2011-11-03T10:42:51-05:00 2011-05-31 BLACKBURN CHILDERS & STEAGALL PLC 440 EAST SULLIVAN STREET KINGSPORT TN 37660 990 2010-06-01 620535755 MILLIGAN COLLEGE INC MILL 4234618686 P O BOX 750 MILLIGAN COLLEGE TN 37682 JACQUELINE R STEADMAN 4234618686 2011-11-03 1 CHAD KISNER 4232461725 2011-11-02 2010 2016-03-07 17:11:31Z JACQUELINE R STEADMAN 1 BLOWERS BOULEVARD MILLIGAN COLLEGE TN 37682 31644924 0 X WWW.MILLIGAN.EDU X 1882 TN THE ORGANIZATION IS A CHRISTIAN LIBERAL ARTS COLLEGE. 33 27 784 0 0 0 4846326 4920712 23977884 26294808 378184 429404 0 0 29202394 31644924 7543480 8461682 0 0 743005 739337 0 0 667369 18201612 19144858 26488097 28345877 2714297 3299047 48142970 53034632 9498852 7758008 38644118 45276624 AS A CHRISTIAN LIBERAL ARTS COLLEGE, MILLIGAN COLLEGE SEEKS TO HONOR GOD BY EDUCATING MEN AND WOMEN TO BE SERVANT-LEADERS. 0 0 19828416 8461682 21824262 OPERATION OF CHRISTIAN LIBERAL ARTS COLLEGE 19828416 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 1 84 0 1 784 1 0 0 0 0 0 1 1 0 0 0 0 X 33 27 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 TN X JACQUELINE R STEADMAN 4234618686 1 BLOWERS BOULEVARD MILLIGAN COLLEGE TN 37682 CHARLES ALLCOTT III 1.00 X X 0 0 0 JOHN K BANKS 1.00 X 0 0 0 THOMAS J BURLESON 1.00 X 0 0 0 DAVID CLARK 1.00 X 0 0 0 WILLIAM R CLEM 1.00 X 0 0 0 RON DOVE 1.00 X 0 0 0 TAMMY W ELDRIDGE 1.00 X 0 0 0 HARRY E FONTAINE JR 1.00 X 0 0 0 JAMES FRASURE MD 1.00 X X 0 0 0 JAMES E GREEN 1.00 X 0 0 0 PATRICIA GREEN 1.00 X 0 0 0 WB GREENE JR 1.00 X 0 0 0 DAVID HAMILTON 1.00 X X 0 0 0 DAVID O HAMLIN 1.00 X 0 0 0 MARSHALL W HAYDEN 1.00 X 0 0 0 C DANNY JOHNSON 1.00 X 0 0 0 GREG JOHNSON 1.00 X 0 0 0 TIMOTHY J LANZER 1.00 X 0 0 0 LEROY LAWSON 1.00 X 0 0 0 DENNY MAYES 1.00 X X 0 0 0 DANIEL W MCMAHAN SR 1.00 X 0 0 0 JOHN MEDING MD 1.00 X 0 0 0 CAMERON PERRY 1.00 X 0 0 0 GARY PORTER 1.00 X 0 0 0 JAMES R RICE MD 1.00 X 0 0 0 JO ANN RICHARDSON 1.00 X 0 0 0 RICK RUSAW 1.00 X 0 0 0 J DONALD SAMS 1.00 X 0 0 0 RONALD F SEWELL 1.00 X 0 0 0 MARVIN SWINEY 1.00 X 0 0 0 MARK H WEBB 1.00 X 0 0 0 JOHN J WIGGINS 1.00 X 0 0 0 CALVIN L WILSON JR 1.00 X 0 0 0 DONALD R JEANES 40.00 X X X 170849 0 22526 WILLIAM B GREER 40.00 X 96261 0 6738 MARK A MATSON 40.00 X 91624 0 12763 JOE G WHITAKER 40.00 X 85010 0 6458 MARK P FOX 40.00 X 80842 0 5662 JACQUELINE R STEADMAN 40.00 X 77147 0 5419 A LEE FIERBAUGH 40.00 X 72070 0 7208 673803 0 66774 1 0 1 0 PIONEER CATERERS INC 303 GLENROSE AVENUE NASHVILLE TN 37210 CAFETERIA SERVICE 1325572 BURLESON CONSTRUCTION COMPANY P O BOX 1735 JOHNSON CITY TN 37605 CONTRACTOR 1014324 SARATOGA TECHNOLOGIES INC 101 MED TECH PARKWAY SUITE 307 JOHNSON CITY TN 37604 IT SERVICE 215654 WORKSPACE INTERIORS INC P O BOX 809 KINGSPORT TN 37660 INTERIOR DESIGN 171614 THE TOMBRAS GROUP 630 CONCORD STREET KNOXVILLE TN 37919 ADVERTISING; MARKETING 149502 8 4920712 114185 4920712 TUITION AND FEES 611710 21824262 21824262 AUXILIARY ENTERPRISES 611710 3770240 3770240 OTHER INCOME 611710 376608 376608 SUMMER CAMPS 611710 266011 266011 MARRIED STUDENT HOUSIN 611710 57687 57687 26294808 429404 429404 31644924 21824262 0 4899950 8461682 8461682 739337 194572 544765 884708 505741 378967 244756 139914 104842 1205587 689170 516417 INSTRUCTION 5637867 5637867 INSTITUTION SUPPORT 3774059 3106690 667369 STUDENT SERVICES 3317900 3317900 AUXILIARY ENTERPRISES 2844017 2844017 ACADEMIC SUPPORT 881570 881570 354394 354394 28345877 19828416 7850092 667369 2798308 2919837 450666 449439 2102165 1737240 2033300 1070796 935282 843392 243021 263906 96178 118272 41718570 17858541 23431404 23860029 16018651 21739669 33995 32052 48142970 53034632 18800 42566 677855 559138 6435346 4837117 2366851 2319187 9498852 7758008 X 18254071 21323170 5924469 6926448 14465578 17027006 38644118 45276624 48142970 53034632 X 3299047 3333459 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 15862911 2316476 3634060 -226091 21587356 12715413 1726463 1474982 -53947 15862911 15785267 1076919 -3668787 -447986 12715413 0.00610 0.78530 0.20860 0 0 1254230 1254230 35710999 14356456 21354543 3326051 2352631 973420 1427290 1149454 277836 23860029 MUTUAL FUNDS AND ANNUITIES 19798006 F LAND 103950 F CERTIFICATES OF DEPOSIT AND SAVINGS ACCOUNT 1837713 F 21739669 ACCRUED SALARIES AND WAGES 870539 ADVANCES FROM FEDERAL GOVT FOR STUDENT LOANS 926830 OTHER ACCRUED LIABILITIES AND PAYABLES 227904 ANNUITY PAYMENT LIABILITIES 293914 2319187 31644924 28345877 3299047 3333459 3333459 6632506 26516701 3333459 3333459 23183242 8461682 8461682 31644924 19884195 0 19884195 8461682 8461682 28345877 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: NOTE 11 - UNCERTAIN TAXES THE COLLEGE FOLLOWS THE FASB ASC, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS. AS OF MAY 31, 2011, THE COLLEGE HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE COLLEGE'S FINANCIAL STATEMENTS. THE COLLEGE'S POLICY IS TO RECOGNIZE INTEREST AND PENALTIES ON UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IN THE FINANCIAL STATEMENTS. NO INTEREST OR PENALTIES WERE RECORDED DURING THE YEAR ENDED MAY 31, 2011. GENERALLY, THE TAX YEARS BEFORE 2007 ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL TAXING AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS OFFSETTING TUITION AND FEES 8,461,682. PART XIII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS OFFSETTING STUDENT TUITION AND FEES 8,461,682. 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 BROADCAST THROUGH RADIO ADVERTISEMENTS. PRINT PUBLICATIONS SUCH AS THE COLLEGE CATALOG, AND FINANCIAL AID AND RELATED MATERIALS, AND ADS FOR EMPLOYMENT. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 THE ONLY GOVERNMENTAL AGENCY THAT PROVIDES FINANCIAL ASSISTANCE IS THE UNITED STATES DEPARTMENT OF EDUCATION. MILLIGAN COLLEGE, INC. RECEIVES FEDERAL MONEY FOR STUDENT FINANCIAL AID PROGRAMS SUCH AS PELL GRANTS, AND MANY OTHERS. 1 CASH SCHOLARSHIPS FOR STUDENTS ATTENDING MILLIGAN COLLEGE IN CARTER COUNTY, TENNESSEE 812 8461682 0 N/A N/A PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE COLLEGE DOES NOT GIVE ANY NON-CASH SCHOLARSHIPS. SCHOLARSHIPS ARE DISBURSED TO STUDENTS THROUGH CREDITING THEIR STUDENT ACCOUNTS. IF THE STUDENT HAS ANY EXCESS SCHOLARSHIP FUNDS OVER THEIR CHARGES, THESE FUNDS ARE DISBURSED TO THE STUDENT BY CHECK. THE COLLEGE'S PROCEDURES FOR MONITORING GRANT FUNDS IN THE U.S. ARE AS FOLLOWS: THE COLLEGE HAS APPOINTED DIRECTORS, WHO REPORT TO THE APPROPRIATE VICE PRESIDENTS, OVER ALL FEDERAL GRANT PROGRAMS. THESE DIRECTORS ARE CHARGED WITH PERFORMING ALL GRANT-RELATED ACTIVITIES INCLUDING APPLICATION, MONITORING OF EXPENDITURES AND REPORTING, WITH THE EXCEPTION OF DRAW-DOWNS OF FEDERAL FUNDS. DRAW-DOWNS ARE PERFORMED BY THE COLLEGE'S CONTROLLER AFTER REQUESTS ARE MADE BY THE DIRECTOR TO THE CONTROLLER. THE CONTROLLER REVIEWS THE REQUESTS FOR DRAW-DOWNS, WHICH INCLUDE DOCUMENTATION OF ALL DIRECT AND INDIRECT PROGRAM EXPENSES, BEFORE MAKING THE DRAW-DOWNS. A SINGLE AUDIT IS PERFORMED ANNUALLY BY THE COLLEGE'S INDEPENDENT AUDITORS. X X 1 1 X X 0 0 0 0 0 0 0 0 0 DONALD R JEANES 170849 0 0 0 0 0 12427 0 10099 0 193375 0 0 0 PART I, LINE 1A FOR THE YEAR ENDED 05/31/11, THE COLLEGE PAID FOR SOME MEALS FOR THE PRESIDENT'S WIFE WHEN SHE TRAVELED WITH HIM ON COLLEGE BUSINESS. NO AIRFARE WAS PAID FOR HER. THE HEALTH & EDUCATIONAL FACILITIES BD OF THE CITY OF ELIZABETHTON TN 626000283 2005-12-05 5500000 CONSTRUCTION AND EQUIPPING OF EDUCATIONAL FACILITIES 0 0 0 662883 5500000 38851 5461149 2007 0 0 1 1 0 0 0 0 1 0 0 0 0 0 1 DR WILLIAM B GREER VP FOR INSTITUTIONAL ADVANCEMENT AND INCOMING PRESIDENT OF MILLIGAN COLLEGE 45320 TUITION GRANTS FOR THE CHILDREN OF DR. WILLIAM B. GREER DR DONALD R JEANES PRESIDENT OF MILLIGAN COLLEGE 1000000 DR. DONALD R. JEANES HAS BEEN A MEMBER OF THE MOUNTAIN STATES HEALTH ALLIANCE (MSHA) BOARD OF DIRECTORS FOR NINE YEARS. HE HAS BEEN AN OFFICER FOR FOUR OF THE NINE YEARS. HE BEGAN HIS TENURE AS CHAIRMAN OF THE BOARD IN JULY, 2004. DR. JEANES COMPLETED A TWO YEAR TERM AS CHAIRMAN JUNE 30, 2006 AND CONTINUED TO SERVE ON THE BOARD AS PAST PRESIDENT UNTIL JULY, 2008 AND AGAIN IN 2009-2010. HIS TERM ON THE FULL BOARD ENDED JUNE 30, 2010. MILLIGAN COLLEGE IS RECEIVING A MULTI-YEAR PLEDGE OF $1,000,000 FROM MSHA FOR THE NURSING PROGRAM, WHICH IS CONTINGENT UPON MEETING CERTAIN BENCHMARKS. AS OF MAY 31, 2011, MILLIGAN COLLEGE HAD RECEIVED $900,000 TOWARD THIS PLEDGE. 0 DR WILLIAM B GREER VP FOR INSTITUTIONAL ADVANCEMENT AND INCOMING PRESIDENT OF MILLIGAN COLLEGE 1000000 DR. WILLIAM B. GREER, THE INCOMING PRESIDENT OF MILLIGAN COLLEGE, EFFECTIVE JULY 15, 2011, WAS A MEMBER OF THE FOLLOWING ORGANIZATIONS SINCE JANUARY 1, 2011: MEMBER, BOARD OF DIRECTORS OF BLUE RIDGE MEDICAL MANAGEMENT CORPORATION, THE FOR-PROFIT ARM OF MOUNTAIN STATES HEALTH ALLIANCE (MSHA) . MILLIGAN COLLEGE IS RECEIVING A MULTI-YEAR PLEDGE OF $1,000,000 FROM MSHA FOR THE NURSING PROGRAM CONTINGENT UPON MEETING CERTAIN BENCHMARKS. AS OF MAY 31, 2011, MILLIGAN COLLEGE HAD RECEIVED $900,000 TOWARD THIS PLEDGE. MEMBER, MSHA FINANCE COMMITTEEMEMBER, MSHA AUDIT AND COMPLIANCE COMMITTEE 0 MR JOHN K BANKS MEMBER OF THE BOARD OF TRUSTEES 20685 MR. JOHN K. BANKS, THE COLLEGE'S ATTORNEY, IS A MEMBER OF THE BOARD OF TRUSTEES. MR. BANKS IS NOT PAID CASH FOR HIS SERVICES AS THE COLLEGE'S ATTORNEY. HOWEVER, FOR THE YEAR ENDED MAY 31, 2011, THE COLLEGE DID GIVE FREE TUITION TO TWO OF HIS RELATIVES. THE VALUE OF THIS TUITION WAS $20,685. 0 DR W B GREENE MEMBER OF THE BOARD OF TRUSTEES 9021221 DR. W. B. GREENE, OWNER OF CARTER COUNTY BANK, IS A MEMBER OF THE BOARD OF TRUSTEES. THE COLLEGE HAS NUMEROUS CHECKING ACCOUNTS AT THE BANK, WHOSE BALANCES AT MAY 31, 2011 TOTALED APPROXIMATELY $3,184,104. THE COLLEGE HAS A $1,000,000 LINE OF CREDIT AT THE BANK WITH NO DRAWS FOR THE YEAR ENDED MAY 31, 2011. ON DECEMBER 5, 2005, THE COLLEGE OBTAINED A $5,500,000 LOAN FROM THE BANK, WHICH IS SECURED BY THE ELIZABETH LEITNER GREGORY CENTER FOR THE LIBERAL ARTS. AT MAY 31, 2011, THE BALANCE OF THE LOAN WAS $4,837,117, AND THE INTEREST EXPENSE PAID FOR THE YEAR THEN ENDED WAS 212,615. 0 MR CALVIN L WILSON JR MEMBER OF THE BOARD OF TRUSTEES 14853000 MR. CALVIN L. WILSON, JR., A SENIOR INVESTMENT ADVISOR WITH UBS FINANCIAL SERVICES, INC. (UBS), IS A MEMBER OF THE BOARD OF TRUSTEES. HE ALSO SERVES AS AN ADVISOR TO THE COLLEGE'S INVESTMENT COMMITTEE, BUT HE IS NOT A VOTING MEMBER OF THIS COMMITTEE. AT MAY 31, 2011, THE COLLEGE HAS APPROXIMATELY SEVENTY FIVE PERCENT ($14,853,000)OF ITS INVESTMENTS WITH UBS. FEES CHARGED BY UBS ARE COMPATIBLE WITH OTHER COMPANIES. FEES AVERAGE ABOUT 0.45% PER TRANSACTION. FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2010, FEES CHARGED WERE $66,969. 0 MR TOMMY BURLESON MEMBER OF THE BOARD OF TRUSTEES 100000 MR. TOMMY BURLESON, OWNER OF BURLESON CONSTRUCTION, IS A MEMBER OF THE BOARD OF TRUSTEES. THE COLLEGE HAS USED BURLESON CONSTRUCTION FOR SEVERAL CONSTRUCTION PROJECTS IN THE PAST. BURLESON CONSTRUCTION WAS SERVING AS THE GENERAL CONTRACTOR OF THE TENNIS PAVILION WHICH WAS COMPLETED DURING 2011. BURLESON CONSTRUCTION WAS PAID IN EXCESS OF $100,000 FOR THE YEAR ENDED MAY 31, 2011, AND HAD SINGLE TRANSACTIONS IN EXCESS OF $10,000. 0 DR MARSHALL W HAYDEN MEMBER OF THE BOARD OF TRUSTEES 46489 DR. MARSHALL W. HAYDEN IS A MEMBER OF THE BOARD OF TRUSTEES. HIS SISTER, LINDA LAWSON, IS EMPLOYED BY THE COLLEGE. HER GROSS SALARY FOR THE 2010 CALENDAR YEAR WAS $46,489. 0 MR DANIEL W MCMAHAN SR MEMBER OF THE BOARD OF TRUSTEES 228582 MR. DANIEL W. MCMAHAN IS A MEMBER OF THE BOARD OF TRUSTEES. HE IS A SENIOR VICE-PRESIDENT OF BB&T - OLD COLONY INSURANCE. MR. MCMAHAN BECAME A MEMBER OF THE BOARD OF TRUSTEES JUNE 1, 2002. HE ROTATED OFF THE BOARD FOR ONE YEAR DURING CALENDAR YEAR 2008, AND IS BACK ON THE BOARD IN 2009 - 2011. FOR THE YEAR ENDED MAY 31, 2011, THE COLLEGE PAID BB&T - OLD COLONY INSURANCE $228,582 FOR INSURANCE SERVICES (GENERAL LIABILITY COVERAGE). 0 X 14 114185 CLOSING STOCK PRICES 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 MR. KENNETH W. OOSTING, II, A MEMBER OF THE BOARD OF TRUSTEES OF MILLIGAN COLLEGE FROM JUNE 1, 2010 TO DECEMBER 31, 2010, SERVES AS CHAIRMAN OF THE BOARD AND CHIEF TECHNOLOGY OFFICER OF INSPIRED SURGICAL TECHNOLOGIES, INC. AND INSPIRED SOLAR TECHNOLOGIES, INC. AS OF MAY 31, 2011, MR. JAMES EARL GREEN, A MEMBER OF THE BOARD OF TRUSTEES OF MILLIGAN COLLEGE, SERVES AS THE CHIEF EXECUTIVE OFFICER OF INSPIRED SURGICAL TECHNOLOGIES, INC. AND INSPIRED SOLAR TECHNOLOGIES, INC. AS OF MAY 31, 2011, MR. OOSTING AND MR. GREEN COMBININED OWN A CONTROLLING INTEREST IN BOTH COMPANIES. FOR THE YEAR ENDED MAY 31, 2011, THERE WERE NO BUSINESS TRANSACTIONS BETWEEN MILLIGAN COLLEGE AND INSPIRED SURGICAL TECHNOLOGIES, INC. OR INSPIRED SOLAR TECHNOLOGIES, INC. FORM 990, PART VI, SECTION B, LINE 11 THE COLLEGE'S POLICY STATES THAT THE FORM 990 WILL BE REVIEWED AND APPROVED BY THE ADMINISTRATIVE OFFICERS OF THE COLLEGE. THEN A COPY OF THE FORM 990 WILL BE SENT TO EACH MEMBER OF THE BOARD OF TRUSTEES WITH TIME ALLOWED FOR QUESTIONS. THEN THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES WILL REVIEW AND APPROVE THE FORM 990 BEFORE IT IS SUBMITTED TO THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, EACH MEMBER OF THE BOARD OF TRUSTEES SUBMITS A SIGNED CONFLICT OF INTEREST AGREEMENT. AT THIS TIME, ANY KNOWN CONFLICTS OR POTENTIAL CONFLICTS OF INTEREST ARE DISCLOSED TO THE GOVERNING BODY. SHOULD THE POTENTIAL OF A CONFLICT OF INTEREST ARISE, THE SUBJECT WILL BE DISCLOSED AND THE GOVERNING BOARD MEMBER WILL EXCUSE THEMSELVES FROM VOTING ON THE MATTER IN QUESTION. FORM 990, PART VI, SECTION B, LINE 15 PRESIDENT: THE BOARD OF TRUSTEES APPROVED THE SALARY OF THE PRESIDENT OF THE COLLEGE AND DID COMPARE THAT INFORMATION WITH PEER INSTITUTIONS AT THE TIME THE SALARY WAS DETERMINED OR HIRE DATE. THE BOARD OF TRUSTEES ALSO PASSED A RESOLUTION THAT THE PRESIDENT WOULD RECEIVE THE SAME PERCENTAGE INCREASE AS OTHER STAFF OF THE COLLEGE ON AN ANNUAL BASIS. THE SALARY OF THE PRESIDENT IS APPROVED AS PART OF THE BUDGETING PROCESS BY THE BOARD OF TRUSTEES ANNUALLY. OTHER OFFICERS OR KEY EMPLOYEES: SALARY INCREASES FOR OFFICERS ARE THE SAME PERCENTAGE GIVEN TO OTHER STAFF OF THE ORGANIZATION. THE PRESIDENT OF THE COLLEGE REVIEWS SALARIES OF OTHER OFFICERS AND COMPARES THEM WITH DATA FROM PEER INSTITUTIONS. THE PRESIDENT MAY RECOMMEND INCREASES OVER AND ABOVE THE PERCENTAGE INCREASES BASED ON MERIT OR TO MOVE SALARIES INTO MEDIAN RANGE OF PEER INSTITUTIONS. THE PRESIDENT PRESENTS THESE RECOMMENDATIONS TO THE FINANCE COMMITTEE OF THE BOARD OF TRUSTEES. THE SALARIES OF ALL OFFICERS ARE APPROVED AS PART OF THE BUDGETING PROCESS BY THE BOARD OF TRUSTEES ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 3,333,459. OVERSIGHT OF THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT FORM 990, PART XII, LINE 2C THE FINANCE COMMITTEE OF THE BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FIANNCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THAT OF THE PRIOR YEAR.