Worcester Academy

“The school's endowment consists of endowment funds established for a variety of purposes. Its endowment includes both donor restricted endowment funds and funds designated by the board of trustees to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed or legal restrictions. Endowment funds include invested gifts. The board of trustees has interpreted the provisions of the uniform prudent management of institutional funds act (upmifa) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations of the contrary. As a result of the interpretation, the school classifies as permanently restricted net assets the original value of gifts donated to the permanent endowment and accumulations to the permanent endowment in accordance with the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the school in a manner consistent with the standard of prudence prescribed by upmifa. In accordance with upmifa, the school considered the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: 1 - the duration and preservation of various funds; 2 - the purposes of the donor-restricted endowment funds; 3 - general economic conditions; 4 - the possible effect of inflation and deflation; 5 - the expected total return from income and the appreciation of investments; 6 - other resources of the school; and 7 - the school's investment policies. The school has adopted investment and spending policies, approved by the board of trustees, for endowment funds that strive to provide a stable source of returns to support the ongoing operation and activities of the school while seeking to achieve a long-term rate of return through both capital appreciation and investment yields sufficient to produce real growth of fund assets, net of spending requirements, inflation and investment expenses. Endowment funds are invested in a diversified asset mix, which is intended to result in a consistent inflation-protected rate of return and sufficient liquidity to make annual distributions as determined by committees of the board of trustees. The school targets a diversified asset allocation and manages its investment strategies to achieve its objectives within prudent risk constraints. The school's annual spending appropriation is determined by the finance committee in consultation within the investment committee using average market values and investment returns for the previous three years.”

“Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the school has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the school's statements of financial position, or the related statements of activities, or cash flows.”

“Change in value of beneficial interest 586,814. Workers comp insurance rebate 16,163.”

“Financial aid 5,565,271. Summer program expenses 231,230.”

“Workers comp insurance rebate 16,163.”

“Financial aid 5,565,271. Summer program expenses 231,230. Change in value of interest rate swap 13,728.”