2011-12-12T09:00:29-06:00 2011-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2010-07-01 237013253 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT LAKE 8472345005 1905 W Field Court Lake Forest IL 60045 MALCOLM DOUGLAS 2011-12-09 true 3128997000 2010 2016-02-24 21:20:13Z JOHN N POPOLI 1905 W Field Court Lake Forest IL 60045 12184807 false X WWW.LAKEFORESTMBA.EDU X 1946 IL LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. 23 18 204 250 0 0 363788 478077 11377157 11472806 256550 174051 51044 37688 12048539 12162622 148828 234240 0 0 6874121 6906042 0 0 258194 4724060 4767422 11747009 11907704 301530 254918 17729176 18938482 1095633 1467473 16633543 17471009 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. LFGSM GRANTS MBA DEGREES AND SPECIALIZES IN MANAGEMENT DEVELOPMENT EDUCATIONAL PROGRAMS FOR MANAGERS AND EXECUTIVES OF AREA BUSINESSES AND OTHER ORGANIZATIONS. THE MAJORITY OF LFGSM'S STUDENTS ENROLLED ARE FROM CHICAGO, ILLINOIS AND ITS SURROUNDING SUBURBS. false 7490652 234240 10273872 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT COMBINES TRADITIONAL AND LEADING-EDGE ACADEMICS WITH A PRACTITIONER FACULTY THAT PROVIDES A DYNAMIC CONNECTION WITH THE REAL WORLD OF BUSINESS. THIS DISTINCTIVE APPROACH RESPONDS DIRECTLY TO THE RESULTS-ORIENTED DEMANDS OF TODAY'S BUSINESS ENVIRONMENT WHILE SATISFYING ACADEMIC RIGOR. OUR FACULTY MEMBERS OFFER DIVERSE PERSPECTIVES AND REPRESENT A WIDE ARRAY OF ORGANIZATIONS, INDUSTRIES, AND FUNCTIONS. THEY BLEND SOLID BUSINESS THEORY WITH PRACTICAL EXPERIENCE, SO STUDENTS RECEIVE A HANDS-ON EDUCATION THAT IS UNMATCHED. ALL OF OUR FACULTY MEMBERS HAVE EXTENSIVE PRACTICAL EXPERIENCE IN THE SUBJECT AREAS THEY TEACH. BUILDING ON THE SKILLS STUDENTS BRING TO THE PROGRAM, OUR COURSES SHARPEN THEIR ANALYTICAL ABILITIES BY COMBINING COURSE WORK WITH DAY-TO-DAY PROFESSIONAL EXPERIENCES. OUR GENERAL MBA PROGRAM OFFERS A BROAD KNOWLEDGE BASE IN EVERY AREA NEEDED FOR SUCCESS IN TODAY'S BUSINESS WORLD. INTERACTIVE AND PERSONAL, OUR FACULTY MEMBERS INCORPORATE A WIDE RANGE OF TEACHING METHODOLOGIES, INCLUDING FACILITATED DISCUSSION, ISSUES AND RESPONSIBILITIES FACING MANAGEMENT TODAY. 600040 1201222 LAKE FOREST CORPORATE EDUCATION (LFCE) IS A PART OF LAKE FOREST GRADUATE SCHOOL WHICH PROVIDES INTERRELATED FORMAL CLASSROOM BUSINESS EDUCATION INSTRUCTION IN THE FORM OF CERTIFICATE PROGRAMS AND SHORT-TERM WORKSHOPS IN SUBJECTS SUCH AS STRATEGIC EXECUTION, FINANCE, COMMUNICATION, LEADERSHIP DEVELOPMENT, NEGOTIATIONS, PROJECT MANAGEMENT, MANAGING CHANGE, AND SALES. LFCE PROVIDES THESE PROGRAMS TO CORPORATIONS, PRIMARILY IN THE CHICAGO AREA. LFCE DEVELOPS CURRICULA, WHICH WHEN DELIVERED THROUGH FORMAL CLASSROOM INSTRUCTION ENABLE EMPLOYEES OF THOSE ORGANIZATIONS TO BROADEN THEIR BUSINESS KNOWLEDGE, AND TO HELP THEM MOVE FROM INDIVIDUAL CONTRIBUTOR TO ORGANIZATIONAL CONTRIBUTORS. THIS IS ACCOMPLISHED BY TAILORING CURRICULA, CONTENT, AND PROGRAMS TO MEET SPECIFIC NEEDS OF THE EMPLOYEES OF THE CORPORATIONS. 8090692 true true false false false false false false true true false false false false true true false true false true false false false true false false false true true false false false false false false true false false false false false false false false false false false true 24 0 true 204 true false false false false false true true false false false false X 23 18 false false false false false false false true true false false true true true true true true true true false X MALCOLM DOUGLAS 8475745166 1905 W FIELD COURT LAKE FOREST IL 60045 X ARVIND J SINGH 1 X 0 0 0 B MONTGOMERY EDSON 1 X 16400 0 0 B RICHARD SURKAMER 1 X 0 0 0 BRUCE MCGILLIVRAY 1 X 0 0 0 CHARLES BRUMMELL 1 X 0 0 0 DAVID M MCDONOUGH 1 X X 0 0 0 GARY CHAN 1 X 0 0 0 HEATHER LOWE 1 X 0 0 0 J RON MOORE 1 X 0 0 0 JOAN H BAILAR 1 X X 8805 0 0 JODY C BERNS 1 X 0 0 0 JOHN P PAPPAS 1 X 24545 0 0 KENNETH A HOFFMAN 1 X X 0 0 0 PAMELA MIX 1 X 0 0 0 PATRICIA A COFFEY 1 X 0 0 0 RICK L ADAMS 1 X 8080 0 0 ROBERT D BLACKWELL 1 X 0 0 0 SAMUEL P BRILLIANT 1 X 0 0 0 SCOTT I SHAFFER 1 X 0 0 0 SEAMON A LINCOLN 1 X 0 0 0 STEPHEN D SCHUTT 1 X 0 0 0 WILLIAM J COLBOURNE 1 X 0 0 0 JOHN N POPOLI 38 X X 230512 0 31362 CURTIS WANG 38 X 157884 0 39257 GREG KOZAK 38 X 128821 0 32654 JOAN M STELTMANN 38 X 104397 0 13184 KATHY LECK 38 X 180681 0 41093 SUZANNE COONAN 38 X 100733 0 31012 ARLENE MAYZEL 38 X 134106 0 28364 MALCOLM DOUGLAS 38 X 157455 0 36761 STASIA ZWISLER 38 X 80793 0 0 FRANK BRLETICH 38 X 119332 0 26174 HOWARD PRAGER 38 X 101751 0 30806 SUSAN VECE 38 X 114282 0 19702 MARTHA WATT 38 X 111283 0 20572 1779860 0 350941 12 true true false MICHAEL WALTERS ADVERTISING 444 N WABASH STREET CHICAGO IL 60611 ADVERTISING AGENCY 684872 PEPPER CONSTRUCTION COMPANY 643 NORTH ORLEANS STREET CHICAGO IL 606543608 CONSTRUCTION 513877 AVI SYSTEMS INC 621 BUSSE ROAD SUITE 101 BENSENVILLE IL 60106 AUDIO VISUAL INTEGRATORS 184817 THE ACCENT TRAVEL GROUP ONE BELMONT AVENUE SUITE 415 BALA CYNWYD PA 19004 TRAVEL ASSISTANCE 182590 COLMAN BROHAN & DAVIS INC 54 W HUBBARD ST CONCOURSE LEVEL E CHICAGO IL 60654 ADVERTISING 141995 6 39905 247525 190647 478077 MBA PROGRAM TUITION 10166833 10166833 NON-DEGREE BUSINESS PROGRAMS 1201222 1201222 OTHER MBA PROGRAM FEES 98695 98695 EA PROGRAM 6056 6056 0 0 0 0 11472806 174051 174051 0 0 51480 0 51480 0 51480 51480 0 0 0 6105 39905 22185 -16080 -16080 0 0 LOGO MERCHANDISE 804 804 MISCELLANEOUS REVENUE 1484 1484 0 0 0 0 2288 12162622 11475094 0 209451 0 234240 234240 0 0 1275382 314787 868000 92595 0 4494162 3333212 1145669 15281 263647 137807 119441 6399 520553 272091 235828 12634 352298 212528 132663 7107 0 42103 4380 37723 44800 44800 0 0 0 0 1227215 1227215 113299 44055 69244 123695 27487 96208 0 414812 414812 39710 12872 26679 159 0 32540 6839 24739 962 0 0 448881 300750 148131 54579 23926 30653 PROGRAM SERVICES 1098254 1098254 STUDENT SERVICES AND INSTITUTIONAL SUPPORT 814794 215899 475838 123057 OPERATIONS AND MAINTENANCE 312740 209538 103202 0 0 0 0 11907704 8090692 3558818 258194 0 2930734 2607732 210084 253162 23685 24990 936193 847608 124903 118617 13297596 3376292 9059426 9921304 4444151 5165069 0 0 0 17729176 18938482 737577 1040274 358056 427199 0 1095633 1467473 X 15903879 16764967 529664 506042 200000 200000 16633543 17471009 17729176 18938482 X 254918 582548 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 262674 17002 12206 267470 110094 150000 9955 7375 262674 108030 7474 5410 110094 0.00000 0.74770 0.25230 false false 2253006 2253006 8269963 1879465 6390498 708244 37559 670685 2066383 1459268 607115 0 9921304 0 0 12162622 11907704 254918 582548 0 582548 837466 12557923 582548 24808 -234240 373116 12184807 -22185 -22185 12162622 11720457 24808 22185 46993 11673464 234240 234240 11907704 Intended uses of endowment funds Schedule D, Part V, Line 4 THE YOMINE ENDOWMENT FUND AND THE KAULE ENDOWMENT FUND ARE USED TO PROVIDE SCHOLARSHIPS TO MBA STUDENTS. FIN 48 (ASC 740) footnote Schedule D, Part X, Line 2 THE SCHOOL (LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT) HAS RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE INDICATING THAT IT IS A NOT-FOR-PROFIT ENTITY AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC") AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC, EXCEPT FOR TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE SCHOOL ADOPTED GUIDANCE WITH RESPECT TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS. NO PROVISION HAS BEEN MADE FOR INCOME TAXES IN THE ACCOMPANYING FINANCIAL STATEMENTS, AS THE SCHOOL HAS HAD NO SIGNIFICANT UNRELATED BUSINESS INCOME. IF THE SCHOOL INCURS INTEREST AND PENALTIES, THE SCHOOL RECOGNIZES INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST AND INCOME TAX EXPENSE, RESPECTIVELY. THE SCHOOL HAS NO AMOUNTS ACCRUED FOR INTEREST AND PENALTIES AS OF JUNE 30, 2011. THE SCHOOL HAS NOT BEEN EXAMINED BY ANY TAX JURISDICTION. THE SCHOOL HAS NO ON-GOING FEDERAL, STATE OR LOCAL TAX AUDITS, HOWEVER THE SCHOOL'S TAX RETURNS FOR 2008 AND SUBSEQUENT YEARS ARE OPEN TO EXAMINATION. THE COLLEGE DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. Other revenues in audited financial statements not in form 990 Schedule D, Part XII, Line 2d SCHOLARSHIPS - -234240; Other revenues in form 990 not in audited financial statements Schedule D, Part XII, Line 4b FUNDRAISING EXPENSES - -22185; Other expenses in audited financial statements not in form 990 Schedule D, Part XIII, Line 2d FUNDRAISING EXPENSES - 22185; Other expenses in form 990 not in audited financial statements Schedule D, Part XIII, Line 4b SCHOLARSHIPS - 234240; true true true true true true true false false false false false false false true false true Financial aid or assistance from a governmental agency Schedule E, Line 6a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT(LFGSM) RECEIVES THE FOLLOWING FINANCIAL AID AND/OR ASSISTANCE FROM A GOVERNMENTAL AGENCY: SCHOLARSHIPS, LOANS, VETERANS BENEFITS, AND SUPPLEMENTAL INFORMATION RESOURCES. ALL LFGSM STUDENTS ARE ELIGIBLE TO APPLY FOR FEDERAL STAFFORD LOANS, REGARDLESS OF THEIR INCOME. IN ADDITION TO STAFFORD LOANS, LFGSM STUDENTS MAY BE ELIGIBLE TO APPLY FOR THE SUPPLEMENTAL FINANCIAL RESOURCES INCLUDING SCHOLARSHIPS, VETERANS BENEFITS, AND PRIVATE LOANS. LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S DEPARTMENT OF EDUCATION TITLE IV SCHOOL CODE IS G23192. SOUTH AMERICA 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 86048 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 103813 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V 91447 0 0 281308 false false false false false false ACTIVITIES PER REGION SCHEDULE F, PART 3 THE FOLLOWING STUDY ABROAD/TRAVEL PROGRAMS ARE OFFERED BY LFGSM: 5841 GLOBAL PRACTICUM: ASIA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE ASIAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. FOCUSING ON EMERGING MARKETS IN TERMS OF DEVELOPMENT, ECONOMY, GROWTH, AND PHILOSOPHIES IN A MULTI-CULTURAL SETTING, THE CHALLENGES AND OPPORTUNITIES OF THESE DYNAMIC MARKETS ARE ADDRESSED. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM ASIAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5840 GLOBAL PRACTICUM: EUROPE THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE EUROPEAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM EUROPEAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5842 GLOBAL PRACTICUM: LATIN AMERICA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE LATIN AMERICAN AND U.S. HISPANIC BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM LATIN AMERICAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. GOLF OUTING 46010 39905 6105 9615 12570 NONE 0 0 0 0 0 0 0 0 0 46010 39905 6105 0 0 9615 0 0 12570 22185 -16080 true SCHOLARSHIPS 169 234240 0 FMV NA Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 ALL GRANTS ARE IN THE FORM OF SCHOLARSHIPS AND ARE APPLIED TOWARD THE COST OF TUITION ONLY. X X X X X X true false false false false false false false false JOHN N POPOLI 228574 0 1000 0 938 0 23174 0 8188 0 261874 0 0 0 CURTIS WANG 156033 0 1000 0 851 0 16831 0 22426 0 197141 0 0 0 GREG KOZAK 127066 0 1000 0 755 0 13556 0 19098 0 161475 0 0 0 JOAN M STELTMANN 51178 0 0 0 53219 0 5865 0 7319 0 117581 0 0 0 KATHY LECK 178898 0 1000 0 783 0 18667 0 22426 0 221774 0 0 0 ARLENE MAYZEL 132341 0 1000 0 765 0 13979 0 14385 0 162470 0 0 0 MALCOLM DOUGLAS 155613 0 1000 0 842 0 16404 0 20357 0 194216 0 0 0 Severance or change-of-control payment Schedule J, Part I, Line 4a JOAN STELTMANN LEFT THE ORGANIZATION IN APRIL 2010 AND RECEIVED A SEVERANCE PAYMENT OF $48,402. BARBARA WANG SPOUSE OF CURTIS WANG, VP OF MARKETING & ADMISSIONS 14047 INDEPENDENT CONTRACTOR ARRANGEMENT false Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b THE FORM 990 IS REVIEWED BY MEMBERS OF THE FINANCE AND AUDIT COMMITTEE BEFORE IT IS FILED. AT THE TIME OF THIS REVIEW OUR PROFESSIONAL TAX PREPARER GUIDES THE COMMITTEE THROUGH EACH SECTION OF THE FORM AND ANSWERS QUESTIONS THAT THE COMMITTEE MAY HAVE. A FINAL COPY IS PROVIDED TO ALL BOARD MEMBERS AFTER THE RETURN IS FILED WITH THE IRS. THE FINANCE AND AUDIT COMMITTEE IS MADE UP OF MEMBERS, ALL OF WHOM HAVE A FINANCIAL BACKGROUND, AND CAN UNDERSTAND AND CAN INTERPRET FINANCIAL STATEMENTS. Conflict of interest policy Form 990, Part VI, Section B, Line 12c AS A CONDITION OF HIRE, AND ANNUALLY THEREAFTER, ALL FULL-TIME AND PART-TIME EMPLOYEES ARE REQUIRED TO READ AND SIGN A CONFIDENTIALITY & CONFLICT OF INTEREST AGREEMENT. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE V.P. - HR, V.P. - FINANCE, AND ALL OTHER PARTIES INVOLVED WILL DISCUSS THE ISSUE AND WILL: A. DOCUMENT THE CONTROLS THAT WILL BE FOLLOWED TO ACHIEVE COMPLIANCE, OR B. TERMINATE THE ARRANGEMENT IF SUFFICIENT CONTROLS CANNOT BE PUT INTO PLACE TO ACHIEVE COMPLIANCE. THE SIGNED AGREEMENT WILL BE PLACED IN THE EMPLOYEE'S PERSONNEL FILE. EMPLOYEES WHO IMPROPERLY USE OR DISCLOSE CONFIDENTIAL BUSINESS INFORMATION OR WHO FAIL TO DISCLOSE A CONFLICT OF INTEREST FROM WHICH HE/SHE OR A MEMBER OF HIS/HER FAMILY AS DEFINED ABOVE COULD GAIN SUBSTANTIAL BENEFIT WILL BE SUBJECT TO CORRECTIVE ACTION, UP TO AND INCLUDING IMMEDIATE TERMINATION OF EMPLOYMENT, EVEN IF THEY DO NOT ACTUALLY BENEFIT FROM DISCLOSURE OF THE INFORMATION OR LACK OF DISCLOSURE OF A CONFLICT OF INTEREST. ALL SITTING BOARD MEMBERS ARE REQUIRED ANNUALLY TO SIGN A CONFLICT OF INTEREST STATEMENT WHICH IS REVIEWED BY THE PRESIDENT. BOARD MEMBERS ARE REQUESTED TO COMPLETE 11 QUESTIONS THAT COVER VARIOUS POSSIBLE CONFLICTS OF INTEREST, INCLUDING THOSE REQUIRED TO BE DISCLOSED IN THE FORM 990. THIS PROCESS IS FACILITATED BY THE SCHOOL'S PROFESSIONAL TAX PREPARERS. ALL DISCLOSED CONFLICTS ARE REVIEWED BY MANAGEMENT AND ITS PROFESSIONAL TAX PREPARERS TO ENSURE AN APPROPRIATE RESPONSE ON THE FORM 990. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S (LFGSM) COMPENSATION AND HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS REQUESTS AN EXTERNAL INDEPENDENT REVIEW OF COMPENSATION AND BENEFITS PROVIDED TO THE SCHOOLS "INTERESTED PERSONS" (DISQUALIFIED INDIVIDUALS) TO ASSIST THE COMMITTEE IN ITS ASSESSMENT OF THE REASONABLENESS OF THEIR COMPENSATION COMPARED TO MARKET DATA ASSEMBLED BY AN INDEPENDENT THIRD PARTY. THE INDEPENDENT THIRD PARTY'S PROCESSES FOR COLLECTING AND ASSEMBLING MARKET DATA IS CONSISTENT WITH THE REBUTTABLE PRESUMPTION CHECKLIST USED BY THE INTERNAL REVENUE SERVICE IN CONDUCTING COMPENSATION REVIEWS AS WELL AS CONTEMPORARY COMPENSATION PRACTICES. ALL MARKET DATA ARE ASSEMBLED FROM REPUTABLE, COMMERCIALLY-AVAILABLE SURVEYS, AS WELL AS PEER REVIEW FROM IRS FORM 990 SUBMISSIONS. THIS REPORT PRESENTS AN OVERVIEW OF THE TOTAL CASH AND BENEFITS PROVIDED TO THE LEADERSHIP STAFF OF COMPARABLE NOT-FOR-PROFIT COLLEGES AND UNIVERSITIES, OTHER NON-PROFIT ORGANIZATIONS, HEALTHCARE ORGANIZATIONS, AND SIMILAR FOR-PROFIT ORGANIZATIONS. THE COMPARABILITY OF MULTIPLE SURVEY SOURCES FOLLOWS THE EXECUTIVE COMPENSATION PHILOSOPHY ADOPTED BY THE LFGSM BOARD IN 2003 AND REVISED IN 2004 AND 2009. THIS WIDER RANGE OF ORGANIZATIONS BETTER REFLECTS WHERE LFGSM IS MOST LIKELY TO RECRUIT FROM OR LOSE ITS SENIOR TALENT TO. TO CLEARLY UNDERSTAND THE MARKETPLACE, ALL COMPENSATION DATA ARE DIVIDED INTO TWO PARTS: ONE DATA SET MATCHING INFORMATION AS CLOSE TO THE CURRENT SIZE OF LFGSM AS POSSIBLE. IT SHOULD BE NOTED THAT THE SMALLEST SIZE "CUT" OF DATA IN PUBLISHED SOURCES MAY BE LARGER THAN THE CURRENT REVENUE OR EMPLOYEE SIZE OF LFGSM, BUT IT IS THE SMALLEST AVAILABLE DATA. THE SECOND SET OF DATA MATCHES INFORMATION ONE "CUT" HIGHER THAN THE SMALLEST SIZE. THIS 2 "CUT" ANALYSIS SUPPORTS THE CURRENT COMPENSATION PHILOSOPHY. BOTH DATA SETS ARE INCLUDED TO PROVIDE THE EXECUTIVE COMMITTEE WITH AN UNDERSTANDING OF THE MARKETPLACE. THE METHODOLOGY OF THE STUDY IS DESCRIBED FOLLOWING THE OVERVIEW SECTION. THE MARKET ANALYSIS SECTION PRESENTS THE MARKET COMPARISON INFORMATION FOR BASE AND ACTUAL CASH COMPENSATION RECEIVED BY THE EIGHT INCUMBENT MANAGEMENT BOARD MEMBERS. THE REVIEW INCLUDES COMPARISONS TO THE MARKET'S 50TH PERCENTILE FOR BOTH BASE AND TOTAL COMPENSATION USING THE SMALLEST SIZE (APPROXIMATING LFGSM) AND ONE DATA SIZE LARGER. THE BENEFIT ANALYSIS SECTION PRESENTS AN ANALYSIS OF THE BENEFITS AND PREQUISITES RECEIVED BY THE LFGSM MANAGEMENT BOARD. THE REPORT CONCLUDES WITH THE RECOMMENDATIONS SECTION. THE COMPARISON OF TOTAL COMPENSATION IS FOR THE EXECUTIVE STAFF (7) WHO ARE ACTIVELY EMPLOYED BY LFGSM AS OF MARCH 2010. THE SALARY SURVEYS USED OBTAIN DATA FROM NOT-FOR-PROFIT EDUCATIONAL ORGANIZATIONS AND APPLICABLE NON-PROFIT AND FOR-PROFIT SERVICE INDUSTRIES. DATA IS EXTRACTED FROM BONUS ELIGIBLE INCUMBENTS. THE EXECUTIVE POSITIONS ARE MARKET MATCHED USING THE FOLLOWING CRITERIA TO BE CONSISTENT WITH THE REBUTTABLE PRESUMPTION CHECKLIST OF THE IRS. DATA IS COLLECTED FROM REPUTABLE, COMMERCIALLY AVAILABLE MARKET DATA. DATA IS COLLECTED FROM ORGANIZATIONS SIMILAR IN REVENUE AND NUMBER OF EMPLOYEES TO LFGSM OR THE NEXT LARGEST "SIZE" IN THE SURVEY DATA. DATA IS GATHERED FROM THE ENTIRE U.S., AS THESE POSITIONS WOULD BE RECRUITED FROM A NATIONAL POOL OF APPLICANTS. DATA WAS INDEXED TO THE CHICAGO AREA TO BETTER REFLECT THE WAGE AND SALARY RATES FOR THE AREA. MARKET MATCHES ARE DETERMINED BY JOB RESPONSIBILITY, NOT JOB TITLE ALONE. SEVERAL EXECUTIVE STAFF MEMBERS HAVE DIVERSE RESPONSIBILITIES. IN THESE CASES THE DATA MAY BE BLENDED TO REFLECT THE ADDED ACCOUNTABILITIES. THIS PROCESS WAS LAST UNDERTAKEN IN MARCH 2011 AND IS PERFORMED EVERY 3 YEARS. THE NEXT PROJECTED YEAR THE PROCESS WILL BE UNDERTAKEN IS MARCH 2014. THE POSITIONS FOR WHICH THE PROCESS WERE USED WERE THE PRESIDENT AND CEO, VP-EDUCATIONAL PROGRAMS AND SERVICES,VP-R & D AND INNOVATION, EVP MARKETING, ADMISSIONS, AND CORPORATE SALES, VP HR & FUNDRAISING, VP INFORMATION TECHNOLOGY, AND VP-FINANCE & CFO. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b NARRATIVE WAS COMBINED WITH LINE 15A NARRATIVE; SEE ABOVE RESPONSE. Public Disclosure Form 990, Part VI, Section C, Line 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. PART VII COMPENSATION PAID TO BOARD MEMBERS COMPENSATION PAID TO BOARD MEMBERS IS PROVIDED IN EXCHANGE FOR SERVICES AS FACULTY MEMBERS. THESE PERSONS ARE NOT COMPENSATED IN THEIR POSITION AS BOARD MEMBERS. Other changes in net assets or fund balances Form 990, Part XI, Line 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS - 582548;