Seton Hall University

“Part VI, Section A, Line 7A: The Board of Regents is responsible for the entire management of the affairs and concerns of the University. The Board of Regents is vested with the responsibility, power, and authority to govern the University and shall exercise the corporate powers of the University under Law. Board of Regent Emeriti do not have voting privileges. Part VI, Section A, line 7b: The Board of Trustees stand in the stead of the original incorporators of Seton Hall College and have the rights and powers reserved to it by the University's By-Laws. Those powers include the right to amend the University's organizing documents, to authorize the sale of any University property and, most importantly, to elect the Board of Regents. Part VI, Section B, line 11: The Board of Regents adopted a written policy charging the Audit Committee with the responsibility to conduct, on an annual basis, an appropriate review of the University's completed Form 990 and Form 990-T prior to filing with Internal Revenue Service. The Audit Committee is also charged with making an appropriate report and recommendation to the Board of Regents on their review. Following review by the Audit Committee, Forms 990 and 990-T are submitted to the entire Board of Regents for its review and approval for filing with the Internal Revenue Service. The Board of Regents shall contemporaneously document the meeting at which the Forms 990 and 990-T are reviewed and approved for filing. Part VI, Section B, Line 12c: The University's conflict of interest policy is posted on the University's web site. All new employees are made aware of the policy at the time of hire. For senior management, the University requires an annual disclosure of significant financial interests in, or employment or consulting relationships with, entities doing business with the University. These annual disclosures cover both senior management and their immediate family members. When such relationships exist, measures are taken to address the actual or perceived conflict to protect the best interests of the University. The policy requires, among other things, that no member of the Board of Regents or its Committees can participate in any decision in which he or she (or an immediate family member) has a material financial interest. Each Regent is required to certify compliance with the conflict of interest policy on an annual basis and indicate whether the University does business with an entity in which a Regent has a material financial interest. When such relationships exist, measures are taken to mitigate any actual or perceived conflict, including requiring that such transactions be conducted at arm's length, for good and sufficient consideration, based on terms that are fair and reasonable to and for the benefit of the University, and in accordance with relevant conflict of interest laws. The University is unaware of any such associations considered to be significant. Part VI, Section B, Line 15: Seton Hall University can ensure and demonstrate that our compensation actions do not inure to the benefit of a private individual. We can demonstrate that the compensation of all disqualified persons, such as officers, directors, and key employees, is considered reasonable and would ordinarily be paid for like services by like enterprises under like circumstances. The reasonableness of our compensation takes into account all benefits. Any compensation transactions for these individuals are approved by an authorized body of individuals who have no conflict of interest. Utilizing a compensation consultant, appropriate compensation data is relied upon for comparability and proof of fair market value, before making a decision. Compensation decisions and reports are contemporaneously documented in the minutes of the meeting of the Committee when the decisions are made. Part VI, Section C, Line 19: The University's By-Laws and its conflict of interest policy are posted on the University's website.”

“Seton Hall University is the nation's oldest diocesan Catholic University. In a diverse and collaborative environment, it focuses on academic, ethical, and spiritual development. Seton Hall students are prepared to be leaders in their professional and community lives in a global society and are challenged by outstanding faculty, an evolving technologically advanced setting, and values-centered curricula. Seton Hall University's 58-acre park-like main campus is located in South Orange, New Jersey, only 14 miles west of New York City. The University is home to ten nationally recognized and accredited schools, including its Nationally-Ranked Law School located in Newark, New Jersey. Within these schools the professors of Seton Hall educate, shape, and develop approximately 6,100 undergraduate and 3,700 graduate students, who are enrolled in more than 90 rigorous majors. This has led to Seton Hall being nationally recognized for academic excellence by The Princeton Review, U.S. News & World Report, and Bloomberg Businessweek. Seton Hall remains a pioneer in Catholic education. In FY2016, Seton Hall University and Hackensack University Health Network (HUHN), formed the Seton Hall-Hackensack School of Medicine (SOM), a nonprofit New Jersey corporation. The University and HUHN each control fifty percent of the SOM, with each institution appointing fifty percent of the SOM's Board of Governors.”

“As of June 30, 2016 and 2015, unamortized bond and letter of credit issuance costs total $1,109,000 and $1,206,000 respectively. The University early adopted Accounting Standards Update ("ASU") 2015-03, simplifying the presentation of debt issuance costs. The ASU requires that deferred bond and letter of credit issuance costs be presented net of related debt on the statements of financial position. This guidance was retroactively applied to the prior year.”

“Change in value of interest rate swap agreements of $1,626,000, plus the provision for uncollectible contributions receivable of $827,000, plus limited partnership gain of $25,000, less reversal of a FY15 accrual in FY16 of $121,000 Representing assistance given to a domestic government. This was included in Form 990-2014 in Part IX, line 1, and in Schedule I, Part II, line 2 - Essex County Park.”