Depaul University

“Organization's mission, continued the criterion against which plans are formulated and major decisions made and assessed; the bond which unites faculty, students, staff, alumni, and trustees as an academic community. As a university, depaul pursues the preservation, enrichment, and transmission of knowledge and culture across a broad scope of academic disciplines. It treasures its deep roots in the wisdom nourished in catholic universities from medieval times. The principal distinguishing marks of the university are its catholic, vincentian, and urban character. Central purpose depaul, in common with all universities, is dedicated to teaching, research, and public service. However, in pursuing its own distinctive purposes, among these three fundamental responsibilities this university places highest priority on programs of instruction and learning. All curricula emphasize skills and attitudes that educate students to be lifelong, independent learners. Depaul provides sufficient diversity in curricular offerings, personal advisement, student services, co-curricular and extracurricular activities to serve students who vary in age, ability, experience, and career interests. Full-time, part-time and on-line students are accorded equivalent service and are held to the same academic standards. As a comprehensive university, depaul offers degree programs at the undergraduate and graduate levels and a range of professional programs. The liberal arts and sciences are recognized not only for their intrinsic value in undergraduate and graduate degree programs, but also because they are foundational for all specialized undergraduate programs and supportive of all advanced professional programs. The university maintains that depth of scholarship to offer the doctorate in selected academic disciplines. Libraries, technology resources, and other academic support services match the levels and diversity of degree programs. Research is supported both for its intrinsic merit and for the practical benefits it offers to faculty, students, and society. Broadly conceived, research at the university entails not only the discovery and dissemination of new knowledge but also the creation and interpretation of artistic and digital works, application of expertise to enduring societal issues, and development of methodologies that improve inquiry, teaching and professional practice. In meeting its public service responsibility, the university encourages faculty, staff and students to apply specialized expertise in ways that contribute to the societal, economic, cultural and ethical quality of life in the metropolitan area and beyond. When appropriate, and mutually beneficial, depaul develops service learning and educational partnerships with other institutions and agencies. Students and faculty depaul invites to its programs of study students from across the nation. Originally founded for students from the greater chicago area, and still serving them predominantly, depaul continues its commitment to the education of first generation college students, especially those from the diverse cultural and ethnic groups in the metropolitan area. Admission standards for all degree programs are selective or highly selective. In admitting students the university places greatest weight on intellectual potential and academic achievement. It seeks diversity in students special talents, qualities, interests, and socio-economic background. Depaul university seeks to manage its resources effectively so as to control the costs it charges students for programs and services. It also seeks to maximize philanthropic support of its distinctive mission, and the affinity of its alumni. Moreover, it makes available as much financial aid as possible to assure access to a broad range of talented students. The university identifies and offers special assistance to students of high potential who have been handicapped by educational, personal or societal obstacles beyond their control. Fr”

“Part iii, line 4d auxiliary services - this category includes expenditures related to areas which help to enrich students overall college experience beyond academics. Expenditures include those related to university housing services, which provided housing for over 2,700 university students during the academic year. Expenditures also support the universitys student centers, which provide a number of student services, including dining services and student life programs. Expenditures related to the universitys bookstores are also included in this category, along with student recreation activities, such as the universitys ray meyer recreation center. Academic support - this category includes expenditures related to the provision of instructional support for the university's faculty and students, including university library services, dean's offices, and information technology. Public service - this category includes expenditures related to programs that impact the public, including the university's community based service learning program, which provides students the opportunity to serve the community, while earning university credit. Also included in this category are expenses related to the university's center for urban education, community affairs and the art gallery. Research - this category includes all expenses for activities specifically organized to produce research, whether commissioned by an agency external to the university or separately budgeted by an organizational unit within the university. The category includes expenses for individual and/or project research as well as that of institutes and research centers.”

“Form 990, part v, line 1a the total on this line includes 27,131 form 1098-ts, which the university is required to file with the irs and provide to its u.s. Person students.”

“Form 990, part vi, line 1a according to the university's by-laws, the executive committee of the board of trustees may exercise the authority of the board at any time. During the fiscal year the executive committee of the board of trustees acted within its authority to exercise the authority of the board of trustees to approve the transfer of certain funds to the universitys endowment fund.”

“Form 990, part vi, line 5 in september 2017, the university discovered a theft of funds of approximately $416,000 as the result of a "social engineering fraud". The theft was perpetrated by an individual or individuals unrelated to the university and involved the diversion of legitimate vendor payments to a fraudulent bank account. After an exhaustive investigation, the university identified internal issues and practices which may have detected the fraudulent activity earlier and which may have prevented the diversion of funds. As a result, the university has strengthened controls to help prevent or detect future fraud of this type, including policy changes and additional training for university staff.”

“Form 990, part vi, lines 6 & 7a election and termination of the university's board of trustees, along with the filling of board vacancies is the duty of the members of the corporation. The members of the corporation are elected and terminated by the members. Pursuant to the university's articles of incorporation, at least two-thirds of the voting membership of the corporation shall be members of the religious society called the roman catholic church, the congregation of the mission. Further, pursuant to the university's by-laws, the provincial superior of the western province of the congregation of the mission shall be a member of the corporation. Members are elected by the members and serve three-year terms. The number of members shall be as determined from time to time by the members. In addition to the authority to elect the board of trustees, the members may appoint committees to consider specific issues and submit reports and recommendations to the members and may adopt and amend the by-laws of the corporation which affect the authority, rights or duties of the members, or the manner of exercise or performance of same.”

“Form 990, part vi, line 11b once a draft of the university's form 990 is completed it is first reviewed internally by the university's controller. After the initial internal review of the return is completed, the draft form 990 is then reviewed by a public accounting firm, which may recommend revisions it feels may be needed. Once all revisions, if any, are made, the public accounting firm provides a final draft copy of form 990 to the university. The final draft is then reviewed by the universitys executive vice president and president. Lastly, the final draft of form 990 is provided to and reviewed by the members of the audit committee of the universitys board of trustees. After review by the audit committee, the form 990 is electronically filed and a filed copy of the form 990, without schedule b, is posted to the board of trustee's website for review by the full board. The university has determined that schedule b, which lists information concerning certain donations made to the university during the year, would not be made available to the entire board of trustees. This decision was made primarily for confidentiality reasons and to protect listed donor's personal information. Therefore, based on irs instructions, the university answered "no" to the question. In addition to the above reason, irs guidance also indicates that posting a copy of the form 990 on a central website for members of its governing body, which is the universitys practice, requires an answer of "no" to this question.”

“Form 990, part vi, line 12c the university has a conflict of interest policy for members of its board of trustees. The board of trustees' conflict of interest policy is subject to periodic review and was most recently reviewed and approved by the board as of the may 2014 board meeting. As of the end of the fiscal 2017/18, the university had in place a conflict of interest policy for staff, including university officers and key employees. Although the authority to establish university policies rests with the board of trustees, the board has delegated the responsibility for approving institutional policies, including the staff conflict of interest policy, to the president of the university. In conjunction with presidential approval, the university has established a multi-level review process for all university institutional policies, which incorporates input from a number of university constituencies, including faculty, staff and university executives. In addition, all policies are reviewed and updated on an as needed basis, with all policies reviewed, at least, once every three years. With regard to conflict of interest monitoring, on an annual basis university trustees and officers are required to disclose all actual and potential conflicts of interest. Related to trustees, the university has adopted a "conflict of interest policy for trustees of depaul university". The policy requires trustees to disclose, in writing, all actual and potential conflicts of interest on an annual basis. Trustees are also required to disclose all actual and potential conflicts of interest that may arise between the normal annual disclosure periods. It is the duty of the trusteeship committee of the board of trustees to review and act upon all conflicts disclosed and further to determine whether such disclosures should be referred to the full board for further review. Trustees with conflicts are to refrain from voting or otherwise influencing or attempting to influence a board member or administrator on any decision of the board on a matter in which such conflict exists. Documentation of recusal from voting is captured in the appropriate board or committee minutes. The university has also adopted a "conflict of interest" policy, which pertains to all university employees, including officers and key employees. The policy requires employees to disclose all actual or potential conflicts of interest, in writing, on an annual basis and at any time a conflict or potential conflict may arise between normal annual disclosure periods. Employees who influence or attempt to influence decisions on matters in which any conflict or appearance of a conflict exists, between the employee's personal interests and the interests of the university, must either refrain from involvement in the matter or disclose the conflict in writing, for further review, along with controls for ensuring that the best interests of the university are protected. Conflict disclosures by key employees and all other employees are reviewed and approved by their immediate supervisor and/or the university officer to whom they report, depending on the reporting structure. Conflict disclosures by officers are reviewed and approved by their immediate supervisor and/or the provost or executive vice president, depending on the reporting structure. Conflict disclosures by the provost and executive vice president are reviewed and approved by the president of the university. Conflict disclosures by the president are reviewed and approved by the chairman of the audit committee of the board of trustees.”

“Form 990, part vi, lines 13 & 14 as of the end of fiscal 2017/18, the university had in place both a whistleblower and records retention and destruction policies. Although the authority to establish university policies rests with the board of trustees, the board has delegated the responsibility for approving institutional policies, including the whistleblower and records retention and destruction policies, to the president of the university. In conjunction with presidential approval, the university has established a multi-level review process for all university institutional policies, which incorporates input from a number of university constituencies, including faculty, staff and university executives. In addition, all policies are reviewed and updated on an as needed basis, with all policies reviewed, at least, once every three years.”

“Form 990, part vi, lines 15a & 15b the annual (fiscal year) process for determining compensation for university officers begins by analyzing compensation data from the most current national published compensation surveys and irs form 990 data. Compensation data are analyzed from defined peer groups comparable to depaul in size, complexity, religious affiliation and/or academic offerings. For executive positions that are not exclusively found in higher education, data from other industries are included for market comparison purposes. All market data gathered are annualized and aged at a rate of 2.5% from the date of the data source to a common effective date of january 1, 2018. The compensation data sources are used to analyze depauls university officers pay levels and to determine if any adjustments need to be made. Depaul contracts with an outside consultant to compile, review and independently verify the compensation data. The outside consultant completes a detailed report, which includes the market analysis of executive positions and a presumption of reasonable compensation. The report is presented by the consultant to the board of trustee's executive compensation committee. The executive compensation committee is charged with reviewing and approving the recommended levels of compensation. The committee determines the president's compensation, without recommendation. Minutes of the committee's meetings, including its decisions regarding compensation matters, are recorded by the committee and maintained by the office of the secretary. Below are the positions and dates for which this process was conducted for the 2017/18 fiscal year. Position date president 6/8/2017 provost 6/8/2017 executive vice president 6/8/2017 vice president for facilities operations 6/8/2017 senior vice president for advancement 6/8/2017 vice president and general counsel 6/8/2017 vice president for human resources 6/8/2017 controller 6/8/2017 treasurer 6/8/2017 senior vp for enrollment management and marketing 6/8/2017 vice president for public relations and communications 6/8/2017 vice president for information services 6/8/2017 athletics director 6/8/2017”

“Form 990, part vi, section c, line 18 per irs regulations, for all open tax years, the university makes copies of its forms 990 and 990-t available for public inspection at both its main campuses and at all of its suburban campus locations. In addition, paper copies of the tax forms are available upon request by the public. Per the form 990 instructions, the university's application for recognition of exemption is not available for public inspection, as it was filed before july 15, 1987 and the university did not have a copy of the application as of that date. The university does have a letter dated april 8, 2015 from the irs verifying its status as an organization exempt from federal income tax under section 501(c)(3) of the internal revenue code and that donors may deduct contributions made to the university as provided in section 170 of the internal revenue code. Copies of this letter are available upon request.”

“Form 990, part vi, section c, line 19 the university's governing documents, by-laws and articles of incorporation, as well as copies of the university's conflict of interest policies are available upon request from the office of the secretary. Copies of the university's financial statements are also available upon request from the university's financial affairs office.”

“Form 990, part vii fr. Holtschneider assumed the position of chancellor on july 1, 2017. The amounts listed in both part vii and schedule j represent amounts paid for calendar 2017 to the point fr. Holtschneider vacated the position of president. Dr. Esteban assumed the position of president on july 1, 2017. Therefore, his reported compensation reflects a partial calendar year. Mr. Caringella terminated his employment with the university prior to the 2017/18 fiscal year, but received compensation during the compensation reporting period, calendar 2017, contained in the 990. As such, zero hours are shown in part vii, section a, column (b).”

“Form 990, part xi, line 9 gain on disposal of long-lived assets 744,877 change in value of charitable term trust 114,260 distribution from related organization 34,156,918 ------------ total 35,016,055”