Claremont Mckenna College

“Henry R. Kravis and George R. Roberts are Trustee members and have both a family and business relationship.”

“The organization filed amended and restated bylaws to clarify the number, composition, authority and duties of the organization's voting members, detail the responsibilities of the organization's committees, explain the composition and function of the faculty, add provisions regarding interested party transactions, and to add an emergency provision in the event that a quorum cannot be convened.”

“The College utilizes a process for review of the IRS Form 990, "Return of Organization Exempt from Income Tax", that involves multiple layers of management as well as governing board members. The College has engaged an outside accounting firm to prepare the Form 990 using information provided by the College's Treasurer's Office and the Claremont Colleges Services' Office of Financial Services. Once a draft has been prepared, it is reviewed by individuals in the Office of Financial Services, the Office of Human Resources, and the College's Treasurer's Office, and changes are made as needed. Once a revised draft is available, it is reviewed by the Controller, the Associate Vice President of Finance, and the Vice President of Business Chief Financial Officer and Treasurer. After this review and any resulting changes are complete, the revised draft is provided to members of the College's Audit Committee for questions and comments. Once questions and comments from the Audit Committee are fielded and issues resolved, the 990 is provided to all voting members of the Board of Trustees prior to filing.”

“Each year, all Interested Parties of the College are required to sign and submit to the Treasurer a full written disclosure of any transaction involving the College where the Interested Party has any financial or relationship interest in the transaction. The Treasurer creates a summary report of these disclosures for review by the Audit Committee. Throughout the year, any potential Interested Party Transaction is reviewed by the Interested Party Transactions Subcommittee of the Audit Committee, which ensures that i) the Interested Party does not unduly influence the approval of the transaction; ii) the transaction's terms are fair and reasonable, and iii) entering into the transaction is in the College's best interests.”

“The College's process for determining compensation for corporate officers, key employees, and principal disqualified persons is performed on an annual basis and includes the following elements: 1) use of data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated organizations, 2) review of comparable compensation data and approval of compensation arrangements by a Compensation Subcommittee of the Executive Committee of the Board of Trustees, and 3) contemporaneous documentation with respect to deliberations and decisions regarding compensation arrangements. Data as to comparable compensation is derived from one or more of the following sources: a) Information compiled from IRS Form 990 reports, b) other regional or national compensation surveys, including an annual compensation survey published by the College and University Professional Association for Human Resources, and c) external consultant surveys and/or databases, including prevailing market compensation for similar administrative positions in the greater Los Angeles area.”

“-Financial statements and conflict of interest policy are available on the College website. -Governing/organizing documents are not available to the public.”

“Actuarial adjustment 5,223,616. Income from K-1's -4,398. Writeoff of pledge receivables -2,573,692.”