2012-03-26T13:14:14-05:00 2011-06-30 CHERRY BEKAERT & HOLLAND LLP 1111 METROPOLITAN AVENUE SUITE 1000 CHARLOTTE NC 28204 990 2010-07-01 560935064 CANNON SCHOOL INC CANN 7047868171 5801 POPLAR TENT ROAD CONCORD NC 28027 STEVE JONES 7047868171 2012-03-16 1 JANICE A RATICA 7043771678 2010 2016-02-24 21:20:13Z STEVE JONES 5801 POPLAR TENT ROAD CONCORD NC 28027 16098233 0 X WWW.CANNONSCHOOL.ORG X 1968 NC CANNON SCHOOL WAS FOUNDED IN 1968 AND IS A NON-PROFIT, INDEPENDENT SCHOOL THAT FOCUSES ON THE INDIVIDUAL STUDENT. THE SCHOOL OCCUPIES A 65-ACRE CAMPUS JUST OFF THE I-85 CORRIDOR IN CONCORD, NC. APPROXIMATELY 825 STUDENTS WERE ENROLLED AT THE SCHOOL DURING THE FISCAL YEAR 2011 IN GRADES JUNIOR KINDERGARTEN THROUGH 12TH GRADE. CANNON ENCOURAGES STUDENTS TO STRETCH TO THEIR FULLEST POTENTIAL AND BECOME ENGAGED STUDENTS AND OUTSTANDING CITIZENS. CANNON'S LOWER SCHOOL STRESSES ACADEMIC EXCELLENCE, WITH A BALANCE OF ENRICHMENT OPPORTUNITIES AND AN EMPHASIS ON CHARACTER DEVELOPMENT. CANNON'S MIDDLE SCHOOL PROVIDES A CLIMATE FOR EMERGING YOUNG ADULTS TO NURTURE THEIR LOVE OF LEARNING, STRENGTHEN THEIR SELF CONCEPT, AND EXPLORE EXTRACURRICULAR ACTIVITIES. CANNON'S UPPER SCHOOL DEDICATES ITSELF TO DEVELOPING TEACHING PRACTICES AND CURRICULUM THAT EQUIP STUDENTS TO LEARN HOW TO LEARN AND IS BASED ON A TRADITIONAL COLLEGE PREPARATORY CURRICULUM. 20 20 230 30 0 0 1000282 844449 12018500 13428700 172872 100607 183507 74482 13375161 14448238 927811 991588 0 0 8538517 9118548 41169 0 255893 4213321 4064071 13720818 14174207 -345657 274031 29780288 31003725 14744355 15074456 15035933 15929269 PROVISION OF A QUALITY K-12 EDUCATIONAL PROGRAM WITHIN A SAFE, DIVERSE, AND CHALLENGING ENVIRONMENT. 0 0 11631942 1556621 13428700 PRIMARY AND SECONDARY EDUCATION WHICH BENEFITS STUDENTS WITHOUT REGARD TO RACE, RELIGION OR NATIONAL ORIGIN. THE SCHOOL SERVED APPROXIMATELY 825 STUDENTS DURING FISCAL YEAR 2011. 11631942 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 85 0 230 1 0 0 0 0 0 1 1 0 0 0 0 X 20 20 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X WHIT BROWN 7047868171 5801 POPLAR TENT ROAD CONCORD NC 28027 CHRIS GRUBER 1.00 X X 0 0 0 SUSAN SCHNEIDER 1.00 X X 0 0 0 DAVID POWELL 1.00 X X 0 0 0 ANNE MORRISON 1.00 X X 0 0 0 RUSS ANDREWS 1.00 X 0 0 0 BOB BRATTON 1.00 X 0 0 0 FRED BRYANT 1.00 X 0 0 0 WILLIAM COX 1.00 X 0 0 0 GERALD KURTZ 1.00 X 0 0 0 LISA LIVINGSTON 1.00 X 0 0 0 AMY LOVETT 1.00 X 0 0 0 RANDY MCVANE 1.00 X 0 0 0 GEORGE MENNEN JR 1.00 X 0 0 0 SHARIF METWALLI 1.00 X 0 0 0 JOHN PHILLIPS JR 1.00 X 0 0 0 KIM REYNOLDS 1.00 X 0 0 0 JOHN ROSSITCH 1.00 X 0 0 0 ANTHONY SPARROW 1.00 X 0 0 0 TIM TYSINGER 1.00 X 0 0 0 MARY MARGARET WEST 1.00 X 0 0 0 MATTHEW GOSSAGE 40.00 X 340056 0 24381 STEPHEN JONES 40.00 X 101092 0 11668 BILL DISKIN 40.00 X 92120 0 52754 441148 0 36049 2 0 1 0 CAROLINA CLEANING SOLUTIONS 1611 HEATHER GLEN ROAD KANNAPOLIS NC 28081 JANITORIAL CONTRACTOR 182280 EF BELK & SONS 933 OAKRIDGE FARM HWY MOORESVILLE NC 28115 FIELD LIGHTING CONTRACTOR 128862 TOSHIBA FINANCIAL SERVICES PO BOX 740441 ATLANTA GA 30374 OFFICE EQUIPMENT LEASING 102344 3 3720 840729 33581 844449 TUITION AND FEES 900099 12263491 12263491 AUXILIARY ACTIVITIES 900099 1165209 1165209 13428700 148602 148602 26120 26120 26120 26120 1555297 3000 1593187 13105 -37890 -10105 -47995 -47995 92065 3720 43703 48362 48362 14448238 13428700 0 175089 991588 991588 477197 477197 7181159 6417445 567169 196545 444551 366781 65452 12318 484689 399897 71362 13430 530952 438067 78173 14712 33676 33676 26843 26843 83747 83747 124951 108279 16672 180989 125992 54997 127816 93154 34662 739560 580036 159524 428332 428332 1026381 1026381 90198 65738 24460 BOOSTER ORGANIZATIONS 291916 291916 CURRICULUM EXPENSES 256262 256262 SUMMER CAMP/SCHOOL STOR 169772 169772 ATHLETIC EXPENSES 163334 163334 BAD DEBT EXPENSE 84775 84775 235519 137300 96003 2216 14174207 11631942 2286372 255893 657 6252458 4586508 3276547 1092088 728329 511521 585787 120000 100000 13994 28154 278255 140989 24585681 8539945 16254457 16045736 6322808 3756211 600000 89514 29780288 31003725 576610 636373 4785969 5490003 8620000 8190000 29961 761776 728119 14744355 15074456 X 12682880 14201733 2353053 682478 1045058 15035933 15929269 29780288 31003725 X 274031 619305 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3064129 77469 645210 31884 3754924 2784413 62158 399254 23699 3222126 3374348 16100 -573835 32200 2784413 0.68000 0.29000 0.03000 0 0 501819 501819 19631405 7019818 12611587 4251140 1520127 2731013 201317 201317 16045736 EQUITIES 688510 F MUTUAL FUNDS - EQUITIES 1916621 F MUTUAL FUNDS - FIXED INCOME 1151080 F 3756211 VALUATION OF DERIVATIVE INSTRUMENT 562512 CAPITAL LEASES 165607 728119 14448238 14174207 274031 683561 -64256 619305 893336 13559666 683561 -1588993 -905432 14465098 26843 -43703 -16860 14448238 12634446 43703 43703 12590743 26843 1556621 1583464 14174207 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: ENDOWMENT FUNDS ARE USED TO FUND A VARIETY OF PROGRAMS THAT ARE ALIGNED WITH THE SCHOOL'S EXEMPT PURPOSE. THOSE FUNDS WITH DONOR IMPOSED RESTRICTIONS ARE EXPENDED ACCORDING TO THE DONOR RESTRICTIONS. THERE ARE SPENDING POLICIES BASED UPON INVESTMENT RETURNS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: MANAGEMENT HAS EVALUATED THE EFFECT OF FINANCIAL ACCOUNTING STANDARDS BOARD GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS BY PRESCRIBING A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE SCHOOL'S POLICY IS TO RECORD A LIABILITY FOR ANY TAX POSITION TAKEN THAT IS BENEFICIAL TO THE SCHOOL, INCLUDING ANY RELATED INTEREST & PENALTIES, WHEN IT IS MORE LIKELY THAN NOT THE POSITION TAKEN BY MANAGEMENT WITH RESPECT TO A TRANSACTION OR CLASS OF TRANSACTIONS WILL BE OVERTURNED BY A TAXING AUTHORITY UPON EXAMINATION. MANAGEMENT BELIEVES THERE ARE NO SUCH POSITIONS AS OF JUNE 30, 2011, AND ACCORDINGLY, NO LIABILITY HAS BEEN ACCRUED. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN FAIR VALUE OF SWAP 26,904. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE -91,160. PART XII, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID AND SCHOLARSHIPS SHOWN NET OF TUITION ON FINANCIALS -1,556,621. CHANGE IN FAIR VALUE OF SWAP 26,904. ALLOCATION OF INVESTMENT EARNINGS 31,884. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE -91,160. PART XII, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES SHOWN NET OF REVENUE ON FORM 990 -43,703. PART XIII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES SHOWN NET OF REVENUE ON FORM 990 43,703. PART XIII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID AND SCHOLARSHIPS SHOWN NET OF TUITION ON FINANCIALS 1,556,621. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE NORTH CAROLINA ASSOCIATION OF INDEPENDENT SCHOOLS (NCAIS) PUBLISHES A NON-DISCRIMATION STATEMENT ON BEHALF OF ALL ITS MEMBER ORGANIZATIONS IN EACH SCHOOL'S REGIONAL/LOCAL CHAPTER. CANNON IS A MEMBER OF THIS ORGANIZATION. THE ADVERTISEMENT WAS PUBLISHED ON 2/27/11 IN THE CHARLOTTE OBSERVER. CASINO NIGHT 95785 3720 92065 5000 32032 6671 95785 3720 92065 5000 32032 6671 43703 48362 1 FINANCIAL AID 152 991588 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: FINANCIAL AID AWARDS ARE ADMINISTERED BY THE SCHOOL AND ARE USED TO OFFSET CHARGES TO STUDENT ACCOUNTS. NO EXCHANGE OF REAL FUNDS EVER TAKES PLACE. THE AWARD IS SIMPLY A CREDIT TOWARDS THE TUITION BALANCE. X X X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 MATTHEW GOSSAGE 329085 0 0 0 10971 0 19600 0 4781 0 364437 0 0 0 PART I, LINE 1A THE SCHOOL PROVIDES THE HEAD OF SCHOOL WITH GROSSED-UP PAYMENTS TO REIMBURSE THE HEAD FOR TUITION PAYMENTS RELATED TO HIS CHILDREN'S ATTENDANCE AT CANNON SCHOOL. THE SCHOOL ALSO REIMBURSES THE HEAD FOR MEMBERSHIP DUES TO HIS COUNTRY CLUB, WHICH HE USES, IN PART, FOR BUSINESS PURPOSES. THE AMOUNT OF THE COUNTRY CLUB DUES IS INCLUDED IN THE HEAD'S FORM W-2 WAGES. NC CAPITAL FACILITIES FINANCE AGENCY 561592154 65818PBY4 2010-03-03 9035000 REFUNDING OF FACILITIES CONSTRUCTION BONDS 0 0 0 9035000 9035000 2002 1 0 1 1 0 1 0 0 0 1 MATTHEW GOSSAGE THE LOAN WAS A HIRING INCENTIVE THAT WAS USED FOR THE PURCHASE OF A HOME X 200000 100000 0 1 1 100000 X 4 5433 FAIR MARKET VALUE X COMPUTER SOFTWARE & HARDWARE 3 28148 FAIR MARKET VALUE 0 1 1 FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C TRUSTEES ARE REQUIRED TO REVIEW AND SIGN A CONFLICT OF INTEREST STATEMENT ANNUALLY. THE HEAD OF SCHOOL'S ASSISTANT COLLECTS ALL SIGNED CONFLICT OF INTEREST POLICIES FROM TRUSTEES AND REVIEWS FOR ANY POTENTIAL ISSUES. THESE ARE COLLECTED FROM ALL NEW TRUSTEES AS THEY CHANGE DURING THE YEAR. DURING THE COURSE OF THE YEAR, ANY TRUSTEE WITH A POTENTIAL CONFLICT RECUSES HIMSELF/HERSELF FROM DISCUSSIONS AND/OR VOTES. FORM 990, PART VI, SECTION B, LINE 15 THE SCHOOL HAS A COMPENSATION COMMITTEE (COMPOSED OF INDEPENDENT TRUSTEES) FOR ITS HEAD OF SCHOOL THAT UNDERTOOK INITIAL STUDIES OF COMPARABILITY DATA TO DETERMINE THE HEAD'S OVERALL COMPENSATION. ADDITIONALLY, THE COMPENSATION IS RE-EXAMINED ON A PERIODIC BASIS TO ENSURE REASONABLENESS. THE SCHOOL HAS A FULL-TIME HUMAN RESOURCE DIRECTOR THAT ASSISTS IN PULLING TOGETHER COMPENSATION MARKET DATA FOR ALL OTHER POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 683,561. CHANGE IN FAIR VALUE OF SWAP 26,904. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE -91,160. TOTAL TO FORM 990, PART XI, LINE 5: 619,305.