2014-04-08T16:58:08-07:00 2013-05-31 990 2012-06-01 250965430 MERCYHURST UNIVERSITY MERC 8148242000 501 East 38th Street Erie PA 165460001 Jane M Kelsey 8148242038 2014-04-15 2012 2016-03-07 17:11:31Z Jane M Kelsey 501 East 38th Street Erie PA 16546 139335636 0 X www.mercyhurst.edu X 1926 PA Mercyhurst University is a fully accredited, four-year, Catholic comprehensive institution founded by the Sisters of Mercy in 1926. The Erie (Pa.) campus offers 66 undergraduate majors with 51 minors and 57 concentrations, as well as unique adult programs and 10 graduate programs. In addition, the institution maintains one- and two-year programs at Mercyhurst North East (North East, Pa.) and three satellite campuses-Mercyhurst West (Girard, Pa.), Mercyhurst Corry (Corry, Pa.) and Mercyhurst at Booker T Washington (Erie). 31 25 2652 250 100999 85887 11945622 10440167 116590390 121496006 865801 1839831 -123555 77627 129278258 133853631 43639119 46453647 0 0 40319437 42835569 0 0 821268 39537673 41614935 123496229 130904151 5782029 2949480 148968837 152225154 54053486 51055048 94915351 101170106 Consistent with its Catholic identity and Mercy heritage, Mercyhurst University educates women and men in a culture where faith and reason flourish together, where the beauty and power of the liberal arts combine with an appreciation for the dignity of work and a commitment to serving others. Confident in the strength of its student-faculty bonds, the University community is inspired by the image of students whose choices, in life and work, will enable them to realize the human and spiritual values embedded in everyday realities and to exercise leadership in service toward a just world. 0 0 69459039 39521433 96504970 During the 2012-13 academic year there were 4,323 students enrolled in undergraduate, graduate, and associate degree programs on two campuses, Main (3,122) and North East (1,175), and at three separate learning centers, Corry (11), BTW (14), and West (26). The student population was comprised of 3,453 full-time and 538 part-time undergraduate students along with 211 full-time and 121 part-time graduate students. 1,068 total degrees were conferred in the following categories; Baccalaureate 549, Associate 280, Masters 116, Post-baccalaureate 24, and certificate 99. There are a total of 202 full-time and 115 part-time faculty and an offering of 10 graduate programs, 66 undergraduate majors with 51 minors and 57 concentrations on the Main campus,18 associate degree programs on the North East campus and 2 associate degree programs at the University's three educational learning centers. Additionally, 13 advanced certificate programs and 15 graduate certificate programs. 14371803 0 22954640 Auxiliary services includes student housing, foodservice, the university bookstore and the university's conference center on the Main and North East campuses. The total student population in university housing was 1,988 on the Main campus and 295 on the North East campus for the 2012-13 fiscal year. 2,469 students had paid meal plans while many other students and employees dine in university facilities on a pay-as-you-go basis. The university maintains a bookstore on the Main campus as well as the North East campus. The university has conference center facilities at both campuses and regularly hosts outside groups and organizations. 14334269 6828164 699728 Mercyhurst University has 642 student-athletes making up 24 athletic teams, 12 women and 12 men, competing at both the NCAA Division I (Men's and Women's Hockey) and Division II levels. These teams are members of six different athletic conferences, with the preponderance of sports being affiliated with the Pennsylvania State Athletic Conference. The athletic department is also supported by athletic administration, athletic training, the recreational training facility and the department of sports information. The athletic department is comprised of 11 full-time head coaches and 13 part-time head coaches along with 11 full-time and 27 part-time assistant coaches. Athletic administration and support includes another 75 full- and part-time and student employees and the department also utilizes over 40 volunteers. The North East campus sponsors another 15 sports teams, 8 men and 7 women, and are members of the National Junior College Athletic Association. North East athletics includes another 210 student athletes along with 9 full-time coaches and 12 part-time coaches/graduate assistants, 3 full-time administrative personnel and 5 volunteers. 23131181 104050 904451 All other program related activities. 23131181 104050 904451 121296292 1 1 0 1 0 0 1 1 0 1 1 0 0 0 1 0 1 0 1 1 1 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 1 0 1 0 1 1 0 0 0 0 0 0 0 1 159 0 1 2652 1 1 1 1 CJ EI 0 0 0 1 1 0 0 0 0 X 31 25 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X X X David O Hewett CPA 8148242276 501 East 38th Street Erie PA 165460001 Bader RSM Sister Mary Ann 1 0 X 0 0 0 Belfiore Phillip J 45 0 X 148436 0 27813 Cavanaugh Terrence W 1 0 X 0 0 0 Courneen RSM JoAnne 2 0 X 0 0 0 Dahlkemper Mary Ellen 2 0 X 0 0 0 Dillehay PhD Thomas D 1 0 X 0 0 0 Dobbs PhD Vernon D 1 0 X 0 0 0 Durkin Esq Rosemary 2 0 X 0 0 0 Duska RSM Mary Felice 1 0 X 0 0 0 Federici Michael P 45 0 X 94272 0 25759 Gerety RSM PhD Jane 1 0 X 0 0 0 Hess Meghan E 1 0 X 0 0 0 Jeffress MD Andrea T 1 0 X 0 0 0 Knight Charles G 2 0 X 0 0 0 Lanzillo Esq Richard A 2 0 X 0 0 0 Lewis William G 1 0 X 0 0 0 Mazza Robert 1 0 X 0 0 0 McCormick Owen J 2 0 X 0 0 0 McDonald Desmond J 1 0 X 0 0 0 Miller Robert S 2 0 X 0 0 0 Molloy Richard 1 0 X 0 0 0 Monsalve Marco A 1 0 X 0 0 0 Mosco Marlene D 2 0 X 0 0 0 NeCastro Joseph G 1 0 X 0 0 0 Robaszkiewicz Matthew J 2 0 X 0 0 0 Rohm Kathleen 2 0 X 0 0 0 Ryan M Ellen H 1 0 X 0 0 0 Schimscheiner RSM Mary Ann 1 0 X 0 0 0 Sennett Esq William C 2 0 X 0 0 0 Victor Frank B 1 0 X 0 0 0 Weschler Patrick J 1 0 X 0 0 0 Brown Dr Gary M 45 0 X 176918 0 34329 Gamble PhD Thomas J 45 0 X 307326 0 40658 Kelsey Jane M 45 0 X 115630 0 21885 Lieb James F 45 0 X 84350 0 23724 Adovasio James M PhD 45 0 X 241656 0 44717 Dausey David 45 0 X 143090 0 14783 Livingston Dr David J 45 0 X 138073 0 25491 Pond Floyd 45 0 X 132075 0 6323 Wheaton Kristan J 45 0 X 137149 0 3583 Zirkle Kenneth 45 0 X 124038 0 3407 1843013 0 272472 19 0 1 0 Crowther Construction 125 Allison Road Seneca PA 16346 Construction Contractor 744430 BKD LLP 312 Walnut Street Suite 3000 PO Box 5367 Cincinnati OH 45201 Accounting and Auditing 114415 2 0 0 0 0 8914016 1526151 46630 10440167 Tuition & Fees 611310 96504970 96504970 0 0 Auxiliary Services 611310 22954640 22954640 0 0 Government Grants & Contracts 611310 1200543 1200543 0 0 Other Educational Related 611310 364638 364638 0 0 471215 452991 18224 0 121496006 887161 0 76 887085 0 0 0 0 0 0 0 0 17400 196616 0 304260 17400 -107644 -90244 -190343 82699 17400 5981202 65300 4915252 178580 1065950 -113280 952670 -113280 0 1065950 248470 0 82226 166244 0 166244 3314 1687 1627 0 0 1627 0 133853631 121174159 100999 2138306 X 104050 104050 46349597 46349597 0 0 0 0 1542442 615766 798610 128066 0 0 0 0 31622067 28858574 2446578 316915 1409242 1288633 106632 13977 6009303 5323785 614171 71347 2252515 2160085 87134 5296 0 0 0 0 134481 11498 122983 0 123421 10900 112521 0 121702 0 0 121702 0 0 82831 0 82831 0 9052690 8234778 809705 8207 579010 207289 370683 1038 4338824 3566673 738499 33652 3357331 1774632 1575206 7493 0 0 0 0 4575136 4118190 403614 53332 2230776 2140585 85371 4820 0 0 0 0 1287046 993636 243941 49469 1851563 1851563 0 0 0 0 0 0 4516121 4516121 0 0 817801 735941 81860 0 Cost of Sales - Dining Bookstore & Productions 7002049 7002049 0 0 Recruiting 408736 408728 0 8 Athletic Team Expenses 314927 314927 0 0 Bad Debt Write-offs & Collection fees 279137 279137 0 0 541353 429155 106252 5946 130904151 121296292 8786591 821268 0 0 14956298 12692331 4520535 3633563 1082625 780954 0 0 0 0 2386886 2396320 505163 425708 230353 185125 161563916 62544717 97063932 99019199 24523554 29430825 0 0 0 0 488063 444512 3211428 3216617 148968837 152225154 7330406 6971313 0 0 311021 360633 41215000 38775000 0 0 0 0 1330435 1314079 0 3866624 3634023 54053486 51055048 X 72935718 79869072 5134156 4134085 16845477 17166949 94915351 101170106 148968837 152225154 2949480 3305275 0 0 0 0 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 121702 121702 121344612 121466314 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 120115 110527 120806 121702 473150 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 X 1 17 0 0 0 1 0 0 0 1 0 0 X X X 0 25015609 321672 3880893 963524 0 0 28254650 27270132 261235 -1496073 1019685 0 0 25015609 23339566 1347239 3813531 1230204 0 0 27270132 20516420 1489162 2239005 905021 0 0 23339566 24882542 908156 -4354067 920211 0 0 20516420 0.2898 0.6076 0.1026 1 0 422168 3934567 4356735 0 116841739 37197929 79643810 0 5083 5083 0 0 24965143 21245542 3719601 0 15395216 4096163 11299053 99019199 Federal Government Advances for Student Loans 2264652 Student Deposits 1324483 Trusts Payable 44888 3634023 92301669 3305275 1557 0 800441 4107273 88194396 76402 45582833 45659235 133853631 86046914 1557 0 0 800441 801998 85244916 76402 45582833 45659235 130904151 SchD_P02_S00_L09 Schedule D, Part II, Line 9 The University does not derive any revenue from this agreement beyond the original $1 it received in entering into the agreement. As stated in question 7 above, there are no expenses exclusively or directly related to the easement agreement. Being that the 16.89 acres of the easement was part of the land purchased by the University, the fair market value of the easement is included on the University's books and financial statements as property, plant and equipment. There is not a separate footnote in the University financial statements addressing the easement agreement. SchD_P03_S00_L01 Schedule D, Part III, Line 1 Collections of works of art, historical treasures and similar assets are not capitalized in as much as the items are preserved and cared for continuously. Contributions of collection items are not reported in the financial statements. The University's collections consist primarily of paintings, sculptures, and other works of art, books, and antique furniture. SchD_P03_S00_L04 Schedule D, Part III, Line 4 The observance and study of works of art and historical treasures are part of the educational curriculum in many disciplines. The University maintains a collection to further and enhance the educational experience in these disciplines, which is the primary reason for the University's exempt purpose. SchD_P05_S00_L04 Schedule D, Part V, Line 4 The University's endowment consists of individual funds established for a variety of purposes. The endowment includes both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments (board-designated endowment funds). Many of the individual funds established provide scholarships to students. Several other endowments support academic programs, the library, the performing arts center and other areas of the University. SchD_P11_S00_L02d Schedule D, Part XI, Line 2d Schedule D, Part XII, Line 2d - This line includes amounts expended for plant facilities (187,558) which are neither revenue nor expense to the University. Various items that are recorded as part of net revenues on Schedule VIII; Rental expenses (304,260), Fundraising expenses (81,726), Gaming expenses (1,687) Donated items (46,630), and Net Loss on the Disposition of Assets (178,580). SchD_P11_S00_L04b Schedule D, Part XI, Line 4b Financial assistance awarded to students of the institution which is recorded as a contra-revenue in the audited financial statements as well as some revenue items that were previously net against expenses. SchD_P12_S00_L02d Schedule D, Part XII, Line 2d Schedule D, Part XIII, Line 2d - This line includes amounts expended for plant facilities (187,558) which are neither revenue nor expense to the University. Various items that are recorded as part of net revenues on Schedule VIII; Rental expenses (304,260), Fundraising expenses (81,726), Gaming expenses (1,687) Donated items (46,630), and Net Loss on the Disposition of Assets (178,580). SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Financial assistance awarded to students of the institution which is recorded as a contra-revenue in the audited financial statements as well as some revenue items that were previously net against expenses. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SchE_P01_S00_L03 Schedule E, Part I, Line 3 The University practice is to print our racial nondiscrimination policy in all publications directed toward students, prospective students, and parents. The policy is also referred to in radio, television, and print advertising as well as being fully disclosed on the University's website. SchE_P01_S00_L06 Schedule E, Part I, Line 6 The University receives an Institutional Assistance Grant from the Pennsylvania Higher Education Assistance Agency (PHEAA). This aid is determined by the number of Pennsylvania state grant recipients enrolled at the University during the current academic year. 0 Central America and the Caribbean 0 2 Program Services Student recruiting. 11410 Central America and the Caribbean 0 1 Program Services Research trip in Mexico. 2871 East Asia and the Pacific 0 0 Program Services Student recruiting. 13713 East Asia and the Pacific 0 4 Program Services Study abroad and FSAT event in China. 25003 Europe (including Iceland and Greenland) 1 0 Program Services Operation of satellite campus - Mercyhurst College Ireland. 271027 Europe (including Iceland and Greenland) 0 4 Program Services Study abroad and FSAT events in both Ireland and Greece. 218973 Europe (including Iceland and Greenland) 0 0 Program Services Student recruiting. 8398 Europe (including Iceland and Greenland) 0 0 Program Services Student trips. 4620 Europe (including Iceland and Greenland) 0 0 Fundraising Alumni travel and trips. 24030 Europe (including Iceland and Greenland) 0 0 Speaking at Seminars or Conferences Intelligence studies forums and seminars. 39977 North America (including Canada and Mexico, but not the United States) 0 0 Program Services Student recruiting. 16845 South America 0 0 Fundraising Alumni travel and trips. 21696 South Asia 0 0 Program Services Student recruiting. 19940 1 11 678503 1 0 1 1 0 0 SchF_P01_S00_L02 Schedule F, Part I, Line 2 The insignificant amount of assistance was provided to a Sister of the Holy Family Congregation in Liberia. She attended Mercyhurst and is an alumni. Her appeal to the University was believed to be in alignment with our mission at Mercyhust and we were happy to help her futher her mission work in her native country. There were no specific criteria or assessments in selecting her for funding nor was there any anticipation of monitoring or follow up with respect to funds provided. WH Beef n Beatles 21265 1375 19890 650 6906 0 2430 550 85 Football Kickoff Classic 13997 0 13997 0 926 3000 4542 0 1197 5 55159 100 55059 0 11426 3787 4136 5078 13322 90421 1475 88946 650 19258 6787 11108 5628 14604 58035 30911 1 Greater Erie Habitat for Humanity 123 Main Street Erie PA 16509 250606631 501(c)(3) 40250 0 Cash NA Donation to help build a house in support of the local Erie community. Erie Community Foundation 459 West 6th Street Erie PA 16507 256032032 501(c)(?) 17550 0 Cash NA To fund various projects and initiatives in the Erie community. North East Community Foundation 459 West Sixth Street Erie PA 16507 251650208 501(c)(3) 14000 0 Cash NA To fund various projects and initiatives in the North East community. 32 25 University funded financial assistance based on need and merit provided to students attending Mercyhurst University. 4475 46452214 0 Cash NA SchI_P01_S00_L02 Schedule I, Part I, Line 2 Every student who receives financial aid from the University must complete an annual Free Application for Federal Student Aid (FAFSA) form and make satisfactory academic progress in order to retain their aid. Reviews are also conducted on each student to ensure that their grades, academic standing, and major continue to qualify them for the financial aid. These review processes are conducted annually at the end of the University's spring term, prior to the renewal of financial aid packages for the students. X X X X 1 0 X X X 0 0 0 0 0 0 0 1 0 Gamble PhD Thomas J 307326 0 0 0 3435 0 20677 0 16533 0 347971 0 326135 0 Adovasio James M PhD 241656 0 0 0 9853 0 22300 0 9415 0 283224 0 0 0 Brown Dr Gary M 176918 0 0 0 0 0 17146 0 17183 0 211247 0 0 0 Belfiore Phillip J 148436 0 0 0 822 0 12208 0 14783 0 176249 0 0 0 Livingston Dr David J 138073 0 0 0 343 0 10365 0 14783 0 163564 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a Line 1a - (1) First Class or Charter Travel - the President and the Provost are permitted to fly first class while certain other VPs are permitted if the trip is either cross country or international in nature. To the extent the spouse of an employee permitted to fly first class is required to accompany them on a particular trip, these privileges extend to the spouse. The University did not use any charter travel during the reporting period. (2)(3) Travel for Companions and Gross-up Payments - the President is permitted to take his wife on certain trips that are pre-approved by the Chair of the Board of Trustees. All costs associated with the travel of the President's wife, including the gross up of those expenses, are treated as compensation to the President on Form W-2. The Provost and certain other Vice Presidents who are involved in fund raising and entertainment events are occasionally permitted to take their spouses or companions on such trips. (4) Discretionary Spending - the President, the Provost and certain other Vice Presidents incurred certain travel expenses and did not meet the accountable plan rules. These amounts have been reported as compensation to these individuals. SchJ_P01_S00_L03 Schedule J, Part I, Line 3 The Mercyhurst University Board of Trustees follows the recommendation of the Association of Governing Boards of Universities and universities when dealing with presidential compensation and therefore, adheres to best practices established. The process/policy for setting presidential compensation at Mercyhurst University is: Step #1: During the late summer, the Chair of the Board requests the President to provide a list of goals and objectives for the institution and for the office of the president for the forthcoming year. This document is reviewed by the Executive Committee and presented to the full board at its fall meeting for consensus. It provides the baseline used in evaluating the performance of the president 10 to 12 months later. This request is followed up in April by a second request of the Chair of the Board to the President to prepare a report that assesses progress on each of the annual and standing objectives presented in the summer/fall report. Step #2: At Mercyhurst University, the Executive Committee of the Board of Trustees is responsible for the compensation-setting function of the President. The Executive Committee is chaired by the Chair of the Board of Trustees. This 14-member committee is composed of the officers, immediate past chair of the board, and the chairs of the standing committees of the board. The President of the University also sits on the Executive Committee except in such matters. Step #3: To assist the full Executive Committee in determining compensation for the president, a subcommittee from within the Executive Committee is charged with the responsibility of assessing the president's performance as measured against the earlier agreed upon goals from Step #1. This subcommittee is also chaired by the Chair of the Board. Other members of this subcommittee include a vice-chair of the board and the chair of the Committee on Budget and Finance. Based on this subcommittee's in-depth evaluation of the President's performance during the preceding year and its research of comparative information for compensation of leaders of similar and regionally competitive institutions, a recommendation on presidential salary compensation is made to the full Executive Committee for discussion, changes, and finally to vote on approval. Step #4: The Chair of the Board/Chair of the Executive Committee presents this action item to the full board of trustees in executive session for ratification, first disclosing the amount and benefits, and the reasoning of the Executive Committee behind this motion. Step #5: The President, as a member of the Executive Committee and an ex officio trustee, recuses himself from attendance at Executive Committee meetings and executive sessions of the board, when presidential compensation matters are discussed, approved and ratified. SchJ_P01_S00_L07 Schedule J, Part I, Line 7 Discretionary Spending - the President, the Provost and certain other Vice Presidents incurred certain travel expenses and did not meet the accountable plan rules. These amounts have been reported as compensation to these individuals. A 2004 Series A&B - CEHEBA 251536711 295435AA9 2004-10-08 18392510 Refunding of 1993 issue; reserve fund; issuance costs 0 0 0 B 2008 Series - CEHEBA 251536711 295433AA9 2008-06-19 21676206 Refunding of 1997 issue, const of assets; rsv fund; issuance costs 0 0 0 C 2011 Series Tax-exempt Rev Note - CEHBA 251536711 000000000 2011-12-15 9600000 Refunding of 1999, 2001, and 2003 issues. 0 0 0 A 9535000 0 18393479 1489430 15073 18145285 241878 0 0 0 0 0 1 0 1 1 B 825000 0 21747548 1574205 58057 1378500 227454 0 0 18503638 0 0 2009 1 0 1 1 C 800000 0 9601565 0 0 0 0 0 0 0 0 0 1 0 1 1 A 0 0 1 1 0 0 0 0 0 0 1 B 0 0 1 1 0 0 0 0 0 0 1 C 0 0 1 1 0 0 0 0 0 0 1 A 0 0 0 1 0 0 1 Wells Fargo Bank NA 9.9 1 0 1 B 0 0 0 1 0 0 1 Branch Banking & Trust 1.6 1 0 1 C 0 0 1 0 1 0 0 0 1 A 1 B 1 C 1 SchK_P01_S00_L00f Schedule K, Part I, Column f (A) On October 8, 2004, the University issued University Revenue Refunding Bonds, Series A of 2004 and Series B of 2004 (collectively, the 2004 Bonds) through the Authority. The 2004 Bond proceeds were used to finance a project consisting of (a) current refunding of all of the 1993 Bonds; and (b) the financing of the costs relating to the issuance of the 2004 Bonds. The 1993 Bond proceeds were used to finance a project consisting of (a) advance refunding of all outstanding debt under previously issued Bonds; (b) the construction of on-campus apartment buildings, townhouses and a parking deck; (c) the purchase of certain land and buildings on which the University is situated; (d) a portion of the costs associated with the construction of a concert hall; (e) the funding of a debt service reserve fund; and (f) the financing costs relating to the issuance of the 1993 Bonds. (B) On June 19, 2008, the University issued University Revenue Bonds through the Authority. The 2008 Bond proceeds were used to finance a project consisting of (a) current refunding of all 1997 Bonds, (b) the financing of the construction of a four-story, approximately 100,000 square foot 320-bed residence hall on the University's Erie campus, (c) the financing of the construction of a two-story, approximately 22,000 square foot 75-bed residence hall on the University's North East campus, (d) the funding of a debt service reserve fund; and (e) the financing of the costs relating to the issuance of the 2008 Bonds. The 1997 Bond proceeds were used to finance a project consisting of (a) the acquisition of apartment buildings for student housing; (b) the completion and automation of the University's library; (c) the renovation of McAuley Hall; (d) the construction of additional University Facilities; (e) the funding of a debt service reserve fund; and (f) the financing of all or a portion of the costs relating to the issuance of the 1997 Bonds. (C) On December 15, 2011, the University retired the 1999, 2001, and 2003 Variable Rate Bond Issues and issued a Tax-Exempt Revenue Note, Series of 2011 through the Authority with a local bank for the remaining outstanding principal of the three Variable Rate Bond Issues of $9,600,000. The three Variable Rate Bond Issues funded various construction projects on the Erie and North East campuses as well as certain costs of issuing the bonds. The bank simultaneously issued the put option set forth in the note, thereby establishing the maturity date of the note at November 1, 2018. The University may request an extension of the maturity date. Within ninety (90) days following receipt of such request, the bank shall provide the University with a written notice of its determination whether or not to extend the maturity date. SchK_P02_S00_L07 Schedule K, Part II, Line 7 During the course of preparing the 2012 Form 990, we determined that the amount that was reported in prior years as the issuance costs from proceeds on Bond Issue - B was incorrect, as it included amounts that were not issuance costs. The amount reflected in Part II, question 7 for Bond Issue - B reflect the issuance costs that were paid from the proceeds of the bond issue. SchK_P04_S00_L02c Schedule K, Part IV, Line 2c Bond Issue A - The date that the rebate computation was performed was October 8, 2009 through October 31, 2013. Bond Issue B - The date that the rebate computation was performed was June 19, 2009 through June 19, 2013. Exception for Schools Not Required 60806 Tuition Exchange Financial aid Exception for Schools Not required 17667 Merit based scholarship Financial aid Exception for Schools Not required 50678 Need based scholarship Financial aid Exception for Schools Not required 7200 Work study scholarship Financial aid Judith Thomas Spouse of key employee 59980 Compensation 0 William Jefress Spouse of trustee 20450 Compensation 0 Joseph P McCormick Construction Co Trustee and >35% owner of business 298351 Milling and paving services 0 SchL_P04_S00_L00 Schedule L, Part IV (1) Judith Thomas is the wife of key employee James Adovasio and she is an employee of Mercyhurst University. (2) William Jeffress is the husband of Trustee Andrea Jeffress, M.D. and he is an employee of Mercyhurst University. (3) Joseph McCormick Construction Co. is 100% owned by Trustee, Owen J. McCormick. X 52 0 NA X 300 Cost X 11 152604 FMV X 1 215000 Appraised value X Merchandise for a fundraiser 1 160 Cost 2 0 1 1 SchM_P01_S00_L32b Schedule M, Part I, Line 32b Mercyhurst has an account with a financial/investment institution. When stock gifts are received they are delivered to this institution and sold by them on behalf of the University with the proceeds being deposited into our account. SchM_P01_S00_L33 Schedule M, Part I, Line 33 The University does not capitalize works of art or archaeological artifacts, that is why the two items are listed with $0 as the value and N/A with the valuation method. F990_P06_S0A_L02 Form 990, Part VI, Section A, Line 2 Bruce Raimy (Trustee) business relationship with Dennis Marin (Trustee) and Frank Victor (Trustee) Owen McCormick (Trustee) family relationship with Jane Theuerkauf (Trustee) and business relationship with Marlene Mosco (Trustee) F990_P06_S0A_L04 Form 990, Part VI, Section A, Line 4 Amendments/changes to the bylaws approved: Sept. 29, 2012 Trustees approved the revisions to the bylaws as sent to them 30 days prior to the motion and with day-of revisions proposed by Trustee Richard Lanzillo. The majority of changes made were to substitute the word "university" throughout the document in the place of "college;" and, where needed, use new language from the revised Articles of Incorporation as amended with university status. Other major revisions were: * Section 4.02 "Officers of the University" to grant vote to the President as a trustee; * Section 5.03 "Standing Committee" Re-aligning Trustee Standing and Subcommittees of the board to include the following: Committee on Academic Affairs Committee on Advancement Committee on Audit Committee on Budget and Finance Subcommittee on Compensation Subcommittee on endowment Management and investments Subcommittee on Strategic Finance; Committee on Buildings and Grounds Committee on Mission Committee on Student Life Committee on Trustees Subcommittee on Governance * Section 5.04 "Committee on Trustees" to make the Committee on Trustees the nominating source for the board instead of the Executive Committee; * Section 3.04 "Number" to change the appointing body for Sisters of Mercy to the board of trustees of Mercyhurst University to the Institute of the Sisters of Mercy of the Americas instead of by the New York, Pennsylvania, Pacific West Community or Conference for Mercyhurst Higher Education. Motion made Trustee Patrick Weschler and seconded by Trustee Kathleen Rohm. Amendments to the bylaws approved: Feb. 23, 2013 Anticipating changes in the bylaws that would be needed with the proposed term limits, trustees were previously given the 30-day notice of this possible action. Trustees approved changes in the Mercyhurst University corporate bylaws to introduce term limits for term trustees and board officers in the following sections and in others related as deemed necessary by the general counsel to accommodate these new policies of the board. Most significant are changes to: * Section 3.05. "Terms of Trustees" to implement term limits (three consecutive 4-year term trustees). * Section 4.01. Officers of the Board" to waive the current bylaws that require an annual election of officers for fiscal years 2013 and 2014 to facilitate and ease into the implementation of officer term limits and to record the new length of officer limits as passed (two 2-year terms). Changes approved in two other areas: * Section 5.02 "Executive Committee" to delete the immediate past chair of the board as a member of the Executive Committee effective with the seating of new officers at the annual meeting 2016. * Section 3.15 "Trustee Emeritus" to clarify that these honored past term trustees will be invited to attend only the annual meeting of the board, a best practice recommended by the Association of Governing Boards. Motion made by Trustee Patrick Weschler, seconded by Trustee Ellen Ryan. Recommended by the Committee on Trustees. Explanation of the implementation of Term Limits for term trustees and board officers: 1. Term Limits for Term (elected) Trustees. The board approved term limits for term-elected trustees that allow a maximum 12 consecutive years on the board of trustees (three terms of four years each), to go into effect immediately, as determined by a trustee's current renewal year. Motion by Trustee Frank Victor, seconded by Trustee Matthew Robaszkiewicz. Recommended by the Committee on Trustees. Details: Mercyhurst trustees have been without term limits for the past 30 years and foremost in the minds of board members was that "fairness to all" be practiced in its implementation. Term limits had been on the board's agenda on Dec. 16, 2004, and again Jan. 19, 2011, and studied for the past two years by the Committee on Trustees. Implementation: Under this new policy, trustees will not be affected until elections at the annual meeting 2015, as no trustee up for renewal in 2013 or 2014 has 12 years of service. Concurrent with best practices and Association of Governing Board standards, current officers or board members are exempt should their year of final term completion occur while in office or in the year of new officer elections. Outgoing officers with 12 consecutive years of service may, on occasion, be given, at most, one extra year on the board before exiting. This consideration by the Committee on Trustees would be based on the composition/need of the board and number of renewals at the time. All other term trustees who have served 12 consecutive years must leave the board upon final term completion. Outgoing trustees may or may not be asked to rejoin the board by nomination of the Committee on Trustees after at least a one-year absence. This term limit policy does not affect trustees who serve on the board by virtue of the office they hold such as: president of Mercyhurst University; president of NyPPaW or her delegate; president of Mercyhurst Faculty Senate, University Council, Student Government, and Alumni Association. 2. Term Limits for Board Officers. Trustees approved term limits for officers of the board, whereby the chair and vice chair(s) and secondary officers as identified may serve two 2-year terms for a maximum of four years. Motion made by Trustee Desmond McDonald, seconded by Trustee Vernon Dobbs. Recommended by the Committee on Trustees. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b The Form 990 for Mercyhurst University for the current fiscal year end was reviewed in detail by the Vice President for Finance and Treasurer and by an independent accounting firm prior to filing with the IRS. In addition to management's review of the Form 990, the Committee on Audit of the Mercyhurst University Board of Trustees reviewed the highlights of the final return at its winter meeting. Committee members were provided a copy of the Form 990, including all required schedules, several days prior to the meeting and the Committee was given an opportunity to ask questions and provide feedback to management prior to the filing of the return with the IRS. Finally, a copy of the final Form 990, including all required schedules, was e-mailed to each voting member of the Mercyhurst University Board of Trustees approximately one week before the filing deadline. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c Mercyhurst University has a written Conflict of Interest Policy. All officers, Trustees, President's Associates, and members of the President's staff are required to disclose to the Board of Trustees any possible conflict of interest at the earliest practical time. Further, the Trustee shall absent him or her from discussion of, and abstain from voting on, such matters under consideration by the Board of Trustees or its committees. Each officer, Trustee, President's Associate, and member of the President's staff shall complete and sign by May 15 of each year (or the first business day thereafter if May 15 falls on a weekend or holiday) a conflict of interest disclosure form provided annually by the Secretary of the Board of Trustees. The annual conflict of interest disclosure forms are reviewed first by the Chair of the Board of Trustees, who also serves as Chair of the Executive Committee and by the full Executive Committee of the Board of Trustees typically at its Spring meeting. Copies of the annual conflict of interest disclosure forms are provided to the Executive Committee of the Board of Trustees, the Chair of the Board of Trustees, the Secretary of the Board of Trustees, the Chair of the Committee on Audit, the external audit firm, and the President of the University. In February 2013, the Board of Trustees introduced a mid-year Conflict of Interest Update to the annual Disclosure Form to enable those covered by the Conflict of Interest Policy to disclose any new conflicts that have arisen since the completion of the annual conflict of interest disclosure form. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The President reviews compensation increases for all employees. The President specifically makes recommendations for salary increases for employees who report directly to him, which include all officers and key employees with the exception of the Director of Finance and Assistant Treasurer, who reports to the Vice President for Finance and Treasurer and the Vice President for Finance and Treasurer, who reports to the Senior Vice President and Chief Financial Officer. Salary increases are merit based, based upon the President's assessment of the individual's performance. The President also ensures that compensation equity is maintained among comparable positions. A comparison is also made to median salaries for similar institutions as reported either by the College and University Personnel Association (CUPA) for Human Resources or other representative salary survey data for universities. Salary increases are communicated to employees in the form of an annual appointment letter signed by either the President or the Senior Vice President and Chief Financial Officer. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Mercyhurst University posts its audited financial statement on the same webpage that it accomplishes its public disclosure requirement for its Federal Form 990 and 990-T. Additionally, on that website, it alerts users that if they wish to obtain either the University's Conflict of Interest policy or the governing documents of the University, they are available upon request. F990_P09_S00_L24e Form 990, Part IX, Line 24e All other expenses that cannot be reflected on another line.