The Lenfest Inst for Journalism Spe Asset Fund of the Phl Foundation

“The organization's public accounting firm prepares the form 990 based on the information provided by members of the finance team. Once the return is prepared, it is reviewed by the finance team along with executive management before being provided to the audit committee and governing body for their review.”

“Board members, standing committee members, and staff shall advise the president of the foundation of affiliation with any grantee, potential grantee or vendor in response to an annual questionnaire from the foundation and at any other time when such person becomes aware of an affiliation which has not previously been disclosed. No member of the board or any standing committee who is affiliated with any organization being considered for a grant from the foundation shall participate in the consideration of such grant, or shall vote on such grant award. No member of the board or any standing committee who is affiliated with any vender of goods or services to the foundation shall participate in the consideration or administration of any contract with such vendor. No member of the staff of the foundation shall, without the permission of the president, be affiliated with any grantee, prospective grantee or vendor to the foundation.”

“While tpf special assets fund has no employees, the president is compensated by the philadelphia foundation, a related organization. To determine the president's compensation , the philadelphia foundation compensation committee compares the salary to peer organizations, analyzes various local and national salary surveys, and reviews the president's accomplishment of goals and objectives over the prior year. The president reviews local and national salary surveys and determines the salary of officers and key employees within the budget approved by the board of managers.”

“The organization makes its governing documents and conflict of interest policy available upon request. It makes its audited financial statements available through the organization's annual report and also on its website.”

“The board members of tpf special assets fund are also board members of a related organization, the philadelphia foundation. William bullitt is also a board member of a related organization, queen's jubilee education foundation.”

“Management and general expenses as a percentage of total expenses are unusually high due to significant amounts of unrelated business income tax generated by s corporation stock held by tpf special assets fund. Without the unrelated business income tax, management and general expenses would be approximately 8% of total expenses.”

“Income from k-1 not on audited financial statements 1,011,821.”

“The process for the review of the financial statements by the audit committee has not changed from the prior year.”

“On january 1, 2013, the foundation elected to change its method of valuing its investment in private company stock to the cost method, whereas in prior years the investment in private company stock was valued at fair value. The new method of valuing the investment in private company stock was adopted because the foundation does not have timely access to readily determinable fair value of this investment and management believes the cost method provides a more meaningful presentation of its financial position. Comparative financial statements of 2012 have been adjusted to apply the new method retrospectively. This resulted in a decrease in value of investment of $1,938,000.”