Anderson University Inc.

“The Executive Committee is composed of seven trustees including the Chair and Vice Chair. The other five members are elected annually by the Board of Trustees. Other members may meet with this Committee, they do not have voting power. It is the duty of the Executive Committee to act on behalf of the Board of Trustees during the period between the Board's meetings.”

“The organization updated its bylaws to amend the 5-year staggered terms to nominating 15 or 16 trustees bi-annually in odd numbered calendar years to accommodate the new schedule of the Church of God General Assembly, which now meets bi-annually instead of annually. Section 1.2. The Board of Trustees shall comprise thirty-two (32) members ("Trustees"), at least eleven (11) of whom shall be ordained ministers of the Church of God. Trustees will be selected as follows: A. The Board, bi-annually in odd numbered calendar years, shall nominate fifteen (15) or sixteen (16) persons to serve as Trustees. The name of each person so nominated shall be submitted to the General Assembly of the Church of God, Anderson, Indiana ("General Assembly") at its next annual or bi-annual meeting for ratification in accordance with its Bylaws. Each Trustee so nominated and ratified shall serve a term of four (4) years beginning on the next succeeding July 1 after ratification. B. No person shall be renominated as a Trustee who has already served as a Trustee for three consecutive four (4)-year terms until after a lapse of one (1) year. A term of five (5) or more years which was served prior to the change in term length or is being served at the time of the change in term length shall be treated as a four (4) year term for purposes of determining the fulfillment of the three (3) consecutive four (4) year term limitation. D. In the event of a vacancy on the Board (other than the Trusteeship held by the President), a person shall be nominated and ratified to fulfill the unexpired term consistent with the procedures set forth in Subsection 1.2A of these Bylaws, except that the person so nominated shall begin to serve immediately and shall be ratified at the next General Assembly meeting. E. In order to change from the five (5) year staggered terms with the General Assembly meeting annually to four (4) year staggered terms with the General Assembly meeting every two (2) years, the year of term expiration for the Trustees shall be changed as noted on Exhibit "A". This provision shall be removed from these Bylaws one (1) year after the date of the approval of these Bylaws.”

“The University's Form 990 is prepared by an independent CPA firm. Prior to the 990 being filed with the IRS, the 990 is reviewed in detail by the University's Controller, Vice President for Finance, President, and the Audit Committee. The University's Board of Trustees delegates the review of the Form 990 to the Audit Committee, a subcommittee of the University's Board of Trustees. Before filing the 990, the Board of Trustees receive a copy to review.”

“The Controller annually monitors all existing conflicts and enforces compliance with the University's conflict of interest policy by conducting a review prior to the University's annual audit. The University's conflict of interest policy states that all employees and Board of Trustees submit a conflict of interest form each year of employment. Determinations of existing conflicts is the responsibility of the Controller who will also review with the Vice President for Finance and Treasurer. Persons with conflicts do not participate in decisions and deliberations of the governing body.”

“15a - The independent Executive Committee of the Board of Trustees establishes the salary of the President upon recommendation of the subcommittee on evaluation and compensation. This process is directed through Human Resources where compensation is compared to area benchmark information. The University's strategic plan is to reach compensation rates at 80% for staff and 77% for faculty of benchmark. HR then presents a recommendation to the Board of Trustees for approval annually. This process is documented in the board minutes. 15b - The salaries of other Executive Officers of the University are established independently of the President, subject to the approval of the subcommittee on evaluation and compensation. This process is directed through Human Resources where compensation is compared to area benchmark information. HR then presents a recommendation to the President for approval annually. The President may appoint and establish the salaries of administrative officers as he/she deems appropriate. This process is documented in the HR files.”

“The University's governing documents and conflict of interest policy are available on the University's public website. The University's financial statements are not made available to the public but the financial statements are available at emma.msrb.org for bondholders.”

“Actuarial change in annuities and trusts 207,078. Asset valuation adjustment -268,487. Affiliate prior year activity”

“The organization's Board assumes responsibility for oversight of the audit of its financial statements and selection of its independent accountanting firm. This process has not changed since the prior year.”