Jefferson Scholars Foundation

“The foundation's board of directors (board) includes three ex-officio positions: the chairman of the uva alumni association or his or her designee; a designee by the board of visitors of uva in consultation with the foundation's board chairman; and a designee by the president of uva, also in consultation with the foundation's board chairman.”

“The foundation's independent auditors prepared the form 990 from information provided by the foundation's finance team. The director of finance reviews the form 990 and acknowledges his responsibility for the completeness and accuracy of the informational tax return. Upon completion of the review, the return is distributed to members of the board's audit committee for review and approval. After approval, the return is filed with the internal revenue service.”

“Conflict of interest policy monitoring and enforcement compliance: a conflict of interest disclosure statement is distributed annually. The foundation monitors the return of the disclosure statements and follows up accordingly. The foundation requires each director and employee to disclose conflicts of interests as they arise. The disclosure statements are reviewed by the director of finance for situations requiring disclosure to, and approval by, the board of directors. The conflict of interest transaction must be approved by the affirmative vote of a majority of the directors on the board of directors who have no direct or indirect personal interest in the transaction. Finance team members monitor the foundation's business dealings to identify, when possible, a potential conflict of interest. Any identified potential conflict of interest would be brought to management's attention for resolution.”

“The foundation employs its president under the terms of a five-year employment agreement. The contract terms and compensation were established by the board of directors using comparable data, a compensation consultant, and an employee benefits attorney. The board documented this employment decision through the terms of the employment agreement. Form 990, part vi, section b, line 15b: the foundation's director of business planning and operations conducts an annual compensation review using comparable compensation information pertaining to the employment responsibilities and experience levels of all foundation staff. This compensation information is shared with the foundation president for input into the review and evaluation of the staff compensation.”

“The foundation's form 990 and form 990-t are available upon request.”

“The foundation's governance documents are not available to the public. The foundation's conflict of interest policy and financial statements are available upon request.”

“For the tax year ended june 30, 2019 an officer of the foundation was paid total renumeration in excess of $1 million dollars. Compensation paid to the officer in the tax year 2018 included $836,610 of deferred compensation that was vested prior to the effective date of irc section 4960. Pursuant to irs notice 2019-9, as interim guidance under irc section 4960, this vested deferred compensation is not subject to section 4960 excise tax and is not to be counted for determining whether compensation was in excess of the $1 million threshold.”

“Change in fair value of interest rate swap -1,651,676. Change in fair value of beneficial interest in trusts 25,631. Change in fair value of perpetual trusts -360,839. Reserve for note receivable -543,864. Write-offs of pledges receivable -466,702.”

“No changes were made to the audit oversight or independent accountant selection processes during the fiscal year.”