2013-11-15T10:20:07-06:00 2013-06-30 420714325 MCGLADREY LLP 8040 EXCELSIOR DR STE 300 MADISON WI 53717 990 2012-07-01 390833612 WISCONSIN ALUMNI RESEARCH FOUNDATION WISC 6082632825 614 WALNUT STREET 13TH FLOOR MADISON WI 53726 STEVEN MIXTACKI 6082632825 2013-11-12 1 JAMES G GRAHAM P00006111 6088333361 2012 2015-11-30 17:44:51Z STEVEN MIXTACKI 614 WALNUT STREET 13TH FLOOR MADISON WI 53726 245734995 0 X WWW.WARF.ORG X 1925 WI TO PROVIDE THE MARGIN OF EXCELLENCE THE UNIVERSITY OF WISCONSIN - MADISON NEEDS TO FULFILL ITS ROLE AS A TWENTY-FIRST CENTURY LEADER IN RESEARCH, DISCOVERY AND INNOVATION.ALSO PROMOTE, ENCOURAGE, AND AID SCIENTIFIC INVESTIGATION AND RESEARCH AT THE UNIVERSITY OF WISCONSIN - MADISON AND THE MORGRIDGE INSTITUTE FOR RESEARCH BY:-HELPING TO COMMERCIALIZE THE TECHNOLOGY ARISING FROM THAT RESEARCH FOR THE BENEFIT OF HUMANKIND-INVESTING THE PROCEEDS OF THE COMMERCIALIZATION EFFORTS AND USE THE ADDED VALUE FROM OUR INVESTMENTS TO PROMOTE, ENCOURAGE, AND AID FURTHER SCIENTIFIC INVESTIGATION AND RESEARCH AT AND WITHIN THE UNIVERSITY OF WISCONSIN - MADISON AND THE MORGRIDGE INSTITUTE FOR RESEARCH. 17 16 118 0 62025 -1111108 540215 1234743 40119675 92021188 269861940 145897586 5940194 6581478 316462024 245734995 56194313 88398669 0 0 12757170 13640750 0 0 0 41103242 55004878 110054725 157044297 206407299 88690698 2586641488 2664532026 464463473 464115638 2122178015 2200416388 X SEE PART I, LINE 1 0 0 122834284 70608490 93188861 DIRECT FISCAL 2012-2013 GRANTS OF $70,608,490 WERE MADE TO THE UNIVERSITY OF WISCONSIN - MADISON. THE GRANTS PROVIDED THE UNIVERSITY THE FLEXIBILITY TO CREATE COMPETITIVE PACKAGES TO RECRUIT OR RETAIN 105 PROFESSORS AND HELP FUND PROGRAMS TO RECRUIT AND RETAIN TOP QUALITY GRADUATE STUDENTS. THROUGH THE FALL RESEARCH COMPETITION, THE FOUNDATION FUNDED 382 AWARDS AIMED AT SUPPORTING JUNIOR FACULTY AS THEY BUILD THEIR RESEARCH PROGRAMS. THE FOUNDATION ALSO MATCHED 232 GRANTS, WHICH ALLOWED THE UNIVERSITY TO APPLY FOR AND ACCEPT EXTERNAL RESEARCH SUPPORT REQUIRED A MATCH FROM THE INSTITUTION. THE DIRECT GRANTS ALSO SUPPORTED 8 NAMED PROFESSORSHIPS, 11 NEW KELLETT MID-CAREER FELLOWSHIPS AND 13 NEW ROMNES FACULTY FELLOWSHIPS. IN ADDITION, 124 WARF GRADUATE FELLOWSHIPS WERE WHOLLY OR PARTIALLY FUNDED BY THE FOUNDATION. THROUGH THE ENDOWMENT FOR EXCELLENCE, THE FOUNDATION FUNDED 45 INTERDISCIPLINARY FACULTY MEMBERS IN THE FOLLOWING AREAS; AGRONOMY, ANATOMY, ASTRONOMY, BACTERIOLOGY, BIOMEDICAL ENGINEERING, BIOCHEMISTRY, BIOMOLECULAR CHEMISTRY, BOTANY/STATISTICS, CHEMISTRY, COMPARATIVE BIOSCIENCES, COMPUTER SCIENCE, COMMUNICATIVE DISORDERS, ENTOMOLOGY, ELECTRICAL & COMPUTER ENGINEERING, ENGINEERING PHYSICS, GENERA AND WOMEN'S STUDIES, GENETICS, MATERIAL SCIENCE AND ENGINEERING, MATH/ECE, MATHEMATICS, MATERIAL SCIENCE, MECHANICAL ENGINEERING, MED MICRO & IMMUNOLOGY, PHARMACY, PHARMACOLOGY, PHYSICS, PLANT PATHOLOGY, PSYCHOLOGY, PHYSIOLOGY, RADIOLOGY, AND URBAN & REGIONAL PLANNING.THE PATENT AND LICENSING FUNCTION PRODUCED THE FOLLOWING RESULTS DURING THE YEAR: THE UNIVERSITY OF WISCONSIN - MADISON DISCLOSED 386 INVENTIONS TO THE WISCONSIN ALUMNI RESEARCH FOUNDATION. THE FOUNDATION FILED 306 U.S. PATENT APPLICATIONS AND 236 FOREIGN PATENT APPLICATIONS ON BEHALF OF THE UNIVERSITY OF WISCONSIN. DURING THE 2012-2013 FISCAL YEAR 154 U.S. PATENTS AND 145 FOREIGN PATENTS WERE GRANTED TO THE FOUNDATION BY THE RESPECTIVE PATENT OFFICES.UNDER FEDERAL LAW (I.E. THE BAYH DOLE ACT) UNIVERSITIES OR THEIR 501(C)(3) PATENT MANAGEMENT ORGANIZATIONS HAVE THE RIGHT TO TAKE TITLE TO INVENTIONS MADE IN THE COURSE OF UNIVERSITY RESEARCH FUNDED IN WHOLE OR IN PART BY AN AGENCY OF THE FEDERAL GOVERNMENT. THE UNIVERSITY OF WISCONSIN - MADISON HAS DELEGATED THIS RIGHT TO WARF. WARF IS THE DESIGNATED PATENT MANAGEMENT ORGANIZATION FOR THE UNIVERSITY OF WISCONSIN - MADISON AND IN THAT ROLE WARF EXERCISES THE UNIVERSITY'S RIGHTS AND OBLIGATIONS UNDER THE BAYH DOLE ACT. DURING THE 2012-2013 FISCAL YEAR, 55 LICENSES AND OPTIONS AGREEMENTS AND 2 EQUITY AGREEMENTS WERE CONCLUDED WITH INDUSTRIAL FIRMS. 17790179 17790179 2749271 THE MORGRIDGE INSTITUTE FOR RESEARCH WAS ESTABLISHED ON NOVEMBER 24, 2006 TO SUPPORT MEDICAL RESEARCH AND EDUCATION AT THE UNIVERSITY OF WISCONSIN-MADISON IN CONJUNCTION WITH THE UNIVERSITY OF WISCONSIN HOSPITALS AND CLINICS AUTHORITY. THE PRIMARY PURPOSES FOR THE INSTITUTE ARE AS FOLLOWS:1) COLLABORATION - SPARK RESEARCH COLLABORATIONS ACROSS THE SCIENCES AND THE UW-HOSPITAL THAT ACCELERATE BREAKTHROUGH DISCOVERIES TO IMPROVE HUMAN HEALTH.2) INTERACTION - FOSTER INTERACTION BETWEEN PUBLIC AND PRIVATE RESEARCH THAT BREAKS DOWN BARRIERS BETWEEN RESEARCHERS, LABS AND SCIENTIFIC DISCIPLINES.DURING FISCAL 2012-2013, THE MORGRIDGE INSTITUTE FOR RESEARCH MAINTAINED THE FOLLOWING PROGRAMS:CORE COMPUTATIONAL TECHNOLOGY: -DEVELOP A CYBER-INFRASTRUCTURE THAT PROVIDES HIGH THROUGHPUT COMPUTING AND FOSTERS COLLABORATIVE WORK WITH GLOBAL PARTNERS-DEVELOP SOFTWARE ASSURANCE MARKETPLACE THAT AIDS OPEN SOURCE SOFTWARE DEVELOPERS AND SOFTWARE ASSURANCE TOOLS THAT DEVELOPERS CAN CREATE A MORE SECURE CYBER INFRASTRUCTURE BY OFFERING THE CAPACITY NEEDED TO CONTINUOUSLY TEST AND "REBUILD" THE CODE UNDERLYING CRITICAL INFRASTRUCTURE APPLICATIONS.REGENERATIVE BIOLOGY:- TO UNDERSTAND AND IDENTIFY THE GENOMICS OF THE HUMAN EMBRYONIC STEM CELL- TO CREATE PHYSIOLOGICALLY STABLE, SAFE, AND FUNCTIONAL CELLS TO REPAIR OR REPLACE DISEASED CELLS IN HUMANSEDUCATION RESEARCH:- SEEK TO IMPROVE PUBLIC UNDERSTANDING OF KEY CONCEPTS IN SCIENCE, BIOMEDICINE, AND HEALTHCARE BY BECOMING A "GO-TO" PLACE FOR GAMES AND SIMULATION-BASED LEARNING RESOURCES IN THE BIOMEDICAL AND HEALTH SCIENCESMEDICAL DEVICE:- DEVELOP AN UNDERSTANDING OF MEDICAL PROBLEMS THAT CAN POTENTIALLY BE HELPED WITH MEDICAL DEVICES- INVENT, DESIGN, BUILD, ENHANCE, AND TEST MEDICAL DEVICES- MAKE THE TRANSLATION OF MEDICAL DEVICES TO THE CLINIC MORE EFFICIENT, EFFECTIVE, AND SAFEVIROLOGY:- ADVANCE PRACTICAL UNDERSTANDING, PREVENTION, AND TREATMENT OF VIRUSES AND THEIR DISEASES- ENHANCE UNDERSTANDING OF THE BIOLOGY OF HEALTHY CELLS AND TISSUES- DEVELOP NEW TOOLS DERIVED FROM VIRUSES FOR USE IN BIOTECHNOLOGY, NANOTECHNOLOGY, AND MEDICINE PHARMACEUTICAL INFORMATICS:- DEVELOP A NETWORK OF FUNDAMENTAL RESEARCH PROJECTS IN COMPUTATIONAL CHEMISTRY AND COMPUTATIONAL BIOLOGY- DEVELOP COMPOUNDS THAT ARE SAFE AND VIABLE THAT SOLVE DISEASE MODELS- EXPAND THE CHEMICAL LIBRARY THROUGH PETASCALE COMPUTATIONAL CHEMISTRY- DEVELOP NEW ECONOMIC MODELS FOR ALLIANCES BETWEEN INDUSTRY AND UNIVERSITIESOUTREACH EXPERIENCES:- MAKE THE SCIENCE TAKING PLACE AT THE MORGRIDGE INSTITUTE ACCESSIBLE, EXCITING AND RELEVANT TO STUDENTS OF ALL AGES AND ALL WALKS OF LIFE- ASSIST THE MORGRIDGE EDUCATION RESEARCH CHALLENGE AREA IN DEVELOPING CONTENT FOR ITS DIGITAL LEARNING PLATFORMS- CREATE MATERIAL AND HANDS-ON INTERFACES RELATED TO MORGRIDGE RESEARCH FOR THE INFORMAL LEARNING ENVIRONMENT IN THE TOWN CENTER AT THE WISCONSIN INSTITUTES FOR DISCOVERY 0 0 WICELL'S PRIMARY PURPOSE IS TO SUPPORT HUMAN EMBRYONIC STEM CELL RESEARCH AT THE UNIVERSITY OF WISCONSIN - MADISON; PROVIDE SCIENTIFIC RESEARCH AND INVESTIGATION INTO THE CULTURE, DEVELOPMENT AND DIFFERENTIATION OF HUMAN AND ANIMAL EMBRYONIC STEM CELLS; DISTRIBUTE CELLS; TEACH SCIENTISTS HOW TO SUCCESSFULLY CULTURE THE CELLS; EDUCATE THE GENERAL PUBLIC ABOUT THE SCIENCE; LICENSE THE TECHNOLOGY TO OTHER QUALIFIED RESEARCH ORGANIZATIONS TO PROMOTE ADDITIONAL SCIENTIFIC RESEARCH IN THIS AREA. WICELL DISTRIBUTES HUMAN AND ANIMAL EMBRYONIC STEM CELLS AND LICENSES THE RELATED TECHNOLOGY ONLY TO QUALIFIED RESEARCH ORGANIZATIONS WHICH COMMIT TO CARRY ON SUCH RESEARCH IN AN ETHICAL MANNER.THE SCIENTIFIC RESEARCH CARRIED OUT BY WICELL AND OTHERS WHO ACQUIRE CELLS AND THE RIGHT TO USE THE RELATED TECHNOLOGY HAVE AS THEIR OBJECTIVE THE EVENTUAL USE OF CELLS TO TREAT OR PREVENT DISEASE AND TO ENABLE DEFECTIVE OR INJURED BODY PARTS OR SYSTEMS TO BE REPAIRED OR REPLACED, AS WELL AS TO UNDERSTAND EARLY HUMAN DEVELOPMENT.WICELL LABORATORY OPERATIONS ARE LOCATED IN THREE SEPARATE FACILITIES: 1. A LABORATORY LOCATED AT 5501 RESEARCH PARK BLVD. IS USED FOR CYTOGENETIC TESTING. 2. A LABORATORY LOCATED AT 505 ROSA ROAD IN THE UW RESEARCH PARK IN MADISON, WISCONSIN IS USED FOR CELL DISTRIBUTION AND CORE SCIENTIFIC SUPPORT FOR STEM CELL ACTIVITIES AT THE UNIVERSITY OF WISCONSIN-MADISON. 3. ANOTHER LABORATORY, ALSO LOCATED AT 505 ROSA ROAD, IS USED TO DERIVE AND CHARACTERIZE NEW, NON-FEDERALLY APPROVED, CELL LINES.DURING FISCAL YEAR 2012-2013 WICELL DISTRIBUTED 270 HUMAN CELL LINES TO COMMERCIAL AND ACADEMIC RESEARCH LABORATORIES BRINGING THE TOTAL CELL LINES DISTRIBUTED TO DATE TO 2,754.WICELL OPERATES ITS RESEARCH FACILITIES WITH 20 SCIENTISTS AND RESEARCH TECHNICIANS. 0 0 THE WISYS TECHNOLOGY FOUNDATION WAS ESTABLISHED IN MARCH 2000 TO PROVIDE TECHNOLOGY TRANSFER SERVICE FOR THE UNIVERSITY OF WISCONSIN CAMPUSES EXCLUDING THE UNIVERSITY OF WISCONSIN-MADISON AND THE UNIVERSITY OF WISCONSIN-MILWAUKEE. THE MISSION OF WISYS IS TO PROVIDE PROTECTION FOR TECHNOLOGY THROUGH PATENTS OR OTHER METHODS, FOR THE UW SYSTEM FACULTY'S DISCOVERIES AND TO NEGOTIATE LICENSE AGREEMENTS THAT ENABLE INDUSTRY TO COMMERCIALIZE INVENTIONS FROM UW SYSTEMS' INSTITUTIONS.DURING FISCAL YEAR 2012-2013 WISYS REVIEWED 26 NEW INVENTION DISCLOSURES RECEIVED FROM UW-SYSTEM FACULTY AND ACCEPTED 8 OF THE DISCLOSURES FOR FURTHER STUDY AND PATENTING. DURING FISCAL 2012-2013, WISYS APPLIED FOR 20 U.S. PATENTS AND DERIVATIVES. IN ADDITION, WISYS RECEIVED 6 U.S. ISSUED PATENTS AND 1 FOREIGN ISSUED PATENTS. WISYS COMPLETED 6 NEW LICENSE AND OPTIONS AGREEMENTS AND 5 NEW MATERIAL TRANSFER AGREEMENTS. WISYS OPERATES ITS OFFICES LOCATED AT 614 WALNUT STREET, MADISON, WISCONSIN WITH 6 EMPLOYEES. 140624463 1 1 0 1 0 0 0 0 0 0 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 895 0 1 118 1 1 1 0 0 0 0 0 0 0 0 0 X 17 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 WI X X STEVEN MIXTACKI 6082611954 614 WALNUT STREET 13TH FLOOR MADISON WI 53726 ERNEST A MICEK 2.00 2.00 X X 15000 35000 0 JOHN P MORGRIDGE 2.00 2.00 X 0 0 0 LEE RAYMOND 2.00 X 0 0 0 DORIS MEISSNER 2.00 X 15000 0 0 THOMAS F PYLE 2.00 3.00 X 20000 0 0 CAROL N SKORNICKA 2.00 2.00 X 15000 10000 0 JOAN E SPERO 2.00 2.00 X 20000 5000 0 JAN K VER HAGEN 2.00 3.00 X 10000 10000 0 GORDON F BRUNNER 2.00 1.00 X 11000 0 0 CARL E GULBRANDSEN 34.00 6.00 X X 649089 20000 193117 PATRICIA LIPTON 2.00 2.00 X X 20000 20000 0 KEITH R LOBO 2.00 X 28000 0 0 PETER P TONG 2.00 X 25750 0 0 NORMAN BOBINS 2.00 X 20000 0 0 JOHN ROWE 2.00 3.00 X X 20000 10000 0 DAVID WARD 2.00 X 15000 0 0 JAMES BERBEE 2.00 X 10000 0 0 STEVE MIXTACKI 39.00 1.00 X 317355 0 130680 LEIGH CAGAN 40.00 X 318591 0 123222 MICHAEL FALK 40.00 X 331092 0 120963 CARRIE THOME 40.00 X 546091 0 108535 ALAIN HUNG 40.00 X 453102 0 120006 KENNETH LUTZ 39.80 0.20 X 227465 0 260011 STEPHANIE ADAMANY 40.00 X 193251 0 76266 LAURA HEISLER 40.00 X 164977 0 94254 KATHI STANEK 40.00 X 219400 0 104541 3665163 110000 1331595 36 0 1 0 QUARLES & BRADY LLP 33 E MAIN ST SUITE 900 MADISON WI 53703 LEGAL SERVICES 2724635 ROBINS KAPLAN MILLER & CIRESI LLP 2800 LASALLE PLAZA 800 LASALLE AVE MINNEAPOLIS MN 554022015 LEGAL SERVICES 1878981 CPA GLOBAL LTD LIBERATION HOUSE CASTLE STREET ST HELIER CHANNEL ISLANDS JE JE1 1BL PATENT LEGAL/ANNUITY SERVICE 1548953 BOYLE FREDERICKSON 840 N PLANKINTON AVE MILWAUKEE WI 53203 LEGAL SERVICES 773073 DEWITT ROSS & STEVENS 2 E MIFFLIN ST SUITE 600 MADISON WI 537032865 LEGAL SERVICES 729861 23 1234743 865969 1234743 LICENSING 900099 54990698 54990698 ROYALTIES 900099 37030490 37030490 92021188 30851984 30851984 2602509 0 2602509 2602509 2602509 115045602 0 115045602 115045602 115045602 MIR BLDG COSTS REIMBURSEMENT 900099 1721272 1721272 LITIGATION SETTLEMENT 900099 1238979 1238979 MIR ADMIN REIMBURSEMENT 900099 1027999 1027999 -9281 -71306 62025 3978969 245734995 95938132 62025 148500095 88398669 88398669 4374962 1080321 3294641 6534146 3712292 2821854 1105512 611433 494079 1072472 630374 442098 553658 280097 273561 29095 29095 3181097 3181097 224998 52183 172815 240229 240229 6293050 6293050 1305870 1044939 260931 185909 82163 103746 421639 318038 103601 543756 79343 464413 18854645 18854645 1342987 968998 373989 182493 92253 90240 -195467 -227660 32193 6700870 6647526 53344 5923596 5730430 193166 374788 187449 187339 DOMESTIC LEGAL/PATENTS 3799363 3799363 FOREIGN LEGAL/PATENTS 2726122 2726122 FOREIGN PATENT MTC FEES 1285232 1285232 US PATENT MTC FEES 368220 368220 1216386 720936 495450 157044297 140624463 16419834 0 9229781 12431085 131544 4446588 29879960 0 210153 1348672 431244 121825 182884710 17869898 170873877 165014812 289449230 330088648 1941941757 1949837599 20333346 16935662 124160596 184307135 2586641488 2664532026 7942623 7653446 219501100 215729443 0 26671 159725748 156405120 77294002 84300958 464463473 464115638 X 1967786779 2040724388 154391236 159692000 2122178015 2200416388 2586641488 2664532026 X 88690698 -15010827 4558502 X X 0 1 X 1 0 X X 0 0 0 UNIVERSITY OF WISCONSIN-MADISON 396006492 2 1 1 1 70608490 1 70608490 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 240229 240229 140624463 140864692 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 235428 351485 262997 240229 1090139 250000 250000 250000 250000 1000000 1500000 15340740 15340740 142310126 9020877 133289249 970611 778953 191658 24263233 8070068 16193165 165014812 MONEY MARKET FUNDS 238073708 F HEDGE FUNDS 777004374 F FIXED INCOME 666185699 F PRIVATE EQUITY - LTD PS 242551390 F INVESTMENT IN WARF STARTUP COMPANIES 19613541 C VENTURE CAPITAL PARTNERSHIPS 6408887 F 1949837599 DUE FROM BROKER 112015954 SECURITIES LENDING COLLATERAL 64813711 UNAMORTIZED BOND ISSUE COSTS 2025019 DUE FROM MORGRIDGE 3605605 PREPAID PENSION BENEFITS 1846846 184307135 ROYALTIES PAYABLE 1852938 DUE TO BROKER 17634309 SECURITIES LENDING CASH COLLATERAL OBLIGATION 64813711 84300958 X 206455718 -15010827 -15010827 221466545 24268450 24268450 245734995 132775847 0 132775847 24268450 24268450 157044297 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE FOUNDATION, WICELL, WISYS, PROPERTIES, AND MORGRIDGE HAVE BEEN GRANTED AN EXEMPTION FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. UNDER THIS EXEMPTION, INCOME TAX IS PAID ONLY ON NET UNRELATED BUSINESS INCOME. THE ORGANIZATIONS ARE ALSO EXEMPT FROM WISCONSIN INCOME AND REAL ESTATE TAX. THE ORGANIZATION FOLLOWS THE GUIDANCE RELATIVE TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE ORGANIZATION MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. EXAMPLES OF TAX POSITIONS INCLUDE THE TAX-EXEMPT STATUS OF THE ORGANIZATION AND VARIOUS POSITIONS RELATED TO THE POTENTIAL SOURCES OF UNRELATED BUSINESS TAXABLE INCOME (UBIT). ANY TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50 PERCENT LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE ORGANIZATION FILES FORMS 990 IN THE U.S. FEDERAL JURISDICTION AND THE STATE OF WISCONSIN. WITH FEW EXCEPTIONS, THE ORGANIZATION IS NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR YEARS BEFORE FISCAL YEAR 2010. PART XI, LINE 4B - OTHER ADJUSTMENTS: SHARED ROYALTIES NETTED AGAINST INCOME IN AUDIT 18,854,645. REIMBURSED EXPENSES FROM AFFILIATE NETTED AGAINST EXPENSES IN AUDIT 5,351,780. UBIT REVENUE RECORDED IN EXPENSES IN AUDIT 62,025. PART XII, LINE 4B - OTHER ADJUSTMENTS: SHARED ROYALTIES NETTED AGAINST EXPENSES IN AUDIT 18,854,645. REIMBURSED EXPENSES FROM AFFILIATE NETTED AGAINST EXPENSES IN AUDIT 5,351,780. UBIT REVENUE RECORDED IN EXPENSES IN AUDIT 62,025. 1 UNIVERSITY OF WISCONSIN - MADISON 1025 W JOHNSON ST MADISON WI 53706 396006492 115 70608490 SEE PROGRAM SERVICE ACCOMPLISHMENTS; FORM 990, PART III, LINE 4A MORGRIDGE INSTITUTE FOR RESEARCH 330 N ORCHARD ST MADISON WI 537151119 208325570 501(C)(3) 17790179 SEE PROGRAM SERVICE ACCOMPLISHMENTS; FORM 990, PART III, LINE 4B 2 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: 1) UW - THE UNIVERSITY PROVIDES WARF WITH AN ANNUAL SUMMARY OF GRANT EXPENDITURES THAT DETAILS HOW THE GRANT FUNDS WERE SPENT FROM THE PREVIOUS YEAR. 2) MIR & WICELL - WARF HAS ACCESS TO THE FINANCIAL STATEMENTS OF THESE ORGANIZATIONS. ALSO, THE WARF MANAGING DIRECTOR CARL GULBRANDSEN SITS ON THE BOARD OF MIR AND WICELL. X X X X X 0 0 0 0 0 0 0 0 0 CARL E GULBRANDSEN 489089 20000 160000 0 0 0 159689 0 33428 0 842206 20000 0 0 STEVE MIXTACKI 277160 0 40195 0 0 0 102668 0 28012 0 448035 0 0 0 LEIGH CAGAN 236747 0 81844 0 0 0 94586 0 28636 0 441813 0 0 0 MICHAEL FALK 266601 0 64491 0 0 0 92146 0 28817 0 452055 0 0 0 CARRIE THOME 371091 0 175000 0 0 0 76600 0 31935 0 654626 0 0 0 ALAIN HUNG 303102 0 150000 0 0 0 89420 0 30586 0 573108 0 0 0 KENNETH LUTZ 202475 0 24990 0 0 0 232697 0 27314 0 487476 0 0 0 STEPHANIE ADAMANY 168982 0 24269 0 0 0 49448 0 26818 0 269517 0 0 0 LAURA HEISLER 144734 0 20243 0 0 0 68049 0 26205 0 259231 0 0 0 KATHI STANEK 194700 0 24700 0 0 0 77343 0 27198 0 323941 0 0 0 A COMMUNITY DEVELOPMENT AUTHORITY- CITY OF MADISON 396006968 2009-12-17 161453470 FOR CONSTRUCTING A RESEARCH FACILITY LOCATED ON THE CAMPUS OF UW-MADISON 0 0 0 A 161453470 2531768 151543609 7378093 2010 0 0 1 1 A 0 1 0 1 1 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 0 0 0 0 0 0 A 1 SCH K, PART III, #2 PRIVATE BUSINESS USE ALTHOUGH THERE IS PRESENTLY NO PRIVATE BUSINESS USE OF THE BOND-FINANCED PROPERTY, A SIGNIFICANT PORTION OF THE PROPERTY IS CURRENTLY OCCUPIED BY THE MORGRIDGE INSTITUTE FOR RESEARCH, INC., A 501(C)(3) ORGANIZATION ("MORGRIDGE"). AS A MEDICAL RESEARCH ORGANIZATION THAT COLLABORATES WITH PRIVATE INDUSTRY IT IS POSSIBLE THAT SOME OF THE ACTIVITY ON THE PROPERTY COULD RESULT IN PRIVATE BUSINESS USE. HOWEVER, MORGRIDGE IS AWARE OF THE LIMITATIONS ON PRIVATE USE, AND PROCEDURES HAVE BEEN PUT IN PLACE FOR WARF AND MORGRIDGE TO TRACK PRIVATE USE TO ENSURE COMPLIANCE WITH BOND REQUIREMENTS. X 1 865969 FMV 0 0 0 NON REPORTING OF REVENUE: PART I, LINE 33: THE ORGANIZATION RECEIVED SHARES OF STOCK VALUED AT $29,879,960 TO OFFSET A PLEDGE RECEIVABLE THAT WAS RECORDED AS REVENUE FOR THE YEAR ENDED JUNE 30, 2011. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS INITIALLY REVIEWED AND APPROVED BY THE CFO, CONTROLLER AND OTHER MEMBERS OF THE MANAGEMENT TEAM. AN ELECTRONIC COPY OF THE FINAL VERSION OF THE FORM 990 IS SUBSEQUENTLY PROVIDED TO THE BOARD OF TRUSTEES FOR REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE WARF MANAGING DIRECTOR REQUIRES THAT THE TRUSTEES REVIEW THE CONFLICT OF INTEREST POLICY AND COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY. WARF REVIEWS CONFLICT MATTERS AS DISCLOSED THROUGH THE ANNUAL DISCLOSURE AND ON A ROLLING BASIS AND CONSIDERS THEM IN THE MATTER PROSCRIBED IN ITS CONFLICT POLICY. A CONFLICT OF INTEREST COMMITTEE OF THE BOARD OF TRUSTEES ALSO MEETS AS APPROPRIATE TO CONSIDER CONFLICT SITUATIONS. ALL WARF EMPLOYEES SIGN A CONFLICT OF INTEREST AGREEMENT. THE AGREEMENT REQUIREMENTS ARE REVIEWED ANNUALLY AT AN EMPLOYEE MEETING. FORM 990, PART VI, SECTION B, LINE 15 A) WARF RETAINS A NATIONAL INDEPENDENT HUMAN RESOURCES CONSULTING FIRM SPECIALIZING IN COMPENSATION ACTIVITIES TO REVIEW COMPENSATION FOR THE MANAGING DIRECTOR, TOP MANAGEMENT, OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THE CONSULTANT IS RETAINED BY AND REPORTS TO THE CHAIR OF THE SALARY AND FRINGE BENEFITS COMMITTEE AND TO THE TRUSTEE PRESIDENT. B) EACH YEAR IN MID AUGUST THE CONSULTANT PROVIDES COMPARATIVE COMPENSATION DATA TO THE TRUSTEE PRESIDENT AND THE SALARY AND FRINGE BENEFITS COMMITTEE. C) THE TRUSTEE PRESIDENT REVIEWS A WRITTEN SUMMARY OF EXECUTIVE ACCOMPLISHMENTS FOR THE FISCAL YEAR. THIS INFORMATION IS SHARED WITH THE SALARY AND FRINGE BENEFITS COMMITTEE AND WITH THE BOARD'S EXECUTIVE COMMITTEE. D) IN LATE AUGUST OR EARLY SEPTEMBER THE SALARY AND FRINGE BENEFITS COMMITTEE HOLDS A TELECONFERENCE TO DISCUSS THE GENERAL DIRECTION AND SCOPE/RANGE OF EXECUTIVE COMPENSATION. THE OUTSIDE CONSULTANT PARTICIPATES IN THE DISCUSSION. E) IN MID SEPTEMBER THE BOARD PRESIDENT AND THE CHAIR OF THE SALARY AND FRINGE BENEFITS COMMITTEE DISCUSS THE EXECUTIVE EVALUATION AND DETERMINE THE COMPENSATION ADJUSTMENT. F) THE SALARY AND FRINGE BENEFITS COMMITTEE REVIEWS THE RECOMMENDATION IN (E) ABOVE AND APPROVES FINAL COMPENSATION ADJUSTMENTS. G) THE CHAIRMAN OF THE SALARY AND FRINGE BENEFITS COMMITTEE REVIEWS THE COMPENSATION ADJUSTMENTS WITH THE FULL BOARD AT THE FALL TRUSTEE MEETING. H) THE OUTSIDE CONSULTANT PROVIDES A LETTER TO THE CHAIR OF THE SALARY AND FRINGE BENEFITS COMMITTEE DESCRIBING THE CONSULTANT'S ROLE IN ESTABLISHING THE REBUTTABLE PRESUMPTION OF REASONABLENESS STANDARD UNDER THE INTERMEDIATE SANCTIONS REGULATIONS AND HOW THE CONSULTANT PROVIDED THE ANALYSIS TO DETERMINE THE REASONABLENESS OF THE EXECUTIVE COMPENSATION PACKAGE. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE NOT MADE AVAILABLE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: ALLOCATION OF INVEST APPREC TO DEPT ROYALTY TRUSTS,UNIVERSITY & DONOR FUNDS -4,007,938. EQUITY GAIN IN SUBSIDIARIES -3,397,684. APPRECIATION IN DONOR DIRECTED FUNDS 6,389,788. CHANGE IN MINIMUM PENSION OBLIGATION 5,574,336. FORM 990, PART XII, LINE 2C NO CHANGES FROM THE PRIOR YEAR. FILING OF FORM 8621 ON BEHALF OF WISCONSIN ALUMNI RESEARCH ORGANIZATION FORM 8621: WISCONSIN ALUMNI RESEARCH FOUNDATION OWNS A STAKE IN THE FOLLOWING PARTNERSHIPS WHICH HAVE INDIRECT INVESTMENTS IN PASSIVE FOREIGN INVESTMENT COMPANIES (PFICS), AND HAVE FILED FORM 8621 ON BEHALF OF WISCONSIN ALUMNI RESEARCH FOUNDATION: CHARTERHOUSE CAPITAL PARTNERS VII LP NO 2.1 PINEBRIDGE GLOBAL EMERGING MARKETS PARTNERS, LLC SIGULER GUFF BRIC OPPORTUNITIES FUND, LP SIGULER GUFF BRIC OPPORTUNITIES FUND II, LP DISCLOSURE OF REPORTABLE TRANSACTIONS FORM 8886: THE FOLLOWING INVESTMENTS OF WISCONSIN ALUMNI RESEARCH FOUNDATION HAVE FILED FORM 8886 DISCLOSING REPORTABLE TRANSACTIONS. AS A LIMITED PARTNER IN THESE INVESTMENTS, WISCONSIN ALUMNI RESEARCH FOUNDATION'S ALLOCABLE SHARE FROM THE RESPECTIVE PASSTHROUGH ENTITIES DOES NOT EXCEED THE THRESHOLD AMOUNTS. THEREFORE, WISCONSIN ALUMNI RESEARCH FOUNDATION HAS NOT PARTICIPATED IN A LOSS TRANSACTION REPORTABLE ON FORM 8886: COMMONFUND CAPITAL INTERNATIONAL PARTNERS V, LP COMMONFUND CAPITAL VENTURE PARTNERS VII, LP OAK HILL CAPITAL PARTNERS II (CAYMAN) LP WIND POINT PARTNERS V, L.P. 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