Virginia Tech Foundation Inc.

“Management and the foundation accounting staff provide the necessary financial and other information to the foundation's independent third party tax consultants. The tax consultants review and compile the information into the 990 and 990t forms and provide a draft to management. Management and the associate vice president and controller perform a detailed review of the form prior to forwarding it to the ceo for review. The ceo then reviews the forms. Any issues after these reviews are communicated back to the third party tax consultants. Any issues are corrected and addressed by both parties. Two weeks prior to the filing deadline, the forms are electronically provided to all members of the foundation board of directors. If there are no comments or issues that could not be resolved, the chief executive officer then signs the transmittal form to permit the electronic filing, as required by the irs, on behalf of the foundation. Disclosure of the 990 and 990t will be made in full compliance with the requirements established by the irs.”

“The virginia tech foundation, inc. Has adopted a conflict of interest policy that requires each member (foundation board of directors, officers, and key employees (responsible persons)) to complete an annual statement setting forth any and all potential and actual conflicts of interest that occurred during the past fiscal year. In addition to the statement, an annual compliance questionnaire must be completed and submitted by each member. Also, if a conflict should arise that was not previously disclosed in the annual statement or the questionnaire, a statement must be submitted to the virginia tech foundation disclosing the facts of the situation. The executive committee of the foundation reviews the questionnaires and statements and will determine if a conflict does actually exist. The executive committee shall determine whether to authorize approve or ratify the arrangement/transaction based solely on whether it is in the best interests of the foundation in performing its mission.”

“Board of directors directors receive no compensation for service to the foundation. Officers - executive vice presidents officers of the foundation are the university's vice president for advancement, and chief financial officer. These positions are employed by and funded 100% by the university and their salaries and benefits are approved by the university's board of visitors based upon recommendation by the university president. The university utilizes various higher education salary studies and data from peer institutions in establishing salaries and benefits for these positions. Officer - chief executive officer and secretary/treasurer salary and benefits for the chief executive officer and secretary treasurer are recommended by the university president and approved by the foundation's compensation committee. Comparative salary and benefits information is provided to the compensation committee for its consideration in making salary adjustments and establishing benefit programs. Professional and classified staff it is the foundation's policy to provide salary and benefits as close as practible to those provided to university employees. Professional and classified staff salaries are approved by the chief executive officer and secretary treasurer and included in the board approved annual operating budget. Comparative data including university averages for similar positions are used in establishing and adjusting salaries. Merit adjustments mirror the university approved merit adjustments each year.”

“UPON REQUEST”

“The foundation adopted a joint venture policy on september 1, 2009. The policy requires that the foundation evaluate its participation in joint venture agreements under federal tax law and take steps to safeguard the foundation's exempt status with respect to such arrangements.”

“Independent & professional services: program service expenses 2,579,318. Management and general expenses 87,469. Fundraising expenses 1,640,076. Total expenses 4,306,863. Miscellaneous: program service expenses 1,082,418. Management and general expenses 655,994. Fundraising expenses 368,787. Total expenses 2,107,199. Rivercourse: program service expenses 907,323. Management and general expenses 1,173,944. Fundraising expenses 0. Total expenses 2,081,267. Public relations: program service expenses 1,313,543. Management and general expenses 22,881. Fundraising expenses 383,248. Total expenses 1,719,672. University equipment purchases: program service expenses 1,399,014. Management and general expenses 0. Fundraising expenses 190,430. Total expenses 1,589,444. Radio station: program service expenses 827,322. Management and general expenses 367,994. Fundraising expenses 329,032. Total expenses 1,524,348. Non monetary support to programs: program service expenses 1,416,354. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,416,354. Maintenance: program service expenses 436,939. Management and general expenses 1,522. Fundraising expenses 5,575. Total expenses 444,036. Professional memberships: program service expenses 290,006. Management and general expenses 15,908. Fundraising expenses 26,523. Total expenses 332,437. Other equipment rentals: program service expenses 183,990. Management and general expenses 525. Fundraising expenses 142,532. Total expenses 327,047. Annuity giving: program service expenses 31,986. Management and general expenses 0. Fundraising expenses 0. Total expenses 31,986. Taxes: program service expenses 14,923. Management and general expenses 0. Fundraising expenses 0. Total expenses 14,923.”

“Change is value of interest rate swaps -262,270. Change in valuation of split interest agreements 1,061,443.”

“The process has not changed from the prior year.”