Southeastern University Inc.

“The Executive Committee shall consist of the Chair of the Board of Trustees, the Vice Chair of the Board of Trustees, the Secretary of the Board of Trustees, the President of Southeastern University, the Academic Affairs Committee Chair, the Finance and Audit Committee Chair, and up to three (3) trustees at large selected by the Board of Trustees. The at large members of the Executive Committee shall serve for one (1) year terms, and may be reelected with limits. The Chairs of the Board of Trustees shall serve as the Executive Committee Chair. The Executive Committee shall have delegated authority from the Board of Trustees to address routine business matters between regular board meetings and to assist the Chair of the Board of Trustees and the President in their joint responsibility to help the Board to function effectively and efficiently by suggesting board meeting agenda items and periodically assessing the quality of committee work. The Executive Committee shall have delegated authority to act for the Board of Trustees on all matters except for the following, which shall be reserved for the Board: election or removal of the President; election or removal of a member of the Board of Trustees or a Board officer; changes to the articles of incorporation or bylaws of the corporation; change of the University's mission; incurring of University indebtedness other than indebtedness in the ordinary course of business; sale of University assets or tangible property other than in the ordinary course of business; adoption of the annual budget; and conferral of degrees.”

“Dr. William Hackett, Provost and Dr. Chris Owen, Executive Vice President have a family relationship.”

“Form 990 is prepared by an independent CPA firm and reviewed in detail by the organization's top management. The reviewed Form 990 is then provided to the board of trustees electronically for review. The board of trustees is given a date by which to respond prior to filing with the IRS.”

“A conflict of interest exists when any board members and employees of Southeastern University has a relationship with, or engages in an activity with, any individual or organization which impairs or adversely influences his or her judgment with respect to policy promoting the best interest of Southeastern University or which impairs or adversely influences the performance of his or her duties to the University. A conflict of interest exists when a person benefits financially, either directly or indirectly, from his or her employment or appointment by the University except for compensation and financial benefits paid or granted by the University. All decisions of the board of trustees and administration of the University shall be made solely on the basis of a desire to promote the best interests of the University. In any case, where a conflict of interest exists, or may exist, or the appearance of a conflict of interest may exist, it shall be the duty of the person covered by the policy to disclose his or her interest, including any interest in the organization or entity which may benefit from the person's association with the University and including any such beneficial interest a member of the person's immediate family may have because of the person's association with the University. Persons who perceive the existence of a conflict of interest shall not endeavor to resolve the conflict or determine that the external benefits will not adversely affect the University; but shall make a full disclosure of the facts, circumstances, relationships and transaction as follows: 1. President shall report to the Board of Trustees. 2. Vice Presidents shall report to the President. 3. Other employees shall report to their respective Vice President. Persons covered by this policy are encouraged to avoid relationships and transactions which constitute a conflict of interest. When such situations cannot be avoided, the persons involved shall refrain from participating in consideration of the transaction affected by the conflict of interest, unless under special circumstances the University determines that their participation is imperative for the welfare of the University. If such a waiver is indicated, it shall be in writing and signed by the President and a copy of the waiver shall be provided to the Chairman of the Board of Trustees. Disclosure is also required concerning all relationships and business affiliations which reasonably could give rise to a conflict of interest involving the University. Such disclosure shall be continuously reported and kept current. The disclosures required under this policy statement shall be reported annually to the Finance & Audit Committee. The information disclosed shall be held in confidence except when, in the judgment of the Finance & Audit Committee, the best interests of the University would be served by disclosing the information to the board of trustees. Individuals who are deemed to be in a conflict of interest situation with respect to any matter before the administration or the Board shall refrain from participating in the consideration of the proposed transaction, unless specifically requested to provide information regarding the transaction in question. At the Board's discretion, the interested person may be required to leave the meeting during the discussion of, and vote on, the transaction or arrangement involving the possible conflict of interest. Such person shall not vote on or take any position for or against the proposed transaction. When deemed appropriate, a notation may be made in the minutes of the meeting that the person involved neither participated in the consideration of the proposed transaction nor voted on the matter.”

“The administration of wages and salaries functions under the direction of the Board of Trustees and the President of the University. The wage and salary plan is administered by the office of human resources and reviewed annually by the Finance & Audit Committee before presentation to the Board of Trustees for final approval. In reviewing the wage structure, consideration is given to the prevailing rates for comparable work in the Lakeland area, the current cost of living, salary levels of related organizations, and the economic condition of the University. The determination of the President's compensation is the responsibility of the Executive Committee which makes a recommendation to the Board of Trustees for final approval. The process includes a performance review and the study of comparable compensation data from peer institutions. In addition to the compensation factors described above, the recommendation for any particular year shall take into account regional economic information and the financial condition of the University. The Executive Committee and the Board of Trustees maintains a detailed record of the meetings and discussions relative to executive compensation. Meanwhile, the President recommends the compensation of other officer and key employees to the Executive Committee which makes the final determination. Information described in the determination of the President's compensation is also used for that of officers and key employees. This process includes regular review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision.”

“The governing documents, conflict of interest policy 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.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 5/31/2019. The 2018 Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $12,888,588 Line 29 - Net assets with donor restrictions $11,746,972 Total net assets $24,635,560”

“Change in interest rate swap -1,742,668.”

“The organization's Board assumes responsibility for oversight of the audit of its financial statements and selection of its independent accountant. This process has not changed since the prior year.”