Northern Illinois University Foundation

“The board has adopted the practice that the audit committee, the president/ceo and controller review the form 990 before it is filed. The board members are then provided a copy of the form 990 before it is filed. It is reviewed at the next board meeting.”

“Management and the audit committee annually reviews all existing and new relationships to identify any potential conflicts of interest that need to be disclosed. All employees, directors, and board members are given a copy the conflict of interest policy. They are also required to complete and sign a conflict of interest disclosure questionnaire. The audit committee reviews the conflict of interest reports annually. Potential conflicts are shared with relevant committee chairs and members recuse themselves from discussions and votes on related matters.”

“The niu foundation's board of directors are not compensated. Niu foundation assigned employees are not paid directly by the niu foundation. The niu foundation assigned employees are paid by northern illinois university and the niu foundation pays the university a contract fee for a portion of the salaries and services performed by the employees. The niu foundation's president is responsible for negotiation and approval of service contract amounts with northern illinois university and the niu foundation. The contracts are typically renewed each year at the prior year amount plus the university salary increment level for personal services. Niu maintains a regular compensation process for the president which includes the use of comparable data. Niu foundation has a compensation committee that reviews compensation for the president/ceo which includes the use of comparable data.”

“The niu foundation's board of directors are not compensated. Niu foundation assigned employees are not paid directly by the niu foundation. The niu foundation assigned employees are paid by northern illinois university and the niu foundation pays the university a contract fee for a portion of the salaries and services performed by the employees. The niu foundation's president is responsible for negotiation and approval of service contract amounts with northern illinois university and the niu foundation. The contracts are typically renewed each year at the prior year amount plus the university salary increment level for personal services. Niu maintains a regular compensation process for key employees which includes the use of comparable data. Niu foundation has a compensation committee that reviews compensation for key employees which includes the use of comparable data.”

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

“Niu foundation does not have employees. Employees are provided through a services agreement with northern illinois university. Form 990, part vi, section a, line 4 northern illinois university foundation updated its bylaws in may of 2018. Changes to the bylaws included having board meetings that are not public, changing terms of board members to staggered appointments, and updating the minimum number of board members from 28 to 18.”

“IN PRIOR YEARS, THE FOUNDATION REPORTED ITS FINANCIAL STATEMENTS UNDER THE STANDARDS FOR GOVERNMENTAL ENTITIES PROMULGATED BY THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD. DURING 2018, THE FOUNDATION DETERMINED THAT IT DID NOT MEET THE CRITERIA TO REPORT AS A GOVERNMENTAL ENTITY AND INSTEAD SHOULD HAVE BEEN REPORTING ON THE BASIS OF THE FINANCIAL ACCOUNTING STANDARDS BOARDS (FASB) FINANCIAL ACCOUNTING STANDARDS. AS A RESULT, THE JULY 1, 2017 NET ASSETS WERE CONVERTED TO THE FASB FINANCIAL ACCOUNTING STANDARDS FROM THE GOVERNMENT ACCOUNTING STANDARDS. DURING THIS PROCESS, THE FOUNDATION ALSO IDENTIFIED CERTAIN FUNDING THAT WAS IMPROPERLY RECORDED AND SHOULD BE CLASSIFIED AS DONOR FUNDS BEING MANAGED ON BEHALF OF NORTHERN ILLINOIS UNIVERSITY. This was corrected in FY18.”