2012-12-18T20:47:14-06:00 2012-05-31 261659234 CW ASSOCIATES CPAS 700 BISHOP STREET SUITE 1040 HONOLULU HI 96813 990 2011-06-01 990078306 HAWAII PREPARATORY ACADEMY HAWA 8088857321 65-1692 KOHALA MOUNTAIN ROAD KAMUELA HI 967438476 ROBERT MCKENDRY 8088857321 2012-12-18 1 MARK A HAYES P00085205 8085311040 2011 2016-02-24 21:20:13Z LINSAY R BARNES 65-1692 KOHALA MOUNTAIN ROAD KAMUELA HI 967438476 27762591 0 X WWW.HPA.EDU X 1957 HI EDUCATION 20 17 284 320 1043799 0 2700144 680066 16507359 17147247 2976076 2409985 933512 1139286 23117091 21376584 2644890 3024724 0 0 10831192 11223418 0 0 344938 7347792 7527711 20823874 21775853 2293217 -399269 93444196 135122805 8989872 8654505 84454324 126468300 TO PROVIDE EXCEPTIONAL LEARNING OPPORTUNITIES AND A DIVERSE COMMUNITY HONORING THE TRADITIONS OF HAWAII. SEE SCHEDULE O. 0 0 17535270 3024724 17232174 K-12 EDUCATIONAL PROGRAM - PROVIDES EDUCATION FOR APPROXIMATELY 600 STUDENTS FROM KINDERGARTEN TO GRADE 12 17535270 1 1 0 0 0 1 0 1 0 1 1 0 0 1 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 0 0 0 1 1 1 0 0 0 1 0 0 0 0 1 X 32 0 284 1 1 1 0 0 0 0 0 0 0 0 0 X 20 17 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X ROBERT MCKENDRY 8088857321 65-1692 KOHALA MOUNTAIN ROAD KAMUELA HI 967438476 ALLISON HOLT GENDREAU 2.00 X 0 0 0 CHARLES G KING 2.00 X 0 0 0 CHATT G WRIGHT 2.00 X 0 0 0 DAVID W PRATT 2.00 X 0 0 0 DONNA TANOUE 2.00 X 0 0 0 DUNCAN MACNAUGHTON 2.00 X 0 0 0 HANNAH KIHILANI SPRINGER 2.00 X 0 0 0 HARRY M PONO VON HOLT 2.00 X 0 0 0 JAKE J MIZUNO 2.00 X 0 0 0 MICHAEL J CHUN 2.00 X 0 0 0 MICHAEL S SPALDING 2.00 X 0 0 0 NONA HASEGAWA 2.00 X 0 0 0 PETER M VITOUSEK 2.00 X 0 0 0 PUTMAN D CLARK 2.00 X 0 0 0 ROBERT L REED 2.00 X 0 0 0 ROY A VITOUSEK III 2.00 X 0 0 0 WILLIAM D PRATT 2.00 X 0 0 0 LAURIE T AINSLIE 4.00 X X 0 0 0 GREGORY R MOOERS 2.00 X X 0 0 0 WILL J HANCOCK 2.00 X X 0 0 0 MICHAEL K FUJIMOTO 2.00 X X 0 0 0 DEBORAH BAKER 2.00 X X 0 0 0 LINDSAY R BARNES 40.00 X 186611 0 42318 KATHERINE PURDY 40.00 X 46537 0 5135 ROBERT MCKENDRY 40.00 X 101129 0 25157 SHIRLEY ANN FUKUMOTO 40.00 X 119996 0 14374 MARK NOETZEL 40.00 X 100167 0 26744 554440 0 113728 4 0 1 0 0 6700 673366 76832 680066 TUITION FEES/STDNT SVC 611710 16407569 16407569 SPECIAL PROGRAMS 611710 739678 739678 17147247 1960001 1960001 700 0 700 700 700 6684403 6234419 449984 449984 449984 13160 6700 11324 1836 1836 225191 140264 84927 84927 ISAACS ART GALLERY 900099 1043799 1043799 OTHER INCOME 900099 8024 8024 1051823 21376584 17232174 1043799 2420545 3024724 3024724 344975 57570 268215 19190 7275467 5890536 1211591 173340 566163 446872 107571 11720 2436422 1883839 473622 78961 600391 468305 114074 18012 12427 12427 55739 55739 56877 31797 25080 67989 67989 878834 493477 372689 12668 1661323 1545907 102075 13341 160394 152666 6303 1425 53192 48471 4721 188161 188161 948615 901184 46957 474 FOOD/FOOD SERVICES 1043978 1035310 8668 ART CENTER OPERATIONS 915020 905595 9425 OTHER ADMINSTRATIVE 809469 88750 709633 11086 STUDENT ACTIVITIES 454305 445189 9116 221388 95560 125828 21775853 17535270 3895645 344938 423245 399214 235571 371952 1692146 934267 348053 498901 1350 192 48067 0 2259715 2255259 133758 129988 59633817 16961559 42842118 42672258 21694332 19800095 23765841 68060679 93444196 135122805 1824949 2084218 2108186 1699379 4347605 3420662 500000 1200000 209132 250246 8989872 8654505 X 46714019 46128781 10212635 8476002 27527670 71863517 84454324 126468300 93444196 135122805 X -399269 42413245 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 12623 419595 0 0 1850735 X X X X FUNDRAISING 1 21716089 23091 -864713 1292510 19581957 17809651 1503552 3685993 1283107 21716089 15694279 1272028 1925739 1082395 17809651 21130804 144836 -4589300 992061 15694279 0.48480 0.46360 0.05160 1 0 6312078 6312078 42803006 8657890 34145116 1068806 800010 268796 9449927 7503659 1946268 42672258 BENEFICIAL INTERESTS IN TRUSTS HELD BY OTHERS 17287525 DONATED ARTWORK HELD FOR INVESTMENT 2648397 DONATED REAL ESTATE HELD FOR INVESTMENT 2626557 BENEFICIAL INTERESTS IN PARKER RANCH FOUNDATION 45498200 68060679 CHARITABLE GIFT ANNUITY LIABILITIES 238994 GENERAL EXCISE TAX LIABILITY 11252 250246 21376584 21775853 -399269 -1881893 46299027 -2003889 42413245 42013976 17642390 -1881893 -2003889 -3885782 21528172 -151588 -151588 21376584 21927441 151588 151588 21775853 0 21775853 PART III, LINE 4: THE ACADEMY MAINTAINS AN EXTENSIVE COLLECTION OF HAWAIIAN ART INCLUDING PAINTINGS AND HAND-MADE ARTIFACTS. ARTWORK IS DONATED TO THE ACADEMY AND MAINTAINED BY THE ISAACS ART GALLERY. ARTWORK IS KEPT FOR EDUCATIONAL PURPOSES, PRESERVATION OF HAWAIIAN CULTURE OR SOLD FOR FUNDRAISING PURPOSES. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ACADEMY'S ENDOWMENT INCLUDES 72 INDIVIDUAL DONOR-RESTRICTED FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. THE ACADEMY'S ENDOWMENT CONSISTS OF BOTH DONOR-RESTRICTED FUNDS AND FUNDS DESIGNATED BY THE BOARD TO FUNCTION AS ENDOWMENTS. NET ASSETS ASSOCIATED WITH THESE ENDOWMENT FUNDS, INCLUDING BOARD-DESIGNATED FUNDS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. THE ACADEMY HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. ENDOWMENT ASSETS INCLUDE THOSE ASSETS OF DONOR-RESTRICTED FUNDS THAT THE ACADEMY MUST HOLD IN PERPETUITY OR FOR A DONOR-SPECIFIED PERIOD AS WELL AS BOARD-DESIGNATED FUNDS. UNDER THIS POLICY, THE ENDOWMENT ASSETS ARE INVESTED IN A MANNER TO ENSURE THAT THE FUTURE GROWTH OF THE ENDOWMENT ASSETS IS SUFFICIENT TO OFFSET NORMAL INFLATION PLUS REASONABLE SPENDING, THEREBY PRESERVING THE CONSTANT DOLLAR VALUE AND PURCHASING POWER OF THE ENDOWMENT FUNDS FOR FUTURE GENERATIONS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE UNCERTAIN TAX POSITIONS TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THEY ARE MORE LIKELY THAN NOT TO FAIL UPON REGULATORY EXAMINATION. MANAGEMENT HAS EVALUATED THE ACADEMY'S TAX POSITIONS AS OF MAY 31, 2012 AND 2011 AND FOR THE YEARS THEN ENDED BY REVIEWING ITS INCOME TAX RETURNS AND CONFERRING WITH ITS TAX ADVISORS, AND DETERMINED THAT THE ACADEMY HAD NO UNCERTAIN TAX POSITIONS REQUIRED TO BE REPORTED IN ACCORDANCE WITH SUCH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE TAX RETURNS ARE OPEN FOR EXAMINATION UNTIL THE STATUTE OF LIMITATIONS EXPIRES. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGES IN BENEFICIAL INTERESTS IN TRUSTS HELD BY OTHERS -2,003,889. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGES IN BENEFICIAL INTERESTS IN TRUSTS HELD BY OTHERS -2,003,889. PART XII, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSES (NETTED AGAINST REVENUE PER TAX RETURN) -11,324. COST OF SALES - INVENTORY (NETTED AGAINST REVENUE PER TAX RETURN) -140,264. PART XIII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSES (NETTED AGAINST REVENUE PER TAX RETURN) 11,324. COST OF SALES - INVENTORY (NETTED AGAINST REVENUE PER TAX RETURN) 140,264. 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 NONDISCRIMINATORY POLICY PRINTED ON ADMISSION AND FINANCIAL AID PUBLICATION AND IN NEWSPAPER ADVERTISEMENTS. GOLF EVENT 19860 6700 13160 500 2703 3750 426 3945 19860 6700 13160 500 2703 3750 426 3945 11324 1836 1 STUDENT TUITION FINANCIAL AID 237 3024385 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE SCHOOL PROVIDES GRANTS IN THE FORM OF CREDITS AGAINST TUITION INVOICES. GRANT FUNDS ARE NOT ACTUALLY DISBURSED FROM THE SCHOOL. X X X X X 1 1 X X 0 0 0 0 0 0 0 0 0 LINDSAY R BARNES 186611 0 0 0 0 0 0 0 42318 0 228929 0 0 0 PART I, LINE 1A THE HEADMASTER AND SPOUSE MAY TRAVEL BETWEEN HAWAII AND THE U.S. MAINLAND UNDER AN ACCOUNTABLE PLAN ARRANGEMENT. THE HEADMASTER RESIDES ON CAMPUS AS A CONDITION OF EMPLOYMENT. THE HEADMASTER IS A MEMBER OF A COUNTRY CLUB FOR THE PURPOSE OF RECREATION, NETWORKING, AND ENTERTAINMENT. MARK NOETZEL PAYROLL ADVANCE, ONE YEAR PAYMENT SCHEDULE X 2000 192 0 0 1 192 BANK OF HAWAII (BOH) BOARD MEMBERS, DONNA TANOUE & MICHAEL CHUN, ARE OFFICERS/DIRECTORS OF BOH 110662 INVESTMENT MANAGEMENT FEES, INTEREST EXPENSE 0 FIRST HAWAIIAN BANK (FHB) BOARD MEMBER AND OFFICER MICHAEL FUJIMOTO IS ALSO A DIRECTOR OF FHB 103729 INVESTMENT MANAGEMENT FEES, INTEREST EXPENSE 0 X 35 47825 FAIR MARKET VALUE X 481 24297 FAIR MARKET VALUE X SADDLE 1 1250 FAIR MARKET VALUE X PALLET JACK 1 1000 FAIR MARKET VALUE X TRAVEL 4 2460 FAIR MARKET VALUE 15 0 1 0 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF ITEMS RECEIVED. FORM 990, PART IV, LINE 25A: DURING THE FISCAL YEAR COVERED BY THIS FORM 990, HPA DETERMINED THAT IT HAD PROVIDED EXCESS COMPENSATION TO A FORMER EMPLOYEE. ALTHOUGH THE EMPLOYEE DOES NOT APPEAR TO BE A DISQUALIFIED PERSON, HPA DISCLOSED THE COMPLETE DETAILS OF THE TRANSACTION, UNDER AN ABUNDANCE OF CAUTION, TO THE IRS IN A LETTER DATED MARCH 6, 2012. HPA ALSO DISCLOSED COMPLETE DETAILS OF THE TRANSACTION TO THE HAWAII ATTORNEY GENERAL'S OFFICE, WHICH HAS EXPRESSED SUPPORT FOR HPA'S CORRECTIVE ACTIONS. FORM 990, PART V: QUESTIONS 7G AND 7H ARE NOT APPLICABLE TO THE EXEMPT ORGANIZATION. AS SUCH, THEY HAVE BEEN LEFT BLANK. FORM 990, PART VI, SECTION A, LINE 2 DAVID W. PRATT (BOARD MEMBER) AND WILLIAM D. PRATT (BOARD MEMBER) HAVE A FAMILY RELATIONSHIP. PETER M. VITOUSEK (BOARD MEMBER) AND ROY A. VITOUSEK, III (BOARD MEMBER) HAVE A FAMILY RELATIONSHIP. DONNA TANOUE (BOARD MEMBER) & MICHAEL CHUN (BOARD MEMBER) HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 HPA'S ASSISTANT TREASURER WORKS WITH THE RETURN PREPARER TO COMPLETE THE FORM 990. THE RETURN IS PROVIDED TO THE AUDIT COMMITTEE FOR REVIEW. AUDIT COMMITTEE MEMBERSHIP INCLUDES THE PRESIDENT AND CHAIRMAN, TREASURER, VICE PRESIDENT AND ASSISTANT TREASURER. PRIOR TO FILING, THE CHAIR OF THE AUDIT COMMITTEE PROVIDES THE RETURN TO THE FULL BOARD AT A REGULARLY SCHEDULED MEETING. FORM 990, PART VI, SECTION B, LINE 12C A QUESTIONNAIRE IS SENT TO ALL BOARD MEMBERS PRIOR TO THE FILING OF THE FORM 990, EDUCATING THEM ABOUT THE ISSUE OF A CONFLICT OF INTEREST. THE COMMITTEE ON TRUSTEES REVIEWS INITIALLY AND ANNUALLY ALL TRANSACTIONS THAT MAY ARISE OR DO EXIST BETWEEN THE SCHOOL AND INDIVIDUALS WITH ACTUAL OR POTENTIAL CONFLICTS OF INTEREST, TRANSMITTING ITS RECOMMENDATIONS CONCERNING THE APPROPRIATENESS OF ANY SUCH TRANSACTIONS TO THE FULL BOARD OF TRUSTEES. THE BOARD OF TRUSTEES THEN DETERMINES WHETHER OR NOT TO PROCEED WITH SUCH TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES IS SOLELY RESPONSIBLE FOR DECISIONS REGARDING THE ENTIRE COMPENSATION PACKAGE FOR THE HEADMASTER, OTHER OFFICERS, AND KEY EMPLOYEES. A SUBCOMMITTEE OF INDEPENDENT PERSONS IS CHARGED WITH EXECUTING OUR OFFICER AND KEY EMPLOYEE COMPENSATION POLICY, INCLUDING COLLECTING DATA, MAKING A COMPENSATION RECOMMENDATION, AND FOLLOWING ALL DOCUMENTATION REQUIREMENTS. FORM 990, PART VI, SECTION C, LINE 19 FORM 1023 - AVAILABLE UPON REQUEST FORM 990 - AVAILABLE UPON REQUEST OR VIA WWW.GUIDESTAR.ORG GOVERNING DOCUMENTS - AVAILABLE UPON REQUEST (FACT DEPENDENT) CONFLICT OF INTEREST POLICY - NOT AVAILABLE (INTERNAL USE ONLY) FINANCIAL STATEMENTS - AVAILABLE UPON REQUEST OR VIA WWW.GUIDESTAR.ORG CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,881,893. PRIOR PERIOD ADJUSTMENTS: 46,299,027. CHANGES IN BENEFICIAL INTERESTS IN TRUSTS HELD BY OTHERS -2,003,889. TOTAL TO FORM 990, PART XI, LINE 5: 42,413,245. FORM 990, PART XII, LINE 2C: THE OVERSIGHT PROCESS OF THE AUDITED FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART XI, LINE 5, PRIOR PERIOD ADJUSTMENT: DURING THE YEAR ENDED MAY 31, 2012, THE ACADEMY RECOGNIZED ITS 16% BENEFICIAL INTEREST IN THE NET ASSETS AND CHANGES IN NET ASSETS IN PARKER RANCH FOUNDATION TRUST. THE RECOGNITION OF THE 16% BENEFICIAL INTEREST PARKER RANCH FOUNDATION TRUST INCREASED THE ACADEMY'S TOTAL ASSETS AND PERMANENTLY RESTRICTED NET ASSETS BY $45,498,200 AND $46,299,027 AS OF, RESPECTIVELY, IN THE STATEMENTS OF FINANCIAL POSITION, AND INCREASED ITS PERMANENTLY RESTRICTED NET ASSETS - BEGINNING OF YEAR ASSETS BY $45,406,565 AND ITS CHANGES IN BENEFICIAL INTERESTS IN TRUSTS HELD BY OTHERS BY $892,462 FOR THE YEAR ENDED MAY 31, 2011. THE ACADEMY'S FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED MAY 31, 2011 HAVE BEEN RESTATED TO INCLUDE ITS BENEFICIAL INTEREST IN AND THE CHANGES IN ITS BENEFICIAL INTEREST IN PARKER RANCH FOUNDATION TRUST. FORM 990, PART III, LINE 1: FOUNDED IN 1949, HAWAII PREPARATORY ACADEMY IS AN INDEPENDENT COEDUCATIONAL SCHOOL PROVIDING A FULL RANGE OF OPPORTUNITIES FOR STUDENTS FROM KINDERGARTEN THROUGH GRADE 12. OUR BOARDING PROGRAM ADMITS STUDENTS IN GRADES SIX THROUGH 12. HPA FEATURES MANY UNIQUE COURSES AND ACTIVITIES (MARINE SCIENCE FIELD STUDIES, SEA TURTLE RESEARCH, SCUBA CERTIFICATION, AND MORE) THAT MAKE USE OF HAWAII'S GEOGRAPHICAL SETTING AND GIVE STUDENTS A STRONG SENSE OF HAWAII AND ITS CULTURE. OFFERINGS ALSO INCLUDE PROGRAMS IN THE VISUAL AND PERFORMING ARTS AS WELL AS A SUCCESSFUL UPPER SCHOOL INTERSCHOLASTIC ATHLETIC PROGRAM THAT STRESSES SCHOOL-WIDE PARTICIPATION AND TEACHES THE VALUES OF SPORTSMANSHIP AND FAIR PLAY. THE SCHOOL HAS TWO CAMPUSES IN THE TOWN OF WAIMEA (KAMUELA) ON THE ISLAND OF HAWAII. THE LOWER AND MIDDLE SCHOOLS ARE LOCATED ON NINE ACRES IN THE HEART OF HAWAII'S RANCHING COUNTRY, WHILE THE UPPER SCHOOL IS LOCATED JUST TWO MILES AWAY ON A 200-ACRE CAMPUS AT THE FOOT OF THE KOHALA MOUNTAINS. HPA IS FULLY ACCREDITED BY THE WESTERN ASSOCIATION OF SCHOOLS AND COLLEGES AND IS A MEMBER OF 12 EDUCATIONAL ORGANIZATIONS INCLUDING THE COUNCIL FOR THE ADVANCEMENT AND SUPPORT OF EDUCATION, COLLEGE ENTRANCE EXAMINATION BOARD, COUNCIL FOR SPIRITUAL AND ETHICAL EDUCATION, CUM LAUDE SOCIETY, NATIONAL ASSOCIATION OF COLLEGE ADMISSION COUNSELORS, HAWAII ASSOCIATION OF INDEPENDENT SCHOOLS, AND NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS. VISIT HTTP://WWW.HPA.EDU/ABOUT FOR MORE INFORMATION REGARDNG HPA'S ENROLLMENT, FACULTY, COLLEGE COUNSELING PROGRAM, SPORTS AND CO-CURRICULAR ATIVITIES, ADVANCED PLACEMENT PREPARATION, AND USE OF TECHNOLOGY IN THE LEARNING PROCESS. HAWAII PREPARATORY ACADEMY ALUMNI ASSOCIATION INC 65-1692 KOHALA MOUNTAIN ROAD KAMUELA HI 96743 990225471 SUPPORT HAWAII PREPARATORY ACADEMY HI 501(C)(3) LINE 11 N/A 0 HAWAII PREPARATORY ACADEMY PARENTS ASSOCIATION INC 65-1692 KOHALA MOUNTAIN ROAD KAMUELA HI 96743 237105675 SUPPORT HAWAII PREPARATORY ACADEMY HI 501(C)(3) LINE 11 N/A 0 PARKER RANCH FOUNDATION TRUST 66-1304 MAMALAHOA HIGHWAY KAMUELA HI 96743 996064620 SUPPORT HAWAII PREPARATORY ACADEMY AND OTHER HAWAII ORGANIZATIONS HI 501(C)(3) LINE 11 - TYPE 1 N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PARKER RANCH FOUNDATION TRUST C 320000 CASH