2015-04-13T09:31:12-05:00 2014-05-31 620647474 BLACKBURN CHILDERS & STEAGALL PLC 801B SUNSET DRIVE JOHNSON CITY TN 37604 990 2013-06-01 581363100 KING UNIVERSITY KING 4236524718 1350 KING COLLEGE ROAD BRISTOL TN 37620 JAMES P DONAHUE VP FOR BUSINESS OPERATIONS/CFO 4236526002 2015-04-10 1 CHAD KISNER P00738241 4232824511 2015-04-06 2013 2016-02-25 16:41:14Z JAMES P DONAHUE 1350 KING COLLEGE ROAD BRISTOL TN 37620 48161787 0 X WWW.KING.EDU X 1867 TN OPERATION AND MAINTENANCE OF AN INSTITUTION OF HIGHER LEARNING. 18 18 865 50 0 0 1510402 2854332 39264663 42876999 5712245 2430456 285109 0 46772419 48161787 12775577 13292665 0 0 890119 20553185 0 0 663145 26499824 14342238 40165520 48188088 6606899 -26301 68054093 74053702 11695033 15445919 56359060 58607783 TO EDUCATE STUDENTS IN AN ACADEMICALLY RIGOROUS AND COLLEGEIATE SETTING THAT INTEGRATES CHRISTIAN FAITH, SCHOLARSHIP, SERVICE AND CAREER, LEADING TO MEANINGFUL LIVES OF ACHIEVEMENT AND CULTURAL TRANSFORMATION IN CHRIST. 0 0 35127108 13292665 42807008 OPERATION AND MAINTENANCE OF AN INSTITUTION OF HIGHER LEARNING. 35127108 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 1 3544 0 1 865 1 0 0 0 0 0 1 1 0 0 0 0 0 X 18 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 TN X LETTIE T JACKSON 4236524719 KING COLLEGE BUSINESS OFFICE 1350 BRISTOL TN 37620 MR WILLIAM G ADAMS CHAIR-06/01/13 TO 08/06/14 1.00 X X 0 0 0 DR RICHARD A RAY VICE-CHAIR-06/01/13 TO 02/16/14 1.00 X X 0 0 0 MR WILLIAM T BRYANT SECRETARY 1.00 X X 0 0 0 MR JAMES P DONAHUE TREASURER 1.00 X X 0 0 0 MR WILLIAM C ARGABRITE TRUSTEE 1.00 X 0 0 0 DR E NEAL CALDWELL TRUSTEE 1.00 X 0 0 0 MR DAVID A FLANIGAN JR TRUSTEE 1.00 X 0 0 0 MR BEN M FRIZZELL JR TRUSTEE 1.00 X 0 0 0 MR FRANK D GLASSCOCK TRUSTEE 1.00 X 0 0 0 MR ROBERT C HART TRUSTEE 1.00 X 0 0 0 DR WILLIAM D HEIZER II TRUSTEE 1.00 X 0 0 0 MR PETER HOLLER TRUSTEE 1.00 X 0 0 0 MR THEODORE M HUTCHESON JR TRUSTEE 1.00 X 0 0 0 DR JOSEPH THOMAS LEWIS TRUSTEE 1.00 X 0 0 0 DR J MILLER LISTON TRUSTEE EMERITUS 1.00 X 0 0 0 MR SCOTT MACLELLAN TRUSTEE 1.00 X 0 0 0 MRS ALDEN M MAIER TRUSTEE 1.00 X 0 0 0 MR WARREN PAYNE TRUSTEE 1.00 X 0 0 0 MRS MARCIA M PORTER TRUSTEE 1.00 X 0 0 0 MR H ALLEN ROES TRUSTEE 1.00 X 0 0 0 MR JOHN F SHOULDERS JR TRUSTEE 1.00 X 0 0 0 MR WILLIAM STRAUGHAN TRUSTEE 1.00 X 0 0 0 DR GREGORY D JORDAN-060113-0214 PRESIDENT 50.00 X 313944 0 42403 DR RICHARD A RAY-021714 TO 0531 INTERIM PRESIDENT 50.00 X 0 0 0 MR JAMES P DONAHUE VP FOR BUSINESS OPERATIONS, CFO 50.00 X 139972 0 45720 MR PAUL M PERCY-THRU 040913 VP FOR ACADEMIC AFFAIRS 50.00 X 87257 0 0 MRS LEANN HUGHES VP FOR MARKETING/DEVELOPME 50.00 X 104181 0 38370 MR ROBERT A LITTLETON VP FOR STUDENT AFFAIRS 50.00 X 82331 0 32834 MR JOHN W KING VP FOR ENROLLMENT MGMT/CDO 50.00 X 65391 0 38370 MRS JOHANNE QUINN DEAN OF NURSING 50.00 X 103385 0 3562 896461 0 201259 4 0 1 0 LEARNING HOUSE 427 SOUTH FOURTH STREET SUITE 300 LOUISVILLE KY 402023493 3RD PARTY EDUCATION PROVIDER 1595452 ARAMARK CORPORATION CAMPUS SERVICES 1350 KING COLLEGE BRISTOL TN 37620 CAFETERIA VENDOR 1444833 PREMIER TRANSPORTATION LLC 1500 BREDA DRIVE KNOXVILLE TN 37918 STUDENT TRANSPORT-ATHLETICS/ACTIVITIES 276474 FINANCIAL AID SERVICES 180 INTERSTATE NORTH PARKWAY SUITE ATLANTA GA 30339 FINANCIAL AID CONSULTING SERVICES 234570 INTERSTATE GRAPHICS 3208 HANOVER ROAD JOHNSON CITY TN 37602 PRINTING SERVICES 169484 9 2854332 1680681 2854332 TUITION AND FEES 611310 39132624 39132624 AUXILIARY ENTERPRISES 611310 3317829 3291809 26020 OTHER INCOME 611310 426546 382575 43971 42876999 146372 146372 2284084 0 2284084 2284084 2284084 48161787 42807008 0 2500447 13292665 13292665 1261059 230527 923821 106711 15382281 13218988 1912342 250951 340958 223018 112534 5406 2447116 1302674 1127681 16761 1121771 719546 385398 16827 77472 77472 78136 78136 197421 197421 741505 224416 471920 45169 1291783 689366 555005 47412 427508 427508 963262 644640 298573 20049 1230064 1027463 194695 7906 139411 139411 1182293 705943 476350 428771 428771 MISCELLANEOUS INTANGIBL 5503950 734775 4634042 135133 DINING SERVICES 1228530 1228530 PLANT OTHER EXPENSES 279684 188485 85337 5862 DUES AND SUBSCRIPTIONS 239734 108550 126226 4958 332714 160014 172700 48188088 35127108 12397835 663145 216963 78450 3623001 4895189 3296309 2477067 1813455 1440797 122602 139738 97500 210543 42397751 21029957 18201127 21367794 32777173 35487695 7905963 7956429 68054093 74053702 1528574 2248875 4239964 6048282 446250 3442875 4167243 2483620 2535269 11695033 15445919 X 19968088 21259784 4509763 5293739 31881209 32054260 56359060 58607783 68054093 74053702 X -26301 2224558 50466 X X 0 1 X 1 1 1 X 2349024 1753841 1267180 1510402 2854332 9734779 2349024 1753841 1267180 1510402 2854332 9734779 2709134 7025645 1570366 1621450 357656 186180 146372 3882024 16774 18646 23647 59067 336551 285109 621660 14297530 179280396 0.49140 X SCHEDULE A, PART I, LINES 2 AND 7 KING COLLEGE, INC. RECEIVED AN IRS DETERMINATION LETTER OCTOBER 29, 1979 STATING THAT THE ORGANIZATION WAS RECOGNIZED AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ADDITIONALLY, THE ORGANIZATION WAS ALSO DETERMINED NOT TO BE A PRIVATE FOUNDATION AS DEFINED IN SECTION 509(A) OF THE CODE BECAUSE IT WAS AN ORGANIZATION DESCRIBED IN SECTION 509(A)(1) AND SECTION 170(B)(1)(A)(II), WHICH IS IDENTIFIED IN SCHEDULE A, PART I, LINE 2 AS A SCHOOL. IT IS AN EDUCATIONAL ORGANIZATION WHICH NORMALLY MAINTAINS A REGULAR FACULTY AND CURRICULUM AND NORMALLY HAS A REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ATTENDANCE AT THE PLACE WHERE ITS EDUCATIONAL ACTIVITIES ARE REGULARLY CARRIED ON. AS OF JUNE 1, 2013, KING COLLEGE, INC. OFFICIALLY BECAME KING UNIVERSITY. THERE WAS NO CHANGE TO THE STRUCTURE OF THE ORGANIZATION. PER THE 2013 INSTRUCTIONS FOR SCHEDULE B, SCHEDULE OF CONTRIBUTORS, THE INTERNAL REVENUE SERVICE HAS CLARIFIED THAT IN ORDER FOR THE UNIVERSITY TO REPORT ITS CONTRIBUTIONS UNDER THE SPECIAL RULE, THE ORGANIZATION MUST NOW CHECK BOX 7 OF SCHEDULE A, PART I, AND COMPLETE SCHEDULE A, PART II, SUPPORT SCHEDULE FOR ORGANIZATIONS DESCRIBED IN SECTIONS 170(B)(1)(A)(IV) AND 170(B)(1)(A)(VI). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 32051040 122135 3778157 -3595188 32356144 31058949 648443 5477704 -5134056 32051040 30467315 84513 507121 31058949 26472467 213707 3781141 30467315 24122502 90739 2382941 -123715 26472467 0.00000 0.99070 0.00930 0 0 221575 221575 28719158 11278554 17440604 5156892 4388535 768357 8300126 5362868 2937258 21367794 INVESTMENT IN ARTWORK AND BOOKS 4820081 F INTEREST IN PERPETUAL TRUSTS HELD BY THIRD PARTIES 1213619 F ASSETS HELD IN CHARITABLE REMAINDER UNITRUSTS 1464179 F INVESTMENT IN REAL ESTATE 458550 F 7956429 DEPOSITS HELD IN CUSTODY FOR OTHERS 345552 OTHER ACCRUED LIABILITIES AND PAYABLES 577897 UNREDEEMED BONDS, COUPONS 31650 CAPITAL LEASE 155020 LIABILITY UNDER UNITRUST AGREEMENTS 424358 U.S. GOVERNMENT LOAN FUNDS REFUNDABLE 1000792 2535269 X 37144146 2224558 50466 2275024 34869122 13292665 13292665 48161787 34895423 0 34895423 13292665 13292665 48188088 PART V, LINE 4: THE INTENDED USE OF THE ORGANIZATION'S ENDOWMENT FUNDS IS FOR GENERAL USE, STUDENT LOAN FUNDS, SCHOLARSHIPS, TECHNOLOGY, CHAIRS AND OTHER. PART X, LINE 2: NOTE 13 - UNCERTAINTY IN INCOME TAXES THE UNIVERSITY FOLLOWS THE FASB ACCOUNTING STANDARDS CODIFICATION, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS. AS OF MAY 31, 2014 AND 2013, THE UNIVERSITY HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE UNIVERSITY'S FINANCIAL STATEMENTS. THE UNIVERSITY'S POLICY IS TO RECOGNIZE INTEREST AND PENALTIES ON UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IN THE FINANCIAL STATEMENTS. HOWEVER, NO INTEREST OR PENALTIES WERE RECORDED DURING THE YEARS ENDED MAY 31, 2014 AND 2013. GENERALLY, THE TAX YEARS BEFORE 2011 ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: GAIN (LOSS) ON BENEFICIAL INTEREST IN PERPETUAL TRUSTS HELD BY THIRD PARTIES 50,916. CHANGES IN ACTUARIAL UNITRUST ASSUMPTIONS -450. PART XI, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID DISCOUNTS 13,292,665. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL AID DISCOUNTS 13,292,665. 1 1 1 1 1 1 1 0 0 0 1 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE POLICY IS STATED ON ALL OF KING UNIVERSITY'S PRINTED MATERIALS, BROCHURES, AND ONLINE. SCHEDULE E, PART I, LINE 5 THERE IS ONE INSTITUTIONAL SCHOLARSHIP BASED ON RACE, WHICH IS THE MARTIN LUTHER KING SCHOLARSHIP, WHICH MUST BE AWARDED TO AN AFRICAN-AMERICAN. SCHEDULE E, PART I, LINE 6 KING UNIVERSITY RECEIVES FINANCIAL ASSSITANCE FROM TWO GOVERNMENTAL AGENCIES - THE UNITED STATES DEPARTMENT OF EDUCATION AND THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES. KING UNIVERSITY PARTICIPATES IN THE TITLE IV STUDENT FINANCIAL AID PROGRAMS. THE UNIVERSITY HAS RECEIVED A RESEARCH GRANT FROM THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES. 1 THE UNIVERSITY AWARDED FINANCIAL AID TOTALING $13,292,665 FOR STUDENTS ATTENDING KING UNIVERSITY, WHOSE MAIN CAMPUS IS IN SULLIVAN COUNTY, TENNESSEE. 2122 13292665 0 N/A N/A PART I, LINE 2: THE UNIVERSITY DOES NOT GIVE ANY NON-CASH SCHOLARSHIPS. SCHOLARSHIPS ARE DISBURSED TO STUDENTS THROUGH CREDITING THEIR STUDENT ACCOUNTS. IF THE STUDENT HAS EXCESS SCHOLARSHIP FUNDS AS THE RESULT OF TITLE IV AID, THEN THESE FUNDS ARE AUTOMATICALLY DISBURSED TO THE STUDENT BY CHECK WITHIN 14 DAYS. IF THE EXCESS FUNDS ARE THE RESULT OF SOMETHING OTHER THAN TITLE IV AID, THE STUDENT MUST REQUEST A REFUND AND THESE FUNDS ARE DISBURSED TO THE STUDENT BY CHECK. THE UNIVERSITY'S PROCEDURES FOR MONITORING GRANT FUNDS IN THE U. S. ARE AS FOLLOWS: THE UNIVERSITY HAS APPOINTED DIRECTORS, WHO REPORT TO THE APPROPRIATE VICE PRESIDENTS, OVER ALL FEDERAL GRANT PROGRAMS. THESE DIRECTORS ARE CHARGED WITH PERFORMING ALL GRANT-RELATED ACTIVITIES INCLUDING APPLICATION, MONITORING OF EXPENDITURES AND REPORTING, WITH THE EXCEPTION OF DRAW-DOWNS OF FEDERAL FUNDS. DRAW-DOWNS ARE PERFORMED BY THE UNIVERSITY'S CONTROLLER AFTER REQUESTS ARE MADE BY THE DIRECTOR TO THE CONTROLLER. THE CONTROLLER REVIEWS THE REQUESTS FOR DRAW-DOWNS, WHICH INCLUDE DOCUMENTATION OF ALL DIRECT AND INDIRECT PROGRAM EXPENSES, BEFORE MAKING THE DRAW-DOWNS. A SINGLE AUDIT IS PERFORMED ANNUALLY BY THE UNIVERSITY'S INDEPENDENT AUDITORS. X 0 1 X X X X 1 0 0 0 0 0 0 0 0 DR GREGORY D JORDAN-060113-0214 PRESIDENT 313944 0 0 0 0 0 12750 0 29653 0 356347 0 0 0 MR JAMES P DONAHUE VP FOR BUSINESS OPERATIONS, CFO 139972 0 0 0 0 0 7350 0 38370 0 185692 0 0 0 PART I, LINE 1A THE UNIVERSITY PAID CLUB DUES AT THE COUNTRY CLUB OF BRISTOL, THE VIRGINIAN, AND THE OLDE FARM FOR GREGORY D. JORDAN, THE FORMER PRESIDENT OF THE UNIVERSITY. THE UNIVERSITY PAID CLUB DUES AT THE COUNTRY CLUB OF BRISTOL FOR LEANN HUGHES, THE VICE-PRESIDENT FOR MARKETING/DEVELOPMENT. PART I, LINE 1B NO FORMAL POLICY EXISTS. HOWEVER, INVOICES ARE REQUIRED BEFORE PAYMENTS ARE MADE. PART I, LINE 4A DR. GREGORY D. JORDAN, THE FORMER PRESIDENT OF KING UNIVERSITY, RECEIVED $332,171 IN SEVERANCE PAY PLUS A 2012 GMC YUKON DENALI, VALUED AT $41,286. PART I, LINE 5 NOT APPLICABLE PART I, LINE 6 NOT APPLICABLE PART I, LINE 7 NOT APPLICABLE PART I, LINE 8 NOT APPLICABLE DR GREGORY D JORDAN FORMER PRESIDENT OF KING UNIVERISTY ACCRUED SEVERANCE PAYMENT WHICH WAS PAID 02/14/15 X 446250 446250 0 1 1 446250 X 3 177511 CLOSING STOCK PRICES X 1 1680681 NET BOOK VALUE 0 0 0 FORM 990, PART VI, SECTION B, LINE 11 A COMPLETE COPY OF THE ORGANIZATION'S FINAL FORM 990 (INCLUDING ALL REQUIRED SCHEDULES), AS ULTIMATELY FILED WITH THE IRS, WAS PROVIDED TO EACH PERSON WHO WAS A VOTING MEMBER OF THE GOVERNING BODY AT THE TIME THE FORM 990 WAS PROVIDED, WHETHER IN PAPER OR ELECTRONIC FORM, BEFORE ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE CHIEF FINANCIAL OFFICER EVALUATES ALL CONTRACTS AND MAJOR TRANSACTIONS TO ENSURE POLICY IS FOLLOWED. FORM 990, PART VI, SECTION B, LINE 15 THE PERSONNEL COMMITTEE OF THE BOARD OF TRUSTEES MEETS ANNUALLY TO DISCUSS AND EVALUATE THE PRESIDENT'S PERFORMANCE. THEY SET AN INCREASE IF THERE IS ONE. FORM 990, PART VI, SECTION C, LINE 19 THE UNIVERSITY DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9: GAINS (LOSSES) ON BENEFICIAL INTEREST IN PERPETUAL TRUSTS 50,916. CHANGES IN ACTUARIAL UNITRUST ASSUMPTIONS -450. FORM 990, PART XII, LINE 2C THE FINANCE COMMITTEE OF THE BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT AND FOR THE SELECTION OF AN INDEPENDENT ACCOUNTANT, AND THIS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, LINE C, PAGE 1, NAME OF ORGANIZATION EFFECTIVE JUNE 1, 2013, KING COLLEGE, INC. OFFICIALLY CHANGED ITS NAME TO KING UNIVERSITY. THERE WAS NO CHANGE TO THE STRUCTURE OF THE ORGANIZATION. THE ACADEMY AT KING 5825 OLD JONESBORO ROAD BRISTOL TN 37620 364645221 OPERATION OF PRIVATE HIGH SCHOOL TN 501(C)(3) LINE 2 N/A 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 THE ACADEMY AT KING C 1680681 BOOK VALUE OF BUILDING THE ACADEMY AT KING D 1500000 NOTE PAYABLE PART V, LINES 1C AND 1D NOTE 15 - SUBSEQUENT EVENTS THE UNIVERSITY CREATED THE ACADEMY AT KING (THE ACADEMY) DURING THE YEAR ENDED MAY 31, 2008. THE ACADEMY WAS SEPARATED FROM THE UNIVERSITY DURING THE YEAR ENDED MAY 31, 2010, AS THE UNIVERSITY NO LONGER WAS CONSIDERED TO HAVE CONTROLLING MEMBERSHIP IN THE BOARD OF THE ACADEMY. HOWEVER, THE ACADEMY CONTINUED TO BE DISCLOSED AS A RELATED PARTY TO THE UNIVERSITY. THE UNIVERSITY CONTINUED LEASING LAND TO THE ACADEMY FOR $1 PER YEAR. THE ACADEMY ISSUED DEBT TO CONSTRUCT A FACILITY ON THE LAND LEASED FROM THE UNIVERSITY, AND THE UNIVERSITY ACTED AS GUARANTOR OF THE ACADEMY'S DEBT. SUBSEQUENT TO YEAR END, THE ACADEMY CEASED OPERATIONS. THE UNIVERSITY ASSUMED THE ACADEMY'S NOTE PAYABLE ON JUNE 28, 2013, WITH AN OUTSTANDING BALANCE OF $1,500,000, A MATURITY DATE OF JULY 1, 2018, AND AN INTEREST RATE OF 3.45%. IN ADDITION, THE UNIVERSITY HAS ASSUMED THE ASSET RELATED TO THE DEBT, WHICH THE UNIVERSITY PLANS TO USE AS AN ACADEMIC BUILDING.