TY 2011 Form 990

- TIN:

Form990

Department of the Treasury
Internal Revenue Service

Return of Organization Exempt From Income Tax

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

The organization may have to use a copy of this return to satisfy state reporting requirements.

OMB No. 1545-0047

2011

Open to Public Inspection

A For the calendar year, or tax year beginning 07-01-2011 and ending 06-30-2012

BCheck if applicable: Address change Name change Initial return Terminated Amended return Application pending

CName of organization
ALBUQUERQUE ACADEMY

Doing Business As

Number and street (or P.O. box if mail is not delivered to street address)
6400 WYOMING BLVD NE

Room/suite

City or town, state or country, and ZIP + 4
ALBUQUERQUE, NM871093899

D Employer identification number

85-0129165

E Telephone number

G Gross receipts $ 22,518,447

F Name and address of principal officer:
ANDREW T WATSON
6400 WYOMING BLVD NE
ALBUQUERQUE,NM871093899

Tax-exempt status: 501(c)(3) 501(c) ( ) LeftBullet

(insert no.) 4947(a)(1) or 527

Website:

WWW.AA.EDU

H(a)

Is this a group return for
affiliates? Yes No

H(b)

Are all affiliates included?

Yes No

If "No," attach a list. (see instructions)

H(c)

Group exemption number MediumBullet

K Form of organization: Corporation Trust Association Other MediumBullet

L Year of formation: 1955

M State of legal domicile: NM

Part I

Summary

1	Briefly describe the organization’s mission or most significant activities: ALBUQUERQUE ACADEMY (" THE ACADEMY") IS A NON-DENOMINATIONAL, COEDUCATIONAL, INDEPENDENT DAY SCHOOL SERVING 1,129 STUDENTS IN GRADES 6 THROUGH 12, AS OF JUNE 30, 2012. SEE SCHEDULE O,GENERAL STMT 1
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	19
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	19
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	957
6	Total number of volunteers (estimate if necessary) ....	6	573
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	-28,085
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-28,085

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,163,076	2,577,180
9	Program service revenue (Part VIII, line 2g) .........	24,270,129	25,158,795
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	8,374,618	6,034,094
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	-1,820	-31,208,614
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	34,806,003	2,561,455
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	4,533,127	5,142,582
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	21,991,661	23,303,174
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	82,973
b	Total fundraising expenses (Part IX, column (D), line 25) 951,521
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	12,909,232	10,442,256
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	39,434,020	38,970,985
19	Revenue less expenses. Subtract line 18 from line 12.......	-4,628,017	-36,409,530
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	170,456,659	132,852,980
21	Total liabilities (Part X, line 26).............	46,771,358	50,746,236
22	Net assets or fund balances. Subtract line 21 from line 20.....	123,685,301	82,106,744

Part II

Signature Block

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.

Sign Here

	Signature of officer	Date

	Type or print name and title.

Paid preparer use only

Print/type preparer's name

Preparer's signature

Date

Check if
self-employed

PTIN

Firm's name Right pointing arrowhead image

Firm's EIN Right pointing arrowhead image

Firm's address Right pointing arrowhead image

Phone no.

May the IRS discuss this return with the preparer shown above? See instructions ......... bullet

YesNo

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11282Y

Form 990 (2011)

Page 2

Part III

Statement of Program Service Accomplishments

Check if Schedule O contains a response to any question in this Part III .........

Briefly describe the organization’s mission: SEE SCHEDULE O, GENERAL STATEMENT 2

Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? .................... Yes No

If “Yes,” describe these new services on Schedule O.

Did the organization cease conducting, or make significant changes in how it conducts, any program services? .......................... Yes No

If “Yes,” describe these changes on Schedule O.

Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.


4a	(Code: ) (Expenses $ 25,952,166 including grants of $ 5,141,172 ) (Revenue $ 20,791,402 )
	SEE SCHEDULE O, GENERAL STATEMENT 3

4b	(Code: ) (Expenses $ 1,758,958 including grants of $ 1,410 ) (Revenue $ 1,967,977 )
	SEE SCHEDULE O, GENERAL STATEMENT 3

4c	(Code: ) (Expenses $ 762,955 including grants of $ 0 ) (Revenue $ 1,323,786 )
	SEE SCHEDULE O, GENERAL STATEMENT 4

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 1,764,408 including grants of $ 0 ) (Revenue $ 1,075,630 )
4e	Total program service expenses$ 30,238,487

Form 990 (2011)

Page 3

Part IV

Checklist of Required Schedules

Yes

Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule A Click to see attachment

.....................

Yes

Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment

........

Yes

Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I..........

Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................

Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................

Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete Schedule D, Part I Click to see attachment

....................

Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part II Click to see attachment

...

Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment

....................

Yes

Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IV Click to see attachment

...................

Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If “Yes,” complete Schedule D, Part V Click to see attachment

Yes

If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:

Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI. Click to see attachment

11a

Yes

Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII. Click to see attachment

11b

Yes

Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII. Click to see attachment

11c

Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX. Click to see attachment

11d

Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X. Click to see attachment

11e

Yes

Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X. Click to see attachment

11f

Yes

12a

Did the organization obtain separate, independent audited financial statements for the tax year?
If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment

12a

Yes

Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment

12b

Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E Click to see attachment

Yes

14a

Did the organization maintain an office, employees, or agents outside of the United States?....

14a

Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States or aggregate foreign investments valued at $100,000 or more? If “Yes,” complete Schedule F, Part I.........

14b

Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..

Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..

Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I Click to see attachment

Yes

Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II.......... Click to see attachment

Yes

Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III................... Click to see attachment

20a

Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....

20a

If “Yes” to line 20a, did the organization attach a copy of its audited financial statement to this return? Note. All Form 990 filers that operated one or more hospitals must attach audited financial statements.

20b

Form 990 (2011)

Page 4

Part IV

Checklist of Required Schedules (continued)

Did the organization report more than $5,000 of grants and other assistance to any government or organization in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment

Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment

Yes

Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment

Yes

24a

Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................ Click to see attachment

24a

Yes

Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...

24b

Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................

24c

Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...

24d

25a

Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment

25a

Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment

25b

Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II......................... Click to see attachment

Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If “Yes,” complete Schedule L, Part III......... Click to see attachment

Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):

A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment

28a

A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment

28b

Yes

An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment

28c

Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M Click to see attachment

Yes

Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............ Click to see attachment

Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................

Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................

Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment

Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment

Yes

35a

Did the organization have a controlled entity within the meaning of section 512(b)(13)?

35a

Yes

If ‘Yes’ to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment

35b

Yes

Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment

Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VI Click to see attachment

Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............

Yes

Form 990 (2011)

Page 5

Part V

Statements Regarding Other IRS Filings and Tax Compliance

Check if Schedule O contains a response to any question in this Part V .........

Yes

Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......

108

Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.

Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................

Yes

Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................

957

If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)

Yes

Did the organization have unrelated business gross income of $1,000 or more during the year?.............................

Yes

If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....

Yes

At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................

If "Yes," enter the name of the foreign country: MediumBullet

See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.

Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..

Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?

If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........

Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........

If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................

Organizations that may receive deductible contributions under section 170(c).

Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................

Yes

If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....

Yes

Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................

If “Yes,” indicate the number of Forms 8282 filed during the year ....

Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................

Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..

If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................

If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............

Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................

Sponsoring organizations maintaining donor advised funds.

Did the organization make any taxable distributions under section 4966?.........

Did the organization make a distribution to a donor, donor advisor, or related person?......

Section 501(c)(7) organizations. Enter:

Initiation fees and capital contributions included on Part VIII, line 12 ...

10a

Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities

10b

Section 501(c)(12) organizations. Enter:

Gross income from members or shareholders .........

11a

Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them) ........

11b

12a

Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?

12a

If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.

12b

Section 501(c)(29) qualified nonprofit health insurance issuers.

Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.

13a

Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.

13b

Enter the aggregate amount of reserves on hand.

13c

14a

Did the organization receive any payments for indoor tanning services during the tax year?.....

14a

If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..

14b

Form 990 (2011)

Page 6

Part VI

Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.

Check if Schedule O contains a response to any question in this Part VI .........

Section A. Governing Body and Management

Yes

Enter the number of voting members of the governing body at the end of the tax year
If the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.

Enter the number of voting members included in line 1a, above, who are independent .................

Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................

Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? .

Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?

Did the organization become aware during the year of a significant diversion of the organization’s assets? .

Did the organization have members or stockholders? ................

Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? .................

Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ............

Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:

The governing body? .........................

Yes

Each committee with authority to act on behalf of the governing body? ..........

Yes

Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....

Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)

Yes

10a

Did the organization have local chapters, branches, or affiliates? ............

10a

If “Yes,” did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ....

10b

11a

Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?

11a

Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....

12a

Did the organization have a written conflict of interest policy? If “No,” go to line 13.......

12a

Yes

Were officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ........................

12b

Yes

Did the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this was done ....................

12c

Yes

Did the organization have a written whistleblower policy? ...............

Yes

Did the organization have a written document retention and destruction policy? .........

Yes

Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?

The organization’s CEO, Executive Director, or top management official ...........

15a

Yes

Other officers or key employees of the organization ................

15b

Yes

If "Yes," to line 15a or 15b, describe the process in Schedule O (see instructions).

16a

Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................

16a

If “Yes,” did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? ............

16b

Section C. Disclosure

List the States with which a copy of this Form 990 is required to be filed MediumBullet

AZ , ID , NM , NY

Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply.

Own website Another's website Upon request

Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.

State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet

BRENT WHEELIS
6400 WYOMING BLVD NE
ALBUQUERQUE,NM871093899
(505) 828-3231

Form 990 (2011)

Page 7

Part VII

Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors

Check if Schedule O contains a response to any question in this Part VII .........

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet

List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

List all of the organization’s current key employees, if any. See instructions for definition of "key employee."

List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.

Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(1) WALTER E STERN III CHAIR	5.0	X	0	0	0
(2) SARAH KOTCHIAN VICE CHAIR	2.0	X	0	0	0
(3) RANDAL H TALBOT TRUSTEE	2.0	X	0	0	0
(4) PAM GARRETT SECRETARY	2.0	X	0	0	0
(5) THOMAS J BACA TRUSTEE	2.0	X	0	0	0
(6) THOMAS SMIDT TRUSTEE	2.0	X	0	0	0
(7) TRACY SMALL TRUSTEE	2.0	X	0	0	0
(8) NAOMI GABEL FINDLEY TRUSTEE	2.0	X	0	0	0
(9) JENNIFER DAVIS HALL TRUSTEE	2.0	X	0	0	0
(10) HEIDI HEARD TRUSTEE	2.0	X	0	0	0
(11) SANDRA RICCI TRUSTEE	2.0	X	0	0	0
(12) RONALD W MOYA TRUSTEE	2.0	X	0	0	0
(13) ANDREW HSI TRUSTEE	2.0	X	0	0	0
(14) KAREN KNAUF TRUSTEE	2.0	X	0	0	0
(15) IAN MCKINNON TRUSTEE	2.0	X	0	0	0
(16) JOLYNN MURAIDA TRUSTEE	2.0	X	0	0	0
(17) VALERIE ROMERO-LEGGOT TRUSTEE	2.0	X	0	0	0

Form 990 (2011)

Page 8

Part VII

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) GARY SLACK TRUSTEE	2.0	X			0	0	0
(19) HOPE MEAD WYNN ASSISTANT SECRETARY	2.0	X			0	0	0
(20) ANDREW T WATSON HEAD OF SCHOOL	40.0		X		337,095	0	34,811
(21) GARY GORDON TREASURER	40.0		X		225,353	0	39,528
(22) DON SMITH ASS.HEAD OF SCH./8-9 DIV. HEAD	40.0			X	143,342	0	25,053
(23) NANCY PARKER BUSINESS MANAGER OF OPERATIONS	40.0			X	111,724	0	15,175
(24) JEFFREY MORGAN DIRECTOR OF DEVELOPMENT	40.0			X	107,882	0	18,466
(25) PAMELA SCANLON BUSINESS MANAGER FOR FINANCE	40.0			X	105,365	0	21,261
(26) MICHAEL LINSELL 6/7 DIVISION HEAD	40.0			X	102,926	0	21,257

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	1,133,687	0	175,551

Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization MediumBullet

Yes

Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............

For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................

Yes

Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....

Section B. Independent Contractors

Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year.

(A) Name and business address	(B) Description of services	(C) Compensation
BLUE CROSS BLUE SHIELD OF NEW MEXIC PO BOX 1186 CHICAGO,IL60690	HEALTH INS.- MEDICAL	1,879,540
ENERGY CONTROL INC 2600 AMERICAN ROAD SE SUITE 360 RIO RANCHO,NM87124	SECURTIY & ENERGY	1,540,954
RC ENERGY AA LLC C/O MB FINANCIAL BANK PO BOX 743 CHICAGO,IL60690	RENEWABLE ENERGY	477,577
MANUAL LUJAN AGENCIES 4801 INDIAN SCHOOL RD ALBUQUERQUE,NM871903727	INSURANCE BROKER	303,048
DELTA DENTAL PLAN OF NEW MEXICO PO BOX 27678 ALBUQUQUERQUE,NM871257678	HEALTH INS.- DENTAL	276,551
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 14

Form 990 (2011)

Page 9

Part VIII

Statement of Revenue

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c		43,560
d	Related organizations...1d
e	Government grants (contributions)1e		211,556

f	All other contributions, gifts, grants, and similar amounts not included above1f		2,322,064
g	Noncash contributions included in lines 1a-1f:$ 206,797
h	Total. Add lines 1a-1f.......			2,577,180
			Business Code
2a	TUITION & FEES		900,099	20,791,402	20,791,402
b	SUMMER SCHOOL/OUTREACH		900,099	1,967,977	1,967,977
c	FOOD SERVICES		900,099	1,323,786	1,323,786
d	BOOKSTORE		900,099	556,641	556,641
e	CHARGER AQUATICS		900,099	314,188	314,188
f	All other program service revenue .			204,801	204,801
g	Total. Add lines 2a–2f........			25,158,795
3	Investment income (including dividends, interest
	and other similar amounts).....			5,183,529	0	-28,085	5,211,614
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	20,787,049
b	Less: cost or other basis and sales expenses	19,936,484
c	Gain or (loss)	850,565
d	Net gain or (loss)..........			850,565			850,565
8a	Gross income from fundraising events (not including $ 43,560 of contributions reported on line 1c). See Part IV, line 18 ...
	a		17,970
b	Less: direct expenses ...b		20,508
c	Net income or (loss) from fundraising events..			-2,538			-2,538
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	IMPAIRMENT OF INVESTMENT IN HDIC		900,099	-19,379,938			-19,379,938
b	IMPAIRMENT OF MARIPOSA REAL ESTATE		900,099	-6,035,123			-6,035,123
c	ASSUMPTION OF HDIC NOTE PAYABLE		900,099	-4,000,000			-4,000,000
d	All other revenue ....			-1,791,015			-1,791,015
e	Total. Add lines 11a–11d ......			-31,206,076
12	Total revenue. See Instructions....			2,561,455	25,158,795	-28,085	-25,146,435

Form 990 (2011)

Page 10

Part IX

Statement of Functional Expenses

Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Check if Schedule O contains a response to any question in this Part IX. .........

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.		(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the United States. See Part IV, line 21	0
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	5,142,582	5,142,582
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	676,452	272,807	364,673	38,972
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	70,852	70,852
7	Other salaries and wages	16,705,768	14,778,028	1,507,622	420,118
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	1,256,913	1,107,203	118,478	31,232
9	Other employee benefits .......	3,349,551	3,062,114	237,790	49,647
10	Payroll taxes ...........	1,243,638	1,102,634	110,775	30,229
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	31,728		31,728
c	Accounting ...........	125,500		125,500
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	82,973			82,973
f	Investment management fees ......	378,440		378,440
g	Other ..........	179,281	174,185	4,157	939
12	Advertising and promotion ....	236,065	40,803	151,680	43,582
13	Office expenses .......	354,565	171,712	122,939	59,914
14	Information technology ......	327,489		327,489
15	Royalties ..	0
16	Occupancy ...........	973,484	918,543	54,212	729
17	Travel ............	286,299	242,460	12,578	31,261
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	392,421	231,040	16,296	145,085
20	Interest ...........	1,835,701		1,835,701
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	2,225,799		2,225,799
23	Insurance ..............	161,663	107,796	50,907	2,960
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	SUMMER SCH./FOOD SER./BOOK	1,131,412	1,131,412
b	INSTRUCTIONAL/STU. ACTIVITY	1,026,538	1,026,538
c	MAINTENANCE & GROUNDS	527,933	527,933
d	ADMINISTRATIVE	179,337	70,764	94,693	13,880
e
f	All other expenses	68,601	59,081	9,520
25	Total functional expenses. Add lines 1 through 24f	38,970,985	30,238,487	7,780,977	951,521
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Form 990 (2011)

Page 11


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			4,651,740	1	2,808,152
2	Savings and temporary cash investments .......			6,125,199	2	3,373,574
3	Pledges and grants receivable, net .........			146,567	3	943,994
4	Accounts receivable, net .........			1,243,139	4	497,380
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........			0	6	0
7	Notes and loans receivable, net .............			0	7	2,000
8	Inventories for sale or use ..............			180,748	8	266,626
9	Prepaid expenses and deferred charges ............			692,309	9	645,094
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	78,369,798
b	Less: accumulated depreciation. .....	10b	45,480,826	31,993,396	10c	32,888,972
11	Investments—publicly traded securities ..........			67,207,785	11	58,303,421
12	Investments—other securities. See Part IV, line 11 ......			57,114,751	12	32,207,575
13	Investments—program-related. See Part IV, line 11 ..			0	13	0
14	Intangible assets .........			0	14	0
15	Other assets. See Part IV, line 11 ...........			1,101,025	15	916,192
16	Total assets. Add lines 1 through 15 (must equal line 34)...			170,456,659	16	132,852,980
17	Accounts payable and accrued expenses .			2,427,668	17	2,383,408
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			1,262,233	19	1,360,995
20	Tax-exempt bond liabilities ..........			37,270,984	20	37,227,532
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			0	23	4,000,000
24	Unsecured notes and loans payable to unrelated third parties ....			5,466,140	24	5,466,140
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....			344,333	25	308,161
26	Total liabilities. Add lines 17 through 25.....			46,771,358	26	50,746,236
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			84,316,414	27	43,341,943
28	Temporarily restricted net assets .....			22,682,261	28	20,922,491
29	Permanently restricted net assets .....			16,686,626	29	17,842,310
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			123,685,301	33	82,106,744
34	Total liabilities and net assets/fund balances .....			170,456,659	34	132,852,980

Form 990 (2011)

Page 12

Part XI

Reconcilliation of Net Assets

Check if Schedule O contains a response to any question in this Part XI .........

Total revenue (must equal Part VIII, column (A), line 12) ...

2,561,455

Total expenses (must equal Part IX, column (A), line 25) ....

38,970,985

Revenue less expenses. Subtract line 2 from line 1 ...

-36,409,530

Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..

123,685,301

Other changes in net assets or fund balances (explain in Schedule O) ...

-5,169,027

Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) ....

82,106,744

Part XII

Financial Statements and Reporting

Check if Schedule O contains a response to any question in this Part XII .........

Yes

Accounting method used to prepare the Form 990: Cash Accrual Other
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.

Were the organization’s financial statements compiled or reviewed by an independent accountant?....

Were the organization’s financial statements audited by an independent accountant?........

Yes

If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. ...........................

Yes

If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:

Separate basis Consolidated basis Both consolidated and separated basis

As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................

If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..

Form 990 (2011)

Additional Data

Software ID:
Software Version:

Form 990, Special Condition Description:

Special Condition Description

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Reason for Public Charity Status (All organizations must complete this part.) See instructions

The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)

A church, convention of churches, or association of churches. section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of

its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

An organization organized and operated exclusively to test for public safety. Seesection 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h.

Type I

Type II

Type III - Functionally integrated

Type III - Other

By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box ..................................................

Since August 17, 2006, has the organization accepted any gift or contribution from any of the
following persons?

(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)

Yes

and (iii) below, the governing body of the the supported organization? ................

11g(i)

(ii) a family member of a person described in (i) above? ......................

11g(ii)

(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................

11g(iii)

Provide the following information about the supported organization(s).

(i) Name of supported organization	(ii) EIN	(iv) Is the organization in col. (i) listed in your governing document?		(v) Did you notify the organization in col. (i) of your support?		(vi) Is the organization in col. (i) organized in the U.S.?		(vii) Amount of support?
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of support?


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11	Total support (Add lines 7 through 10).

Gross receipts from related activities, etc. (See instructions.) ..................

First Five Years If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.......................................... right arrow

Section C. Computation of Public Support Percentage

Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f)) .........

Public Support Percentage for 2009 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2011. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ...................... right arrow

33 1/3% support test—2010. If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2011. If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization .................................................. right arrow

10%-facts-and-circumstances test—2010. If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly
supported organization .............................................. right arrow

Private Foundation If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions ................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2011

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13	Total support (Add lines 9, 10c, 11 and 12.).

Section C. Computation of Public Support Percentage

Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f)) .........

Public support percentage from 2010 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f)) ......

Investment income percentage from 2010 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2011. If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .......... right arrow

33 1/3% support tests—2010. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private Foundation If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions ..... right arrow

Schedule A (Form 990 or 990-EZ) 2011

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

OMB No. 1545-0047

2011

Name of organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule.
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II.

Special Rules

For a section 501(c)(3) organization filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), and received from any one contributor, during the year, a contribution of the
greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 for use exclusively for religious, charitable,
scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and
III.

For a section 501(c)(7), (8), or (10) organization filing Form 990, or 990-EZ that received from any one contributor,
during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did
not total to more than $1,000. If this box is checked, enter here the total contributions that were received during
the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule
applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more
during the year. ......................... Arrow Bullet

Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2, of its Form 990; or check the box on line H of its
Form 990-EZ or on Part I, line 2, of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).

For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 2

Name of organization ALBUQUERQUE ACADEMY
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part I	Contributors (see Instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	RESTRICTED RESTRICTED RESTRICTED RESTRICTED, RESTRICTED RESTRICTED	$RESTRICTED	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II if there is a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 3

Name of organization ALBUQUERQUE ACADEMY
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)
Part II	Noncash Property (see Instructions). Use duplicate copies of Part II if additional space is needed.
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions).	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Page 4

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Name of organization
ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part III

Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
that total more than $1,000 for the year. Complete columns (a) through (e) and the following line entry.
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

$
Use duplicate copies of Part III if additional space is needed

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

(e) Transfer of gift
Transferee's name, address, and ZIP 4	Relationship of transferor to transferee

Schedule B (Form 990, 990-EZ, or 990-PF) (2011)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958), relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

$ 177,494

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 52283D

Schedule D (Form 990) 2011

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back	(d)Three Years Back
1a	Beginning of year balance ....	126,002,365	131,182,768	181,487,718	244,608,876
b	Contributions ........	1,087,464	229,222	1,258,417	516,520
c	Net investment earnings, gains, and losses ...	-26,611,969	6,215,947	-35,400,594	-55,419,476
d	Grants or scholarships .....	0	0	0	0
e	Other expenditures for facilities and programs ........	8,312,731	10,799,680	12,137,729	13,829,914
f	Administrative expenses ....	1,283,937	825,892	4,025,044	-5,611,712
g	End of year balance ......	90,881,192	126,002,365	131,182,768	181,487,718

Provide the estimated percentage of the year end balance (line 1g) held as:

Board designated or quasi-endowment SchDMd Bullet

61.100 %

Permanent endowment SchDMd Bullet

19.600 %

Temporarily restricted endowment SchDMd Bullet

19.300 %

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

Yes

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	397,024		397,024
b	Buildings ................	61,970,235	32,969,470	29,000,765
c	Leasehold improvements ............	0	0	0
d	Equipment ................	10,940,283	9,514,867	1,425,416
e	Other .................	5,062,257	2,996,490	2,065,767
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				32,888,972

Schedule D (Form 990) 2011

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)	(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
(3)Other (A) PARTNERSHIP INVESTMENTS	15,467,844	F
(B) SANDOVAL COUNTY REAL ESTATE	12,525,000	F
(C) ASSETS HELD IN TRUST BY OTHERS	4,141,612	F
(D) OTHER INVESTMENTS	44,318	F
(E) DONA ANA COUNTY REAL ESTATE	28,801	F




Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)	32,207,575

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type		(b) Book value	(c) Method of valuation: Cost or end-of-year market value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
ANNUITY & OTHER SPLIT INTEREST		308,161








Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		308,161
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2011

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1	2,561,455
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	38,970,985
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	-36,409,530
4	Net unrealized gains (losses) on investments ..........................	4	-5,169,027
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV.) .................................	8
9	Total adjustments (net). Add lines 4 through 8 .........................	9	-5,169,027
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	-41,578,557

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......			1	28,348,558
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a	-5,169,027
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV.) ............	2d
e	Add lines 2a through 2d .....................			2e	-5,169,027
3	Subtract line 2e from line 1.....................			3	33,517,585
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a	270,454
b	Other (Describe in Part XIV.) ...........	4b	-31,226,584
c	Add lines 4a and 4b.......................			4c	-30,956,130
5	Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	2,561,455

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............			1	69,927,115
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c	31,206,076
d	Other (Describe in Part XIV.) ............	2d
e	Add lines 2a through 2d......................			2e	31,206,076
3	Subtract line 2e from line 1.....................			3	38,721,039
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a	270,454
b	Other (Describe in Part XIV.) ............	4b	-20,508
c	Add lines 4a and 4b.......................			4c	249,946
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	38,970,985

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
SCHEDULE D, PART III, LINE 4		THE ACADEMY MAINTAINS A SMALL ART COLLECTION CONSISTING OF ITEMS DONATED TO THE SCHOOL OVER APPROXIMATELY THE PAST 25 YEARS. INCLUDED IN THIS COLLECTION IS A SERIES OF PHOTOGRAVURES, A FLEMISH TAPESTRY, AND SEVERAL OIL PAINTINGS (INCLUDING PORTRAITS OF MR. & MRS. SIMMS, MAJOR DONORS TO THE ACADEMY). THE ART COLLECTION IS CURRENTLY DISPLAYED IN VARIOUS VENUES ACROSS CAMPUS FOR THE EDIFICATION OF OUR STUDENTS AS WELL AS FOR THE ENJOYMENT OF VISITORS TO OUR CAMPUS. IT IS ANTICIPATED THAT ITEMS WITHIN THE COLLECTION WILL GROW IN VALUE OVER TIME AND MAY EVENTUALLY BE SOLD TO SUPPORT VARIOUS PROGRAMS AND INITIATIVES BENEFITING THE ACADEMY'S STUDENTS.
SCHEDULE D, PART V, LINE 4		ALBUQUERQUE ACADEMY'S ENDOWMENT, CONSISTING OF PERMANENT FUNDS AND A QUASI-ENDOWMENT FUND, PROVIDES VITAL FINANCIAL SUPPORT FOR THE OVERALL MISSION OF THE ACADEMY. THE ENDOWMENT SUSTAINS OPPORTUNITIES OF REMARKABLE SCOPE, INCLUDING EXPERIENTIAL AND OUTDOOR EDUCATION, DEEP ACADEMIC EXCELLENCE, GLOBAL EXCHANGES AND LANGUAGES AND SUSTAINABILITY INITIATIVES CLOSELY ATTUNED TO OUR CHANGING WORLD. THESE PROGRAMS MAKE THE STUDENT EXPERIENCE HERE ONE OF THE BROADEST IN INDEPENDENT EDUCATION. THE ENDOWMENT ALSO SUPPORTS OUR UNIQUE ADMISSION PROCESS AND GENEROUS FINANCIAL AID PROGRAM. THESE PROGRAMS ARE COMMITTED TO PROVIDING ACCESS TO THE ACADEMY FOR STUDENTS OF TALENT AND CHARACTER FROM THROUGHOUT THE CITY, REGION, AND (AT TIMES) COUNTRY AS THEY SEEK AN ENRICHED AND MEANINGFUL EDUCATIONAL EXPERIENCE. THE ACADEMY'S ENDOWMENT SUPPORTS OUR OUTREACH PROGRAMS ACROSS CAMPUS EVENTS. OUR EVENING COMMUNITY ACADEMY CLASSES AND LECTURES, CHARGER AQUATICS PROGRAM, SUMMER SESSION, AND ARTISTIC, ATHLETIC, AND VOLUNTEER EVENTS ON CAMPUS ALL EXEMPLIFY OUR COMMUNITY OUTREACH AND THE ACADEMY'S BELIEF IN LIFE-LONG LEARNING. FOR THE CURRENT YEAR, THE ACADEMY HAS CHANGED THE PRESENTATION OF THE ENDOWMENT FUND ROLLFORWARD TO MORE ACCURATELY ALIGN WITH THE FORM INSTRUCTIONS. FOR THE PRIOR YEARS DISCLOSED, THE ACADEMY HAS CHANGED THE PRESENTATION TO BE CONSISTENT AND COMPARABLE WITH THE CURRENT YEAR PRESENTATION, AS SUCH THE PRIOR YEAR AMOUNTS WILL APPEAR TO BE DIFFERENT IF COMPARED TO PRIOR FORM 990 FILINGS OF THE ACADEMY. AS A RESULT OF THIS CHANGE LINE 1(F) NOW APPROPRIATELY REFLECTS THE NET AMOUNTS THAT WERE TRANSFERRED (TO) FROM THE ENDOWMENT FUND FROM THE ACADEMY'S CURRENT FUND.
SCHEDULE D, PART X, LINE 2		THE ACADEMY'S INCOME TAX FOOTNOTE CONTAINS A DESCRIPTION OF THE REQUIREMENTS OF ASC 740 - INCOME TAXES. THE FOOTNOTE IN THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 CONTAINS THE FOLLOWING: THE ACADEMY IS A NOT-FOR-PROFIT ORGANIZATION AND QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). IN 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB), ISSUED AUTHORITATIVE GUIDANCE RELATING TO THE ACCOUNTING FOR THE UNCERTAINTY IN INCOME TAXES, WHICH WAS EFFECTIVE FOR THE ACADEMY FOR THE YEAR ENDED JUNE 30, 2012. THE GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). THE GUIDANCE ALSO REQUIRES THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE ACADEMY'S INFORMATION RETURN TO DETERMINE WHETHER THE TAX POSITIONS ARE "MORE-LIKELY-THAN-NOT" OF BEING SUSTAINED BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD WOULD BE RECORDED AS A TAX BENEFIT OR EXPENSE IN THE CURRENT YEAR. IN ADDITION, GUIDANCE ON DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE, AND TRANSITION WAS ALSO PROVIDED. AS OF JUNE 30, 2012, THE ACADEMY PERFORMED A COMPREHENSIVE REVIEW OF OUR MATERIAL TAX POSITIONS IN ACCORDANCE WITH RECOGNITION AND MEASUREMENT STANDARDS ESTABLISHED BY GAAP. AS A RESULT OF THESE REVIEWS, THE ACADEMY QUALIFIED AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE IRC AND HAD NO UNREPORTED INCOME DERIVED FROM UNRELATED BUSINESS ACTIVITIES. ADDITIONALLY, THE ACADEMY DID NOT IDENTIFY ANY ENTITY LEVEL TAX POSITIONS THAT WOULD NOT MEET THE "MORE-LIKELY-THAN-NOT" THRESHOLD.
SCHEDULE D, PART XII, LINE 4B		RECONCILIATION OF REVENUE PER AUDITED FINANCIAL STATEMENTS WITH REVENUE PER RETURN IMPAIRMENT OF INVESTMENT IN HDIC $19,379,938 IMPAIRMENT OF MARIPOSA REAL ESTATE $ 6,035,123 ASSUMPTION OF HDIC NOTE PAYABLE $ 4,000,000 NET LOSS OF HDIC $ 1,791,015 SKIP PORTER EXPENSES $ 20,508 -------------- $31,226,584 ============== THE IMPAIRMENT OF INVESTMENT IN HDIC, IMPAIRMENT OF MARIPOSA REAL ESTATE, ASSUMPTION OF HDIC NOTE PAYABLE, AND NET LOSS OF HDIC ARE DISCUSSED IN DETAIL IN SCHEDULE O, GENERAL STATEMENT 10, UNDER THE HEADING PART VIII - STATEMENT OF REVENUE, FOR FURTHER DISCUSSION. THE SKIP PORTER EXPENSES RELATE TO EXPENSES INCURRED FOR THE ANNUAL SKIP PORTER MEMORIAL GOLF TOURNAMENT FUNDRAISING EVENT THAT THE ACADEMY HOSTS. UNDER GAAP THESE EXPENSES ARE CLASSIFIED AS AN EXPENSE AND DO NOT NET AGAINST REVENUE. SCHEDULE D, PART XIII, LINE 4B PART XIII - RECONCILIATION OF EXPENSES PER AUDITED FINANCIAL STATEMENTS WITH EXPENSES PER RETURN THE OTHER AMOUNT OF $(20,508) THAT IS REFLECTED IN THIS RECONCILIATION REPRESENTS THE EXPENSES INCURRED BY THE ACADEMY FOR THE ANNUAL SKIP PORTER MEMORIAL GOLF TOURNAMENT FUNDRAISING EVENT. UNDER GAAP THESE EXPENSES ARE CLASSIFIED AS EXPENSE ON THE STATEMENT OF REVENUE. FOR FORM 990 PRESENTATION THESE AMOUNTS ARE RECLASSIFIED TO THE FORM 990 STATEMENT OF REVENUE AND NETTED AGAINST THE ASSOCIATED INCOME FOR THE FUNDRAISING EVENT.

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE E(Form 990 or 990-EZ)

Department of the TreasuryInternal Revenue Service

Schools

Complete if the organization answered "Yes" to Form 990, Part IV, line 13,or Form 990-EZ, Part VI, line 48. Right pointing arrow large image

Attach to Form 990 or Form 990-EZ.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

YES

Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws,

other governing instrument, or in a resolution of its governing body? ......................

Yes

Does the organization include a statement of its racially nondiscriminatory policy toward students in all its

brochures, catalogues, and other written communications with the public dealing with student admissions,

programs, and scholarships? ......................................

Yes

Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during

the period of solicitation for students, or during the registration period if it has no solicitation program, in a way

that makes the policy known to all parts of the general community it serves? If "Yes," please describe. If "No,"

please explain. If you need more space use Part II. .............................

Yes

Does the organization maintain the following?

Records indicating the racial composition of the student body, faculty, and administrative staff? ..........

Yes

Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory

basis? ...............................................

Yes

Copies of all catalogues, brochures, announcements, and other written communications to the public dealing

with student admissions, programs, and scholarships? ...........................

Yes

Copies of all material used by the organization or on its behalf to solicit contributions? ..............

Yes

If you answered "No" to any of the above, please explain. If you need more space, use Part II.

Does the organization discriminate by race in any way with respect to:

Students' rights or privileges? .....................................

Admissions policies? .........................................

Employment of faculty or administrative staff? ..............................

Scholarships or other financial assistance? ................................

Educational policies? .........................................

Use of facilities? ...........................................

Athletic programs? ..........................................

Other extracurricular activities? .....................................

If you answered "Yes" to any of the above, please explain. If you need more space, use Part II.

Does the organization receive any financial aid or assistance from a governmental agency? ...........

Yes

Has the organization's right to such aid ever been revoked or suspended? ...................

If you answered "Yes" to either line 6a or line 6b, explain on Part II.

Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05

of Rev. Proc. 75-50, 1975-2 C.B. 587, covering racial nondiscrimination? If "No," explain on Part II.

Yes

Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50085D

Schedule E (Form 990 or 990-EZ) 2011

Schedule E (Form 990 or 990EZ) 2011

Page 2

Part II

Supplemental Information

Complete this part to provide the explanations required by Part I, lines 3, 4d, 5h, 6b, and 7, as applicable. Also complete this part to provide any other additional information (see instructions).

Identifier	Return Reference	Explanation
PART I, LINE 3		ALBURQUERQUE ACADEMY PUBLISHES ITS NON-DISCRIMINATION STATEMENT IN THE FOLLOWING METERIALS: 1. SCHOOL MAGAZINE "THE CURRENT" (ANUALLY) 2. ADMISSION BROCHURE 3. ADMISSION VIEW BOOK 4. ADMISSION/FINANCIAL AID FORMS 5. COLLEGE PROFILE GUIDE 6. SUMMER SESSION CATALOGUE 7. NEW PARENT GUIDEBOOK 8. POSTED ON THE ACADEMY'S WEBSITE ON THE EMPLOYMENT PAGE 9. ALBUQUERQUE JOURNAL (ANUALLY)
PART I, LINE 6A		THE ACADEMY RECEIVES FUNDS FROM THE FEDERAL GOVERNMENT IN THE FORM OF THE NATIONAL SCHOOL LUNCH PROGRAM AND FROM THE STATE OF NEW MEXICO IN THE FORM OF AN ALLOCATION OF FUNDS FOR THE BENEFIT OF CHILDREN TO ASSIST IN THE PURCHASE OF TEXTBOOKS. THE ALBUQUERQUE ACADEMY EDUCATIONAL FOUNDATION IS AN ENTITY WHOSE PRINCIPAL PURPOSE IS TO SUPPORT THE NEW MEXICO MEMBER SCHOOLS OF THE INDEPENDENT SCHOOLS ASSOCIATION OF THE SOUTHWEST. THE FOUNDATION IS OPERATED, SUPERVISED, AND CONTROLLED BY THE ACADEMY. EFFECTIVE JULY 1, 2009, THE FOUNDATION SUSPENDED THE AWARDING OF GRANTS UNTIL SUCH TIME AS ECONOMIC CONDITIONS MAKE IT FEASIBLE TO RESUME THE AWARDS. NO GRANTS WERE AWARDED DURING THE TAX YEAR ENDED JUNE 30, 2012.

Schedule E (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19,or if the organization entered more than $15,000 on Form 990-EZ, line 6a. right arrow

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization
ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17.

Indicate whether the organization raised funds through any of the following activities. Check all that apply.

a	Mail solicitations	e	Solicitation of non-government grants
b	Internet and e-mail solicitations	f	Solicitation of government grants
c	Phone solicitations	g	Special fundraising events
d	In-person solicitations

Did the organization have a written or oral agreement with any individual (including officers, directors, trustees

or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?

Yes

If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization. Form 990-EZ filers are not required to complete this table.

(i) Name and address of individual or entity (fundraiser)	(ii) Activity	(iii) Did fundraiser have custody or control of contributions?		(iv) Gross receipts from activity	(v) Amount paid to (or retained by) fundraiser listed in col. (i)	(vi) Amount paid to (or retained by) organization
	(ii) Activity	Yes	No	(iv) Gross receipts from activity		(vi) Amount paid to (or retained by) organization
CAMPBELL COMPANY LAGUNA BEACH CA 1278 GLENNEYRE STREET 401 LAGUNA BEACH, CA92651	LAUNCH CAMPAIGN		No	0	82,973	-82,973
Total .................				0	82,973	-82,973

List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing.

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2011

Page 2

Part II

Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 on Form 990-EZ, line 6a. List events with gross receipts greater than $5,000.

		(a) Event #1 GOLF TOURN. (event type)	(d) Total Events (Add col. (a) through col. (c))
1	Gross receipts . . .	61,530	61,530
2	Less: Charitable contributions . . .	43,560	43,560
3	Gross income (line 1 minus line 2) . . .	17,970	17,970
4	Cash prizes . . .	1,400	1,400
5	Non-cash prizes . .	24	24
6	Rent/facility costs . .	15,040	15,040
7	Food and beverages . .	2,623	2,623
8	Entertainment . . .
9	Other direct expenses .	1,421	1,421
10	Direct expense summary. Add lines 4 through 9 in column (d) ...........		20,508
11	Net income summary. Combine lines 3 and 10 in column (d)............		-2,538

Part III

Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

(a) Bingo

(b) Pull tabs/Instant
bingo/progressive bingo

(c) Other gaming

(d) Total gaming (Add col. (a) through col. (c))

Gross revenue . . . .

Cash prizes . . . .

Non-cash prizes . . .

Rent/facility costs . . .

Other direct expenses . .

Volunteer labor . . .

	Yes
	No

	Yes
	No

	Yes
	No

Direct expense summary. Add lines 2 through 5 in column (d) ........... right arrow

Net gaming income summary. Combine lines 1 and 7 in column (d) .......... right arrow

Enter the state(s) in which the organization operates gaming activities:

Is the organization licensed to operate gaming activities in each of these states? ............

YesNo

If "No," Explain:

10a

Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? .....

YesNo

If "Yes," Explain:

Does the organization operate gaming activities with nonmembers? .................

YesNo

Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming? ..........................

YesNo

Schedule G (Form 990 or 990-EZ) 2011

Page 3

Indicate the percentage of gaming activity operated in:

The organization's facility ......................

13a

An outside facility ........................

13b

Provide the name and address of the person who prepares the organization's gaming/special events books and records:

Name

Address

15a

Does the organization have a contract with a third party from whom the organization receives gaming

revenue? ......................................

YesNo

If "Yes," enter the amount of gaming revenue received by the organization right arrow

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

Is the organization required under state law to make charitable distributions from the gaming proceeds to

retain the state gaming license? ............................

YesNo

Enter the amount of distributions required under state law distributed to other exempt organizations or spent

in the organization's own exempt activities during the tax year right arrow

Part IV

Complete this part to provide additional information for responses to quuestion on Schedule G (see instructions.)

Identifier	ReturnReference	Explanation

Schedule G (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
ALBUQUERQUE ACADEMY

Employer identification number
85-0129165

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image

Enter total number of other organizations listed in the line 1 table ......................... . Bullet Image

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2011

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(e)Method of valuation (book, FMV, appraisal, other)
(1) FINANCIAL AID FOR ACADEMY STUDENTS	353	5,142,582	N/A

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
SUPPLEMENTAL INFORMATION	SCHEDULE I PART 1, LINE 2:	FINANCIAL AID IS AWARDED BASED SOLELY UPON DEMONSTRATED FINANCIAL NEED. A FAMILY'S NEED IS ASSESSED THROUGH A COMPREHENSIVE SCREENING PROCESS. THE PROCESS REQUIRES THAT THE FAMILY COMPLETE AN APPLICATION AND PROVIDE THE ACADEMY WITH A FULL SET OF TAX RETURNS INCLUDING ALL SUPPORTING SCHEDULES. TO DETERMINE THE APPROPRIATE GRANT, THE ACADEMY UTILIZES A STANDARD METHODOLOGY PROVIDED BY SCHOOL AND STUDENT SERVICES (SSS) AND WHICH IS USED BY INDEPENDENT SCHOOLS NATIONWIDE. THIS METHODOLOGY CALCULATES A CONTRIBUTION FOR EACH INDIVIDUAL FAMILY BASED UPON THE FAMILY'S SPECIFIC FINANCIAL SITUATION AND DISCRETIONARY INCOME. PRIOR TO MAKING ANY AWARD, EACH APPLICANT'S FILE AND PROPOSED AWARD IS CAREFULLY REVIEWED BY A COMMITTEE TO ENSURE THE DECISIONS ARE BASED ON CONSISTENT APPLICATION OF NEED BASED CRITERIA. FINANCIAL AID IS AWARDED FOR ONE YEAR ONLY; APPLICANTS MUST REAPPLY ANNUALLY BY SUBMITTING A NEW APPLICATION AND CURRENT TAX DOCUMENTATION. IN ADDITION TO A COMMITTEE REVIEW OF EACH AWARD, THE FINANCIAL AID OFFICE OF THE ACADEMY CONDUCTS A RANDOM AUDIT OF FILES ANNUALLY AS ANOTHER MEASURE TO ENSURE THAT ALL FINANCIAL AID IS BEING AWARDED APPROPRIATELY AND WITH THE PROPER SUPPORTING DOCUMENTATION. ON A MONTHLY BASIS, THE BUSINESS OFFICE OF THE ACADEMY COMPARES THE FINANCIAL AID SUBSIDIARY LEDGER POSTINGS TO A LIST OF AID AWARDS PROVIDED BY THE FINANCIAL AID OFFICE OF THE ACADEMY TO ENSURE THERE ARE NO DISCREPANCIES BETWEEN THE TWO AMOUNTS. ANY DISCREPANCIES ARE PROMPTLY RESEARCHED AND RESOLVED.

Schedule I (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all the expenses described above? If "No," complete Part III to explain....

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ...............

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Participate in, or receive payment from, an equity-based compensation arrangement? ........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2011

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(1) ANDREW T WATSON	(i) (ii)	297,095 0	40,000 0	0 0	24,500 0	10,311 0	371,906 0	0 0
(2) GARY GORDON	(i) (ii)	190,353 0	35,000 0	0 0	11,612 0	27,916 0	264,881 0	0 0
(3) DON SMITH	(i) (ii)	143,342 0	0 0	0 0	14,741 0	10,312 0	168,395 0	0 0

Schedule J (Form 990) 2011

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
ALBUQUERQUE ACADEMY

Employer identification number
85-0129165

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	VILLAGE OF LOS RANCHOS DE ALBUQUERQUE	85-0236091	545610AR8	09-21-2010	37,303,574	SEE SCHEDULE O		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	0
2 Amount of bonds legally defeased . . . . . . . . . .	0
3 Total proceeds of issue . . . . . . . . . . . . .	37,303,574
4 Gross proceeds in reserve funds . . . . . . . .	3,305,583
5 Capitalized interest from proceeds . . . . . . . . . .	0
6 Proceeds in refunding escrows . . . . . . . . . . .	0
7 Issuance costs from proceeds . . . . . . . . . . .	413,341
8 Credit enhancement from proceeds . . . . . . . . . .	0
9 Working capital expenditures from proceeds . . . . . . .	0
10 Capital expenditures from proceeds . . . . . . . . . .	0
11 Other spent proceeds . . . . . . . . . . .	33,584,650
12 Other unspent proceeds . . . . . . . . . . .	0
13 Year of substantial completion . . . . . . . . . . .	2010
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .	X
15 Were the bonds issued as part of an advance refunding issue? . . . .		X
16 Has the final allocation of proceeds been made? . . . . . .		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . .	X

Part III

Private Business Use

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? . . . . . . .		X
2 Are there any lease arrangements that may result in private business use of bond-financed property? . . . . . . . . .		X

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50193E

Schedule K (Form 990) 2011

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . .		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .	0.00000%		%		%		%
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	0.00000%		%		%		%
6 Total of lines 4 and 5 . . .. . . . . . . . .	0.00000%		%		%		%
7 Does the bond issue meet the private security or payment test? . . .	X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	X

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue? . . .		X
2 Is the bond issue a variable rate issue?		X
3a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X
b Name of provider . . . . . . . .	0
c Term of hedge . . . . . . . .
d Was the hedge superintegrated? . . . .
e Was a hedge terminated? . . . . .
4a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . .		X
b Name of provider . . . . . .	0
c Term of GIC . . . . . . .
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . . .
5 Were any gross proceeds invested beyond an available temporary period? . . . . . .		X
6 Did the bond issue qualify for an exception to rebate? .		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .		X

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? . . . . . . . . . . . . . . YesNo

Part VI

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule K (see instructions).

Identifier	Return Reference	Explanation

Schedule K (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

1(a) Name of disqualified person	(b) Description of transaction	(c) Corrected?
1(a) Name of disqualified person	(b) Description of transaction	Yes	No

Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image

Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No






Total ............... $

Part III

Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.

(a) Name of interested person	(b)Relationship between interested person and the organization	(c)Amount of grant or type of assistance

For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) CAROL WATSON	SPOUSE OF HEAD OF SCHOOL	65,245	2011 FORM W-2 SALARY (BOX 5)		No

Part V

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule L (see instructions).

Identifier	Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE M
(Form 990)

Department of the Treasury

Internal Revenue Service

NonCash Contributions

Complete if the organization answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image

Attach to Form 990.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Types of Property

	(a) Check if applicable	(b) Number of Contributions or items contributed	(c) Noncash contribution amounts reported on Form 990, Part VIII, line 1g	(d) Method of determining noncash contribution amounts
1 Art—Works of art ....
2 Art—Historical treasures .
3 Art—Fractional interests ..
4 Books and publications ..
5 Clothing and household goods .......
6 Cars and other vehicles ..
7 Boats and planes ....
8 Intellectual property ...
9 Securities—Publicly traded .	X	10	206,797	SELLING PRICE
10 Securities—Closely held stock .
11 Securities—Partnership, LLC, or trust interests ....
12 Securities—Miscellaneous ..
13 Qualified conservation contribution—Historic structures .....
14 Qualified conservation contribution—Other ...
15 Real estate—Residential .
16 Real estate—Commercial ..
17 Real estate—Other ...
18 Collectibles .....
19 Food inventory ...
20 Drugs and medical supplies .
21 Taxidermy ......
22 Historical artifacts ....
23 Scientific specimens ..
24 Archeological artifacts ...
25 Other ( )
26 Other ( )
27 Other ( )
28 Other ( )

Number of Forms 8283 received by the organization during the tax year for contributions
for which the organization completed Form 8283, Part IV, Donee Acknowledgement ...

Yes

30a

During the year, did the organization receive by contribution any property reported in Part I, lines 1-28 that it

must hold for at least three years from the date of the initial contribution, and which is not required to be used

for exempt purposes for the entire holding period? ..................

30a

If "Yes," describe the arrangement in Part II.

Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?

Yes

32a

Does the organization hire or use third parties or related organizations to solicit, process, or sell noncash

contributions? ............................

32a

Yes

If "Yes," describe in Part II.

If the organization did not report revenues in column (c) for a type of property for which column (a) is checked,

describe in Part II.

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 51227J

Schedule M (Form 990) 2011

Page 2

Part II

Supplemental Information. Complete this part to provide the information required by Part I, lines 30b,
32b, and 33 and whether the organization is reporting in Part I, column (b) the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
PART I, LINE 32B		THE ACADEMY USES THE SERVICES OF MERRILL LYNCH TO LIQUIDATE THE NONCASH CONTRIBUTIONS WITHIN SEVERAL DAYS OF THE CONTRIBUTION BEING MADE.

Schedule M (Form 990) 2011

Additional Data

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Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Identifier	Return Reference	Explanation
GENERAL STATEMENT 1	FORM 990 PART I, LINE 1 MISSION STATEMENT	THE ACADEMY WAS THE FORTUNATE RECIPIENT OF A TRANSFORMATIONAL GIFT OF LAND IN THE EARLY SIXTIES AND, FITTINGLY, HAS CHOSEN TO USE THIS GIFT TO ENSURE ECONOMIC ACCESSIBILITY TO STUDENTS LIVING THROUGHOUT THE CITY OF ALBUQUERQUE AND THE REGION. TODAY THE ACADEMY OFFERS STUDENTS AN EDUCATION THAT IS WITHOUT EQUAL IN THE SOUTHWEST. STUDENTS FROM 90 SCHOOLS SHARE AN INSATIABLE CURIOSITY AND ARE SERVED BY TEACHERS WHO DELIVER THEIR EXPERTISE IN CREATIVE AND ENGAGING WAYS. STUDENTS IN THE 6/7 DIVISION FOLLOW A NON-TRADITIONAL SCHEDULE THAT ALLOWS FOR TEACHING FLEXIBILITY AND ADAPTABILITY IN AN EVER-CHANGING WORLD. STUDENTS IN THE 8/9 DIVISION ARE GIVEN THEIR OWN CAMPUS SPACE AND THEIR OWN ACCOUNTABILITY TO HELP THEM GROW INTO CONFIDENT YOUNG ADULTS. FOR THE 10/12 DIVISION, COURSE WORK INVOLVES INCREASINGLY PHILOSOPHICAL AND ANALYTICAL THOUGHT. ACADEMY STUDENTS SERVE THE COMMUNITY TO WHICH THEY BELONG, COMPETE IN A VARIETY OF COMPETITIVE SPORTS AND PARTICIPATE IN A VARIETY OF ACADEMIC CLUBS AND STUDENT ORGANIZATIONS. MOST ACADEMY STUDENTS ATTEND FOUR-YEAR COLLEGES AND UNIVERSITIES UPON GRADUATION, MANY OF THEM ENROLLING AT SOME OF THE BEST UNIVERSITIES IN THE COUNTRY. ADMISSION TO THE ACADEMY IS COMPETITIVE; APPROXIMATELY ONE-THIRD OF THOSE WHO APPLY ARE OFFERED ADMISSION. FOR THE 2011-2012 SCHOOL YEAR, THE STUDENT BODY CONSISTED OF 47.7% BOYS AND 52.3% GIRLS, 49.2% ARE STUDENTS OF COLOR AND 31.3% RECEIVED APPROXIMATELY $5.1 MILLION IN FINANCIAL AID. FINANCIAL AID IS BASED ON DEMONSTRATED FINANCIAL NEED; ONLY AFTER STUDENTS ARE ADMITTED AND THEIR NEEDS ARE ASSESSED AND FINANCIAL AID IS OFFERED.
GENERAL STATEMENT 2	FORM 990 PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION	WE BELIEVE THAT CHILDREN'S LIVES CHANGE WHEN THEIR NATURAL PASSION FOR LEARNING IS NURTURED AND TRANSFORMED INTO HABITS OF LIFE-LONG LEARNING AND REFLECTION. WE BELIEVE THAT THE WORLD CHANGES AS THESE CHILDREN LEARN TO SERVE COUNTRY AND COMMUNITY WITH WISDOM, CONVICTION, AND COMPASSION. IN LIGHT OF THESE BELIEFS: WE SERVE STUDENTS OF TALENT AND CHARACTER, OFFERING THEM AN EDUCATION THAT BROADENS THEIR PERSPECTIVE, SHARPENS THEIR MINDS, STRENGTHENS THEIR BODIES, AND ENGAGES THEIR HEARTS. WE COMMIT TO CREATING A CARING, INCLUSIVE, AND JUST COMMUNITY, USING THE GEOGRAPHY AND CULTURE OF OUR HOME IN THE SOUTHWEST TO ENRICH OUR EDUCATIONAL PROGRAMS AND TO FOSTER CREATIVITY, PERSONAL BALANCE AND A CONNECTION TO THE NATURAL WORLD. WE DEVOTE OUR RESOURCES TO ENSURE ECONOMIC ACCESSIBILITY TO OUR STUDENTS AND TO SUPPORT THE WIDER COMMUNITY THROUGH OUTREACH AND COMMUNITY SERVICE. WE ENTRUST THIS MISSION TO OUR GRADUATES AND SUCCESSORS AS WE PRESERVE OUR RESOURCES AND SERVE THE CHILDREN OF GENERATIONS TO COME.
GENERAL STATEMENT 3	FORM 990 PART III, LINE 4A-4B, PROGRAM SERVICE ACCOMPLISHMENTS	LINE 4A: THE ACADEMY OPENED ITS DOORS IN THE FALL OF 1955 WITH 12 BOYS IN GRADES 7 THROUGH 9, TWO TEACHERS, AND FOUNDING HEAD WILLIAM B.S. WILBURN. CLASSES WERE HELD IN RENTED SPACE IN THE PARISH HALL OF ST. MICHAEL'S AND ALL ANGELS CHURCH. IN 1957, ENROLLMENT HAD GROWN TO 75 BOYS AND THE SCHOOL MOVED TO A 27-ACRE SITE ON NORTH EDITH BOULEVARD IN ALBUQUERQUE, NM. THE FIRST CLASS OF SEVEN BOYS GRADUATED IN 1960. IN 1966, THE SCHOOL MOVED TO ITS PRESENT LOCATION, AND IN 1967-68 WAS HOME TO 405 BOYS. GIRLS WERE ADMITTED IN GRADES 9-12 IN 1973. FOR THE SCHOOL YEAR 2011-2012, THE ACADEMY SERVED 1,129 GIRLS AND BOYS IN GRADES 6 THROUGH 12. THE ACADEMY'S REMARKABLE GROWTH WAS MADE POSSIBLE LARGELY THROUGH THE TRANSFORMATIONAL GIFT OF ALBERT G. SIMMS, A NEW MEXICO FINANCIER AND RANCHER, AND HIS WIFE, RUTH HANNA MCCORMICK SIMMS. IN THE EARLY 1960'S MR. AND MRS. SIMMS GAVE OR BEQUEATHED TO THE ACADEMY (IN TRUST) MORE THAN 12,000 ACRES OF UNDEVELOPED LAND AND 8,000 SHARES OF ALBUQUERQUE NATIONAL BANK (NOW BANK OF AMERICA) STOCK. MOST OF THE UNDEVELOPED LAND HAS BEEN SOLD OVER THE PAST THREE DECADES RESULTING IN THE ENDOWMENT THAT TODAY ENABLES EDUCATION IN A BEAUTIFUL AND UPLIFTING ENVIRONMENT. THE UNIQUENESS OF THE ACADEMY IS DUE, IN LARGE PART, TO ITS COMMITMENT TO A NEED-BLIND ADMISSION POLICY, PROVIDING ACCESSIBILITY TO QUALIFIED STUDENTS FROM THROUGHOUT THE GREATER ALBUQUERQUE COMMUNITY. ONLY AFTER STUDENTS HAVE BEEN CHOSEN ARE THEIR TUITION NEEDS ASSESSED AND FINANCIAL AID OFFERED. EVERY ACADEMY STUDENT BENEFITS FROM THE SCHOOL'S COMMITMENT TO ACCESSIBILITY AND AFFORDABILITY. DIRECT SUPPORT FROM THE ENDOWMENT COVERS 25% OF THE COST NOT COVERED BY TUITION. A FURTHER COMMITMENT OF THE ACADEMY IS TO DIVERSITY AND DEDICATING THE SCHOOL'S RESOURCES TO CREATING AN ENVIRONMENT IN WHICH ALL STUDENTS CAN THRIVE. IT IS THE RESPONSIBILITY OF ALL THE SCHOOL'S CONSTITUENTS TO MAKE THIS ENVIRONMENT CONDUCIVE TO LEARNING AND TO FOSTER MUTUAL RESPECT FOR ONE ANOTHER. THE ACADEMY STUDENT BODY CONSISTED OF 1,129 STUDENTS FOR THE 2011-2012 SCHOOL YEAR. STUDENTS OF COLOR (INCLUDING STUDENTS OF MIDDLE EASTERN, HISPANIC, AFRICAN AMERICAN, ASIAN AND NATIVE AMERICAN ANCESTRY) REPRESENTED 49.2% OF THE TOTAL STUDENT POPULATION FOR THE 2011-2012 SCHOOL YEAR. APPRECIATION FOR DIVERSITY IS ALSO EXTENDED TO THOSE OF VARIOUS SOCIOECONOMIC LEVELS. THE ACADEMY HAS CHOSEN TO VOLUNTARILY PARTICIPATE IN THE USDA'S NATIONAL SCHOOL LUNCH PROGRAM WHICH PROVIDES NUTRITIONALLY BALANCED, LOW-COST OR FREE BREAKFASTS AND LUNCHES TO STUDENTS EACH SCHOOL DAY, SEE ADDITIONAL DISCUSSION IN 4C - FOOD SERVICES BELOW. ACADEMY STUDENTS BENEFIT ACADEMICALLY FROM SMALL CLASSES (AVERAGING 16 STUDENTS IN THE 6/7 DIVISION TO 15 IN THE 10/12 DIVISION) AND A TEACHER-TO-STUDENT RATIO OF 1:9. 311 STUDENTS TOOK AN ADVANCED PLACEMENT EXAM IN MAY 2012. OF THESE STUDENTS, 73% RECEIVED SCORES OF 4 OR 5, AND 91% RECEIVED A SCORE OF 3 OR ABOVE. THE CLASS OF 2012 HAD 33 NATIONAL MERIT SCHOLARSHIP SEMIFINALISTS, 14 COMMENDED STUDENTS AND 16 NATIONAL HISPANIC SCHOLARS. ALMOST ALL ACADEMY GRADUATES ENROLL IN FOUR-YEAR COLLEGES IMMEDIATELY UPON GRADUATION. LINE 4B: THE ACADEMY SUMMER SESSION THE ACADEMY SUMMER SESSION, OFFERED THE OPPORTUNITY TO 1,874 CHILDREN OF THE GREATER ALBUQUERQUE COMMUNITY (MOST NON-AFFILIATED WITH THE REGULAR SCHOOL YEAR) TO PARTICIPATE IN AN ENRICHING AND EXCITING SUMMER EXPERIENCE, DURING THE FISCAL YEAR ENDED JUNE 30, 2012. THE SCHOOL IS EQUALLY PLEASED TO OFFER THIS PROGRAM TO STUDENTS VISITING ALBUQUERQUE AND NEW MEXICO EACH SUMMER. THE PROGRAM HAD 191 CLASS OFFERINGS AND INCLUDES EARLY CHILDHOOD PROGRAMS, A DAY CAMP, VARIOUS SPORTS CAMPS AND SWIM INSTRUCTION FOR CHILDREN FROM PRESCHOOL TO HIGH SCHOOL, FOR THE FISCAL YEAR ENDED JUNE 30, 2012. CREDIT CLASSES IN MATH AND SCIENCE ARE ALSO OFFERED TO HIGH SCHOOL STUDENTS. AN INTEGRAL PART OF THE SESSION IS THE MULTICULTURAL SUMMER HONORS PROGRAM, A SUMMER SCHOLARSHIP PROGRAM FOR ACADEMICALLY TALENTED AND MOTIVATED AFRICAN AMERICAN, NATIVE AMERICAN, HISPANIC AND OTHER STUDENTS WHO WILL BE ENTERING THE FOURTH AND FIFTH GRADES. SUMMER SESSION HAS BEEN AN INTEGRAL PART OF THE ACADEMY SINCE 1984, REINFORCING THE SCHOOL'S UNIQUE MISSION OF ACCESSIBILITY, AFFORDABILITY, EXCELLENCE AND OUTREACH. THE PROGRAM ALSO BUILDS A BROADER SENSE OF COMMUNITY, AS SUMMER STUDENTS AND THEIR SIBLINGS, AS WELL AS CHILDREN OF FACULTY AND ALUMNI RETURN SUMMER AFTER SUMMER. THE SESSION IS STAFFED BY QUALIFIED AND TALENTED INDIVIDUALS WHO COME FROM THROUGHOUT NEW MEXICO AND THE WIDER NATIONAL AND INTERNATIONAL EDUCATIONAL COMMUNITY. THE TEACHER/STUDENT RATIO'S FOR THE SUMMER SESSION OFFERED FOR THE FISCAL YEAR ENDED JUNE 30, 2012 WAS 1:6 FOR THE DAY CAMP AND CHILDREN'S WORKSHOP CLASSES, 1:12 FOR PRE-GRADE 1-2 CLASSES, AND 1:15 FOR ALL OTHER SUMMER PROGRAMS OFFERED.
GENERAL STATEMENT 4	FORM 990 PART III, LINE 4C-4D, PROGRAM SERVICE ACCOMPLISHMENTS	LINE 4C: FOOD SERVICES THE FOOD SERVICE DEPARTMENT SERVES THE ACADEMY COMMUNITY BY PROVIDING NUTRITIOUS MEALS, PREPARED WITH CARE, PRESENTED IN AN ATTRACTIVE MANNER, AND SERVED IN A FRIENDLY ATMOSPHERE BY A COURTEOUS STAFF WITHIN BUDGETARY GUIDELINES AND IN AN ENVIRONMENTALLY SUSTAINABLE WAY. THE ACADEMY DINING HALLS PROVIDE BREAKFAST AND LUNCH EVERY SCHOOL DAY FOR STUDENTS, FACULTY AND STAFF. LUNCH IS INCLUDED IN TUITION AND STUDENTS ARE REQUIRED TO ATTEND LUNCH AS PART OF THE SCHOOL DAY. STUDENTS MAY SELF-SELECT FROM HOT OR COLD SANDWICHES, A SALAD BAR, PASTA AND PIZZA, HOME-STYLE ITEMS, SOUTHWESTERN AND ASIAN FARE, SOUP, AND MILK/JUICE CHOICES. IN GRADES 6-9, NINE TO TEN STUDENTS AND ONE FACULTY MEMBER EAT AT EACH TABLE. LUNCH TABLES ARE ASSIGNED AND CHANGE ON A REGULARLY SCHEDULED BASIS. BOTH 6/7 AND 8/9 DIVISIONS SELECT CERTAIN DAYS OF THE WEEK FOR FAMILY SEATING, ADVISEE SEATING, OR OPEN SEATING. THIS GIVES STUDENTS THE OPPORTUNITY TO HAVE LUNCH WITH THEIR SCHOOL FAMILY, THEIR FACULTY ADVISER AND FELLOW ADVISEES, THEIR FRIENDS, AND OTHER FACULTY AND CLASSMATES WITH WHOM THEY MAY BE LESS FAMILIAR. IN GRADES 10-12, STUDENTS HAVE OPEN SEATING AND MAY EAT ANYTIME DURING THIS DIVISION'S OPEN LUNCH PERIOD. THE ACADEMY PARTICIPATES IN THE USDA SCHOOL BREAKFAST AND NATIONAL SCHOOL LUNCH PROGRAMS AND FOLLOWS THE NUTRIENT GUIDELINES SPECIFIED FOR THESE MEALS FOR STUDENTS IN GRADES 6-12. CALORIES, CARBOHYDRATES, PROTEIN, VITAMINS A AND C, IRON, CALCIUM, CHOLESTEROL, AND SODIUM ARE EVALUATED DURING MENU PLANNING AND MEET THE USDA REQUIREMENT WHEN AVERAGED OVER A WEEK. TOTAL FAT IS PLANNED TO BE 30% OR LESS AND SATURATED FAT 10% OR LESS. LINE 4D: OTHER PROGRAM SERVICES THE MEDIA LITERACY PROJECT ("MLP") MLP, FOUNDED IN 1993, IS NATIONALLY RECOGNIZED AS A LEADER IN MEDIA LITERACY EDUCATION. ITS MISSION IS TO CULTIVATE CRITICAL THINKING AND ACTIVISM IN MEDIA CULTURE TO BUILD HEALTHY AND JUST COMMUNITIES. MLP DELIVERS DYNAMIC MULTIMEDIA PRESENTATIONS, AT CONFERENCES, WORKSHOPS AND CLASSROOMS ACROSS THE COUNTRY. THE MEDIA LITERACY CURRICULA ACTION GUIDES ARE USED IN COUNTLESS CLASSROOMS AND COMMUNITIES IN ALL 50 STATES AND ABROAD. MLP'S CATALYST INSTITUTE AND OTHER TRAINING PROGRAMS HAVE EMPOWERED THOUSANDS OF PEOPLE TO BE ADVOCATES FOR A MEDIA LITERACY SOCIETY. FOR THE YEAR ENDED JUNE 30, 2012, MLP STAFF DELIVERED 78 PRESENTATIONS AND TRAININGS REACHING 1,062 YOUTH AND ADULTS IN 3 STATES, INCLUDING NEW MEXICO, GEORGIA, TEXAS AND THE DISTRICT OF COLUMBIA. COMMUNITY BUILDERS COMMUNITY OUTREACH IS AN IMPORTANT ASPECT OF THE ACADEMY'S MISSION. THE SCHOOL IS DEEPLY COMMITTED TO MAKING A POSITIVE IMPACT ON THE GREATER ALBUQUERQUE COMMUNITY, THE STATE OF NEW MEXICO AND BEYOND. OUTREACH INITIATIVES ARE ABUNDANT AND COMMUNITY SERVICE IS PART OF THE CURRICULUM AT ALL GRADE LEVELS. EACH YEAR STUDENTS UNDERTAKE PROJECTS AT NUMEROUS NONPROFIT ORGANIZATIONS IN THE COMMUNITY. COMMUNITY BUILDERS IS A TUITION FREE PROGRAM THAT GIVES STUDENTS FROM THE ACADEMY AND OTHER AREA SCHOOLS AN OPPORTUNITY TO LEARN THE NUTS AND BOLTS OF COMMUNITY PHILANTHROPY AND NONPROFIT ORGANIZATIONS. THE PROGRAM INCLUDES A MIX OF SITE VISITS AND MEETINGS WITH COMMUNITY LEADERS TO DISCUSS A VARIETY OF TOPICS, INCLUDING TYPES OF NONPROFITS, LEGAL AND ETHICAL ISSUES IN THE NONPROFIT SECTOR, GRANT WRITING FOR NONPROFITS, NONPROFIT GOVERNING BOARDS AND COMMUNITY LEADERSHIP. AT THE END OF THE PROGRAM STUDENTS COME TOGETHER AS A MOCK FOUNDATION TO MAKE DECISIONS ABOUT HOW TO SUPPORT SOME OF THE NONPROFITS THEY STUDIED, BOTH FINANCIALLY AND THROUGH VOLUNTEER WORK. THE PROGRAM IS PERMANENTLY ENDOWED SO THAT FUNDS TOTALING $10,000 CAN BE ALLOCATED AMONG STUDIED NONPROFITS. APPROXIMATELY 70 NONPROFIT ORGANIZATIONS HAVE PARTICIPATED IN THIS PROGRAM WHICH HAS NOW COMPLETED ITS TENTH YEAR. CHARGER AQUATICS CHARGER AQUATICS IS A COMPREHENSIVE, YEAR-ROUND AQUATICS PROGRAM THAT PROVIDES SWIMMERS IN THE GREATER ALBUQUERQUE AREA WITH OPPORTUNITIES TO LEARN, PARTICIPATE, AND COMPETE IN THE SCHOOL'S STATE-OF-THE-ART AQUATICS FACILITY LOCATED IN THE NATIONALLY ACCLAIMED BARNEY NATATORIUM AND OFFERED AS PART OF THE SCHOOL'S ONGOING COMMITMENT TO PROVIDE SERVICE AND OUTREACH TO THE COMMUNITY AT LARGE. CHARGER AQUATICS OFFERS MEMBERSHIP IN USA-SANCTIONED CLUBS, INCLUDING USA SWIMMING AND US MASTERS SWIMMING, ALONG WITH AN EXTENSIVE MENU OF NON-MEMBER AQUATICS CLASSES SUCH AS AQUA FITNESS AND TODDLER AND PRESCHOOL SWIM LESSONS. TOTAL ENROLLMENT FOR ALL PROGRAMS WAS 300 FOR THE YEAR ENDING JUNE 30, 2012. COMMUNITY ACADEMY COMMUNITY ACADEMY SUPPORTS THE ACADEMY'S COMMITMENT TO COMMUNITY OUTREACH AND LIFE-LONG LEARNING. THE COMMUNITY ACADEMY OFFERS A CONTINUING EVENING LECTURE SERIES, FREE OF CHARGE TO THE ENTIRE COMMUNITY, PRESENTED BY ACADEMY FACULTY AND ALUMNI AND BY COMMUNITY LEADERS WITH EXPERTISE IN THEIR FIELDS.
GENERAL STATEMENT 5	FORM 990, PAGE 5, PART V, LINE 7(G) AND 7(H)	STATEMENTS REGARDING OTHER IRS FILINGS AND TAX COMPLIANCE. FORM 8899 AND 1099-C REPORTING: THE ACADEMY DID NOT RECEIVE CONTRIBUTIONS OF THE TYPE LISTED. THEREFORE THE ACADEMY DOES NOT HAVE A REPORTING REQUIREMENT. THESE QUESTIONS HAVE NOT BEEN ANSWERED AS THEY ARE NOT APPLICABLE.
GENERAL STATEMENT 6	FORM 990, PART VI, SECTION B, LINE 11 A & B:	FORM 990 IS PREPARED BY THE ACADEMY'S CONTROLLER WITH A REVIEW BY THE ACADEMY'S BUSINESS MANAGER AND BY ITS EXTERNAL ACCOUNTING FIRM. A DRAFT OF FORM 990 IS SENT ELECTRONICALLY TO ALL MEMBERS OF THE BOARD OF TRUSTEES. FORM 990 IS ACCOMPANIED BY A SUMMARY REPORT FROM THE BUSINESS MANAGER WHICH EXPLAINS THE FINANCIAL DATA AND NARRATIVE INFORMATION INCLUDED IN THE FORM. THE BOARD OF TRUSTEE'S AUDIT COMMITTEE MEETS WITH ACADEMY EMPLOYEES (HEAD OF SCHOOL, TREASURER AND BUSINESS MANAGERS) TO REVIEW THE FORM IN DETAIL. TRUSTEE MEMBERS UTILIZE THIS TIME TO ASK QUESTIONS, CLARIFY DATA AND MAKE SUGGESTIONS FOR ANY CHANGES. ANY AGREED UPON CHANGES ARE INCORPORATED INTO THE FORM, WITH A FINAL REVIEW UNDERTAKEN BY THE CONTROLLER AND THE BUSINESS MANAGER. THE FORM IS SUBMITTED ELECTRONICALLY TO THE INTERNAL REVENUE SERVICE ("IRS") IN A TIMELY MANNER. THE ACADEMY VALUES THOSE FEW DONORS WHO REQUEST THAT THEY REMAIN ANONYMOUS TO THE COMMUNITY. TO THAT END, TO PROTECT SUCH DONORS AND KEEP THE SCHOOL'S PROMISE THAT THEIR IDENTITY WILL NOT BE WIDELY KNOWN, SCHEDULE B IS NOT PROVIDED TO ALL TRUSTEES OF THE SCHOOL. ALL OTHER PORTIONS OF THE FORM 990 ARE PROVIDED TO ALL TRUSTEES. TO PROTECT THE ORGANIZATION FROM THE POTENTIAL OF INAPPROPRIATE GIFTS TO THE SCHOOL, THE HEAD OF SCHOOL, THE TREASURER AND THE DIRECTOR OF INSTITUTIONAL ADVANCEMENT ARE COMPLETELY AWARE OF THE IDENTITY OF ALL DONORS. SHOULD ANY ONE OF THEM DETERMINE THAT A DONATION MIGHT BE INAPPROPRIATE OR POSE A CONFLICT WITHIN THE ORGANIZATION, THEY ARE CHARGED WITH RAISING THE ISSUE WITH THE CHAIR OF THE BOARD. THE SCHOOL PUBLISHES A COMPREHENSIVE GIVING REPORT ON AN ANNUAL BASIS THAT IS AVAILABLE TO THE PUBLIC. BEGINNING WITH THE NEW FISCAL YEAR ON JULY 1, 2013, THE BOARD CHAIR WILL BE A FOURTH PERSON WITH DIRECT KNOWLEDGE OF ALL DONORS, AND ANY PERCEIVED ISSUES WILL BE RAISED TO A COMMITTEE OF THE BOARD OF TRUSTEES.
GENERAL STATEMENT 7	FORM 990, PART VI, SECTION B, LINE 12C:	THE CONFLICT OF INTEREST STATEMENT IS DIRECTED TO OFFICERS, TO THOSE WHO MAKE PURCHASING DECISIONS, TO ALL PERSONS WHO ARE DESCRIBED AS MANAGEMENT PERSONNEL AND TO ANYONE WHO HAS PROPRIETARY INFORMATION CONCERNING THE ACADEMY. EACH EMPLOYEE MUST SIGN A STATEMENT ANNUALLY WHICH AFFIRMS SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY AND HAS AGREED TO COMPLY WITH THE POLICY. THIS IS TO ENSURE THE ACADEMY OPERATES IN A MANNER CONSISTENT WITH CHARITABLE PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS. PERIODIC REVIEW SHALL, AT A MINIMUM, INCLUDE WHETHER TRANSACTIONS BETWEEN EMPLOYEES AND THE SCHOOL ARE NEGOTIATED AS THE RESULT OF "ARM'S LENGTH BARGAINING" AND WHETHER PARTNERSHIPS, JOINT VENTURES AND ANY OTHER BUSINESS ARRANGEMENTS WITH THE SCHOOL ARE PROPERLY RECORDED. TRANSACTIONS ARE FURTHER REVIEWED TO ENSURE THEY REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, THEY FURTHER CHARITABLE PURPOSES AND THEY DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR ANY EXCESS BENEFIT TRANSACTION. ACCOUNTING AND OTHER PERSONNEL ARE ENCOURAGED TO REPORT A SITUATION INVOLVING A POTENTIAL CONFLICT OF INTEREST TO AN APPROPRIATE SCHOOL OFFICIAL.
GENERAL STATEMENT 8	FORM 990, PART VI, SECTION B, LINE 15A & B:	THE BOARD OF TRUSTEE'S EXECUTIVE COMMITTEE TAKES RESPONSIBILITY FOR THE EVALUATION OF ITS TWO DIRECT REPORTS, THE HEAD OF SCHOOL AND THE TREASURER, AND FOR THE DETERMINATION OF COMPENSATION FOR EACH OF THOSE INDIVIDUALS. THE EXECUTIVE COMMITTEE CONSISTS OF THE BOARD CHAIR, VICE CHAIR, SECRETARY, ASSISTANT SECRETARY, ASSISTANT TREASURER, AND TWO AT-LARGE BOARD MEMBERS APPOINTED BY THE CHAIR. ALL BOARD MEMBERS, INCLUDING THE MEMBERS OF THE EXECUTIVE COMMITTEE, SUBMIT A CONFLICT OF INTEREST DISCLOSURE STATEMENT TO THE CHAIR OF THE BOARD ANNUALLY. THESE ARE UTILIZED TO DETERMINE THAT THE COMMITTEE MEMBERS DO NOT HAVE ANY CONFLICTS OF INTEREST AND THEY DO NOT HAVE ANY DIRECT FINANCIAL INTEREST IN THE COMPENSATION PROVIDED TO THE HEAD OF SCHOOL OR TO THE TREASURER. IN ADDITION, AT THE TIME THE EXECUTIVE COMMITTEE CONSIDERS COMPENSATION QUESTIONS, EACH COMMITTEE MEMBER IS ASKED AGAIN TO CONFIRM THAT THEY DO NOT HAVE ANY CONFLICTS OF INTEREST. THE EXECUTIVE COMMITTEE HAS, IN SOME YEARS, RETAINED A COMPENSATION CONSULTANT INTIMATELY FAMILIAR WITH COMPENSATION FOR THE HEADS OF INDEPENDENT SCHOOL'S BOTH IN THE REGION AND NATIONALLY. THE CONSULTANT HAS NO FINANCIAL OR OTHER INTEREST IN THE COMPENSATION DECISIONS MADE. THE CONSULTANT HAS PREPARED A STUDY OF UP TO THIRTY OR FORTY SCHOOLS THAT ARE OR MAY BE COMPARABLE TO THE ACADEMY IN TERMS OF COMPLEXITY, SIZE OF OPERATING BUDGET, GRADE RANGE AND STUDENT BODY SIZE. THE CONSULTANT ALSO CONSIDERS HEADS OF SCHOOL WITH EXPERIENCE LEVELS COMPARABLE TO THE ACADEMY'S HEAD OF SCHOOL. THE CONSULTANT'S COMPENSATION INFORMATION INCLUDES EVIDENCE OF SALARY, BONUSES, BENEFITS AND OTHER NON-CASH CONSIDERATION THAT OTHER HEADS OF SCHOOL MAY RECEIVE. THE EXECUTIVE COMMITTEE CONSIDERS THE INFORMATION ASSEMBLED BY THE CONSULTANT, AND IN ADDITION, INFORMATION GATHERED FROM FORM 990'S OF OTHER INDEPENDENT SCHOOLS, NEWS SOURCES AND INDEPENDENT SCHOOL ASSOCIATIONS, IN SETTING COMPENSATION FOR THE HEAD OF SCHOOL, TOGETHER WITH ANY INFORMATION OBTAINED FROM ANY EVALUATIONS THAT MAY HAVE BEEN PERFORMED, ORDINARILY IN THE SPRING AND EARLY SUMMER, IN ADVANCE OF THE BEGINNING OF THE ACADEMY'S FISCAL YEAR. THE EXECUTIVE COMMITTEE MAINTAINS MINUTES OF ITS MEETINGS, INCLUDING THOSE IN WHICH COMPENSATION MATTERS ARE CONSIDERED. THE CHAIR OF THE BOARD REPORTS THE COMPENSATION DECISIONS TO THE FULL BOARD. THE MOST RECENT COMPENSATION CONSULTANT STUDY WAS COMPLETED DURING THE 2009-2010 FISCAL YEAR. THE COMPENSATION CONSULTANT PROVIDED A LETTER TO THE ACADEMY'S EXECUTIVE COMMITTEE CONFIRMING HIS JUDGMENT THAT THE HEAD OF SCHOOL'S COMPENSATION WAS REASONABLE AND APPROPRIATE. AS NOTED, THIS INFORMATION IS SUPPLEMENTED BY MORE RECENT INFORMATION. DETERMINING COMPARABILITY OF THE TREASURER'S COMPENSATION IS MORE DIFFICULT BECAUSE OF THE PAUCITY OF INFORMATION AVAILABLE. THE TREASURER'S POSITION AT THE ACADEMY INVOLVES A FAIRLY UNIQUE SET OF RESPONSIBILITIES IN INDEPENDENT SCHOOLS, RANGING FROM MANAGEMENT OF A SUBSTANTIAL ENDOWMENT TO A WIDE RANGE OF DEBT MANAGEMENT, BUSINESS AND FINANCIAL MATTERS. ONE OF THE REPORTS DONE BY THE COMPENSATION CONSULTANT DID INCLUDE INFORMATION REGARDING THE TREASURER'S COMPENSATION BY COMPARABILITY TO THE SECOND HIGHEST PAID OFFICER OF THE SUBJECT SCHOOLS. THAT INFORMATION, COUPLED WITH INFORMATION FROM A SURVEY BY AN ASSOCIATION OF SCHOOL BUSINESS OFFICERS, CERTAIN FORM 990 INFORMATION, AND THE KNOWLEDGE OF THE MEMBERS OF THE EXECUTIVE COMMITTEE OF COMPENSATION LEVELS PREVAILING IN THE GEOGRAPHIC AREA FOR PERSONS WITH THE SKILL SET AND WORK ETHIC NECESSARY TO FILL THIS OFFICE HAVE BEEN USED TO SET COMPENSATION SINCE THAT STUDY. THE EXECUTIVE COMMITTEE IS LOOKING FOR ADDITIONAL MEANS OF DOING COMPARISONS OF COMPENSATION. PROSPECTIVELY, THE EXECUTIVE COMMITTEE HOPES TO BE ABLE TO USE ADDITIONAL RESOURCES FOR MAKING COMPENSATION DECISIONS. THE NEWLY ENHANCED VERSIONS OF THE FORM 990 ARE AVAILABLE FROM COMPARABLE SCHOOLS, WILL ALLOW THE ACADEMY TO PROCEED DURING MOST YEARS, BY CONSIDERING THOSE (PERHAPS WITH A LIMITED ACCOUNTING FIRM CONFIRMATION OF THE INFORMATION) TOGETHER WITH INFORMATION AVAILABLE FROM INDEPENDENT SCHOOLS AND BUSINESS ASSOCIATIONS EACH YEAR, AND ADDING IN A CONSULTANT'S STUDY AND REPORT ON A REGULAR BASIS.
GENERAL STATEMENT 9	FORM 990, PART VI, SECTION C, LINE 19:	THE ACADEMY KEEPS A DATABASE (UPDATED ANNUALLY) OF FINANCIAL INSTITUTIONS, BONDHOLDERS AND VENDORS WHO HAVE REQUESTED A COPY OF THE ACADEMY'S AUDITED FINANCIAL STATEMENTS AS A CONDITION OF PROVIDING CREDIT AND SERVICES TO THE SCHOOL. AFTER THE AUDIT IS COMPLETED AND ACCEPTED BY THE BOARD OF TRUSTEES, ELECTRONIC COPIES OF THE STATEMENTS ARE DISTRIBUTED TO ALL ENTITIES IN THE DATABASE. THE ACADEMY DOES NOT CURRENTLY MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC.
GENERAL STATEMENT 10	FORM 990 PART VIII - STATEMENT OF REVENUE LINES 11(A), 11(C), AND 11(D)	FOR THE YEAR ENDED JUNE 30, 2012, THE ACADEMY ISSUED AUDITED SPECIAL PURPOSE FINANCIAL STATEMENTS. THE SPECIAL PURPOSE FINANCIAL STATEMENTS DID NOT CONSOLIDATE THE ACADEMY'S INVESTMENT IN HIGH DESERT. UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), CONSOLIDATION OF HIGH DESERT IS REQUIRED. INSTEAD, THE INVESTMENT WAS ACCOUNTED FOR AND REPORTED UNDER THE EQUITY METHOD OF ACCOUNTING. THE ACADEMY REPORTED UNDER THE SPECIAL PURPOSE BASIS BECAUSE MANAGEMENT OF HIGH DESERT INTENDS TO CEASE OPERATIONS IN THE NEAR TERM, AND THE ACADEMY DOES NOT EXPECT TO REALIZE ANY ECONOMIC BENEFIT FROM OR OBLIGATION TO HIGH DESERT, EXCEPT TO THE EXTENT THAT THE ACADEMY IS A CO-SIGNOR ON A NOTE PAYABLE HELD BY HIGH DESERT. THE ACADEMY INTENDS TO MEET ITS OBLIGATIONS UNDER THE CO-SIGNED NOTE PAYABLE AND RECORDED THE FULL $4,000,000 NOTE PAYABLE OUTSTANDING. THE ACADEMY'S EQUITY METHOD INVESTMENT IN HIGH DESERT WAS EVALUATED FOR IMPAIRMENT DURING FISCAL YEAR 2012, AND WAS DETERMINED TO BE FULLY IMPAIRED. THE ACADEMY RECOGNIZED A LOSS OF $23,379,938. THIS LOSS INCLUDED THE CARRYING VALUE OF THE INVESTMENT IN HIGH DESERT AT JUNE 30, 2012 OF $19,379,938, PLUS THE $4,000,000 NOTE PAYABLE ASSUMED BY THE ACADEMY. THE FOLLOWING TABLE SUMMARIZES THE INVESTMENT BALANCE OF HIGH DESERT AT JUNE 30, 2012: INVESTMENT IN HIGH DESERT, JULY 1, 2011 $19,495,953 CONTRIBUTIONS $ 1,675,000 NET LOSS FROM INVESTMENT IN HIGH DESERT $(1,791,015) ---------------- INVESTMENT IN HIGH DESERT, BEFORE IMPAIRMENT $ 19,379,938 IMPAIRMENT OF INVESTMENT IN HIGH DESERT $(19,379,938) ---------------- INVESTMENT IN HIGH DESERT, JUNE 30, 2012 NONE ================ LINE 11(B) AS A RESULT OF THE ECONOMIC CRISIS THAT BEGAN IN 2008, HIGH DESERT HAS EXPERIENCED REDUCED INTEREST IN ITS DEVELOPMENT AT MARIPOSA. DURING THE LAST SEVERAL YEARS, HIGH DESERT HAS EXPERIENCED VIRTUALLY NO NEW LOT SALES AT MARIPOSA. AS A RESULT OF THE CONTINUED ECONOMIC DOWNTURN AND THE ACADEMY'S IMPAIRMENT OF HIGH DESERT IN FISCAL YEAR 2012, AN APPRAISAL OF THE ACADEMY'S INVESTMENT IN MARIPOSA EAST AND MARIPOSA WEST WAS PERFORMED. MARIPOSA WEST CONSISTS OF 2,931 ACRES OF AN UNDEVELOPED TRACT, AND MARIPOSA EAST CONSISTS OF APPROXIMATELY 4.1 ACRES OF IMPROVED PARCELS, WHICH ARE BOTH LOCATED IN RIO RANCHO, NEW MEXICO. THE ACADEMY ENGAGED THE SERVICES OF A THIRD-PARTY APPRAISER TO DETERMINE THE VALUE OF MARIPOSA WEST AND EAST. THE APPRAISER CONSIDERED VARIOUS VALUATION TECHNIQUES AND DETERMINED THAT THE MOST APPROPRIATE TECHNIQUE FOR THE VALUATION WAS THE SALES COMPARISON APPROACH. THIS APPROACH WAS SELECTED OVER OTHER METHODS AS THE MARIPOSA LAND IS CURRENTLY NOT GENERATING REVENUE THAT COULD BE USED TO PREPARE A DISCOUNTED CASH FLOW ANALYSIS. THE SALES COMPARISON APPROACH CONSISTED OF THE APPRAISER REVIEWING VARIOUS SOURCES OF INFORMATION TO ARRIVE AT A FAIR VALUE FOR MARIPOSA WEST AND EAST. THESE SOURCES INCLUDED INFORMATION PROVIDED BY THE ACADEMY, COUNTY RECORDS, VARIOUS DATABASES OF RECENT SALES ACTIVITY OF SIMILAR PROPERTIES AND CURRENTLY LISTED PROPERTIES, PREVIOUS APPRAISALS, AND A PERSONAL INSPECTION OF THE PROPERTY. THE APPRAISAL RESULTED IN A FAIR VALUE OF MARIPOSA WEST AND EAST OF $11,275,000 AND $800,000. THE APPRAISAL WAS BELOW THE CARRYING VALUE OF THESE INVESTMENTS AT JUNE 30, 2012, WHICH RESULTED IN THE ACADEMY RECOGNIZING AN IMPAIRMENT FOR THESE INVESTMENTS TOTALING $6,035,123.
GENERAL STATEMENT 11	FORM 990, PART XI, PAGE 12, LINE 5:	FOR THE YEAR ENDED JUNE 30, 2012, THE ACADEMY RECORDED UNREALIZED LOSSES OF $5,169,027 ON ITS INVESTMENTS IN THE ENDOWMENT FUND, BASED ON FLUCTUATIONS IN THE MARKET.
GENERAL STATEMENT 12	FORM 990, PART XII, PAGE 12, LINE 2C:	FINANCIAL STATEMENTS AND REPORTING THE PROCESS FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT BY THE AUDIT COMMITTEE HAS NOT CHANGED FROM THE PRIOR YEAR.
GENERAL STATEMENT 13	SCH K, PART I, LINE A, COLUMN F:	IN SEPTEMBER 2010, THE ACADEMY ISSUED $36,000,000 OF SERIES 2010 BONDS FOR THE PURPOSE OF REFUNDING SERIES 1999 BONDS AND SERIES 2002 BONDS, TERMINATING A MASTER AGREEMENT AND SWAP TRANSACTION WITH CHASE MANHATTAN BANK AND ACQUIRING AND INSTALLING INFRASTRUCTURE IMPROVEMENTS ON THE SCHOOL CAMPUS. THE SERIES 2010 BONDS WERE ISSUED AT A PREMIUM OF $1,303,574, RESULTING IN TOTAL PROCEEDS OF $37,303,574.
GENERAL STATEMENT 14	SCHEDULE K, PART II, LINE 17:	THE ACADEMY'S SERIES 2010 BONDS PROVIDED APPROXIMATELY $6.0 MILLION IN PROCEEDS TO FUND UPDATES OF FIRE ALARM AND SMOKE DETECTION SYSTEMS, REPLACEMENT OF ELECTRICAL LOAD AND MOTOR CONTROL CENTERS IN ORIGINAL CAMPUS BUILDINGS, REPLACEMENT OF BURIED HOT WATER AND CHILLED WATER LOOP LINES, AND REPLACEMENT OF CERTAIN ROOFTOP HVAC UNITS AND RENOVATION OF CLASSROOM BUILDINGS AND FIXTURES, INCLUDING CLASSROOM TECHNOLOGY UPGRADES. THESE PROJECTS ARE EXPECTED TO RESULT IN SUBSTANTIAL OPERATIONAL SAVINGS OVER THE NEXT SEVERAL YEARS. AS OF JUNE 30, 2012, THE ACADEMY HAD $3.3 MILLION IN PROCEEDS REMAINING TO COMPLETE ITS VARIOUS CAPITAL PROJECTS. THE BOND PROCEEDS HELD FOR THESE PROJECTS ARE ESCROWED AT WELLS FARGO. AS PROJECTS ARE COMPLETED OR AS PROGRESS BILLINGS ARE RECEIVED, THE ACADEMY SUBMITS THE APPROPRIATE SUPPORTING DOCUMENTATION TO WELLS FARGO, WHO IN TURN PROVIDES A REIMBURSEMENT TO THE SCHOOL FOR THE FUNDS EXPENDED. THE ACADEMY EXPECTS TO SPEND THE FULL $6.0 MILLION WITHIN THE THREE-YEAR PERIOD ALLOWED UNDER THE TERMS OF THE BOND AGREEMENT.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2011

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SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ALBUQUERQUE ACADEMY

Employer identification number

85-0129165

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) ALBUQUERQUE ACADEMY EDUCATIONAL FDN 6400 WYOMING BLVDNE ALBUQUERQUE,NM87109 85-0381395	SUPRT. ISAS	NM	501(C)(3)	TYPE II	ALBUQ ACDMY		No
(2) ALBUQUERQUE ACADEMY STUDENT SUPPORT FDN 6400 WYOMING BLVDNE ALBUQUERQUE,NM87109 20-5895188	PROVIDE SUPRT	NM	501(C)(3)	TYPE II	ALBUQ ACDMY		No
(3) ALBUQUERQUE ACADEMY FOR BOYS TRUST #1 1300 MERRILL LYNCH DRIVE 3RD FLOOR PENNINGTON,NJ08534 86-6008015	PROVIDE SUPRT	NM	501(C)(3)	TYPE III	NA		No
(4) ALBUQUERQUE ACADEMY FOR BOYS TRUST #2 1300 MERRILL LYNCH DRIVE 3RD FLOOR PENNINGTON,NJ08534 85-6014105	PROVIDE SUPRT	NM	501(C)(3)	TYPE III	NA		No

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership
(1) HIGH DESERT INVESTMENT CORPORATION 2500 PARKWAY AVE NE STE 200 RIO RANCHO,NM87144 85-0394108	REAL ESTATE	NM	ALBUQ ACADEMY	C CORP	-1,791,015	0	100.000 %

Schedule R (Form 990) 2011

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .

m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

q Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

r Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1) HIGH DESERT INVESTMENT CORPORATION	B	1,675,000	CASH
(2) HIGH DESERT INVESTMENT CORPORATION	P	21,250	CASH
(3) HIGH DESERT INVESTMENT CORPORATION	D	4,000,000	FV OF NOTE
(4)
(5)
(6)

Schedule R (Form 990) 2011

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2011

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation
SUPPLEMENTAL INFORMATION 1	FORM 990, SCHEDULE R PART V, LINE 1:	IN 1991, THE ACADEMY'S BOARD OF TRUSTEES FORMED HIGH DESERT, FOR THE PURPOSE OF ACQUIRING AND DEVELOPING PROPERTY OWNED BY THE ACADEMY. IN RECENT YEARS, HIGH DESERT HAS BEEN AFFECTED BY ADVERSE MARKET CONDITIONS, PRIMARILY THE DECREASING INTEREST IN REAL ESTATE DEVELOPMENT. UNDER GAAP, THESE FACTORS ARE INDICATORS OF IMPAIRMENT THAT REQUIRED AN IMPAIRMENT ANALYSIS TO BE PERFORMED AS OF JUNE 30, 2012, BY THE ACADEMY OF ITS INVESTMENT IN HIGH DESERT. THE ACADEMY'S ANALYSIS INDICATED THAT ITS ENTIRE INVESTMENT IN HIGH DESERT WAS IMPAIRED AT JUNE 30, 2012. ACCORDINGLY THE ACADEMY REDUCED THE CARRYING VALUE OF ITS INVESTMENT IN HIGH DESERT TO ZERO AT JUNE 30, 2012, RESULTING IN AN IMPAIRMENT LOSS OF $19,379,938. THIS IMPAIRMENT HAS RESULTED IN THE ACADEMY REFLECTING A ZERO SHARE OF END OF YEAR ASSETS IN THE FORM 990.

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