At the Manchester School District meeting questions were raised about our financial practices based on our form 990 public disclosure filings. In response, the Board of Trustees asked our auditors to investigate discrepancies between our audited financial statements and the 990 filing. Our auditors uncovered two errors as explained below in a letter they sent to the Board of Trustees. From our auditors:
"We have reviewed the filings of the original form 990 for the years ending June 30, 2009 through 2012 and have determined that we did not complete Schedule D, part V correctly. It appears that we entered only the activity related to permanently restricted funds (donor endowment, original corpus only) rather than the activity for all donor endowments and board-designated (quasi) endowments as reflected in the audited financial statements. We have prepared amended returns to correct the relevant sections. We apologize for this oversight and regret any negative consequences that may have arisen as a result.
We have also corrected Schedule J for each return, which originally indicated that the headmaster has a "discretionary spending account" as part of his compensation package. In fact, there is an account for school operations that is titled "Headmaster's Discretionary Fund," but this is an endowed fund whose purpose is to support school operations and, therefore, is not part of the headmaster's compensation package."
"We have enjoyed our relationship with the Academy during the past four years.
Burr and Burton Academy Board of Trustees