Los Angeles Pacific University

“Los Angeles Pacific University (LAPU) has one class of members consisting of Azusa Pacific University.”

“As specified in Section 2.2 of the Los Angeles Pacific University bylaws, LAPU has one class of members, Azusa Pacific University. The sole member has the right to vote on the election, removal and replacement of all directors of LAPU.”

“APU, as sole member, has the authority to vote on the election, removal and replacement of all Directors of LAPU, on a disposition of all or substantially all of the assets of LAPU, on a merger or on a dissolution, and on any changes to the corporate form of LAPU.”

“Form 990 is prepared by an independent CPA firm and reviewed in detail by the organization's top management. The reviewed Form 990 is then forwarded to the board of directors for review prior to filing.”

“Annually, the Office of the General Counsel has all trustees, officers, and other key employees complete a conflict of interest questionnaire and the General Counsel addresses any disclosed conflicts of interest pursuant to the processes set forth in the University's Policy on Conflicts of Interest. All potential conflicts of interest by administrators, officers or trustees of the institution are brought to the attention of the Chairman of the Board of Trustees and General Counsel for resolution.”

“It is general practice to conduct market analysis using Kenexa and CUPA (College and University Professional Association) for purposes of comparability to ensure equity for key employees with salaries exceeding $150K in addition to requiring that the board chair and CEO review and approve the compensation package. For the CEO, independent and external review is conducted upon renewal of contract with the chair and an independent board director of LAPU making the final approval of the compensation package. The deliberation and decision are documented in the board minutes.”

“The governing documents, conflict of interest policy, and financial statements are available upon request.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2019. The 2018 Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $10,351,575 Line 29 - Net assets with donor restrictions $ 0 ___________ Total net assets $10,351,575”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant.”