The Howard University

“In August 2016, as part of the University's on-going effort to improve internal controls, the University reviewed the financial aid processing software system. The University noted certain processes that warranted further review. In November 2016, The University retained a forensic accounting firm to further review financial aid internal controls. These reviews established that $369,000 had been inappropriately awarded to employees. The University identified and terminated six employees that made or received the awards in connection with this awarding process. Additionally, the University has retained a financial aid consulting firm to continue an on-going investigation and conduct an operational and compliance review to improve the controls over the administration of financial aid.”

“Review of the form 990 by governing board: a meeting of the audit and legal committee (a&lc) of the board of trustees is held to present and review a draft of the full form 990, including all applicable schedules. Each a&lc committee member is provided a copy of the return prior to the meeting. At the meeting they are allowed to ask questions regarding the form 990. Changes are documented and the form 990 is updated. A final draft of the full form 990 is provided electronically to each member of the full board for review. Once the board has had time to review and comment on the form 990, it is filed with the irs.”

“Compliance with conflict of interest policy: annual disclosure is required of each officer, director, trustee and key employee. Each person completes an annual conflict of interest questionnaire. Once the conflict of interest questionnaires are completed, they are reviewed by the chief compliance officer/office of the general counsel. If an actual conflict of interest is determined to exist, that person is excluded from any discussions concerning the conflicting issue and is not permitted to vote on any decisions regarding the conflicting issue.”

“Compensation of the ceo, executive director, or other top management official: the process for determining the compensation of the organization's president included a review and approval by the board of trustees, which consisted of only independent persons. The board of trustees used a customized survey of howard university's benchmark institutions created by prm consulting to determine the compensation. The board of trustees conducts an annual performance review of the president and adjust compensation based on achievement of agreed upon goals and objectives. The process was documented in the board meeting minutes.”

“Public disclosure of governing documents, conflicts of interest policy, and financial statements: the organization's governing documents, conflict of interest policy, and financial statements are made available to the public on the organization's website and upon request.”

“Other: Program service expenses 66,031,139. Management and general expenses 31,925,674. Fundraising expenses 991,662. Total expenses 98,948,475.”

“Unrealized Change In Funded Status of Defined Benefit Pension Plan 32,753,000. Unrealized Change In Obligation For Post Retirement Benefit Plan -100,000. Unrealized change in obligation for Supplemental Retirement Benefit Plan 107,000. Gain on disposal of property”