Ball State University Foundation Inc

“As of 6/30/2016, bernard m. Hannon and terry king are paid employees of ball state university, a related organization. Tom kinghorn and don dumoulin both have business transactions involving interested persons reported on schedule l which makes them non-independent.”

“The form 990 and related schedules are appropriately reviewed by the audit committee and an independent accounting firm. The form 990 and schedules are then provided to the full board prior to submission to the irs.”

“An annual questionnaire is required to be completed by every officer, director and key employee. The questionnaire requires all interested persons to disclose potential conflicts of interest. Upon disclosure of an interest, the board discusses the potential conflict without the interested person present to determine if a conflict actually exists. The board then determines the appropriate action after analyzing the conflict, including recusal from discussions relating to the conflict.”

“An annual review is performed for the ceo & president. This review analyzes compensation as well as goals and objectives set forth and accomplished. A comparability study is performed with information from form 990s of similar organizations. The information collected is reviewed by a committee of the board and approved.”

“Ball state university foundation makes governing documents, form 990, conflict of interest policy and audited financial statements available upon request.”

“Beginning July 1, 2015, the Ball State University Foundation (Foundation) went through a unification of several areas that were being managed through Ball State University. In an attempt to better serve our constituents, we unified the areas of Development, Advancement Services, Operations, Alumni Center Operations and the administrative component of the Alumni Association. In making this significant change, the tax return reflects functional expenses differently based on our new expense structure. Prior to the unification, the Foundation supported the efforts of Development through payments to the University and additionally paid for significant marketing expenses to recruit students. After the unification, the expenses shifted from payment to the University to incurring all of the payroll and benefit costs for those employees and the related operational expenses. The Foundation went from a structure of managing the dollars raised to a much broader scope of fundraising and donor relations. The number of employees went from roughly 18 to 65. The ultimate goal was to create an organization that was both accountable for fundraising, donor relations and fund management all under one umbrella. PART IV QUESTION 12 & PART XII QUESTION 2 THE AUDITED FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ON A CONSOLIDATED BASIS WITH CARDINAL FUNDS, CARDINAL PROPERTIES, AND LOCUST KNOLL. BALL STATE UNIVERSITY FOUNDATION HAS ESTABLISHED A COMMITTEE FOR THE OVERSIGHT OF THE AUDIT.”

“Reconciliation of net assets change in value of split interest agreement (827,987) pledge adjustment (1,590,435) total $(2,418,422)”