Tower Hill School Association

“Form 990 is reviewed and approved by the head of school and the audit committee. Prior to filing, the final draft of the form 990 is made available to the board of trustees for their review.”

“Trustees are required annually to sign conflict of interest statements and disclose any known or potential conflicts of interest in these statements and as they arise throughout the year.”

“Each year, the compensation committee of the board conducts a benchmark analysis to evaluate all components of the head of school's compensation package, including base salary, school-wide benefits, deferred compensation, other compensation, housing, excess remission, and vehicle usage. The benchmark group includes tower hill school and 38 other similarly-situated schools in the us. The compensation committee documents the meeting, including a full list of those present and their independence, and the process used to conduct their review. The committee then presents their recommendation to the full board for review.”

“Governing documents, financial statements and form 990 are held with the school and may be made available upon request.”

“The school's audited financial statements reflect a net gain of $2.8 million. This gain includes $4.3 million in unrealized gains on investments, which are required to be excluded from revenue on the 990. This required adjustment to revenue for 990 purposes leads to an apparent loss on the 990 of $1.3 million. This loss reflects a difference in recording of revenue for 990 purposes, not a true loss for the fiscal period covered by the tax return.”

“The school now prepares its financial statements on a gaap basis, which requires the allocation of overhead expenses, such as utilities, technology and support staff, to the fundraising department. This allocation results in a large increase in the reported total for fundraising expenses this year. Fundraising activities, including outreach to alumni, have increased in preparation for the school's upcoming centennial.”

“The school's policy is to use a modified cash basis of accounting. The following areas have been accounted for on a strict cash basis: - operating expenditures - capital expenses - contributions revenue - tuition revenue - all other miscellaneous revenue and expenses the following areas have been accounted for on an accrual basis: - tuition prepayments - employee loans - any bank debts - miscellaneous reserves and student funds”

“The audit committee is responsible for the oversight of the audit and selection of the independent accountant. This process remains unchanged from the prior year.”