St. Francis College

“Form 990 Review process THE FORM 990 IS PREPARED BY A NATIONALLY RECOGNIZED ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S finance department. ONCE THE PREPARATION AND REVIEW PROCESS IS COMPLETE, THE FULL 990 IS PROVIDED TO THE AUDIT COMMITTEE FOR REVIEW AND APPROVAL. UPON APPROVAL, A COPY OF THE FULL 990 IS PROVIDED TO ALL BOARD MEMBERS PRIOR TO FILING.”

“Conflict of interest policy enforcement and monitoring the conflict of interest policy is distributed to all faculty, staff, and administration every year. Certain employees are required to sign the questionnaire and disclose any conflicts. All members of the board of trustees are required to review the policy and sign and complete a questionnaire on an annual basis, disclosing potential conflicts. The executive committee of the board monitors and enforces compliance. In the event a trustee, officer or key employee plans to initiate or participate in a transaction, arrangement or activity with or on behalf of the college in which he has a material financial interest of any nature, such person must disclose such interest to the audit committee of the college board of trustees (the "committee") before commencing such activity. After disclosure of all relevant information, the disclosing person may make a presentation at the committee meeting. After such presentation, the committee shall, in absence of the disclosing person, discuss and vote on, the transaction, arrangement or activity and determine whether a conflict of interest exists. If the disclosing person is a member of the committee, such person shall abstain from deliberations and voting, and the disinterested members of the committee shall make the determination in absence of such person. The disclosing person shall not in any way improperly influence the deliberation or voting on the transaction, arrangement or activity giving rise to a potential conflict. The committee will review all relevant information. The review process will be designed to protect confidential information to the degree permitted by law. The committee will make a determination as to whether a situation is permissible or a conflict of interest exists, which shall be final, subject to ratification by the entire board at its next meeting. If the committee has reasonable cause to believe that a trustee, officer or key employee has knowingly failed to disclose an actual or possible conflict of interest, it shall inform such person of the basis for such belief and afford such person an opportunity to explain the alleged failure to disclose. If, after receiving the response of the individual and making such further investigation as may be warranted in the circumstances, the committee determines that the trustee, officer or key employee has in fact knowingly failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary action which may include a recommendation to the entire board for the removal of the trustee or officer for the discharge of the key employee in accordance with the bylaws and policies and procedures of the college and the laws of the state of new york.”

“Process for determining compensation the college engaged an independent consultant in june 2020 to review and compare the compensation of top management to similar institutions in a compensation study. A compensation survey was performed regarding compensation of other officers. Compensation decisions and reports are contemporaneously documented in the board minutes when the decisions are made.”

“Public disclosure of documents the audited financial statements and conflict of interest policy are available on the college's website at www.sfc.edu. Governing documents are made available upon request at management's discretion.”

“THE college In December 2019, an outbreak of a novel strain of Coronavirus ("COVID-19") EMERGED GLOBALLY, AND IN MARCH 2020 THE WORLD HEALTH Organization declared the spread of COVID-19 a worldwide pandemic. As a response to the COVID-19 pandemic the U.S. federal government passed THE CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT ("CARES ACT"). DURING MAY 2020, the College received a $5,516,670 Payroll Protection Program loan ("PPP") and a $1,962,415 higher education emergency relief fund ("HEERF") GRANT AS A RESULT OF THE CARES ACT. A PORTION OF THE HEERF GRANT totaling $1,532,540 was disbursed to qualifying students for emergency aid with the remaining funds utilized to support institutional expenses related to COVID-19. The College recognized the HEERF award as gifts and grants revenue on the accompanying statement of activities. The College accounted for the PPP loan as a conditional contribution that will be recognized as grant revenue when the conditions for use of the funds have been met and it is acknowledged by the lender that the loan will be forgiven. Therefore, this funding was recorded as deferred revenue in the accompanying statement of financial position at June 30, 2020. The College also accrued 0.08% interest for each month PPP loan remained outstanding totaling $10,277 for year end June 30, 2020. The PPP loan and accrued interest are forgivable as long as the College uses the loan proceeds for eligible purposes, primarily for payroll and benefits. The College will apply for loan forgiveness and expects to apply for forgiveness during the second quarter of the fiscal year ended June 30, 2021. The College will submit the following items to lender to apply for forgiveness: -LOAN FORGIVENESS APPLICATION, -PAYROLL EXPENDITURES FOR THE EIGHT TO 24 WEEK PERIOD COVERED UNDER PPP, -SUPPORT DOCUMENTATION NON-PAYROLL EXPENDITURES AS APPLICABLE. Under the CARES act, The PPP loan program has been administered by the U.S. Small Business Administration (SBA) at the Direction of the U.S. Treasury Department. Lenders of record have been charged by the SBA to serve as Agents of the PPP loan program in the application collection, underwriting,origination, funding, and loan forgiveness processing. pERIODICALLY, LENDERS OF RECORD HAVE RECEIVED "INTERIM FINAL RULES" ISSUED by the SBA pertaining to such matters as originations, data validation, data submission, reporting, and forgiveness processing. These Interim Final Rules continue to remain subject to further update by the SBA. At present, the Lender of Record has elected to await further Interim Final Rules by the SBA in order to process the existing PPP loan for the College. The lender of record and the College will be subject to an audited review of their forgiveness application by the SBA as a result of Interim Final Rules dated April 29, 2020. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If the SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. Form 990, Part VI, Section A, Line 2 RELATIONSHIP DISCLOSURE WILLIAM F. DAWSON AND MARY BETH DAWSON HAVE A FAMILY RELATIONSHIP.”