Worcester Academy

“The school's endowment consists of individual donor-restricted funds established for a variety of purposes. Its endowment includes 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. As required by generally accepted accounting principles, the school classifies as donor restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by the school in a manner consistent with the standard of prudence prescribed by state law. In accordance with the uniform prudent management of institutional funds act, the school may consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: the duration and preservation of the fund; the purposes of the school and the donor-restricted endowment fund; general economic conditions; the possible effect of inflation and deflation; the expected total return from income and the appreciation of investments; other resources of the school; and the investment policies of the school. 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. Actual returns in any given year may vary from this amount. The school's annual spending appropriation is determined by the finance committee in consultation with the investment committee using average market values and investment returns for the previous three years. In establishing this policy, the school considered the long-term expected return on its endowment. This is consistent with the school's objective to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor imposed restrictions require the school to retain as a fund of perpetual duration. The school may appropriate for expenditure from these underwater endowment funds in accordance with the prudent measures prescribed by state law. As of june 30, 2019, funds with an original gift value of $144,077 were underwater by $3,146. As of june 30, 2018, funds with an original gift value of $1,330,709 were underwater by $3,750.”

“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 65,958. Workers comp insurance rebate 18,966. Special event expense 37,797. Cell tower expenses 170,739. Change in value of split interest agreements -16,791.”

“Financial aid 5,661,908. Summer program expenses 197,346.”

“Workers comp insurance rebate 18,966. Special event expense 37,797. Cell tower expenses 170,739.”

“Financial aid 5,661,908. Summer program expenses 197,346.”