2018-03-14T14:07:52-05:00 2017-06-30 346565596 ERNST & YOUNG US LLP 190 CARONDELET PLAZA SUITE 1300 CLAYTON MO 63105 990 2016-07-01 480547734 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION KANS 7858327400 PO BOX 928 LAWRENCE KS 660440928 JAMES G CLARKE TREASURER 7858327400 2018-03-14 1 JENNIFER L RICHTER P00366526 3142901000 198.248.88.151 2018-03-14 13:55:55 CD P 65972501C408EF7A97CEBBCAE7052A9B75CDC68F 65972501C408EF7A97CEBBCAE7052A9B75CDC68F 2016 2021-01-29 14:40:06Z KU ENDOWMENT DALE SEUFERLING PO BOX 928 LAWRENCE KS 660440928 267846884 0 X WWW.KUENDOWMENT.ORG X 1891 KS UNIVERSITY SUPPORT 11 10 302 71 -1962505 -2001584 140463369 119120542 2798109 311589 64859074 65270263 7817633 9311101 215938185 194013495 168795539 184233536 0 0 16780269 17538625 60369 8000 12665534 11699973 10959215 197336150 212739376 18602035 -18725881 1799843513 1888313784 112422803 110935377 1687420710 1777378407 X KU ENDOWMENT PARTNERS WITH DONORS IN PROVIDING PHILANTHROPIC SUPPORT TO BUILD A GREATER UNIVERSITY OF KANSAS. 0 0 33587274 33587274 STUDENT SUPPORT--VIRTUALLY ALL PRIVATELY FUNDED SCHOLARSHIPS, AWARDS AND FELLOWSHIPS PROVIDED BY KU COME FROM DONOR CONTRIBUTIONS TO KU ENDOWMENT. THIS YEAR, 88 NEW SCHOLARSHIPS WERE CREATED TO BENEFIT STUDENTS AND ABOUT 6,800 STUDENTS RECEIVED FINANCIAL ASSISTANCE FROM KU ENDOWMENT FUDS. 38622428 38622428 FACULTY SUPPORT INCLUDES OVER 200 NAMED, ENDOWED POSITIONS, INCLUDING 7 NEW PROFESSORSHIPS DURING THIS FISCAL YEAR. PRIVATE FUNDING AUGMENTS SALARIES AND SUPPORTS AWARDS, PROFESSIONAL TRAVEL AND PROFESSIONAL DEVELOPMENT. THIS SUPPORT IS INVALUABLE IN CREATING THE VIBRANT TEACHING AND RESEARCH ENVIRONMENT THAT ONE EXPECTS AT AN INTERNATIONAL RESEARCH UNIVERSITY. 49468264 49468264 6712639 SUPPORT FROM PRIVATE DONORS STRENGTHENS ACADEMIC PROGRAMS AND BRINGS TOP-FLIGHT SCHOLARS, THOUGHTFUL LECTURERS AND BREATHTAKING PERFORMANCES TO KU. IT ALSO EXPANDS THE SCOPE OF OUTREACH PROGRAMS THROUGHOUT THE STATE AND SUPPORTS VALUABLE ACQUISITIONS BY KU'S LIBRARIES AND MUSEUMS. 62555570 62555570 -1533668 FACILITIES SUPPORT--CONSTRUCTION, EQUIPMENT, SUPPLIES AND FURNISHINGS FUNDED BY PRIVATE GIVING. THIS AMOUNT FLUCTUATES FROM YEAR TO YEAR, DEPENDING ON THE TIMELINE OF CONSTRUCTION PROJECTS. THIS YEAR'S INVESTMENT WAS HIGHER THAN RECENT YEARS AS SEVERAL SIGNIFICANT PRIVATELY-FUNDED CONSTRUCTION PROJECTS ARE STILL ONGOING AT KU, INCLUDING CONSTRUCTION OF THE NEW EARTH, ENERGY, AND ENVIRONMENT CENTER AND THE RECENTLY COMPLETED RENOVATION OF THE SPENCER ART MUSEUM. MORE THAN TWO-THIRDS OF KANSAS UNIVERSITY BUILDINGS AND ABOUT 85% OF THE LAND AVAILABLE FOR CAMPUS EXPANSION WERE MADE POSSIBLE BY PRIVATE GIFTS. 62555570 62555570 -1533668 184233536 1 1 0 1 0 0 0 1 1 1 1 1 0 0 0 0 1 0 0 0 1 0 0 1 1 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 1 1166 0 1 302 1 1 1 0 0 0 0 1 1 0 0 0 0 X 11 10 1 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 AK CA KY MD MA MI MN NH NJ OH MO SC UT WA WV OK X X JAMES G CLARKE TREASURER 7858327400 1891 CONSTANT AVENUE LAWRENCE KS 660473743 DALE W SEUFERLING PRESIDENT 40.00 0.10 X X 468407 0 219311 D JEROME DAVIES SECRETARY/SVP DEVELOPMENT 40.00 0.10 X X 262029 0 79689 JAMES G CLARKE TREASURER/SVP FINANCE 40.00 0.10 X X 260443 0 35016 JOHN B DICUS EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 DAVID B DILLON VICE CHAIR-STARTING OCT '16, EXEC COMMITTEE 4.00 0.00 X 0 0 0 WILLIAM R DOCKING EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 CHARLES E HEATH VICE CHAIR-ENDING OCT '16, EXEC COMMITTEE 3.00 0.10 X 0 0 0 A DRUE JENNINGS EXEC COMMITTEE-VOLUNTEER 3.00 0.00 X 0 0 0 MD MICHAELIS EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 LINDA ELLIS SIMS EXEC COMMITTEE-VOLUNTEER 4.00 0.10 X 0 0 0 STEVE SLOAN EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 TODD L SUTHERLAND EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 DEANELL REECE TACHA CHAIR, EXEC COMMITTEE 4.00 0.00 X 0 0 0 ROBERT D TAYLOR EXEC COMMITTEE-VOLUNTEER 4.00 0.10 X 0 0 0 KURT D WATSON EXEC COMMITTEE-VOLUNTEER 4.00 0.10 X 0 0 0 REBECCA L BLAESING VP MEDICAL DEVELOPMENT 40.00 0.00 X 182556 0 44803 CLARK CROPP SVP ADMINISTRATION & COO 40.00 0.00 X 204692 0 111975 JAMES R MECHLER ASSOC SVP DEVELOPMENT 40.00 0.00 X 201913 0 67572 WILLIAM S GREEN SVP INFORMATION SYSTEMS 40.00 0.00 X 172708 0 62809 ROSITA ELIZALDE-MCCOY SVP COMMUNICATIONS & MKTG 40.00 0.00 X 152597 0 58090 STACY NUSS VP INVESTMENT & ASST TREASURER 40.00 0.00 X 152538 0 37635 2057883 0 716900 27 0 1 0 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 02110 INVESTMENT CONSULTING 2045040 ROPES AND GRAY LLP PO BOX 414265 BOSTON MA 02241 LEGAL SERVICES 1030235 PEI COBB FREED AND PARTNERS 88 PINE STREET NEW YORK NY 10005 ARCHITECTURE 467994 LATHROP AND GAGE LLP 2345 GRAND BLVD STE 2800 KANSAS CITY MO 64108 LEGAL SERVICES 366098 1607 CAPITAL PARTNERS LLC 13 S 13TH ST STE 400 RICHMOND VA 23219 INVESTMENT MANAGEMENT 328915 9 20636087 173271 21022473 77288711 10169475 119120542 LOAN INTEREST 522200 1845257 1845257 APARTMENT RENTALS 531110 899553 899553 BUILDING LEASE 531120 247000 247000 OTHER REAL ESTATE 531390 -2680221 -2680221 311589 18332351 1753992 -1985406 18563765 566534 566534 118754464 924122 71844359 896315 46910105 27807 46937912 46937912 5731421 20636087 1092715 4638706 4638706 OTHER RECEIPTS 900099 3113390 3113390 AGRICULTURE 110000 969570 969570 OIL & GAS EXTRACTION 211110 22901 22901 4105861 194013495 5178971 -1962505 71676487 184233536 184233536 1647543 1045530 602013 11367739 4274877 7092862 2467619 833562 1634057 1144263 527170 617093 911461 403278 508183 229516 142649 86867 187148 187148 8000 8000 5791709 5791709 314389 127697 186692 578414 22671 555743 760361 223406 536955 120560 119644 916 252975 218902 34073 138032 101640 36392 766042 98773 667269 125827 62719 63108 1455375 1441698 13677 135678 130072 5606 LOAN COMMISSIONS 52444 52444 DUES 33438 19564 13874 EQUIPMENT & FURNISHINGS 10204 8050 2154 UNRELATED BUSINESS TAX 7103 7103 212739376 184233536 15840306 12665534 11788895 8531160 95688470 54818110 87687279 60750946 24013708 3386650 56229865 13753014 44128730 42476851 768703301 828428046 685895942 806892983 30391203 28824751 51545985 54204287 1799843513 1888313784 46654592 44362861 65768211 66572516 112422803 110935377 X 165265993 181854079 1082707082 1142791851 439447635 452732477 1687420710 1777378407 1799843513 1888313784 X -18725881 104581291 4102287 X 0 1 X 1 0 X 138630627 186410633 190025615 140463369 119120542 774650786 138630627 186410633 190025615 140463369 119120542 774650786 67368186 707282600 29024307 23410494 29408360 26796443 25831290 134470894 -212239 -1061458 -982502 -457644 -1962505 -4676348 904445332 42694110 0.78200 0.77500 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 0 0 0 0 184233536 184489807 184233536 184489807 1000000 1000000 250000 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 250000 250000 250000 250000 1000000 1500000 0 676882 X X X X 0 0 1 X 1005225165 31843857 104544238 14915652 20899975 1105797633 1020215390 34212862 -14895996 14903301 19403790 1005225165 980592275 74913454 -1631054 14750171 18909114 1020215390 859882814 26053312 126579227 14120401 17802728 980592275 788414325 29680270 70848569 12922126 16138224 859882814 0.00280 0.36450 0.63280 0 0 13191667 13753240 26944907 26159930 11578722 14581208 3095923 2174292 921631 29105 29105 42476851 HEDGE FUNDS 488852464 F OTHER LLC'S AND LLP'S 69454566 F PRIVATE INVESTMENTS 246728623 F REAL EST,ROYALTY,&MINERAL INTERESTS 1857330 F 806892983 295236224 104581291 1679822 106261113 188975111 5038384 5038384 194013495 205278527 -2422465 -2422465 207700992 5038384 5038384 212739376 PART III, LINE 4: OVER THE YEARS, DONORS HAVE GIVEN IN-KIND GIFTS OF ART AND LIBRARY COLLECTIONS, OR HAVE ESTABLISHED FUNDS FOR THE PURPOSE OF PURCHASING SUCH ITEMS FOR THE MUSEUMS, LIBRARIES AND TEACHING FACILITIES OF THE UNIVERSITY OF KANSAS. SUCH GIFTS ARE ADMINISTERED BY KU ENDOWMENT IN ACCORDANCE WITH ANY APPROPRIATE DONOR RESTRICTIONS THAT MAY BE PLACED UPON THE GIFT. PART IV, LINE 2B: KU ENDOWMENT HOLDS CERTAIN ENDOWMENT AND OTHER FUNDS ON BEHALF OF AFFILIATES OF THE UNIVERSITY AND OTHER THIRD PARTIES. PART V, LINE 4: ENDOWMENT FUNDS CONSIST OF APPROXIMATELY 3,394 INDIVIDUAL FUND ACCOUNTS ESTABLISHED TO PROVIDE SUPPORT FOR A VARIETY OF UNIVERSITY PROGRAMS ACROSS GENERATIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF LIFE INCOME GIFTS 411,184. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND -77,475. FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 1,092,715. CHANGE IN VALUE OF LIFE INSURANCE CASH VALUE 253,398. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 1,092,715. AMORTIZATION OF PENSION ADJUSTMENTS -3,515,180. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 INVESTMENTS 352564000 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 INVESTMENTS 2745000 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 FUNDRAISINGFUNDRAISING 3000 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 FUNDRAISING 5000 0 0 0 0 0 0 355317000 0 355317000 1 0 0 0 1 0 SCHEDULE F, PART I, LINE 3: THE AMOUNT FOR "INVESTMENTS" REPRESENTS THE TOTAL BOOK VALUE OF ALL INVESTMENTS IN THE REGION AS OF JUNE 30, 2017. SUCH INVESTMENTS BY THE ORGANIZATION ARE PASSIVE AND DO NOT CONSTITUTE ANY ACTIVITY RELATED TO THE ORGANIZATION'S PROGRAM SERVICES. INCOME FROM THESE HOLDINGS ARE REPORTED NET OF RELATED INVESTMENT EXPENSES, WHICH ARE DISCLOSED AS A NOTE TO THE AUDITED FINANCIAL STATEMENT. X X X X X X X 1 GRENZEBACH GLIER AND ASSOCIATES INC 401 N MICHIGAN AVE CHICAGO IL 60611 FUNDRAISING CONSULTING AND ANALYSIS 0 0 8000 -8000 8000 -8000 AK AZ AR CA CO CT HI LA ME MD MA MI MN MS MO NH NJ NY NC OH OK OR SC VA WA WV UT KY 20% OF RIGHT TO PURCHASE TICKETS 23531742 18825394 4706348 CANCER CENTER BENEFIT DINNER 2081816 1372060 709756 1744 138892 437264 181102 18 753950 438633 315317 1434 35484 157953 32000 106842 26367508 20636087 5731421 1434 37228 296845 469264 287944 1092715 4638706 1 THE UNIVERSITY OF KANSAS STRONG HALL 1450 JAYHAWK BLVD LAWRENCE KS 66045 486029925 SECTION 115 178090658 0 STUDENT SCHOLARSHIPS AND FELLOWSHIPS, STUDENT AND FACULTY AWARDS AND PRIZES, FACULTY AND STAFF SALARY SUPPORT, GENERAL PROGRAM AND EDUCATIONAL SUPPORT, AND FACILITIES SUPPORT. THE KANSAS UNIVERSITY ALUMNI ASSOCIATION 1266 OREAD AVENUE LAWRENCE KS 66045 480291250 501(C)(3) 2046129 0 GENERAL SUPPORT TO FURTHER THE MISSION OF THE ALUMNI ASSOCIATION TO INFORM, ENGAGE, AND MOBILIZE THE KU COMMUNITY. THE UNIVERSITY OF KANSAS HOSPITAL AUTHORITY 3901 RAINBOW BLVD KANSAS CITY KS 66160 481202402 SECTION 115 4096749 0 SALARY AND FACILITY SUPPORT FOR THE UNIVERSITY OF KANSAS HOSPITAL. 3 0 PART I, LINE 2: MANY DISBURSEMENTS IN FURTHERANCE OF THE ORGANIZATION'S EXEMPT PROGRAMS ARE MADE FOR UNIVERSITY OF KANSAS STUDENT SCHOLARSHIPS OR FOR UNIVERSITY EMPLOYEE SALARIES AND SIMILAR EXPENSES WHICH ARE DISBURSED DIRECTLY TO THE UNIVERSITY, AND WHICH ARE INCURRED DIRECTLY IN THE ACTIVE CONDUCT OF ACTIVITIES CONSTITUTING THE EXEMPT PURPOSE OR FUNCTION FOR WHICH THE ORGANIZATION IS ORGANIZED AND OPERATED. OTHER DISBURSEMENTS IN FURTHERANCE OF THE ORGANIZATION'S EXEMPT PROGRAMS ARE MADE FOR THE DIRECT BENEFIT OF THE UNIVERSITY OF KANSAS, IN ACCORDANCE WITH ACCOUNTABLE PLAN PROCEDURES AND ARE SUBJECT TO CONDITIONS ESTABLISHED BY THE ORGANIZATION'S GOVERNING BOARD DESIGNED TO ENSURE THAT INDIVIDUALS AND ORGANIZATIONS RECEIVING DISBURSEMENTS FROM THE ORGANIZATION IN FURTHERANCE OF ITS EXEMPT PROGRAMS ARE ADEQUATELY INVESTIGATED TO ENSURE THAT THEY ARE QUALIFYING RECIPIENTS. STUDENTS RECEIVING SCHOLARSHIPS AND FELLOWSHIPS ARE JUDGED WORTHY BY THE UNIVERSITY'S ASSESSMENT ON THE BASIS OF ACADEMIC ACHIEVEMENT, FINANCIAL NEED AND SIMILAR STANDARDS, IN ACCORDANCE WITH APPLICABLE GIFT INSTRUMENTS. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 DALE W SEUFERLING PRESIDENT 418407 0 50000 0 0 0 206407 0 12904 0 687718 0 0 0 D JEROME DAVIES SECRETARY/SVP DEVELOPMENT 242029 0 20000 0 0 0 66870 0 12819 0 341718 0 0 0 JAMES G CLARKE TREASURER/SVP FINANCE 252943 0 7500 0 0 0 34228 0 788 0 295459 0 0 0 REBECCA L BLAESING VP MEDICAL DEVELOPMENT 177556 0 5000 0 0 0 44260 0 543 0 227359 0 0 0 CLARK CROPP SVP ADMINISTRATION & COO 204442 0 250 0 0 0 101937 0 10038 0 316667 0 0 0 JAMES R MECHLER ASSOC SVP DEVELOPMENT 186913 0 15000 0 0 0 54903 0 12669 0 269485 0 0 0 WILLIAM S GREEN SVP INFORMATION SYSTEMS 172458 0 250 0 0 0 56431 0 6378 0 235517 0 0 0 ROSITA ELIZALDE-MCCOY SVP COMMUNICATIONS & MKTG 142597 0 10000 0 0 0 48326 0 9764 0 210687 0 0 0 STACY NUSS VP INVESTMENT & ASST TREASURER 142538 0 10000 0 0 0 37189 0 446 0 190173 0 0 0 PART I, LINE 1A REGARDING TRAVEL FOR COMPANIONS, KU ENDOWMENT'S WRITTEN GUIDELINES ARE AS FOLLOWS: "FOR SPOUSE EXPENSES TO BE REIMBURSABLE, THE EXPENSE MUST BE REQUIRED BY YOUR SUPERVISOR AND IT IS EXPECTED THAT THE EVENT IN WHICH YOUR SPOUSE IS INCLUDED WILL INCLUDE SPOUSES OF GUESTS, AND BOTH REQUIREMENTS SHOULD BE STATED ON THE REIMBURSEMENT REQUEST." IN KEEPING WITH THIS POLICY, TRAVEL EXPENSES WERE REIMBURSED, AND NOT TREATED AS COMPENSATION, FOR A SPOUSE TO ACCOMPANY AN OFFICER TO ASSIST IN A VOLUNTEER CAPACITY WITH DONOR DEVELOPMENT AT SEVERAL EVENTS, WHICH ALSO REQUIRED ATTENDANCE BY THE OFFICER. COUNTRY CLUB DUES WERE PAID ON BEHALF OF TWO OFFICERS AND ONE HIGHLY COMPENSATED EMPLOYEE TO PROMOTE FUNDRAISING EFFORTS. THESE AMOUNTS ARE TREATED AS COMPENSATION TO THESE EMPLOYEES. PART I, LINE 4B TWO OFFICERS MEET THE CRITERIA TO PARTICIPATE IN THE NONQUALIFIED RETIREMENT PLAN AS OF THE PARTICIPANT'S NORMAL RETIREMENT DATE, SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. THE AMOUNT INCLUDED IN COLUMN (C) AS DEFERRED COMPENSATION ATTRIBUTABLE TO THE NONQUALIFIED RETIREMENT PLAN FOR DALE W. SEUFERLING IS $178,210, AND FOR D. JEROME DAVIES IS $4,041. PART I, LINE 7 THREE OFFICERS, ONE KEY EMPLOYEEE, AND FIVE "HIGHEST COMPENSATED EMPLOYEES" RECEIVED A BONUS PAYMENT THAT RESULTED FROM KU ENDOWMENT'S ANNUAL REVIEW OF ALL EMPLOYEE'S COMPENSATION. THE BONUS WAS FOR EXEMPLARY SERVICE DURING THE YEAR AND AS PART OF THE CONCLUSION OF THE CAMPAIGN WHICH WAS CONDUCTED OVER AN 8-YEAR PERIOD. THE BONUS PAYMENTS WERE APPROVED BY THE EXECUTIVE STAFF COMPENSATION COMMITTEE, AND THAT, WHEN COMBINED WITH EACH EMPLOYEES' REGULAR COMPENSATION, IS WITHIN THE BENCHMARK RANGE OF COMPARABLE SALARIES FOR EACH POSITION WITHIN KU ENDOWMENT'S MARKET PEERS. KURT D WATSON EXECUTIVE COMMITTEE OF KU ENDOWMENT 302323 SEE PART V - KURT WATSON IS PRESIDENT OF THE IMA FINANCIAL GROUP, WHICH RECEIVES FEES AS AN INSURANCE CONSULTANT AND BROKER. THE TRANSACTIONS ARE CONDUCTED AT ARM'S LENGTH AND APPROVED BY EXECUTIVE STAFF BASED ON AUTHORITY FROM THE EXECUTIVE COMMITTEE. 0 X 320 10048137 FMV X 4 99735 FMV (SAME AS PROCEEDS) X 2 21603 MARKET COMPARABLES 2 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF DONORS FORM 990, PART VI, SECTION A, LINE 2 M.D. MICHAELIS, ROBERT TAYLOR, AND KURT WATSON HAVE A BUSINESS RELATIONSHIP. ALSO, ROBERT TAYLOR, JOHN DICUS, DAVID DILLON, AND M.D. MICHAELIS HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 7A THE BYLAWS OF THE ORGANIZATION PROVIDE FOR A BOARD OF TRUSTEES TO BE COMPRISED OF 50 TO 75 MEMBERS, NONE OF WHICH RECEIVE COMPENSATION FOR THEIR POSITION AS TRUSTEE. THE BOARD OF TRUSTEES ARE RESERVED A LIMITED NUMBER OF POWERS WHICH INCLUDE: 1.) ELECTION OR REMOVAL OR TO FILL VACANCIES IN THE EXECUTIVE COMMITTEE; AND 2.) ELECTION OF THE CHAIR OF THE EXECUTIVE COMMITTEE. THE OTHER POWERS PROVIDED TO THE MEMBERS OF THE BOARD OF TRUSTEES ARE OUTLINED IN THE EXPLANATION TO QUESTION 7B BELOW. FORM 990, PART VI, SECTION A, LINE 7B THE LIMITED POWERS OF THE MEMBERS OF THE BOARD OF TRUSTEES OF THE ORGANIZATION ALSO INCLUDE: 1.) ELECTION OR REMOVAL OR TO FILL VACANCIES OF THE MEMBERS OF THE BOARD OF TRUSTEES; 2.) CHANGE IN THE NUMBER OF MEMBERS OF THE BOARD OF TRUSTEES; 3.) AMENDMENT OF THE ARTICLES OF INCORPORATION; AND 4.) LIQUIDATION OR DISSOLUTION OF KU ENDOWMENT, OR DISPOSITION OF ALL, OR SUBSTANTIALLY ALL, OF THE ASSETS OF KU ENDOWMENT, OR ANY MERGER OF KU ENDOWMENT INTO OR WITH ANOTHER CORPORATION. THE BYLAWS DO NOT GRANT THE MEMBERS OF THE BOARD OF TRUSTEES ANY OTHER POWERS OTHER THAN THOSE INDICATED ABOVE. A FULL LIST OF THE MEMBERS OF THE BOARD OF TRUSTEES CAN BE FOUND ON THE ORGANIZATION'S WEBSITE: WWW.KUENDOWMENT.ORG FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS PREPARED INTERNALLY BY THE DIRECTOR, TAX, COMPLIANCE, AND OPERATIONS. AN INTERNAL REVIEW OF THE RETURN IS COMPLETED BY APPROPRIATE KU ENDOWMENT PERSONNEL. AN EXTERNAL TAX PREPARER THEN COMPLETES A REVIEW OF THE RETURN. A DRAFT COPY OF FORM 990 IS PROVIDED TO THE AUDIT COMMITTEE TO REVIEW AND RECOMMEND REVISIONS. ANY SUCH RECOMMENDATIONS ARE PROVIDED IN A TIMELY MANNER TO INCORPORATE THEM IN THE RETURN BEFORE TRANSMITTAL TO THE IRS. THE AUDIT COMMITTEE REVIEWS THE 990 ON BEHALF OF THE GOVERNING BODY (THE EXECUTIVE COMMITTEE) AND RECOMMENDS APPROVAL OF THE 990 BY THE EXECUTIVE COMMITTEE. THE FINAL VERSION OF THE 990 IS PLACED ON THE TRUSTEE INTRANET FOR THE EXECUTIVE COMMITTEE TO REVIEW PRIOR TO FILING. AFTER TRANSMITTAL OF THE FINAL RETURN TO THE IRS, A COPY OF THE RETURN IS PLACED ON THE ORGANIZATION'S PUBLIC WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL CONFLICT OF INTEREST DISCLOSURE IS REQUESTED FROM ALL CURRENT MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS AND EMPLOYEES. TO MONITOR AND ENFORCE COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY, THE FOLLOWING PROCEDURES HAVE BEEN ESTABLISHED: 1. DUTY TO DISCLOSE IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS OR HER FINANCIAL INTERESTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. 2. DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE PORTION OF THE TRUSTEE, EXECUTIVE COMMITTEE OR COMMITTEE MEETING DURING WHICH THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON BY THE REMAINING TRUSTEES, EXECUTIVE COMMITTEE MEMBERS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, WHICH OTHER TRUSTEES OR MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. 3. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST (A) THE TRUSTEES, EXECUTIVE COMMITTEE OR COMMITTEE, AS THE CASE MAY BE, SHALL COMPLY WITH ALL APPLICABLE LAWS AND KU ENDOWMENT POLICIES IN CONSIDERING A TRANSACTION OR ARRANGEMENT BETWEEN KU ENDOWMENT IN WHICH IT HAS BEEN DETERMINED THAT A CONFLICT OF INTEREST EXISTS. (B) AFTER EXERCISING ALL DUE DILIGENCE REQUIRED BY APPLICABLE LAW OR KU ENDOWMENT'S POLICIES AND ANY ADDITIONAL DUE DILIGENCE THAT MAY BE DEEMED APPROPRIATE UNDER THE CIRCUMSTANCES BY THE DISINTERESTED TRUSTEES, EXECUTIVE COMMITTEE MEMBERS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, THE EXECUTIVE COMMITTEE OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED MEMBERS WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT TAKING INTO ACCOUNT WHETHER THE TRANSACTION OR ARRANGEMENT IS IN KU ENDOWMENT'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO KU ENDOWMENT. 4. VIOLATIONS OF THE CONFLICT OF INTEREST POLICY (A) IF THE EXECUTIVE COMMITTEE OR A STANDING COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT A TRUSTEE HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE TRUSTEE OF THE BASIS FOR SUCH BELIEF AND AFFORD THE TRUSTEE AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. (B) IF, AFTER HEARING THE RESPONSE OF THE TRUSTEE AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE EXECUTIVE COMMITTEE OR A STANDING COMMITTEE DETERMINES THAT THE TRUSTEE HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF OFFICERS AND SUCH OTHER PERSONS AS DESIGNATED BY THE EXECUTIVE COMMITTEE SHALL BE DETERMINED BY THE COMPENSATION COMMITTEE AND BE CONFIRMED BY THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE MAY ADJUST COMPENSATION DETERMINED BY THE COMPENSATION COMMITTEE WHENEVER, IN ITS JUDGMENT, THE BEST INTERESTS OF KU ENDOWMENT WOULD BE SERVED THEREBY. A COMPENSATION COMMITTEE OF NOT LESS THAN FIVE NOR MORE THAN EIGHT TRUSTEES SHALL BE APPOINTED ANNUALLY BY THE CHAIR OF THE EXECUTIVE COMMITTEE. THE CHAIR OF THE EXECUTIVE COMMITTEE SHALL DESIGNATE ONE COMPENSATION COMMITTEE MEMBER AS CHAIR. A MAJORITY IN NUMBER OF THE COMMITTEE SHALL CONSTITUTE A QUORUM. THE COMPENSATION COMMITTEE MUST CONSIST OF INDIVIDUALS WHO (I) DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO COMPENSATION ARRANGEMENTS OR TRANSACTIONS; (II) HAVE OBTAINED AND RELIED UPON APPROPRIATE DATA AS TO COMPARABILITY PRIOR TO MAKING ANY DETERMINATION; AND (III) ADEQUATELY DOCUMENT THE BASIS FOR COMMITTEE DECISIONS CONCURRENTLY WITH MAKING DETERMINATIONS. THE COMMITTEE IS DIRECTED TO ACT IN A MANNER THAT WILL AVOID THE INTERMEDIATE SANCTIONS PROVISIONS OF THE INTERNAL REVENUE CODE. ITS DUTIES SHALL BE THE REVIEW, STUDY AND RECOMMENDATION OF REASONABLE AND NECESSARY COMPENSATION FOR OFFICERS AND EMPLOYEES OF KU ENDOWMENT AND ANY AND ALL SUCH ADDITIONAL FUNCTIONS AS MAY FROM TIME TO TIME BE DESIGNATED BY THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 18 KU ENDOWMENT WAS GRANTED AN EXEMPTION FROM FEDERAL INCOME TAX IN 1934, AND RECEIVED ADDITIONAL CONFIRMATIONS OF THIS EXEMPTION OVER THE YEARS, AND MOST RECENTLY ON OCTOBER 18, 2010. A COPY OF THE LATTER IS AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB, "RESOURCES," "FINANCIALS AND FORMS," "IRS DETERMINATION LETTER." FORM 990, PART VI, SECTION C, LINE 19 KU ENDOWMENT'S FINANCIAL STATEMENTS ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB "RESOURCES," "FINANCIALS AND FORMS," "2017 AUDIT REPORT." ALSO, A COPY OF THE ORGANIZATION'S CURRENTLY FILED FORM 990 IS AVAILABLE IN THE SAME LOCATION ON THE ORGANIZATION'S WEBSITE. SCHEDULE O OF THE FORM 990 PROVIDES A DESCRIPTION OF THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND CERTAIN OTHER ASPECTS OF ITS GOVERNING DOCUMENTS, SUCH AS TRUSTEE ELECTIONS AND VOTING POWERS. FORM 990, PART XI, LINE 9: AMORTIZATION OF PENSION ADJUSTMENTS 3,515,180. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND -77,475. CHANGE IN VALUE OF LIFE INCOME GIFTS 411,186. CHANGE IN VALUE OF LIFE INSURANCE 253,396. CWAPTS LLC PO BOX 928 LAWRENCE KS 660440928 453170274 RENTAL REAL ESTATE KS 218100 3084049 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION RGAPTS LLC PO BOX 928 LAWRENCE KS 660440928 461289542 RENTAL REAL ESTATE KS 182781 1390755 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION RCP LLC PO BOX 928 LAWRENCE KS 660440928 320392147 RENTAL REAL ESTATE KS -2681221 2744588 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION FOBN LLC PO BOX 928 LAWRENCE KS 660440928 262224126 RENTAL REAL ESTATE KS -14311 1 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION STADPKG LLC PO BOX 928 LAWRENCE KS 660440928 813579421 RENTAL REAL ESTATE KS 655737 100176 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION THE KU ENDOWMENT CHARITABLE GIFT FUND PO BOX 928 LAWRENCE KS 660440928 200317170 SUPPORT FOR KU ENDOWMENT AND 501(C)(3)'S NAMED IN GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 LEON KARELITZ CHARITABLE TRUST PO BOX 928 LAWRENCE KS 660440928 616400249 SUPPORT FOR KU ENDOWMENT PURSUANT TO GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 VIRGIL AND PAULINE BROWN MEMORIAL TRUST PO BOX 928 LAWRENCE KS 660440928 467074121 SUPPORT FOR KU ENDOWMENT PURSUANT TO GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 CHARITABLE REMAINDER TRUSTS (49) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION KS N/A T 0 CHARITABLE REMAINDER TRUST (1) SPLIT INTEREST TRUST PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION IL N/A T 0 CHARITABLE REMAINDER TRUSTS (3) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION MO N/A T 0 CHARITABLE REMAINDER TRUSTS (3) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION TX N/A T 0 CHARITABLE LEAD TRUSTS (1) SPLIT INTEREST TRUST PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION OH N/A T 0 AGNES LAURETTA MCCLAIR TEST TRUST C/O BNK OF AMERICA PO BOX 831041 DALLAS TX 75283 486126736 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 15853 825043 1.00000 0 MARY SELLARS FUND C/O BNK OF AMERICA PO BOX 831041 DALLAS TX 75283 486203686 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 1505 285643 1.00000 0 LORRAINE M LOVE CHARITABLE REMAINDER UNITRUST PO BOX 700 JUNCTION CITY KS 66441 481247473 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 6009 107184 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 THE KU ENDOWMENT CHARITABLE GIFT FUND C 105792 CASH THE KU ENDOWMENT CHARITABLE GIFT FUND PO BOX 928 LAWRENCE KS 660440928 200317170 0 0 0 188792 188792 37758 9440 0 0 0 LEON KARELITZ CHARITABLE TRUST PO BOX 928 LAWRENCE KS 660440928 616400249 0 0 0 26082 26082 5216 1304 0 0 0 VIRGIL AND PAULINE BROWN MEMORIAL TRUST PO BOX 928 LAWRENCE KS 660440928 467074121 0 0 0 41397 41397 8279 2070 0 0 0