2011-05-13T11:51:29-05:00 2010-06-30 Moss Adams LLP 9665 Granite Ridge Drive Suite 600 San Diego CA 92123 990 2009-07-01 952544535 UNIVERSITY OF SAN DIEGO UNIV 6192604600 5998 ALCALA PARK SAN DIEGO CA 921102492 Leendert R Hering 6192605998 2011-05-12 1 Patricia J Mayer 8586271400 2009 2016-02-24 21:20:13Z MARY E LYONS PHD 5998 ALCALA PARK SAN DIEGO CA 921102492 681226712 0 X WWW.SANDIEGO.EDU X 1949 CA POST SECONDARY EDUCATION 41 40 5407 1283 1937921 185645 21267569 27128140 288507650 302190534 -25043497 4081707 14894053 13755149 299625775 347155530 64831014 75193450 0 156483207 161627599 0 6638255 95681693 88864408 316995914 325685457 -17370139 21470073 833552451 884684573 275272816 279115809 558279635 605568764 The University of San Diego is a Roman Catholic institution committed to advancing academic excellence, expanding liberal and professional knowledge, creating a diverse and inclusive community, and preparing leaders dedicated to ethical conduct and compassionate service. 0 0 258280332 75193450 314190556 The University of San Diego is engaged in post-secondary education of approximately 5,000 undergraduate students and 2,500 graduate and professional students; this program includes room & board for the student population. 258280332 1 1 0 1 0 0 1 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 906 0 1 5407 1 1 1 1 MX CJ NT BD EI 1 1 1 0 1 1 0 0 0 41 40 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 CA X X OFFICE OF THE CONTROLLER 6192604600 5998 ALCALA PARK HUGHES ADMINISTRAT SAN DIEGO CA 92110 A EUGENE TREPTE 1.00 X X 0 0 0 AUGUSTINE P GALLEGO 1.00 X 0 0 0 DARLENE MARCOS SHILEY 1.00 X X 0 0 0 DAVID H SHAFFER 1.00 X 0 0 0 DONALD R KNAUSS 1.00 X 0 0 0 FRANK D ALESSIO 1.00 X X 0 0 0 HENRY L NORDHOFF 1.00 X 0 0 0 HERBERT B TASKER 1.00 X 0 0 0 JAMES B MCCARTHY 1.00 X 0 0 0 JAMES C PETERS 1.00 X 0 0 0 JAMES V MAZZO 1.00 X 0 0 0 JOHN M ROBBINS JR 1.00 X 0 0 0 JOHN T REDMOND 1.00 X 0 0 0 KAYE WOLTMAN 1.00 X X 0 0 0 KEITH A JOHNSON 1.00 X 0 0 0 LUIS MAIZEL 1.00 X 0 0 0 MANUEL BARBA MD 1.00 X 0 0 0 MARGARITA HERNANDEZ 1.00 X 0 0 0 BARRIE CROPPER 1.00 X 0 0 0 REV MSGR RICHARD DUNCANSON 1.00 X 200 0 0 PATRICIA A WOERTZ 1.00 X 0 0 0 PATRICIA M HOWE 1.00 X 0 0 0 JAMES C KRAUSE 1.00 X 3064 0 0 R DONNA M BAYTOP MD 1.00 X 0 0 0 REV MSGR L PURCELL 1.00 X 0 0 0 RICHARD K DAVIS 1.00 X 0 0 0 ROBERT A HOEHN 1.00 X 0 0 0 ROGER AP JOSEPH 1.00 X 0 0 0 RON L FOWLER 1.00 X 0 0 0 STANLEY W LEGRO 1.00 X 0 0 0 SANDRA A BRUE 1.00 X 0 0 0 SHELLEY THOMPSON 1.00 X 0 0 0 SR CAROLYN OSIEK RSCJ 1.00 X 0 0 0 SR KATHLEEN HUGHESRSCJ 1.00 X 0 0 0 TINA S NOVA 1.00 X 0 0 0 WILLIAM GEPPERT 1.00 X 0 0 0 ANN NAVARRA 1.00 X 0 0 0 MARY E LYONS 40.00 X X 419436 0 42340 BYRON C ROTH 1.00 X 0 0 0 RICHARD M BARTELL 1.00 X 0 0 0 CINDY BASSO EATON 1.00 X 0 0 0 JULIE H SULLIVAN 40.00 X 341576 0 32269 TIMOTHY L O'MALLEY 40.00 X 224681 0 42414 REV MSGR D DILLABOUGH 40.00 X 197607 0 40900 CARMEN M VAZQUEZ 40.00 X 248415 0 27627 LEENDERT R HERING 40.00 X 17517 0 2309 KEVIN L COLE 40.00 X 273256 0 45920 DAVID F PYKE 40.00 X 372035 0 43320 SALLY B HARDIN 40.00 X 184553 0 37714 PAULA A CORDEIRO 40.00 X 180842 0 34277 mary boyd 40.00 X 213069 0 40482 WILLIAM T GRIER 40.00 X 532998 0 45489 STEVEN D SMITH 40.00 X 283451 0 41402 DAVID MCGOWAN 40.00 X 256209 0 30428 LAWRENCE A ALEXANDER 40.00 X 252981 0 34783 STEPHEN HORNING 40.00 X 309693 0 0 4311583 0 541674 233 0 1 0 RUDOLPH & SLETTEN INC 10955 vista sorrento pkwy 100 san diego CA 92130 General Contractors 26766061 GC MORGAN CONSTRUCTION CO INC 3755 avocado blvd ste 408 la mesa CA 91941 General Contractors 1771804 ONLINELEARNINGNET 12975 coral tree place los angeles CA 90066 education resources 1436815 KEVIN HOM & ANDREW GOLDMAN ARCHITECTS 45 east 20th st 7th fl new york NY 10003 architect services 936649 JOHN TRACY CLINIC 806 WEST ADAMS BLVD LOS ANGELES CA 90007 EDUCATIONAL SERVICES 435011 21 846738 7765799 18515603 457654 27128140 TUITION AND FEES 900099 267345400 267189378 156022 STUDENT RES & BOARD 721310 31828754 31828754 PARKING SERVICES 611710 2324503 2324503 STUDENT LOAN INTEREST 611710 691877 691877 302190534 4615281 23532 4591749 74912 74912 423449 418101 5348 5348 5348 310621239 21906408 312319052 20817081 -1697813 1089327 -608486 -608486 258935 846738 516948 -258013 -258013 BOOKSTORE 451211 7909683 7896777 12906 SUMMER CONFERENCES 611710 1528033 1032930 495103 ATHLETICS & RECREATION 611710 1345501 1345501 3224597 1880836 1250358 93403 14007814 347155530 314190556 1937921 3898913 75193450 75193450 3968729 2790104 326049 852576 121958974 91481829 27135482 3341663 12143284 8675882 2905142 562260 15216495 10882954 4312687 20854 8340117 5958674 1995278 386165 152361 152361 250325 250325 1498431 1325122 173309 14697763 11594349 2709041 394373 830552 528906 247162 54484 6280566 3865365 1661371 753830 3552982 2131789 1421193 8366821 5601167 2764632 1022 5648324 4718553 842739 87032 1538270 1347917 153106 37247 8078925 6179653 1899272 14867727 8676532 6191195 1285222 245188 1040034 Cost of Sales 11331482 11293463 38019 Miscellaneous 2972047 210434 2761613 Equipment 2367413 1198508 1164561 4344 Entertainment & Promoti 2087741 1595228 350108 142405 Library Services 2060717 2060717 996739 724548 272191 325685457 258280332 60766870 6638255 444390 5713680 1929783 10803608 15147146 8843094 8723341 262800 517800 28197202 31618723 1963606 2226695 6390878 6705478 594488126 113621359 469457608 480866767 259630944 248985097 41844641 87963743 833552451 884684573 42251014 43850525 20939546 16157572 188702976 185029966 5455152 23379280 28622594 275272816 279115809 X 360525444 383043268 50866343 74132041 146887848 148393455 558279635 605568764 833552451 884684573 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 0 0 0 1 120406 0 0 120406 0 Part IV, Supplemental Information: PART IIB, LINE 1J: Faculty with the University's School of Law in the Center for Public Interest and Children's Advocacy Institute offered their research data and legal expertise in an attempt to influence pending legislation concerning consumers rights and children's health, safety and welfare. No attempt was made by the University to influence a political campaign of any office, nor were any political contributions made. 4071789 X X 0 220839532 16513072 27996605 1586239 3688596 260074374 267919923 16378533 -59320886 1375202 2479947 282888 220839533 0.28000 0.72000 0.00000 0 0 11143437 47210661 58354098 455947298 82445227 373502071 76114941 31176132 44938809 4071789 4071789 480866767 WEST COAST CONFERENCE 800846 Alternative Asset Partnerships - Real Estate 248960 Alternative Asset Partnerships - Energy/Resources 3405643 Marketable Alternatives - Opportunistic 4819136 Alternative Asset Partnerships - Venture Capital 5502788 Alternative Asset Partnerships - International Private Equity 6138192 Alternative Asset Partnerships - U.S. Private Equity 6944026 Marketable Alternatives - U.S. Long/Short 8806416 Marketable Alternatives - Distressed 8894829 Marketable Alternatives - Global Long/Short 9159624 Alternative Asset Partnerships - Distressed/Debt Related 10133970 Marketable Alternatives - Event Driven 10476617 Marketable Alternatives - Diversified Arbitrage 12632696 87963743 refundable advances 10559171 bond interest rate swap 18063423 28622594 347155530 325685457 21470073 25831386 -10459 25820927 47291000 296461000 25831386 25831386 270629614 76525916 76525916 347155530 249170000 935049 935049 248234951 77450506 77450506 325685457 Part V, Line 4: Description of Intended Use of Endowment Funds: The University of San Diego endowment funds are utilized based on donor's intent; as of June 30, 2010 the allocation of endowment funds was as follows: Academic Support - 37%, Tuition Funded Quasi - 28%, Scholarships - 16%, Instruction - 6%, Plant Maintenance and Operations - 4%, Public Service - 5% and Other Institutional Support - 4%. Part XI, Line 8 - Other Adjustments: ROUNDED TO FINANCIAL STATEMENT DIFFERENCE: -10459. PART III, LINE 4: They seek to stimulate interest and pride as well as emphasize the cultural value of USD's Fine Arts programs. Sch D,PART XII, LINE 4b Reconciliation of Revenue SCHOLARSHIPS RECLASSED TO EXPENSE 75,965,465 SPECIAL EVENT EXPENSES RECLASSED FROM EXP (516,948) RENTAL EXPENSES RECLASSED FROM EXP (418,101) INV MGMT FEES RECLASSED TO EXP 1,498,431 ROUNDED FINANCIAL STATEMENT DIFFERENCE (2,931) Total Line 4b 76,525,916 Sch D,PART XIII, LINE 2d Reconciliation of Expenses RENTAL EXPENSE RECLASSED 418,101 SPECIAL EVENT EXPENSE RECLASSED 516,948 total 935,049 Sch D,PART XIII, LINE 4b Reconciliation of Expenses SCHOLARSHIPS RECLASSED TO EXPENSES 75,965,465 INV MGMT FEES RECLASSED TO EXPENSES 1,498,431 ROUNDED FINANCIAL STATEMENT DIFFRENCE -13,390 TOTAL LINE 4B 77,450,506 SCHEDULE D, PART X, LINE 2 FIN 48 FOOTNOTE THE UNIVERSITY ADOPTED THE PROVISIONS OF ASC 740-10, INCOME TAXES, RELATED TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS AS of JULY 1, 2008. THE UNIVERSITY HAD NO UNRECOGNIZED TAX BENEFITS WHICH WOULD REQUIRE AN ADJUSTMENT TO THE JULY 1, 2008 BEGINNING BALANCE OF NET ASSETS. THE UNIVERSITY HAS NO UNRECOGNIZED TAX BENEFITS OR LIABILITIES AS OF JUNE 30, 2010 AND 2009. 1 1 1 University of San Diego's racially nondiscriminatory policy published in all recruiting brochures and advertisements as well as undergraduate and graduate bulletins and catalogs. 1 1 1 1 0 0 0 0 0 0 0 0 1 0 THE UNIVERSITY OF SAN DIEGO RECEIVED AN ESTIMATED $96.9M IN CONTRIBUTIONS FROM FEDERAL AND STATE AGENCIES FOR ASSISTANCE IN PROVIDING POST-SECONDARY EDUCATION. THIS INCLUDES $88.1M IN FEDERAL FAMILY EDUCATION LOANS. 1 Founders Gala 414748 318096 96652 216567 Sports Banquet 244610 211860 32750 89449 8 446315 316782 129533 210932 1105673 846738 258935 516948 516948 -258013 1 USD SCHOLARSHIPS 2276 46292096 STUDENT AID - GRADUATE AND LAW 833 14653010 STUDENT AID - ATHLETICS AND RECREATION 168 6029877 STUDENT AID - PRIVATE 149 976336 ENDOWED SCHOLARSHIPS 89 1798094 STUDENT AID - RESIDENCE AND BOARD 78 888546 FEDERAL SCHOLARSHIPS AND GRANTS 446 4555490 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The University awards scholarships to individual students to offset the cost of tuition, fees, room and board, etc. X 1 1 X X X 0 0 0 0 0 0 0 0 0 MARY E LYONS 366532 0 0 0 52904 0 29400 0 12940 0 461776 0 0 0 JULIE H SULLIVAN 295100 0 0 0 46476 0 28800 0 3469 0 373845 0 0 0 TIMOTHY L O'MALLEY 211205 0 0 0 13476 0 26400 0 16014 0 267095 0 0 0 REV MSGR D DILLABOUGH 145631 0 0 0 51976 0 22356 0 18544 0 238507 0 0 0 CARMEN M VAZQUEZ 196439 0 0 0 51976 0 24000 0 3627 0 276042 0 0 0 KEVIN L COLE 264685 0 0 0 8571 0 30800 0 15120 0 319176 0 0 0 DAVID F PYKE 274660 0 0 0 97375 0 33600 0 9720 0 415355 0 0 0 SALLY B HARDIN 162553 0 0 0 22000 0 22860 0 14854 0 222267 0 0 0 PAULA A CORDEIRO 142342 0 0 0 38500 0 22320 0 11957 0 215119 0 0 0 mary boyd 192429 0 0 0 20640 0 25920 0 14562 0 253551 0 0 0 WILLIAM T GRIER 481498 0 0 0 51500 0 29400 0 16089 0 578487 0 0 0 STEVEN D SMITH 273911 0 0 0 9540 0 29438 0 11964 0 324853 0 0 0 DAVID MCGOWAN 256209 0 0 0 0 0 28205 0 2223 0 286637 0 0 0 LAWRENCE A ALEXANDER 252981 0 0 0 0 0 27192 0 7591 0 287764 0 0 0 STEPHEN HORNING 309693 0 0 0 0 0 0 0 0 0 309693 0 0 0 Part I, Line 1a SCHEDULE J, PART I, LINE 1A: THE PRESIDENT IS PROVIDED ON CAMPUS HOUSING AND IT IS RECORDED AS A NON-TAXABLE BENEFIT. California Statewide Communities Development Authority 660164610 130911V56 2005-11-16 93415000 school of education project 1 1 101857190 2000673 92441516 2009 1 0 1 1 0 0 0 0 0 0.00880 0.00880 1 1 1 1 George K Baum Financial Services 39.900000000000 0 jp morgan chase bank 1 0 WILLIAM GRIER X 127800 77800 0 1 1 DAVID PYKE X 200000 120000 0 1 1 Jullie Sullivan X 200000 200000 0 1 1 Mary Boyd X 120000 120000 0 1 1 517800 X 14 457654 market value 0 1 1 Third Party Use: Part I, Line 32b: THE UNIVERSITY utilizes a Broker to sell stock gifts received Form 990, Part VI, Section B, line 11 A COPY OF THE FORM 990 IS PRESENTED TO THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES AND A COPY OF THE 990 IS AVAILABLE TO THE ORGANIZATION'S ENTIRE GOVERNING BOARD ONLINE AT THE SECURED TRUSTEE WEBSITE BEFORE IT IS FILED. Form 990, Part VI, Section B, line 12c EACH YEAR THE BOARD OF DIRECTORS AND EXCUTIVE MANAGEMENT ARE REQUIRED TO SIGN A CONFLICT OF INTEREST DISCLOSURE STATEMENT. ANY CONFLICT IS REVIEWED AND HANDLED IN ACCORDANCE WITH THE WRITTEN POLICY. Form 990, Part VI, Section B, line 15 The Board of Trustee executive compensation committee, which is independent, determines compensation using comparable data and contemporaneously documenting its decisions. This process is done annually for the president and the vice presidents. The Executive Vice President and Provost determines the compensations for the Deans using market benchmark data prepared by independent persons and the benchmark schools are selected by the Executive Compensation Committee of the Board. Form 990, Part VI, Section C, line 18 fORMS 990 AND 990T ARE AVAILABLE TO THE PUBLIC BY VIEWING THE GUIDESTAR WEBSITE AND UPON REQUEST FROM THE OFFICE OF THE CONTROLLER AT 619-260-2302; accounting@sandiego.edu; OR ONSITE FROM THE OFFICE OF THE CONTROLLER. FORM 1023 IS AVAILABLE UPON REQUEST FROM THE OFFICE OF THE CONTROLLER AT 619-260-2302; accounting@sandiego.edu; OR ONSITE FROM THE OFFICE OF THE CONTROLLER. Form 990, Part VI, Section C, line 19 Audited Financial Statements are available upon request from the Office of the Controller at 619-260-2302; accounting@2sandieGO.edu; Governing Documents are available upon request from The Office of the President at 619-260-4520; Conflict of Interest Policy is available online at www.sandiego.edu. FORM 8886, LINE 6: NOTE: THE TAX ADVICE PROVIDED BY DOSTART CLAPP GORDON & COVENEY LLP; MUSICK, PEELER AND GARRETT LLP; AND ERNST & YOUNG LLP WAS LIMITED TO RECENT ADVICE PERTAINING TO THE DISCLOSURE OF THE TRANSACTION DESCRIBED IN THIS FORM 8886 WITH THE UNIVERSITY OF SAN DIEGO'S ANNUAL RETURN. THE SERVICES PROVIDED BY DOSTART CLAPP, MUSICK PEELER AND ERNST & YOUNG DID NOT INVOLVE ANY TAX ADVICE PERTAINING TO THE STRUCTURING OF THE TRANSACTION DISCLOSED IN THIS FORM 8886 OR ADVISING THE UNIVERSITY OF SAN DIEGO BEYOND ITS REPORTABLE TRANSACTION DISCLOSURE AND RELATED OBLIGATIONS. THE FEES PAID TO DOSTART CLAPP GORDON & COVENEY LLP; MUSICK, PEELER AND GARRETT LLP; AND ERNST & YOUNG LLP WERE RELATED ONLY TO POST-TRANSACTIONAL TAX ADVICE RELATING TO USD'S DISCLOSURE OBLIGATIONS AND ITS WITHDRAWAL FROM THE PARTNERSHIP. FORM 8886, LINE 7: ON OCTOBER 5, 1995, THE DONORS TRANSFERRED THEIR 19.4% INTEREST IN COMMONWEALTH BROADCASTING OF NORTHERN CALIFORNIA, L.P. ("CBNC L.P.") TO THE UNIVERSITY. THE RECEIPT OF THE OCTOBER 5, 1995 TRANSFER WAS ACKNOWLEDGED BY THE UNIVERSITY ON FORM 8283, NONCASH CHARITABLE CONTRIBUTIONS. DONORS AND THE UNIVERSITY ENTERED INTO THE PARTNERSHIP ON OCTOBER 5, 1995. THE PARTNERSHIP AGREEMENT DESCRIBES DONORS, IN THEIR CAPACITY AS GENERAL PARTNERS OF THE PARTNERSHIP, HAVING CONTRIBUTED A 0.4% INTEREST IN CBNC, L.P. IN EXCHANGE FOR 2 PARTNERSHIP UNITS. THE PARTNERSHIP AGREEMENT DESCRIBES DONORS, IN THEIR CAPACITY AS LIMITED PARTNERS OF THE PARTNERSHIP HAVING CONTRIBUTED A 0.2% INTEREST IN CBNC L.P. IN EXCHANGE FOR 1 PARTNERSHIP UNIT. THE PARTNERSHIP AGREEMENT DESCRIBES THE UNIVERSITY, IN ITS CAPACITY AS A LIMITED PARTNER OF THE PARTNERSHIP, HAVING CONTRIBUTED A 19.4% INTEREST IN CBNC L.P. IN EXCHANGE FOR 97 PARTNERSHIP UNITS. THE OPTION AGREEMENT (THE "OPTION"), EFFECTIVE OCTOBER 27, 1995, WAS ENTERED INTO BY THE TRUST, THE PARTNERSHIP, AND THE UNIVERSITY. THE OPTION PROVIDES THE UNIVERSITY THE RIGHT TO REQUIRE THE TRUST TO PURCHASE ITS 97 STATEMENT PARTNERSHIP UNITS, REPRESENTING ITS LIMITED PARTNERSHIP INTEREST IN THE PARTNERSHIP, FOR THE GREATER OF $4,500,000 OR FAIR MARKET VALUE, AS DETERMINED UNDER THE PROVISIONS OF THE OPTION. THE TERM OF THE OPTION GENERALLY RUNS FROM OCTOBER 27, 1995 UNTIL NOON ON DECEMBER 31, 2035, OR UPON 180 DAYS AFTER THE DEATH OF THE LAST TO DIE OF THE DONORS. THE UNIVERSITY MAY EXERCISE THE OPTION AS PROVIDED FOR UNDER THE TERMS OF THE OPTION, INCLUDING WITHIN 5 DAYS OF RECEIVING A DEATH CERTIFICATE OF THE LAST TO DIE OF THE DONORS. UNDER THE TERMS OF THE OPTION, THE TRUST AGREED TO OBTAIN LIFE INSURANCE ON THE DONORS' LIVES, IF IT HAD FUNDS TO DO SO, IN THE AGGREGATE AMOUNT OF NO LESS THAN $4,500,000 IN ORDER TO ENSURE THE AVAILABILITY OF SUFFICIENT FUNDS TO PURCHASE THE UNIVERSITY'S PARTNERSHIP UNITS REPRESENTING ITS LIMITED PARTNERSHIP INTEREST IN THE PARTNERSHIP. THE OPTION ALSO GENERALLY PROVIDES THAT SHOULD THE INSURANCE PROCEEDS COLLECTED BY THE TRUST NOT AMOUNT TO THE DETERMINED PURCHASE PRICE OF THE UNIVERSITY'S PARTNERSHIP UNITS, THE PARTNERSHIP MAY PAY THE DIFFERENCE TO THE UNIVERSITY. THE UNIVERSITY IS ALLOCATED 97% OF THE PROFIT, LOSS AND CAPITAL OF THE PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES. PURSUANT TO THE TERMS OF THE PARTNERHSIP AGREEMENT, THE GENERAL PARTNERS HAVE FULL CONTROL OVER THE TIMING AND AMOUNT OF DISTRIBUTIONS FROM THE PARTNERSHIP. THE UNIVERISTY, IN ITS CAPACITY AS LIMITED PARTNER IN THE PARTNERSHIP, GENERALLY MAY NOT DEMAND DISTRIBUTIONS OR PARTAKE IN THE MANAGEMENT OF THE PARTNERSHIP. THE UNIVERSITY, IN ITS CAPACITY AS LIMITED PARTNER, GENERALLY MAY NOT TRANSFER ITS LIMITED PARTNERHSIP INTEREST WITHOUT SATISFYING SIGNIFICANT CONDITIONS IMPOSED UNDER THE TERMS OF THE PARTNERSHIP AGREEMENT AND WITH THE CONSENT OF THE GENERAL PARTNERS. THE UNIVERSITY, IN ITS CAPACITY AS LIMITED PARTNERS, GENERALLY MAY NOT WITHDRAW ASSETS FROM THE PARTNERSHIP. THE UNIVERSITY WAS UNAWARE, HOWEVER, UNTIL APRIL 5, 2007 THAT WITH THE PARTNERSHIP MIGHT BE VIEWED AS SUBSTANTIALLY SIMILAR TO THE NOTICE 2004-30 TRANSACTION WITHIN THE MEANING OF TREAS. REG. SECTION 1.6011-4(C)(4), AND THEREFORE MAY HAVE PARTICIPATED IN A LISTED TRANSACTION WITHIN THE MEANING OF TREAS. REG. SECTION 1.6011-4(C)(3)(I)(A). AS A RESULT, THE UNIVERSITY FILED A PROTECTIVE DISCLOSURE IN MAY 2007. IT WAS NOT UNTIL SPRING 2008 THAT THE UNIVERSITY WAS ADVISED THAT THE PARTNERHSIP WOULD MORE LIKELY THAN NOT BE VIEWED AS SUBSTANTIALLY SIMILAR TO THE NOTICE 2004-30 TRANSACTION WITHIN THE MEANING OF TREAS. REG. SECTION 1.6011-4(C)(4). AS A RESULT, THE UNIVERSITY IS FILING THIS DISCLOSURE. THE UNIVERSITY PROMPTLY TOOK STEPS TO PURSUE RESCISSION OF OR WITHDRAWAL FROM THE PARTNERSHIP. AS OF MARCH 4, 2009, THE PARTNERSHIP COMPLETELY REDEEMED THE UNIVERSITY'S 97% LIMITED PARTNERSHIP INTEREST, AND THE UNIVERSITY IS NO LONGER A LIMITED PARTNER IN THE PARTNERSHIP. A FINAL 2009 K-1 WAS ISSUED TO THE UNIVERSITY REPORTING AN OVERALL LOSS FROM OPERATIONS. IN ADDITION, THERE SHOULD BE NO DISCLOSURE TO THE EXTENT THE UNIVERSITY IS VIEWED AS ENTERING INTO THE PARTNERSHIP SOLELY PRIOR TO FEBRUARY 28, 2000. THE ORIGINAL TEMPORARY TREASURY REGULATIONS ISSUED FEBRUARY 28, 2000 UNDER TREAS. REG. SECTION 1.6011-4T SHOULD GOVERN THE UNIVERSITY'S PARTICIPATION IN THE PARTNERSHIP. THESE REGULATIONS REQUIRE DISCLOSURE ONLY FOR LARGE TRANSACITONS THAT PROVIDE TAX SAVINGS IN EXCESS OF CERTAIN DOLLAR THRESHOLDS (THE PROJECTED TAX EFFECT TEST). THE PROJECTED TAX EFFECT TEST, AS DESCRIBED IN THESE REGULATIONS, REQUIRE A TRANSACITON TO BE REPORTED WHERE IT IS EXPECTED TO REDUCE THE TAXPAYER'S FEDREAL INCOME TAX LIABILITY BY MORE THAN $1 MILLION IN ANY SINGLE TAXABLE YEAR OR BY A TOTAL OF $2 MILLION FOR ANY COMBINATION OF TAXABLE YEARS. HOWEVER, A LISTED TRANSACITON IS NOT TREATED AS A REPORTABLE TRANSACTION IF IT HAS AFFECTED THE TAXPAYER'S FEDERAL INCOME TAX LIABILITY AS REPORTED ON ANY TAX REUTRN FILED ON OR BEFORE FEBRUARY 28, 2000. BECAUSE THE UNIVERSITY IS A TAX-EXEMPT I.R.C. SECTION 501(C)(3) ENTITY, THE UNIVERSITY'S PARTICIPATION IN THE PARTNERSHIP WAS NOT EXPECTED TO REDUCE ITS TAX LIABILITY AT ALL (SEE RESPONSES TO LINES 8 AND 9). THE UNIVERSITY HAS DISPOSED OF ITS INTEREST IN THE PARTNERSHIP AS OF MARCH 4, 2009. IN ADDITION, THE DISTRIBUTIONS FROM THE PARTNERSHIP HAVE BEEN REPORTED ON THE UNIVERSITY'S TAX RETURNS PRIOR TO FEBRUARY 28, 2000. THEREFORE, UNDER TEMP. TREAS. REG. SECTION 1.6011-4T, THE UNIVERSITY SHOULD NOT HAVE A DISCLOSURE REQUIREMENT WITH RESPECT TO ITS INVESTMENT IN THE PARTNERSHIP PRIOR TO FEBRUARY 28, 2000. SINCE 2001, TEMP. TREAS. REG. SECTION 1.6011-4T HAS BEEN MODIFIED A NUMBER OF TIMES BEFORE BEING FINALIZED IN 2003. BASED ON THE VARIOUS EFFECTIVE DATES FOR THE DIFFERENCE SECTIONS THAT HAVE CHANGED, IT APPEARS THAT THE FEBRUARY 28, 2000 INITIAL TEMP. TREAS. REG. SECTION 1.6011-4T IN T.D. 8877 STILL GOVERNS THE DISCLOSURE OBLIGATIONS OF THE UNIVERSITY WITH RESPECT TO ITS PARTICIPATION IN THE PARTNERSHIP THROUGH ITS LIMITED PARTNERSHIP INTEREST THAT WAS OBTAINED PRIOR TO FEBRUARY 28, 2000, ON OCTOBER 5, 1995. THE UNIVERSITY HAS NOT, NOR DOES NOT, EXPECT ANY TAX BENEFIT FROM THE TRANSACTION, INCLUDING DEDUCTIONS, EXCLUSIONS FROM GROSS INCOME, NONRECOGNITION OF GAIN, TAX CREDITS, ADJUSTMENTS (OR THE ABSENCE OF ADJUSTMETNS) TO THE BASIS OF PROPERTY, LOSS, OR TAX CREDITS. THE UNIVERSITY IS EXEMPT FROM FEDERAL INCOME TAXATION UNDER I.R.C. SECTION 501(C)(3). THE UNIVERSITY ONLY EXPECTS DISTRIBUTIONS FROM MTT PARTNERS, L.P. IN ITS CAPACITY AS LIMITED PARTNER. form 990, schedule k, part ii, line 4: $2,000,673 is retained in a Rebate Fund within the Bond fund as of 6-30-10. The rebate amount was paid subsequent to 6-30-10. form 990, schedule k, part iii, line 3a: There are currently no management or service contracts related to our facilities financed in part by the 2005 bond issue. form 990, schedule k, part iii, line 3b & 3c: USD uses the guidance of Bondlogistix to review all research agreements related to the university's debt financed facilities. form 990, schedule k, part iv, line 4a: No GIC. Master repurchase Agreement between JP Morgan Chase Bank, the seller and provider of investment contract and Wells Fargo Bank, Trustee and Agreement buyer. Permitted Investments schedule is part of MRA, and include cash, Direct obligations of any federal agency or federally sponsored entity. form 990, schedule k, part iv, line 6: USD engaged Bondlogistix to perform an interim rebate calculation as of 6-30-10. Payment was submitted to the US Department of Treasury on August 28, 2010 in the amount of $1,730,990.89, 100% of the rebate calculation. Remaining earnings on proceeds are being held in the bond fund and used for monthly debt service of interest payments.