Arizona State University Research Park Inc.

“The organization contracts with a management company (ags, llc) to provide management services for the research park. Services provided are in accordance with the asset management and property management agreements, and include accounting services, on-site management oversight, coordination of vendors, leasing and marketing.”

“The by-laws of the organization prescribe that a minority of the board of directors shall be university members appointed by the president of arizona state university.”

“Arizona state university approves the budget and the sale of assets for the organization.”

“Joanne wamsley, vice president for finance and deputy treasurer for arizona state university, and susan fisher, corporate controller for sunbelt holdings, an affiliate of ags, llc., will each review the draft return. After the initial review, a draft copy of the tax return will be sent to the board of directors prior to filing the return.”

“Corporate officers and employees must be aware of and identify circumstances under which the research park's actions might affect them or their relatives. They must disclose situations in which conflicts of interest might affect them or their relatives and must disclose situations in which conflicts of interest exist and refrain from any participation in the decision making process for that transaction. They must make known these conflicts of interests in the official records of the research park. Corporate officers and employees are included in the conflict of interest policy. Corporate officers include all elected and appointed officers of asurp, directors, members of the advisory committees, boards and councils. Employees are persons employed by asurp on a full time, part time or contract basis. For purposes of this policy only, the research park asset manager shall also be deemed an employee.”

“These salaries are determined by the university in adherance with policies of the university and applicable university governance.”

“Governing documents, conflict of interest policy and financial statements are available upon request.”

“Because five of the voting members of the governing body are employed by arizona state university, they are not considered to be independent.”

“Arizona state university research park has no employees and does not compensate their directors or officers. Ags, llc (see page 8, part vii, section b) is paid for property management, management services and accounting services. The compensation reported for 5 of the officers and directors represent amounts paid to them by arizona state university (asu) for their services rendered to asu, a related tax-exempt organization, see schedule r.”

“The property manager, ags, llc, is responsible for the oversight of the audit and review of the financial statements. Arizona state university's vice president for finance and deputy treasurer, joanne wamsley, is available for guidance. Joanne wamsley also reviews the audited financial statements. The selection of an independent accountant is done by arizona state university through an audit selection committee. Every five years, the audit selection committee asks several independent accounting firms to bid on the audit of arizona state university's affiliated entities. A few firms are awarded positions in the pool, which are qualified to perform audits for the affiliated entities. The affiliated entities may choose any firm in the pool. If the affiliated entities want to contract audit services to a firm not in the pool, arizona state university must first approve the firm. There has been no change in this process during the current tax year.”