Baker College

“JULIA TEAHEN (PRESIDENT OF ON-LINE DIVISION) AND ED KURTZ (SECRETARY) - Family relationship”

“Pursuant to the organization's governing documents and the Michigan Non-Profit Corporation Act, Baker College is the sole stockholder of Baker Online.”

“Pursuant to the organization's governing documents, the Board of Regents, the governing body of Baker Online, is appointed by the sole stockholder, Baker College.”

“An appointed committee consisting of the Board Chair, Campus Chief Executive Officer, and Campus Vice-President for Finance approved by the Board of Regents/Trustees/Directors reviewed the Form 990. The appointed committee was provided a draft of the return and a board summary report prepared by the paid tax return preparers which highlighted key areas of the Form 990. Subsequent to the appointed committee's review and recommendations, the final copy was made available to the full Board of Regents/Trustees/Directors, either electronically or by mail, prior to the filing of the Form 990 with the IRS.”

“The Conflicts of Interest Policy covers the officers, directors, trustees, and key employees of the college. These individuals have a duty to disclose any actual or possible conflicts of interest to the Corporate Control Office and campus business office. After disclosure of the conflict, the Corporate Control office shall determine whether a financial interest exists. The system follows written procedures for addressing disclosed conflicts of interest. The Corporate Control Office will review the facts and circumstances and determine whether the transaction or arrangement is in the College's best interest, for its own benefit, and fair and reasonable to the College. The Corporate Control Office shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination.”

“Compensation for the CEO, who is the top management official, is reviewed and approved every year in June by the governing body. This review process occurs annually, and the College uses compensation data provided by the College of University Professional Association (CUPA) and other Colleges Form 990 for similarly qualified persons functioning in comparable positions. Periodically, an independent consultant surveyed other similar educational institutions to compare the CEO and Presidents' compensation. Written minutes are maintained that include the documentation with respect to the deliberations and decisions of the compensation for the CEO.”

“A compensation review is performed every year in June for the officers identified in Part VII of the Form 990. This review is performed annually by the System Headquarters CEO and the comparability data is prepared and reviewed by System Headquarters CEO, Campus CEO, and Campus Presidents. The report prepared by the System Headquarters CEO, Campus CEO, and Campus Presidents is presented to the governing body for review and approval. Written minutes are maintained that include the documentation with respect to the deliberations and decisions of the compensation for the Officers. In addition, the organization's Secretary and Treasurer are compensated by Baker College Professional Services, a related tax-exempt organization. The organization relies upon Baker College Professional Services' review and approval of compensation for these two officers.”

“Financial statements, governing documents, and conflict of interest policies are not required disclosures pursuant to Internal Revenue Code (IRC) Section 6104. These documents are not available to the public at this time.”

“Baker online is included in the consolidated financial statements of baker college and subsidiaries ("the college"). During fy15, the college implemented a new enterprise resource planning system. For general ledger purposes, the balance sheets of each of the subsidiaries has been combined. The erp system provides for separate tracking of fund balance for each subsidiary, but no further detail on balance sheet items. A reconciliation to fund balance is provided to capture all activity for each subsidiary for purposes of form 990 reporting and presentation.”

“SYSTEM IT TRANSFER - -1008000; TRANSFER TO RELATED ORGANIZATION - -2001000; dissolution of disregarded entity - -2214580; STUDENT CLUB ACTIVITY - 4125; miscellaneous adjustment - -1000;”

“As required by the U.S. Office of Management and Budget Circular A-133, audits of states, local governments, and non-profit organizations, in 2015 Baker College and subsidiaries received an audit for the consolidated financial statements for the fiscal year ended August 31, 2015, in accordance with the Single Audit Act. Baker Online is a subsidiary corporation of Baker College.”