Bellevue University

“FORM 990, PART VI, QUESTION 2 Board member, John Nelson, is the Chairman and CEO of Silverstone Group. This company provides insurance related services to a large number of individuals and companies. Some of the organization's Directors are employed by companies that do business with Silverstone. John Kotouc is Board Member and Chairman/CEO of American National Bank. Other Directors may have businss relationships with American National Bank. Deryl Hamann (Emeritus) is the father of active board member Dan Hamann.”

“Form 990, part vi, question 11b the finalized form 990 is made available to the university board for review and comment prior to filing with the irs. A formal discussion about significant issues related to the filing is held at the next scheduled meeting after the form is complete.”

“Form 990, part vi, question 12c the university's conflict of interest policy and questionnaire require all board members, officers, and key employees to disclose in writing any potential conflicts that may exist in accordance with revised and suggested 990 guidelines. This exercise has been completed and documentation has been obtained for purposes of the university's 2013 form 990 filing. Additionally, the university's board of directors adopted stand-alone policy statements for whistleblower, document retention and destruction, executive compensation, joint venture, and investments.”

“Form 990, part vi, question 15a the organization's board of directors periodically engages an independent third party to compile comparability data (i.e. Data based on the size of the organization's enrollment, program offerings, operating budgets, geographic area, and nonprofit status) and provide a fair market value analysis on an appropriate compensation package to be provided to the president. This information is reviewed by the board of directors and used to establish the president's compensation. Such approval is documented contemporaneously in the board minutes. This was last completed for the 2009/2010 contract. Since then, only yearly adjustments have been made. Ray cotton and silverstone have been engaged to complete the review.”

“Form 990, part vi, question 15b for establishing the compensation of the organization's other officers and key employees, the board of directors periodically review comparability data (i.e. Data based on the size of the organization's enrollment, program offerings, operating budgets, geographic area, and nonprofit status), compiled by independent third parties. This information is reviewed by the board of directors and used to establish fair market value compensation for these employees. The president makes an annual review based on a salary report from aicun.”

“Form 990, part vi, question 19 to the extent the organization's governing documents and conflicts of interest policy are subject to federal and state disclosure rules, these documents are made publicly available upon request as applicable law may require.”

“John nelson - board member and ceo of silverstone group, bellevue university's insurance broker who provides insurance and consulting services.”

“Form 990, part xii, question 2b bellevue university's financial statements are audited by an independent accountant on a consolidated basis with bellevue university foundation.”

“Form 990, part ix, line 24e program managament fundraising service expense & general expense expense --------------- ----------------- ----------- supplies $368,437 $250,803 $1,968 bad debts 0 455,193 0 memberships 47,702 229,009 16,207 dues & subscriptions 300,688 371,459 0 recruiting 28,689 17,112 0 student activities 40,997 0 0 equipment rental & maintenance 174,399 61,051 0 telephone 184,178 111,477 226 services charges 57,840 1,969 0 graduation 132,078 0 0 postage & shipping 64,055 39,737 4,828 printing & publications 9,110 99,871 2,775 special program 775 3,678 0 transcripts 1,225 0 0 endowment fees 23,729 62,835 0 property tax 0 5,692 0 --------------- ----------------- ----------- $1,433,902 $1,709,886 $26,004”