Keystone College

“Dr. Betty j. Turock and dr. David l. Turock, both trustees, are related to each other as mother and son. In order to determine whether or not there are any business or family relationships between officers, directors, trustees or key employees, interviews are performed by human resources, followed by the responsible managers, vice president, and possibly the president and/or a search committee comprised of several employees and board members. The director of human resources conducts the conflict of interest question and business and family relationship questions, and prepares a log of the responses. This information is forwarded to the president.”

“Copies of the final form 990 were provided to members of the finance and budget committee and all officers of our board of trustees prior to its filing. Joseph j. Quinn, cpa and george w. Ginader, cpa, both members of the finance and budget committee, reviewed the form with kevin m. Wilson, vice president of finance and adminstration/treasurer before mr. Wilson approved its filing.”

“The college requires all covered parties such as trustees, key employees and officers to complete conflict questionnaires on an annual basis. The vp of finance and administration collects and reviews these questionnaires and reports any conflicts to the president and chairman of the board. Board members abstain from voting when conflicts arise. In addition, the vice president of finance & administration reviews the approved vendor list on an annual basis noting any potential conflicts which may have been improperly disclosed.”

“Compensation for the chief executive officer and the president was determined by the chairman of the board of trustees, an independent trustee. The chairman consulted with other independent members of the board of trustees, at his discretion, and reviewed executive compensation data provided by the chief financial officer, the vice president of finance and administration/treasurer. This information included, but was not limited to: industry survey data from the chronicle of higher education, nacubo, yaffe and company, and aicup. Compensation for other key employees was determined by the president, who consulted with members of the board of trustees, at his discretion. He also reviewed information from industry sources, such as those listed above. Salary decisions are documented in the board committee minutes”

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

“Contracted services: program service expenses 1,645,568. Management and general expenses 226,975. Fundraising expenses 18,915. Total expenses 1,891,458. Food service: program service expenses 1,636,176. Management and general expenses 225,679. Fundraising expenses 18,807. Total expenses 1,880,662. Consulting: program service expenses 353,643. Management and general expenses 48,778. Fundraising expenses 4,065. Total expenses 406,486.”

“Unrealized gain on interest rate swap 144,371. Change in value of beneficial interest in perpetual trusts 163,325. Change in value of annuity obligations -21,223.”

“This process has not changed from the prior year.”