North Campus - University Park Development Corporation

“Form 990 is prepared in collaboration with the cfo, the director of financial services and the avp of finance for the university. Once the return has been prepared by the external auditors and reviewed by internal staff, the return is given to the executive committee of the board of directors for their approval. The filed report is then scanned and made available to the public via a link on the university corporation's website.”

“To avoid conflicts of interest, strict rules apply to transactions in which both the organization and its directors or officers or their relatives have financial interests. To avoid personal liability and various penalties civil and criminal, each director is required to scrutinize any such transaction with particular care to assure that all applicable rules have definitely been satisfied. A director of a csu auxiliary may not be financially interested in a contract or other transaction with the auxiliary (self-dealing). Any such contract or transaction is void, unless the director's financial interest is remote; the financial transaction was adequately disclosed to the board; the director did not promote the transaction before the disclosure; the board approved the transaction without the vote of the interested director; and the deal was just and reasonable to the auxiliary at the time the board approved it. Generally, board approval must be obtained prior to consummating a self-dealing transaction or any part of it. The board must authorize the transaction in good faith, by a vote of a majority of the directors then in office without counting the vote of any interested director (although interested directors may be counted in determining the presence of a quorum at the meeting). Prior to the vote, the directors must have knowledge of the material facts concerning the transaction and the director's interest in the transaction. The board must consider, and in good faith determine after reasonable investigation under the circumstances, that the corporation could not have obtained a more advantageous arrangement with reasonable effort under the circumstances.”

“Bylaws, articles of incorporation, board meeting minutes, annual budgets, audited financial reports, and tax returns are posted on company website for public access.”

“The 65 acres of university-owned land ("north campus") on which the project is being developed are leased from the university. The corporation has set goals in the development of north campus, including establishing strong academic ties and academic facilities spanning a broad range of the university's colleges and departments, and ensuring a steady, predictable, and safe source of revenue with no financial risk to the university. Capital totaling $4.6 million to form and begin the project was contributed by watt industries. The second development is a faculty/staff housing project consisting of approximately 400 units. These units will be built in four phases on approximately 32 acres. The first phase will have 159 units and was scheduled to begin construction in the fall of 2010. As a result of real estate market conditions, the board of directors voted in january 2009 to suspend this project until such time as the project is financially viable.”

“Other fees: program service expenses 170,273. Management and general expenses 0. Fundraising expenses 0. Total expenses 170,273.”

“The process of overseeing the audit and selecting an independent accountant has not changed from the prior year.”