Palmer Trinity School

41 F A L L 2 0 15 A N N UA L R EP ORT FI NA NCI A L R EPORT SCHOOL Y E A R EN D SU M M A RY JU N E 30, 2015 Since its establishment in 1972, nearly all of the School's resources have been employed to its mission of educating students. Today, of the School's annual expenditures of $21 million, approximately 77% supports the student's education in the form of faculty and staff compensation, programs and need-based financial aid. e remaining 23% of the School's expenditures include campus improvements, facilities and grounds maintenance, debt service and its cutting edge technology platform. In 2007, the School embarked on an ambitious campaign to raise $10 million and establish an endowment fund to ensure its long term viability in delivering a premium education to a diverse and vibrant community. In 2015, the existing Miami-Dade Industrial Development Authority Tax-Free bond was refinanced along with additional monies to finance campus wide infrastructure improvements along with kicking off a capital campaign. e School contracts Commonfund to manage its investment, said funds used in part as collateral towards the School's Miami-Dade County Industrial Development Bonds. But in the near future, returns will be used to supplement the School's growing needs, enhance educational programs and faculty development. in any single asset class or investment category. rough reinvestment of earnings, sound investment policies and the receipt of new gifts, the endowment has steadily grown from $200,000 to over $8 million in just 10 years to the benefit of future generations of Palmer Trinity School scholars and leaders contributing to business and our community. Charitable giving has a tremendous impact on the financial stability of the School, greatly increasing its ability to offer enhanced educational opportunities for all students. Continued philanthropic giving is necessary for the School to decrease its reliance on tuition and fees as a primary source of income. Due in part to compliance with Miami-Dade County Industrial Development Authority Bond requirements, the School contracts Verdeja, De Armas & Trujillo CPA firm to perform an annual audit of the financials and operations along with a review of our internal controls and preparation of tax returns. For over 40 years, the firm has specialized in the education market with over 150 clients in South Florida, including many of our peers—providing a resource for benchmarks and best practices. Commonfund.org is one of the leading investment firms for colleges, universities and secondary schools, foundations, hospitals and other philanthropic and tax-exempt organizations. It was founded in 1969 as a nonprofit membership organization with a grant from the Ford Foundation and today manages over $24 billion for more than 1,500 institutions. As of 06-30-2015, the School has over $8 million in its endowment managed by Commonfund. e School relies on the generous donations of alumni, parents, grandparents, trustees and other friends of the School—contributing to the Annual Fund and endowment benefit all who attend Palmer Trinity School. In order to maintain the highest educational standards, the School invests in recruiting and retaining highly qualified motivated faculty and on-going professional development, small class sizes and an excellent 1:15 ratio of teachers to students. ese practices are not only highly effective; they are also fundamental to the success of the School. e role of the endowment fund is to relieve in part the pressure placed on tuition/fees and is critical in maintaining the School's position as a leader in higher education and providing a safe and nurturing environment. e investment strategy for the School's endowment is designed to protect each gift's long-term value against inflation or downturns in the economy via diversification among a variety of asset classes so as to provide a balance that will enhance total real return while avoiding undue risk concentration e Finance and Operations Committee is made up of a group of dedicated parents, alumni, and community leaders with a vested interest in the continued success of the School. With varied nationalities and backgrounds that include banking, investment, communication, education, legal and business entrepreneurs—all contribute their expertise, time and passion for the School and its Mission. e committee is chaired by Charles Klenk and includes Ricardo Albarran, Michael Baiamonte, Reverend Frank Corbishley, John Fumagalli, Lynne Keller, Tina Lane, Hugo Mantilla, Camilo Montaña, Alejandro Rodriguez, and Beth Serrate. Sincerely, José Chao, CFO/ CPA at Palmer Trinity School T U IT ION & F E E S 91% CH A R ITA BL E CON T R IBU T IONS 4% AU X I L L A RY PROGR A MS 3% OT H ER I NCOM E 2% SA L A RY & BE N E F ITS 55% OPER AT IONS & A DDIT IONS TO R E SERV E S 20% F I NA NCI A L A ID & R E M IS SION 11% EDUC AT IONA L PROGR A MS 9% DEBT SERV IC E 3% AU X I L L A RY PROGR A MS 2% REVENUES EXPENSES

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