2012-08-10T10:21:37-05:00 2011-09-30 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2010-10-01 330435954 THE SCRIPPS RESEARCH INSTITUTE SCRI 8587841000 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 DONNA WESTON 8587848300 2012-08-09 1 DIANA J MCCUTCHEN 6192326500 2010 2016-02-24 21:20:13Z MICHAEL MARLETTA 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 650104758 0 X WWW.SCRIPPS.EDU X 1924 CA TSRI CONDUCTS BIOMEDICAL AND BIOCHEMICAL RESEARCH AND POSTGRADUATE TRAINING PROGRAMS. 28 24 2904 44 -428777 -451074 368243444 390761176 5440534 5509730 9290873 22030623 4129895 5641340 387104746 423942869 7538338 9252225 0 0 188196176 192593572 180000 212371 2578691 195575476 199793302 391489990 401851470 -4385244 22091399 850789296 865626306 167734219 172754699 683055077 692871607 X THE SCRIPPS RESEARCH INSTITUTE'S ("TSRI") MISSION IS TO PERFORM HIGH IMPACT BASIC BIOMEDICAL RESEARCH, IMPROVE THE HUMAN CONDITION BY FOSTERING TRANSLATION OF ITS DISCOVERIES INTO USEFUL PRODUCTS AND ENGAGING IN THE HIGHEST QUALITY GRADUATE SCIENTIFIC EDUCATION AND POST GRADUATE SCIENTIFIC TRAINING. TSRI IS KNOWN FOR ITS ENTREPRENEURIAL ENVIRONMENT AND ITS EMPHASIS IN RESEARCH RELATING TO SYNTHETIC CHEMISTRY, THE RELATIONSHIP BETWEEN MOLECULAR STRUCTURE AND ACTIVITY AND CHEMICAL BIOLOGY. 0 0 362056794 1400000 5509730 RESEARCH GRANTS, CONTRACTS AND FELLOWSHIPS ARE RECEIVED FROM PUBLIC AND PRIVATE INSTITUTIONS AND INDIVIDUALS AND ARE USED TO CONDUCT BIOMEDICAL RESEARCH AND TO DEVELOP ANSWERS TO FUNDAMENTAL AND IMPORTANT QUESTIONS. THIS USE ANTICIPATES THAT THE PURSUIT OF BASIC KNOWLEDGE IN CHEMISTRY AND BIOLOGY WILL INEVITABLY LEAD TO BENEFICIAL RESULTS APPLICABLE TO THE HUMAN CONDITION AND TREATMENT OF DISEASE. RESEARCH IS CONDUCTED IN LA JOLLA, CALIFORNIA AND JUPITER, FLORIDA. 19371239 7852225 TSRI RECOGNIZES THAT A ROBUST EDUCATION PROGRAM IS KEY TO THE SUCCESS OF ITS LABORATORY-BASED INVESTIGATIONS, AND OFFERS BOTH GRADUATE AND POST-GRADUATE EDUCATION PROGRAMS. POST-DOCTORAL EDUCATION PROGRAMS INCLUDE FELLOWSHIPS FOR FOCUSED AND SUPERVISED TRAINING ON PROBLEMS THAT WILL BECOME CENTRAL TO SUBSEQUENT INVESTIGATIONS AS THESE YOUNG SCIENTISTS BEGIN THEIR SCIENTIFIC CAREERS. TSRI'S GRADUATE PROGRAM SEEKS TO CREATE AN INDIVIDUALIZED CURRICULUM FOR STUDENTS STUDYING AT THE INTERFACE OF BIOLOGY AND CHEMISTRY - AREAS OF SCIENTIFIC INQUIRY FOR WHICH THE SCRIPPS RESEARCH INSTITUTE HAS EARNED ITS REPUTATION FOR EXCELLENCE. COURSES CAN BE CHOSEN FOR EITHER FOCUSED OR INTERDISCIPLINARY STUDIES. OPPORTUNITIES TO CRAFT A RESEARCH PROJECT AND AREA OF STUDY THAT ENCOMPASSES SEVERAL LABORATORIES OUTSIDE OF THE STUDENT'S MENTOR ARE NOT ONLY AVAILABLE BUT ENCOURAGED. ACCOMMODATIONS ARE MADE TO SUIT THE STUDENT'S SENSIBILITIES AND OBSTACLES ARE ROUTINELY OVERCOME TO KEEP THE BEST INTERESTS OF THE STUDENTS AT THE FOREFRONT OF THE PROGRAM. 381428033 1 1 0 1 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 278 0 1 2904 1 1 1 0 0 0 0 0 0 0 0 0 X 28 24 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA CT FL MD NJ NY PA X DONNA WESTON 8587848300 3301 NORTH TORREY PINES COURT LA JOLLA CA 92037 X WARREN BEATTY 1.00 X 0 0 0 J GARY BURKHEAD 1.00 X 0 0 0 GARY N COBURN 1.00 X 0 0 0 GEORGE H CONRADES 1.00 X 0 0 0 J MICHAEL COOK 1.00 X 0 0 0 THOMAS E DEWEY JR 1.00 X 0 0 0 ALEXANDER W DREYFOOS 1.00 X 0 0 0 A BRENT EASTMAN MD 1.00 X 0 0 0 RICHARD J ELKUS JR 1.00 X 0 0 0 MARJORIE FINK 1.00 X 0 0 0 PHILLIP FROST MD 1.00 X 0 0 0 RICHARD GEPHARDT 1.00 X 0 0 0 LOUIS L GONDA 1.00 X 0 0 0 STEVEN GREEN 1.00 X 0 0 0 PAUL L HERRLING PHD 1.00 X 0 0 0 LAWRENCE C HOROWITZ MD 1.00 X 0 0 0 THOMAS H INSLEY 1.00 X 0 0 0 AMIN KHOURY 1.00 X 0 0 0 CLAUDIA S LUTTRELL 1.00 X 0 0 0 JAMES R MELLOR 1.00 X 0 0 0 JOHN J MOORES 1.00 X 0 0 0 MARK PEARSON 1.00 X 0 0 0 LYNN SCHENK 1.00 X 0 0 0 RALPH J SHAPIRO 1.00 X 0 0 0 MARK S SKAGGS 1.00 X 0 0 0 ANDREW J VITERBI PHD 1.00 X 0 0 0 GERALD COHN 1.00 X 0 0 0 RICHARD LERNER 40.00 X X 1310860 0 59634 DOUGLAS BINGHAM 40.00 X 575372 0 67750 DONNA WESTON 40.00 X 367916 0 59736 THOMAS NORTHRUP 40.00 X 256389 0 50915 CARY THOMAS 40.00 X 361292 0 61797 KAYE WYNNE 40.00 X 290426 0 60948 HARRY ORF 40.00 X 242837 0 58619 GERALD EDLEMAN 40.00 X 427756 0 64877 GERALD JOYCE 40.00 X 416040 0 64249 JULIUS REBEK JR 40.00 X 416470 0 69740 WILLIAM ROUSH 40.00 X 413648 0 61494 PETER WRIGHT 40.00 X 411091 0 60950 5490097 0 740709 288 0 1 0 OLSON & CEPURITIS LTD 20 NORTH WACKER DRIVE 36TH FLOOR CHICAGO IL 60606 LEGAL 982421 QUINE INTELLECTUAL 2033 CLEMENT AVENUE ALEMEDA CA 94501 PATENT ATTORNEY 667193 DELOITTE & TOUCHE LLP 655 W BROADWAY SUITE 700 SAN DIEGO CA 921018590 AUDIT & TAX 524063 SCHWEGMAN LUNDBERG WOESSNER PA 1600 TCF TOWER 121 S 8TH STREET MINNEAPOLIS MN 55402 LEGAL 499199 DLA PIPER US LLP PO BOX 64029 BALTIMORE MD 212644029 LEGAL 226135 15 152611 290409772 100198793 166237 390761176 PATENT OFFICE 900099 5509730 5509730 5509730 13173020 13173020 3221305 3221305 1324851 1428666 -103815 -103815 -103815 142016535 91545325 141957895 82746362 58640 8798963 8857603 8857603 0 152611 28966 -28966 -28966 K-1 INCOME 531390 1048948 -428777 1477725 SHARED SERVICES 900099 945854 945854 LIBRARY SERVICES 900099 508325 508325 49689 49689 2552816 423942869 5509730 -428777 28100740 1400000 1400000 7395000 7395000 457225 457225 3824491 1376234 2448257 143680424 137318746 4991663 1370015 8508160 7919882 478308 109970 27214017 26771312 350273 92432 9366480 8674999 582616 108865 3504 534 2970 212371 212371 46607535 40235580 6000037 371918 67134268 66560420 509316 64532 25279405 24027348 1158124 93933 4270751 4102700 102648 65403 2477814 2477814 36175138 36004064 151233 19841 3290158 2356961 928800 4397 UTILITIES 13557656 13457915 47616 52125 PUBLICATIONS 435413 323587 99040 12786 LICENSES AND TAXES 106814 112866 -6155 103 454846 454846 401851470 381428033 17844746 2578691 16432711 16260150 61127656 67838988 1109290 756216 3969802 3943730 938068 627369 3665890 3084184 680213033 311602584 381068849 368610449 237001444 280701080 140142266 118705361 5333320 5098779 850789296 865626306 41171369 35502014 39922784 51514855 42615000 40745000 8150000 8150000 35875066 36842830 167734219 172754699 X 459621044 449190729 183911347 203583381 39522686 40097497 683055077 692871607 850789296 865626306 X 22091399 -12274869 X 0 1 1 X 1 1 X SCRIPPS HEALTH LA JOLLA CA RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 3504 3504 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: TSRI PAYS ANNUAL DUES TO THE ASSOCIATION OF INDEPENDENT RESEARCH INSTITUTES, CALIFORNIA HEALTHCARE INSTITUTE (CHI), THE CALIFORNIA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AND THE FLORIDA RESEARCH CONSORTIUM, A PORTION OF WHICH IS USED FOR LOBBYING ACTIVITIES. 61045904 681736 484627 1612639 60599628 57023972 2763384 2641687 1383139 61045904 50896638 6124230 53243 50139 57023972 0.34000 0.66000 0 0 19645590 19645590 398820488 123623245 275197243 18553717 15428912 3124805 239236518 170887457 68349061 3956720 1662970 2293750 368610449 INVESTMENT IN LIMITED PARTNERSHIPS 118705361 F 118705361 PAYABLE TO UNITRUST/GIFT ANNUITY BENEFICIARIES 1679588 PENSION LIABILITY 32779867 BOND PREMIUM 2383375 36842830 423942869 401851470 22091399 -10280072 -1994797 -12274869 9816530 413546777 -10280072 932928 -9347144 422893921 1048948 1048948 423942869 403730247 1878777 1878777 401851470 0 401851470 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: INVESTMENT RETURN FROM THE ENDOWMENTS SUPPORTS SCIENTIFIC PROJECTS CONSISTENT WITH THE MISSION AND PRINCIPLES OF THE SCRIPPS RESEARCH INSTITUTE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: TSRI ADOPTED FIN 48 DURING THE YEAR ENDED 9/30/08. NO LIABILITY FOR UNCERTAIN TAX POSITIONS HAS BEEN RECORDED ON THE FINANCIAL STATEMENTS FOR THE CURRENT YEAR. PART XI, LINE 8 - OTHER ADJUSTMENTS: SHARED SERVICES -945,854. OTHER/ROUNDING 5. BOOK/TAX DIFFERENCE ON K-1 INCOME -1,048,948. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENT EXPENSES NETTED AGAINST RENT REVENUE 1,428,666. LOSS ON DISPOSAL OF EQUIPMENT 450,112. OUTSIDE SHARED SERVICE GROSS REVENUE -945,854. OTHER/ROUNDING 4. PART XII, LINE 4B - OTHER ADJUSTMENTS: BOOK/TAX DIFFERENCE ON K-1 INCOME 1,048,948. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENT EXPENSES NETTED AGAINST RENT REVENUE 1,428,666. LOSS ON DISPOSAL OF EQUIPMENT 450,112. OTHER/ROUNDING -1. 1 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTIST & STUDENT RESEARCH 457225 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 39215097 SEE PART IV 0 0 0 0 0 0 0 0 0 39672322 0 39672322 EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT RESEARCH 457225 ELECTRONIC FUND/WIRE N/A N/A 1 0 1 0 1 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: TSRI MONITORS THE AMOUNTS PROVIDED TO THE FOREIGN ORGANIZATION BY ADHERENCE TO A GRANT CONTRACT FOR THE LAB PROVIDED FOR USE OF THE TSRI RESEARCHER AND MONITORS DETAILED BILLING STATEMENTS FOR STUDENT RESEARCH EXPENDITURES. OTHER INFORMATION SCHEDULE F, PART V TSRI HAS MANY SCIENTISTS THAT TRAVEL AROUND THE WORLD. GLOBAL TRAVEL IS REQUIRED BY THE SCIENTISTS TO ATTEND VARIOUS MEETINGS AND SPEAK ON THEIR AREAS OF SPECIALTY. IT IS NOT FEASIBLE TO GATHER THE DETAILED INFORMATION REGARDING EXPENDITURES FOR PART I. THERE ARE NO OFFICES OUTSIDE OF THE US OR EMPLOYEES WHO RESIDE OUTSIDE OF THE U.S. OTHER INFORMATION SCHEDULE F, PART V SCHEDULE F, PART IV TSRI HAD A LESS THAN 10% OWNERSHIP IN A FOREIGN CORPORATION DURING THE TAX YEAR AND THEREFORE WAS NOT REQUIRED TO FILE FORM 5471. X X X X X X 1 SANKY COMMUNICATIONS INC 599 ELEVENTH AVENUE NEW YORK NY 10036 E-PHILANTHROPY 0 77990 78883 -893 SANKY COMMUNICATIONS INC 599 ELEVENTH AVENUE NEW YORK NY 10036 DIRECT MAIL DONOR ACQUISITION 0 19692 133488 -113796 97682 212371 -114689 CA FL CT IL MI MA NJ NY PA DC ALZHEIMER'S EVENT 10500 10500 1500 7494 7500 9845 FRENCHMANS CREEK 142111 142111 750 1877 152611 152611 1500 8244 7500 11722 28966 -28966 1 NEUROSCIENCES RESEARCH FOUNDATION 40640 JOHN JAY HOPKINS DRIVE SAN DIEGO CA 92121 046071592 501(C)(3) 1400000 GENERAL SUPPORT 1 SCHOLARSHIP/STIPENDS-KELLOGG GRADUATE SCHOOL, $29,000 PER STUDENT 255 7395000 X X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 RICHARD LERNER 979633 0 0 0 331227 0 49000 0 10634 0 1370494 0 0 0 DOUGLAS BINGHAM 559074 0 0 0 16298 0 55089 0 12661 0 643122 0 0 0 DONNA WESTON 351754 0 0 0 16162 0 49000 0 10736 0 427652 0 0 0 THOMAS NORTHRUP 248088 0 0 0 8301 0 38050 0 12865 0 307304 0 0 0 CARY THOMAS 328708 0 0 0 32584 0 49000 0 12797 0 423089 0 0 0 KAYE WYNNE 259519 0 0 0 30907 0 49000 0 11948 0 351374 0 0 0 HARRY ORF 228833 0 0 0 14004 0 46650 0 11969 0 301456 0 0 0 GERALD EDLEMAN 417275 0 0 0 10481 0 49000 0 15877 0 492633 0 0 0 GERALD JOYCE 412949 0 0 0 3091 0 49000 0 15249 0 480289 0 0 0 JULIUS REBEK JR 407326 0 0 0 9144 0 49000 0 20740 0 486210 0 0 0 WILLIAM ROUSH 408503 0 0 0 5145 0 49000 0 12494 0 475142 0 0 0 PETER WRIGHT 404038 0 0 0 7053 0 49000 0 11950 0 472041 0 0 0 PART I, LINE 1A THE SCRIPPS RESEARCH INSTITUTE TRAVEL POLICIES PERMIT BUSINESS CLASS TRAVEL ON FLIGHTS OF MORE THAN THREE HOURS. FIRST CLASS TRAVEL IS PERMITTED ON SMALLER AIRCRAFT IF BUSINESS CLASS TRAVEL IS NOT OFFERED ON THESE LONG-HAUL FLIGHTS. TSRI'S TRUSTEES SERVE WITHOUT COMPENSATION. HOWEVER, UPON REQUEST, TSRI WILL REIMBURSE TRUSTEES FOR THE COST OF ACCOMPANIED TRAVEL IF SUCH REIMBURSEMENT IS NECESSARY TO OBTAIN TRUSTEE PARTICIPATION AT THE MEETINGS. FINALLY, TSRI HAS TWO COMPUSES; ONE IS LA JOLLA, CA, AND ONE IN JUPITER, FLORIDA. THE PRESIDENT AND CEO MAINTAINS A HOUSE IN BOTH LOCATIONS. A HOUSING ALLOWANCE IS PROVIDED FOR ONE OF THOSE LOCATIONS. PART I, LINE 4B RICHARD LERNER, M.D. PARTICIPATED IN A DEFERRED COMPENSATION PLAN. NO PAYMENTS WERE MADE DURING THE YEAR. TOTAL TSRI LIABILITY AT 9/30/2011 WAS $5,947,000. DOUGLAS BINGHAM PARTICIPATED IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. NO PAYMENTS WERE MADE DURING THEY YEAR. LIABILITY AT 9/30/2011 WAS $1,325,000 SEE PART V 630304653 13033WRC9 2005-02-23 39547350 SEE PART V 0 0 0 39547350 22905721 641629 16000000 2005 1 0 1 1 0 0 0 1 1 1 0 0 0 0 0 1 FORM 990, SCHEDULE K, PART I (A) ISSUER NAME: CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK (F) DESCRIPTION OF PURPOSE: 1. TO ACQUIRE THE IMMUNOLOGY BUILDING AND TO REFINANCE THE 1994 ARNOLD AND MURIEL BECKMAN CHEMISTRY BUILDING CONSTRUCTION BOND 2. TO PAY FOR A PORTION OF THE ISSUANCE COST OF BOTH ISSUES 3. TO PAY FOR CAPITALIZED INTEREST ON THE BONDS DURING THE CONSTRUCTION PERIOD SEE PART V 0 FORM 990, SCHEDULE L, PART IV A. PAUL HERRLING, TRUSTEEB. EMPLOYEE OF NOVARTIS AND A DIRECTOR OF NOVARTIS AFFILIATE, THE NOVARTIS INSTITUTE FOR FUNCTIONAL GENOMICS (GNF)C. $7,376,463 IN PAYMENTS FROM NOVARTIS OR GNF AND $1,283,926 OF PAYMENTS TO NOVARTIS OR GNFD. LICENSES & FACULTY RECRUITEMENT AGREEMENTS AND EQUIPMENT USAGEE. NOA. BRENT EASTMAN, M.D., TRUSTEEB. KEY EMPLOYEE OF SCRIPPS HEALTHC. $2,834,419D. COST OF SERVICES PAID TO SCRIPPS HEALTHE. NOA. LYNN SCHENK, TRUSTEEB. DIRECTOR ON THE BOARD OF SEMPRA ENERGYC. $9,258,703D. UTILITY PAYMENTS MADE TO SDG&E, A SUBSIDIARY OF SEMPRA ENERGYE. NO FORM 990, SCHEDULE L, ADDITIONAL INFORMATION PHILLIP FROST, M.D. IS A TRUSTEE OF TSRI AND IS A SIGNIFICANT SHAREHOLDER IN OPKO HEALTH, INC. ("OPKO"). OPKO IS A HEALTH CARE COMPANY FOCUSED ON THE DEVELOPMENT OF PHARMACEUTICALS, HAS A USE LICENSE WITH TSRI, AND MAY BE INVOLVED IN BUSINESS TRANSACTIONS WITH TSRI IN THE FUTURE.RICHARD A. LERNER, M.D. IS THE PRESIDENT AND CEO OF TSRI. DR. LERNER SERVES AS CHAIRMAN ON ONE OF THE SCIENTIFIC ADVISORY BOARDS OF PFIZER, INC. HE IS UNCOMPENSATED FOR HIS SERVICES TO PFIZER. TSRI AND PFIZER, INC. ARE PARTIES TO A COLLABORATIVE RESEARCH AGREEMENT CURRENTLY IN PLACE. IN ADDITION, DR. LERNER SERVES ON THE BOARD OF DIRECTORS AND IS THE CHAIR OF THE COMPENSATION COMMITTEE OF OPKO. OPKO'S RELATIONSHIP WITH TSRI IS EXPLAINED ABOVE. X 7 152802 COST/SELLING PRICE X COMPUTER SERVERS FROM IBM 1 13435 COST/SELLING PRICE 0 1 1 THIRD PARTY USE: PART I, LINE 32B: SHARES OF STOCK GIFTED TO TSRI ARE TRANSFERRED INTO OUR BROKERAGE ACCOUNT AT SALOMON SMITH BARNEY AND THEY SELL THE SHARES AND WIRE THE PROCEEDS TO TSRI. NON REPORTING OF REVENUE: PART I, LINE 33: ADDITIONALLY, STOCK GIFTS FOR A TOTAL OF $138,770 WERE GIVEN TO BE APPLIED AGAINST PLEDGES. THEY WERE APPLIED AGAINST A PLEDGE RECEIVABLE RATHER THAN REVENUE. FORM 990, PART VI, SECTION A, LINE 2 TSRI BOARD OF TRUSTEE MEMBERS CLAUDIA S. LUTTRELL AND MARK S. SKAGGS HAVE A FAMILY RELATIONSHIP. DR. RICHARD LERNER AND DR. PHILLIP FROST HAVE A BUSINESS RELATIONSHIP. DR. RICHARD LERNER AND GERALD COHN HAVE A BUSINESS RELATIONSHIP. DR. LAWRENCE HOROWITZ, MARK PEARSON, RALPH SHAPIRO, RICHARD ELKUS AND LOUIS GONDA HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER. FORM 990, PART VI, SECTION B, LINE 11 ON JUNE 21, 2012, THE AUDIT COMMITTEE REVIEWED A DRAFT OF THE FORM 990 (INCLUDING ALL SUPPLEMENTAL SCHEDULES.) THIS REVIEW INCLUDED A PRESENTATION OF THE STATEMENTS BY THE CHIEF FINANCIAL OFFICER WITH PARTICULAR EMPHASIS ON DISCLOSURES ABOUT GOVERNANCE AND ABOUT TRANSACTIONS INVOLVING INTERESTED PERSONS. THE 990 WILL BE PROVIDED TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C TSRI'S CONFLICT OF INTEREST POLICY COVERS ALL SCIENTIFIC EMPLOYEES, KEY EMPLOYEES, OFFICERS AND TRUSTEES. IT IS ADMINISTERED BY THE PROFESSIONAL AFFAIRS COMMITTEE OF THE BOARD OF TRUSTEES. THE CONFLICT OF INTEREST POLICY COMPLIES WITH THE REQUIREMENTS OF OTHER OVERSIGHT BODIES SUCH AS THE NIH. ALL TRANSACTIONS INVOLVING POTENTIAL OR ACTUAL CONFLICTED PERSONS ARE BROUGHT BEFORE THE PROFESSIONAL AFFAIRS COMMITTEE WHICH, AFTER EXAMINATION OF ALL RELEVANT INFORMATION, MAY DO ONE OF THE FOLLOWING: 1. APPROVE THE TRANSACTION SUBJECT TO A CONFLICT MITIGATION PLAN 2. DISAPPROVE THE TRANSACTION 3. REQUEST ADDITIONAL INFORMATION FURTHER, THERE IS AN ANONYMOUS "HOT LINE" WHERE ALL EMPLOYEES ARE INVITED TO DISCLOSE INFORMATION OF A BROAD NATURE, INCLUDING POTENTIAL OR PERCEIVED CONFLICTS OF INTEREST. ONCE APPROVED BY THE PROFESSIONAL AFFAIRS COMMITTEE, TRANSACTIONS INVOLVING OFFICERS ARE BROUGHT TO THE BOARD OF TRUSTEES FOR FINAL REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES ANNUALLY APPROVES THE COMPENSATION FOR THE PRESIDENT; AND, APPROXIMATELY EVERY OTHER YEAR AS CHANGES TO EXECUTIVE COMPENSATION REQUIRE REVIEW, THE BOARD'S COMPENSATION COMMITTEE (CC) SELECTS AND ENGAGES AN OUTSIDE COMPENSATION CONSULTANT. THIS WOULD BE DONE LESS THAN BI-ANNUALLY ONLY IF THERE HAVE BEEN MATERIAL CHANGES IN THE INSTITUTE OR THE PRESIDENT'S RESPONSIBILITIES. THE CONSULTANT MEETS WITH THE VP OF HR TO ENSURE IT HAS COMPLETE AND ACCURATE INFORMATION REGARDING THE INSTITUTE AND SCOPE OF EXECUTIVE RESPONSIBILITY. THE CONSULTANT DETERMINES PEER INSTITUTIONS FOR INCLUSION IN A COMPENSATION SURVEY. THE CONSULTANT CONDUCTS A COMPENSATION REVIEW USING SPECIALIZED AND PUBLISHED SURVEYS, AND SUBMITS A WRITTEN OPINION TO THE CC IN ACCORDANCE WITH THE PROVISIONS OF SECTION 53.4958-6(C)(2) AND SATISFIES THE PROFESSIONAL ADVICE REQUIREMENTS OF SECTION 53.4958-1(D)(III) OF THE INCOME TAX REGULATIONS. AFTER THE CONSULTANT PRESENTS THE SURVEY TO THE CC, THE CC REVIEWS THE EXECUTIVE PERFORMANCE AS COMMUNICATED FROM THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. THE CC REVIEWS EXECUTIVE TRAVEL, BUSINESS EXPENSES, AND OUTSIDE PROFESSIONAL ACTIVITIES DISCLOSURE. THE CC THEN MAKES AN INDEPENDENT RECOMMENDATION TO THE BOARD OF TRUSTEES ON EXECUTIVE COMPENSATION, WHICH MUST BE APPROVED BY THE BOARD OF TRUSTEES. AFFECTED TRUSTEES ABSTAIN FROM PARTICIPATION IN THIS PROCESS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. THE FINANCIAL STATEMENTS ARE AVAILABLE ON THE TSRI WEB-SITE AND ARE FILED WITH THE STATE OF FLORIDA BY THE SCRIPPS FLORIDA FUNDING CORPORATION. THE STATEMENTS ARE PROVIDED TO BOND HOLDERS THROUGH TSRI'S DISSEMINATION AGENT. THE ANNUAL INFORMATION RETURN IS PROVIDED UPON REQUEST. FORM 990, PART VII, SECTION B: TSRI PATENTS MANY OF ITS DISCOVERIES. FOR MOST OF THOSE DISCOVERIES, THE COST OF THESE PATENTS IS RECOVERED FROM THIRD PARTIES PURSUANT TO THE TERMS OF THE UNDERLYING LICENSE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -10,280,072. SHARED SERVICES -945,854. OTHER/ROUNDING 5. BOOK/TAX DIFFERENCE ON K-1 INCOME -1,048,948. TOTAL TO FORM 990, PART XI, LINE 5: -12,274,869.