Robert Louis Stevenson School

“The organization's form 990 was prepared by professional, independent accountants. The board of trustees delegated the review of form 990 to the audit committee, members of which have practical and/or professional expertise in nonprofit management, accounting, and federal tax law governing exempt organizations. This committee reviewed the form 990 prepared by the organization's professional, independent accountants. Prior to the organization submitting form 990 to the irs, the committee reported to the board of trustees that the committee had, to the best of its ability, determined that the form 990 was complete, accurate and correct, and a copy of the return was provided for each board member.”

“The amended and restated bylaws of the corporation (approved 10/10/2008) at article ix, section 4 provide: "no trustee of this corporation nor any other corporation, firm, association, or other entity in which one or more of this corporation's trustees are directors, officers or have a material financial interest, shall be interested, directly or indirectly, in any contract or transaction with this corporation, unless (a) the material facts regarding that trustee's financial interest in such contract or transaction or regarding such common director relationship or officer relationship are fully disclosed in good faith and noted in the minutes, or are known to all members of the board prior to the board's consideration of such contract or transaction; (b) such contract or transaction is authorized in good faith by a majority of the board by a vote sufficient for that purpose without counting the votes of the interested trustees; (c) before authorizing or approving the transaction, the board considers and in good faith decides after reasonable investigation that the corporation could not obtain a more advantageous arrangement with reasonable effort under the circumstances; and (d) the corporation for its own benefit enters into the transaction, which is fair and reasonable to the corporation at the time the transaction is entered into."each of the requirements related to board disclosure, authorization, investigation and benefit analysis as described in the foregoing bylaw provision are complied with in all instances regarding conflicts of interest and permanently noted in the minutes of the board of trustees. The business office monitors key principals and personnel involved in all contracts and transactions entered into by the school. Any situations which are or might be considered a conflict of interest are brought to the attention of the school president, board chairman and general counsel for appropriate consideration, disposition, disclosure and approval in accordance with the school's policies and procedures. Effective february 18, 2011, the board of trustees of the school approved a resolution prohibiting the school from entering into any new transactions with trustees then serving in office (and concluding existing transactions with trustees prior to 6-30-11) in which a trustee holds any material financial interest except for compensation contracts and transactions in the ordinary course of business with employees of the school who are also trustees, contracts and transactions in which services are provided to the school without any fee paid or economic benefit provided in return and purchase and lease agreements for goods or property provided to the school at or below fair market value.”

“15a. The compensation of the school's president is reviewed annually by the board's compensation committee and submitted for approval to the board of trustees. In this regard, the committee reviews the school's performance in key operating areas against established goals and objectives and discusses the results with the school's chief financial officer. In addition, the committee receives a "safe harbor letter" from an independent and highly regarded compensation expert whose database of information includes applicable comparability data for other peer schools. The committee analyzes and discusses this data as well as the school's operating performance, documents their conclusions and makes a recommendation to the full board as to the proper level of compensation for the president.15b. Compensation of the school's other key employees (e.g. Chief financial officer, director of advancement, director of admission, heads of upper and lower schools, etc.,) is determined by the school president. In making his decision on compensation, the president utilizes benchmark compensation data received from independent organizations such as the national association of independent schools, california association of independent schools, etc. He also reviews comparative compensation data retrieved from form 990, schedule j from a competetive set of appoximately 30 peer schools. This information helps him determine the reasonableness of salary increase recommendations for this group of employees. Lastly, he then reviews each employees performance and makes a final determination. The president also reviews compensation data for key school employees with the board of trustees. The compensation committee also reviews this data independently to ensure the fairness and reasonableness of the school president's salary increase recommendations.”

“The financial statements are available to the public through the form 990. No other documents or policies are disclosed.”

“Chg in allowance for doubtful accounts = -$107000”

“N/d federal income tax = -$6012”

“Tax to book diff from k-1 = -$47705”

“Unrealized loss in charitable remainder trust = -$25262”