2018-04-27T15:00:39-05:00 2017-06-30 390859910 Baker Tilly Virchow Krause LLP 125 Baylis Road Suite 300 Melville NY 11747 990 2016-07-01 112157078 DOWLING COLLEGE DOWL 2126580301 C/O Robert S Rosenfeld 49 Roy Ave Massapequa NY 11758 ROBERT ROSENFELD chief restructuring officer 2126580301 2018-04-27 1 Ellen M Labita CPA P00140777 6317527400 X 148.75.180.72 2018-04-27 12:19:31 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 45D50D8E3994CEF8BF8842BFE43A81B55B26F885 2016 2021-01-29 14:40:06Z ROBERT ROSENFELD C/O Robert S Rosenfeld 49 Roy Ave Massapequa NY 11758 3457920 0 X www.dowling.edu X 1968 NY Dowling College was an independent comprehensive educational institution in the liberal arts tradition whose mission was to provide our students with a well-rounded education based upon innovative teaching, informed and engaging research, and a commitment to democratic citizenship with a community service component. We fostered an open and supportive learning environment that was based upon collaboration between a committed and supportive expert faculty and a student body diverse in its interests, beliefs, culture, ethnicity, and geographic origin. We recognized learning as a lifetime endeavor, particularly as it relates to globalization. The College upheld its educational mission through teaching, learning and research in the arts, sciences and professions such as education, business and aviation, and by providing members of the community and Dowling alumni with opportunities for continuing education. 9 8 550 8 0 0 1351261 0 48937244 31379 41664 1261491 694886 926369 51025055 2219239 18417312 0 0 0 17543112 1318706 0 0 0 19263005 12430492 55223429 13749198 -4198374 -11529959 67750845 59166963 63866130 64193865 3884715 -5026902 X See Schedule O 0 1 28812 Instructional and academic support related directly to the educational process of the College. The College serves undergraduate, graduate, & postgraduate students. The College grants degrees and certifications to students through programs offered by its schools of Arts & Sciences, Business, Education, and Aviation. 2567 Auxiliary Enterprises-funds expended for furnishing living quarters and meal plans to students. 1 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 35 0 1 550 1 0 0 0 0 0 0 0 0 0 0 X 9 8 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 1 1 0 NY CA X Robert S Rosenfeld 2126580301 49 roy ave massapequa NY 11758 michael puorro Chairman 2.00 0.00 X X 0 0 0 gerald j Curtin Vice Chairman 2.00 0.00 X X 0 0 0 Patricia M Blake Trustee 2.00 0.00 X 0 0 0 Dennis O'Doherty trustee 2.00 0.00 X 0 0 0 jack o'connor trustee 2.00 0.00 X 0 0 0 Joseph K Posillico Trustee 2.00 0.00 X 0 0 0 ronald parr trustee 2.00 0.00 X 0 0 0 John Racanelli Trustee 2.00 0.00 X 0 0 0 Albert Inserra President 40.00 0.00 X X 151563 0 0 Ralph S Cerullo CFO & treasurer 40.00 0.00 X 226783 0 0 Anna Dimola HR/Secretary 40.00 0.00 X 87200 0 0 465546 0 0 2 0 1 0 RSR Consulting LLP 1330 Avenue of the Americas S23A new york NY 10017 restructuring services 1018070 arrow security 300 w main st smithtown NY 11787 security 975319 klestadt & winters LLP 570 FASHION AVE 17TH FL New york NY 10018 LEGAL 894473 Cohn Reznick LLP 4 Becker Farm Road roseland NJ 07068 ACCOUNTING 637436 Garden City Group LLC 1985 Marcus Avenue Suite 200 lake success NY 11042 legal 187560 5 Tuition & Fees 611600 28812 28812 Auxiliary Enterprises 531110 2567 2567 31379 19853 19853 1372511 455622 916889 916889 916889 2024697 783059 1241638 1241638 1241638 Other Revenue 900099 9480 9480 9480 2219239 40859 0 2178380 736327 736327 4564 4564 527675 527675 50140 50140 9747 9747 652451 652451 86698 86698 857433 857433 850 850 96045 96045 4994 4994 1755695 1755695 10846 10846 257 257 517961 517961 1039881 1039881 773142 773142 Bad Debt & Collection 2607188 2607188 Reorganization Costs 2374871 2374871 Outside Services 709673 709673 security 505010 505010 427750 427750 13749198 0 13749198 0 170225 1174015 3514940 2088137 0 960635 276725 1726189 1884348 2703774 94082 101588374 49857525 54569708 51730849 1939588 1691006 77649 2315938 67750845 59166963 8364048 11625033 2023715 45828 46675039 39431054 6757500 6757500 0 6380278 63866130 64193865 X -1242159 -5026902 3217303 0 1909571 0 3884715 -5026902 67750845 59166963 -11529959 141182 2477160 0 X X 0 0 1 0 X 2276271 7829 881500 1402600 2295235 7386 26350 2276271 2292291 7655 22742 27453 2295235 2149087 6904 149825 13525 2292291 2003260 16779 177448 48400 2149087 0.00000 0.83000 0.17000 0 0 8969774 8969774 78662061 41879354 36782707 13956539 7978171 5978368 51730849 DEBTOR IN POSSESSION Financing 4070730 ADVANCES FROM LENDERS 2309548 6380278 Part V, Line 4: Permanently restricted net assets represent endowment corpus, which provides investment income principally for student scholarships. Temporarily restricted net assets were primarily used for student scholarships. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 The College has a nondicriminatory policy stating that Dowling College does not discriminate on the basis of race, color, religion, national origin, citizenship, sex, sexual orientation, marital status, mental or physical disability, age, veteran/national guard or any other similarly protected status. Publication of Nondiscriminatory Policy in Media explanation in its program and activities. The policy is made known to our community through our catalog, website, and advertisements. Schedule E, Part I, Line 6 the college receives heop financial aid from the state of new york. X 1 0 X X 0 0 0 0 0 0 0 0 0 Albert Inserra President 148808 0 0 0 2755 0 0 0 0 0 151563 0 0 0 Ralph S Cerullo CFO & treasurer 226673 0 0 0 110 0 0 0 0 0 226783 0 0 0 Part I, Line 1b Dr. Inserra, an officer of the College, was provided with College owned housing, which he didn't use, as a condition of his contract. the college owned housing was valued at $36,000. A Industrial Development Agency 2006 112584714 864768MU7 2006-06-01 38910000 The Suffolk county IDA 0 0 0 A 5055000 40157820 2190377 4385310 15250000 17482290 2010 0 1 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 1 0 0 0 0 0 A 0 schedule k - purpose of issue description Industrial Development Agency 2006 Civic Facility Bonds for the purposes of providing funds to effect the (1) advance refunding of the 1993 $10,115,000 Civic Facility Revenue Bonds, (2) advance refunding of the 1994 $8,825,000 Civic Facility Revenue Bonds, (3) advance refunding of the U.S. Department of Housing and Urban Development Bonds, and (4) the construction of the Student Activity Center at the Brookhaven Campus and assorted capital projects at the Oakdale and Brookhaven Campuses. Schedule K - Date Rebate Computation Performed Industrial Development Agency 2006 06/01/15 Schedule K - Additional Information Industrial Development Agency 2006 The difference between issue price and total proceeds of issue is attributable to $1,247,820 of investment earnings. On an annual basis the College contracts the Arbitrage Group to perform an arbitrage rebate calculation for the Industrial Agency 2006 Bonds. The Arbitrage group determines if a rebate liability exists and if any filing is required with the IRS. Management monitors compliance with tax-exempt bond post-issuance requirements and contacts bond counsel should questions arise. Form 990, Part III, line 3 Dowling College ceased offering classes after the completion of the Spring semester ending May of 2016. The situation was created due to a declining enrollment that fell to a level which made normal operating cost unsustainable which additionally forced the accrediting agency "Middle States" to suspend Dowling's accreditation. The College subsequently filed for Chapter 11 bankruptcy protection in November of the same year. Form 990, Part VI, Section A, line 3 Robert S. Rosenfeld CRO; RSR Consulting, LLC (financial advisors) assumed responsibility as chief restructuring manager as of October 17, 2016 to June 30, 2017. Form 990, Part VI, Section B, line 11b Form 990 will be prepared by Baker Tilly, reviewed by Robert Rosenfeld & Ralph Cerullo and approved by the Dowling College Board of Trustees then returned to Baker Tilly for filing. Form 990, Part VI, Section B, line 12c Dowling College required all employees and Board of Trustees to complete annually a Conflict of Interest Disclosure form which was designed to provide a mechanism to insure that the College was aware of any potential conflicts of interest as well as to provide employees proper guidance from the Dowling College Committee on Ethical and Professional Conduct in compliance with the policy. The committee reviewed the disclosure forms and determined if no conflict of interest existed or if a conflict of interest did exist and if conditions or restrictions must be imposed. Form 990, Part VI, Section B, line 15 The compensation of the president of Dowling College was determined by the Dowling College Board of Trustees. Members of the Board determining compensation were independent, comparability data was utilized, and results were contemporaneously documented. The compensation of other officers of Dowling College were proposed by the executive management team then reviewed and approved by the Dowling College Board of Trustees. Members of the Board determining compensation were independent, comparability data was utilized, and results were contemporaneously documented. Form 990, Part VI, Section C, line 19 The College's 990 and Financial Statements are made available to the public upon request. Governing Documents and Conflict of Interest Policies are not made available to the public. Form 990, Part XII, Line 3b: The college fell under the requirements to undergo an audit as set forth in the Single Audit Act and OMB Circular Act A-133, but did not have the funds available to have the audit completed. Bankruptcy STATEMENT On November 29, 2016 (the "Petition Date"), the entity filed for protection from its creditors under Chapter 11, of the U.S. Bankruptcy Code (Case No. 16-75545 (REG)) (the "Debtor") in the Eastern District of New York. The Debtor has been winding down its operations and has significantly reduced its staff and resources. As a result, many of the Debtor's reporting and accounting functions have been significantly disrupted and delayed. Accordingly, the Debtor has not received or fully analyzed all of the potential sources of the information required in support of the information provided herein. While Debtor's management has made reasonable efforts to ensure that the Return is accurate and complete, based upon information that was available to them at the time of preparation, subsequent information may result in material changes to the enclosed information. The information provided was intended to fulfill the Debtor's obligation and we make no assertion as to the accuracy or completeness of such information. Moreover, because the Return contains unaudited information, which is subject to further review and potential adjustment, there can be no assurance that this information is complete. The Debtor reserves all rights to amend this Return, as may be necessary or appropriate. SINCE THE DEBTOR IS CURRENTLY IN A BANKRUPTCY PROCEEDING, ALL AMOUNTS REPORTED ON THE RETURN ARE SUBJECT TO THE ULTIMATE REALIZATION OF ASSETS RECOVERED THROUGH THE LIQUIDATION PROCESS AND LIABILITIES AUTHORIZED TO BE PAID PURSUANT TO THE ORDER OF THE COURT AND SUFFICIENT FUNDS RECOVERED FOR THE BANKRUPTCY ESTATE.