The Kings University

“The Executive Committee is composed of the Chairman, Vice-Chairman, Chancellor and President. The Committee is authorized to exercise any and all powers of the board of trustees, except any actions prohibited by law, the Articles and the Bylaws of the corporation. The Committee reports its activities and affairs to the board of trustees at the next meeting.”

“The Form 990 is prepared by an independent CPA firm and is first reviewed in detail by the Director of Finance and Chief Financial Officer. A full copy of the 990 is then provided to the board members prior to being filed with the IRS.”

“The conflict of interest policy requires each trustee and officer to disclose actual or possible conflicts of interest on an annual basis. The Executive Team, which consists of the President and two Vice Presidents, evaluates each disclosure to determine if an actual conflict exists; in the case that a member of the Executive Team is involved in the disclosure, the board will make the determination. Following the disclosure, the responsible person recuses him or herself from the discussion and vote on the transaction or arrangement involving the possible conflict of interest. The Chairperson has the authority to appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the board and/or Executive Team shall determine whether the university can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.”

“Compensation for the President and other officers as reported on Part VII is determined by the independent members of the Executive Committee of the board. Comparability data is examined annually, including Form 990's from similar universities. Compensation deliberations are recorded in the Executive Committee minutes and in the board minutes.”

“See narrative for Form 990, Part VI, Line 15a”

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

“Compensation reported in Part VII, column D and Schedule J, Part II, column B is the amount reported on the individual's W-2, box 1 or 5 (whichever amount is greater) per the IRS instructions. In the case of minister's compensation when box 5 of the W-2 is not applicable, box 1 compensation is used. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of Form W-2. For reporting purposes we have included the minister's retirement plan deferrals in Part VII, column F and Schedule J, Part II, column C.”

“The King's University (TKU) was originally incorporated in California in 1997, but relocated to Texas in 2014. In 2013, TKU created a separate Texas tax-exempt organization (TKU-TX) and TKU is in the process of liquidating the CA entity and moving all operations, assets and liabilities to TX entity. Until that liquidation is completed, TKU will file two separate 990's, one for California and one for Texas. For filing purposes, the Texas Form 990 reports all salary expenses for employees. The California Form 990 reports all educational activity and includes salary expenses as an employee lease back. Both organizations share the same program accomplishments reported on Part III and the same board reported on Part VII.”