Howard Payne University

“The Executive Committee shall have all power and authority of the board, except as restricted by the bylaws. The Executive Committee consists of the President as an ex officio member, the Chairperson, the two Vice Chairpersons, Secretary of the board, the Chairperson of each standing committee and seven other board members. All business conducted by the Executive Committee is reported in full at the next regular board meeting.”

“The Baptist General Convention of Texas (BGCT), a related organization, nominates half plus one of the total trustees to the board.”

“The Form 990 is prepared by an independent CPA firm and is reviewed in detail by the CFO before it is provided to the board's finance committee. A full copy of the 990 is shared with the board prior to filing with the IRS.”

“The University maintains a board-adopted conflict of interest policy. Trustees and officers are required to annually disclose potential conflicts of interest. The University monitors and enforces compliance with the policy by publishing it on the employee intranet, limiting business dealings with related parties, and discouraging activities that might be perceived as a conflict of interest. The University business office and CFO are charged with monitoring and enforcing compliance with the policy. Should any potential conflicts of interest be disclosed, the board member or officer would be asked to refrain from participation in any deliberation or decision with regard to matters affected by the relationship.”

“The compensation for the University's President is recommended by a special committee consisting of independent members of the board of trustees. Years of experience, performance and the review of comparative data of similiar universities are taken into consideration when determining the President's compensation. The board deliberates regarding the President's compensation in executive session and this is recorded in the minutes. Compensation for other officers is established by the President, based on years of experience, performance, and comparable data of like positions in similar universities. Decisions are documented in the human resources files.”

“The University's primary governing documents are on file with the Texas Secretary of State and are publicly available. The University is not required to make its conflict of interest policy or financial statements publicly available.”

“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 5/31/19. The 2018 Form 990 and its associated schedules were not 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 $ 23,938,550 Line 29 - Net assets with donor restrictions $ 63,704,545 Total net assets $ 87,643,095”

“Change in value of perpetual trusts -749,805. Change in value of split interest agreements -47,570.”

“The board Finance Committee assumes responsibility for oversight of the audit of the University's financial statements and selection of an independent accountant. This process has not changed since the prior year.”