Island Pacific Academy Inc.

“A copy of the form 990 is provided to the board of trustees for review prior to filing.”

“If the board considers entering into any transaction or arrangement with a corporation, entity, or individual in which a board member has an interest: a. The interested board member must disclose the potential conflict of interest to the board; b. The board may ask the interested board member to leave the meeting during discussion of the matter that gives rise to the potential conflict; c. The interested board member will not vote on the matter that gives rise to the potential conflict; d. The board must approve the transaction or arrangement by a 2/3 majority vote of disinterested board members at a duly called meeting of the board; and e. The board meeting minutes must state which board members were not present for the discussion and vote, the content of the discussion, and any roll call of the vote.”

“For the head of school position, the board obtained and reviewed the national association of independent schools ("nais") salary data for other heads of school positions. The board approved the head of school's compensation which is considered to be in the 40 percentile of other nais heads.”

“For other officers or key employees, the board obtained and reviewed the national association of independent schools ("nais") salary data for other similar positions. The board approved the other officers- or key employees' compensation.”

“Copies are available in the business office and can be reviewed upon request.”

“Island pacific academy has grounded its educational program in a mission to provide an environment where students develop: strength of character, based upon the core values of respect for others, recognition of the inherent value of each human being, generosity of spirit and the power of human kindness; commitment to become involved citizens both within their communities and the world- citizens who understand and practice democratic values; confidence to maximize the use of their intellectual, academic, physical, artistic, and creative gifts in preparation for college and as long-life learners. Vision: i mua me ka ha'aheo go forward with confidence our purpose is to provide children with an academically challenging and developementally appropriate educational experience led by talented and caring teachers in a nurturing and supportive learning environment. Our goal is to graduate young men and women whose performance matches their abilites and refelcts the fundamental values of kindess and generosity of spirit. Ipa enrolled its first students in september 2004. Under the leadership of the founding headmaster, dr. Daniel white, the school has grown from 200 original students to a current enrollment of approximately 525, and graduated its first class of 45 seniors in may 2010. Ipa's current head of school is gerald tamamae.”

“The balance sheet amounts represent the audited financial statements for the fiscal years ended june 30, 2016 and 2015. In september 2009, island pacific academy ("academy") entered into an agreement with island pacific foundation ("foundation") to sell the building and transfer the option agreement to purchase the land that the academy uses for operations. Since the academy is the co-obligor on the debt secured by the foundation for the purchase, and is required to make payments to the foundation equal to the debt service requirements, the building continues to be reflected in the audited financial statements of the academy at its net book value. On august 14, 2015, the foundation sold the real property the academy uses for operations to a third-party who in turn established a long-term lease with the academy to continue to use the school property. Furthermore, the mortgages of the foundation were forgiven making the academy no longer liable as co-obligor on the debt. Since the academy is no longer liable for the debt, the real property and debt have been removed from the balance sheet of the academy as a gain on sale of property for book purposes. However, as the academy was not the legal owner of the real property and the mortgages, the gain on sale of property has been treated as a gain per book, not reported on form 990. See sch. D, part xi.”

“Financial aid and grants -509,527 tuition remissions -283,300 gain on sale of property 12,777,512 rental expenses 109,261 ipa book store cost of goods sold 7,134 direct fundraising expenses 5,052 rental expenses -109,261 ipa book store cost of goods sold -7,134 direct fundraising expenses -5,052 financial aid and grants 509,527 tuition remissions 283,300 contribution expense to ipaf 143,104 total 12,920,616”