2024-05-15T16:42:48-05:00 2023-06-30 231980475 KREISCHER MILLER 100 WITMER ROAD SUITE 350 HORSHAM PA 190442369 990 2022-07-01 231178880 VALLEY FORGE MILITARY ACADEMY FOUNDATION VALL 6109891200 1001 EAGLE ROAD WAYNE PA 19087 JOHN LANETTI JR CHIEF FINANCIAL OFFICER & TREA 6109891200 2024-05-15 1 JOHN LANETTI JR 999009999 1 CHRISTOPHER M PEKULA P00734965 2154414600 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z COL STUART B HELGESON 1001 EAGLE ROAD WAYNE PA 19087 19739148 0 X WWW.VFMAC.EDU X 1928 PA EDUCATIONAL INSTITUTION FOCUSED ON BUILDING LEADERSHIP THROUGH A MILITARY ENVIRONMENT . 10 10 152 20 6568 314 5030868 3238403 11025122 10307118 539087 9289366 293744 359085 16888821 23193972 3187990 3146054 0 0 5868365 6020885 0 0 534888 9450215 9699795 18506570 18866734 -1617749 4327238 38578501 43710785 11197497 10619090 27381004 33091695 X TO EDUCATE CADETS, WITH IN AN ACADEMIC AND MILITARY ENVIRONMENT, TO BE FULLY PREPARED FOR THEIR RESPONSIBILITIES AS CITIZEN LEADERS WHO ARE MENTALLY ALERT, SOUND IN BODY, CONSIDERATE OF OTHERS AND POSSESSED OF LOVE OF GOD AND COUNTRY,HIGH MORAL STANDARDS AND STRONG CHARACTER TRAITS THAT WILL MAKE ALL A CREDIT TO THEMSELVES, THEIR FAMILIES, THEIR ALMA MATER, THEIR COUNTRY, AND THEIR GOD. 0 0 12270664 3146054 10307118 VALLEY FORGE PROVIDES CADETS WITH AN EDUCATIONAL EXPERIENCE BUILT ON OUR FIVE CORNERSTONES: ACADEMIC EXCELLENCE, CHARACTER DEVELOPMENT, PERSONAL MOTIVATION, PHYSICAL DEVELOPMENT, AND LEADERSHIP. A VALLEY FORGE EDUCATION IS ROOTED IN QUALITY ACADEMIC PROGRAMS SUPPORTED BY LEADERSHIP RESPONSIBILITIES AND STRONG ATHLETIC AND EXTRACURRICULAR OPPORTUNITIES. THE SCHOOL HOSTED 236 STUDENTS DURING THE YEAR. 12270664 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 1 6 0 1 152 1 1 1 0 0 0 0 1 1 0 1 1 0 0 0 X 10 10 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X JOHN LANETTI CFO 6109891200 1001 EAGLE ROAD WAYNE PA 19087 JOHN ENGLISH CHAIRMAN 1.00 X X 0 0 0 COL JOSEPH A BARTASIUS BOARD MEMBER 1.00 X 0 0 0 WILLIAM R FLOYD JR BOARD MEMBER 1.00 X 0 0 0 MARK KELTON BOARD MEMBER 1.00 X 0 0 0 DR WILLIAM H MARTOCCIA JR BOARD MEMBER 1.00 X 0 0 0 J KENT MCNEW BOARD MEMBER 1.00 X 0 0 0 CONRAD E MUHLY IV BOARD MEMBER 1.00 X 0 0 0 DR CHRISTINE ANNE ROYCE BOARD MEMBER 1.00 X 0 0 0 GEORGE H SCHILDGE BOARD MEMBER 1.00 X 0 0 0 JONATHAN TRATT BOARD MEMBER 1.00 X 0 0 0 COL STUART HELGESON PRESIDENT 40.00 X 188364 0 34971 ERIC SAUL 7122 TO 11722 CHIEF FINANCIAL OFFICER 40.00 X 131264 0 23682 JOHN LANETTI 11722 TO 63023 CHIEF FINANCIAL OFFICER 40.00 X 13569 0 5821 333197 0 64474 2 1 1 0 GLENVEAGH CONSTRUCTION 29 MOUNT PLEASANT ROAD UNIT 1 ASTON PA 19014 CONSTRUCTION 1248579 WHITSON'S CULINARY GROUP 10 SENTRY PARKWAY SUITE 110 BLUE BELL PA 19422 FOOD SERVICE 784861 KEYSTONE SPORTS CONSTRUCTION 180 GORDON DRIVE SUITE 107 EXTON PA 19341 CONSTRUCTION 652364 POWERS PYLES SUTTER & VERVILLE PC 1501 M STREET NW 7TH FLOOR WASHINGTON DC 20005 LEGAL SERVICES 399440 RILEY RIPER HOLLIN & COLAGRECO 717 CONSTITUTION DRIVE SUITE 201 EXTON PA 19341 LEGAL SERVICES 335866 8 85180 1322449 1830774 123252 3238403 TUITION AND FEES 611600 10022893 10022893 SUMMER CAMP PROGRAM 611600 150000 150000 HOUSING RENTALS 611600 134225 134225 10307118 137674 137674 134225 127657 6568 6568 6568 1170184 4368304 2170184 -5783388 -1000000 10151692 9151692 9151692 22000 85180 30723 -8723 -8723 OTHER INCOME 900099 341973 341973 RIFLE CLUB 713990 19267 19267 361240 23193972 10307118 6568 9641883 3146054 3146054 397671 397671 5163942 3436289 1520772 206881 459272 376193 64717 18362 1681365 65706 1607504 8155 645752 25235 617385 3132 106982 4589 101805 588 819422 139240 614730 65452 80328 80328 241547 51250 190297 98774 23507 67422 7845 381600 918 380682 1311050 1311050 1318326 -2920 1321246 FOOD SERVICE 1350780 1348982 1782 16 UTILITIES 751860 0 751860 0 PROFESSIONAL AND CONSUL 416608 141004 275604 0 UNIFORMS 204102 193352 10750 0 291299 3321265 -3254423 224457 18866734 12270664 6061182 534888 1486180 2375363 181878 173029 141086 5000000 81743 81743 800692 1033785 54653235 39259171 16003877 15394064 9105887 8289521 10918244 11222194 38578501 43710785 4131874 4360297 4161936 1661221 900000 600000 1995743 3117132 7944 880440 11197497 10619090 X 4187443 9156245 23193561 23935450 27381004 33091695 38578501 43710785 X 4327238 849092 230412 303949 X 0 1 X 1 1 1 X 1973095 1817308 1817308 5030868 3238403 13876982 1973095 1817308 1817308 5030868 3238403 13876982 13876982 502429 234073 369606 222478 271899 1600485 35289 331516 206408 267524 361240 1201977 16679444 0.83200 0.81480 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10548347 45300 207808 750000 10051455 12135210 62470 -576333 973000 100000 10548347 11258900 34235 1839650 683300 314275 12135210 11550312 55706 249482 596600 11258900 11056710 817790 356712 680900 11550312 0.09090 0.82020 0.08890 1 0 1086614 1086614 46338927 32421525 13917402 6874008 6837646 36362 353686 353686 15394064 INTEREST IN CHARITABLE REMAINDER TRUSTS 1279280 INTEREST IN PERPETUAL CHARITABLE TRUSTS 9942914 11222194 DUE TO VFMA ACADEMY 880440 880440 X 21137029 849092 431606 1280698 19856331 3337641 3337641 23193972 15656750 127657 127657 15529093 3337641 3337641 18866734 PART X, LINE 2: THE FOUNDATION HAS BEEN RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS A TAX-EXEMPT ORGANIZATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND IS EXEMPT FROM FEDERAL INCOME TAXES PURSUANT TO SECTION 501(C)(1) OF THE IRC. NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THE ACCOMPANYING FINANCIAL STATEMENTS. FOR THE YEARS ENDED JUNE 30, 2023 AND 2022, THE FOUNDATION DID NOT IDENTIFY ANY UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN, WHICH WOULD REQUIRE ADJUSTMENT TO OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE FOUNDATION IS POTENTIALLY SUBJECT TO FEDERAL, STATE, AND LOCAL EXAMINATIONS FOR YEARS SUBSEQUENT TO JUNE 30, 2019. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF CHARITABLE REMAINDER TRUSTS -67,652. CHANGE IN VALUE OF PERPETUAL CHARITABLE TRUSTS 371,601. RENTAL EXPENSES 127,657. PART XI, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID 3,199,967. INVESTMENT FEES 137,674. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 127,657. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID 3,199,967. INVESTMENT FEES 137,674. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 ADVERTISING INCLUDES THE REQUIRED STATEMENTS REGARDING OUR RACIAL NONDISCRIMINATORY POLICY IN BOTH PRINT AND RADIO. SCHEDULE E, PART I, LINE 6 VALLEY FORGE MILITARY ACADEMY AND COLLEGE RECEIVES A GRANT THROUGH THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY INSTITUTIONAL ASSIST GRANT PROGRAM. X X PA GOLF OUTING 107180 85180 22000 22520 8203 107180 85180 22000 22520 8203 30723 -8723 1 VARIOUS SCHOLARSHIPS AND AWARDS 230 3146054 PART I, LINE 2: VF AWARDS INTERNAL MERIT SCHOLARSHIPS BASED ON THE CADET'S GRADES (GPA) FROM HIS/HER PREVIOUS SCHOOL AND FINANCIAL NEED. THERE IS A MATRIX USED TO DETERMINE THE AMOUNT TO BE AWARDED TO EACH CADET. THERE ARE ALSO AID AWARDS WHICH ARE BASED ON SUBMITTED FAFSA FORMS. BOTH FEDERAL AND STATE GOVERNMENTS HAVE CHARTS DETERMINING AID SUCH AS THROUGH PHEAA AND PELL GRANTS. X 1 1 X X 0 0 0 0 0 0 0 0 0 COL STUART HELGESON PRESIDENT 188364 0 0 0 0 0 6000 0 28971 0 223335 0 0 0 ERIC SAUL 7122 TO 11722 CHIEF FINANCIAL OFFICER 131264 0 0 0 0 0 0 0 23682 0 154946 0 0 0 WILLIAM R FLOYD JR TRUSTEE OPERATING CASH FLOW X 100000 0 1 1 GEORGE H SCHILDGE TRUSTEE OPERATING CASH FLOW X 100000 100000 0 1 1 MICHAEL A NOLEN FORMER TRUSTEE OPERATING CASH FLOW X 100000 0 1 1 RICHARD A HOCKER FORMER TRUSTEE OPERATING CASH FLOW X 150000 150000 0 1 1 CONRAD E MUHLY IV TRUSTEE OPERATING CASH FLOW X 100000 100000 0 1 1 JONATHAN TRATT TRUSTEE OPERATING CASH FLOW X 250000 250000 0 1 1 JOHN ENGLISH CHAIRMAN OPERATING CASH FLOW X 100000 0 1 1 600000 X 2 99001 DONOR SUPPLIED X COMPUTER EQUIPMENT 1 6689 DONOR SUPPLIED X WEIGHT TRAINING EQUIPMENT 1 6400 DONOR SUPPLIED X KITCHEN EQUIPMENT 1 6004 DONOR SUPPLIED X TEACHING DONATION 1 5158 DONOR SUPPLIED 0 0 0 FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION RECEIVES A COPY OF THE 990 FROM THE ACCOUNTING FIRM PREPARING THE RETURN. THE CFO REVIEWS THE 990. AFTER REVIEW BY THE CFO, THE FORM IS PRESENTED TO THE BUDGET, AUDIT AND FINANCE (BAF) COMMITTEE FOR ITS REVIEW, APPROVAL AND RECOMMENDATION. THEN, THE BAF COMMITTEE PRESENTS THE FORM TO THE FULL BOARD OF TRUSTEES FOR ITS REVIEW AND APPROVAL PRIOR TO THE FILING OF THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL QUESTIONNAIRE IS SENT TO ALL BOARD MEMBERS AND SENIOR STAFF MEMBERS DOCUMENTING WHETHER THEY ARE INVOLVED IN ANY BUSINESS WITH THE FOUNDATION THAT COULD BE CONSTRUED AS GIVING RISE TO A POTENTIAL CONFLICT OF INTEREST. FAMILY AND BUSINESS RELATIONSHIPS ARE SPECIFICALLY INDICATED IN THE QUESTIONNAIRE AS BEING SOURCES OF POTENTIAL CONFLICTS. THESE QUESTIONNAIRES ARE SIGNED BY EACH BOARD MEMBER AND SENIOR STAFF MEMBER AND RETURNED TO THE FOUNDATION'S CFO FOR MONITORING OF POTENTIAL CONFLICTS. ANY TRANSACTIONS WITH AN INTERESTED PARTY ARE AT ARM'S LENGTH AND ARE DISCLOSED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S BOARD OF TRUSTEES DETERMINES THE COMPENSATION FOR THE PRESIDENT USING VARIOUS METHODS THAT ENSURE THAT COMPENSATION IS IN LINE WITH THE FAIR MARKET RANGE FOR THE INDUSTRY. SURVEYS PROVIDED BY ORGANIZATIONS THAT SERVE AS CONSORTIUMS OF INDEPENDENT SCHOOLS ARE REFERENCED AND REVIEWED AS WELL AS FORMS 990 OF OTHER, SIMILAR ORGANIZATIONS. THE DISCUSSIONS AND DECISION BY THE EXECUTIVE COMMITTEE TAKE PLACE IN CLOSED SESSION, HOWEVER, THE PRESIDENT'S COMPENSATION PACKAGE IS DISCUSSED WITH AND PRESENTED TO THE BOARD PRIOR TO THE FINAL DECISION. OTHER KEY EMPLOYEES HAVE THEIR COMPENSATION PACKAGE RESEARCHED BY THE HUMAN RESOURCES DEPARTMENT INCLUDING COMPARISON WITH INDUSTRY STANDARDS. THESE PACKAGES ARE PRESENTED TO THE PRESIDENT FOR REVIEW AND FINAL APPROVAL AFTER DISCUSSIONS WITH THE BOARD PRIOR TO THE FINAL DECISION. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF PERPETUAL CHARITABLE TRUSTS 371,601. CHANGE IN VALUE OF CHARITABLE REMAINDER TRUSTS -67,652. MANAGEMENT'S PLANS FOR CONTINUED OPERATIONS AS PART OF THE COVID-19 PANDEMIC FUNDING, THE ORGANIZATION IS EXPECTING TO RECEIVE $1.1 MILLION IN LATE FISCAL YEAR 2023. THE FOUNDATION HAS SUSTAINED RECURRING NEGATIVE CHANGES IN OPERATING NET ASSETS AND NEGATIVE CASH FLOWS FROM OPERATIONS. AS A RESULT, THE FOUNDATION HAS BORROWED MOST OF THE AVAILABLE BALANCE ON ITS ONE LINE OF CREDIT, BORROWED FROM TRUSTEES, AND BORROWED FROM ITS DONOR-RESTRICTED ENDOWMENT TO MEET THE OPERATING NEEDS OF THE FOUNDATION. THE FOUNDATION HAS IMPLEMENTED STRATEGIES TO CORRECT NEGATIVE FINANCIAL TRENDS AND TO IMPROVE OPERATING MEASURES, INCLUDING THE FOLLOWING: - IN FEBRUARY 2022, THE FOUNDATION FINALIZED A PURCHASE AND SALE AGREEMENT, WITH RELATED AMENDMENTS, TO SELL APPROXIMATELY 30 ACRES OF UNDER-UTILIZED PORTIONS OF THE MAIN CAMPUS FOR $11,500,000 FOR DEVELOPMENT BY A THIRD PARTY. DURING THE FISCAL YEAR ENDED JUNE 30, 2022, THE FOUNDATION RECEIVED DEPOSITS TOTALING $1,500,000, AND WHEN THE SALE IS FINALIZED IN JUNE 2023, A PAYMENT OF $5,000,000 WILL BE RECEIVED. IN ADDITION, THE FINAL PAYMENT OF $5,000,000 PLUS INTEREST WILL BE RECEIVED NINE MONTHS AFTER THE CLOSE OF THE TRANSACTION. - THE FOUNDATION HAS ENTERED INTO AN AGREEMENT WITH A LOCAL UNIVERSITY TO RENT THE FOUNDATION'S STADIUM FACILITIES. THIS AGREEMENT WILL PROVIDE NON-STUDENT-RELATED REVENUE OF $170,000 PER YEAR AND RENTAL REVENUE OF $80,000, BOTH FOR THE NEXT FIVE YEARS. THE FOUNDATION HAS ENTERED INTO A "SCHOOL FRANCHISE AND ADVISORY SERVICES AGREEMENT" WITH AN ORGANIZATION LOCATED IN DOHA, QATAR. THIS IS A LONG-TERM STRATEGIC INITIATIVE TO GROW THE FOUNDATION'S BRAND. FOR THE FISCAL YEAR ENDING JUNE 30, 2023, REVENUE IS $141,000. THE ANNUAL REVENUE IS EXPECTED TO GROW AS BOTH ENROLLMENT AND GRADE LEVELS OFFERED INCREASE. - IN SEPTEMBER 2022, THE FOUNDATION CHANGED BANKING INSTITUTIONS AND CONVERTED THE BALANCE ON THE LINE OF CREDIT TO A TERM LOAN AND OPENED A NEW LINE OF CREDIT (SEE NOTE 17). -IN FEBRUARY 2023, THE TRUSTEES VOTED TO PROVIDE A SHORT-TERM BRIDGE LOAN TO THE FOUNDATION FOR BORROWINGS UP TO $2,000,000 FOR NORMAL OPERATING NEEDS. THE LOAN IS TO BE REPAID WITH FUNDS RECEIVED FROM THE JUNE 2023 SALE OF THE UNDER-UTILIZED PROPERTY. THE LOAN WAS PAID OFF IN JUNE, 2023. - ENROLLMENT FOR THE 2023-2024 ACADEMIC YEAR HAS BEEN MAINTAINED AT 150 STUDENTS IN THE ACADEMY AND 75 STUDENTS IN THE COLLEGE. A SCHEDULE OF CHANGES IN OPERATING NET ASSETS FOR THE SIX-MONTHS ENDED DECEMBER 31, 2022 IS AS FOLLOWS: UNAUDITED REVENUES AND SUPPORT: $2,300,153 - STUDENT TUITION AND FEES, NET $520,329 - CONTRIBUTIONS $1,178,962 - SUMMER CAMP AND RENTALS $118,861 - FRANCHISE FEE $361,240 - OTHER $4,682,794 - TOTAL REVENUES AND SUPPORT EXPENSES: $1,945,370 - PERSONNEL $250,942 - CADET RELATED $775,118 - CAMPUS RELATED $275,930 - OUTSIDE CONTRACTORS $339,288 - BUSINESS INSURANCE $347,142 - OTHER EXPENSES $90,347 - INTEREST $4,024,137 - TOTAL EXPENSES $658,657 - CHANGE IN OPERATING NET ASSETS INCLUDED IN THE SIX-MONTH SCHEDULE ARE EXPENSES OF APPROXIMATELY $350,000 RELATED TO THE COLLEGE ADDRESSING INQUIRIES FROM THE U.S. DEPARTMENT OF EDUCATION. THESE EXPENSES WILL NOT BE CARRIED INTO FISCAL YEAR 2022-2023. ALSO, MANAGEMENT IS REVIEWING ALL BUDGET LINES TO REDUCE AND/OR TO ELIMINATE EXPENSES. ADDITIONALLY, WITH THE SALE OF THE UNDER-UTILIZED PROPERTY, THERE WILL BE A REDUCTION IN MAINTENANCE, TAXES, AND UTILITY EXPENSES. IN FEBRUARY 2023, THE BOARD OF TRUSTEES VOTED TO APPROPRIATE AN ENDOWMENT SPENDING DRAW OF 7% FOR THE FISCAL YEAR ENDING JUNE 30, 2023. ON JULY 1, 2023, THE ACADEMY WILL BE SEPARATED FROM THE FOUNDATION AND FORMED AS A NEW AND SEPARATE NOT-FOR-PROFIT ORGANIZATION. ALL OPERATING REVENUES AND EXPENSES OF THE ACADEMY WILL BE RECORDED AND REPORTED IN THIS NEW ORGANIZATION. AFTER THIS SEPARATION, THE FOUNDATION WILL LEASE USE OF THE CERTAIN PROPERTY AND ASSETS AND PROVIDE MANAGEMENT SERVICES TO THE ACADEMY. MANAGEMENT BELIEVES, BUT CAN PROVIDE NO ASSURANCE, THAT THESE INITIATIVES ARE ADEQUATE TO SUPPORT THE FOUNDATION'S CONTINUING OPERATIONS. (2) CHARITABLE REMAINDER UNITRUSTS 1001 EAGLE ROAD WAYNE PA 190873695 INVESTMENTS PA N/A T 0 (1) CHARITABLE REMAINDER UNITRUST 1001 EAGLE ROAD WAYNE PA 190873695 INVESTMENTS PA N/A T 0 (3) CHARITABLE REMAINDER UNITRUST 1001 EAGLE ROAD WAYNE PA 190873695 INVESTMENTS PA N/A T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0