Mount Vernon Nazarene University

“From the Organization's Bylaws: Section 8: Duties of the Executive Committee of the Board of Trustees. In the interim of annual or special meetings of the Board of Trustees, the management of the affairs of the Corporation shall be vested in the Executive Committee. a. The Executive Committee shall meet as often as is necessary and shall be governed by such rules as it may adopt, provided such rules and regulations are in harmony with the bylaws of the Corporation. b. The Executive Committee shall act on whatever matters of corporation business as shall be referred and assigned to it by the Board of Trustees. c. The Executive Committee may by resolution authorize the sale, conveyance, or mortgaging of any real property held by the Corporation, other than the main campus. d. The Executive Committee shall approve the guidelines under which the Senior Administrators of the University are selected. The President shall confer with the Executive Committee prior to selection, reassignment, or termination of a senior administrator. e. The Executive Committee shall keep a record of its proceedings and copies of these minutes shall be sent to each member of the Executive Committee within five days after the executive meeting. Minutes of action must also be received by the members of the Board of Trustees at its next meeting. f. The Executive Committee may authorize and approve resolutions necessary to open and close bank, stock, bonds and other investment accounts and designate signatory authority thereon.”

“Robert J. Mahaffey and Robert S. Mahaffey - Family relationship”

“The return is reviewed by University management and a knowledgeable third party before filing.”

“From the Organization's Bylaws: A. Disclosure and Review - Each year each Trustee is required to submit a signed Conflict of Interest Disclosure Form. Additionally, immediately upon recognizing that there is a potential conflict of interest that has not been previously disclosed, the Trustee is required to file an amended disclosure form. The President's Office will compile the forms and send them to the Chair of the Board of Trustees for review. The Executive Committee will review the forms annually and determine if there is a conflict of interest. If so, the President of the University and Chair of the Board will be informed regarding which Trustee(s) and the nature of the conflict and how it will be addressed. The Chair of the Board will inform the Trustee with the conflict regarding the decision. B. Consideration of Matters involving Conflict of Interest - If a circumstance should arise where it may be in the best interest of the University to engage in a transaction despite the conflict of interest, after disclosure of the conflict of interest, the individual with whom the conflict of interest is present must abstain from any discussion or deliberation regarding the matter (unless the Board of Trustees or administration requests information or interpretation for special reasons), and abstain from any decision on the matter. Record of such individual's withdrawal from participation in the discussion, deliberation, and decision on the matter should be noted in any minutes of the session at which such matter is considered. Should a potential conflict of interest matter require an Executive Committee or Board Vote to resolve, those concerned shall be present at the time of the vote. The Board should approve the transaction, on a majority vote of the disinterested Trustees, only if the Trustees believe that the transaction is in the best interests of the University and that, with respect to other alternatives, the transaction is the most favorable or reasonable to the University.”

“The compensation for the CEO was and is set by the executive committee of the board of trustees using data gathered from similar universities. The executive committee is comprised of selected board members disinterested with regard to the compensation arrangements. The compensation committee keeps contemporaneous documentation of the deliberations and decisions regarding the compensation arrangements. This process is completed prior to the beginning of each contract period being approved.”

“Financial statements, governing documents, and conflict of interest policies are not required disclosures pursuant to Internal Revenue Code (IRC) Section 6104. These documents are currently available upon request to entities determined by management to have a legitimate interest.”

“Other - Total Revenue: 233546, Related or Exempt Function Revenue: 233546, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ;”

“CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS - 774; Total - 774;”