2011-02-23T12:33:44-06:00 2010-05-31 BLACKBURN CHILDERS & STEAGALL PLC 801B Sunset Drive Johnson City TN 376043033 990 2009-06-01 620535755 MILLIGAN COLLEGE INC MILL 4234618686 P O BOX 750 MILLIGAN COLLEGE TN 37682 JACQUELINE R STEADMAN 4234618686 2011-02-16 1 THOMAS S GREER 4232824511 2011-02-16 2009 2016-02-24 21:20:13Z JACQUELINE R STEADMAN 1 BLOWERS BOULEVARD MILLIGAN COLLEGE TN 37682 29202394 0 X www.milligan.edu X 1882 TN THE ORGANIZATION IS A NONPROFIT LIBERAL ARTS COLLEGE. 31 26 781 0 0 0 5072694 4846326 21740031 23977884 571829 378184 0 27384554 29202394 6336556 7543480 0 698567 743005 0 568339 17268427 18201612 24303550 26488097 3081004 2714297 42606771 48142970 7943781 9498852 34662990 38644118 As a Christian liberal arts college, Milligan College seeks to honor God by educating men and women to be servant-leaders. 0 0 17006154 7543480 19521038 OPERATION OF CHRISTIAN LIBERAL ARTS COLLEGE 17006154 1 1 0 0 0 0 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 0 1 1 1 1 0 0 0 0 0 0 0 0 1 27 0 1 781 1 0 0 0 0 0 1 1 0 0 0 31 26 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 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 1.00 X 0 0 0 DENNIS FULK 1.00 X 0 0 0 BRENDA GREEN 1.00 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 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 W SCOTT KENT 1.00 X X 0 0 0 TIMOTHY J LANZER 1.00 X 0 0 0 DENNY MAYES 1.00 X 0 0 0 DANIEL W MCMAHAN SR 1.00 X 0 0 0 KENNETH W OOSTING II 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 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 X 0 0 0 CALVIN L WILSON JR 1.00 X 0 0 0 DONALD R JEANES 40.00 X X X 170930 0 20151 BILL GREER 40.00 X 96081 0 6726 MARK A MATSON 40.00 X 90776 0 11559 JOE G WHITAKER 40.00 X 87246 0 6095 MARK P FOX 40.00 X 82142 0 5774 JACQUELINE R STEADMAN 40.00 X 76830 0 5408 A LEE FIERBAUGH 40.00 X 72393 0 6953 676398 0 62666 1 0 1 0 PIONEER CATERERS INC 303 GLENROSE AVENUE NASHVILLE TN 37210 CAFETERIA SERVICE 1113641 BURLESON CONSTRUCTION COMPANY P O BOX 1735 JOHNSON CITY TN 37605 CONTRACTOR 1034915 CDW GOVERNMENT INC 230 N MILWAUKEE AVENUE VERNON HILLS IL 60061 COMPUTER PRODUCTS 113289 SARATOGA TECHNOLOGIES INC 101 MED TECH PARKWAY SUITE 307 JOHNSON CITY TN 37604 IT SERVICE 103457 THE TOMBRAS GROUP 630 CONCORD STREET KNOXVILLE TN 37919 ADVERTISING; MARKETING 100246 5 4846326 691933 4846326 TUITION AND FEES 611710 19521038 19521038 AUXILIARY ENTERPRISES 611710 3714478 3714478 OTHER INCOME 611710 404130 404130 SUMMER CAMPS 611710 289896 289896 MARRIED STUDENT HOUSIN 611710 48342 48342 23977884 378184 378184 29202394 19521038 0 4835030 7543480 7543480 743005 192756 550249 854189 854189 217300 217300 1115989 1115989 INSTRUCTION 5431474 5431474 INSTITUTION SUPPORT 3652500 3084161 568339 STUDENT SERVICES 2999646 2999646 AUXILIARY ENTERPRISES 2704182 2704182 ACADEMIC SUPPORT 838798 838798 387534 387534 26488097 17006154 8913604 568339 2707219 2798308 353083 450666 2875273 2102165 519646 2033300 1040895 935282 226054 243021 62734 96178 40084358 16652954 21725667 23431404 13060263 16018651 35937 33995 42606771 48142970 18800 385517 677855 5229627 6435346 2328637 2366851 7943781 9498852 X 17306897 18254071 4822195 5924469 12533898 14465578 34662990 38644118 42606771 48142970 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12715413 1726463 1474982 -53947 0 0 15862911 15785267 1076919 -3668787 -447986 0 0 12715413 0.00830 0.90720 0.08450 0 0 1018750 1018750 34374655 13500129 20874526 3079811 2096170 983641 1611142 1056655 554487 23431404 SECURITIES 16018651 F 16018651 ACCRUED SALARIES AND WAGES 838487 ADVANCES FROM FEDERAL GOVT FOR STUDENT LOANS 935055 OTHER ACCRUED LIABILITIES AND PAYABLES 221691 ANNUITY PAYMENT LIABILITIES 371618 2366851 29202394 26488097 2714297 1263231 3600 1266831 3981128 22925745 1263231 3600 1266831 21658914 7543480 7543480 29202394 18944617 0 18944617 7543480 7543480 26488097 Part X: Description of Uncertain Tax Positions Under FIN 48: NOTE 11 - UNCERTAIN TAXES THE COLLEGE FOLLOWS THE FASB ACCOUNTING STANDARDS CODIFICATION, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS. AS OF MAY 31, 2010, 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, 2010. GENERALLY, THE TAX YEARS BEFORE 2006 ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL TAXING AUTHORITIES. Part XI, Line 8 - Other Adjustments: DONATIONS OF CONTRIBUTED SERVICES : 3600. Part XII, Line 2d - Other Adjustments: DONATIONS OF CONTRIBUTED SERVICES: 3600. Part XII, Line 4b - Other Adjustments: SCHOLARSHIPS OFFSETTING TUITION AND FEES: 7543480. Part XIII, Line 4b - Other Adjustments: SCHOLARSHIPS OFFSETTING STUDENT TUITION AND FEES: 7543480. 1 1 1 Broadcast through radio advertisements. Print publications such as the college catalog, and financial aid and related materials, and ads for employment. 1 1 1 1 0 0 0 0 0 0 0 0 1 0 SCHEDULE A, PAGE 4, PART V, QUESTION 34A:THE ONLY GOVERNMENTAL AGENCY THAT PROVIDES FINANCIAL ASSISTANCE IS THE UNITED STATES DEPARTMENT OF EDUCATION. 1 1 CASH SCHOLARSHIPS FOR STUDENTS ATTENDING MILLIGAN COLLEGE IN CARTER COUNTY, TENNESSEE 777 7543480 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 170930 0 0 0 0 0 10787 0 9364 0 191081 0 0 0 Part I, Line 1a FOR THE YEAR ENDED 05/31/10, 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. Part I, Line 5 THE HEALTH & EDUCATIONAL FACILITIES BD OF THE CITY OF ELIZABETHTON TN 626000283 2005-12-05 5500000 CONSTRUCTION AND EQUIPPING OF EDUCATIONAL FACILITIES 0 0 5500000 38851 5461149 2007 0 0 1 1 0 0 0 0 0 1 0 0 0 0 0 1 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 06/30/06 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 05/31/10, MILLIGAN COLLEGE HAD RECEIVED $750,000 TOWARD THIS PLEDGE. 0 MR JOHN K BANKS MEMBER OF THE BOARD OF TRUSTEES 30565 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 05/31/10, THE COLLEGE DID GIVE FREE TUITION TO TWO OF HIS RELATIVES. THE VALUE OF THIS TUITION WAS $30,565. 0 DR W B GREENE MEMBER OF THE BOARD OF TRUSTEES 9388905 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 05/31/10 TOTALED APPROXIMATELY $2,990,163. THE COLLEGE HAS A $363,396 CERTIFICATE OF DEPOSIT AT THE BANK AT 05/31/10. THE COLLEGE HAS A $1,000,000 LINE OF CREDIT AT THE BANK WITH NO DRAWS FOR THE YEAR ENDED 05/31/10. DURING 2006, THE COLLEGE OBTAINED A $5,500,000 LOAN FROM THE BANK, WHICH IS SECURED BY THE ELIZABETH LEITNER CENTER FOR THE LIBERAL ARTS. AT 05/31/10, THE BALANCE OF THE LOAN WAS $5,035,346. 0 MR CALVIN L WILSON JR MEMBER OF THE BOARD OF TRUSTEES 12013988 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 05/31/10, THE COLLEGE HAS APPROXIMATELY SEVENTY FIVE PERCENT ($12,013,988)OF ITS INVESTMENTS WITH UBS. FEES CHARGED BY UBS ARE COMPATIBLE WITH OTHER COMPANIES. FEES AVERAGE LESS THAN .40% PER TRANSACTION. FOR THE CALENDAR YEAR 2009, FEES CHARGED WERE $21,652. 0 MR TOMMY BURLESON MEMBER OF THE BOARD OF TRUSTEES 1034915 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 PAID $1,034,915 FOR THE 2009 CALENDAR YEAR. BURLESON CONSTRUCTION WAS SERVING AS THE GENERAL CONTRACTOR FOR THE CONSTRUCTION OF THE WELLNESS CENTER WHICH BEGAN IN THE SUMMER OF 2009. BURLESON CONSTRUCTION IS SERVING AS THE GENERAL CONTRACTOR OF THE TENNIS CLUBHOUSE WHICH BEGAN DURING THE SPRING OF 2010. 0 MR CHARLES ALLCOTT III TREASURER OF THE BOARD OF TRUSTEES 246275 MR. CHARLES ALLCOTT, III, THE CEO OF ANDEREN BANK IN FLORIDA, IS THE TREASURER OF THE BOARD OF TRUSTEES. IN OCTOBER 2008 THE COLLEGE PURCHASED A ONE YEAR CERTIFICATE OF DEPOSIT IN THE AMOUNT OF $240,592. IN OCTOBER 2009 THIS CERTIFICATE OF DEPOSIT MATURED AND THE PROCEEDS OF $246,275 WERE DEPOSITED INTO A CHECKING ACCOUNT AT CARTER COUNTY BANK. NO OTHER ACTIVITY TOOK PLACE WITH ANDEREN BANK FOR THE YEAR ENDED 05/31/10. 0 DR MARSHALL W HAYDEN MEMBER OF THE BOARD OF TRUSTEES 47002 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 2009 CALENDAR YEAR WAS $47,002. 0 X 7 628618 CLOSING STOCK PRICES X CHARITABLE GIFT ANNUITIES 2 109315 FMV AT DATE OF GIFT 0 0 0 Form 990, Part VI, Section A, line 2 THE HUSBAND OF BRENDA GREEN, A TRUSTEE OF MILLIGAN COLLEGE, IS THE BROTHER OF JAMES EARL GREEN, A TRUSTEE OF MILLIGAN COLLEGE. THEREFORE, BRENDA IS JAMES EARL GREEN'S SISTER-IN-LAW. THEY DID NOT HAVE ANY RELATED PARTY TRANSACTIONS WITH MILLIGAN COLLEGE. Form 990, Part VI, Section A, line 2 AS OF 05/31/10, MR. KENNETH W. OOSTING, II, A MEMBER OF THE BOARD OF TRUSTEES OF MILLIGAN COLLEGE, SERVES AS CHAIRMAN OF THE BOARD AND CHIEF TECHNOLOGY OFFICER OF INSPIRED SURGICAL TECHNOLOGIES, INC. AND INSPIRED SOLAR TECHNOLOGIES, INC. AS OF 05/31/10, 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 05/31/10, MR. OOSTING AND MR. GREEN COMBININED OWN A CONTROLLING INTEREST IN BOTH COMPANIES. FOR THE YEAR ENDED 05/31/10, 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: THE PRESIDENT OF THE COLLEGE REVIEWS SALARIES OF OTHER OFFICERS AND COMPARES THEM WITH DATA FROM PEER INSTITUTIONS. SALARY INCREASES FOR OFFICERS ARE THE SAME PERCENTAGE INCREASES GIVEN TO OTHER STAFF OF THE ORGANIZATION. 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. FORM 990, PART XI, LINE 2C OVERSIGHT OF THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT THE FINANCE COMMITTEE OF THE BOARD OF TRUSTEES ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THAT OF THE PRIOR YEAR.