Mount Tamalpais School

“Dr. Kathleen mecca and dr. Andrew mecca were married. Before dr. Andrw mecca became the interim head of school, he was a trustee.”

“Board members dan murray and elizabeth murray are siblings.”

“In september of 2015, the board of trustees discovered that a former employee had established a separate bank account in the name of the school, and that such account was used to divert school funds. The board retained legal counsel who, in turn, engaged a forensic accountant to conduct a comprehensive investigation into the nature of the bank account, the actions of the former employee, and the school's overall finances. The forensic accountant determined that, between 2008 and 2015, the former employee had deposited $630,774 of school funds into the separate account. During the same period, the former employee authorized, issued, or caused $651,223 in payments to be made from that account. The payments out of the account were primarily made to the former employee's personal bank and credit card accounts. The forensic accountant determined that $60,608 of school funds were diverted during the fiscal year ended june 30, 2015. Because these assets were never recorded on the school's general ledger, the losses are not recorded on the summarized financial statements. The account was closed by the former employee before the board became aware of its existence. In addition to the amounts deposited into and paid out of the unauthorized account described above, the forensic accountant determined that, during the period from 2008 to 2015, the former employee caused the school to pay $408,903 in personal and school credit card charges without documentation to substantiate the business purposes thereof. The forensic accountant determined that $99,810 of that amount was paid during the fiscal year ended june 30, 2015. This $99,810 amount has been included in diversion of assets in the summarized statement of activities and changes in net assets for the year ended june 30, 2015. The board of trustees has carefully considered various options of how the school can best repair the damage caused by the former employee and recoup as much of the diverted funds as is feasible, including submitting notification to the school's insurance carrier of the diversions described above. After an extensive period of negotiations, the school has entered into a settlement agreement with the former employee pursuant to which the former employee has agreed to provide for restitution of a significant portion of the diverted funds. In august 2016, the school recovered $548,460 from the former employee according to the settlement agreement. It was also discovered that the former employee's employer matching contribution to her retirement account was more than what is authorized and stated in the plan document. Because the former employee is a disqualified person, the overfunding is a prohibited transaction. Such discriminatory transactions could subject the school to excise taxes and penalties which cannot be determined at this time. The excess employer contribution for the plan years ended august 31, 2008 through 2015 was $88,589 and calculated earnings on the excess employer matching contributions was $14,615. In august 2016, the total amount of $103,204 was transferred out of the former employee's retirement account and deposited into the retirement plan's forfeiture account. The school has engaged and involved outside legal, accounting, and other professional advisors in attempting to undo the diversion of the funds to the extent possible. At no time were any trustees (other than the former employee who caused the diversion of funds), officers, or other persons exercising substantial influence over the affairs of the school aware that these diversions of funds were taking place, and at no time did the former employee have any authority or approval to engage in such actions. The school has retained the services of an experienced business manager to implement financial controls and practices to protect the assets of the school and to best ensure that no similar diversions of funds occur in the future. The school has also hired additional personnel to implement”

“The school's form 990 is prepared by an outside accounting firm. The form 990 is then reviewed by the school's cpa and head of school before the return in finalized. Members of the board of trustees are provided a copy of the return before it is finalized.”

“Mount tamalpias has a written conflict of interest policy and form that they have all trustees and head of school sign. These were signed in august 2016.”

“The board or subcommittee approved the head of school's compensation.”

“Records are available to the public upon request. In addition, operating information is published in the annual report.”

“Mount tamalpais school (the school) is an independent, coeducational school serving students in kindergarten through grade 8. The school's program, atmosphere and overall environment have been designed to encourage the development of the whole child, with an emphasis on strong academic preparation, values, emotional growth, personal and social skills, effective thinking and problem solving capabilities, with attention to individual strengths and diversity. The school places equal emphasis on the academic and social development of each student within a community that esteems family, the pursuit of personal excellence, the perpetuation of valued traditions and the development of a strong moral code. The symbolism of the school's logo and translation of the school's motto clearly illustrate the school's philosophy. The logo is a depiction of mount tamalpais. This mountain symbol reflects the school's commitment to the development of each student's potential, ensuring its realization with a solid academic and moral foundation and the support of the community that values personal achievement and individual growth. The motto "gradatim ad summum" (step by step to the top/gradually to the summit) reflects the school's belief that the attainment of goals is a gradual process, one that requires nurturing and community support. The school provides its students with the opportunity for growth in a caring, supportive environment. The school fosters enthusiasm for learning and for the creative process, and carefully nurtures in each student the development of a system of individual values. It is the school's mission that integrity, responsibility, motivation, mutual respect, self-reliance, and an appreciation of tradition flourish in each individual.”

“There was no change in the overview or selection process.”