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        <Identifier>PART I, LINE 1A</Identifier>
        <Explanation>1. THE EXECUTIVES WILL FLY COACH AIR FOR DOMESTIC TRAVEL AND BUSINESS CLASS FOR OVERSEAS TRAVEL. 2. UPGRADES OR ENHANCEMENTS ARE NOT REIMBURSED. 3. THE EXECUTIVES MAY MAKE AIR AND OTHER TRAVEL ARRANGEMENTS THROUGH THEIR RESPECTIVE UNIVERSITY OFFICES. EVERY ATTEMPT SHOULD BE MADE TO ACQUIRE ADVANCED PURCHASE TICKETS. WHEN IT IS NECESSARY TO CHANGE AN ADVANCED PURCHASED TICKET, CHANGE FEES AND ADDITIONAL SERVICE CHARGES ARE REIMBURSABLE. TAX GROSS UP PAYMENTS ARE MADE WHEN APPLICABLE. THE UNIVERSITY PAYS A SOCIAL CLUB MEMBERSHIP FEE FOR THE PRESIDENT. THE SOCIAL CLUB MEMBERSHIP USE IS LIMITED TO UNIVERSITY BUSINESS PURPOSES.</Explanation>
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        <IssuerEIN>232243852</IssuerEIN>
        <CUSIPNumber>70917NU69</CUSIPNumber>
        <DateIssued>2005-01-15</DateIssued>
        <IssuePrice>40545000</IssuePrice>
        <DescriptionOfPurpose>REFUND ESCROWS, CONSTRUCTION,&amp; MIS</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
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      <Form990ScheduleKPartI>
        <IssuerName>
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        </IssuerName>
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        <CUSIPNumber>70917RQY2</CUSIPNumber>
        <DateIssued>2008-05-17</DateIssued>
        <IssuePrice>67400000</IssuePrice>
        <DescriptionOfPurpose>REDEEM PRIOR BONDS &amp; CREATE DEBT S</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
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        <AmountRetired>0</AmountRetired>
        <AmountBondDefeased>0</AmountBondDefeased>
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        <AmountInReserveFund>0</AmountInReserveFund>
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        <RefundingEscrow>0</RefundingEscrow>
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        <CreditEnhancement>0</CreditEnhancement>
        <WorkingCapitalExpenditures>0</WorkingCapitalExpenditures>
        <CapitalExpenditures>40545000</CapitalExpenditures>
        <OtherSpentProceeds>0</OtherSpentProceeds>
        <AmountUnspent>0</AmountUnspent>
        <YearOfSubstCompletion>2006</YearOfSubstCompletion>
        <CurrentRefunding>false</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
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        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
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        <CreditEnhancement>0</CreditEnhancement>
        <WorkingCapitalExpenditures>0</WorkingCapitalExpenditures>
        <CapitalExpenditures>0</CapitalExpenditures>
        <OtherSpentProceeds>0</OtherSpentProceeds>
        <AmountUnspent>0</AmountUnspent>
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        <AdvanceRefunding>true</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
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        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <BondCounselRoutinelyEngaged>true</BondCounselRoutinelyEngaged>
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        <PercentageOfPrvtBusinessReUBI>0.00000</PercentageOfPrvtBusinessReUBI>
        <TotalPrivateBusinessUse>0.00000</TotalPrivateBusinessUse>
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        <AnyResearchAgreements>false</AnyResearchAgreements>
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        <ExceptionToRebate>false</ExceptionToRebate>
      </Form990ScheduleKPartIV>
    </IRS990ScheduleK>
    <IRS990ScheduleM documentId="IRS990ScheduleM">
      <WorksOfArt />
      <ArtHistoricalTreasures />
      <ArtFractionalInterest />
      <BooksAndPublications />
      <ClothingAndHouseholdGoods />
      <CarsAndOtherVehicles />
      <BoatsAndPlanes />
      <IntellectualProperty />
      <SecuritiesPubliclyTraded />
      <SecuritiesCloselyHeldStock />
      <SecuritiesPrtnrshpTrustIntrsts />
      <SecuritiesMiscellaneous />
      <QualifiedContribHistStruct />
      <QualifiedContribOther />
      <RealEstateResidential />
      <RealEstateCommercial />
      <RealEstateOther />
      <Collectibles />
      <FoodInventory />
      <DrugsAndMedicalSupplies />
      <Taxidermy />
      <HistoricalArtifacts />
      <ScientificSpecimens />
      <ArchaeologicalArtifacts />
      <OtherNonCashContributionsTable>
        <NonCashCheckbox>X</NonCashCheckbox>
        <Description>Medical Equipment</Description>
        <NumberOfContributions>1</NumberOfContributions>
        <NoncashContribsRptdF990>142563</NoncashContribsRptdF990>
        <MethodOfDeterminingRevenues>FMV</MethodOfDeterminingRevenues>
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      <NumberOf8283Received>0</NumberOf8283Received>
      <AnyPropertyThatMustBeHeld>false</AnyPropertyThatMustBeHeld>
      <ReviewProcessUnusualNCGifts>true</ReviewProcessUnusualNCGifts>
      <ThirdPartiesUsed>false</ThirdPartiesUsed>
    </IRS990ScheduleM>
    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>Form 990 Review Process</Identifier>
        <ReturnReference>Form 990, Part VI, Line 11b</ReturnReference>
        <Explanation>THE 990 IS PREPARED BY OUTSIDE INDEPENDENT TAX ADVISORS AND REVIEWED BY THE UNIVERSITY. IT IS REVIEWED BY THE AUDIT COMMITTEE. IT IS MADE AVAILABLE TO THE BOARD OF TRUSTEES PRIOR TO THE FILING DEADLINE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Conflict of Interest Policy Monitoring &amp; Enforcement</Identifier>
        <ReturnReference>Form 990, Part VI, Line 12c</ReturnReference>
        <Explanation>THE BOARD OF TRUSTEES, OFFICERS AND KEY EMPLOYEES OF THE UNIVERSITY, BY VIRTUE OF THEIR OFFICES, HAVE A FIDUCIARY RELATIONSHIP WITH THE UNIVERSITY WHICH REQUIRES THAT THEY ACT IN GOOD FAITH AND WITH FIDELITY TO THE UNIVERSITY'S BEST INTERESTS. THE UNIVERSITY HAS WRITTEN CONFLICT OF INTEREST POLICES WHICH ARE INTENDED TO PERMIT THE UNIVERSITY AND ITS TRUSTEES, OFFICERS AND OTHER KEY EMPLOYEES TO IDENTIFY, EVALUATE AND ADDRESS ANY CONFLICT OF INTEREST THAT MIGHT CALL INTO QUESTION THIS FIDUCIARY DUTY TO THE UNIVERSITY. EACH TRUSTEE, OFFICER AND KEY EMPLOYEE IS REQUIRED TO REPORT ANY CONFLICTS OF INTEREST TO THE UNIVERSITY AS SOON AS PRACTICAL AFTER THEY BECOME AWARE OF SUCH A CONFLICT. EACH TRUSTEE, OFFICER AND KEY EMPLOYEE SHALL ALSO ANNUALLY COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE. THE UNIVERSITY MONITORS COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICIES BY REVIEW OF THE ANNUAL CONFLICT OF INTEREST QUESTIONNAIRES BY THE OFFICE OF THE PRESIDENT. IF CONFLICTS OF INTEREST EXIST FOR OFFICERS AND KEY EMPLOYEES, THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES IS NOTIFIED AND DETERMINES THE CORRECTIVE MEASURE, IF ANY, TO BE TAKEN TO RESOLVE THE CONFLICT, OR WILL IMPOSE APPROPRIATE RESTRICTIONS, IF ANY ON THE PERSON WITH THE CONFLICT. FOR CONFLICTS OF INTEREST INVOLVING THE TRUSTEES, THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES WILL BE NOTIFIED OF THE CONFLICT AND WILL RECOMMEND TO THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES THE CORRECTIVE MEASURES, IF ANY, TO THE TAKEN TO RESOLVE THE CONFLICT OR APPROPRIATE RESTRICTIONS, IF ANY TO BE IMPOSED ON THE PERSON WITH THE CONFLICT. THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES, EXCLUDING SUCH CONFLICTED PERSON, HAS THE FINAL APPROVAL OF ANY RECOMMENDED CORRECTIVE MEASURES OR IMPOSED RESTRICTIONS. SUCH RESTRICTIONS REQUIRE EXCLUDING CONFLICTED PERSONS FORM DISCUSSION AND APPROVAL OF TRANSACTIONS BENEFITTING THEM, DIRECTLY OR INDIRECTLY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Process for Determining Compensation</Identifier>
        <ReturnReference>Form 990, Part VI, Line 15a</ReturnReference>
        <Explanation>PURPOSE - TO ESTABLISH THE PARAMETERS REGARDING EXECUTIVE COMPENSATION, WITH THE OBJECTIVE OF PROVIDING TOTAL COMPENSATION TO THE PRESIDENT AND HIS EXECUTIVE LEADERSHIP TEAM WHICH WILL SERVE TO MAINTAIN A COMPETITIVE MARKET POSITION AND RECOGNIZE THE ACHIEVEMENT OF ESTABLISHED FINANCIAL, QUALITY AND STRATEGIC GOALS FOR THE UNIVERSITY AND TO RECOGNIZE INDIVIDUAL PERFORMANCE, CONSISTENT WITH THE LAWS, REGULATIONS AND PRINCIPLES GOVERNING NON-PROFIT COMPENSATION. AS USED HEREIN, "EXECUTIVES" SHALL ME THE PRESIDENT'S EXECUTIVE LEADERSHIP TEAM. PROCEDURE - TO ESTABLISH A LEVEL OF COMPENSATION REQUIRED TO RECRUIT AND RETAIN EXECUTIVES, THE UNIVERSITY SHALL GIVE PRIMARY CONSIDERATION TO DATA ON EXECUTIVE COMPENSATION FOR COMPARABLE POSITIONS. AS A GENERAL RULE, "COMPARABLE POSITIONS" ARE THOSE LIKE POSITIONS WITHIN HIGHER EDUCATION THAT ARE SIMILAR TO THE UNIVERSITY IN TERMS OF REVENUE, NUMBER OF STUDENTS, SIZE OF ENDOWMENT, NUMBER OF EMPLOYEES AND/OR GEOGRAPHIC AREA. THE EXECUTIVE COMMITTEE OF THE UNIVERSITY BOARD OF TRUSTEES (EXECUTIVE COMMITTEE) SHALL APPROVE THE PRESIDENT'S COMPENSATION, INCLUDING WITHOUT LIMITATION, BASE COMPENSATION, INCENTIVE COMPENSATION, DEFERRED COPMENSATION, FRINGE AND OTHER BENEFITS. EACH EXECUTIVE COMMITTEE MEMBER VOTING ON THE PRESIDENT'S COMPENSATION ARRANGEMENT SHALL ENSURE THAT (S)HE HAS NO CONFLICT OF INTEREST, INCLUDING THAT (S)HE (A) DOES NOT ECONOMICALLY BENEFIT FROM PROPOSED EMPLOYEE; (B) DOES NOT RECEIVE COMPENSATION SUBJECT TO THE APPROVAL OF THE PROPOSED EMPLOYEE; AND (C) HAS NO MATERIAL FINANCIAL INTEREST AFFECTED BY THE TRANSACTION. THE DECISIONS OF THE EXECUTIVE COMMITTEE REGARDING THE PRESIDENT'S COMPENSATION AND THE DECISIONS OF THE PRESIDENT REGARDING THE EXECUTIVES COMPENSATION IS TO BE DOCUMENTED. THIS PROCESS WAS LAST UNDERTAKEN IN 2009.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Process for Determining Compensation</Identifier>
        <ReturnReference>Form 990, Part VI, Line 15b</ReturnReference>
        <Explanation>THE PRESIDENT SHALL APPROVE ALL EXECUTIVE COMPENSATION FOR THE EXECUTIVE LEADERSHIP TEAM, WHICH SHALL INCLUDE ALL COMPENSATION COMPONENTS, INCLUDING WITHOUT LIMITATION, BASE COMPENSATION, INCENTIVE COMPENSATION, DEFERRED COMPENSATION, FRINGE AND OTHER BENEFITS. THE PRESIDENT AND THE EXECUTIVE COMMITTEE SHALL USE COMPARABILITY DATA PROVIDED BY THE UNIVERSITY'S HUMAN RESOURCES DEPARTMENT, WHICH MAY INCLUDE INDUSTRY SURVEYS, EXPERT COMPENSATION STUDIES, DOCUMENTED COMPENSATION OF PERSONS HOLDING SIMILAR POSITIONS, OR OTHER COMPARABLE DATA IN APPROVING ANY COMPENSATION CHANGES. THE PRESIDENT AND THE EXECUTIVE COMMITTEE SHALL PERIODICALLY RETAIN THE SERVICES OF A COMPENSATION CONSULTANT TO PROVIDE AN EXTERNAL ASSESSMENT OF THE UNIVERSITY'S COMPENSATION ANALYSIS. IT SHOULD BE NOTED THAT THIS INFORMATION IS USED TO ARRIVE AT A REASONABLE AND ARM'S LENGTH DETERMINATION OF TOTAL COMPENSATION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>How Documents are Made Available to the Public</Identifier>
        <ReturnReference>Form 990, Part VI, Line 19</ReturnReference>
        <Explanation>THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BY POSTING THE INFORMATION ON THE ORGANIZATION'S WEBSITE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, part XI, line 5</Identifier>
        <ReturnReference>Reconcilation of net assets</ReturnReference>
        <Explanation>Net unrealized gains on investments............$17,758,541 Pension cost change............................ 127,908 annuity adjustment............................. (16,751) endowment distribution......................... (3,683,402) ------------ Total: 14,186,296</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KINGESSING REALTY LLC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 SOUTH 43RD STREET</AddressLine1>
          <City>PHILADELPHIA</City>
          <State>PA</State>
          <ZIPCode>19104</ZIPCode>
        </AddressUS>
        <EIN>233067213</EIN>
        <PrimaryActivities>PARTNERSHIP</PrimaryActivities>
        <LegalDomicileState>PA</LegalDomicileState>
        <TotalIncome>0</TotalIncome>
        <EOYAssets>152627</EOYAssets>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartI>
    </IRS990ScheduleR>
  </ReturnData>
</Return>