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 salary and benefits for the chief executive officer are approved by the foundation's compensation committee, which includes the board chair, the audit committee chair, and other directors. Comparative salary and benefits information is provided to the committee for its consideration in making adjustments. The annual board-approved operating budget establishes salaries and benefits for all other foundation officers. Professional and classified staff the board's investment committee establishes salaries for the foundation's professional investment staff. Other professional and classified staff salaries, and employee benefits, are determined by the chief executive officer and included in the board-approved annual operating budget. Comparative market and other data are used in establishing and adjusting salaries and providing benefits.”

“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.”

“Meals & entertainment: program service expenses 4,506,900. Management and general expenses 63,938. Fundraising expenses 803,578. Total expenses 5,374,416. Independent & professional services: program service expenses 2,929,316. Management and general expenses 113,340. Fundraising expenses 1,814,326. Total expenses 4,856,982. Radio station: program service expenses 1,595,649. Management and general expenses 2,316,359. Fundraising expenses 358,295. Total expenses 4,270,303. Public relations: program service expenses 1,698,193. Management and general expenses 25,884. Fundraising expenses 918,656. Total expenses 2,642,733. Rivercourse: program service expenses 2,202,391. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,202,391. University equipment purchases: program service expenses 771,171. Management and general expenses 10,448. Fundraising expenses 457,883. Total expenses 1,239,502. Miscellaneous: program service expenses -365,888. Management and general expenses 914,220. Fundraising expenses 469,840. Total expenses 1,018,172. Maintenance: program service expenses 841,446. Management and general expenses 1,836. Fundraising expenses 2,929. Total expenses 846,211. Professional memberships: program service expenses 756,949. Management and general expenses 29,032. Fundraising expenses 36,828. Total expenses 822,809. Other equipment rentals: program service expenses 276,913. Management and general expenses 5,945. Fundraising expenses 133,168. Total expenses 416,026. Annuity giving: program service expenses 31,986. Management and general expenses 0. Fundraising expenses 0. Total expenses 31,986. Income tax benefit: program service expenses -185,546. Management and general expenses 0. Fundraising expenses 0. Total expenses -185,546.”

“Change in valuation of split interest agreements -10,946,854. Other adjustment -12,018.”

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

“A letter ruling was requested under sections 512 and 514 of the internal revenue code. The letter dated september 24, 2018 rules that reimbursement to the foundation from a donating charitbale trust of normal and customary management fees and other expenses shall not be treated as unrelated business income for purposes of section 512 or 514. Plr-114859-18”