2014-05-05T11:57:36-05:00 2013-06-30 232932984 PARENTEBEARD LLC 46 PUBLIC SQUARE SUITE 400 WILKESBARRE PA 18701 990 2012-07-01 240804602 KING'S COLLEGE KING 5702085837 133 NORTH RIVER STREET WILKESBARRE PA 18711 JOHN J RYAN CSC 5707062394 2014-05-04 1 EDWARD A KOLLAR CPA EA P00012018 5708200100 2014-05-04 2012 2015-11-30 17:44:51Z JOHN J RYAN CSC 133 NORTH RIVER STREET WILKESBARRE PA 18711 86349488 0 X WWW.KINGS.EDU X 1946 PA PROVIDES STUDENTS WITH A LIBERAL ARTS EDUCATION ENABLING THEM TO LEAD MEANINGFUL & SATISFYING LIVES. 39 33 1455 150 127165 -3973 7613673 5643512 73018972 73283889 2355339 4534558 94062 52803 83082046 83514762 26344159 24863203 0 0 36117296 35520521 2356 0 1316751 19035423 18855993 81499234 79239717 1582812 4275045 145642545 161746517 48760736 58442075 96881809 103304442 X KING'S COLLEGE, A CATHOLIC COLLEGE IN THE HOLY CROSS TRADITION, PROVIDES STUDENTS WITH A BROAD-BASED LIBERAL ARTS EDUCATION WHICH OFFERS THE INTELLECTUAL, MORAL, AND SPIRITUAL PREPARATION THAT ENABLES THEM TO LEAD MEANINGFUL AND SATISFYING LIVES. 0 0 70343816 24863203 73155575 KING'S COLLEGE IS A NOT-FOR-PROFIT EDUCATIONAL INSTITUTION WHICH PROVIDES UNDERGRADUATE, GRADUATE AND PROFESSIONAL EDUCATION TO ITS STUDENTS. THE COLLEGE WAS FOUNDED IN 1946 AND WELCOMES STUDENTS INTO ITS COMMUNITY WITHOUT REGARD TO GENDER, RACE, RELIGION, DISABILITY OR NATIONAL ORIGIN, AND SEEKS TO ASSIST TALENTED STUDENTS OF MODEST FINANCIAL MEANS.THE COLLEGE HAS APPROXIMATELY 2,500 STUDENTS, OF WHOM 1,981 ARE FULL-TIME UNDERGRADUATES. APPROXIMATELY 93% OF THE COLLEGE'S PRESENT FULL-TIME UNDERGRADUATE STUDENT BODY IS COMPRISED OF RESIDENTS FROM PENNSYLVANIA, NEW YORK, AND NEW JERSEY.DURING THE YEAR ENDED JUNE 30, 2013, THE COLLEGE PROVIDED STUDENT FINANCIAL AID FROM INTERNAL RESOURCES OF APPROXIMATELY $23,728,840. 70343816 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 3518 0 1 1455 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 39 33 1 1 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X THOMAS GRABER CPA 5702085837 133 NORTH RIVER STREET WILKESBARRE PA 187110801 MR THOMAS R SMITH 1.00 X X 0 0 0 MR MARK DECESARIS 1.00 X X 0 0 0 MRS KAREN KEEFER 1.00 X X 0 0 0 MR RICHARD A ALLEY MD 1.00 X 0 0 0 REV THOMAS E CHAMBERS 1.00 X 0 0 0 BRO RICHARD DALY CSC 1.00 X 0 0 0 REV JOHN F DENNING 1.00 X 0 0 0 MR BRENDAN P DOUGHER 1.00 X 0 0 0 MRS JANE B FEINSTEIN 1.00 X 0 0 0 MR SCOTT HENRY 1.00 X 0 0 0 DR JONATHAN P HOSEY 1.00 X 0 0 0 JOSEPH E KLUGER ESQ 1.00 X 0 0 0 MS KATHLEEN MCCARTHY LAMBERT 1.00 X 0 0 0 GERTRUDE C MCGOWAN ESQ 1.00 X 0 0 0 MR MICHAEL D MOLEWSKI 1.00 X 0 0 0 MR TIMOTHY J MORRIS 1.00 X 0 0 0 MR JOHN G NACKLEY 1.00 X 0 0 0 MR JOHN D O'BRIEN 1.00 X 0 0 0 MR JAMES T O'HARA ESQ 1.00 X 0 0 0 REV THOMAS J O'HARA CSC 1.00 X 0 0 0 MR CHARLES E PARENTE 1.00 X 0 0 0 MR RICHARD J PINOLA 1.00 X 0 0 0 REV MARK L POORMAN CSC PHD 1.00 X 0 0 0 MR DONALD B POPE-DAVIS PHD 1.00 X 0 0 0 REV JAMES L REBETA CSC 1.00 X 0 0 0 MRS VIRGINIA S ROSE 1.00 X 0 0 0 MR DAVID SCHANKWEILER 1.00 X 0 0 0 MR JAMES V SCHNEIDER 1.00 X 0 0 0 MR DAVID J SELINGO ESQ 1.00 X 0 0 0 MS CATHERINE J SERAFIN ESQ 1.00 X 0 0 0 MS PATRICIA E SINEX 1.00 X 0 0 0 REV KEVIN P SPICER CSC PHD 1.00 X 0 0 0 BRO DONALD STABROWSKI CSC 1.00 X 0 0 0 MR WALTER TISCHER 1.00 X 0 0 0 MR GLENN W TYRANSKI 1.00 X 0 0 0 MS SUSAN E UNVARSKY 1.00 X 0 0 0 REV OLIVER F WILLIAMS CSC 1.00 X 0 0 0 REV JOHN L YOUNG CSC MD 1.00 X 0 0 0 MR EBERHARD FABER 1.00 X 0 0 0 MR JOSEPH A FRANK SR 1.00 X 0 0 0 MR ALLAN M KLUGER ESQ 1.00 X 0 0 0 MR JAMES L PURCELL ESQ 1.00 X 0 0 0 MR JOHN M RANDOLPH JR 1.00 X 0 0 0 MR Y JUDD SHOVAL 1.00 X 0 0 0 MR JESSE J WATKINS 1.00 X 0 0 0 REV JOHN J RYAN CSC 40.00 X 0 0 8516 LISA MARIE MCCAULEY 40.00 X 155035 0 19776 FREDERICK PETTIT 40.00 X 151933 0 15531 DR BERNARD HEALEY 40.00 X 132379 0 22615 NICHOLAS HOLODICK EDD 40.00 X 148374 0 27665 BARRY WILLIAMS CPA JD 40.00 X 129900 0 27318 MS JANET MERCINCAVAGE 40.00 X 122476 0 28207 PAUL MORAN 40.00 X 117336 0 35285 957433 0 184913 19 0 1 0 SORDONI CONSTRUCTION SERVICES 45 OWEN STREET FORTY FORT PA 18704 CONSTRUCTION SERVICES 4047357 CONGREGATION OF THE HOLY CROSS US PROVI 835 CLINTON AVE BRIDGEPORT CT 06604 ADMINISTRATIVE & FACULTY 543954 ELITE UNDERWRITING SERVICES 191 SHEREE BLVD EXTON PA 19341 INSURANCE PLAN/CONSULTING 404461 SODEXHO 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 FACILITIES AND DINING SERVICE MANAGEMENT 308382 FIRST PRIORITY HEALTH 19 NORTH MAIN STREET WILKES BARRE PA 18711 HEALTH INSURANCE CLAIM PROCESSING 251655 12 30400 2998059 2615053 5643512 STUDENT TUITION & FEES 611600 61164470 61164470 AUXILIARY (ROOM/BOARD) 721310 11989664 11859573 130091 INTERNAL PRINT REVENUE 611600 97716 97716 TUITION DEP FRFEITURES 611600 11382 11382 SPORTS TEAM INCOME 711210 7940 7940 12717 12717 73283889 2510606 2510606 208432 153246 55186 55186 -2926 58112 4691157 2667205 2023952 2023952 2023952 10115 30400 14275 -4160 -4160 FINES (LIBRARY & PRKG) 812930 1777 1777 1777 83514762 73155575 127165 4588510 24863203 24863203 597634 395134 202500 25463392 22046905 2911677 504810 1809047 1578173 199376 31498 5949529 5037467 645675 266387 1700919 1476357 192188 32374 122668 122668 96485 96485 1361372 1025204 322241 13927 319972 296062 20903 3007 2690722 1871973 740563 78186 814874 571804 218357 24713 156 156 3873167 3344889 486117 42161 574689 533443 21893 19353 90357 59194 23824 7339 1638644 1630806 7838 3756650 3343419 375665 37566 413786 107190 306596 FOOD 1778490 1699935 36666 41889 REPAIRS AND MAINTENANCE 342569 330900 11669 ATHLETIC TEAM EXPENSES 331661 331661 DUES AND SUBSCRIPTIONS 290483 166475 118891 5117 359248 28600 324724 5924 79239717 70343816 7579150 1316751 115961 571837 990391 5288107 5155211 3683408 1657172 2534066 2453141 36639 37918 42029 354367 138930923 54942805 83489880 83988118 1079349 3032831 42354802 50695677 6446467 13381691 145642545 161746517 4338835 4668490 2026008 1626569 31995000 45000000 120000 0 2735545 1427003 7545348 5720013 48760736 58442075 X 50595044 54468420 16103442 17030702 30183323 31805320 96881809 103304442 145642545 161746517 X 4275045 259578 1888010 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 49703899 1302555 4546155 1654445 -7500000 61398164 55315775 3560210 -75944 1596142 7500000 49703899 48432886 1085136 7869667 2071914 55315775 44686604 1508921 4500781 2263420 48432886 61779947 1610755 -16834873 1869225 44686604 0.27620 0.51800 0.20580 1 0 17152300 17152300 92476481 36018965 56457516 28960601 18923840 10036761 341541 341541 83988118 6730598 F HIGHBRIDGE CAPITAL 82191 F BAY RESOURCE PARTNERS 28094 F ONE WILLIAM ST. OFFSHORE FD 1744549 F BENEFICIAL INTERESTS IN ASSETS HELD BY OTHERS 42110245 F 50695677 DEFERRED FINANCING COSTS 246627 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 6398814 DEPOSITS WITH BOND TRUSTEE 6736250 13381691 AGENCY FUNDS PAYABLE 529887 REFUNDABLE ADVANCES - GRANTS 1928428 FAIR VALUE - INTEREST RATE SWAP 3261698 5720013 X 62086756 259578 -21840830 -21581252 83668008 -153246 -153246 83514762 55664123 153246 153246 55510877 23728840 23728840 79239717 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: PART V, LINE 4: THE COLLEGE'S ENDOWMENT IS USED TO PROVIDE SCHOLARSHIPS TO STUDENTS AND PROVIDE FUNDS TO OFFSET FACULTY SALARIES AND DEVELOPMENT COSTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE COLLEGE ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES USING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD IS MET. MANAGEMENT HAS DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN FISCAL YEAR 2013 AND 2012. THE COLLEGE'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. THE COLLEGE'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS FOR THE YEARS ENDED JUNE 30, 2012, 2011, AND 2010 REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: INSTITUTIONALLY FUNDED FINANCIAL AID -23,728,840. UNREALIZED GAINS ON INTEREST RATE SWAPS 1,567,125. CHANGES IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS 320,885. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -153,246. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 153,246. NET UNREALIZED LOSSES ON INVESTMENTS PART XII, LINE 4B - OTHER ADJUSTMENTS: INSTITUTIONALLY FUNDED FINANCIAL AID 23,728,840. 1 1 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE COLLEGE'S BROADCAST ADVERTISEMENTS DO NOT SPECIFICALLY INCLUDE ITS NONDISCRIMINATION POLICIES. THESE POLICIES ARE EXPLICITLY STATED IN ALL PRINTED BROCHURES, CATALOGS, AND ON THE COLLEGE'S WEBSITE. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 KING'S COLLEGE RECEIVES OPERATING FUNDS DESIGNATED BY GOVERNMENT FUNDING AGENCIES FOR PARTICULAR OPERATING PURPOSES. CERTAIN STUDENTS OF THE COLLEGE WERE RECIPIENTS OF GRANTS UNDER THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE ACT. THE COLLEGE ACTS AS THE CUSTODIAN AND DISBURSING AGENT FOR THESE FUNDS. FATHER FARBER GOLF TOURNAMENT 40515 30400 10115 0 4182 7468 2625 40515 30400 10115 4182 7468 2625 14275 -4160 1 COLLEGE ENDOWED SCHOLARSHIPS 2110 23728840 EPAT GRANT; SCHOLARSHIP 12 191000 HOLY CROSS MISSION DEVELOPMENT SCHOLARSHIP 3 6763 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE COLLEGE'S FINANCIAL AID OFFICE EVALUATES EACH STUDENT'S FINANCIAL NEED, AS DETERMINED THROUGH INFORMATION PROVIDED ON THE STUDENT FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA). MANAGEMENT AWARDS MERIT SCHOLARSHIPS TO INDIVIDUALS THAT QUALIFY, BASED ON DONOR STIPULATIONS (I.E. SPECIFIC MAJORS, LOCALITY, ETC.) AND AWARDS FEDERAL, STATE, AND PRIVATE NEED BASED AWARDS TO PROVIDE ADDITIONAL RESOURCES TO STUDENTS FOR THEIR HIGHER EDUCATION. INDIVIDUALS RECEIVING AWARDS ARE ON CAMPUS AND MEET WITH FINANCIAL AID COUNSELORS TO ENSURE STUDENTS ARE IN FACT WITHIN THE U.S. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 LISA MARIE MCCAULEY 155035 0 0 0 0 0 5680 0 14096 0 174811 0 0 0 FREDERICK PETTIT 151933 0 0 0 0 0 12574 0 2957 0 167464 0 0 0 DR BERNARD HEALEY 132379 0 0 0 0 0 10282 0 12333 0 154994 0 0 0 NICHOLAS HOLODICK EDD 148374 0 0 0 0 0 12671 0 14994 0 176039 0 0 0 BARRY WILLIAMS CPA JD 129900 0 0 0 0 0 11531 0 15787 0 157218 0 0 0 MS JANET MERCINCAVAGE 122476 0 0 0 0 0 12136 0 16071 0 150683 0 0 0 PAUL MORAN 117336 0 0 0 0 0 10509 0 24776 0 152621 0 0 0 PART I, LINE 1A THE COLLEGE PAID THE INITIATION FEES AND MONTHLY DUES MEMBERSHIPS FOR FR. JOHN RYAN, C.S.C., DR. NICHOLAS HOLODICK, AND MR. FREDERICK PETTIT TO THE WESTMORELAND CLUB. THE WESTMORELAND CLUB IS A NON-PROFIT SOCIAL CLUB USED BY MEMBERS OF MANAGEMENT TO HOST MEETINGS WITH BUSINESS PARTNERS OF THE COLLEGE, BOARD MEMBERS, POTENTIAL DONORS, FACULTY AND STAFF. FR. JOHN RYAN, C.S.C., DR. NICHOLAS HOLODICK, AND MR. FREDERICK PETTIT WERE NOT TAXED ON THE MEMBERSHIP DUES PAID BY THE COLLEGE ON THEIR BEHALF. PART I, LINE 1B THE EXPENSES INCURRED AT THE WESTMORELAND CLUB ARE SUBJECT TO THE DOCUMENTATION REQUIREMENTS OF THE COLLEGE. A CITY OF WILKES-BARRE FINANCE AUTHORITY 205684698 2013-06-03 45000000 CURRENT REFUNDING OF VRDB'S, AUX GYM CONSTRUCTION, ACQUISITION & RENOVATION. 0 0 0 A 45000000 238750 7500000 30475000 6786250 2014 1 0 1 1 A 0 0 1 1 0 0 0 1 A 1 1 1 PNC CAPITAL MARKETS 18.000000000000 1 0 0 0 1 A 1 CHARLES PARENTE DIRECTOR 158732 LACKAWANNA AMERICAN INSURANCE (LAI) MAINTAINS THE COLLEGE'S WORKERS COMPENSATION POLICY. LAI IS A WHOLLY OWNED SUBSIDIARY OF LACKAWANNA CASUALTY COMPANY (LCC). LCC IS OWNED BY PAGNOTTI ENTERPRISES. MR. PARENTE IS A MINORITY OWNER AND OFFICER OF PAGNOTTI ENTERPRISES.ALL TRANSACTIONS WITH LACKAWANNA CASUALTY COMPANY AND PAGNOTTI ENTERPRISES WERE CONDUCTED AT ARM'S LENGTH. 0 GERTRUDE C MCGOWAN ESQ DIRECTOR 251655 MS. MCGOWAN IS A VICE PRESIDENT OF FIRST PRIORITY HEALTH. FIRST PRIORITY PROCESSES MEDICAL CLAIMS ON BEHALF OF THE COLLEGE. THE PAYMENT AMOUNT REPRESENTS AN ADMINISTRATIVE FEE PAID. THE COLLEGE IS SELF INSURED AND PAYS ALL MEDICAL CLAIMS.ALL TRANSACTIONS WITH FIRST PRIORITY HEALTH WERE CONDUCTED AT ARM'S LENGTH. 0 SCOTT HENRY DIRECTOR 109571 MR. HENRY IS THE OWNER OF MARTZ TRAILWAYS. THE COLLEGE PAID MARTZ TRAILWAYS FOR TRANSPORTATION SERVICES. ALL TRANSACTIONS WITH MARTZ TRAILWAYS WERE CONDUCTED AT ARM'S LENGTH. 0 CHARLES PARENTE DIRECTOR 4047357 MR. PARENTE IS A MINORITY OWNER OF SORDONI CONSTRUCTION SERVICES, INC. THE COLLEGE PAID CONSTRUCTION RELATED COSTS TO SORDONI CONSTRUCTION SERVICES, INC. IN CONNECTION WITH THE CONSTRUCTION OF A NEW AUXILIARY GYMNASIUM. ALL TRANSACTIONS WITH SORDONI CONSTRUCTION SERVICES, INC. WERE CONDUCTED AT ARM'S LENGTH. 0 CHARLES PARENTE DIRECTOR 1717083 MR. PARENTE IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 MARK DECESARIS VICE CHAIRMAN 1717083 MR. DECESARIS IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 MICHAEL MOLEWSKI DIRECTOR 1717083 MR. MOLEWSKI IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 RICHARD PINOLA DIRECTOR 1717083 MR. PINOLA IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 EBERHARD FABER DIRECTOR 1717083 MR. FABER IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 Y JUDD SHOVAL DIRECTOR EMERITUS 729846 MR. SHOVAL IS AN OFFICER OF AMBIT FUNDING. THE COLLEGE IS AN INVESTOR IN AMBIT FUNDING. THE AMOUNT REFLECTS THE FAIR VALUE OF THE INVESTMENT AS OF YEAR-END, IN ACCORDANCE WITH GENNERALLY ACCEPTED ACCOUNTING PRINCIPLES. 0 JOHN O'BRIEN DIRECTOR 1717083 MR. O'BRIEN IS A LIMITED PARTNER OF FRIENDS OF KING'S, LLP, WHICH IS A PARTNER OF RPG KING'S, LP. THE COLLEGE ENTERED INTO A LEASE AGREEMENT WITH RPG KING'S, LP, IN CONJUNCTION WITH A MULTIUSE BUILDING ADJACENT TO THE COLLEGE'S CAMPUS. THE BUILDING CONSISTS PRIMARILY OF STUDENT HOUSING AND VARIOUS RETAIL SUITES. THE DISCLOSED AMOUNT REFLECTS THE CASH PAID BY THE COLLEGE TO RPG KING'S, LP IN CONJUNCTION WITH THE STATED LEASE AGREEMENT, INCLUDING REIMBURSABLE COSTS. THE ORIGINAL LEASE TERM IS THIRTY YEARS, WITH A PURCHASE OPTION AVAILABLE AFTER SEVEN YEARS. 0 JOSEPH KLUGER DIRECTOR 92791 MR. KLUGER IS A PARTNER AT THE LAW FIRM OF HOURIGAN, KLUGER, AND QUINN. THE COLLEGE PAID FOR LEGAL SERVICES PERFORMED BY HOURIGAN, KLUGER, AND QUINN. 0 FORM 990, PART VI, SECTION A, LINE 2 ATTY. JOE KLUGER (DIRECTOR) AND ATTY. ALLAN KLUGER (DIRECTOR EMERITUS) HAVE A FAMILY RELATIONSHIP. MARK DECESARIS (VICE CHAIRMAN), EBERHARD FABER (DIRECTOR), AND CHARLES PARENTE (DIRECTOR) HAVE BUSINESS RELATIONSHIPS. REV. THOMAS O'HARA, C.S.C. IS THE PROVINCIAL OF THE U.S. PROVINCE OF HOLY CROSS. THE PRESIDENT OF KING'S COLLEGE, FR. JOHN J. RYAN, C.S.C. (ALONG WITH ALL OTHER PRIESTS AND BROTHERS ON CAMPUS) ARE MEMBERS OF THE U.S. PROVINCE OF HOLY CROSS. THE PRIESTS THAT ARE MEMBERS OF THE BOARD OF DIRECTORS ARE ALSO MEMBERS OF THE U.S. PROVINCE. FORM 990, PART VI, SECTION A, LINE 3 THE MANAGEMENT OF THE DINING SERVICES AND FACILITIES DEPARTMENTS ARE CONTRACTED OUT TO SODEXO. THE RESPECTIVE MANAGERS FROM SODEXO REPORT TO THE COLLEGE'S CFO AND ULTIMATE DECISION MAKING RESTS WITH THE CFO, INCLUDING PERSONNEL DECISIONS. FORM 990, PART VI, SECTION A, LINE 6 THE MEMBERS OF THE CORPORATION OF KING'S COLLEGE INCLUDE ALL FULL-FLEDGED MEMBERS OF THE CONGREGATION OF HOLY CROSS WHOSE OFFICIAL ASSIGNMENT IS DIRECTLY RELATED TO KING'S COLLEGE. THE MEMBERS MEET AT LEAST ANNUALLY AND AS OFTEN AS DEEMED NECESSARY BY THE MEMBERS, CORPORATE OFFICERS OR BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE CORPORATION, THROUGH CONSULTATION WITH VARIOUS BOARD COMMITTEES, ELECT THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS ACTS AS THE GOVERNING BODY OF THE COLLEGE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PROVIDED TO THE COLLEGE'S AUDIT COMMITTEE, IN DRAFT FORM, DURING A REGULARLY SCHEDULED MEETING. THE INFORMATION PRESENTED TO THE COMMITTEE MEMBERS IS PROVIDED TO THEM PRIOR TO THE MEETING DATE. THE COMMITTEE MEMBERS REVIEW THE 990 INDIVIDUALLY AND RAISE QUESTIONS AND CONCERNS REGARDING THE INFORMATION PRESENTED TO MANAGEMENT DURING THE MEETING. FOLLOWING DISCUSSION, MEMBERS OF THE COMMITTEE VOTE TO AUTHORIZE THE COLLEGE'S MANAGEMENT TO SUBMIT THE FORM 990, AS PRESENTED OR WITH IDENTIFIED CHANGES. FOLLOWING THE APPROVAL BY THE AUDIT COMMITTEE THE FINAL FORM 990 IS DISTRIBUTED TO EACH BOARD MEMBER AND POSTED TO A SECURE WEBSITE ACCESSIBLE BY BOARD MEMBERS. FOLLOWING A THIRTY DAY REVIEW PERIOD, MANAGEMENT WILL AUTHORIZE THE FILING OF THE FORM. FORM 990, PART VI, SECTION B, LINE 12C THE CHAIRMAN OF THE BOARD DISTRIBUTES, EXPLAINS, AND COLLECTS COMPLETED CONFLICT OF INTEREST STATEMENTS. THESE STATEMENTS ARE REVIEWED BY THE BUSINESS OFFICE WHO OBTAINS ADDITIONAL INFORMATION, IF REQUIRED. THE CHAIRMAN OF THE BOARD ATTENDS ALL BOARD MEETINGS WHERE ACTIONS ARE VOTED ON TO ENSURE INDIVIDUALS WITH POTENTIAL CONFLICTS OF INTEREST DO NOT PROVIDE COMMENTARY OR PARTICIPATE IN THE EVALUATION OF THE TRANSACTION. THESE INDIVIDUALS ARE ALSO FORBIDDEN TO VOTE ON ACTIONS WHERE POTENTIAL CONFLICTS ARE PRESENT. FORM 990, PART VI, SECTION B, LINE 15 THE COLLEGE'S BOARD OF DIRECTORS CONTAINS AN EXECUTIVE COMPENSATION COMMITTEE TO DETERMINE THE COMPENSATION OF THE CEO AND VARIOUS VICE PRESIDENTS. COMPENSATION IS BASED ON AN EVALUATION OF SALARIES PAID TO INDIVIDUALS AT COMPARABLE INSTITUTIONS OF HIGHER EDUCATION, WITHIN SIMILAR GEOGRAPHICAL REGIONS. THIS INFORMATION IS ACCUMULATED THROUGH DATA PUBLISHED BY THE EASTERN ASSOCIATION OF COLLEGE AND UNIVERSITY BUSINESS OFFICERS (EACUBO). FOLLOWING REVIEW OF COMPARABLE DATA, THE CEO PREPARES PERFORMANCE EVALUATIONS ON THE VARIOUS VICE PRESIDENTS WITHIN THE COLLEGE, BASED ON ESTABLISHED CRITERIA. THE CEO SUBMITS SALARY RECOMMENDATIONS FOR THESE POSITIONS TO THE BOARD'S EXECUTIVE COMPENSATION COMMITTEE FOR ULTIMATE APPROVAL. THE CEO PERFORMANCE EVALUATION IS PERFORMED BY THE EXECUTIVE COMPENSATION COMMITTEE AND A SALARY RECOMMENDATION IS PRESENTED AND APPROVED FOLLOWING THAT PROCESS. FORM 990, PART VI, SECTION C, LINE 18 THE COLLEGE MAINTAINS PUBLIC INSPECTION COPIES OF FORMS 990 AND FORM 990-T IN THE COLLEGE'S BUSINESS OFFICE DURING REGULARLY SCHEDULED HOURS. FURTHER, A COPY OF THE FORM 990 IS AVAILABLE ON THE WORLD WIDE WEB AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE COLLEGE DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: UNREALIZED LOSSES ON INTEREST RATE SWAPS 1,567,125. CHANGES IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS 320,885. FORM 990, PART XI, LINE 2C: THERE HAS BEEN NO CHANGE IN THE SELECTION OR OVERSIGHT OF THE INDEPENDENT AUDITORS. THE COLLEGE PUBLICLY BID THEIR AUDIT SERVICES DURING THE SPRING OF 2006. AT THAT TIME, THE EXISTING AUDITOR WAS RETAINED AS THE INDEPENDENT AUDITORS OF THE COLLEGE BASED ON RECOMMENDATION OF THE COMMITTEE. THE AUDIT COMMITTEE MEETS THREE TIMES A YEAR, AND ANNUALLY EVALUATES THE PERFORMANCE OF THE INDEPENDENT AUDITORS, ASSESSES FEES FOR SERVICES, AND FORMALLY RECOMMENDS APPOINTMENT OF THE FIRM TO THE FULL BOARD FOR APPROVAL.