The Protestant Episcopal High School in Virginia

“The school's collections are made up of art objects and other artifacts of historical and educational significance. Each item is documented for educational significance and activities verifying their existence and assessing their condition are performed periodically.”

“The overall financial objective is to provide financial support for the school's operations at a level consistent with maintaining or increasing the purchasing power over time. The school's policy is to appropriate 4.5% of the rolling twelve quarter average of the june 30 endowment value to support operations.”

“The school is generally exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code. However, the school is subject to income taxes on unrelated business income, as defined by the internal revenue service. Activities unrelated to the exempt purpose are tennis and swim club memberships and the school invests in certain alternative investments, which generated no tax and, accordingly, no provision for income taxes is required in the accompanying financial statements. According to the accounting standard for uncertainty in income taxes for the period from the school's inception to june 30, 2019, no unrecognized tax provision or benefit existed. Deferred income taxes are provided using the liability method, whereby, deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates on the date of enactment. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the accompanying balance sheet, along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Management believes there are no positions that would result in additional tax liability. The school files income tax returns in the u.s. Federal jurisdiction. As of june 30, 2019, and for the year then ended, there were no material unrecognized/derecognized tax benefits or tax penalties or interest. Generally, the school is no longer subject to u.s. Federal income tax examinations by tax authorities for years before 2016.”

“Financial aid netted against tuition revenue -7,351,728. Change in value of split interest agreements 19,543,708. Allowance and discount on pledges -2,601,029.”

“Financial aid netted against tuition revenue 7,351,728.”