Elizabethtown College

“Board of Trustees Members, Nevin Cooley AND S. Dale High HAVE A BUSINESS RELATIONSHIP. Board Members, J. Alexander Risser and Thomas Risser, have a family relationship.”

“The Form 990 was prepared by a nationally renowned accounting firm in conjunction with the organization's financial department. A draft of the Form 990 was reviewed by Grant Thornton with the Audit Committee of the Board of Trustees. A copy of the Form 990 was posted electronically to a Board of Trustee website allowing for review. Following Board Review and subsequent updates to the return, if any, the Form 990 was electronically filed with the Internal Revenue Service.”

“Each officer, director, trustee and key employee of the College is required to annually disclose any conflicts of interest that arise by virtue of their employment, board service, or position with the College. The College monitors compliance with its conflict of interest policy through an annual questionnaire/disclosure statement that is distributed to the trustees. Potential conflicts are reviewed on a timely basis.”

“The College undertakes a thorough process to ensure that the executive compensation it pays to its top management official and all of its officers and key employees of organization is reasonable given the market in which the College operates. The Board of Trustees has established an Executive Committee of independent persons that have no personal interest in the proposed compensation agreement. The Executive Committee of the Board of Trustees annually reviews the performance of the President against agreed upon objectives for the year. All other officers are reviewed annually.”

“The College's audited financial statements and completed Form 990 are available on the College's website. The Form 990 is likewise published on the internet at www.guidestar.org. The organization's conflict of interest policy is not ordinarily made available to the public, but, if requested, will be provided at management's discretion.”

“Part I - Description of Purpose The proceeds of the Series 2006 Revenue bond were used to refinance the 2002 Series I refinancing bond and partially refinance the 2002 Series II bond. The 2006 Revenue bond also included $7,155,000 in new debt. This portion of the proceeds was used to assist in the construction of the new science, math and engineering center. They were refunded by the Series 2009 Revenue bonds in 2009. The proceeds of the Series of 2009 Revenue bonds were used for two purposes. $14,555,000 was used to refund the 2006 Variable Rate bonds. The remaining $2,048,255 of these funds has been used to fund energy projects on campus. There is an additional credit of $61,520 available under these bonds for campus energy projects. Part II - Line 5 Issuance Costs For the 2006 Revenue Bond, the College paid $350,293 in credit enhancement fees. These amounts have been added to the $423,974 of issuance costs reported on Line 5. Part II - Line 8 - Year of Substantial Completion For the 2009 Series A Revenue Bond, the College anticipates the financed project to be completed in 2013. For the 2009 Series B Revenue Bond, the College used these proceeds to refinance previously issued bonds, and thus, the year of completion is 2009.”

“Gain on Interest Rate Swap: $86,837 Pension Related charges other than net periodic pension cost: (417,235) ------------------------------------------- total line 9 adjustment: ($330,398)”