Cantigny Foundation

“Cantigny foundation has retained kemper sports management, inc., an unrelated professional service provider, to operate and manage the cantigny golf and food and beverage operations under cantigny foundation's supervision and control. All of kemper's services must be performed in a manner that furthers the foundation's charitable and tax-exempt purposes, as determined in the sole discretion of the foundation, and that principle shall at all times override any profit motive of kemper sports management, inc. The agreement has a seven-year term with options for extension and certain early termination rights. The facilities remain the assets of the foundation, and the revenues and most expenses continue to be the foundation's; however the employees of the golf and food and beverage operations are kemper employees.”

“The form 990 is prepared by an independent accounting firm, grant thornton, in conjunction with management. After the form 990 has been completed, cfo reviews the document. If the cfo is satisfied that the return has been accurately completed in accordance with irs instructions, the return is reviewed for irs compliance by the foundation's legal counsel. Before filing the return, the significant 990 components and form changes are summarized for the board of directors. The cfo and foundation's legal counsel discuss and review the 990 tax return with, and a copy of the return is provided to the board of directors during their regularly scheduled meeting.”

“Annually, the foundation's conflict of interest policy and annual disclosure statements are distributed to all benefit-eligible employees and board members. Conflict of interest disclosure statements must be completed each year by all benefit-eligible employees and directors and returned to the compliance officer for review. If the compliance officer determines that there is in fact a conflict of interest involving an employee, the matter is disclosed to the board of directors. Conflicts identified involving a board member are referred to legal counsel. Additionally, throughout the year, any third party interactions that may give rise to the appearance of a conflict of interest must be reported to the compliance officer within one week of occurrence.”

“The ceo and executive team make key employee salary recommendations to the board of directors based on performance evaluations, cost of living changes, market comparability data and budget constraints. Profiles are prepared for each vice president and key employee including their current salary, market comparability data, and recommended salary for the following year. The board reviews the profiles and approves/disapproves the recommendations. A profile is also prepared for the ceo position, however no salary recommendation is made. The board reviews the profiles, discusses the information based on the factors noted above, and agrees on an annual salary for each member of the executive team and the ceo. The approved salaries are communicated by the board of directors to human resources in writing and documented in the meeting minutes.”

“The foundation's conflict of interest policy and governing documents are available upon request. The foundation's financial statements are available upon request and located on its website.”