U C San Diego Foundation

“Form 990 review process the 990 form was reviewed by the audit committee of the foundations board. During such review, the committee had the opportunity to ask questions of accounting staff and the accounting firm preparing the return. The form 990 was then provided to the full board of trustees prior to filing.”

“Explanation of monitoring and enforcement of conflicts the uc san diego foundation requires a conflict of interest certification form from each trustee annually which discloses potential conflicts or lack thereof. The replies are reviewed by the corporate secretary and chief financial officer. If a conflict does exist, the impacted trustee recuses themselves from voting on that matter. Chair c. Chang's spouse is a ucsd employee. Part vi, line 1b non independent board members r. Dynes, former chancellor of uc san diego, has a continuing direct relationship with uc san diego. He is president emeritus of the university of california system and serves as a professor of physics at uc san diego. He is not compensated for any services provided to uc san diego or the uc san diego foundation. Form 990, part vi, line 2 family or business relationship trustees g. Jacobs and j. Krinsk have a business relationship with trustee m. Peterson. Trustees r. Marren, d. Bingham, and s. Hart have a business relationship with trustee c. Weil.”

“Other organization documents publicly available financial statements, articles of incorporation, bylaws and conflict of interest policies are available on the foundations website. Form 990, part vii, line 1a (47) drew hunsinger, vice president effective 1/30/2017, did not receive compensation during the 2016 calendar year.”

“Explanatory information related to ucsd foundation structure the uc san diego foundation is organized and operated solely for the support of the university of california, san diego campus. Employees, salary and benefits: all compensation reported in the form 990 and supporting schedules is on a calendar year basis pursuant to the instructions to form 990. All uc san diego foundation staff are employees of the university of california and receive salary and benefits from the university. Compensation decisions for all employees are made by the university of california following the university's established policies. All compensated individuals listed in part vii of the form 990 are full time employees of the university. The hours disclosed are the estimated hours the employee spends solely on foundation business. Uc san diego foundation employees are also eligible to participate in the uc retirement 403(b) and 457(b) plans which are managed by the regents of the university of california. Form 990, part viii, line 1 contribution revenue the uc san diego foundation solicits gifts in conjunction with the development office of the uc san diego campus, its faculty, and its volunteers. The uc san diego foundation is the primary recipient of donations received to support uc san diego. Gifts processed by the uc san diego foundation include 100% tax deductible donations plus membership and special event proceeds in which a portion of the contributions received may include quid pro quo items. The foundation discloses the value of any benefits returned to donors for their contributions both at the time of solicitation and on the written acknowledgement.”

“Grants to campus per university of california system wide policies, contributions and endowment payouts received by campus foundations must be expended for the purpose given directly by the campus and not by the campus foundation. Accordingly, contributions and endowment payouts are transferred to the uc san diego campus as grants, when requested by the benefiting campus unit, or by the la jolla playhouse for its joint programs with uc san diego. The campus then expends the funds for the purposes the gifts were given, such as scholarships and fellowships, research, special event costs, etc. Therefore, all expenditures of gift funds are incurred by the campus within the universitys accounting system and are not reflected on the foundations accounting record.”

“Operating expenses the total uc san diego foundation operating costs, including imputed facility costs, are shown on schedule a part ii section a line 3. The uc san diego foundations operating costs, space and facility needs are provided by the uc san diego campus, as its primary supporting organization in compliance with university of california policy. The foundation has an agreement with the campus to ensure that the campus has resources to provide for the foundations operating costs. The foundation grants the investment income from its current use funds to the campus annually for this purpose. Any excess income is used by the campus to cover other fundraising costs.”

“Other changes in net assets or fund balances this value (-$201,016) reflects the change in actuarial value of the various charitable remainder trusts and charitable gift annuities for which the foundation serves as trustee.”