2012-05-09T09:20:46-05:00 2011-06-30 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 10017 990 2010-07-01 221500645 Seton Hall University SETO 9737619318 400 South Orange Avenue South Orange NJ 07079 Dennis J Garbini 9737619003 2012-05-09 Scott Thompsett 2125429609 2010 2016-02-24 21:20:13Z A Gabriel Esteban 400 South Orange Avenue South Orange NJ 07079 410708000 0 0928 X www.shu.edu X 1856 NJ Seton Hall University is a Catholic institution of higher education. 41 33 4447 80 1319000 0 39700000 37248000 275379000 285029000 8597000 8000000 12253000 12323000 335929000 342600000 85016000 92815000 0 0 150785000 150125000 0 0 4284000 95147000 94819000 330948000 337759000 4981000 4841000 501517000 529794000 203658000 192504000 297859000 337290000 X See Schedule OSeton Hall University is a major Catholic university. In a diverse and collaborative environment it focuses on academic and ethical development. Seton Hall students are prepared to be leaders in their professional and community lives in a global society and are challenged by outstanding faculty, an evolving technologically advanced setting,and values-centered curricula. Seton Hall University's 58-acre park-like campus is located in South Orange, New Jersey, only 14 miles west of New York City. The University is home to nine schools, including its Law School located in Newark , New Jersey. Its undergraduate and graduate enrollment is approximately 5,200 and 4,400, respectively. Seton Hall is the oldest diocesan university in the United States. It remains a pioneer in Catholic education. 0 0 212030000 84573000 290717000 Educational - Seton Hall University operates to provide baccalaureate, masters, and doctoral degrees. It enrolls 9,600 undergraduate and graduate students. The University is composed of nine schools located on two campuses. Day and evening sessions accomodate both commuter and residential students on a part-time and full time basis. 76013000 8033000 4690000 Academic Support and Student Services - Academic Support provides support services, such as libraries, academic technology, faculty curriculum development, for its primary missions of instruction, research and public service. Student services provide various services to students, which contribute to the students emotional and physical well-being and to their intellectual, cultural and social development outside the context of the University's formal instructional programs. 9653000 209000 0 Research, Training & Public Service - Enables faculty to explore new areas of education, learning and knowledge and provides non-instructional services to individuals and groups external to the University. The University also offers financial support to students through academic scholarships and work-study programs, which are funded by federal, state and private grants. 297696000 1 1 0 1 0 0 1 0 1 1 1 0 0 1 1 1 0 1 1 1 0 0 0 1 1 0 1 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 0 1 0 0 0 0 1 406 0 1 4447 1 1 1 0 0 0 0 1 1 0 0 0 0 X 41 33 1 0 1 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Dennis J Garbini Vice President of Finance & Technology 9737619003 400 South Orange Avenue South Orange NJ 070792692 A Gabriel Esteban PhD 45.00 X X 385078 0 88778 Most Reverend John J Myers 1.00 X 0 0 0 Most Reverend Paul G Bootkoski 1.00 X 0 0 0 Most Reverend Joseph AGalante 1.00 X 0 0 0 Most Reverend Arthur J Serratelli 1.00 X 0 0 0 Most Reverend William C Skurla 1.00 X 0 0 0 Most Reverend David M O'Connell 1.00 X 0 0 0 Reverend Monsignor James M Cafone 45.00 X 44911 0 56418 Reverend Monsignor John E Doran 1.00 X 0 0 0 Reverend Monsignor Robert Coleman 45.00 X 42453 0 51618 Reverend Monsignor Joseph R Reilly 45.00 X 24587 0 89444 Reverend Monsignor Robert J Wister 45.00 X 28359 7800 51618 Kurt T Borowsky 1.00 X 0 0 0 John J Schimpf 1.00 X 0 0 0 Bruce A Tomason 1.00 X 0 0 0 Patricia A Cahill Esq 1.00 X 0 0 0 Joseph P LaSala Esq 1.00 X 0 0 0 Patrick M Murray 1.00 X 0 0 0 Phillip Frese PhD 1.00 X 0 0 0 Pamela M Swartzberg Esq 1.00 X 0 0 0 William Aimetti 1.00 X 0 0 0 Robert E Baldini 1.00 X 0 0 0 Dr Eida H Berrio 1.00 X 0 0 0 Dr Gerald P Buccino 1.00 X 0 0 0 Henry F D'Allessandro 1.00 X 0 0 0 Mark E Ganton 1.00 X 0 0 0 Dr Antoine M Garibaldi 1.00 X 0 0 0 David B Gerstein 1.00 X 0 0 0 Dr Francis M Lazarus 1.00 X 0 0 0 Richard F Lieber 1.00 X 0 0 0 Michael J Lucciola 1.00 X 0 0 0 Phillip N Maisano 1.00 X 0 0 0 Kent Manahan 1.00 X 0 0 0 Richard Mandelbaum 1.00 X 0 0 0 Dr Rosalie M Mirenda 1.00 X 0 0 0 Donna M O'Brien 1.00 X 0 0 0 James M O'Brien 1.00 X 0 0 0 Edward J Quinn 1.00 X 0 0 0 Patrick P Randazzo Esq 1.00 X 0 0 0 Rachel M Sanford 1.00 X 0 0 0 Thomas J Sharkey 1.00 X 0 0 0 Larry A Robinson EdD 45.00 X 289477 0 27858 Dennis J Garbini MBA 45.00 X 239520 0 38984 Catherine A Kiernan JD 45.00 X 266101 0 43535 Joseph G Sandman PhD 45.00 X 301307 0 58565 Laura A Wankel EdD 45.00 X 238145 0 24763 Monsignor C Anthony ZiccardiSTDSSL 45.00 X 44257 0 51618 Kathleen Boozang JD LLM 45.00 X 284025 0 30227 Patrick E Hobbs JD LLM 45.00 X 397620 0 24209 Joyce Strawser PhD 45.00 X 166467 0 35076 Kevin Willard 45.00 X 672312 0 50197 Robert Gonzalez 45.00 X 474028 0 88036 Stephen Lubben JD LLM 45.00 X 405903 0 45893 Anne Donovan 45.00 X 283878 0 9675 John Menzies PhD 45.00 X 271187 0 20709 Monsignor Robert Sheeran 45.00 X 120485 0 55904 Karen E Boroff PhD 45.00 X 198732 0 38474 5178832 7800 981599 237 1 1 0 Gourmet Dining Services 400 south Orange Avenue South Orange NJ 07079 Catering 7660584 Temco Service Industries Inc One Park Avenue New York NY 10016 Housekeeping 3155133 Samuel S Graham Inc PO Box 319 East Hanover NJ 07936 General Contracting 1634864 Securitas Security PO Box 403412 Atlanta GA 303843412 Security 1159820 Henderson Constructors 350 East Butler Avenue Doylestown PA 18901 General Contracting 963208 58 492000 24492000 12264000 1437000 37248000 Tuition & Fees 900099 258806000 258806000 Room and Board 900099 26223000 26223000 285029000 5008000 9000 4999000 9000 9000 232000 71000 161000 70384000 136000 64673000 2864000 5711000 -2728000 2983000 2983000 408000 492000 526000 -118000 -118000 89000 45000 44000 44000 NCAA revenue sharing 900099 3187000 3187000 Athletics ticket sales 900099 1503000 1503000 Medical residency prog 900099 1466000 1466000 6009000 4222000 1239000 548000 12165000 342600000 295407000 1319000 8626000 40000 40000 92775000 92775000 3462000 1873000 1092000 497000 111085000 95699000 13505000 1881000 6912000 5954000 841000 117000 20593000 16981000 3263000 349000 8073000 6955000 981000 137000 689000 672000 14000 3000 540000 25000 515000 227000 227000 145000 145000 1429000 1429000 19537000 18560000 799000 178000 2259000 1566000 646000 47000 8144000 6261000 1643000 240000 5144000 2586000 2551000 7000 7468000 7439000 15000 14000 7847000 7224000 388000 235000 2496000 1936000 359000 201000 6551000 6528000 23000 13125000 12166000 925000 34000 1795000 30000 1765000 Repairs and maintenance 6214000 4714000 1363000 137000 Books and subscriptions 3886000 3838000 28000 20000 Bad debt provision 1500000 1500000 Pension cost settlement 1461000 1461000 Restructuring 1139000 1139000 3223000 2413000 623000 187000 337759000 297696000 35779000 4284000 77000 745000 23454000 29785000 13475000 11767000 4289000 3548000 171000 101000 14049000 13276000 4537000 5492000 409924000 198364000 221860000 211560000 161714000 186681000 53677000 63814000 4214000 3025000 501517000 529794000 36142000 33670000 8274000 7448000 129879000 122841000 29363000 28545000 203658000 192504000 X 176333000 199026000 45125000 61088000 76401000 77176000 297859000 337290000 501517000 529794000 X 4841000 34590000 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 1300 0 1 13950 1 147976 0 0 163226 0 Explanation of Other Lobbying Activities: Part II-B, Line 1i: Seton Hall University lobbied state legislators regarding annual independent college appropriations, student aid for independent college students and regulations affecting the University's College of Education and Human Services. Efforts consisted of direct mailings, phone calls and personal meetings. Part IV, Supplemental Information: Members of Congress were lobbied regarding earmarks for the College of Education and Human Service's programs designed to improve failing urban schools and with regard to federal student aid programs. The University's staff is involved in lobbying efforts. The value of that staff time is approximately $18,500. Those costs have been reported on Line 7 (other salaries and wages) and not separately identified on Line 11 (d) in Part IX, statement of Functional Expenses 1031000 X X X 0 166196000 2398000 78428000 4584000 4905000 2940000 234593000 152767000 4367000 20452000 4944000 5257000 1189000 166196000 209393000 1452000 -46790000 5055000 5883000 350000 152767000 0.46600 0.32900 0.20500 1 0 2819000 2819000 331261000 138724000 192537000 60484000 50820000 9664000 15360000 8820000 6540000 211560000 Outside trusts 7836000 F Hedge funds 21062000 F Commingled fund 20767000 F Private equity 12973000 F Venture capital 1176000 F 63814000 Refundable U.S. Government grants 12890000 Conditional asset retirement obligations 8940000 Interest rate swap agreements 5746000 Accrued postretirement benefit liability 969000 28545000 342600000 337759000 4841000 33715000 875000 34590000 39431000 287847000 33715000 484000 1161000 35360000 252487000 1428000 88685000 90113000 342600000 248416000 484000 277000 761000 247655000 1428000 88676000 90104000 337759000 Part III, Line 4: Collections are composed of: a mural, ancient Greek and Roman coins, book collections, paintings, wild life art collections, and special collection of research papers. Collections are utilized by students, faculty, administrators and the general public. Their usage helps achieve the ultimate goal of advancing the educational and research mission of the University. Description of Intended Use of Endowment Funds: Part V, Line 4: Endowment funds support the University's mission by providing a sustainable flow of funds to annual operations. This support includes funds for scholarships and for specific academic programs. The University has adopted an endowment spending policy designed to provide a predictable flow of funds to operations. The policy is intended to balance current spending needs and preserve the endowment's future purchasing power. The University applies a 4.5% spending rate to a three-year moving average of endowment investment funds. The Board of Regents sets the spending rate. The purpose of using a moving average is to smooth out any wide fluctuations in the market value. Endowment earnings in excess of the spending rate are added back to the principal of the endowment investments. In years when yield exceeds the amount appropriated under the spending policy the excess is returned to principal as appreciation. When annual yield is insufficient to support spending appropriations, the balance is provided from accumulated appreciation. Special allocations are made for certain purposes in addition to the spending rate, as approved by the University's Board of Regents, annually. Included in Part V, line 1c, net investment earnings is $36,321,000 of Endowment funds that were due to the operations of the University as of June 30, 2010. These funds were re-designated to quasi-endowment net assets in the fiscal year ended June 30, 2011. Description of Uncertain Tax Positions Under FIN 48: Part X: Other Liabilities - Income Taxes The FASB ASC Topic 740 established criterion that an individual tax position must meet for some or all of the benefits of that position to be recognized in an entity's financial statements. This standard required the University to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The University has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; determine its filing and tax obligations in jurisdictions for which it has nexus; and to review other matters that may be considered tax positions. The tax years ending 2008, 2009, 2010 and 2011 remain open to audit for both federal and state purposes. This standard was effective for the University on July 1, 2008, and did not have an impact on the University's financial statements Part XI, Line 8 - Other Change in value of interest rate swap agreements of $1,161,000 less provision for uncollectible contributions receivable of $277,000, and limited partnership income of $9,000. Part XII, Line 2d - Other Change in value of interest rate swap agreements. Part XII, Line 4b - Other Financial Aid of $89,247,000, plus limited partnership income of $9,000, net of special events expenses of $571,000. Part XIII, Line 2d - Other Provision for uncollectible contributions receivable. Part XIII, Line 4b - Other Financial aid of $89,247,000, net of special events expense of $571,000. 1 1 1 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 University's racially nondiscriminatory policy appears in its Undergraduate and Graduate catalogs, as well as in the Admissions Prospectus. It is also in all newspaper advertisements and the University's website. Explanation of Government Financial Assistance Schedule E, Part I, Line 6 The University participates in various Federal and State financial aid programs, which include, but are not limited to the following programs: Federal Direct Lending Program, Pell Grant, College Work Study, Supplemental Educational Opportunity Grant, Tuition Assistance Grant and Education Opportunity Fund. Central America and the Caribbean 0 0 Investments 26777000 East Asia and the Pacific 1 1 Program Services Student recruitment and student exchange programs with Chinese Universities. 45500 1 0 1 26822500 0 26822500 1 0 0 0 0 0 Seminary Banquet 150th Anniversary 264000 169000 95000 63000 35000 1000 26000 Law School Alumni Dinner Dance 202000 111000 91000 0 70000 12000 18000 8 434000 212000 222000 5000 81000 122000 45000 48000 900000 492000 408000 5000 144000 227000 58000 92000 526000 -118000 89000 45000 1 1.00000 89000 45000 45000 44000 NJ 1 0 0 0 1.00000 Ewa Bracko 400 South Orange Avenue South Orange NJ 07079 0 Catherine Cunning 0 Catherine Cunning does not receive any compensation for the services she renders to coordinate the University's gaming activities. These activities are part of her overall job responsibilities and accordingly, in the interests of Ms. Cunning's privacy, the University does not feel it appropriate to disclose her compensation on the Form 990. X 0 1 Village of South Orange 101 South Orange Avenue South Orange NJ 07079 226002309 115 40000 Construction of South Orange Performing Arts Center 1 Federal Awards 2166 9124000 State of New Jersey Awards 1709 8949000 Institutional Support 7556 74702000 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: All University spending must be approved by a manager or higher level, depending on the amount of the expenditure. Any expenditure of $5,000 or above would have to be approved by a Dean or other budget center manager. An expenditure in excess of $10,000 must be approved by a Vice President (or that person's designee) or the President. Grants or assistance to outside organizations are segregated in the University's financial accounting system through the use of a separate account code, which allows for review by University's central finance department. Scholarships are provided to students who are required to matriculate in the University, thereby ensuring that the funds are expended for the intended purpose. X X 0 1 X X X X X X 1 0 0 0 0 0 0 0 1 1 A Gabriel Esteban PhD 277509 0 100000 0 7569 0 19600 0 69178 0 473856 0 0 0 Larry A Robinson EdD 234409 0 50000 0 5068 0 18856 0 9002 0 317335 0 0 0 Dennis J Garbini MBA 230834 0 0 0 8686 0 19008 0 19976 0 278504 0 0 0 Catherine A Kiernan JD 258372 0 0 0 7729 0 19600 0 23935 0 309636 0 0 0 Joseph G Sandman PhD 292483 0 0 0 8824 0 19600 0 38965 0 359872 0 0 0 Laura A Wankel EdD 229000 0 0 0 9145 0 18647 0 6116 0 262908 0 0 0 Kathleen Boozang JD LLM 283564 0 0 0 461 0 19600 0 10627 0 314252 0 0 0 Patrick E Hobbs JD LLM 391744 0 0 0 5876 0 19600 0 4609 0 421829 0 0 0 Joyce Strawser PhD 166258 0 0 0 209 0 13273 0 21803 0 201543 0 0 0 Kevin Willard 522164 0 100000 0 50148 0 19600 0 30597 0 722509 0 0 0 Robert Gonzalez 111131 0 0 0 362897 0 81984 0 6052 0 562064 0 0 0 Stephen Lubben JD LLM 264362 0 0 0 141541 0 19600 0 26293 0 451796 0 0 0 Anne Donovan 270920 0 0 0 12958 0 0 0 9675 0 293553 0 0 0 John Menzies PhD 261363 0 0 0 9824 0 19600 0 1109 0 291896 0 0 0 Monsignor Robert Sheeran 114539 0 0 0 5946 0 5500 0 50404 0 176389 0 100000 0 Karen E Boroff PhD 197925 0 0 0 807 0 16174 0 22300 0 237206 0 0 0 Part I, Line 1a Part 1, Line 1a The University provided housing and related services at no charge to its President, A Gabriel Esteban, and members of its priest community which included certain current officers and trustees and certain former officers and trustees listed in Form 990, Part VII (Reverend Anthony Ziccardi, Monsignor Robert Coleman, Monsignor Joseph R. Reilly, Monsignor James M. Cafone, Monsignor Robert Wister and Monsignor Robert Sheeran). The University paid the membership fees for an athletic club and a country club for its former President, Monsignor Robert Sheeran. His attendance at both of these organizations was exclusively business related in order to assist University Advancement with donor cultivation and fundraising efforts. Such fees totaled approximately $13,000 through the end of his Presidency. They are included in nontaxable benefits in Schedule J, Part II. Monsignor Robert Sheeran, former President and member of the Board of Trustees and Board of Regents, stepped down as President as of June 30, 2010. In recognition of his exemplary service as president for 15 years, the Board of Regents conferred upon Monsignor Sheeran the honorary and privileged title of "President Emeritus" effective July 1, 2010 and approved a one-year terminal sabbatical leave and benefits which together totaled $235,000. This amount was included in deferred compensation in Schedule J, Part II in the University's 2009 Form 990. On June 16, 2010, Dr. A. Gabriel Esteban, Provost, was appointed interim President of Seton Hall University effective July 1, 2010. On January 11,2011, the Board of Regents appointed Dr. Esteban as Seton Hall's 20th President. As interim President, Dr. Esteban was given a retention bonus of $100,000. This amount is included as incentive compensation in Schedule J, Part II. Dr. Larry A. Robinson was appointed interim Provost succeeding Dr. Esteban. As interim Provost he was given a retention bonus of $50,000. This amount is included as incentive compensation in Schedule J, Part II. Part I, Line 8: Robert P. Gonzalez, the former coach of the men's basketball team up until March 17, 2010, was one of the five highest paid employees. He had been working under his initial contract executed in December 2006. The University reached a settlement with Mr. Gonzalez in August 2010. Kevin Willard was hired as the head coach of the men's basketball team on March 28, 2010. His annual compensation is high enough to place him among the University's top five highest paid employees. He previously had no relationship with the University. New Jersey EFA - Seton Hall Univ Issue Series 2008 D & E 221829511 646065WZ1 2008-12-11 73939881 see Part V 0 0 0 New Jersey EFA - Seton Hall Univ Issue Series 2009 C 221829511 NoneAvail 2009-11-13 7955000 see Part V 0 0 0 New Jersey EFA - Seton Hall Univ Issue 2009 Equipment Lease 221829511 NoneAvail 2009-05-27 3371289 see Part V 0 0 0 New Jersey EFA - Capital Improvement Fund 2004A & 2006A 221829511 64605LNM6 2004-04-14 7805700 see Part V 0 0 1 1310528 74633251 1848868 1054021 156565 586555 98598 2008 1 0 1 1 30000 7955000 159100 2009 1 0 1 1 3371289 3371289 3371289 2009 0 0 1 1 673376 7805700 78458 56467 59024 7611751 2005 0 0 1 1 0 0 0 0 0.00290 0.01620 0.01910 0 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0.00000 0.01480 0.01480 1 0 1 1 Citibank NA 26.000000000000 0 0 0 1 0 0 1 1 Citibank NA 10.000000000000 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1. Bond Issue A -- Seton Hall University Issues, 2008 Series D & E,(CUSIP numbers 646065WZ1 and 646065XQ0) were issued by the New Jersey Educational Facilities Authority (NJEFA) to currently refund Seton Hall University Issues, 2005 Series C and 2006 Series A. The 2005 Series C issue was issued on August 18, 2005 by the NJEFA to finance capital improvements at the University. The 2006 Series A issue was issued on June 1, 2006. It refunded the University's 1996 Series E issue, which was for capital improvements and for refunding the University's 1989 Series C issue, which was for capital improvements. The 2008 Series D & E issues were treated as a single issue for tax purposes. Amounts reported in Schedule K herein are for the combined issue. All proceeds deposited in the refunding escrows have been spent. The issue price in Part I, column E, of $73,939,881 plus $8,217 of interest earnings at the time of issue and $685,153 of project funds remaining from the 2005 and 2006 bonds at the time of the refunding which were transferred to the 2008 Series D & E Bonds equals the Part II, line3, total proceeds of the issue of $74,633,251. Of the $685,153, $586,555 has been used for capital expenditures and $98,598 remains unspent. The amount reported on Schedule K, Part III, line 4 represents the portion of the debt financed property that was used in a private business by entities other than charities and governmental organizations (food service vendor and bookstore). The amount reported on Schedule K, Part III, line 5 represents the bond issuance and credit enhancement costs from Schedule K, Part II, lines 7 and 8 divided by the amount on Schedule K, Part II, line 3, total proceeds of issue. In 2005, the University entered into two long-term interest rate swap agreements with Citibank, N.A. in order to hedge interest rate exposure related to their 2005 Series C and 2006 Series A issues. Following the refunding of the 2005 and 2006 issues with 2008 Series D & E, the interest rate swap agreements remained in place, following an amendment, in order to hedge interest rate exposure for the 2008 Series D issue. The swap agreements expire concurrently with the maturity of the 2008 Series D bonds, the last of which mature on July 1, 2037. 2. Bond Issue B - Seton Hall University Issue, 2009 Series C, was issued by NJEFA to currently refund Seton Hall University issue, 1998 Series F, issued on June 29, 1998 by the NJEFA to refund a 1991 Series D Seton Hall University issue that financed capital improvements at the University. The 2009 Series C Bonds were sold directly to Capital One, N.A. As part of its 2005 financing plan, the University also entered into an agreement with Citibank, N.A. to refinance the 1998 Series F Bonds in fiscal year 2008 using a forward starting interest rate swap. The forward starting interest rate swap became effective in April 2008. The refinancing of its 1998 Series F Bonds occurred in November 2009 with the swap being amended at that time. The swap agreement expires concurrently with the maturity of the 2009 Series C Bonds, the last of which matures on July 1, 2021. 3. Bond Issue C - Seton Hall University 2009 Equipment Lease was issued by NJEFA to finance equipment for the University. The obligations were sold directly to TD Equipment Finance, Inc. The University completely paid off this obligation in May 2011. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance costs from Schedule K, Part II, Line 7 divided by the amount on Part II, Line 3, total proceeds of issue. 4. Bond Issue D - These bonds were issued by NJEFA pursuant to a program of the State of New Jersey to finance capital improvements at institutions of higher education. The bonds were issued in the principal amount of $76,725,000 which was allocated to a total of seven institutions in New Jersey, three public and four private. An 8038 was filed for the portion of the issue allocated to private institutions and a separate 8038-G was filed for the portion allocated to public institutions. Seton Hall's apportioned amount, after $115,491 of apportioned issuance and credit enhancement costs, was $7,690,209. Of this amount $78,458 was allocated to capitalized interest. The remainder that was received by Seton Hall was $7,611,751, of which $3,805,875 was a grant and $3,805,876 was repayable over 20 years. Bonds issued to finance grants must be approved by the State Treasurer and are repayable by the State subject to appropriation. The bonds are sold based on the credit of the State. Each grantee enters into a grant agreement obligating the grantee to pay 1/2 of the debt service on the bonds allocable to the grant. On October 26, 2006, NJEFA issued Capital Improvement Bonds, Series 2006 A to partially refund the 2004 A Bonds and other series of Capital Improvement Fund Bonds. At that time, the amounts payable by each grantee were adjusted to take account of allocable debt service savings. The CUSIP number and issue date shown in Part I of Schedule K are for the Series 2004 A Bonds. The NJEFA has further information about the total bond issue. Seton Hall spent the entire amount of bond proceeds allocated to it on capital improvements on the University's campus. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance and credit enhancement costs from Schedule K, Part II, Lines 7 and 8 divided by the amount on Part II, Line 3, total proceeds of issue. The University has responded "Yes" to Schedule K, Part IV, line 6, which asks "Did the bond issue qualify for an exception to rebate?" This response is predicated on the University's spending of its apportioned grant and loan amount of $7,611,751 as part of this bond issue. However, the NJEFA has informed the University that there are project funds associated with other institutions that remain unspent. 5. Bond issue E - Seton Hall University Issue, 2011 Series A, (CUSIP number 646065U83) was issued by the New Jersey Facilities Educational Authority (NJEFA) to currently refund Seton Hall University's 1999 Refunding, 2001 Series A, 2001 Series B, and 2001 Series G bond issues. The 1999 Refunding issue was issued in July 1999 to refund the University's 1991 Series D and 1989 Series C issues. The 1991 Series D and the 1989 Series C issues were issued to finance capital improvements. The 2001 Series A issue was issued in June 2001 to refund the University's 1991 Series A issue which refunded the University's 1985 Series A issue which was issued to finance capital improvements. The 2001 Series B issue was issued in June 2001 to refund the University's 1991 Series B issue which was issued to refund the University's 1988 Series B issue which was issued to refund the University's 1976 Series A issue and to finance capital improvements. The 1976 Series A issue was issued to finance capital improvements. The 2001 Series G issue was issued in June 2001 to finance capital improvements. The final allocation of bond proceeds will be made after all proceeds are spent. The bonds are expected to meet the exception rebate requirements. New Jersey EFA - Revenue Refunding Bonds Seton Hall Issue 2011 Series A 221829511 646065U83 2011-06-10 37578532 see Part V 0 0 0 37578532 37157438 411094 10000 2011 1 0 0 1 0 0 0 0 0 0 Stephen J Lubben Housing X 225000 101000 0 0 1 101000 Dr A Gabriel Esteban President $33936 Scholarship Kent Manahan On Board of Regents 79519 Legal Services - Kent Manahan and Adrian Foley are members of the Board of Regents of the University (Mr. Foley is a Regent Emeritus). The husband of Ms. Manahan and Adrian Foleyare partners in a law firm that provides legal services to theUniversity. Ms. Manahan's husband is not directly involved withUniversity legal matters. Payments to their law firm for legal services,which approximated market value, were $79,519 in the year ended June 30,2011. 0 Adrian Foley On Board of Regents (Emeriti) 79519 Legal Services - (see above Kent Manahan) 0 Schedule L - Part II Loans to and/or Interested Persons Stephen J. Lubben is a professor of law at the Seton Hall UniversityLaw School. A bridge loan of $225,000, was provided to Mr. Lubben bythe University in November 2008. In December 2009, $20,000 of his loanwas forgiven. Upon the sale of his home, Mr. Lubben repaid $83,972 ofthe balance in March 2010. On July 1, 2010, $20,000 of his loan was forgiven. The balance of the loan of $101,028 is to be forgiven by the University on July 1 of 2011 and 2012, provided certain conditions are met. The loan is unsecured and bears no interest. The University has imputed interest on the loan and included it in his taxable income reported to the government. All principal amounts forgiven have been included in taxable income. Part III Scholarship The child of Dr. A Gabriel Esteban, President, was awarded two merit scholarships, The Regents Scholarship and Women's Guild Scholarship amounting to $33,936. His position as President had no bearing in the award process nor was he involved in that process at all. X 5 21000 opinions of experts X 8000 opinions of experts X 2000 selling price X 29 559000 selling price X 1 695000 market value X 5 65000 opinions of experts X 31 16000 cost X IT Equipments 1 38000 cost X Life Insurance 1 31000 cost X Miscellaneous 8 2000 cost 1 0 1 1 Third Party Use: Part I, Line 32b: Auction companies are used to process and/or sell noncash contributions in "silent auctions" at several fundraising events. To the extent Seton Hall University receives donations of publicly traded securities, its investment broker is engaged to sell those securities. Form 990, Part VI, Section A, line 2 Adrian Foley, a Regent Emeritus, had a business relationship with the husband of Kent Manahan. Ms Manahan is a member of the Board of Regents. Bruce A. Tomason, a member of the Board of Regents and the Board of Trustees, had a business relationship with the husband of Catherine Kiernan, Vice President and General Counsel of the University. Form 990, Part VI, Section A, line 4 The University By-Laws provided that the President of the University shall always be a Roman Catholic priest. The Board of Trustees approved on March 18, 2011, an amendment to grant an exception to this requirement to permit the Board of Regents to elect a layman for the position of President. A. Gabriel Esteban, Ph. D. was elected as President for a fixed term, not to exceed five and a half (5 1/2) years, commencing on January 1, 2011, consistent with these By-Laws. Form 990, Part VI, Section A, line 7a The Board of Regents is responsible for the entire management of the affairs and concerns of the University. The Board of Regents is vested with the responsibility, power, and authority to govern the University and shall exercise the corporate powers of the University under Law. Board of Regent Emeriti do not have voting privileges. Form 990, Part VI, Section A, line 7b The Board of Trustees stand in the stead of the original incorporators of Seton Hall College and have the rights and powers reserved to it by the University's By-Laws. Those powers include the right to amend the University's organizing documents, to authorize the sale of any University property and, most importantly, to elect the Board of Regents. Form 990, Part VI, Section B, line 11 The Board of Regents adopted a written policy charging the Audit Committee with the responsibility to conduct, on an annual basis, an appropriate review of the University's completed Form 990 and Form 990-T prior to filing with Internal Revenue Service. The Audit Committee is also charged with making an appropriate report and recommendation to the Board of Regents on their review. Following review by the Audit Committee, Forms 990 and 990-T are submitted to the entire Board of Regents for its review and approval for filing with the Internal Revenue Service. The Board of Regents shall contemporaneously document the meeting at which the Forms 990 and 990-T are reviewed and approved for filing. Form 990, Part VI, Section B, line 12c The University's conflict of interest policy is posted on the University's web site. All new employees are made aware of the policy at the time of hire. For senior management, the University requires an annual disclosure of significant financial interests in, or employment or consulting relationships with, entities doing business with the University. These annual disclosures cover both senior management and their immediate family members. When such relationships exist, measures are taken to address the actual or perceived conflict to protect the best interests of the University. The policy requires, among other things, that no member of the Board of Regents or its Committees can participate in any decision in which he or she (or an immediate family member) has a material financial interest. Each Regent is required to certify compliance with the conflict of interest policy on an annual basis and indicate whether the University does business with an entity in which a Regent has a material financial interest. When such relationships exist, measures are taken to mitigate any actual or perceived conflict, including requiring that such transactions be conducted at arm's length, for good and sufficient consideration, based on terms that are fair and reasonable to and for the benefit of the University, and in accordance with relevant conflict of interest laws. The University is unaware of any such associations considered to be significant. Form 990, Part VI, Section B, line 15 Seton Hall University can ensure and demonstrate that our compensation actions do not inure to the benefit of a private individual. We can demonstrate that the compensation of all disqualified persons, such as officers, directors, and key employees, is considered reasonable and would ordinarily be paid for like services by like enterprises under like circumstances. The reasonableness of our compensation takes into account all benefits. Any compensation transactions for these individuals are approved by an authorized body of individuals who have no conflict of interest. Utilizing a compensation consultant, appropriate compensation data is relied upon for comparability and proof of fair market value, before making a decision. Form 990, Part VI, Section C, line 19 The University's By-Laws and its conflict of interest policy are posted on the University's web site. The University's financial statements are posted on the web site of the National Association of College and University Business Officers (NACUBO). Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 33,715,000. Change in value of interest rate swap agreements 1,161,000. Provision for uncollectible contributions receivable and others -286,000. Total to Form 990, Part XI, Line 5: 34,590,000. Part XII, Line 2c The Board of Regents has a written policy charging the Audit Committee with the responsibility for oversight of the audit, the review of its financial statements, and the selection of an independent accountant. For Fiscal Year 2011, there was no change in its oversight process or selection process. Restructuring programs Form 990, Part IX, Line 24e The University initiated restructuring programs during fiscal 2011 in an effort to reduce its cost structure. The actions taken included consultancy studies, voluntary and involuntary headcount reductions and other administrative and operational cost saving initiatives effectuated during the period. In connection with these actions, the University recorded nonoperating restructuring charges totalling $1,139,000. Roman Catholic Archdiocese of Newark 171 Clifton Avenue Newark NJ 07104 221487308 Oversees the Catholic church in certain counties of New Jersey NJ 501(c)(3) 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0