with gratitude

2013 ANNUAL REPORTwith gratitude

ourmissionKeystone Science School educates youth and adults to broaden perspectives and foster appreciation for engaged citizenship. We accomplish this through meaningful and collaborativelearning experiences in the natural mountain environment that incorporate nonbiased scientific inquiry, leadership development, civic engagement, and academic rigor.

our valuesWe change lives. It’s a lofty claim, but we know that people are impacted through their experiences at Keystone Science School. Our lives have been transformed and we inspire others to reflect, grow, and change as well.

We foster open, honest relationships.We care abouteach other and those we serve and strive to be approachable, friendly, and authentic in all interactions.We believe that being mindful leads to higher levels ofprofessionalism and instills trust.

We strive for excellence. We maintain high expectationsfor ourselves and seek challenges for the betterment ofthose we serve. We embrace an entrepreneurial spiritand incorporate innovative ideas into our programs.

We find joy in teaching and learning.We live our missionand bring fun and laughter to everything we do, everyday. We’re academic, but far from boring.

We ask questions and seek solutions. We inspire criticalthinking in each other and those with whom we work. By presenting topics and issues in a non-biased way, we provide tools to learn how to think, not what to think.

We are accountable. The numbers are equally as important as the mission. Transparency is critical andwe keep a close eye on financial success.

Keystone Science SchoolBoard of Directors

Keystone Science School Staff

Douglas D. SimsChairman of the Board, Retired CEO CoBank

Jeff CampeauMemberPresident, FirstBank, Summit County Market

John FitzgeraldTreasurer, Retired Pilot

Heidi PaceMemberSuperintendent of Schools, Summit County

Ty PenningtonMemberEntrepreneur

Sherry StrongSecretary,Retired Professor

Ellen ReidExecutive Director

Mark AndersonProperty Manager

Kristina HortonSchool Programs Logistics Manager

Dennis KuhnFacilities & Operations Director

Patti MacKenzieAccounting Clerk

Annie MarkusonCATCH Program Manager

Dave MillerSchool Programs Director

Patrick NashleanasSchool Programs Assistant Director

Megan NuttelmanMarketing & Development Director

Seth OglesbyCamp & Community Programs Director

Angela ShetzerFinance & Administration Director

Amanda SeidlerBusiness Manager

Nora SimmonsMarketing & Development Coordinator

Jen StachelskiEducator Programs Coordinator

Lisa ThatcherCamp & Community Programs Coordinator

Emily WeberEducator Programs Director

Dear Friends,Imagine being in a race car speeding around the track at 100mph. Without warning, the tire goesflat and you have to change it without slowing down a bit. You still want to win the race, but have toadjust your plans to make it to the finish line. Sounds like an impossible situation, right? It’s akin tothe situation Keystone Science School found itself in at the start of 2013. And, without the supportof an incredible team of staff, donors, volunteers, and alumni we may not have crossed the so-called ‘finish line.’

On March 1, 2013, Keystone Science School became an independent nonprofit organization. We are humbled and grateful for the incredible showing of support that helped us purchase the 23-acre campus on which we continue to operate and offer our valuable programs. Throughoutthis transition our programs never faltered, impacting over 6,000 youth and educators as you’ll seein this, our first Annual Report. This year’s Annual Report theme is gratitude. We couldn’t feel moreappreciation for the long list of individuals and organizations who have helped KSS throughout thistransitional year.

We’re also happy to report that Keystone Science School’s financials at year-end were strong, reflecting our firm commitment to careful management. We watched our financials closely, plannedaccordingly, and continued to offer the high-quality educational experiences for which we are known.We took time to reconnect to our core values and remembered how much we value our rootsthrough the original vision of our founder, Bob Craig. We’ve set goals for the years ahead to ensureour programs and impact will extend well into the future. We know that with every success comesnew challenges, and with the support of our KSS family of donors, volunteers, staff, and alumni,we’re excited about what’s ahead.

We welcome and value your input and hope you’ll reach out with ideas, thoughts, and comments.Thank you for your continued support and for believing in the work we do.

With gratitude,

Ellen Reid Douglas D. SimsExecutive Director Chairman of the Board

1053 Soda Ridge Rd. Keystone, CO 80435 KeystoneScienceSchool.org

2576,077838

4,46497

60017460

We became an independent nonprofit organization in March 2013 thanks to the 257donors who contributed to the Campaign for KSS, enabling us to continue our 30 plusyear legacy of educating youth, adults, and our community.

In 2013, we worked with 6,077 individuals through our array of program offerings.

Camp teaches kids valuable social skills, independence, and bonds people together like few other experiences. This year 838 campers enjoyed outdoor education, high adventure, and unforgettable fun.

During the school year 4,464 students took their lessons outside the classroom learning science experientially while hiking, snowshoeing, and cross-country skiing.

Teachers and their students from 97 schools ventured to our campus at 9,200 feetbringing their lessons to life in the heart of the Rocky Mountains during our School Programs.

Our suite of innovative, interactive Community Programs helped 600 individuals grow professionally and personally.

KSS introduced a fresh approach to teaching STEM to 174 teachers through Educator Programs.

We thrived thanks to more than 60 committed volunteers who generously gave their time and energy to supporting KSS.

making an impact

special donor profile Ty Pennington Remembered

Keystone Science School’s dear friend and generous supporter, Ty Pennington, passed away in April2014. While he was taken from us too early, his contributions and spirit will always be remembered.Ty was a kind and generous man with a firm belief in community, family, and helping others. The firstday he walked onto KSS's 23-acre campus was a typical chilly day in early October 2012. At thetime neither Ty nor the staff at KSS had any idea what a meaningful and special relationship wasabout to take root. He was there simply to learn more about our Legacy Camp program, but wasso moved by what he heard that he left us with a check that fully covered the cost of the programfor one year. We were shocked, overjoyed, and amazed at the generosity of a man we hardly knew.

Designed for children dealing with the loss of a family member, Legacy Camp instills pride andstrength through the concept of legacy. With intentional, purposeful programming we work to providethese children with a sense of community, empowerment, and fun.

Ty and his wife, Missie, opened their ranch to the Legacy Camp participants who enjoyed a multi-day adventure complete with beautiful hikes, campfires, s’mores, and connection to the outdoors. He wasn’t one to sit back and watch from afar – he jumped in and got to know the childrenimpacted by his generous gift, even sleeping in the dorms on our campus to better understand the program.

Ty’s involvement with KSS didn’t stop at Legacy Camp. He became a BoardMember and was also the lead donor in our Campaign for KSS—the emergency fundraising effort that allowed Keystone Science School to become an independent organization in 2013. Ty and Missie gave $1m to theeffort and ensured that the impact of KSS’s programs could be realized forgenerations to come. Our 23-acre campus is named Pennington Campus inhonor of this generous support.

As a Catalyst donor — one who gives more than $1,000 each year — Ty participated in other programs at KSS to learn more about what we do. One snowy afternoon Tycame to see the CATCH Afterschool Program in action at Dillon Valley Elementary. And in typical Tyfashion, we didn’t have to twist his arm very hard to get him in the game — he jumped right in andwas playing games and running around with the kids. His mischievous smile and good-natured competitive streak made him popular with the kids in no time.

We have been repeatedly humbled and honored by the generosity and devotion we have received from Ty and Missie over the last couple of years. Ty’s energy, intelligence, motivation, andapproachability made him a natural friend of KSS and a valued advisor for our organization. He willbe deeply missed.

our supportersAs a nonprofit organization, we rely on the incredible generosity of our donors and volunteers. Without generous supporters who donate time, energy, and dollars, Keystone Science School simplywould not exist. Their commitment is fundamental to our ability to provide meaningful, collaborativelearning experiences to the greatest number of students, campers, educators, and communitymembers. We are grateful to every one of our supporters who invest in the future of KSS. We apologize for any errors or omissions. Please contact us if you would like to be listed differently inthe future.

2013 donors* Denotes donors that gave to Campaign for KSS

INDIVIDUALSGreg and Kim Adams*

In Memory of Sandra CookJulie Ammons*Judith Andersen*Alex and Lizzie Anderson*

In Honor of David GottliebElusia Andrus*Andrew Banks*David and Sallie Bartlett*Marc and Brooke Beasley*Marianne Bednarz*George and Virginia BellBill and Rita Bergman*William and Jane Bergman*Carl and Lynda Birkelbach*William BisignanoMike and Annie Blakely*Jerred and Rita BlanchardCharles and Meredith BleskanGeorge and Kristi Blincoe*Daniel Blue*Keith and Barbara Bond*Susan Bonfield*Richard and Margaret Bowes*

In Honor of Quinn WeinbergerFrank and Glenice Bowman*John and Ann BoydDonna Braun*Ben Brewer*Robyn Brewer*Julie Britti*James and Linda Brown*

Glen and Lisa Brozovich*Andrew and Jennifer BruenWayne and Mollie Brunetti*Ethel BrunsJohn and Kerry Buhler*Jack and Rebecca Bullock*David and Kathy Bussman*Rodger BybeeRuss and Judy Camp*Emily Campbell*Gary and Barbara CampbellJeff CampeauWarren CapellDick and Cathy CarletonJohn Carney and Elaine Walsh CarneyTom Carpenter*Jerome and Gudrun Carr*Matthew Carriglitto*Ed and Alison Casias*Frank Celico and Kristi Parker Celico*

In Honor of Bob CraigDayton and Anne Marie Chapin*Donald and Sandy ChisholmTom Clancy and Kathryn Covell*Richard and Mary Clark*Michael and Joyce Clary*Mike and Linda Clem*

In Honor of Lee Henry, Joey Terriquez, Wilson Strong, Cap Witzler

Nicholas ClinchCathleen CoffeyEleanor Conaway*

In Honor of e Bruen Children

Randall and Donna Cook*Brian Cook*Bert and Karen Cook*James Copp*Steve and Kathy Corneillier*Gary and Mary Cary Coughlan*Scott and Allison Cowperthwaite*Robert and Terry CraigPaul Crevello*William DanforthCami Dato*omas and Pamela Daugherty*omas Davidson*M.A. Deen*Stephanie Dobbie*Inigo Domenech*David and Denise Downing*Kim Dykstra-Dilallo*Joel Egbert*Jim Ellefson*Halle Enyedy*Dan Fallon*Joy Ferrante*Gary and Rebecca FerreraDavid and Leslie FiackJohn and Jean Fitzgerald*Robert and Nancy Follett*Martin and Melanie Frank*Curtis and Pamela Frasier*Jeanne Frasse*Mi-Sun FreemanGerald and Annette Fricke*Fred and Ellen Fulkerson*Jennifer Gallagher*Michael and Carol Gallagher*Maryann Gaug*Kasey GeogheganLeslie GerhardCory and Kristin GilchristWilliam and Marianna Goslau*Jeff Grabham*Annie Graeter*Bob and Christine Graeter*Michael Grail and Shelly Braudis GrailBarry Gray*Dan and Kelie GrayKim Groff*

In Memory of Kyle OrdwayJessica Gruber

Jennifer GuniasRobin Hadley*Erin Hall*Roland and Marilyn HalpernRich and Millie Hamner*Dede HapnerElizabeth HarrisonCarrie Harvey*

In Honor of Chase Harvey SkubizJohn and Valerie HauptLex and Mitzie Hawkins*Lee and Peg Henry*Al and Terry Hershey*Charles and Katy Hirt*Philip HolbertScott and Kate Hollrah*Ronald and Jeanette Hollrah*Joan Houlton*Kristen Howland*Bob and Linda Hrycaj*John and Kate Hudnut*Kim Huss*Alvin and Mary Jacobson*Janie James*Kimberly JardimWarren and Becky Johnson*Donald and Susan Johnson*Kara Johnson*

In Honor of Ellen ReidRobert and Marj Julian*Jaynanne Karl*Kristy Kelton-Gruber*Cathleen KendallCecelia Kern*

In Honor of All CampersTom and Barb KimballJon Kirkpatrick*Jennifer Klein*

In Honor of Darrow and Noah KleinAdam Knoff*Lindsay Knott*David and Nini Koch*David Kraemer*Bruce and Marilynn Kramer*Cody Kremer*David and Susan Kubes*Dennis Kuhn*Janice KurbjunRobin Lakoski*

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ors continued

Lisa Lara*Oswaldo Lastres and Susan Nedza LastresDonna Leclerc*Darryl and Molly Lee*Charles Lenzmeier and Valerie Williams*Marcus and Andrea LeskovarLeon and Denise Levy*Andy and Sally Lewis*Connie Lewis*Doug Lindsey*Gates and Kelly Lloyd*John LonghillSusan LuizCharles and Laurie Maguire*Andrew Main and Elizabeth Gander*Anamarie MaltzmanEric and Sara Mamula*Scott Marion*Gary and Phyllis Martinez*John and Karen Mason*Jerry and Rose Marie Mastenbrook*Shaina Maytum*Jennifer McAtamney*Jamie and Julie McCluskie

In Honor of Ian McCluskieDominique McLerranMark McMullen and Lori WalterJoel and Patti Meier*Jennifer Meltzer*Anthea Millar*David Miller*Dave Miller*Gary and Kikken Miller*J. Boyd and Deb Mitchell*Keith and Beth MooreAdele Morano*Todd and Megan Morgan*James MorrisGreg and Tamara Moses*Bobby and Jenny Murphy*Aaron and Vicki MurrayKristen NadeauChristopher and Lynne Nelson*Bryan Nestingen*Terry and Valerie Novak*Josh and Megan Nuttelman*Lon and Susie NuttelmanJames Oberheide*David Oetting*

Seth Oglesby*Joseph and Frances O'Malley*Chris and CJ Ornes*David Ownes*Heidi PacePaula Parker*Don Parsons*Ron and Wendy PeltonRobert and Ann PenaTy and Missie Pennington*Bill and Roberta PenningtonSteven and Kristen Popoff*Greg and Brenda Poulter*Jeff and Kathy Proctor*Jason PurdyBill and Cindy Putnam*Kimberly QualizzaDana Query*Arthur and Pamela Rantilla*Randy and Rachel Rehn*Greg Reiche*Scott and Ellen Reid*Mike and Alice ReidChris and Julie Rhody*Bernard and Jennifer RiberdyChris Richard*Wendy RimelGeralyn Ritter*Mark and Heather Roberts*William and Margaret Roher*John and Patti Rosenkranz*Steve and Laura Rossetter*Janice Rossing*Mary Anne Rossing*Christa RostMark and Susan Rost*Jack and Moe Rouse*Brett and Carolyn RubensteinJack and Mary-Bob Rubenstein*Jillian Rudar*Amber Rudeen*Daniel Rudolf*John and Perrin Rutter*William and Cathe Sander*Bill Sanders*Christine Ebert Santos*Anson Sapp*Paul Saunders*Kristin Schaller

2013 don

ors continued

Paul and Claudia Schickler*Mike Schilling*Richard and Kathy SchlosbergPaul and Linda Schutt*Amanda Seidler*Michael and Ksusha ShambargerMark and Diane Sheridan*Matt and Angela Shetzer*Norman and Sandra Shutler*Lee Issac and Jennifer Simon*Dianne Simonds*Douglas D. and Nancy Sims*Craig Simson*Margo Smit*Catherine SmithLauren Smith*Enoch and Annie Smith*Nicholas Smith and Pat Campbell*Anne Soderman*

In Honor of Beryl HansenTuck and Susan Spaulding*Patricia Spitzmiller*Brent St. JohnTim and Jennifer Stachelski*Kiersten Stais*Michael and Delta Stein*Jerry and Denise SteinerDavid and Marnie Stelzer*Merle Stern

In Honor of Ryan OrbuchKarn Stiegelmeier*Wilson and Sherry Strong*Tara StutevilleMichael Tabb*Martha Tableman*Nate and Tisha TaylorEileen Terens*Joey Terriquez*Valerie isted*Donald and Kathryn omas*Rhonda ornton*Liz Trower*Sarah Vaine*Dennis and Trixie Vanderschaaff*Margaret Vanvooren and Vicki RaportJane WalkerWendy Ware*Alan WarholoskiJohn and Carre Warner*

Lawrence and Nancy Warren* In Honor of e Warren Grandchildren

John Watson*Emily Weber*William and Lisa WebsterMonica WeimerWilliam and Charlie Welsh*

In Honor of Cap and Suzy WitzlerBarry and Maureen Westerland*Don and Karen White*Karen WhittenAmy Wildgrube*Al and Dian WilsonCap and Suzy Witzler*Mike and Vicki Wood*Blair and Peggy Wood*Michelle Youngquist*Heather Zeger

CORPORATIONS1st Class Auto Glass3MAgilent TechnologiesAlcoa FoundationAlpine BankALTUS Environmental*American Electric PowerAmerican Transmission CompanyBreckenridge Grand Vacations*e Brewer Law Offices, P.C.*Bruns Graphics*Chevron CorporationCity MarketCMS Energye Coca-Cola CompanyColgate-Palmolive CompanyDos Locos Restaurant (Koll Inc.)*e Dow Chemical CompanyDuke Energy CorporationFedExFirstBank of Summit CountyGatherhouseGeorgia-PacificHewlett-Packard CompanyLockheed Martin CorporationOmni Real Estate*Peak-A-Boo Toys*PG&E CorporationPoplar Wellington, Inc.*

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ors continued

Serenity Spa*United Technologies CorporationVail Resorts EchoW.R. Grace & Co.Walmart

GOVERNMENTAntelope Valley Air Quality Management DistrictAurora WaterColorado Springs UtilitiesDenver WaterSanitation Districts of Los Angeles CountyTown of BreckenridgeTown of Frisco

FOUNDATIONSe Bobolink Foundation*Charles L. Read Foundatione Colorado Health FoundationCopper Environmental FoundationDaniels-Houlton Family FoundationEl Pomar FoundationF. Cubed FoundationGates Family Foundation*Greenlee Family Foundation*e Horoschak Family Fund*Lake Dillon Foundation for the Performing ArtsPPG Industries Foundatione Robert N. and Nancy A. Downey Foundation*Rossetter FoundationSnake River Foundation*e Steve and Gaye Wormington Family Funde Summit Foundation*Vineyards Foundation

NON-GOVERNMENTAL ORGANIZATIONSAntelope Valley College SB 70 CommitteeColorado River Water Conservation DistrictCommunity Shares of ColoradoFamily and Intercultural Resource CenterLake County School DistrictMojave Environmental Education Consortium Summit County Rotaract

IN-KINDBill and Rita BergmanWilliam and Jane BergmanKate Billups

John and Ann BoydDeanna CambellRachel CarvalhoNatalie ChudacoffMichael and Joyce ClaryGilbert and Karen CookSue DorfJordan EgbertGerald and Annette FrickeMike FultonWilliam and Marianna GoslauLee and Peg HenryWarren and Becky JohnsonDavid and Nini KochE. Ronald LaraKiyomi LeponDaniel McVeyJoel and Patti MeierGary and Kikken MillerRalph NagelTy and Missie PenningtonGreg and Brenda PoulterPeter and Donna RaichDouglas D. and Nancy SimsWilson and Sherry StrongCap and Suzy WitzlerLarry and Sue Wood

1st Class Auto GlassA Heart's DelightAlpenglow Gynecology Medical SpaAntler's Discount LiquorsArapahoe Basin Ski AreaArapahoe Cafe and PubAvalanche Physical eraphyBarnyard : Pet and Wild Bird SuppliesBed Bath and BeyondBig City BluesBlue River AnglersBlue River SportsBlue Sage SpaBoatyard Pizzeria & GrillBob Winsett PhotographyBreck KidzBreckenridge BreweryBreckenridge Dental GroupBreckenridge DistilleryBreckenridge Festival of FilmBreckenridge Outfitters

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ors continued

Buffalo Mountain Animal HospitalBuffalo Mountain GalleryCameez Frozen Yogurt and CoffeeCampExperienceCarversChristy SportsCity MarketClint's Bakery & Coffee HouseColorado AnglerColorado Railroad MuseumCopper Mountain ResortCountry Boy MineCreatures Great & SmallDillon Dam BreweryDillon MarinaDos Locos Restaurant (Koll Inc.)Downstairs at Eric'sEinsteins Bros BagelsEmpire BurgerFrisco Fun and FormalHand & GloveHearthstone RestaurantHigh Country Auto RepairHigh Country DesignsHigh Mountain PiesIsland GrillJ&M JewelryJimmy John's Gourmet SandwichesKaileen Higney PhotographyKeystone GolfKeystone Lodge and SpaKeystone Resort Nordic CenterKickapoo TavernKidrobotLake Dillon Foundation for the Performing ArtsLone Star SportsLost CajunLuigi's PastahouseMi Casa RestaurantMotherLoaded TavernMountain Flying FishMountain Top Children's MuseumNature's OwnNew Belgium Brewing CompanyNick-n-Willy's PizzaOld SaddleOllie's Pub & GrubPark & MainPeak-A-Boo Toys

Peppino's Pizza & SubsPrescription Alternatives,

A Compounding & Wellness PharmacyProstPug Ryan's Steakhouse & BreweryQuandary GrilleRaptor Construction, Inc.RelishRocky Mountain Coffee RoastersSerendipity of BreckenridgeShetzers PhotographyShirt Off My BackShoe InnSilverheels Bar and GrillSilverthorne Recreation CenterSKILOGIKSkyline eatersSmashburgerSpooners Frozen YogurtStarbucks CoffeeStork & Bear CompanySummit Cove Vacation RentalSummit Hot YogaSummit Huts AssociationTaddeo's Restaurante Flatbread Pizza Co.e Moose Jawe Mountain GoatTom Edward's PhotographyTuscato Ristorante ItalianoUdi's GranolaUpper Hand SalonVail Resorts EchoValley Girl BoutiqueWild Women WineryWilderness SportsWolf Rock Steak HouseZipline Brewing Company

We apologize for any errors or omissions. Please contact us if youwould like to be listed differently in the future.

2013 don

ors continued

volunteersVolunteers are an integral part of Keystone Science School. These individuals give their time and energy to helping us accomplish our mission of educating youth and adults to broaden perspectivesand foster appreciation for engaged citizenship. Thank you to all of our volunteers for the time, energy, and joy you bring to us every day!

Rita BergmanJane BergmanWilliam Bergman, Sr.Kate BillupsGabby BlanquizGlenice BowmanBreckenridge Brewery staffCheryl BrennerRobyn BrewerRob BuirgyJeff CampeauLinda ClemKaren CookSteve CorneillierDam Brewery StaffMary DawsonDos Locos StaffAmi DoyleNolan DuskinBrooke EvansJohn FitzgeraldJean FitzgeraldBob FollettGerry FrickeAnnette FrickeRachel GeigerDan GibbsGarrett GreelyKimberly GroffLee HenryPeg HenryPhil HoferKaty HirtSarah JohnsonJeremy KeenAmy KennedyJon KirkpatrickDavid KochGrant KochJenny KochNini KochDave KoopBrett Lockard

Zach MargolisJeb MarshIan McCluskieDebra MitchellMartha MooreMatt MulicaKen NeubeckerNew Belgium Brewing StaffJohn O’ConnorChristy OrdwayHeidi PaceTy PenningtonMissie PenningtonBrenda PoulterJeff Proctor Pug Ryan’s Brewing Company StaffQuandary Grille StaffJillian RudarJulia ScanlanSarah SchwartzMatt ShetzerDouglas D. SimsNancy SimsStacy SmithKarn StiegelmeierSherry StrongSteve SwansonRachel TabinDaniel TeodoruJoey TerriquezTravis ompsonWendy Van AntwerpCourtney Van DerLindenWest Brown Huntley Hunter Teodoru PC Cheryl WalshSue WilcoxMike WildeTroy WinelandSuzy WitzlerCap Witzler

2013 volunteers

1053 Soda Ridge Rd. Keystone, CO 80435 KeystoneScienceSchool.org

financialsAs you’ll see in the following financial reporting pages, Keystone Science School ended the year withwhat would normally appear to be a substantial surplus of $3.176m. As an organization, we are proudof this accomplishment and humbled by the generous support of our community. This substantial surplus should, however, be taken with a bit of caution as further analysis is required in order to understand what comprises this total number. In breaking this surplus down, the reality is that the surplus is actually closer to $145k.

Part of the $3.176m includes the $2.262m fundraised amount for our Campaign for KSS. For accountingpurposes, while this is included in the ‘surplus’ all of that money was used in the purchase of the KSSbusiness and property in 2013. Additionally, $768k of the $3.176m noted surplus is classified as Temporarily Restricted Net Assets, or TRNA. This funding is restricted for future use and rolls forwardto the next year based on donor restrictions. That being said, we ended the year with a surplus of $145k.

In keeping aligned with our conservative financial approach philosophies, we have created a reinvestmentplan to responsibly manage any year-end surpluses. We have determined five priority areas for reinvestment:

• Long-Term Reserves• Short-Term Emergency Reserves• Program Reinvestment• Staff Incentives and Retirement Payments• Capital Improvements to Existing Structures

Each year, the KSS Board of Directors and Finance Committee, in partnership with staff members, willdetermine the appropriate ratios for reinvestment in these areas. Our intent is to build reserves to address the areas identified, but also to ensure that the 100+ year old cabins and 30+ year old buildingsare maintained and sustain use for many years to come.

Independent Auditor’s Reporte Board of DirectorsKeystone Science SchoolKeystone, Colorado

Report on the Financial StatementsWe have audited the accompanying financial statements of Keystone Science School, which comprise the statement of financialposition as of December 31, 2013, and the related statements of activities and cash flows for the period from March 1, 2013(Date of Inception) to December 31, 2013, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accountingprinciples generally accepted in the United States of America; this includes the design, implementation, and maintenance of in-ternal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordancewith auditing standards generally accepted in the United States of America. ose standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.e procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentationof the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of KeystoneScience School as of December 31, 2013, and the changes in its net assets and its cash flows for the period from March 1, 2013(Date of Inception) to December 31, 2013 in accordance with accounting principles generally accepted in the United States of America.

Golden, ColoradoFebruary 20, 2014

Keystone Science SchoolStatement of Financial Position

December 31, 2013

AssetsCash and cash equivalents $ 521,495Accounts receivable, net 45,538Promises to give, net 41,322Prepaid expenses and other assets 21,537School store inventory 18,054Cash restricted for long-term purposes 400,000Property and equipment, net 2,388,201

Total assets $ 3,436,147

Liabilities and Net AssetsAccounts payable $ 34,212Accrued liabilities 51,464Deferred revenue 89,071Deferred compensation 85,000

Total liabilities 259,747

Net assetsUnrestricted $ 2,407,590Temporarily restricted 768,810

Total net assets 3,176,400Total liabilities and net assets $ 3,436,147

1053 Soda Ridge Rd. Keystone, CO 80435 KeystoneScienceSchool.org

Keystone Science SchoolStatement of Activities

Period From March 1, 2013 (Date of Inception) to December 31, 2013

TemporarilyUnrestricted Restricted Total

Revenue and SupportProgram revenue, net of scholarships of $47,667 $ 1,097,525 $ - $ 1,097,525Contributions 269,128 1,609,261 1,878,389Gross special event revenue 43,814 - 43,814Less cost of direct benefits to donors (15,257) - (15,257)

Net special event revenue 28,557 28,557

School store sales 19,525 - 19,525Less cost of goods sold (22,346) - (22,346)

Net school store sales (2,821) - (2,821)

Miscellaneous income 9,927 - 9,927Net assets released from program restrictions 840,451 (840,451) -

Total revenue and support 2,242,767 768,810 3,011,577

ExpensesProgram services 1,577,458 - 1,577,458Administrative 422,289 - 422,289Fundraising 65,863 - 65,863

Total expenses 2,065,610 - 2,065,610

Change in net assets before depreciation andCampaign for KSS 177,157 768,810 945,967Depreciation (31,981) - (31,981)

Change in net assets before Campaign for KSS 145,176 768,810 913,986Campaign for KSS contributions - 2,262,414 2,262,414Campaign for KSS net assets released

from restrictions 2,262,414 ( 2,262,414) -Change in Net Assets 2,407,590 768,810 3,176,400Net Assets, At Inception - - -Net Assets, End of Year $ 2,407,590 $ 768,810 $ 3,176,400

1053 Soda Ridge Rd. Keystone, CO 80435 KeystoneScienceSchool.org

Keystone Science SchoolStatement of Cash Flows

Period From March 1, 2013 (Date of Inception) to December 31, 2013

Cash Flows from Operating ActivitiesChange in net assets $ 3,176,400Adjustments to reconcile change in net assets to net cashfrom (used for) operating activities

Contributions restricted for the purchase of the School (2,262,414)Depreciation 31,981Contributions restricted for long-term purposes (400,000)

Changes in operating assets and liabilitiesAccounts receivable, net 29,422Promises to give, net (40,072)Prepaid expenses and other assets (21,537)School store inventory (2,509)Accounts payable 10,859Accrued liabilities 27,199Deferred revenue (65,145)Deferred compensation liability (6,000)

Net Cash from (used for) Operating Activities $ 478,184

Cash Flows from Investing ActivitiesPurchase of the School (2,167,203)Purchases of property and equipment (51,900)Additions to cash restricted for long-term purposes (400,000)

Net Cash from (used for) Investing Activities (2,619,103)

Cash Flows from Financing ActivitiesCollections of cash restricted for purchase of the School 2,262,414Collections of cash restricted for long-term purposes 400,000

Net Cash from (used for) Financing Activities 2,662,414

Net Change in Cash and Cash Equivalents 521,495Cash and Cash Equivalents, Beginning of Year -Cash and Cash Equivalents, End of Year $ 521,495

1053 Soda Ridge Rd. Keystone, CO 80435 KeystoneScienceSchool.org