National University

“The draft 990 is reviewed internally by the controller, avc of finance, and vc of finance to ensure it is being reported correctly. Schedules and amounts are reviewed and vetted against source documents and the audited financial statements. Once this review is completed, the draft 990 is sent to the board of trustees' audit committee for the final review. Each audit committee member reviews and provides their feedback to the nu tax preparation team; once the audit committee has finished their review, the draft is finalized after changes, if any, are updated through this final review, made available to all board members, and submitted for signing and filing by the vc of finance.”

“The board of trustees has periodically reviewed and approved (by a majority of disinterested trustees) the business transactions with trustees or their affiliated professional service firms. Such reviews include consideration of data on comparable service providers collected by university council. The interested trustees were excused from board sessions during which those business transactions were discussed and did not participate in voting on such transactions. The most recent such review occurred during fiscal year 2013-2014. The conflict of interest policy was reviewed and updated by the board in 2010. Questionnaires have been distributed. Compliance with the conflict of interest policy is monitored by university council and was reviewed by the board at the february, 2014 meeting”

“Compensation of the president of the university is reviewed by the board at the time of hiring and as necessary thereafter. Compensation for other officers and key employees is reviewed by the board (or its committee). In both cases, compensation is determined with regard to compensation paid to senior executives of comparable non-profit and proprietary institutions in education and other fields. The process is documented and was last completed june 20, 2015.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Grants description- the university receives seog, pell, smart, and acg grants from the u.s. Government. These grants are disbursed to a large number of students. Detailed lists are maintained by the university.”

“Dr. Lee compensation- as chancellor of the national university system ("nus") pursuant to the affiliation agreement, dr. Lee guided the strategic direction of the nu affiliates. He spearheaded the creation and growth of the nus since its inception in 2001 through his retirement in september 2013. During the fiscal year 2008-2009, he led the negotiations that culminated in john f. Kennedy university becoming an affiliate of the nus. Thanks to that affiliation, the nus now includes an institution that is accredited to award doctoral degrees. During the fiscal year 2012-2013, he led the negotiations that culminated in city university of seattle becoming an affiliate of nus. Thanks to that affiliation, nus added 30 additional campuses and over 7,000 students. See statement on schedule o that references schedule r, for a description of the nus. The chancellor's compensation is paid by system management group ("smg") and is allocated among other nus affiliates. See form 990 filed by smg. None of dr. Lee's compensation is allocated to any other organization outside the nus.”

“Compensation: related party- all compensation for certain officers, directors, trustees, key employees, and highest compensated employees is allocated by smg to nus affiliates pursuant to the affiliation agreement. For a complete listing of related party allocation of compensation and benefits please refer to smg form 990, schedule o disclosure.”

“K-1 pass-through 1,337,271.”

“Organization's mission- the organization pursues its mission with due regard to its levels of accreditation. The board of trustees updated its mission at a meeting in 2010.”