University Enterprises Inc.

“Uei's federal form 990 is prepared by certified public accounting firm, kcoe isom. This process includes a request for information from the organization, a compilation of data by the organization's management in the business services division (i.e. Finance director, controller, etc.), multiple layers of review by kcoe isom and review of the final return by the organization's management (executive director, finance director and controller). Review by the finance director and controller consists of tying out information on the final tax return to internal financial and corporate records to ensure accuracy as well as a comprehensive review of all other content. The executive director performs a higher level review for reasonableness of financial information and accuracy of corporate governance items. This review may include meetings with the finance director, controller or external tax preparers as needed. Prior to filing, an electronic version of the final federal form 990 is transmitted to all voting members of the board of directors via email. There are no formal procedures established for board review, and board review of the return is not required prior to filing. The executive director responds to any questions or comments from the board.”

“Annual signed conflict of interest forms are collected at the first board meeting of the year.”

“The executive director's compensation is set by the executive committee of the uei board of directors. Changes in compensation are also determined by the executive committee of the uei board of directors and are based upon annual performance evaluations. The chair of the board, who is also chair of the executive committee, consults with the chair of the personnel committee regarding ceo compensation and performance evaluations. Discussion and approval of ceo compensation is conducted in closed session of the full board of directors. Contemporaneous substantiation is included in personnel committee and/or board minutes. Biennial salary surveys that include ceo compensation for other csu auxiliary organizations are reviewed for comparison purposes.”

“Governing documents, conflict of interest policies and financial statements are available to the public upon request.”

“Cost of goods adjustment 8,291. Loss on sale of capital asset 187,803. Returns and allowances adjustment 707.”

“The oversight and processes in connection with the oversight of the audit of the financial statements and selection of an independent accountant have not changed from the prior year.”