Worcester Polytechnic Institute

“Prior to filing Form 990, management reviews the completed Federal Form 990 with tax advisors from a national accounting firm and the audit committee of the Board of Trustees. After approval by the audit committee, management provides the form to all trustees for review prior to filing with the IRS.”

“As part of the university's conflict of interest policy, all university trustees, officers, and key employees (as defined under IRS rules) are required to submit annually a conflict of interest disclosure statement, in which they affirm that they: (a) have received a copy of the university conflict of interest policy; (b) have read and understood the policy; (c) agree to comply with the policy and; (d) understand that the university, as a tax-exempt organization, must restrict its activities primarily to those for which its tax-exempt status was granted. Additionally, as part of the annual disclosure statement process, trustees, officers and key employees of the university are asked to outline in a separate letter any potential conflicts of interest and any significant financial interest with the university or any university-related entity. All annual disclosure statements are submitted to the university compliance officer, who reviews them, consolidates the comments and presents a report to the audit committee. Upon receipt of the compliance officer's report, the audit committee reviews the findings and takes any necessary and appropriate action. The audit committee then reports to the Board of Trustees on the findings and any actions taken by the committee. Any trustee with a conflict of interest recuses himself or herself from any Board or committee decisions related to that conflict.”

“The process for determining compensation for the university's president and other top management is modeled after the requirements in Federal Regulations 53.4958-6(a), rebuttable presumption that a transaction is not an excess benefit transaction, to establish the presumption of reasonable compensation. Compensation is reviewed and approved by the compensation committee of the Board of Trustees comprised of independent persons. By engaging an independent compensation consultant, the committee considers comparable market data from published surveys and Federal Form 990s of comparable organizations in evaluating the compensation for each individual. The committee conducts a review of this comparability data, sets compensation within a range of comparable organizations, and documents its deliberation and discussion in minutes that are retained with the other governance materials of the university.”

“The university maintains copies of its governing documents, conflict of interest policy, and financial statements on its website (www.wpi.edu).”

“The university has elected to file Form 990 on a consolidated basis, a basis consistent with its audited financial statements, and has included the activity of Washburn Park Inc., a separate 501(c)(3) organization which also filed Form 990 for the year ended June 30, 2015. For the fiscal year ended June 30, 2015, Washburn Park Inc had net assets of $34,396,450; revenue of $719,079; and expenses of $2,867,794. Form 990, Part III, Line 1 This educational process is true to the founders' directive to create, to discover, and to convey knowledge at the frontiers of academic inquiry for the betterment of society. Knowledge is created and discovered in the scholarly activities of faculty and students ranging across educational methodology, professional practice, and basic research. Knowledge is conveyed through scholarly publication and instruction.(http://www.wpi.edu/about/mission.html)”

“The university revised the prior year Refundable government loan funds liability to correct for errors in the financial reporting of its liability for the Perkins federal revolving loan program, -$2,149,623. Form 990, Part XI, Line 9 Net unrealized gain on beneficial interest in trusts $1,235,782 Change in value of split-interest agreements -$236,432 Net unrealized losses on interest rate agreements -$530,658 __________________________________________________________________ Total $468,692”