2013-04-17T14:34:38-05:00 2012-06-30 232932984 PARENTEBEARD LLC 46 PUBLIC SQUARE SUITE 400 WILKESBARRE PA 18701 990 2011-07-01 240804602 KING'S COLLEGE KING 5702085837 133 NORTH RIVER STREET WILKESBARRE PA 18711 JOHN J RYAN CSC 5707062394 2013-04-17 1 EDWARD A KOLLAR CPA EA P00012018 5708200100 2013-04-17 2011 2016-03-07 17:11:31Z JOHN J RYAN CSC 133 NORTH RIVER STREET WILKESBARRE PA 18711 97067175 0 X WWW.KINGS.EDU X 1946 PA PROVIDES STUDENTS WITH A LIBERAL ARTS EDUCATION ENABLING THEM TO LEAD MEANINGFUL & SATISFYING LIVES. 40 37 1597 0 169844 -7940 3273777 7613673 70407280 73018972 3554825 2355339 66953 94062 77302835 83082046 24295903 26344159 0 0 33917858 36117296 22299 2356 1345018 19439915 19035423 77675975 81499234 -373140 1582812 147006226 145642545 47807016 48760736 99199210 96881809 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 72119483 26344159 72886001 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 2,600 STUDENTS, OF WHOM 2,020 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, 2012, THE COLLEGE PROVIDED STUDENT FINANCIAL AID FROM INTERNAL RESOURCES OF APPROXIMATELY $25,228,000. 72119483 1 1 0 0 0 0 0 0 0 1 1 1 0 0 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 0 1 X 45 0 1597 1 1 1 1 EI SW CJ BD 0 0 0 1 1 0 0 0 0 0 0 X 40 37 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 MRS MADGE BENOVITZ DEC'D 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 EBERHARD FABER 1.00 X 0 0 0 MRS JANE B FEINSTEIN 1.00 X 0 0 0 MR JAMES F GETZ 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 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 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 MS CATHERINE J SERAFIN ESQ 1.00 X 0 0 0 MR BENJAMIN W SHOVAL 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 REV DAVID T TYSON CSC 1.00 X 0 0 0 DR BARBARA E WALL 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 JOSEPH A FRANK SR 1.00 X 0 0 0 MR ALLEN M KLUGER ESQ 1.00 X 0 0 0 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 JOHH J RYAN CSC 40.00 X 0 0 27762 LISA MARIE MCCAULEY 40.00 X 152332 0 22857 DR BERNARD HEALEY 40.00 X 159971 0 14039 NICHOLAS HOLODICK EDD 40.00 X 157338 0 18343 BARRY WILLIAMS CPA JD 40.00 X 131761 0 18344 MS JANET MERCINCAVAGE 40.00 X 119247 0 18903 TERESA PECK 40.00 X 116297 0 15026 MARC MARCHESE 40.00 X 114281 0 24681 WILLIAM LUTES 40.00 X 113923 0 15897 1065150 0 175852 16 0 1 0 SORDONI CONSTRUCTION SERVICES 45 OWEN STREET FORTY FORT PA 18704 CONSTRUCTION SERVICES 4541973 PANZITTA ENTERPRISES 72 GEORGE AVENUE WILKESBARRE PA 18705 CONSTRUCTION SERVICES 587600 EASTERN PROVINCE OF HOLY CROSS 835 CLINTON AVENUE BRIDGEPORT CT 06604 ADMINISTRATIVE & FACULTY 570240 ELITE UNDERWRITING SERVICES 191 SHEREE BLVD EXTON PA 19341 INSURANCE PLAN/CONSULTING 388499 SODEXHO 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 FACILITIES AND DINING SERVICE MANAGEMENT 343668 17 35375 3031235 4547063 7613673 STUDENT TUITION & FEES 611600 61083394 61083394 AUXILIARY (ROOM/BOARD) 721310 11923314 11776718 146596 SPORTS TEAM INCOME 711210 9142 9142 THEATRE ADMISSION 711110 3122 3122 73018972 2134981 2134981 223743 139237 84506 84506 23248 61258 14051756 13831398 220358 220358 220358 10425 35375 14494 -4069 -4069 MISCELLANEOUS 900009 10688 10688 FINES (LIBRARY & PRKG) 812930 2937 2937 13625 83082046 72886001 169844 2412528 26344159 26344159 221727 221727 26247225 21995563 3593794 657868 1951868 1628916 274233 48719 5900448 4998128 613110 289210 1796028 1498860 252338 44830 44286 44286 92815 92815 2356 2356 1563176 905164 645880 12132 372649 360721 9878 2050 3010470 2267919 640463 102088 889795 657757 210363 21675 3524456 3044040 442056 38360 706735 656912 36151 13672 126273 102017 20498 3758 1202166 1186446 15720 3536777 3147732 353678 35367 431163 131085 300078 FOOD 2028312 1921277 56519 50516 ATHLETIC TEAM EXPENSES 364837 364837 DUES AND SUBSCRIPTIONS 312241 174915 125791 11535 REPAIRS AND MAINTENANCE 262646 249811 12727 108 566626 483224 72628 10774 81499234 72119483 8034733 1345018 130866 115961 1607522 571837 5132588 5288107 2111596 3683408 2585777 2534066 29474 36639 354334 42029 134695779 51205899 79012186 83489880 34169292 1079349 15000835 42354802 6871756 6446467 147006226 145642545 3885115 4338835 1671500 2026008 33480000 31995000 180000 120000 3000000 2735545 5590401 7545348 47807016 48760736 X 53141048 50595044 17273966 16103442 28784196 30183323 99199210 96881809 147006226 145642545 X 1582812 -3900213 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 55315775 3560210 -75944 1596142 7500000 49703899 48432886 1085136 7869667 2071914 55315775 44686604 1508921 4500781 2263420 48432886 61779947 1610755 -16834873 1869225 44686604 0.16000 0.84000 1 0 16448335 16448335 83227377 33432953 49794424 28120900 17213773 10907127 6899167 559173 6339994 83489880 7814626 F HIGHBRIDGE CAPITAL 1984625 F BAY RESOURCE PARNTERS 23231 F ONE WILLIAM ST. OFFSHORE FD 1514673 F BENEFICIAL INTERESTS IN ASSETS HELD BY OTHERS 31017647 F 42354802 AGENCY FUNDS PAYABLE 521402 UNAMORTIZED BOND PREMIUM 234156 REFUNDABLE ADVANCES - GRANTS 1960967 FAIR VALUE - INTEREST RATE SWAP 4828823 7545348 83082046 81499234 1582812 -1590009 -2310204 -3900213 -2317401 57993292 -25227990 -25227990 83221282 -139236 -139236 83082046 60310693 4039449 4039449 56271244 25227990 25227990 81499234 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: 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 WHEN THE RECOGNITION THRESHOLD IS MET. MANAGEMENT HAS DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN FISCAL YEAR 2012 AND 2011. 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, 2011, 2010, AND 2009 REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 8 - OTHER ADJUSTMENTS: UNREALIZED LOSSES ON INTEREST RATE SWAPS -1,913,918. CHANGES IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS -396,286. TOTAL TO SCHEDULE D, PART XI, LINE 8: -2,310,204. PART XII, LINE 2D - OTHER ADJUSTMENTS: INSTITUTIONALLY FUNDED FINANCIAL AID -25,227,990. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -139,236. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 139,236. UNREALIZED LOSS ON INTEREST RATE SWAPS 1,913,918. CHANGES IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS 396,286. NET UNREALIZED LOSSES ON INVESTMENTS 1,590,009. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INSTITUTIONALLY FUNDED FINANCIAL AID 25,227,990. 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 45800 35375 10425 0 3588 7897 3009 45800 35375 10425 3588 7897 3009 14494 -4069 1 COLLEGE ENDOWED SCHOLARSHIPS 2015 26227159 EPAT GRANT; SCHOLARSHIP 5 110000 HOLY CROSS MISSION DEVELOPMENT SCHOLARSHIP 7 7000 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 152332 0 0 0 0 0 15701 0 7156 0 175189 0 0 0 DR BERNARD HEALEY 159971 0 0 0 0 0 10205 0 3834 0 174010 0 0 0 NICHOLAS HOLODICK EDD 157338 0 0 0 0 0 14512 0 3831 0 175681 0 0 0 BARRY WILLIAMS CPA JD 131761 0 0 0 0 0 11657 0 6687 0 150105 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 DR. LISA MARIE MCCAULEY 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 DR. LISA MARIE MCCAULEY 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. PA HIGHER EDUCATIONAL FACILITIES AUTHORITY 232243852 70917NVQ4 2003-06-01 10500000 TO FINANCE CLOSNG OF N FRNKLN ST, MISC CAPITAL PROJ, PAY ISS COSTS, ADV RFND 0 0 0 CITY OF WILKES-BARRE FINANCE AUTHORITY 205684698 968250AA8 2007-05-01 12000000 TO FINANCE RENOV OF STUDENT RES HALLS & GYM, ACQ OF CAP EQPT, SITE IMPRVMTS 0 0 0 11036340 9893131 120606 1024962 2003 1 0 1 1 12000000 167205 12018547 2008 0 0 1 1 0 1 1 1 0 1 0 1 1 1 0 1 1 1 0 0 0 1 1 1 0 0 0 1 CHARLES PARENTE DIRECTOR 193912 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 149204 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 118000 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 4541973 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 1660451 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 1660451 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 1660451 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 1660451 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 1660451 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 JAMES GETZ DIRECTOR 1660451 MR. GETZ 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 1660451 MR. SHOVAL 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 JOHN O'BRIEN DIRECTOR 1660451 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 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. DAVID TYSON, 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 EASTERN PROVINCE OF HOLY CROSS. THE PRIESTS THAT ARE MEMBERS OF THE BOARD OF DIRECTORS MAY ALSO BE MEMBERS OF THE EASTERN PROVINCE. MR. BENJAMIN SHOVAL (DIRECTOR) AND Y. JUDD SHOVAL (DIRECTOR EMERITUS) HAVE A FAMILY RELATIONSHIP. 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 ONE WEEK 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 ANY CONCERNS ARE ADDRESSED AS NECESSARY. FORM 990, PART VI, SECTION B, LINE 12C THE ASSISTANT SECRETARY 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 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 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 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,590,009. UNREALIZED LOSSES ON INTEREST RATE SWAPS -1,913,918. CHANGES IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS -396,286. TOTAL TO FORM 990, PART XI, LINE 5: -3,900,213. 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.