Berea College

“The executive committee shall consist of the chair of the board, the vice chair, and the chair of each standing committee provided for in section 12.1 of the by laws. The president of the college shall be an ex officio member without vote. It shall between meetings of the board have all the powers and duties of the board, except that the executive committee shall not have power to remove or elect a trustee or the president of the college. At each meeting of the board it shall submit a report of all actions taken by it since the preceding meeting of the board, and a summary of such report shall be recorded in the minutes of the board.”

“Form 990 is reviewed by a subcommittee appointed by the audit committee of the board of trustees. The review occurs in january and february of each year and includes at least one conference call for discussion. Form 990 is distributed to the full board of trustees prior to the filing date of the form 990.”

“Berea college (the college) maintains a conflict of interest policy applicable to trustees and institutional officers. All trustees and institutional officers receive copies of the policy and a disclosure statement on an annual basis. The disclosure statement must be completed by all trustees and officers regardless of the presence of a conflict. In addition to the annual disclosure, the policy requires the disclosure statement to be updated whenever the trustee or officer becomes aware of a new or anticipated conflict of interest transaction that has not been previously reported. Disclosure statements are forwarded by the vice president for finance to the president of the college and the chair of the audit committee of the board of trustees. Any conflict of interest transaction or other matter reported by a trustee or officer is then addressed in accordance with the policy. Any trustee or officer who has engaged in or anticipates a relationship or transaction constituting a conflict of interest transaction shall refrain from participating in consideration of any relationship or proposed transaction involving such conflict of interest transaction until the audit committee or board of trustees approves such participation in writing. A trustee involved with such a conflict of interest transaction shall not vote nor be present at the time of any vote by the board of trustees or any committee thereof concerning the relationship or transaction. An officer involved with such a conflict of interest transaction shall not exercise contract or supervisory authority concerning the particular relationship or transaction. A separate conflict of interest policy is applicable to all employees of the college. The policy is distributed to new employees upon hire and to all employees annually via e-mail. Any employee who has or whose relative has a substantial interest in a contract, sale, purchase or other transaction by or with the college must make known that interest on the appropriate disclosure form provided by the college. All completed disclosure forms are reviewed by the administrative committee of the college for determination of a conflict of interest. All instances reported are forwarded to the audit committee of the board of trustees for review.”

“President's compensation analysis and determination: in the spring of each year, a comparative analysis is prepared consisting of presidential and officer salaries and benefits at the college's frame of reference benchmark institutions comprised of 26 independent colleges and universities which have operational, programmatic and budgetary similarities to berea college. This information is compiled from data collected through the administrative compensation survey conducted annually by the college and university personnel association (cupa). Every four years, a separate survey is sent to the frame of reference institutions to gather additional information. An analysis is also prepared that compares the salaries of the college's president and other officers to those of a larger group (approximately 95 institutions) of independent, baccalaureate, general and liberal arts colleges and universities. Concurrently, the chair of the board undertakes an annual assessment of the president's performance. Every three to four years, the chair conducts a comprehensive evaluation of the president. The benchmark salary data is transmitted to the chair and the vice chair of the board of trustees. The president prepares a self-assessment that is discussed with the chair and shared with all members of the board of trustees. The chair then develops a recommendation concerning the president's salary and benefits in the context of the college's entire budget process using the above information along with historical salary and benefit data for the president and any other external resources that are available. The chair next reports to the executive committee (functioning as the compensation committee) of the board of trustees on the president's performance assessment and presents all of the benchmark and historical salary information, together with the chair's recommendation on the setting of the president's compensation for the coming year. The executive committee then reviews all of the foregoing information together with the chair's report and prepares its own recommendation. At its may meeting, in executive session, the board considers the chair's report concerning all of this information and the recommendation of the executive committee. Following discussion, the board adopts a resolution setting the president's new compensation levels for the next fiscal year, beginning on july 1st.”

“Compensation analysis and determination for the subordinate officers of the college: following the same timeline and utilizing the same comparative data outlined above, the president prepares compensation recommendations for the college's subordinate officers in the context of each officer's historical salary and benefit information and the president's assessment of each officer's performance during the preceding year. The president then meets with the chair and vice chair of the board to present the compensation recommendations for each officer. The president's assessment of each officer's performance as well as the comparative and historical salary and benefit information is shared with the chair and vice chair for review and possible adjustment in the context of the college's entire budget process. At each may meeting of the executive committee, the president presents compensation recommendations for each officer along with a summary of the comparative and historical information outlined above together with brief comments on each officer's performance. The executive committee discusses these recommendations and, by resolution, approves or modifies the president's recommendations. These recommendations, as approved by the executive committee, are then presented to the full board at its may meeting for final review and action.”

“The college's governing documents are available to the public upon request. The college's conflict of interest policy and financial statements are available via the website.”

“(continued form form 990, part iii, line 1) berea demonstrates what the world can be like when individuals live out a gospel of impartial love built upon a simple truth: god has made of one blood all peoples of the earth. Berea's primary service area is kentucky and the southern appalachian region, from which it draws 70-80 percent of its students. The balance come from 40 states and 60 countries, representing a rich diversity of colors, cultures, and faiths. About one in three students represents an ethnic minority. More than 50 percent of first-year students come from families where neither parent has a college degree. The cost of the full tuition scholarships is funded primarily from the spendable return on the college's endowment that funds between 70-75 percent of the net educational and general operating budget. Contributions from donors to berea's annual fund provide another 10 percent of the budget. In addition to the tuition scholarships for every student, berea college also provides institutional grant aid to assist students with housing, meals, books, and supplies. Nationally recognized for academics and for service-learning, berea offers rigorous undergraduate academic programs leading to bachelor of arts and bachelor of science degrees in 32 fields. As one of seven federally recognized work colleges in the united states, berea requires all students to work a minimum of ten hours per week. Students receive payment for their work that is used to help pay for housing, meals, books, and supplies. In an atmosphere of democratic living emphasizing the dignity of all work, berea students are employed in more than 120 areas on campus providing essential work to operate the college and in service jobs benefitting the wider community. Each student can learn useful skills and develop a strong work ethic that potential employers value. Berea college works diligently to shape educationally well-rounded, service-minded students who embrace their educational opportunity in order to serve their communities and the world. Berea college has been ranked by the washington monthly as one of the top three liberal arts colleges in america each year since 2011 for educating low-income students in a high-quality academic environment for lives of service to others. (for more information, visit the berea college web site at: www.berea.edu)”

“Change in annuity payment liability of annuity contracts - 301785; change in funds held in trust by others - 3031000; annuity payments - -1891624; interest rate swaps - -182000;”

“The college's audit committee of the board of trustees has responsibility for overseeing the audit and the selection of an independent accountant, subject to the approval of the full board of trustees.”

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