Neumann University

“During fiscal year 2023, neumann university discovered a fraudulent conveyance of funds by a third party which resulted in a net loss of approximately $2,024,000. The university took immediate action to reclaim the funds once it became aware of the loss. Through june 30, 2023, the university has recovered some of the loss through various legal measures and from insurance proceeds. The university will continue to pursue restitution for the remaining funds. The university has updated its internal procedures and instituted additional security measures to safeguard against future losses.”

“The members of the university consist of the congregational minister and the council of the religious congregation of the sisters of saint francis of philadelphia.”

“The sisters of saint francis reserve the power to choose the president of the university.”

“The sisters of saint francis have certain reserve power regarding decisions of the governing body.”

“The form 990 is shared with the audit committee of the board of trustees. After the form 990 is reviewed by the audit committee, a final copy is sent to each member of the board of trustees before the form 990 is filed. The annual federal non-profit tax return form, irs form 990, applicable to neumann university, is completed and submitted to the irs by the neumann university administration through the office of the vice president for finance and administration.”

“All officers, trustees, and key employees review and sign the conflict of interest policy annually. The university president and general counsel review the signed statements and handle any conflicts of interest. Individuals with a conflict of interest must abstain from voting on the matter.”

“The president has a contract with a term of three years. The president's compensation is reviewed by a sub-committee of the executive committee of the board of trustees. The process (every three years) includes a review of peer compensation (college and university professional association (cupa) - human resources survey), the university's mission and vision, economic climate for the region, and the achievement of goals as contained in the strategic plan. When this process is completed, the president's compensation is decided and included in the annual budget, which is approved by the board of trustees. Increases in compensation are consistent for all key employees and officers of neumann university and included in the annual budget which is approved by the board of trustees. The percentage increase for university employees is a combination of economic conditions for the region and the cupa survey. This review is documented contemporaneously.”

“Access to the university's governing documents, conflict of interest policy, and financial statements will not be unreasonably withheld.”

“Contracted services: program service expenses 8,423,287. Management and general expenses 855,940. Fundraising expenses 310,642. Total expenses 9,589,869. Maintenance contracts: program service expenses 163,279. Management and general expenses 407,828. Fundraising expenses 0. Total expenses 571,107. A/r collection expense: program service expenses 0. Management and general expenses 737,917. Fundraising expenses 0. Total expenses 737,917. Food services: program service expenses 2,217,137. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,217,137.”

“Extraordinary loss -2,024,260.”