Elmhurst University

“Form 990, Part VI, Line 11b The final review Form 990 and its various schedules were prepared by a national CPA firm, and then were reviewed by the Key Officers of the organization prior to making it available to the Board of Trustees. After the Key Officers reviewed the form, it was distributed to the Audit Committee of the Trustees at their Spring meeting. Identified necessary changes were incorporated following the board review process and a final copy of the filing was made available to all members of the board of trustees prior to filing.”

“Form 990, Part VI, Line 12c Conflict of interest forms are sent to Trustees, Officers, Key Employees (as applicable) and others for completion. The completed forms are returned to and reviewed by the Board Audit Committee Chair. The Audit Committee Chair together with the Audit Committee is responsible for administration of this policy. Matters of concern are brought to the Chair of the Board of Trustees or the President. Approval of compensation transactions and other transactions covered by the policy are done through a review composed entirely of individuals who do not have any conflict of interest with respect to the arrangement or transaction at hand. Persons determined to have a conflict of interest are prohibited from participating in the governing body's deliberations and decisions in transactions which may relate to the conflict. They rely upon independent comparability data or valuations prior to making a determination. Matters related to compensation rely on external expertise in higher education.”

“Form 990, Part VI, Line 15a The President's salary is reviewed annually and determined by a process established by the Board of Trustees. The process begins with obtaining data from the College and University Professional Association for Human Resources (CUPA-HR) annual Salary Survey, periodically the Yaffe & Company Executive Compensation Survey, and the form 990 tax returns of comparable institutions are also reviewed. These surveys as well as the economic condition of Elmhurst College and other information concerning higher education are analyzed by the Human Resources Committee of the Board of Trustees with the assistance of the Vice President for Finance and Administration and periodically with input from an external consultant. The Human Resources Committee performs an annual formal evaluation process of the President in executive session. Performed in fiscal year 2013, every three years the committee performs an extensive evaluation involving various faculty, staff, students and external constituents. The Human Resources Committee recommends the salary revision to the full Board of Trustees who provides the final approval. Minutes of the Human Resources Committee document the determinations made during executive session.”

“Form 990, Part VI, Line 15b Top management's (Vice Presidents and Deans) salaries are reviewed annually by a process similar to all other employees. The President performs a formal evaluation. Using the CUPA-HR annual Salary Survey--the annual performance evaluation and the financial constraints of the College--the President then determines the salary revisions which are reviewed by the Human Resources Committee of the Board of Trustees. All other key employee salaries are reviewed annually by a similar process as the top management. Formal performance evaluations are performed by the supervisor of each key employee with recommendations for salary revisions provided to the top management employee over that area of responsibility. The evaluations and recommendations together with the comparison to the CUPA-HR annual Salary Survey and the preset budget for salary increases are reviewed by each top management administrator with recommendations presented to the President. Final approval is given by the President.”

“Form 990, Part VI, Line 19 The governing documents and financial statements of the college are available upon request, and financial statements are provided to various State Agencies, US Department of Education, various banks and others per agreement. In addition, the Annual Form 990 Information Return and 990-T Tax Return and all related documents and schedules are available to the public upon request. The conflict of interest policy is sent annually to all members of the Board of Trustees, Officers, Key Employees and other identified employees.”

“Form 990, Part XI, Line 9 change in value of interest-rate swap..............$(2,475,532) Change in beneficial interest in trusts..............$(228,281) Restructuring......................................$(3,174,736) Total..............................................$(5,878,549)”