCE AND OUTREACH. THE PROGRAM ALSO BUILDS A BROADER SENSE OF COMMUNITY, AS SUMMER STUDENTS AND THEIR SIBLINGS, AS WELL AS CHILDREN OF FACULTY AND ALUMNI RETURN SUMMER AFTER SUMMER. THE SESSION IS STAFFED BY QUALIFIED AND TALENTED INDIVIDUALS WHO COME FROM THROUGHOUT NEW MEXICO AND THE WIDER NATIONAL AND INTERNATIONAL EDUCATIONAL COMMUNITY. THE TEACHER/STUDENT RATIO'S FOR THE SUMMER SESSION OFFERED FOR THE FISCAL YEAR ENDED JUNE 30, 2012 WAS 1:6 FOR THE DAY CAMP AND CHILDREN'S WORKSHOP CLASSES, 1:12 FOR PRE-GRADE 1-2 CLASSES, AND 1:15 FOR ALL OTHER SUMMER PROGRAMS OFFERED. GENERAL STATEMENT 4 FORM 990 PART III, LINE 4C-4D, PROGRAM SERVICE ACCOMPLISHMENTS LINE 4C: FOOD SERVICES THE FOOD SERVICE DEPARTMENT SERVES THE ACADEMY COMMUNITY BY PROVIDING NUTRITIOUS MEALS, PREPARED WITH CARE, PRESENTED IN AN ATTRACTIVE MANNER, AND SERVED IN A FRIENDLY ATMOSPHERE BY A COURTEOUS STAFF WITHIN BUDGETARY GUIDELINES AND IN AN ENVIRONMENTALLY SUSTAINABLE WAY. THE ACADEMY DINING HALLS PROVIDE BREAKFAST AND LUNCH EVERY SCHOOL DAY FOR STUDENTS, FACULTY AND STAFF. LUNCH IS INCLUDED IN TUITION AND STUDENTS ARE REQUIRED TO ATTEND LUNCH AS PART OF THE SCHOOL DAY. STUDENTS MAY SELF-SELECT FROM HOT OR COLD SANDWICHES, A SALAD BAR, PASTA AND PIZZA, HOME-STYLE ITEMS, SOUTHWESTERN AND ASIAN FARE, SOUP, AND MILK/JUICE CHOICES. IN GRADES 6-9, NINE TO TEN STUDENTS AND ONE FACULTY MEMBER EAT AT EACH TABLE. LUNCH TABLES ARE ASSIGNED AND CHANGE ON A REGULARLY SCHEDULED BASIS. BOTH 6/7 AND 8/9 DIVISIONS SELECT CERTAIN DAYS OF THE WEEK FOR FAMILY SEATING, ADVISEE SEATING, OR OPEN SEATING. THIS GIVES STUDENTS THE OPPORTUNITY TO HAVE LUNCH WITH THEIR SCHOOL FAMILY, THEIR FACULTY ADVISER AND FELLOW ADVISEES, THEIR FRIENDS, AND OTHER FACULTY AND CLASSMATES WITH WHOM THEY MAY BE LESS FAMILIAR. IN GRADES 10-12, STUDENTS HAVE OPEN SEATING AND MAY EAT ANYTIME DURING THIS DIVISION'S OPEN LUNCH PERIOD. THE ACADEMY PARTICIPATES IN THE USDA SCHOOL BREAKFAST AND NATIONAL SCHOOL LUNCH PROGRAMS AND FOLLOWS THE NUTRIENT GUIDELINES SPECIFIED FOR THESE MEALS FOR STUDENTS IN GRADES 6-12. CALORIES, CARBOHYDRATES, PROTEIN, VITAMINS A AND C, IRON, CALCIUM, CHOLESTEROL, AND SODIUM ARE EVALUATED DURING MENU PLANNING AND MEET THE USDA REQUIREMENT WHEN AVERAGED OVER A WEEK. TOTAL FAT IS PLANNED TO BE 30% OR LESS AND SATURATED FAT 10% OR LESS. LINE 4D: OTHER PROGRAM SERVICES THE MEDIA LITERACY PROJECT ("MLP") MLP, FOUNDED IN 1993, IS NATIONALLY RECOGNIZED AS A LEADER IN MEDIA LITERACY EDUCATION. ITS MISSION IS TO CULTIVATE CRITICAL THINKING AND ACTIVISM IN MEDIA CULTURE TO BUILD HEALTHY AND JUST COMMUNITIES. MLP DELIVERS DYNAMIC MULTIMEDIA PRESENTATIONS, AT CONFERENCES, WORKSHOPS AND CLASSROOMS ACROSS THE COUNTRY. THE MEDIA LITERACY CURRICULA ACTION GUIDES ARE USED IN COUNTLESS CLASSROOMS AND COMMUNITIES IN ALL 50 STATES AND ABROAD. MLP'S CATALYST INSTITUTE AND OTHER TRAINING PROGRAMS HAVE EMPOWERED THOUSANDS OF PEOPLE TO BE ADVOCATES FOR A MEDIA LITERACY SOCIETY. FOR THE YEAR ENDED JUNE 30, 2012, MLP STAFF DELIVERED 78 PRESENTATIONS AND TRAININGS REACHING 1,062 YOUTH AND ADULTS IN 3 STATES, INCLUDING NEW MEXICO, GEORGIA, TEXAS AND THE DISTRICT OF COLUMBIA. COMMUNITY BUILDERS COMMUNITY OUTREACH IS AN IMPORTANT ASPECT OF THE ACADEMY'S MISSION. THE SCHOOL IS DEEPLY COMMITTED TO MAKING A POSITIVE IMPACT ON THE GREATER ALBUQUERQUE COMMUNITY, THE STATE OF NEW MEXICO AND BEYOND. OUTREACH INITIATIVES ARE ABUNDANT AND COMMUNITY SERVICE IS PART OF THE CURRICULUM AT ALL GRADE LEVELS. EACH YEAR STUDENTS UNDERTAKE PROJECTS AT NUMEROUS NONPROFIT ORGANIZATIONS IN THE COMMUNITY. COMMUNITY BUILDERS IS A TUITION FREE PROGRAM THAT GIVES STUDENTS FROM THE ACADEMY AND OTHER AREA SCHOOLS AN OPPORTUNITY TO LEARN THE NUTS AND BOLTS OF COMMUNITY PHILANTHROPY AND NONPROFIT ORGANIZATIONS. THE PROGRAM INCLUDES A MIX OF SITE VISITS AND MEETINGS WITH COMMUNITY LEADERS TO DISCUSS A VARIETY OF TOPICS, INCLUDING TYPES OF NONPROFITS, LEGAL AND ETHICAL ISSUES IN THE NONPROFIT SECTOR, GRANT WRITING FOR NONPROFITS, NONPROFIT GOVERNING BOARDS AND COMMUNITY LEADERSHIP. AT THE END OF THE PROGRAM STUDENTS COME TOGETHER AS A MOCK FOUNDATION TO MAKE DECISIONS ABOUT HOW TO SUPPORT SOME OF THE NONPROFITS THEY STUDIED, BOTH FINANCIALLY AND THROUGH VOLUNTEER WORK. THE PROGRAM IS PERMANENTLY ENDOWED SO THAT FUNDS TOTALING $10,000 CAN BE ALLOCATED AMONG STUDIED NONPROFITS. APPROXIMATELY 70 NONPROFIT ORGANIZATIONS HAVE PARTICIPATED IN THIS PROGRAM WHICH HAS NOW COMPLETED ITS TENTH YEAR. CHARGER AQUATICS CHARGER AQUATICS IS A COMPREHENSIVE, YEAR-ROUND AQUATICS PROGRAM THAT PROVIDES SWIMMERS IN THE GREATER ALBUQUERQUE AREA WITH OPPORTUNITIES TO LEARN, PARTICIPATE, AND COMPETE IN THE SCHOOL'S STATE-OF-THE-ART AQUATICS FACILITY LOCATED IN THE NATIONALLY ACCLAIMED BARNEY NATATORIUM AND OFFERED AS PART OF THE SCHOOL'S ONGOING COMMITMENT TO PROVIDE SERVICE AND OUTREACH TO THE COMMUNITY AT LARGE. CHARGER AQUATICS OFFERS MEMBERSHIP IN USA-SANCTIONED CLUBS, INCLUDING USA SWIMMING AND US MASTERS SWIMMING, ALONG WITH AN EXTENSIVE MENU OF NON-MEMBER AQUATICS CLASSES SUCH AS AQUA FITNESS AND TODDLER AND PRESCHOOL SWIM LESSONS. TOTAL ENROLLMENT FOR ALL PROGRAMS WAS 300 FOR THE YEAR ENDING JUNE 30, 2012. COMMUNITY ACADEMY COMMUNITY ACADEMY SUPPORTS THE ACADEMY'S COMMITMENT TO COMMUNITY OUTREACH AND LIFE-LONG LEARNING. THE COMMUNITY ACADEMY OFFERS A CONTINUING EVENING LECTURE SERIES, FREE OF CHARGE TO THE ENTIRE COMMUNITY, PRESENTED BY ACADEMY FACULTY AND ALUMNI AND BY COMMUNITY LEADERS WITH EXPERTISE IN THEIR FIELDS. GENERAL STATEMENT 5 FORM 990, PAGE 5, PART V, LINE 7(G) AND 7(H) STATEMENTS REGARDING OTHER IRS FILINGS AND TAX COMPLIANCE. FORM 8899 AND 1099-C REPORTING: THE ACADEMY DID NOT RECEIVE CONTRIBUTIONS OF THE TYPE LISTED. THEREFORE THE ACADEMY DOES NOT HAVE A REPORTING REQUIREMENT. THESE QUESTIONS HAVE NOT BEEN ANSWERED AS THEY ARE NOT APPLICABLE. GENERAL STATEMENT 6 FORM 990, PART VI, SECTION B, LINE 11 A & B: FORM 990 IS PREPARED BY THE ACADEMY'S CONTROLLER WITH A REVIEW BY THE ACADEMY'S BUSINESS MANAGER AND BY ITS EXTERNAL ACCOUNTING FIRM. A DRAFT OF FORM 990 IS SENT ELECTRONICALLY TO ALL MEMBERS OF THE BOARD OF TRUSTEES. FORM 990 IS ACCOMPANIED BY A SUMMARY REPORT FROM THE BUSINESS MANAGER WHICH EXPLAINS THE FINANCIAL DATA AND NARRATIVE INFORMATION INCLUDED IN THE FORM. THE BOARD OF TRUSTEE'S AUDIT COMMITTEE MEETS WITH ACADEMY EMPLOYEES (HEAD OF SCHOOL, TREASURER AND BUSINESS MANAGERS) TO REVIEW THE FORM IN DETAIL. TRUSTEE MEMBERS UTILIZE THIS TIME TO ASK QUESTIONS, CLARIFY DATA AND MAKE SUGGESTIONS FOR ANY CHANGES. ANY AGREED UPON CHANGES ARE INCORPORATED INTO THE FORM, WITH A FINAL REVIEW UNDERTAKEN BY THE CONTROLLER AND THE BUSINESS MANAGER. THE FORM IS SUBMITTED ELECTRONICALLY TO THE INTERNAL REVENUE SERVICE ("IRS") IN A TIMELY MANNER. THE ACADEMY VALUES THOSE FEW DONORS WHO REQUEST THAT THEY REMAIN ANONYMOUS TO THE COMMUNITY. TO THAT END, TO PROTECT SUCH DONORS AND KEEP THE SCHOOL'S PROMISE THAT THEIR IDENTITY WILL NOT BE WIDELY KNOWN, SCHEDULE B IS NOT PROVIDED TO ALL TRUSTEES OF THE SCHOOL. ALL OTHER PORTIONS OF THE FORM 990 ARE PROVIDED TO ALL TRUSTEES. TO PROTECT THE ORGANIZATION FROM THE POTENTIAL OF INAPPROPRIATE GIFTS TO THE SCHOOL, THE HEAD OF SCHOOL, THE TREASURER AND THE DIRECTOR OF INSTITUTIONAL ADVANCEMENT ARE COMPLETELY AWARE OF THE IDENTITY OF ALL DONORS. SHOULD ANY ONE OF THEM DETERMINE THAT A DONATION MIGHT BE INAPPROPRIATE OR POSE A CONFLICT WITHIN THE ORGANIZATION, THEY ARE CHARGED WITH RAISING THE ISSUE WITH THE CHAIR OF THE BOARD. THE SCHOOL PUBLISHES A COMPREHENSIVE GIVING REPORT ON AN ANNUAL BASIS THAT IS AVAILABLE TO THE PUBLIC. BEGINNING WITH THE NEW FISCAL YEAR ON JULY 1, 2013, THE BOARD CHAIR WILL BE A FOURTH PERSON WITH DIRECT KNOWLEDGE OF ALL DONORS, AND ANY PERCEIVED ISSUES WILL BE RAISED TO A COMMITTEE OF THE BOARD OF TRUSTEES. GENERAL STATEMENT 7 FORM 990, PART VI, SECTION B, LINE 12C: THE CONFLICT OF INTEREST STATEMENT IS DIRECTED TO OFFICERS, TO THOSE WHO MAKE PURCHASING DECISIONS, TO ALL PERSONS WHO ARE DESCRIBED AS MANAGEMENT PERSONNEL AND TO ANYONE WHO HAS PROPRIETARY INFORMATION CONCERNING THE ACADEMY. EACH EMPLOYEE MUST SIGN A STATEMENT ANNUALLY WHICH AFFIRMS SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY AND HAS AGREED TO COMPLY WITH THE POLICY. THIS IS TO ENSURE THE ACADEMY OPERATES IN A MANNER CONSISTENT WITH CHARITABLE PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS. PERIODIC REVIEW SHALL, AT A MINIMUM, INCLUDE WHETHER TRANSACTIONS BETWEEN EMPLOYEES AND THE SCHOOL ARE NEGOTIATED AS THE RESULT OF "ARM'S LENGTH BARGAINING" AND WHETHER PARTNERSHIPS, JOINT VENTURES AND ANY OTHER BUSINESS ARRANGEMENTS WITH THE SCHOOL ARE PROPERLY RECORDED. TRANSACTIONS ARE FURTHER REVIEWED TO ENSURE THEY REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, THEY FURTHER CHARITABLE PURPOSES AND THEY DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR ANY EXCESS BENEFIT TRANSACTION. ACCOUNTING AND OTHER PERSONNEL ARE ENCOURAGED TO REPORT A SITUATION INVOLVING A POTENTIAL CONFLICT OF INTEREST TO AN APPROPRIATE SCHOOL OFFICIAL. GENERAL STATEMENT 8 FORM 990, PART VI, SECTION B, LINE 15A & B: THE BOARD OF TRUSTEE'S EXECUTIVE COMMITTEE TAKES RESPONSIBILITY FOR THE EVALUATION OF ITS TWO DIRECT REPORTS, THE HEAD OF SCHOOL AND THE TREASURER, AND FOR THE DETERMINATION OF COMPENSATION FOR EACH OF THOSE INDIVIDUALS. THE EXECUTIVE COMMITTEE CONSISTS OF THE BOARD CHAIR, VICE CHAIR, SECRETARY, ASSISTANT SECRETARY, ASSISTANT TREASURER, AND TWO AT-LARGE BOARD MEMBERS APPOINTED BY THE CHAIR. ALL BOARD MEMBERS, INCLUDING THE MEMBERS OF THE EXECUTIVE COMMITTEE, SUBMIT A CONFLICT OF INTEREST DISCLOSURE STATEMENT TO THE CHAIR OF THE BOARD ANNUALLY. THESE ARE UTILIZED TO DETERMINE THAT THE COMMITTEE MEMBERS DO NOT HAVE ANY CONFLICTS OF INTEREST AND THEY DO NOT HAVE ANY DIRECT FINANCIAL INTEREST IN THE COMPENSATION PROVIDED TO THE HEAD OF SCHOOL OR TO THE TREASURER. IN ADDITION, AT THE TIME THE EXECUTIVE COMMITTEE CONSIDERS COMPENSATION QUESTIONS, EACH COMMITTEE MEMBER IS ASKED AGAIN TO CONFIRM THAT THEY DO NOT HAVE ANY CONFLICTS OF INTEREST. THE EXECUTIVE COMMITTEE HAS, IN SOME YEARS, RETAINED A COMPENSATION CONSULTANT INTIMATELY FAMILIAR WITH COMPENSATION FOR THE HEADS OF INDEPENDENT SCHOOL'S BOTH IN THE REGION AND NATIONALLY. THE CONSULTANT HAS NO FINANCIAL OR OTHER INTEREST IN THE COMPENSATION DECISIONS MADE. THE CONSULTANT HAS PREPARED A STUDY OF UP TO THIRTY OR FORTY SCHOOLS THAT ARE OR MAY BE COMPARABLE TO THE ACADEMY IN TERMS OF COMPLEXITY, SIZE OF OPERATING BUDGET, GRADE RANGE AND STUDENT BODY SIZE. THE CONSULTANT ALSO CONSIDERS HEADS OF SCHOOL WITH EXPERIENCE LEVELS COMPARABLE TO THE ACADEMY'S HEAD OF SCHOOL. THE CONSULTANT'S COMPENSATION INFORMATION INCLUDES EVIDENCE OF SALARY, BONUSES, BENEFITS AND OTHER NON-CASH CONSIDERATION THAT OTHER HEADS OF SCHOOL MAY RECEIVE. THE EXECUTIVE COMMITTEE CONSIDERS THE INFORMATION ASSEMBLED BY THE CONSULTANT, AND IN ADDITION, INFORMATION GATHERED FROM FORM 990'S OF OTHER INDEPENDENT SCHOOLS, NEWS SOURCES AND INDEPENDENT SCHOOL ASSOCIATIONS, IN SETTING COMPENSATION FOR THE HEAD OF SCHOOL, TOGETHER WITH ANY INFORMATION OBTAINED FROM ANY EVALUATIONS THAT MAY HAVE BEEN PERFORMED, ORDINARILY IN THE SPRING AND EARLY SUMMER, IN ADVANCE OF THE BEGINNING OF THE ACADEMY'S FISCAL YEAR. THE EXECUTIVE COMMITTEE MAINTAINS MINUTES OF ITS MEETINGS, INCLUDING THOSE IN WHICH COMPENSATION MATTERS ARE CONSIDERED. THE CHAIR OF THE BOARD REPORTS THE COMPENSATION DECISIONS TO THE FULL BOARD. THE MOST RECENT COMPENSATION CONSULTANT STUDY WAS COMPLETED DURING THE 2009-2010 FISCAL YEAR. THE COMPENSATION CONSULTANT PROVIDED A LETTER TO THE ACADEMY'S EXECUTIVE COMMITTEE CONFIRMING HIS JUDGMENT THAT THE HEAD OF SCHOOL'S COMPENSATION WAS REASONABLE AND APPROPRIATE. AS NOTED, THIS INFORMATION IS SUPPLEMENTED BY MORE RECENT INFORMATION. DETERMINING COMPARABILITY OF THE TREASURER'S COMPENSATION IS MORE DIFFICULT BECAUSE OF THE PAUCITY OF INFORMATION AVAILABLE. THE TREASURER'S POSITION AT THE ACADEMY INVOLVES A FAIRLY UNIQUE SET OF RESPONSIBILITIES IN INDEPENDENT SCHOOLS, RANGING FROM MANAGEMENT OF A SUBSTANTIAL ENDOWMENT TO A WIDE RANGE OF DEBT MANAGEMENT, BUSINESS AND FINANCIAL MATTERS. ONE OF THE REPORTS DONE BY THE COMPENSATION CONSULTANT DID INCLUDE INFORMATION REGARDING THE TREASURER'S COMPENSATION BY COMPARABILITY TO THE SECOND HIGHEST PAID OFFICER OF THE SUBJECT SCHOOLS. THAT INFORMATION, COUPLED WITH INFORMATION FROM A SURVEY BY AN ASSOCIATION OF SCHOOL BUSINESS OFFICERS, CERTAIN FORM 990 INFORMATION, AND THE KNOWLEDGE OF THE MEMBERS OF THE EXECUTIVE COMMITTEE OF COMPENSATION LEVELS PREVAILING IN THE GEOGRAPHIC AREA FOR PERSONS WITH THE SKILL SET AND WORK ETHIC NECESSARY TO FILL THIS OFFICE HAVE BEEN USED TO SET COMPENSATION SINCE THAT STUDY. THE EXECUTIVE COMMITTEE IS LOOKING FOR ADDITIONAL MEANS OF DOING COMPARISONS OF COMPENSATION. PROSPECTIVELY, THE EXECUTIVE COMMITTEE HOPES TO BE ABLE TO USE ADDITIONAL RESOURCES FOR MAKING COMPENSATION DECISIONS. THE NEWLY ENHANCED VERSIONS OF THE FORM 990 ARE AVAILABLE FROM COMPARABLE SCHOOLS, WILL ALLOW THE ACADEMY TO PROCEED DURING MOST YEARS, BY CONSIDERING THOSE (PERHAPS WITH A LIMITED ACCOUNTING FIRM CONFIRMATION OF THE INFORMATION) TOGETHER WITH INFORMATION AVAILABLE FROM INDEPENDENT SCHOOLS AND BUSINESS ASSOCIATIONS EACH YEAR, AND ADDING IN A CONSULTANT'S STUDY AND REPORT ON A REGULAR BASIS. GENERAL STATEMENT 9 FORM 990, PART VI, SECTION C, LINE 19: THE ACADEMY KEEPS A DATABASE (UPDATED ANNUALLY) OF FINANCIAL INSTITUTIONS, BONDHOLDERS AND VENDORS WHO HAVE REQUESTED A COPY OF THE ACADEMY'S AUDITED FINANCIAL STATEMENTS AS A CONDITION OF PROVIDING CREDIT AND SERVICES TO THE SCHOOL. AFTER THE AUDIT IS COMPLETED AND ACCEPTED BY THE BOARD OF TRUSTEES, ELECTRONIC COPIES OF THE STATEMENTS ARE DISTRIBUTED TO ALL ENTITIES IN THE DATABASE. THE ACADEMY DOES NOT CURRENTLY MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. GENERAL STATEMENT 10 FORM 990 PART VIII - STATEMENT OF REVENUE LINES 11(A), 11(C), AND 11(D) FOR THE YEAR ENDED JUNE 30, 2012, THE ACADEMY ISSUED AUDITED SPECIAL PURPOSE FINANCIAL STATEMENTS. THE SPECIAL PURPOSE FINANCIAL STATEMENTS DID NOT CONSOLIDATE THE ACADEMY'S INVESTMENT IN HIGH DESERT. UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), CONSOLIDATION OF HIGH DESERT IS REQUIRED. INSTEAD, THE INVESTMENT WAS ACCOUNTED FOR AND REPORTED UNDER THE EQUITY METHOD OF ACCOUNTING. THE ACADEMY REPORTED UNDER THE SPECIAL PURPOSE BASIS BECAUSE MANAGEMENT OF HIGH DESERT INTENDS TO CEASE OPERATIONS IN THE NEAR TERM, AND THE ACADEMY DOES NOT EXPECT TO REALIZE ANY ECONOMIC BENEFIT FROM OR OBLIGATION TO HIGH DESERT, EXCEPT TO THE EXTENT THAT THE ACADEMY IS A CO-SIGNOR ON A NOTE PAYABLE HELD BY HIGH DESERT. THE ACADEMY INTENDS TO MEET ITS OBLIGATIONS UNDER THE CO-SIGNED NOTE PAYABLE AND RECORDED THE FULL $4,000,000 NOTE PAYABLE OUTSTANDING. THE ACADEMY'S EQUITY METHOD INVESTMENT IN HIGH DESERT WAS EVALUATED FOR IMPAIRMENT DURING FISCAL YEAR 2012, AND WAS DETERMINED TO BE FULLY IMPAIRED. THE ACADEMY RECOGNIZED A LOSS OF $23,379,938. THIS LOSS INCLUDED THE CARRYING VALUE OF THE INVESTMENT IN HIGH DESERT AT JUNE 30, 2012 OF $19,379,938, PLUS THE $4,000,000 NOTE PAYABLE ASSUMED BY THE ACADEMY. THE FOLLOWING TABLE SUMMARIZES THE INVESTMENT BALANCE OF HIGH DESERT AT JUNE 30, 2012: INVESTMENT IN HIGH DESERT, JULY 1, 2011 $19,495,953 CONTRIBUTIONS $ 1,675,000 NET LOSS FROM INVESTMENT IN HIGH DESERT $(1,791,015) ---------------- INVESTMENT IN HIGH DESERT, BEFORE IMPAIRMENT $ 19,379,938 IMPAIRMENT OF INVESTMENT IN HIGH DESERT $(19,379,938) ---------------- INVESTMENT IN HIGH DESERT, JUNE 30, 2012 NONE ================ LINE 11(B) AS A RESULT OF THE ECONOMIC CRISIS THAT BEGAN IN 2008, HIGH DESERT HAS EXPERIENCED REDUCED INTEREST IN ITS DEVELOPMENT AT MARIPOSA. DURING THE LAST SEVERAL YEARS, HIGH DESERT HAS EXPERIENCED VIRTUALLY NO NEW LOT SALES AT MARIPOSA. AS A RESULT OF THE CONTINUED ECONOMIC DOWNTURN AND THE ACADEMY'S IMPAIRMENT OF HIGH DESERT IN FISCAL YEAR 2012, AN APPRAISAL OF THE ACADEMY'S INVESTMENT IN MARIPOSA EAST AND MARIPOSA WEST WAS PERFORMED. MARIPOSA WEST CONSISTS OF 2,931 ACRES OF AN UNDEVELOPED TRACT, AND MARIPOSA EAST CONSISTS OF APPROXIMATELY 4.1 ACRES OF IMPROVED PARCELS, WHICH ARE BOTH LOCATED IN RIO RANCHO, NEW MEXICO. THE ACADEMY ENGAGED THE SERVICES OF A THIRD-PARTY APPRAISER TO DETERMINE THE VALUE OF MARIPOSA WEST AND EAST. THE APPRAISER CONSIDERED VARIOUS VALUATION TECHNIQUES AND DETERMINED THAT THE MOST APPROPRIATE TECHNIQUE FOR THE VALUATION WAS THE SALES COMPARISON APPROACH. THIS APPROACH WAS SELECTED OVER OTHER METHODS AS THE MARIPOSA LAND IS CURRENTLY NOT GENERATING REVENUE THAT COULD BE USED TO PREPARE A DISCOUNTED CASH FLOW ANALYSIS. THE SALES COMPARISON APPROACH CONSISTED OF THE APPRAISER REVIEWING VARIOUS SOURCES OF INFORMATION TO ARRIVE AT A FAIR VALUE FOR MARIPOSA WEST AND EAST. THESE SOURCES INCLUDED INFORMATION PROVIDED BY THE ACADEMY, COUNTY RECORDS, VARIOUS DATABASES OF RECENT SALES ACTIVITY OF SIMILAR PROPERTIES AND CURRENTLY LISTED PROPERTIES, PREVIOUS APPRAISALS, AND A PERSONAL INSPECTION OF THE PROPERTY. THE APPRAISAL RESULTED IN A FAIR VALUE OF MARIPOSA WEST AND EAST OF $11,275,000 AND $800,000. THE APPRAISAL WAS BELOW THE CARRYING VALUE OF THESE INVESTMENTS AT JUNE 30, 2012, WHICH RESULTED IN THE ACADEMY RECOGNIZING AN IMPAIRMENT FOR THESE INVESTMENTS TOTALING $6,035,123. GENERAL STATEMENT 11 FORM 990, PART XI, PAGE 12, LINE 5: FOR THE YEAR ENDED JUNE 30, 2012, THE ACADEMY RECORDED UNREALIZED LOSSES OF $5,169,027 ON ITS INVESTMENTS IN THE ENDOWMENT FUND, BASED ON FLUCTUATIONS IN THE MARKET. GENERAL STATEMENT 12 FORM 990, PART XII, PAGE 12, LINE 2C: FINANCIAL STATEMENTS AND REPORTING THE PROCESS FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT BY THE AUDIT COMMITTEE HAS NOT CHANGED FROM THE PRIOR YEAR. GENERAL STATEMENT 13 SCH K, PART I, LINE A, COLUMN F: IN SEPTEMBER 2010, THE ACADEMY ISSUED $36,000,000 OF SERIES 2010 BONDS FOR THE PURPOSE OF REFUNDING SERIES 1999 BONDS AND SERIES 2002 BONDS, TERMINATING A MASTER AGREEMENT AND SWAP TRANSACTION WITH CHASE MANHATTAN BANK AND ACQUIRING AND INSTALLING INFRASTRUCTURE IMPROVEMENTS ON THE SCHOOL CAMPUS. THE SERIES 2010 BONDS WERE ISSUED AT A PREMIUM OF $1,303,574, RESULTING IN TOTAL PROCEEDS OF $37,303,574. GENERAL STATEMENT 14 SCHEDULE K, PART II, LINE 17: THE ACADEMY'S SERIES 2010 BONDS PROVIDED APPROXIMATELY $6.0 MILLION IN PROCEEDS TO FUND UPDATES OF FIRE ALARM AND SMOKE DETECTION SYSTEMS, REPLACEMENT OF ELECTRICAL LOAD AND MOTOR CONTROL CENTERS IN ORIGINAL CAMPUS BUILDINGS, REPLACEMENT OF BURIED HOT WATER AND CHILLED WATER LOOP LINES, AND REPLACEMENT OF CERTAIN ROOFTOP HVAC UNITS AND RENOVATION OF CLASSROOM BUILDINGS AND FIXTURES, INCLUDING CLASSROOM TECHNOLOGY UPGRADES. THESE PROJECTS ARE EXPECTED TO RESULT IN SUBSTANTIAL OPERATIONAL SAVINGS OVER THE NEXT SEVERAL YEARS. AS OF JUNE 30, 2012, THE ACADEMY HAD $3.3 MILLION IN PROCEEDS REMAINING TO COMPLETE ITS VARIOUS CAPITAL PROJECTS. THE BOND PROCEEDS HELD FOR THESE PROJECTS ARE ESCROWED AT WELLS FARGO. AS PROJECTS ARE COMPLETED OR AS PROGRESS BILLINGS ARE RECEIVED, THE ACADEMY SUBMITS THE APPROPRIATE SUPPORTING DOCUMENTATION TO WELLS FARGO, WHO IN TURN PROVIDES A REIMBURSEMENT TO THE SCHOOL FOR THE FUNDS EXPENDED. THE ACADEMY EXPECTS TO SPEND THE FULL $6.0 MILLION WITHIN THE THREE-YEAR PERIOD ALLOWED UNDER THE TERMS OF THE BOND AGREEMENT. ALBUQUERQUE ACADEMY EDUCATIONAL FDN 6400 WYOMING BLVDNE ALBUQUERQUE NM 87109 850381395 SUPRT. ISAS NM 501(C)(3) TYPE II ALBUQ ACDMY false ALBUQUERQUE ACADEMY STUDENT SUPPORT FDN 6400 WYOMING BLVDNE ALBUQUERQUE NM 87109 205895188 PROVIDE SUPRT NM 501(C)(3) TYPE II ALBUQ ACDMY false ALBUQUERQUE ACADEMY FOR BOYS TRUST #1 1300 MERRILL LYNCH DRIVE 3RD FLOOR PENNINGTON NJ 08534 866008015 PROVIDE SUPRT NM 501(C)(3) TYPE III NA false ALBUQUERQUE ACADEMY FOR BOYS TRUST #2 1300 MERRILL LYNCH DRIVE 3RD FLOOR PENNINGTON NJ 08534 856014105 PROVIDE SUPRT NM 501(C)(3) TYPE III NA false HIGH DESERT INVESTMENT CORPORATION 2500 PARKWAY AVE NE STE 200 RIO RANCHO NM 87144 850394108 REAL ESTATE NM ALBUQ ACADEMY C CORP -1791015 0 1.00000 false true false true false false false false false false false false false false false true false false HIGH DESERT INVESTMENT CORPORATION B 1675000 CASH HIGH DESERT INVESTMENT CORPORATION P 21250 CASH HIGH DESERT INVESTMENT CORPORATION D 4000000 FV OF NOTE SUPPLEMENTAL INFORMATION 1 FORM 990, SCHEDULE R PART V, LINE 1: IN 1991, THE ACADEMY'S BOARD OF TRUSTEES FORMED HIGH DESERT, FOR THE PURPOSE OF ACQUIRING AND DEVELOPING PROPERTY OWNED BY THE ACADEMY. IN RECENT YEARS, HIGH DESERT HAS BEEN AFFECTED BY ADVERSE MARKET CONDITIONS, PRIMARILY THE DECREASING INTEREST IN REAL ESTATE DEVELOPMENT. UNDER GAAP, THESE FACTORS ARE INDICATORS OF IMPAIRMENT THAT REQUIRED AN IMPAIRMENT ANALYSIS TO BE PERFORMED AS OF JUNE 30, 2012, BY THE ACADEMY OF ITS INVESTMENT IN HIGH DESERT. THE ACADEMY'S ANALYSIS INDICATED THAT ITS ENTIRE INVESTMENT IN HIGH DESERT WAS IMPAIRED AT JUNE 30, 2012. ACCORDINGLY THE ACADEMY REDUCED THE CARRYING VALUE OF ITS INVESTMENT IN HIGH DESERT TO ZERO AT JUNE 30, 2012, RESULTING IN AN IMPAIRMENT LOSS OF $19,379,938. THIS IMPAIRMENT HAS RESULTED IN THE ACADEMY REFLECTING A ZERO SHARE OF END OF YEAR ASSETS IN THE FORM 990.