Seattle University

“Trustee Rolfe, Trustee Trainer, and Trustee Wright each has a business or financial interest in an entity that owns or operates a mixed use structure on property leased from Seattle University and that provides housing opportunities for students and faculty.”

“Seattle University is a Washington nonprofit corporation governed by a Board of Trustees that is responsible for the overall management of the affairs of the University. As a nonprofit member corporation established under Washington state law, the University has a Board of Members. The University has seven members. Each member is required to be in good standing in the Society of Jesus. The seven members include the following: the Rector of the Seattle University Jesuit Community and six Jesuits from among those under contract at Seattle University. The President, Provost and any Vice President of Seattle University are ineligible to be a member. Members are elected by Jesuits currently under contract at Seattle University.”

“The bylaws for Seattle University require at least seven of the thirty-five Trustees belonging to the Society of Jesus, one of whom is the President of the University ex officio. These Jesuit Trustees are chosen by the Members. Any Trustees appointed by the Members may be removed from the governing board by the affirmative vote of two-thirds of all the Members. Any vacancies of Trustees originally appointed by the Members should be subsequently filled with another individual appointed by the Members.”

“The principal duty of the Members is to ensure furtherance of the work of Catholic higher education in accordance with the tradition sand ideals of the Society of Jesus. The power to alter, amend, or repeal the Articles of Incorporation or the Bylaws is reserved to the Members and must be exercised in accordance with the Bylaws. The Members may delegate this authority to the Board of Trustees in whole or in part. The Board of Trustees may not authorize the sale or lease of any corporate properties having a fair market value in excess of $300,000 without the written approval of a majority of the Members. Members, like Trustees, have a duty to conduct themselves in the best interests of the University consistent with the objectives and purposes of the University as stated in the Articles and Bylaws.”

“Each voting member of the Board of Trustees was provided with an electronic copy of Form 990 and supporting schedules prior to filing with the IRS. The Audit Committee of the Board met to review the form and schedules as well. The form and schedules were also reviewed by appropriate officers and management, including but not limited to the CFO/VP for Finance and Business Affairs, the Associate VP for Finance and Investments, the Executive Vice President, and University Counsel.”

“The Conflict of Interest Policy for Trustees is contained in the Bylaws of the University. Trustees are informed of this policy during Trustee orientation and the annual meeting. On an annual basis, each Trustee is asked to furnish a written statement indicating whether he or she is involved in any matter that poses an actual or potential conflict of interest. Trustees are expected to update the disclosure throughout the year as may be appropriate. After a trustee's disclosure of a potential financial or other conflict of interest, the chair of the Board of Trustees, in consultation with the University Counsel, determines whether the situation constitutes a conflict of interest requiring action by the Board. If the chair of the Board believes Board action is appropriate, the interested person must leave the Board meeting where the financial or other interest is discussed and voted upon, unless requested to stay either to respond to questions or provide information to the Board on the matter under discussion. The remaining board members decide if a conflict of interest exists and the appropriate course of action. Officers, key employees, faculty, and staff are covered by the University conflict of interest policy. Individuals are informed of this policy at the time of hire. The policy is contained in the Human Resources Policy Manual and is available to faculty and staff on the University's website. Upon identification of a potential conflict of interest, the matter is reviewed and evaluated by University officials and a determination is made regarding an appropriate action. The University has also adopted the Policy for Financial Conflict of Interest Disclosure and Management for Investigators in Externally Sponsored Programs in compliance with US Department of Health and Human Services regulations (42 CFR Part 50, Subpart F) and the financial conflict of interest policies of the National Science Foundation. Finally, the Office of Finance and Business Affairs, through the Office of the Controller, reviews carefully all proposed business transactions, expenditures, and requests for reimbursements to determine compliance with University policies, including those relating to conflict of interest.”

“The University's process for determining compensation for the president, officers, and key employees includes the following elements: (1) an authorized committee of the Board of Trustees composed entirely of individuals who are unrelated to, and not subject to, the control of disqualified persons involved in the compensation arrangement; (2) reliance on appropriate comparability data, including compensation levels paid by similarly situated organizations for functionally comparable positions; the location of the University, including the availability of similar specialties in the geographic area; independent compensation surveys by nationally-recognized independent firms; and written offers from similar institutions competing for the services of the disqualified person; and (3) documentation by the authorized body that adequately documents the basis for determination concurrent with making decisions regarding the compensation arrangement. The Executive Committee of the Board of Trustees serves as the compensation committee and follows this process annually. The compensation arrangement for the President, Provost, Executive Vice President, CFO, and other members of the Cabinet was most recently reviewed on April 23, 2016. Within the institution, appropriate comparability data is also obtained and reviewed for all other officers, key employees, and any other highly-compensated employees.”

“While applicable federal tax laws do not mandate that the University's governing documents, conflict of interest policy, and financial statements be made available for public inspection, the University makes each of the foregoing available on its website, www.seattleu.edu, or upon request.”

“Stephen V. Sundborg, SJ, Thomas M. Lucas, SJ, Patrick M. Kelly, SJ, Peter B Ely, SJ, and Eric Watson, SJ are members of the Society of Jesus who are employed by Seattle University. Each has assigned his gross salary and the dollar equivalent of his employee benefits to the Jesuit Community at Seattle University in accordance with article VI of the Bylaws of the University.”