Merrimack College

“Form 990, Part III, LINE 1 (CONTD.) A. PREPARE STUDENTS TO ADAPT CREATIVELY TO TOMORROW'S REALITIES THROUGH EXCELLENCE IN THE LIBERAL ARTS, SCIENCES, AND THE PROFESSIONS. B. BUILD A COMMUNITY OF SCHOLARS WELCOMING AND RESPECTING A DIVERSITY OF BACKGROUNDS, EXPERIENCES, BELIEFS, AND PERSPECTIVES. C. CULTIVATE THE INTELLECTUAL, MORAL, SPIRITUAL, PHYSICAL, AND PERSONAL AWARENESS NEEDED TO MAKE WISE CHOICES FOR LIFE, CAREER, AND SERVICE. D. ENCOURAGE AND SUPPORT SCHOLARLY WORK THAT CONTRIBUTES TO THE WISDOM ON WHICH SOCIETY BASES ITS DECISIONS. E. ENGAGE OTHER EDUCATIONAL INSTITUTIONS, INDUSTRIES, AND AGENCIES OF SOCIAL CHANGE IN COLLABORATIVE EFFORTS FOSTERING A JUST, PEACEFUL, AND SUSTAINABLE WORLD. TRUSTEE RELATIONSHIPS Form 990, Part VI, Line 2 Alfred J. Arcidi and Philip M. Arcidi have a family relationship.”

“Form 990, Part VI, Line 3 Merrimack College has a management agreement with R Gallant Associates LLC under which R Gallant Associates LLC is responsible for managing the operation of ice rink premises on the college campus. In calendar year 2015, no compensation was provided by the management company to any of the college's current or former officers, directors, trustees, key employees or highest compensated employees listed in part VII, Section A. The agreement was made at arm's length.”

“Form 990, Part VI, Line 11b Information for Form 990 is gathered and compiled by the department of fiscal affairs and used to populate the return in conjunction with tax advisors from a national accounting firm. The resulting draft Form 990 is forwarded to the President, Senior VP for Finance and CFO, in house legal counsel, and the audit and risk management committee of the Board of Trustees for their review before filing. A copy of the Form 990 is provided to every voting board member prior to filing with the IRS.”

“Form 990, Part VI, Line 12c the college requires the President, SENIOR VP for Finance and CFO, Senior VP of Administration and COO, and board members to complete a conflict of interest questionnaire. These documents are reviewed by the Department of Fiscal Affairs and any violations are addressed as necessary. All trustees shall disclose to the board any possible conflict of interest at the earliest practicable time. No trustee shall vote on any matter under consideration at a board or committee meeting in which such trustee has a conflict of interest. The minutes of such meeting shall reflect that a disclosure was made and that the trustee having a conflict of interest abstained from voting. Any trustee who is uncertain whether they have a conflict of interest in any matter may request the board or committee to determine whether a conflict of interest exists. The board or committee shall resolve the question by majority vote. Violation of this policy may result in removal from office.”

“Form 990, Part VI, Line 15a According to Article VII, Section 7 of the Merrimack College By-Laws, the compensation committee shall review the compensation and benefits of the officers of the corporation who are employees of the College and make recommendations for action by the board. The board of trustees' compensation committee uses a published salary survey taken from regional academic institutions comparable to Merrimack to benchmark the President's salary utilizing CUPA and other industry standards data. In addition to receiving salary data, the compensation committee conducts a presidential evaluation process in which all members of the board of trustees are asked to input their opinions regarding the President's achievement towards goals and expectations established annually by the board. Once consensus is reached regarding performance, a similar discussion is held concerning compensation relative to achievements and established objectives. In the absence of the president, The committee presents its recommendations to the board of trustees in executive session for review and approval. The board of trustees chair and the chair of the compensation committee then meet with the President to discuss the trustees review. Compensation is also discussed for the upcoming year and documented.”

“Form 990, Part VI, Line 15b The compensation committee is also responsible for working with the president in the evaluation and compensation for officers of Merrimack College. The president works with senior management to establish goals and objectives and to conduct an annual performance appraisal based on the predetermined goals. The board of trustees compensation committee uses a published salary survey from regional academic institutions comparable to Merrimack to benchmark the officers' salary utilizing CUPA and other industry standards data. The President discusses the evaluation and compensation of officers with the compensation committee. Compensation is also discussed for the coming year and documented with the committee in regards to senior management.”

“Form 990, Part VI, Line 19 The College's governing documents, conflict of interest policy and financial statements are available upon request. The College's Form 990 is available at www.Guidestar.org and the Massachusetts Attorney General's website.”

“Form 990, Part XI, Line 9 Net Change in Split Interest Value ($17,689) Derecognition of Pledge ($1,621,186) _________ Total ($1,638,875) =========”