St. Johnsbury Academy

“The academy manages its endowment funds, including donor restricted and board designated endowments, in accordance with the laws of the state of vermont, specifically the uniform prudent management of institutional funds act. Accordingly, the academy has adopted investment and spending policies for endowment assets that are reviewed annually and 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. The academy has a policy of appropriating for distribution each year an annual draw from its endowment fund. Each year the investment committee reviews the present circumstances and future plans for the academy, and recommends a drawing figure based on both near and longer term considerations. The spending rate calculation weights inflation at 70% and current endowment value at 30%. The policy will allow the spending rate to rise following periods of low returns and fall following periods of high returns, but maintain close to a 4.5% spending rate over time. This is consistent with the academy's objective of maintaining the purchasing power of the endowment assets held in perpetuity or for a specified term, as well as providing additional real growth through new gifts and investment return. The spending is to be used first in accordance with donor restrictions, if any, and then for operations, support of capital expenditures investments, scholarships to students, or other board-designated purposes.”

“Each year, management considers whether any material tax position the academy has taken is more likely than not to be sustained upon examination by the applicable taxing authority. Management believes that any positions the academy has taken are supported by substantial authority and, therefore, do not need to be measured or disclosed in these financial statements. Tax returns for years subsequent to june 30, 2011 are subject to examination by tax authorities.”

“Fundraising events expenses included in program expenses for financial stmts 10,098. Increase in fair value of beneficial interest in trust 43,792. Unrealized actuarial loss on valuation of deferred compensation liability -43,547.”

“Investment management fees 102,384. Gross up revenues for scholarship expense netted out in financial statements 1,576,819. Loss on equipment disposal included in other loss for financial stmts -236,483.”

“Fundraising events expenses included in program expenses for financial stmts 10,098. Loss on equipment disposal included in other loss for financial stmts 236,483.”

“Gross up revenues for scholarship expense netted out in financial statements 1,576,819. Investment management fees 102,384.”