Messiah University

“Family relationship with other officer, trustee, or key employee: President Kim Phipps - married to employee; Barry Goodling - married to employee Compensation amounts paid to employees are shown on Schedule L. Amounts were paid at fair market value and are consistent with levels of compensation that would have been paid to other parties had they rendered these services to the College, regardless of relation. Business relationship with other officer, trustee, key employee and or with Messiah College as disclosed on Schedule L: Larry Bashore, Trustee, is the president of the Edwin L Heim Company which provides electrical and mechanical construction and maintenance services to the College. Other Family and/or Business Relationships not requiring disclosure on Schedule L: (All transactions are required to enter a competitive bidding process and were conducted at fair market value in accordance with what would have been paid to a similar vendor.) Todd F. Lehman - related to Trustee; Eunice F. Steinbrecher - related to Trustee. Linda Eremita, Trustee, employed by M&T Securities, which represents the College's primary banking, line of credit, purchase card, and merchant credit card relationship. Linda is not a controlling officer of M&T Bank not M&T Securities, however, she is Managing Director of Education Investment Banking for the AICUP Financing Program, and the college has used M&T Securities to market its variable rate bonds in the past, most recently in 2014. - Eric Zee, Trustee, President & CEO of organization providing benefit broker services to the College. Linden K Hustedt, Chair, Board of Trustees, employer provides benefit broker services to the College. A stockholder of Bala Financial Group, Bala receives a referral fee from the College's current benefits broker, the Radnor Group. As the payments do not come directly from the College, the benefit to Linden could not be determined at this time. Richard E Jordan II, Trustee, president of LB Smith Ford Lincoln-Mercury Inc, occasionally sells or leases vehicles to the college. George A Parmer, Trustee, owner Fine Line Homes, which in the past has provided construction services to the College. Fine Line Homes received no payments from the College this fiscal year. Minority ownership in management company of an investment held by Messiah College. Director of company held by Messiah College as an investment. J Gary Langmuir, Trustee, Owner-CEO-President of Wohlsen Construction Company, which in the past provided services to the College but has not received any payment from the College this fiscal year. Scott Heintzelman, Trustee, employer sells food products to the college. James A Martin, Trustee, employer sells food products to the college.”

“Form 990 is prepared by Messiah College and is reviewed by College management and independent tax accountants for completeness and accuracy. Prior to filing, Form 990 is reviewed by the Audit Committee and made available to all members of the Board of Trustees via the College's portal for Board materials.”

“The College monitors and enforces compliance with its conflict of interest policy through an annual disclosure process. Each trustee and officer of Messiah College completes a disclosure statement which certifies that they have reviewed the College's Conflict of Interest Policy and discloses personal, familial, and/or business relationships that may in fact or appearance give rise to a conflict of interest. If an actual, potential or apparent conflict arises between the annual filings of the disclosure statements, the trustee or officer is required to promptly and fully disclose the potential conflict to the Chairperson of the Board. Each actual or potential conflict is addressed on a case-by-case basis by the Chairperson in consultation with the Audit Committee. The Chairperson and Audit Committee shall determine if the payments to be made are fair and reasonable, or if otherwise required by the Bylaws or deemed advisable, refer the transaction to a vote of the Board of Trustees. A trustee or officer who is deemed to have a conflict of interest is disqualified from participating in the portion of any meeting of the Board of Trustees which authorizes the contract or other transaction.”

“The Executive Committee of the Board of Trustees reviews the President's performance and recommends a compensation package to the Board of Trustees for approval. The President reviews performance and approves compensation packages for the Provost and Vice Presidents. To assess reasonableness of compensation, the College participates in executive and leadership compensation surveys as well as other general compensation surveys to obtain access to comparative data which is used to determine a comparative median and compensation range. Compensation decisions are reflected in the President's employment agreement and in letters of appointment for other Officers and Key Employees.”

“Messiah College makes its Bylaws, Conflict of Interest Policy and Financial Statements available to the public via its website - www.messiah.edu. Additional governing documents are available upon request.”

“Other changes in net assets of $(370,975) includes the change in value of split interest agreements such as gift annuities $(617,233) and trusts $246,288.”