2024-05-02T14:57:18-05:00 2023-06-30 111986323 MARCUM LLP 1 MONTGOMERY STREET SUITE 1700 SAN FRANCISCO CA 94104 990 2022-07-01 941666217 THE CHARLES ARMSTRONG SCHOOL CHAR 6505920780 1405 SOLANA DRIVE BELMONT CA 94002 JULIE SCHILLING CHIEF FINANCIAL OFFICER 6505920780 2024-04-30 1 JULIE SCHILLING 999009999 0 ROGER BULOSAN P00221282 4154326200 2024-04-30 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z JULIE SCHILLING 1405 SOLANA DRIVE BELMONT CA 94002 14959648 0 X WWW.CHARLESARMSTRONG.ORG X 1968 CA TO PROVIDE SPECIALIZED EDUCATION TO STUDENTS WITH SPECIFIC LANGUAGE DISABILITIES, MAINLY, DYSLEXIA. 16 16 119 35 0 0 2677931 1410460 11335905 12711142 518957 442157 321335 89365 14854128 14653124 1981061 2000446 0 0 9385637 10239463 0 0 661770 2433263 2670081 13799961 14909990 1054167 -256866 28344387 29715082 11321376 12188319 17023011 17526763 CHARLES ARMSTRONG SCHOOL UNLOCKS THE UNIQUE POTENTIAL OF STUDENTS WITH DYSLEXIA AND RELATED LEARNING DIFFERENCES, CHANGING THE TRAJECTORY OF THEIR LIVES. 0 0 11295320 2000446 12851833 THE SCHOOL PROVIDES SPECIAL EDUCATIONAL SERVICES FOR APPROXIMATELY 235 STUDENTS, GRADE 2-8, WITH SPECIFIC LANGUAGE DISABILITIES, PRIMARILY DYSLEXIA. 11295320 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 14 0 1 119 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 16 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X X JULIE SCHILLING 6505927570 1405 SOLANA DRIVE BELMONT CA 94002 OMAR AGUILAR TRUSTEE - TREASURER 1.00 X X 0 0 0 BETSY BERMAN TRUSTEE - SECRETARY 1.00 X X 0 0 0 ERIC BLUESTEIN TRUSTEE 1.00 X 0 0 0 KIM BOTTOMS TRUSTEE 1.00 X 0 0 0 FARAH CHAMPSI TRUSTEE 1.00 X 0 0 0 JENNA ELLIS TRUSTEE - VICE CHAIR 1.00 X X 0 0 0 MICHAEL GLASER TRUSTEE 1.00 X 0 0 0 MICHAEL HUSKINS TRUSTEE 1.00 X 0 0 0 ORI KATZ TRUSTEE 1.00 X 0 0 0 LARS LUND TRUSTEE 1.00 X 0 0 0 RAQUEL GARCIA MCGOVERN TRUSTEE 1.00 X 0 0 0 MARK MOORE TRUSTEE 1.00 X 0 0 0 LILY PANYACOSIT SHIELDS TRUSTEE 1.00 X 0 0 0 ADOLFO RIEDEL TRUSTEE 1.00 X 0 0 0 GRACE SHANAHAN TRUSTEE 1.00 X 0 0 0 KATIE STOREY TRUSTEE - BOARD CHAIR 1.00 X X 0 0 0 NEIL TUCH HEAD OF SCHOOL 40.00 X 304342 0 38262 ANDY BRYANT CFO (TO 08/19/22) 40.00 X 149103 0 6971 JULLIE SCHILLING CFO (FROM 01/23/23) 40.00 X 0 0 0 SARAH FOX DIRECTOR OF LOWER SCHOOL & RESEARCH 40.00 X 156771 0 18708 ELISSA WHORL CHIEF OF STAFF 40.00 X 141114 0 1666 MARY CUNNINGHAM DIRECTOR OF TEACHING AND LEARNING 40.00 X 139494 0 19108 BRIAN BARISH DIRECTOR OF ADMISSIONS 40.00 X 135964 0 15893 RHONDA ORR DIRECTOR OF TECHNOLOGY 40.00 X 126232 0 20284 1153020 0 120892 32 0 1 0 0 99972 1310488 1410460 TUITION REVENUE 611600 12273274 12273274 SUMMER SCHOOL 611600 322000 322000 DAY CARE 611600 115868 115868 12711142 353713 353713 218382 126110 3828 92272 -3828 88444 88444 176586 99972 176586 0 OTHER REVENUE 611600 140691 140691 CHANGE IN NET ASSETS CHARLES ARMS 611600 -51326 -51326 89365 14653124 12851833 0 390831 2000446 2000446 515809 174829 299476 41504 7643814 6248398 1013254 382162 426778 321932 85977 18869 1038946 769262 226678 43006 614116 499188 84244 30684 36699 36699 348923 7024 279230 62669 58752 8649 14421 35682 43276 14907 11210 17159 193148 114355 62598 16195 211943 64557 147386 82181 70028 11908 245 644971 374117 270854 94821 94821 CURRICULUM AND SUPPLIES 537389 537389 MAINTENANCE AND CUSTODI 202347 202347 RECRUITING 97149 61516 35633 DONOR RELATIONS AND HOS 34995 20997 13998 83487 7726 62166 13595 14909990 11295320 2952900 661770 2920555 1415773 212873 558005 0 36000 4560258 5288235 150093 107467 12705143 6583780 6387186 6121363 13980146 16177401 133276 10838 28344387 29715082 1290887 1332364 10030489 10855955 11321376 12188319 X 13324837 13551104 3698174 3975659 17023011 17526763 28344387 29715082 -256866 760618 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2932938 100 319021 132656 3119403 3606016 1000 -541677 132401 2932938 2995658 400 734846 124888 3606016 2953956 350 158502 117150 2995658 2838876 11100 217715 113735 2953956 0.72000 0.28000 0 0 361420 361420 7768722 4081135 3687587 2135582 842368 1293214 2002874 1367164 635710 436545 293113 143432 6121363 X 13413296 760618 760618 12652678 2000446 2000446 14653124 12909544 0 12909544 2000446 2000446 14909990 PART V, LINE 4: THE SCHOOL'S ENDOWMENT CONSISTS OF 10 INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. ITS ENDOWMENT INCLUDES ONLY DONOR-RESTRICTED ENDOWMENT FUNDS. AS REQUIRED BY U.S. GAAP, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. THESE NET ASSETS INCLUDE GIFTS WITH RESPECT TO WHICH DONORS HAVE STIPULATED, AS A CONDITION IN THE GIFT INSTRUMENT THAT THE PRINCIPAL IS TO BE HELD INDEFINITELY. THE MILFORD-HENRY ENDOWMENT FUND (THE "FUND") WAS ESTABLISHED DURING THE YEAR ENDED JUNE 30, 1995. THE FUND WAS ESTABLISHED WITH THE UNDERSTANDING THAT, SHOULD THE SCHOOL MERGE WITH ANOTHER ORGANIZATION OR CEASE TO EXIST, THE CORPUS OF THE FUND WILL REVERT TO THE EUGENE WATSON MILFORD ENDOWMENT FUND AT FURMAN UNIVERSITY, GREENVILLE, SOUTH CAROLINA. ENDOWMENT EARNINGS ARE RESTRICTED AS FOLLOWS: TO SUPPORT STUDENT SCHOLARSHIPS O HARVEY FAMILY FINANCIAL AID ENDOWMENT O BILL MATTISON ENDOWMENT FUND O FINANCIAL ASSISTANCE ENDOWMENT O RICHARD M. BOTLEY AND MALVINA BOTLEY SCHOLARSHIP ENDOWMENT FUND O MARK COPLEN SANTANA SCHOLARSHIP ENDOWMENT FUND TO SUPPORT TEACHERS' RETENTION AND RECRUITMENT O TEACHER RETAINMENT AND RECRUITMENT ENDOWMENT TO SUPPORT STUDENT ENRICHMENT O CHARLES DORSEY MEMORIAL ENDOWMENT THE ENDOWMENT EARNINGS FROM THE SCHOOL ENDOWMENT FUND, MATTISON ENDOWMENT FUND AND THE MILFORD-HENRY ENDOWMENT FUND HAVE NO PURPOSE RESTRICTIONS. INTERPRETATION OF RELEVANT LAW THE BOARD OF TRUSTEES OF THE SCHOOL HAS INTERPRETED CALIFORNIA'S ENACTED VERSION OF THE UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT ("UPMIFA") AS REQUIRING THE PRESERVATION OF THE FAIR VALUE OF THE DONOR-RESTRICTED ENDOWMENT FUNDS ABSENT EXPLICIT DONOR STIPULATIONS TO THE CONTRARY. AS A RESULT OF THIS INTERPRETATION, THE SCHOOL CLASSIFIES AS PERMANENT NET ASSETS (A) THE ORIGINAL VALUE OF GIFTS DONATED TO THE PERMANENT ENDOWMENT, (B) THE ORIGINAL VALUE OF SUBSEQUENT GIFTS TO THE PERMANENT ENDOWMENT, AND (C) ACCUMULATIONS TO THE PERMANENT ENDOWMENT MADE IN ACCORDANCE WITH THE DIRECTION OF THE APPLICABLE DONOR GIFT INSTRUMENT. THE REMAINING PORTION OF THE DONOR-RESTRICTED ENDOWMENT FUND THAT IS NOT CLASSIFIED AS PERMANENT ENDOWMENT IS CLASSIFIED AS EXPENDABLE RESTRICTED NET ASSETS UNTIL THOSE AMOUNTS ARE APPROPRIATED FOR EXPENDITURE BY THE SCHOOL IN A MANNER CONSISTENT WITH THE STANDARD OF PRUDENCE PRESCRIBED BY UPMIFA. IN ACCORDANCE WITH UPMIFA, THE SCHOOL CONSIDERS THE FOLLOWING FACTORS IN MAKING A DETERMINATION TO APPROPRIATE OR ACCUMULATE DONOR-RESTRICTED ENDOWMENT FUNDS: (1) THE DURATION AND PRESERVATION OF THE FUND (2) THE PURPOSES OF THE SCHOOL AND THE DONOR-RESTRICTED ENDOWMENT FUND (3) GENERAL ECONOMIC CONDITIONS (4) THE POSSIBLE EFFECT OF INFLATION AND DEFLATION (5) THE EXPECTED TOTAL RETURN FROM INCOME AND THE APPRECIATION OF INVESTMENTS (6) OTHER RESOURCES OF THE SCHOOL (7) THE INVESTMENT POLICIES OF THE SCHOOL. RETURN OBJECTIVES AND RISK PARAMETERS THE SCHOOL HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. ENDOWMENT ASSETS INCLUDE THOSE ASSETS OF DONOR-RESTRICTED FUNDS THAT THE SCHOOL MUST HOLD IN PERPETUITY OR FOR DONOR-SPECIFIED PERIODS OR PURPOSES. UNDER THIS POLICY, AS APPROVED BY THE BOARD OF TRUSTEES, THE DONOR RESTRICTED ENDOWMENT FUNDS SHALL BE INVESTED WITH THE OBJECTIVES OF SAFETY OF CORPUS, GROWTH, AND RETURN AND MAY BE INVESTED IN ANY NUMBER OF AUTHORIZED INVESTMENT TOOLS THAT MEET THESE OBJECTIVES. THE INVESTMENT GOAL OF THESE FUNDS IS TO OBTAIN A MINIMUM TOTAL RATE OF RETURN EQUAL TO A COMPARABLE MARKET INDEX, WHILE NOT INCURRING MORE RISK THAN SUCH INDEX. STRATEGIES EMPLOYED FOR ACHIEVING OBJECTIVES TO SATISFY ITS LONG-TERM RATE-OF-RETURN OBJECTIVES, THE PERFORMANCE OF THESE INVESTMENTS IS MEASURED AGAINST ESTABLISHED EQUITY AND FIXED INCOME INDICES TO PROVIDE FOR THE (A) PRESERVATION OF CAPITAL, (B) CURRENT INCOME, AND (C) LONG-TERM GROWTH OF CAPITAL AND INCOME. TO SATISFY ITS LONG-TERM RATE-OF-RETURN OBJECTIVES, THE SCHOOL RELIES ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED) AND CURRENT YIELD (INTEREST AND DIVIDENDS). THE SCHOOL TARGETS A DIVERSIFIED ASSET ALLOCATION OF 30% TO 42% DOMESTIC EQUITIES, 20% TO 28% INTERNATIONAL EQUITIES, 21% TO 35% U.S. BONDS AND 9% TO 15% INTERNATIONAL BONDS. SPENDING POLICY AND INVESTMENT OBJECTIVES ALL INTEREST, DIVIDENDS, AND CAPITAL GAINS SHALL BE REINVESTED IN THE ENDOWMENT. IT IS THE POLICY OF THE SCHOOL TO ANNUALLY PAYOUT 4% OF THE TRAILING TWELVE QUARTERS' AVERAGE OF THE ENDOWMENT'S TOTAL MARKET ASSET VALUE, WITH THE EXPECTATION OVER TIME THAT THE TOTAL RETURN FROM INVESTMENTS WILL EXCEED THE ENDOWMENT'S SPENDING POLICY, THUS ALLOWING REAL GROWTH OF ENDOWMENT ASSETS. THE RATE MAY BE ADJUSTED UPWARDS OR DOWNWARDS BASED ON THIS MONITORING, BY UNUSUAL MARKET CONDITIONS, OR BY THE VOTE OF THE BOARD OF TRUSTEES. FROM TIME TO TIME, THE FAIR VALUE OF ASSETS ASSOCIATED WITH INDIVIDUAL DONOR-RESTRICTED ENDOWMENT FUNDS MAY FALL BELOW THE LEVEL THAT THE DONOR OR UPMIFA REQUIRES THE SCHOOL TO RETAIN AS A FUND OF PERPETUAL DURATION. THE SCHOOL HAS A POLICY THAT PERMITS SPENDING FROM UNDERWATER ENDOWMENT FUNDS DEPENDING ON THE DEGREE TO WHICH THE FUND IS UNDERWATER UNLESS OTHERWISE PRECLUDED BY DONOR INTENT OR RELEVANT LAWS AND REGULATIONS. AT JUNE 30, 2023, THERE WERE NO SUCH DEFICIENCIES. THE ENDOWMENT'S OBJECTIVE IS TO PRESERVE CAPITAL AND NOT INVADE ITS PRINCIPAL. WHILE IT IS THE INTENT TO MEET THIS POLICY, AT ANY TIME, IF CIRCUMSTANCES DICTATE A SHORT-TERM EXTRAORDINARY NEED FOR CASH, THE SPENDING RATE, OR METHODOLOGY MAY BE CHANGED UPON APPROVAL OF THE BOARD OF TRUSTEES. THIS IS CONSISTENT WITH THE SCHOOL'S OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY OR FOR A SPECIFIED TERM AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NEW GIFTS AND INVESTMENT RETURN. PART X, LINE 2: THE SCHOOL IS A QUALIFIED ORGANIZATION EXEMPT FROM FEDERAL INCOME AND STATE FRANCHISE TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC") AND SECTION 23701D OF THE CALIFORNIA REVENUE AND TAXATION CODE, RESPECTIVELY. ACCORDINGLY, THE SCHOOL IS EXEMPT FROM FEDERAL AND CALIFORNIA INCOME TAXES AND IS NOT LIABLE FOR FEDERAL UNEMPLOYMENT TAXES. U.S. GAAP REQUIRES MANAGEMENT TO EVALUATE THE TAX POSITIONS TAKEN AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF THE SCHOOL HAS TAKEN AN UNCERTAIN TAX POSITION THAT MORE-LIKELY-THAN-NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY TAXING AUTHORITIES. MANAGEMENT EVALUATED THE SCHOOL'S TAX POSITIONS AND CONCLUDED THAT IT MAINTAINED ITS TAX-EXEMPT STATUS AND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THEREFORE, NO PROVISION OR LIABILITY FOR UNKNOWN INCOME TAXES HAS BEEN INCLUDED IN THE FINANCIAL STATEMENTS. THE SCHOOL'S TAX RETURNS ARE SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. HOWEVER, THERE ARE NO EXAMINATIONS IN PROGRESS NOR ARE THERE ANY PENDING. PART XI, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST REVENUE ON AUDITED FINANCIAL STATEMENTS 1,977,071. SUMMER SCHOOL FIN. AID NETTED AGAINST REVENUE ON AUDITED FINACIAL STATEMENTS 23,375. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID NETTED AGAINST REVENUE ON AUDITED FINANCIAL STATEMENTS 1,977,071. SUMMER SCHOOL FIN. AID NETTED AGAINST REVENUE ON AUDITED FINACIAL STATEMENTS 23,375. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 THE SCHOOL'S NONDISCRIMINATORY POLICY IS STATED IN THE WEBSITE UNDER ADMISSIONS: HTTPS://WWW.CHARLESARMSTRONG.ORG/ADMISSIONS COMMUNITY FUNDRAISING 276558 99972 176586 1554 11074 50747 113211 276558 99972 176586 1554 11074 50747 113211 176586 0 1 FINANCIAL AID GRANTS FOR TUITION ASSISTANCE 69 2000446 FMV TUITION ASSISTANCE PART I, LINE 2: FINANCIAL AID IN THE FORM OF TUITION ASSISTANCE IS AWARDED TO STUDENTS BASED ON FINANCIAL NEED. FAMILIES MUST RE-APPLY EACH YEAR AND PROVIDE EVIDENCE OF INCOME SUCH AS TAX RETURNS. AWARDS ARE MADE BY A COMMITTEE WHICH REVIEWS THE FAMILY APPLICATIONS AND OTHER FINANCIAL DATA REQUIRED BY THE SCHOOL. 1 X X X X 0 0 0 0 0 0 0 0 0 NEIL TUCH HEAD OF SCHOOL 304342 0 0 0 0 0 0 0 38262 0 342604 0 0 0 SARAH FOX DIRECTOR OF LOWER SCHOOL & RESEARCH 156771 0 0 0 0 0 0 0 18708 0 175479 0 0 0 MARY CUNNINGHAM DIRECTOR OF TEACHING AND LEARNING 139494 0 0 0 0 0 0 0 19108 0 158602 0 0 0 ANDY BRYANT CFO (TO 08/19/22) 149103 0 0 0 0 0 0 0 6971 0 156074 0 0 0 BRIAN BARISH DIRECTOR OF ADMISSIONS 135964 0 0 0 0 0 0 0 15893 0 151857 0 0 0 FORM 990, PART VI, SECTION B, LINE 11B THE PUBLIC DISCLOSURE COPY WAS PROVIDED TO AND REVIEWED BY THE PRESIDENT OF THE BOARD OF TRUSTEES, THE CHAIR OF THE FINANCE COMMITEE AND THE CHAIR OF THE AUDIT COMMITTEE. IN ADDITION, THE PUBLIC DISCLOSURE COPY WAS PROVIDED TO THE FULL BOARD BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL BOARD MEMBERS ARE REQUIRED TO COMPLETE A DISCLOSURE STATEMENT REGARDING CONFLICTS OF INTEREST. THE CONFLICT OF INTEREST POLICY IS LOCATED ON PAGE 8 OF THE EMPLOYEE HANDBOOK. ALL EMPLOYEES ARE REQUIRED TO READ AND VERIFY THAT THEY HAVE READ THE EMPLOYEE HANDBOOK. FORM 990, PART VI, SECTION B, LINE 15 HEAD OF SCHOOL COMPENSATION PACKAGES ARE REVIEWED AND COMPARED TO THOSE IN COMPARABLE SCHOOLS. THE HEAD OF SCHOOL COMPENSATION IS REVIEWED BY AN AD HOC COMMITTEE OF THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION C, LINE 19 ALL GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2(C) THERE IS NO CHANGE IN THE PROCESS FROM PRIOR YEARS. FORM 990, PART V, LINE 14(B) THIS ORGANIZATION DOES NOT OFFER NOR PROVIDE TANNING SERVICES. CHARLES ARMSTRONG SCHOOL PARENT GROUP 1405 SOLANA DRIVE BELMONT CA 94002 943023841 TO PROVIDE DIRECT AND INDIRECT SUPPORT TO THE CHARLES ARMSTRONG SCHOOL CA 501(C)(3) 509(A)(1) 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 CHARLES ARMSTRONG SCHOOL PARENT GROUP C 51326 CASH VALUE