Bullis School Inc.

“The form 990 will be reviewed by the board finance committee, which performs the functions of an audit committee in addition to its other financial responsibilities. Once the finance committee is satisfied with the form 990, it will go to the full board of trustees for review and approval.”

“Each board member is required each fall to review the board conflict of interest policy, and sign a statement that certifies that they understand the policy, agree to comply with the policy, and have no conflicts as described in the policy. If a conflict exists or is perceived, the board member is required to notify the board chair. The chief financial officer monitors all transactions between all disqualified persons (which includes all board members) and the school to ensure that the conflict of interest policy is being fully complied with. If the chief financial officer finds a transaction that appears to violate the conflicts policy, he/she notifies the head of school and board chair, who then meet with the disqualified person to investigate the potential conflict and resolve it in a manner that complies with the conflicts policy.”

“For the head of school, each time the board enters into an employment contract with the head of school (generally every three to five years), an ad hoc board compensation committee is formed to follow a procedure that is designed to obtain a rebuttal presumption of reasonableness. 1. All board members chosen for the compensation committee are queried to ensure that no member has a personal interest in the compensation decision. 2. Compensation (salary and benefits) comparability data is obtained for the dozen or so dc-area independent schools that most clearly resemble bullis in enrollment, budget, and assets. The comparability data is obtained from the national association of independent schools and from the association of greater washington independent schools. 3. The comparability data is tabulated and compared to the proposed compensation for the head of school. The compensation committee decides whether the proposed compensation is reasonable in light of what comparable schools are currently paying their heads, and makes adjustments to the proposed compensation as necessary to ensure reasonableness and comparability. 4. The compensation committee documents the basis for its determination concurrently with the approval. Documentation includes terms of the proposed compensation, members of the committee who were present and voted, and the comparability data and how it was obtained. 5. The compensation committee then meets with the head search committee (if one exists) to present its determination, and the search committee finalizes the offer to the head. 6. The major details of the head contract are then presented to the full board of trustees for their information and acceptance. Every few years during a head's contract term, a slightly less formal version of this process is followed to ensure that compensation increases awarded the head under the current contract remain reasonable compared to like schools.”

“The board has no specific policy on this matter. The school's practice is to share these documents on request with individuals or organizations that have a legitimate business need to see the documents. These documents are available for the same period of disclosure as set forth in section 6104(d).”

“See schedule l, part iii, for additional information regarding any trustees, officers, key employees, and highly compensated employees who were granted tuition remission. Tuition remission is offered to faculty and administrators.”

“Change in value of swap -1,228,661. Interest rate cap loss -14,375.”