2012-12-17T15:06:19-06:00 2012-06-30 560574444 CHERRY BEKAERT & HOLLAND LLP 1111 METROPOLITAN AVENUE SUITE 1000 CHARLOTTE NC 28204 990 2011-07-01 560935064 CANNON SCHOOL INC CANN 7047868171 5801 POPLAR TENT ROAD CONCORD NC 28027 STEVE JONES 7047868171 2012-12-14 1 JANICE A RATICA P00358837 7043771678 2011 2016-02-24 21:20:13Z STEVE JONES 5801 POPLAR TENT ROAD CONCORD NC 28027 16146679 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 878 STUDENTS WERE ENROLLED AT THE SCHOOL DURING THE FISCAL YEAR 2012 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. 21 21 268 30 0 0 844449 630972 13428700 15121411 100607 201967 74482 77925 14448238 16032275 991588 1885254 0 0 9118548 9317663 0 0 424235 4064071 4612988 14174207 15815905 274031 216370 31003725 31134797 15074456 15372565 15929269 15762232 PROVISION OF A QUALITY K-12 EDUCATIONAL PROGRAM WITHIN A SAFE, DIVERSE, AND CHALLENGING ENVIRONMENT. 0 0 12904245 1885254 15175411 PRIMARY AND SECONDARY EDUCATION WHICH BENEFITS STUDENTS WITHOUT REGARD TO RACE, RELIGION OR NATIONAL ORIGIN. THE SCHOOL SERVED APPROXIMATELY 878 STUDENTS DURING FISCAL YEAR 2012. 12904245 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 51 2 1 268 1 0 0 0 0 0 0 0 0 0 1 0 X 21 21 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 RUSS ANDREWS 1.00 X 0 0 0 KRISTIN BAKER 1.00 X 0 0 0 BOB BRATTON 1.00 X 0 0 0 FRED BRYANT 1.00 X 0 0 0 CHRIS GRUBER 1.00 X 0 0 0 TOM KABASAKALIAN 1.00 X 0 0 0 GERALD KURTZ 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 ANN SAUNDERS 1.00 X 0 0 0 RICHARD SCHACHNER JR 1.00 X 0 0 0 ANTHONY SPARROW 1.00 X 0 0 0 SUSAN SCHNEIDER 1.00 X X 0 0 0 TIM TYSINGER 1.00 X X 0 0 0 DAVID POWELL 1.00 X X 0 0 0 LISA LIVINGSTON 1.00 X X 0 0 0 MATTHEW GOSSAGE 40.00 X 343755 0 37251 STEPHEN JONES 40.00 X 122663 0 14313 466418 0 51564 2 0 1 0 CAROLINA CLEANING SOLUTIONS PO BOX 1167 KANNAPOLIS NC 28082 JANITORIAL CONTRACTOR 183180 WGM DESIGN INC 916 WEST 5TH STREET SUITE 200 CHARLOTTE NC 28202 ARCHITECHTURAL DESIGN SERVICES 145882 2 630972 33284 630972 TUITION AND FEES 900099 13802263 13802263 OTHER AUXILIARY ACTIVI 900099 570223 570223 TRANSPORTATION FEES 900099 333011 333011 BEYOND THE BELL FEES 900099 249424 249424 CAMP CANNON FEES 900099 166490 166490 15121411 141016 141016 23925 0 23925 23925 23925 172956 2399 93267 21137 79689 -18738 60951 60951 OTHER REVENUE 900099 54000 54000 54000 16032275 15175411 0 225892 1885254 1885254 517982 517982 7224402 6387231 578111 259060 487872 400974 70175 16723 515739 425207 76567 13965 571668 471955 80894 18819 53574 53574 28395 28395 81278 81278 130761 65380 65381 155873 103967 51906 141130 94134 46996 793386 585374 208012 412239 412239 1032423 1032423 95113 63440 31673 CURRICULUM EXPENSES 405235 405235 BOOSTER ORGANIZATIONS 234477 234477 SUMMER CAMP/SCHOOL STOR 218324 218324 ATHLETIC EXPENSES 166169 166169 664611 364701 249623 50287 15815905 12904245 2487425 424235 6252458 5336128 3276547 5097545 728329 353642 585787 516523 100000 80000 28154 18441 140989 169981 25030742 9345757 16045736 15684985 3756211 3811909 89514 65643 31003725 31134797 636373 875290 5490003 5630712 8190000 7745000 29961 17378 728119 1104185 15074456 15372565 X 14201733 14371401 682478 278383 1045058 1112448 15929269 15762232 31003725 31134797 X 216370 -383407 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3754924 89390 -48099 72956 3723259 3064129 77469 645210 31884 3754924 2784413 62158 399254 23699 3222126 3374348 16100 -573835 32200 2784413 0.70000 0.30000 0 0 501819 501819 19945277 7604769 12340508 4566146 1740988 2825158 17500 17500 15684985 EQUITIES 706321 F MUTUAL FUNDS - EQUITIES 1814251 F MUTUAL FUNDS - FIXED INCOME 1291337 F 3811909 VALUATION OF DERIVATIVE INSTRUMENT 888462 CAPITAL LEASES 215723 1104185 16032275 15815905 216370 -196372 -187035 -383407 -167037 13735219 -196372 -2072289 -2268661 16003880 28395 28395 16032275 13902256 0 13902256 28395 1885254 1913649 15815905 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, 2012 AND 2011; ACCORDINGLY, NO LIABILITY HAS BEEN ACCRUED. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN FAIR VALUE OF SWAP -325,950. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE 138,915. TOTAL TO SCHEDULE D, PART XI, LINE 8: -187,035. PART XII, LINE 2D - OTHER ADJUSTMENTS: FINANCIAL AID AND SCHOLARSHIPS SHOWN NET OF TUITION ON FINANCIALS -1,885,254. CHANGE IN FAIR VALUE OF SWAP -325,950. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE 138,915. PART XIII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID AND SCHOLARSHIPS SHOWN NET OF TUITION ON FINANCIALS 1,885,254. 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 AND CANNON IS A MEMBER OF THIS ORGANIZATION. 1 FINANCIAL AID 166 1885254 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 1 1 X X X X 0 1 0 0 0 0 0 0 0 MATTHEW GOSSAGE 343755 0 0 0 0 0 19600 0 17651 0 381006 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. ON OCCASION, THE HEAD OF SCHOOL TRAVELS WITH HIS SPOUSE FOR OUT OF TOWN CONFERENCES. HE UTILIZES FUNDS FROM HIS DISCRETIONARY ACCOUNT TO PAY FOR HIS OWN PROFESSIONAL DEVELOPMENT IN ADDITION TO THE COST FOR HIS SPOUSE TO TRAVEL WITH HIM. PART I, LINE 4B THE HEAD OF SCHOOL, MATTHEW GOSSAGE, PARTICIPATES IN A 457 NON-QUALIFIED DEFERRED COMPENSATION PLAN. THE SCHOOL DOES NOT CONTRIBUTE ANY AMOUNTS TO THE PLAN AS IT IS FOR EMPLOYEE DEFERRALS ONLY. NC CAPITAL FACILITIES FINANCE AGENCY 561592154 65818PBY4 2010-03-03 9035000 REFUNDING OF FACILITIES CONSTRUCTION BONDS 0 0 0 9035000 9035000 2010 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 80000 0 1 1 80000 MATTHEW GOSSAGE MATTHEW GOSSAGE IS THE HEAD OF SCHOOL FOR THE ORGANIZATION 35070 TUITION ASSISTANCE X COMPUTER SOFTWARE & KITCHEN EQUIP 2 33284 FAIR MARKET VALUE 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW 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. THE COMPENSATION DETERMINATION PROCESS IS DOCUMENTED IN THE MEETING MINUTES. 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 LOSSES ON INVESTMENTS: -196,372. CHANGE IN FAIR VALUE OF SWAP -325,950. ADJUSTMENT TO PLEDGES RECEIVABLE VALUE 138,915. TOTAL TO FORM 990, PART XI, LINE 5: -383,407.