2012-11-13T07:08:14-06:00 2012-06-30 561391615 CRAWLEY LEE & COMPANY PA PO BOX 5595 ASHEVILLE NC 28813 990 2011-07-01 560767736 WARREN WILSON COLLEGE WARR 8282983325 PO BOX 9000 ASHEVILLE NC 288159000 JONATHAN EHRLICH 8282983325 2012-11-05 JAMES A LEE P00548231 8282745524 2011 2016-02-24 21:20:13Z JONATHAN EHRLICH PO BOX 9000 ASHEVILLE NC 288159000 56968735 0 X WWW.WARREN-WILSON.EDU X 1962 NC THE MISSION OF WARREN WILSON COLLEGE IS TO PROVIDE A DISTINCTIVE UNDERGRADUATE AND GRADUATE LIBERAL ARTS EDUCATION. THE COLLEGE'S UNDERGRADUATE EDUCATION COMBINES ACADEMICS, WORK, AND SERVICE IN A LEARNING COMMUNITY COMMITTED TO ENVIRONMENTAL RESPONSIBILITY, CROSS-CULTURAL UNDERSTANDING, AND THE COMMON GOOD. THE COLLEGE IS AN INDEPENDENT, ACCREDITED, FOUR-YEAR LIBERAL ARTS COLLEGE WHICH AWARDS THE BACHELOR OF ARTS AND BACHELOR OF SCIENCE DEGREE IN A VARIETY OF DISCIPLINES AND THE MASTER OF FINE ARTS DEGREE IN CREATIVE WRITING. 39 36 1521 29 -151752 -151752 6041730 6357714 30705645 31091296 2391736 10283194 1539565 -576830 40678676 47155374 8047226 8410245 0 0 18738276 18652858 0 0 1059743 11231195 10949990 38016697 38013093 2661979 9142281 101597511 108610397 18563082 18469985 83034429 90140412 X THE MISSION OF WARREN WILSON COLLEGE IS TO PROVIDE A DISTINCTIVE UNDERGRADUATE AND GRADUATE LIBERAL ARTS EDUCATION. THE COLLEGE'S UNDERGRADUATE EDUCATION COMBINES ACADEMICS, WORK, AND SERVICE IN A LEARNING COMMUNITY COMMITTED TO ENVIRONMENTAL RESPONSIBILITY, CROSS-CULTURAL UNDERSTANDING, AND THE COMMON GOOD. THE COLLEGE IS AN INDEPENDENT, ACCREDITED, FOUR-YEAR LIBERAL ARTS COLLEGE WHICH AWARDS THE BACHELOR OF ARTS AND BACHELOR OF SCIENCE DEGREE IN A VARIETY OF DISCIPLINES AND THE MASTER OF FINE ARTS DEGREE IN CREATIVE WRITING. 0 0 31364663 8410245 30311006 MOST PROGRAMS RENDERED ARE RELATED TO PROVIDING STUDENTS, ON A NON-DISCRIMINATORY BASIS, FOUR-YEAR LIBERAL ARTS DEGREES THROUGH AN INTEGRATED TRIAD OF ACADEMIC STUDY, USEFUL AND PRODUCTIVE WORK, AND SERVICE TO OTHERS BEYOND THE CAMPUS COMMUNITY. THE FULL-TIME EQUIVALENT ENROLLMENT AT THE COLLEGE DURING THE 2011-12 ACADEMIC YEAR WAS APPROXIMATELY 902 UNDERGRADUATE STUDENTS, AND A TOTAL OF 198 STUDENTS GRADUATED FROM THE COLLEGE DURING THE YEAR. A LOW-RESIDENCY GRADUATE PROGRAM IN CREATIVE WRITING LEADING TO A MASTER OF FINE ARTS DEGREE IS ALSO OFFERED, AND AVERAGES AROUND 75 ENROLLEES. THE COLLEGE PREPARES STUDENTS REPRESENTING A BROADLY DIVERSE WORLD FOR SERVICE, LEADERSHIP, AND MEANINGFUL LIFELONG WORK AND STUDY BY OFFERING AN EDUCATIONAL PROGRAM THAT ENABLES STUDENTS TO THINK CRITICALLY, OBTAIN AND EVALUATE INFORMATION EFFECTIVELY, AND COMMUNICATE CLEARLY, INTRODUCING THEM TO A VARIETY OF WAYS BY WHICH HUMANS ACQUIRE AND USE KNOWLEDGE, AND THAT PROVIDES STUDENTS WITH OPPORTUNITIES TO DEVELOP A BREADTH OF UNDERSTANDING AND TO MAKE CONNECTIONS AMONG AREAS CONSIDERED CRITICAL TO A LIBERAL ARTS CURRICULUM, REQUIRING THAT THEY DEMONSTRATE A DEPTH OF UNDERSTANDING THROUGH COMPETENCE IN ONE OR MORE ACADEMIC DISCIPLINES. ENVIRONMENTAL STUDIES IS THE MAJOR WITH THE LARGEST NUMBER OF STUDENTS, IN KEEPING WITH ANOTHER INSTITUTIONAL OBJECTIVE, THAT OF PROMOTING ENVIRONMENTAL RESPONSIBILITY THROUGH EDUCATION, CAMPUS OPERATIONS, POLICY, AND COMMUNITY OUTREACH. THE COLLEGE ALSO FURNISHES STUDENTS WITH OPPORTUNITIES TO UNDERSTAND AND APPRECIATE A VARIETY OF CULTURES, ASSISTING THEM IN DEVELOPING AWARENESS OF THE COMMONALITY OF HUMAN PROBLEMS AND THE DIVERSITY OF THE WORLD. TOWARD THESE ENDS, THE COLLEGE SPONSORED A NUMBER OF STUDY ABROAD DESTINATIONS IN BELIZE, CHILE, TANZANIA, NICARAGUA AND ITALY TO WHICH 60 STUDENTS TRAVELED, LED BY THE COLLEGE'S OWN FACULTY AND STAFF. IN ADDITION, 34 STUDENTS STUDIED ABROAD INDEPENDENTLY FOR THE SUMMER, SEMESTER, OR YEAR WITH PARTNER INSTITUTIONS OR OTHER U.S. ACCREDITED PROGRAMS IN SIX DIFFERENT AFRICAN NATIONS, NINE LATIN AMERICAN NATIONS, FIVE EUROPEAN NATIONS AND THREE NATIONS IN THE NEAR EAST. THE TRIAD CONCEPT OF EDUCATION ALSO LEADS STUDENTS INTO CONSIDERED REFLECTION ON THE MEANING AND VALUE OF WORK AND SERVICE TO OTHERS, GUIDING STUDENTS IN EXAMINING THEIR LIVES AND ARTICULATING THEIR BELIEFS AND VALUES, AND PROVIDES THEM WITH OPPORTUNITIES FOR PERSONAL, PHYSICAL, MORAL, AND SPIRITUAL DEVELOPMENT. TOWARDS THESE ENDS, THE COLLEGE ORGANIZED 114 DIVERSE WORK CREWS IN THE COLLEGE WORK PROGRAM DURING THE YEAR, WITH APPROXIMATELY 831 STUDENTS PARTICIPATING IN THE FALL OF 2011 AND 718 STUDENTS PARTICIPATING IN THE SPRING OF 2012. THE ANNUAL COLLEGE-WIDE WORK DAY YIELDED ABOUT 420 STUDENT PARTICIPANTS AND ABOUT 35 FACULTY/STAFF PARTICIPANTS. IN THE SERVICE AREA OF THE TRIAD, OVER 850 STUDENTS COMPLETED 28,224 VOLUNTEER HOURS AT 235 LOCAL, NATIONAL, AND INTERNATIONAL AGENCIES DURING THE YEAR. 537158 780290 THE SWANNANOA GATHERING IS A SERIES OF WEEKLY EDUCATIONAL SUMMER MUSIC WORKSHOPS HELD ON THE WARREN WILSON COLLEGE CAMPUS EACH JULY AND AUGUST. THE ENROLLMENT IS LIMITED, WITH AN OPEN FORMAT, WHICH ALLOWS EACH STUDENT TO SELECT THEIR OWN CURRICULUM FROM A VARIETY OF COURSES WITH DIFFERENT EXPERIENCE LEVELS AND ABILITIES. HOUSING AND MEALS FOR PARTICIPANTS IS AN OPTION. THE NORTH CAROLINA DEPARTMENT OF PUBLIC INSTRUCTION HAS ALLOWED 3 HOURS OF TEACHING CERTIFICATE RENEWAL CREDITS, WITH PRIOR APPROVAL, FOR EACH WEEK OF THE SERIES. TOTAL STUDENTS IN THE SUMMER OF 2011 WERE 927, RANGING BETWEEN 60 AND 257 PARTICIPANTS FOR EACH OF THE FIVE WEEKS. 31901821 1 1 0 0 0 0 0 0 1 1 1 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 273 0 1521 1 1 1 0 0 0 0 0 0 0 0 1 0 X 39 36 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 0 1 1 0 X MARY DAVIS CONTROLLER 8282983325 701 WARREN WILSON ROAD SWANNANOA NC 28778 JOHN W ALEXANDER 1.50 X 0 0 0 LESLIE ANDERSON 1.50 X 0 0 0 H ROSS ARNOLD III 1.50 X 0 0 0 MYRON P BOON 1.00 X 0 0 0 STUART U BUICE 1.00 X 0 0 0 CARMEN CASTALDI 1.00 X 0 0 0 DONALD R COOPER 1.50 X 0 0 0 DR HENRY J COPELAND 1.50 X 0 0 0 JOHN W CRUIKSHANK III 1.00 X 0 0 0 TOM CS DAO 1.00 X 0 0 0 DR SHERLE STEVENSON EDWARDS 1.00 X 0 0 0 DR JONATHAN L ELION 2.00 X 0 0 0 THOMAS F FRIST 1.00 X 0 0 0 THE REV ROSA LEE HARDEN 1.00 X 0 0 0 THOMAS K JOHNSON 1.50 X 0 0 0 DR STEVEN M KANE 1.00 X 0 0 0 JOSEPH KARPEN 1.50 X 0 0 0 THOMAS L KILDAY 1.00 X 0 0 0 JAMES A KUHNS 1.00 X 0 0 0 DR ANNE GRAHAM MASTERS 1.50 X 0 0 0 MACK B PEARSALL 2.00 X 0 0 0 ROBERT G SMITH 0.50 X 0 0 0 DR GEORGE E STUART 1.00 X 0 0 0 THE REV DR TERRY V SWICEGOOD 1.00 X 0 0 0 FRANCES M WHITFIELD 1.00 X 0 0 0 MIMI R CECIL EX-OFFICIO 0.00 X 0 0 0 MELISSA T DAVIS EX-OFFICIO 1.00 X 0 0 0 HOWELL L FERGUSON EX-OFFICIO 0.00 X 0 0 0 J LLOYD HORTON EX-OFFICIO 1.50 X 0 0 0 FRESSIA W MCKEE EX-OFFICIO 1.50 X 0 0 0 DR DAVID G MOORE EX-OFFICIO 1.00 X 0 0 0 THE REVTHOMAS F MAINOR EX-OFFICIO 1.50 X 0 0 0 DR HUGH D VERNER EX-OFFICIO 0.00 X 0 0 0 KERITH A WILLEVER EX-OFFICIO 1.00 X 0 0 0 JOEL B ADAMS 2.50 X X 0 0 0 ALICE BUHL 2.50 X X 0 0 0 WILLIAM H CHRISTY 2.00 X X 0 0 0 ROWENA M POMEROY NON-VOTING 40.00 X 44441 0 8907 STEPHEN L UMMEL 2.00 X X 0 0 0 DR WILLIAM S PFEIFFER EX-OFFICIO 40.00 X X 215745 0 43531 RICHARD BLOMGREN 40.00 X 113650 0 22356 JONATHAN EHRLICH 40.00 X 117454 0 22737 PAULA GARRETT 40.00 X 121867 0 22073 CATHERINE KRAMER 40.00 X 60336 0 16895 DEBORAH MYERS UNTIL 282012 40.00 X 78362 0 24597 PAUL PERRINE FROM 292012 40.00 X 21867 0 15199 IAN ROBERTSON 40.00 X 78185 0 16281 DEBRA GILDEA 40.00 X 82339 0 19206 JOHN BROCK 40.00 X 69539 0 11717 1003785 0 223499 4 0 1 0 ESKOLA LLC 2418 MORELOCK ROAD MORRISTOWN TN 37814 ROOFING 112365 1 2276306 4081408 816900 6357714 TUITION AND FEES 611310 24063211 24063211 AUXILIARY ENTERPRISES 611710 6247795 6247795 SWANNANOA GATHERING 611600 780290 780290 31091296 -4016892 20573 -4037465 23088966 616204 8612160 792924 14476806 -176720 14300086 35531 14264555 200421 408277 -207856 -207856 OTHER 900099 416507 416507 GAIN FROM UNUSUAL ITEM 900099 123637 123637 CHANGE IN INTEREST RAT 900099 -909118 -909118 -368974 47155374 31091296 -151752 9858116 8410245 8410245 940823 881535 59288 14455959 12961244 943604 551111 1009916 793491 159764 56661 1370133 1144106 166890 59137 876027 680719 148918 46390 576324 576324 1891952 1662848 229104 AUXILIARY ENTERPRISES-O 2308828 2308828 INSTITUTIONAL SUPPORT & 2232546 1945390 287156 INSTRUCTION-OTHER 1490759 1490759 STUDENT SERVICES-OTHER 1268938 1268938 1180643 1180643 38013093 31901821 5051529 1059743 1850 1850 8220392 8487457 118879 602510 457004 465347 48010 47127 191870 199650 283834 314458 67694417 35623128 32649317 32071289 17026965 13886453 35819766 45019695 6779624 7514561 101597511 108610397 810371 913915 740737 792643 12065000 11505000 4946974 5258427 18563082 18469985 X 31819329 32269132 24051896 30385372 27163204 27485908 83034429 90140412 101597511 108610397 X 9142281 -2036298 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 72683 427780 404905 95558 0 55604445 447618 8050656 1123071 1366630 250 61612768 51020460 2307494 4549816 1018222 1253582 1520 55604446 44624971 535142 7925351 940636 1123964 404 51020460 45535622 3001958 -1973292 918433 1011527 9357 44624971 0.17440 0.37950 0.44610 1 0 2964494 2964494 52135114 24491562 27643552 11958129 10776316 1181813 636680 355250 281430 32071289 CASH EQUIVALENTS 31936 F LIMITED PARTNERSHIPS 44987759 F 45019695 CASH/EQUIVALENTS RESTRICTED TO INVESTMENT IN PROPERTY & EQUIPMENT 706837 OTHER ASSETS 168976 BENEFICIAL INTEREST IN CHARITABLE REMAINDER & PERPETUAL TRUSTS 5133982 CONSTRUCTION IN PROGRESS 844812 PROPERTY HELD FOR RESALE 659954 7514561 ADVANCE TUITION & ROOM DEPOSITS 2005964 OBLIGATIONS UNDER CAPITAL LEASE 164393 SWAP INSTRUMENT 2364765 OTHER 157916 ANNUITY PAYABLE 565389 5258427 47155374 38013093 9142281 -2036298 -2036298 7105983 37117108 -2036298 -8410245 -10446543 47563651 -408277 -408277 47155374 30011125 0 30011125 8001968 8001968 38013093 PART IV, LINE 1B: THE COLLEGE HOLDS FUNDS FOR A VARIETY OF ACADEMIC, INSTITUTIONAL, AND STUDENT GROUPS AND ACCOUNTS FOR ADDITIONS TO, AND DISTRIBUTIONS FROM, THESE FUNDS SEPARATELY. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE COLLEGE'S ENDOWMENT INVESTMENT AND SPENDING POLICIES, APPROVED BY THE BOARD OF TRUSTEES, WORK TOGETHER IN AN ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF ITS ENDOWMENT ASSETS OVER THE LONG TERM THROUGH ADDITIONAL REAL GROWTH FROM INVESTMENT RETURNS. THE INVESTMENT POLICY ESTABLISHES AN ACHIEVABLE LONG-TERM RETURN OBJECTIVE OF AT LEAST 6% ABOVE INFLATION OVER A PERIOD OF TEN YEARS THROUGH DIVERSIFICATION OF ASSET CLASSES, RELYING ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED) AND CURRENT YIELD (INTEREST AND DIVIDENDS). THE SPENDING POLICY CALCULATES THE DISBURSEMENT FROM THE ENDOWMENT FUNDS BASED ON 5% OF THE AVERAGE FAIR VALUE OF THE PRIOR 12 QUARTERS, ALLOWING FOR THE PRESERVATION OF PRINCIPAL AS WELL AS CAPITAL APPRECIATION. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FINANCIAL STATEMENT NOTE FOR LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): THE COLLEGE'S POLICY IS TO EVALUATE ALL TAX POSITIONS AND TO CONSULT WITH EXPERTS TO IDENTIFY THOSE THAT MAY BE CONSIDERED UNCERTAIN. ALL IDENTIFIED MATERIAL TAX POSITIONS WILL BE ASSESSED AND MEASURED BY A REASONABLY POSSIBLE THRESHOLD TO DETERMINE IF THE BENEFIT OF AN UNCERTAIN TAX POSITION SHOULD BE RECOGNIZED IN THE FINANCIAL STATEMENTS. ANY CHANGES IN THE AMOUNT OF A TAX POSITION WILL BE RECOGNIZED IN THE PERIOD THE CHANGE OCCURS. THE COLLEGE IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, EXCEPT ON INCOME DERIVED FROM UNRELATED BUSINESS INCOME ACTIVITIES. THE COLLEGE'S FEDERAL RETURNS OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) FOR 2011, 2010 AND 2009 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY ARE FILED. THE COLLEGE'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS (FORM 990T) FOR 2011, 2010 AND 2009 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY ARE FILED. PART XII, LINE 2D - OTHER ADJUSTMENTS: SCHOLARSHIPS & FELLOWSHIPS NETTED WITH TUITION ON FINANCIAL STATEMENTS -8,410,245. PART XII, LINE 4B - OTHER ADJUSTMENTS: UNRELATED BUSINESS COST OF GOODS SOLD REPORTED SEPARATELY ON FORM 990-T -408,277. PART XIII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS & FELLOWSHIPS NETTED WITH TUITION ON FINANCIAL STATEMENTS 8,410,245. UNRELATED BUSINESS COST OF GOODS SOLD REPORTED SEPARATELY ON FORM 990-T -408,277. 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 NONDISCRIMINITORY POLICIES OF THE COLLEGE ARE MADE KNOWN TO ALL SCHOOLS AND AREAS VISITED BY THE ADMISSIONS PERSONNEL AS WELL AS IN ALL COLLEGE LITERATURE. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 WARREN WILSON COLLEGE RECEIVES FEDERAL AND STATE FINANCIAL AID AND GRANTS. 1 FEDERAL CAMPUS NEED-BASED FINANCIAL AID GRANTS (FEDERAL SEOG) AWARDED TO WARREN WILSON COLLEGE STUDENTS. 85 95039 0 FAFSA RESULTS NORTH CAROLINA STATE CAMPUS NEED-BASED FINANCIAL AID GRANTS (NC CONTRACTUAL) AWARDED TO WARREN WILSON COLLEGE STUDENTS. 70 170348 0 FAFSA RESULTS INSTITUTIONAL NEED-BASED FINANCIAL AID GRANTS AND MERIT SCHOLARSHIPS FOR WARREN WILSON COLLEGE STUDENTS FUNDED BY RESTRICTED DONATIONS, ENDOWMENT EARNINGS, AND OPERATING FUNDS. 672 6902493 0 FAFSA RESULTS AND ACADEMICS PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE OFFICE OF ADVANCEMENT WORKS WITH DONORS TO ESTABLISH GUIDELINES FOR THE USE AND DISBURSEMENT OF ANY DONATED FUNDS ACCORDING TO THE DONOR'S WISHES AND WITHIN PRACTICAL AND LEGAL PROCESSES. THE DONOR'S RESTRICTIONS ("WISHES") ARE PUT IN WRITING WITH COPIES MAINTAINED IN THE ADVANCEMENT OFFICE, THE CONTROLLER'S OFFICE, AND THE FINANCIAL AID OFFICE, IF APPLICABLE. IF THE DONATION IS FOR GRANTS OR SCHOLARSHIPS TO BE DISTRIBUTED BY THE FINANCIAL AID OFFICE, THE ASSISTANT DIRECTOR OF FINANCIAL AID MAINTAINS A SPREADSHEET OF GRANT TITLES AND RESTRICTIONS WHICH ARE UPDATED AS NEEDED AS WELL AS A PERMANENT PAPER FILE. THE GRANTS OR SCHOLARSHIPS ARE "MATCHED" WITH AN ELIGIBLE RECIPIENT BY THE ASSISTANT DIRECTOR. THE ADVANCEMENT OFFICE WILL RECEIVE A LIST OF THESE RECIPIENTS IN THE FALL AND AN UPDATED LIST IN THE EARLY SPRING. THE ADVANCEMENT OFFICE REVIEWS THE LIST AND PREPARES LUNCHEON INVITATIONS FOR MOST OF THE RECIPIENTS AND DONORS. THE FINAL STEP IN THE PROCESS IS A RANDOM AUDIT CONDUCTED ONCE A YEAR BY AN OUTSIDE AUDIT FIRM. SCHEDULE I, PART III(A) - GRANTS AND OTHER ASSISTANCE TO INDIVIDUALS IN THE UNITED STATES: NEED-BASED GRANTS WERE AWARDED TO WARREN WILSON COLLEGE STUDENTS BASED ON FAFSA (FREE APPLICATION FOR STUDENT AID) RESULTS. FAFSA RESULTS ARE NOT REQUIRED TO BE CONSIDERED FOR MERIT SCHOLARSHIPS, BUT MANY OF THESE DOLLARS WERE USED TO MEET THE FEDERAL DEFINITION OF "NEED". X X X 0 1 X X X X 1 0 0 0 0 0 0 0 0 DR WILLIAM S PFEIFFER EX-OFFICIO 207781 0 0 0 7964 0 20400 0 23131 0 259276 0 0 0 PART I, LINE 1A DISCRETIONARY SPENDING ACCOUNT: THE COLLEGE DOES NOT BUDGET DISCRETIONARY ACCOUNTS. HOWEVER, SOME OFFICERS HAVE DISCRETIONARY FUNDS THAT DONORS HAVE RESTRICTED FOR THAT PURPOSE. HOUSING ALLOWANCE/PERSONAL RESIDENCE: AS CONDITIONS OF EMPLOYMENT, THE PRESIDENT AND DEAN OF STUDENTS ARE REQUIRED TO LIVE ON CAMPUS IN COLLEGE-OWNED RESIDENCES. PERSONAL SERVICES: THE PRESIDENT IS REIMBURSED FOR THE CLEANING OF HIS HOME AND FOR OTHER EXPENSES RELATED TO OFFICIAL COLLEGE FUNCTIONS THAT TAKE PLACE THERE. IN ADDITION, THE COLLEGE STAFF PROVIDES LANDSCAPING, MAINTENANCE AND OTHER RELATED SERVICES FOR THE PRESIDENT'S HOME. PART I, LINE 1B ALTHOUGH THE COLLEGE DOES NOT HAVE A WRITTEN POLICY REGARDING PAYMENT OR REIMBURSEMENT OF THE EXPENSES REFERRED TO IN SCHEDULE J, PART I, LINE 1A, IT IS UNDERSTOOD BY EMPLOYEES THAT THE COLLEGE UTILIZES BEST PRACTICES. THE COLLEGE HAS POLICIES IN PLACE IN REGARD TO REIMBURSEMENT OF EXPENSES FOR TRAVEL, ENTERTAINMENT, AND SIMILAR EXPENSES. ALL OFFICERS, TRUSTEES, AND THE COLLEGE PRESIDENT FOLLOW ACCOUNTABLE REIMBURSEMENT PLANS. PART I, LINE 4A DEBORAH MYERS, FORMER DEAN OF STUDENT LIFE, WAS DISMISSED IN FEBRUARY, 2012 AND RECEIVED SEVERANCE PAYMENTS AMOUNTING TO $33,366. NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY 65818PEH8 2006-02-16 15000000 SEE SCHEDULE K, PART V SUPPLEMENTAL INFORMATION 0 0 0 3495000 15000000 184986 4961651 9853363 2007 1 0 1 1 0 0 0 0 1 0 1 1 BANK OF AMERICA MERRILL LYNCH 20.250000000000 0 0 0 0 0 SCHEDULE K SUPPLENTAL INFORMATION THE $15,000,000 PROCEEDS OF THE BONDS ISSUED ON FEBRUARY 16, 2006 WERE USED AS FOLLOWS: $8,935,000 TO PAY OFF THE PRINCIPAL OF SERIES 1998 BONDS, $918,363 TO PAY OFF THE PRINCIPAL OF A 2002 NOTE, $184,986 FOR BOND ISSUANCE COSTS, AND $4,961,651 FOR THE PROJECT OF CONSTRUCTION, RENOVATION, AND EQUIPPING CERTAIN BUILDINGS ON THE COLLEGE CAMPUS. THE PROJECT WAS SUBSTANTIALLY COMPLETED AND ALL BOND PROCEEDS WERE EXPENDED BY THE END OF FISCAL YEAR 2007. THE BONDS MATURE ON JUNE 1, 2031, AND THE REMAINING BOND PRINCIPAL BALANCE AT JUNE 30, 2012 WAS $11,505,000. EVELYN PFEIFFER WIFE OF PRESIDENT 20000 WITH THE APPROVAL OF THE COLLEGE BOARD OF TRUSTEES, THE PRESIDENT'S WIFE RECEIVES $20,000 IN TAXABLE INCOME ANNUALLY FROM THE COLLEGE FOR THE PERFORMANCE OF CERTAIN OFFICIAL DUTIES AS THE SPOUSE OF THE PRESIDENT. 0 DONNA READ DOMESTIC PARTNER OF DEAN OF THE COLLEGE 25700 EMPLOYED BY THE COLLEGE AS AN INSTRUCTOR IN OUTDOOR LEADERSHIP AND PHYSICAL EDUCATION. 0 X 2 0 NO VALUES ASSIGNED X 3 41160 FAIR MARKET VALUE X 1 775740 COST 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 UPON RECEIVING THE DRAFT COPY OF THE FORM 990, CERTAIN QUESTIONS THAT ARISE ARE DISTRIBUTED TO THE APPROPRIATE STAFF. KEY PERSONNEL AND TRUSTEES REVIEW THE FORM 990 BEFORE IT IS SIGNED, INCLUDING THE VICE PRESIDENT FOR ADMINISTRATION AND FINANCE/CHIEF FINANCIAL OFFICER AND THE CONTROLLER, AND THE CHAIR OF THE STANDING AUDIT COMMITTEE AND THE CHAIR OF THE BOARD. THE FULL BOARD IS PROVIDED THE OPPORTUNITY TO REVIEW THE COPY OF THE 990 WITHOUT SCHEDULE B ON ITS PASSWORD-PROTECTED WEBSITE, WITH A NOTICE THAT THE FULL SCHEDULE B IS AVAILABLE FOR REVIEW IN THE CONTROLLER'S OFFICE. FORM 990, PART VI, SECTION B, LINE 12C THE COLLEGE HAS A WRITTEN CONFLICT OF INTEREST POLICY, LAST AMENDED ON OCTOBER 2, 2007, WHICH SPECIFIES IN DETAIL THOSE CIRCUMSTANCES GIVING RISE TO A POTENTIAL CONFLICT OF INTEREST ON THE PART OF THE COLLEGE TRUSTEES. PURSUANT TO THIS POLICY, TRUSTEES MUST FILE AN ANNUAL REPORT SPECIFYING ANY RELATIONSHIPS OR ACTIVITIES WHICH MIGHT POSSIBLY CONSTITUTE A CONFLICT. THESE REPORTS ARE REVIEWED BY THE CHAIR OF THE AUDIT COMMITTEE OF THE BOARD AS WELL AS THE CHAIR OF THE BOARD OF TRUSTEES AND ANY ISSUES RAISED BY A SPECIFIC REPORT ARE RESOLVED ACCORDING TO THE PROCEDURES OUTLINED IN THE CONFLICT OF INTEREST POLICY. A SIMILAR POLICY FOR EMPLOYEES OF THE COLLEGE WAS APPROVED AT A STAFF FORUM ON MARCH 23, 2011, AND DEFINES CONFLICT OF INTEREST AND RELATED TERMS AND OUTLINES A PROCEDURE FOR DISCLOSURE, REPORTING AND COMPLIANCE WITH THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES, ACTING EITHER AS A BOARD OR THROUGH ITS EXECUTIVE COMMITTEE, IS RESPONSIBLE FOR AN ANNUAL REVIEW OF THE PRESIDENT'S PERFORMANCE AND APPROVES ANY ADJUSTMENTS TO HIS ANNUAL SALARY AS PART OF THAT REVIEW. THE PROCESS FOR THIS REVIEW AND APPROVAL HAS IN THE PAST CONSISTED OF (1) A REVIEW OF THE PRESIDENT'S ACTIVITIES AND ACHIEVEMENTS EACH YEAR BY THE CHAIR OF THE BOARD; (2) A REPORT BY THE CHAIR OF THE RESULTS OF THAT REVIEW TO THE FULL BOARD OR THE EXECUTIVE COMMITTEE OF THE BOARD, DEPENDING UPON WHETHER THE REVIEW IS A ONE-YEAR REVIEW OR A THREE-YEAR REVIEW; (3) THE PRESENTATION BY THE CHAIR OF A RECOMMENDATION TO THE BOARD OR EXECUTIVE COMMITTEE OF A SALARY ADJUSTMENT, IF APPROPRIATE; AND (4) THE APPROVAL OR DISAPPROVAL, AS THE CASE MAY BE, BY THE BOARD OR EXECUTIVE COMMITTEE OF SUCH RECOMMENDED SALARY ADJUSTMENT. IN FORMULATING THE RECOMMENDATION FOR A SALARY ADJUSTMENT, IT HAS BEEN THE PRACTICE OF THE CHAIR TO REVIEW COMPARABLE SALARY DATA FOR OTHER PRIVATE COLLEGES AND UNIVERSITIES IN NORTH CAROLINA TO DETERMINE SALARY TRENDS AND ACTUAL SALARIES PAID TO PRESIDENTS OF SIMILARLY SITUATED INSTITUTIONS. THESE DATA ARE SHARED WITH THE BOARD AT THE TIME THE RECOMMENDATION IS SUBMITTED TO THE BOARD OR EXECUTIVE COMMITTEE. THE BOARD DOES NOT DIRECTLY APPROVE SALARY ADJUSTMENTS FOR THE OFFICERS AND KEY PERSONNEL OF THE COLLEGE. IT DOES, HOWEVER, IN APPROVING THE BUDGET FOR THE COLLEGE DURING ANY PARTICULAR FISCAL YEAR, EXERCISE CONTROL OVER THE AMOUNT OF AGGREGATE SALARY ADJUSTMENTS BY FIXING A PERCENTAGE INCREASE IN THE BUDGET FOR SUCH INCREASES. WITHIN THIS AGGREGATE PERCENTAGE, THE PRESIDENT IS AUTHORIZED TO ADJUST INDIVIDUAL SALARIES. SOME SUCH ADJUSTMENTS WILL EXCEED THE AGGREGATE PERCENTAGE INCREASE AND SOME WILL FALL BELOW THE AVERAGE, DEPENDING ON INDIVIDUAL PERFORMANCE REVIEWS. IN ADDITION, THE PRESIDENT OF THE COLLEGE, IN REVIEWING INDIVIDUAL SALARIES, ALSO RELIES ON DATA RELATING TO COMPARABLE POSITIONS AT PEER GROUP SCHOOLS AS WELL AS OTHER STATISTICAL DATA. FORM 990, PART VI, SECTION C, LINE 18 THE COLLEGE MAKES ITS FORM 1023 AND FORMS 990 AND 990-T AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE COLLEGE'S CURRENT POLICY IS TO MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC ON A CASE-BY-CASE, NEED-TO-KNOW BASIS, RESERVING THE RIGHT TO WITHHOLD THIS INFORMATION IN SITUATIONS DEEMED POTENTIALLY HARMFUL TO THE COLLEGE. HOWEVER, CONSIDERATION WILL BE GIVEN TO POSTING THESE MATERIALS ON THE COLLEGE'S WEBSITE, WHICH IS AVAILABLE TO THE GENERAL PUBLIC, AFTER MANAGEMENT AND LEGAL COUNSEL HAVE BEEN CONSULTED AS TO THE FEASIBILITY OF THIS. THE COLLEGE MAKES ITS FINANCIAL STATEMENTS AVAILABLE ON VARIOUS WEBSITES, AND AS REQUESTED BY DONORS, FOUNDATIONS, AND AGENCIES. GOVERNING BODY VOTING RIGHTS FORM 990, PART VI, SECTION A, LINE 1A: PER ARTICLE IV, SECTION 4.5 OF THE COLLEGE BYLAWS, BOARD TRUSTEES EMERITI DO NOT HAVE THE RIGHT TO VOTE. IN ADDITION, EX-OFFICIO BOARD TRUSTEES MAY VOTE ON ALL MATTERS EXCEPT FOR THE FOLLOWING: (A) AMENDING OR RESTATING THE COLLEGE'S ARTICLES OF INCORPORATION; (B) AMENDING OR RESTATING THE COLLEGE'S BYLAWS; (C) SELECTING OR REMOVING THE COLLEGE'S PRESIDENT; (D) INCREASING OR DECREASING THE NUMBER OF TRUSTEES ON THE BOARD; (E) DISSOLVING THE COLLEGE'S CORPORATE EXISTENCE, MERGING THE COLLEGE WITH ANY OTHER ENTITY, OR SELLING, PLEDGING OR TRANSFERRING ALL OR SUBSTANTIALLY ALL OF THE COLLEGE'S ASSETS. GOVERNING BODY DELEGATION OF AUTHORITY ON ITS BEHALF FORM 990, PART VI, SECTION A, LINE 1A: ARTICLE VII, SECTION 7.4 OF THE COLLEGE BYLAWS DELEGATES BROAD AUTHORITY TO THE EXECUTIVE COMMITTEE TO ACT ON BEHALF OF THE BOARD OF TRUSTEES DURING THE INTERVALS BETWEEN MEETINGS OF THE FULL BOARD, EXCEPT THAT THE EXECUTIVE COMMITTEE MAY NOT (A) RECOMMEND OR APPROVE DISSOLUTION, MERGER OR THE SALE, PLEDGE, OR TRANSFER OF ALL OR SUBSTANTIALLY ALL OF THE COLLEGE'S ASSETS, (B) ELECT, APPOINT, OR REMOVE TRUSTEES OR FILL BOARD VACANCIES OR ON ANY OF ITS COMMITTEES, (C) ADOPT, AMEND, OR REPEAL THE ARTICLES OF INCORPORATION OR BYLAWS, OR (D) TERMINATE THE EMPLOYMENT OF THE PRESIDENT OF THE COLLEGE. THE EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR, VICE CHAIR, IMMEDIATE PAST CHAIR, THE PRESIDENT, SECRETARY, AND TREASURER OF THE BOARD, AND THE CHAIRS OF THE STANDING COMMITTEES OF THE BOARD, INCLUDING THE AUDIT AND TRUSTEESHIP COMMITTEES. IN ADDITION, UNDER BYLAWS ARTICLE III SECTION 3.12, THE BOARD MAY BY RESOLUTION DELEGATE TO COMMITTEES, OR TO OFFICERS OR EMPLOYEES OF THE COLLEGE, SUCH DUTIES AS IT MAY SEE FIT, EXCEPT AS LIMITED BY STATUTE OR THE BYLAWS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -2,036,298. AUDIT COMMITTEE AND SELECTION OF INDEPENDENT AUDITOR FORM 990, PART XI, LINE 2C: THE STANDING AUDIT COMMITTEE OF THE BOARD OF TRUSTEES CONSISTS OF THREE OR MORE TRUSTEES ELECTED BY THE BOARD, AND CANNOT INCLUDE THE BOARD CHAIR, VICE CHAIR, PRESIDENT, TREASURER, OR CHAIR OF THE BUSINESS AND FINANCE COMMITTEE. THE AUDIT COMMITTEE RECOMMENDS TO THE BOARD THE DESIGNATION OF AN INDEPENDENT AUDITOR EACH YEAR AND CAUSES AN AUDITED STATEMENT OF THE FINANCIAL CONDITION OF THE COLLEGE AS OF THE CLOSE OF THE FISCAL YEAR AND OF THE RECEIPTS AND EXPENDITURES OF EACH YEAR TO BE PREPARED AND SUBMITTED TO THE BOARD OF TRUSTEES AT LEAST ONCE A YEAR. THE INDEPENDENT AUDITOR HAS ACCESS TO THE AUDIT COMMITTEE AT ANY TIME.