Heathwood Hall Episcopal School

“The underlying financial information supporting the Form 990 was previously considered when the Board was presented the annual audited financial statements. Once completed, a copy of the Form 990 is made available and Board Members are encouraged to examine it in detail and to contact school management with any questions. In addition, the Form 990 is posted to Guidestar in its entirety.”

“Heathwood Hall annually provides its trustees with the school's conflict of interest policy and asks them to return a signed form disclosing anything they believe could be a conflict of interest. If there are any potential conflicts disclosed, they are reviewed by the audit committee. School personnel also monitor invoices, contracts, etc. for possible transactions between the school and trustees or their companies.”

“The Board of Trustees reviewed national, regional and state-wide salary and benefit comparisons when setting compensation for the Head of School. Compensation is based on the requirements of the position and experience level of the position holder.”

“The Head of the School has the responsibility of setting the compensation for the school's employees. When examining the compensation for key employees, the Head of the School looks at national, regional and state-wide data for comparison. In addition, for similarly situated schools, he uses the 990 information that is publicly available on Guidestar.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public through multiple outlets.”

“The organization had no reportable payments to a vendor requiring compliance with backup withholding rules, nor did they provide any reportable gaming, gambling, or winnings to a prize winner during the calendar year.”

“On September 1, 2022, the school paid in full its existing $6,600,000 of South Carolina Jobs-Economic Development Authority Tax-Exempt Adjustable Bonds that were outstanding. Also on September 1, 2022, the School entered into a new transaction with South Carolina Jobs-Economic Development Authority and a financial institution. The new transaction had three parts:1) A $6,600,000 Educational Facilities Refunding Revenue Bond, known as the Series 2022A Bond. This refinancing of the original debt has a seventeen year maturity and monthly principal and interest payments based on a thirty year amortization. The tax-free interest rate is fixed at 3.69%.2) An up to $14,693,115 Educational Facilities Revenue Bond, known as the Series 2022B Bond, for the purposes of financing various capital improvements, including but not limited to, (a) new equipment and facilities for the Lower School and Middle School playgrounds, (b) renovation and expansion of the auditorium and arts building, and (c) renovation and expansion of athletics facilities located on the campus of the school. The proceeds of this loan may be drawn for a period of threeyears (interest paid monthly), which will be followed by fourteen years of principal and interest payments based on a thirty year amortization. The tax-free interest rate is fixed at 3.69%.3) An up to $3,406,885 Taxable Term Loan, for the purposes of financing a) a building and climbing structure (known as the PEAK project), (b) renovation and expansion of the outdoor and indoor Chapels, and (c) costs of issuance for all parts of the September 1, 2022 debt. The proceeds of this loan may be drawn for a period of three years (interest paid monthly). $200,000 annual principal payments will begin October 1, 2025 and will extend through October 1, 2028, with the remainingprincipal balance due on September 1, 2029. The taxable interest rate is fixed at 4.39%.”