Azusa Pacific University

“The governing body has delegated broad authority to the Executive Committee. The Executive Committee is composed of the Board Chair, Vice Chair, Secretary, and President, as well as 6 Trustees. The scope of the Executive Committee's authority may be found in the bylaws of APU. The bylaws state that, "The Executive Committee, to the extent provided in the Bylaws, shall have all the authority of the Board, except (a) The approval of any action for which the California Nonprofit Corporation Law also requires approval of the members or approval of a majority of all members; (b) The filling of vacancies on the Board or in any committee which has the authority of the Board; (c) The amendment or repeal of Bylaws or the adoption of the new Bylaws; (d) The amendment or repeal of any resolution of the Board, which by its express terms is not so amendable or repealable; (e) The appointment of Committees of the Board or the members thereof." All members of the Executive Committee are also members of the Board of Trustees”

“Part-Year President Jon Wallace and Executive Vice President David Bixby have a family relationship.”

“Form 990 is prepared by an independent CPA firm and reviewed in detail by the organization's top management. The reviewed Form 990 is then forwarded to the Board of Directors (with donor names and addresses redacted) for Board review prior to filing.”

“Annually, the Office of the General Counsel has all trustees, officers, and other key employees complete a conflict of interest questionnaire and the General Counsel addresses any disclosed conflicts of interest pursuant to the processes set forth in the University's Policy on Conflicts of Interest. All potential conflicts of interest by administrators, officers or trustees of the institution are brought to the attention of the Chairman of the Board of Trustees and General Counsel for resolution.”

“Any changes to the compensation of the University's CEO and executive officers is approved by the Board of Trustees based on market survey data. Periodically, the University retains the services of an independent compensation consultant to review the compensation of the CEO and executive officers and to report to the Board of Trustees. The compensation of other key employees is reviewed and approved by the executive officer or administrator to whom they report. The process and decisions are recorded for all compensated officers, trustees, and key employees.”

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

“Compensation reported in Part VII, column D and Schedule J, Part II, column B is the amount reported on the individual's W-2, box 1 or 5 (whichever amount is greater) per the IRS instructions. In the case of minister's compensation when box 5 of the W-2 is not applicable, box 1 compensation is used. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of Form W-2. For reporting purposes we have included the minister's retirement plan deferrals in Part VII, column F and Schedule J, Part II, column C.”

“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 06/30/2019. The 2018 Form 990 and its associated schedules were not been 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 $95,362,118 Line 29 - Net assets with donor restrictions 75,051,035 ____________ Total net assets $170,413,153”

“Amortization of Asset Retirement Obligation -52,497. Change in Value of Beneficial Trust -279,360. Change in Value of Split Interest Agreements 1,352,647. Unrealized Loss on Interest Rate Swap -3,419,558.”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant. This process has not changed since the prior year.”