Sacred Heart University Incorporated

“The following is the succession of the reviews that occur prior to filing form 990. Revisions to the return may be made at any point prior to final filing of the return: the return is prepared by an outside preparer with the assistance of the accounting staff. The return is then independently reviewed by the controller, the vice president for finance, and the senior vice president for finance and administration. Copies of the return are provided to the president, each member of the audit committee of the board of trustees and the corporate secretary for their review and comment prior to filing.”

“Every year, the conflict of interest policy is reviewed. All key employees, trustees and officers of the university are required to review and complete the forms as appropriate, sign, and submit the forms to their manager or board secretary for review and signature.”

“Compensation for the university's president/ceo is determined through an extensive review of the job responsibilities and expectations outlined by the board. The compensation committee then performs a review of external market and industry survey and study data. Consideration of all additional responsibilities are detailed out in specific language in an employment contract approved by our legal counsel. Final salary ranges are then determined by the compensation committee. Compensation for other key employees is determined by the evaluation of the job description against external market data available as well as the review of our internal employee data. Consideration of additional responsibilities and other factors may also contribute in determining compensation. Compensation for the university's other officers and key employees is originally determined based on external market and industry survey as well as the review of our internal employee data. Any additional responsibilities are also considered. The data is reviewed by a committee authorized by the board of trustees. Decisions and authorizations are documented and placed on file with the vice president of human resources. Final annual salary recommendations from the president are submitted for review and approved by the human resources compensation committee.”

“Guidestar.org posts the university's 990 filing annually. This makes the 990 widely available through the internet. Copies are also made available for public inspection upon request. Governing documents and the annual financial report are made available to board members and in compliance with debt covenants. University employee and faculty handbooks are posted on the university website. In addition, all staff and faculty receive a hard copy. The conflict of interest policy is annually distributed only to key employees, directors, and officers of the university to sign and return.”

“Misc. -2. Provision for land held for sale -700,000.”

“The financial statements and tax return are independently reviewed by the controller, the vice president for finance, and the senior vice president for finance and administration. Copies are then provided to the president and members of the audit committee of the board of trustees and the corporate secretary for their review and comment prior to completion and filing.”