2011-05-04T10:28:15-05:00 2010-06-30 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 10017 990 2009-07-01 221500645 Seton Hall University SETO 9737619318 400 South Orange Avenue South Orange NJ 07079 Dennis J Garbini 9737619003 2011-05-04 DANIEL ROMANO 2125429609 2009 2016-02-24 21:20:13Z A Gabriel Esteban 400 So Orange Avenue South Orange NJ 07079 478497000 0 0928 X www.shu.edu X 1856 NJ Seton Hall University is a Catholic institution of higher education. 43 35 4405 60 1010000 0 32403000 39700000 260575000 275379000 -15257000 8597000 11130000 12253000 288851000 335929000 75145000 85016000 0 148501000 150785000 0 4190000 93911000 95147000 317557000 330948000 -28706000 4981000 490043000 501517000 208282000 203658000 281761000 297859000 Seton Hall University is a major Catholic university. In a diverse and collaborative environment it focuses on academic and ethical development. Seton Hall students are prepared to be leaders in their professional and community lives in a global society and are challenged by outstanding faculty, an evolving technologically advanced setting, and values-centered curricula.Seton Hall University's 58-acre park-like campus is located in South Orange, New Jersey, only 14 miles west of New York City. The University is home to nine schools, including its Law School located in Newark , New Jersey. Its undergraduate and graduate enrollment is approximately 5,200 and 4,400, respectively. Seton Hall is the oldest diocesan university in the United States. It remains a pioneer in Catholic education. 0 0 201891000 75176000 281802000 Educational - Seton Hall University operates to provide baccalaureate, masters, and doctoral degrees. It enrolls 9,600 undergraduate and graduate students. The University is composed of nine schools located on two campuses. Day and evening sessions accomodate both commuter and residential students on a part-time and full time basis. 75817000 9616000 4540000 Academic Support and Student Services - Academic Support provides support services, such as libraries, academic technology, faculty curriculum development, for its primary missions of instruction, research and public service. Student services provide various services to students, which contribute to the students' emotional and physical well-being and to their intellectual, cultural and social development outside the context of the University's formal instructural programs. 8644000 224000 0 Research, Training & Public Service - Enables faculty to explore new areas of education, learning and knowledge and provides non-instructional services to individuals and groups external to the University. The University also offers financial support to students through academic scholarships and work-study programs, which are funded by federal, state and private grants. 286352000 1 1 0 1 0 0 1 0 1 1 1 0 1 0 1 0 0 0 1 0 0 1 1 1 1 1 1 0 0 0 1 0 1 1 1 1 1 0 0 0 1 0 0 0 1 465 0 1 4405 1 1 1 0 0 0 0 1 1 0 0 43 35 1 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Dennis J Garbini Vice President Finance & Technology 9737619003 400 S Orange Ave S Orange NJ 070792692 Monsignor Robert Sheeran 45.00 X X 40709 0 315481 Most Reverend J JMyers 1.00 X 0 0 0 MostReverend PBootkoski 1.00 X 0 0 0 Most Reverend JGalante 1.00 X 0 0 0 Most Rev AJ Serratelli 1.00 X 0 0 0 Most Reverend W Skurla 1.00 X 0 0 0 Most Reverend JMSmith 1.00 X 0 0 0 Reverend Msgr J MCafone 45.00 X 41752 0 53486 Reverend Msgr John Doran 1.00 X 0 0 0 Reverend Msgr R Coleman 45.00 X 41137 0 48686 Reverend Msgr J RReilly 45.00 X 24007 0 82516 Reverend Msgr R J Wister 45.00 X 32285 8350 48686 Kurt T Borowsky 1.00 X 0 0 0 John J Schimpf 1.00 X 0 0 0 Bruce A Tomason 1.00 X 0 0 0 Patricia A Cahill Esq 1.00 X 0 0 0 Joseph P LaSala Esq 1.00 X 0 0 0 Patrick M Murray 1.00 X 0 0 0 Phillip Frese PhD 1.00 X 0 0 0 Pamela MSwartzbergEsq 1.00 X 0 0 0 William Aimetti 1.00 X 0 0 0 Robert E Baldini 1.00 X 0 0 0 Lawrence EBathgateEsq 1.00 X 0 0 0 Dr Eida H Berrio 1.00 X 0 0 0 Dr Gerald P Buccino 1.00 X 0 0 0 Henry F D'Alessandro 1.00 X 0 0 0 William J Eyres 1.00 X 0 0 0 Adrian M Foley Esq 1.00 X 0 0 0 Mark E Ganton 1.00 X 0 0 0 Dr Antoine M Garibaldi 1.00 X 0 0 0 David B Gerstein 1.00 X 0 0 0 John C Kelly 1.00 X 0 0 0 Dr Fancis M Lazarus 1.00 X 0 0 0 Richard F Lieber 1.00 X 0 0 0 Michael J Lucciola 1.00 X 0 0 0 Richard E Mahmarian 1.00 X 0 0 0 Phillip N Maisano 1.00 X 0 0 0 Kent Manahan 1.00 X 0 0 0 Richard Mandelbaum 1.00 X 0 0 0 Dr Rosalie M Mirenda 1.00 X 0 0 0 Donna M O'Brien 1.00 X 0 0 0 James M O'Brien 1.00 X 0 0 0 Edward Quinn 1.00 X 0 0 0 Patrick P Randazzo Esq 1.00 X 0 0 0 Rachel M Sanford 1.00 X 0 0 0 Thomas J Sharkey 1.00 X 0 0 0 A Zachary Yamba PhD 1.00 X 0 0 0 A Gabriel Esteban PhD 45.00 X 285809 0 32314 Dennis J Garbini MBA 45.00 X 242502 0 34816 Reverend Paul A Holmes 45.00 X 47946 0 53486 Catherine AKierman JD 45.00 X 221426 0 40282 Joseph G Sandman PhD 45.00 X 301257 0 42526 Laura A Wankel EdD 45.00 X 238705 0 24902 Larry Robinson EdD 45.00 X 207714 0 25490 Karen E Boroff PhD 45.00 X 223218 0 31160 Patrick Hobbs JDLLM 45.00 X 361885 0 24452 Joseph R Marbach PhD 45.00 X 162198 0 13938 Robert P Gonzales 45.00 X 410506 0 42015 Stephen Lubben JDLLM 45.00 X 311132 0 43084 Kathleen BoozangJDLLM 45.00 X 266953 0 31855 Charles Sullivan LLM 45.00 X 248455 0 27392 John Menzies PhD 45.00 X 272137 0 20568 Sr Paula BuleyIHMEdD 45.00 X 307478 0 27830 Dr Patricia Kuchon 45.00 X 105480 0 17129 Dr Peter G Ahr 45.00 X 100999 0 16290 John H Shannon Esq 45.00 X 133862 0 32899 Reverend Anthony Kulig 45.00 X 34266 0 48686 4663818 8350 1179969 233 1 1 0 Gourmet Dining Services 400 South Orange Avenue South Orange NJ 07079 Catering 7229782 Temco Service Industries Inc One Park Avenue New York NY 10016 Housekeeping 3314806 The Henderson Corporation 350 East Butler Avenue New Britain PA 18901 General Contracting 1549962 Securitas Security PO Box 403412 Atlanta GA 303843412 Security 1210569 Sungard Higher Education Inc 14083 Collections Center Dr Chicago IL 60693 Consulting 1194639 57 444000 26136000 13120000 1730000 39700000 Tuition & Fees 900099 251333000 251333000 Room and Board 900099 24046000 24046000 275379000 6082000 7000 6075000 30000 30000 207000 59000 148000 144479000 141798000 196000 2681000 -196000 2485000 0 2485000 405000 444000 574000 -169000 -169000 NCAA revenue sharing 900099 2903000 2903000 Athletics ticket sales 900099 1637000 1637000 Medical residency prog 900099 1389000 1389000 6286000 5034000 944000 308000 12215000 335929000 286342000 1010000 8877000 38000 38000 84978000 84978000 3373000 2217000 761000 395000 113030000 97267000 13759000 2004000 6916000 5951000 842000 123000 19565000 16836000 2382000 347000 7901000 6799000 962000 140000 562000 527000 34000 1000 488000 202000 286000 207000 207000 112000 112000 1339000 1339000 18546000 17023000 1387000 136000 2125000 1494000 593000 38000 8701000 6239000 2168000 294000 5339000 2473000 2866000 7693000 7535000 158000 7120000 6444000 478000 198000 2748000 1849000 656000 243000 6780000 6756000 24000 13014000 12050000 950000 14000 1929000 39000 1890000 Repairs and maintenance 6463000 4926000 1407000 130000 Bad debt provisions 4250000 4250000 Books and subscriptions 3289000 3236000 43000 10000 Restructuring 1705000 1705000 Memberships 1005000 681000 317000 7000 1732000 792000 830000 110000 330948000 286352000 40406000 4190000 374000 77000 18956000 23454000 16205000 13475000 4131000 4289000 275000 171000 14070000 14049000 6438000 4537000 407503000 185643000 230536000 221860000 157853000 161714000 32349000 53677000 8856000 4214000 490043000 501517000 33203000 36142000 13274000 8274000 135245000 129879000 26560000 29363000 208282000 203658000 X 169105000 176333000 38117000 45125000 74539000 76401000 281761000 297859000 490043000 501517000 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 1800 0 0 1 128220 0 0 130020 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: Seton Hall University lobbied state legislators regarding annual independent college appropriations, student aid for independent college students and regulations affecting the University's College of Education and Human Services. Efforts consisted of direct mailings, phone calls and personal meetings. Members of Congress were lobbied regarding earmarks for the College of Education and Human Service's programs designed to improve failing urban schools and with regard to federal student aid programs. The University's staff is involved in lobbying efforts. The value of that staff time is approximately $18,000. Those costs have been reported on Line 7 (other salaries and wages) and not separately identified on Line 11(d) in Part IX, statement of Functional Expenses. 0 1031000 X X 0 152767000 4367000 20452000 4944000 5257000 1189000 166196000 209393000 1452000 -46790000 5055000 5883000 350000 152767000 0.34900 0.46000 0.19200 1 0 3851000 3851000 331286000 128948000 202338000 59739000 47875000 11864000 12627000 8820000 3807000 221860000 Absolute 33000 F Outside Trust 8064000 F Hedge funds 19202000 F Commingled fund 14690000 F Private Equity 8456000 F Venture capital 787000 F Natural resources 2445000 F 53677000 Refundable U.S. Government grants 12913000 Conditional asset retirement obligations 8500000 Interest rate SWAP agreements 6906000 Accrued postretirement liability 1044000 29363000 335929000 330948000 4981000 14044000 -2927000 11117000 16098000 265752000 14052000 823000 -2446000 12429000 253323000 1338000 81268000 82606000 335929000 249654000 823000 482000 1305000 248349000 1338000 81261000 82599000 330948000 Part III, Line 4: Collections are composed of: a mural, ancient Greek and Roman coins, book collections, paintings, wild life art collections, and special collection of research papers. Collections are utilized by students, faculty, administrators and the general public. Their usage helps achieve the ultimate goal of advancing the educational and research mission of the University. Part V, Line 4: Description of Intended Use of Endowment Funds: Endowment funds support the University's mission by providing a sustainable flow of funds to annual operations. This support includes funds for scholarships and for specific academic programs. The University has adopted an endowment spending policy designed to provide a predictable flow of funds to operations. The policy is intended to balance current spending needs and preserve the endowment's future purchasing power. The University applies a 4.5% spending rate to a three-year moving average of endowment investment funds. The Board of Regents sets the spending rate. The purpose of using a moving average is to smooth out any wide fluctuations in the market value. Endowment earnings in excess of the spending rate are added back to the principal of the endowment investments. In years when yield exceeds the amount appropriated under the spending policy the excess is returned to principal as appreciation. When annual yield is insufficient to support spending appropriations, the balance is provided from accumulated appreciation. Special allocations are made for certain purposes in addition to the spending rate, as approved by the University's Board of Regents, annually. Part X, Other Liabilities - Federal income taxes The FASB ASC Topic 740 established criterion that an individual tax position must meet for some or all of the benefits of that position to be recognized in an entity's financial statements. This standard required the University to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The University has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; determine its filing and tax obligations in jurisdictions for which it has nexus; and to review other matters that may be considered tax positions. The tax years ending 2007, 2008, 2009 and 2010 remain open to audit for both federal and state purposes. This standard was effective for the University on July 1, 2008, and did not have an impact on the University's financial statements. Part XI, Line 8 - Other Change in value of interest rate swap agreements of $2,446,000 plus provision for uncollectible contributions receivable of $482,000, and limited partnership income of $7,000, less change in value of split-interest agreements of $8,000. Part XII, Line 2d - Other Change in value of interest rate swap agreements. Part XII, Line 4b - Other Financial Aid of $81,835,000 and limited partnership income of $7,000 net of special events expense of $574,000. Part XIII, Line 2d - Other Provision for uncollectible contributions receivable. Part XIII, Line 4b - Other Financial aid of $81,835,000, net of special events expense of $574,000. 1 1 1 The University's racially nondiscriminatory policy appears in its Undergraduate and Graduate catalogs, as well as in the Admissions Prospectus. It is also in all newspaper advertisements. 1 1 1 1 0 0 0 0 0 0 0 0 1 0 The University participates in various Federal and State financial aid programs, which include, but are not limited to the following programs: Federal Family Education Loan Program, Pell Grant, College Work Study, Supplemental Educational Opportunity Grant, Tuition Assistance Grant and Education Opportunity Fund. 1 Central America and the Carribean Investments East Asia and the Pacific 1 Expenses for student recruitment 32000 0 1 32000 Many Are One 310000 171000 139000 36000 93000 53000 Law Alumni Dinner 181000 146000 35000 62000 23000 7 358000 127000 231000 3000 54000 126000 124000 849000 444000 405000 3000 90000 281000 200000 574000 -169000 1 Village of South Orange 101 South Orange Avenue South Orange NJ 07079 226002309 501(a) 38000 Construction of South Orange Performing Arts Center 1 Federal Awards 1507 8374000 State of New Jersey Awards 1303 10725000 Institutional Support 4818 65879000 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: All University spending must be approved by a manager or higher level, depending on the amount of the expenditure. Any expenditure of $5,000 or above would have to be approved by a Dean or other budget center manager. An expenditure in excess of $10,000 must be approved by a Vice President (or that person's designee) or the President. Grants or assistance to outside organizations are segregated in the University's financial accounting system through the use of a separate account code, which allows for review by University's central finance department. Scholarships are provided to students who are required to matriculate in the University-thereby ensuring that the funds are expended for the intended purpose. X X 0 1 X X X X 1 0 0 0 0 0 0 0 1 1 Monsignor Robert Sheeran 34041 0 0 0 6668 0 240373 0 75108 0 356190 0 0 0 A Gabriel Esteban PhD 278240 0 0 0 7569 0 19600 0 12714 0 318123 0 0 0 Dennis J Garbini MBA 234334 0 0 0 8168 0 19008 0 15808 0 277318 0 0 0 Catherine AKierman JD 213761 0 0 0 7665 0 17488 0 22794 0 261708 0 0 0 Joseph G Sandman PhD 292433 0 0 0 8824 0 19600 0 22926 0 343783 0 0 0 Laura A Wankel EdD 229000 0 0 0 9705 0 18647 0 6255 0 263607 0 0 0 Larry Robinson EdD 206507 0 0 0 1207 0 16589 0 8901 0 233204 0 0 0 Karen E Boroff PhD 222317 0 0 0 901 0 17975 0 13185 0 254378 0 0 0 Patrick Hobbs JDLLM 355170 0 0 0 6715 0 19600 0 4852 0 386337 0 0 0 Joseph R Marbach PhD 160000 0 0 0 2198 0 12800 0 1138 0 176136 0 0 0 Robert P Gonzales 260537 0 100000 0 49969 0 19600 0 22415 0 452521 0 0 0 Stephen Lubben JDLLM 307270 0 0 0 3862 0 19600 0 23484 0 354216 0 0 0 Kathleen BoozangJDLLM 266591 0 0 0 362 0 19083 0 12772 0 298808 0 0 0 Charles Sullivan LLM 246184 0 0 0 2271 0 18720 0 8672 0 275847 0 0 0 John Menzies PhD 261313 0 0 0 10824 0 19167 0 1401 0 292705 0 0 0 Sr Paula BuleyIHMEdD 153739 0 0 0 153739 0 0 0 27830 0 335308 0 0 0 Dr Patricia Kuchon 104745 0 0 0 735 0 8093 0 9036 0 122609 0 0 0 Dr Peter G Ahr 100307 0 0 0 692 0 7675 0 8615 0 117289 0 0 0 John H Shannon Esq 133485 0 0 0 377 0 10119 0 22780 0 166761 0 0 0 Reverend Anthony Kulig 34266 0 0 0 0 0 5373 0 43313 0 82952 0 0 0 Part I, Line 1a The University provided housing and related services at no charge to its President, Monsignor Robert Sheeran, and members of its priest community which included certain current officers and trustees and certain former officers and trustees listed in Form 990, Part VII (Reverend Paul A. Holmes, Monsignor Robert Coleman, Monsignor Joseph R. Reilly, Monsignor James M. Cafone, Monsignor Robert Wister, and Reverend Anthony Kulig). The University paid the membership fees for an athletic club and a country club for its President, Monsignor Robert Sheeran. His attendance at both of these organizations is exclusively business related in order to assist University Advancement with donor cultivation and fundraising efforts. Such fees totaled approximately $18,000 in calendar year 2009. They are included in nontaxable benefits in Schedule J, Part II. In fiscal 2010 only the President had country club dues paid for by the University. Part I, Line 1b: The University does not currently address the items checked in Schedule J, Part I, item 1a in its compensation policy. Part I, Line 4a: The University reached a separation agreement with Sister Paula Marie Buley, Executive Vice President for Administration, on June 30, 2009. The agreement provided for severance equivalent to one year of salary and benefits to be paid over twelve months, along with unpaid accrued vacation benefits as of June 30, 2009 and a continuation of tuition remission benefits for a family member. The total approximate value of all separation benefits was $365,000. Monsignor Robert Sheeran, President and member of the Board of Trustees and Board of Regents, stepped down as President as of June 30, 2010. In recognition of his exemplary service as president for 15 years, the Board of Regents conferred upon Monsignor Sheeran the honorary and privileged title of "President Emeritus" effective July 1, 2010. The Board of Regents likewise, provided for a severance arrangement covering one-year terminal sabbatical leave and benefits which together totaled $235,000. This amount is included in deferred compensation in Schedule J, Part II. On June 16, 2010, Dr. A. Gabriel Esteban, Provost, was appointed interim president of Seton Hall University effective July 1, 2010. On January 11, 2011, the Board of Regents appointed Dr. Esteban as Seton Hall's 20th president. Part I, Line 8: Robert P. Gonzalez, the former coach of the men's basketball team up until March 17, 2010, was one of the five highest paid employees. He had been working under his initial contract executed in December 2006. He previously had no relationship with the University. Kevin Willard was hired as the head coach of the men's basketball team on March 28, 2010. His annual compensation is high enough to place him among the University's top five highest paid employees. However, given his hire date, he did not earn enough compensation to be included in Part VII, Section A. He previously had no relationship with the University. New Jersey EFA - Seton Hall Univ Issue Series 2008 D & E 221829511 646065WZ1 2008-12-11 73939881 see Schedule O 0 0 New Jersey EFA - Seton Hall Univ Issue Series 2009 C 221829511 NoneAvail 2009-11-13 7955000 see Schedule O 0 0 New Jersey EFA - Seton Hall Univ Issue 2009 Equipment Lease 221829511 NoneAvail 2009-05-27 3371289 see Schedule O 0 0 New Jersey EFA - Capital Improvement Fund 2004A & 2006A 221829511 64605LNM6 2004-04-14 7805700 see Schedule O 0 0 74633251 1854281 98577 1210586 586576 2008 1 0 1 1 7955000 159100 2009 1 0 1 1 3371289 3371289 2009 0 0 1 1 7805700 115491 7690209 2005 0 0 1 1 0 0 0 0 0 0.00000 0.01620 0.01620 1 0 0 0 0 0 0.00000 0.02000 0.02000 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0.00000 0.01480 0.01480 1 0 1 1 Citibank NA 27.000000000000 0 1 0 0 1 1 Citibank NA 11.000000000000 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 Stephen J Lubben Housing X 225000 121000 0 0 1 Robert PGonzalez Promissory Note X 125000 50000 0 1 1 171000 Kent Manahan On Board of Regents 243065 Legal Services - Kent Manahan and Adrian Foley are members of the Board of Regents of the University (Mr. Foley is a Regent Emeritus). The husband of Ms. Manahan and Adrian Foley are partners in a law firm that provides legal services to the University. Ms. Manahan's husband is not directly involved with University legal matters. Payments to their law firm for legal services, which approximated market value, were $243,065 in the year ended June 30, 2010. 0 Adrian Foley On Board of regents (Emeriti) 243065 Legal Services - (see above Kent Manahan) 0 X 7 19000 opinions of experts X 5000 opinions of experts X 27 208000 selling price X 2 1426000 market value X 41 36000 cost X IT Equipment 1 36000 cost 1 0 1 1 Third Party Use: Part I, Line 32b: Auction companies are used to process and/or sell noncash contributions in "silent auctions" at several fundraising events. To the extent Seton Hall University receives donations of publicly traded securities, its investment broker is engaged to sell those securities. Form 990, Part VI, Section A, line 2 Adrian Foley, a Regent Emeritus, had a business relationship with the husband of Kent Manahan. Ms Manahan is a member of the Board of Regents. Kurt T. Borowsky had a business relationship with Joseph P. LaSala. Both are members of the Board of Trustees and Board of Regents. Kurt T. Borowsky had a business relationship with Phillip N. Maisano. Mr. Maisano is also a member of the Board of Regents. Bruce A. Tomason, a member of the Board of Regents and the Board of Trustees, had a business relationship with the husband of Catherine Kiernan, Vice President and General Counsel of the University. Form 990, Part VI, Section A, line 7a The Board of Regents is responsible for the entire management of the affairs and concerns of the University. The Board of Regents is vested with the responsibility, power, and authority to govern the University and shall exercise the corporate powers of the University under Law. Board of Regent Emeriti do not have voting privileges. Form 990, Part VI, Section A, line 7b The Board of Trustees stand in the stead of the original incorporators of Seton Hall College and have the rights and powers reserved to it by the University's bylaws. Those powers include the right to amend the University's organizing documents, to authorize the sale of any University property and, most importantly, to elect the Board of Regents. Form 990, Part VI, Section B, line 11 The Board of Regents adopted a written policy charging the Audit Committee with the responsibility to conduct, on an annual basis, an appropriate review of the University's completed Form 990 and Form 990-T prior to filing with Internal Revenue Service. The Audit Committee is also charged with making an appropriate report and recommendation to the Board of Regents on their review. Following review by the Audit Committee, Forms 990 and 990-T are submitted to the entire Board of Regents for its review and approval for filing with the Internal Revenue Service. The Board of Regents shall contemporaneously document the meeting at which the Forms 990 and 990-T are reviewed and approved for filing. Form 990, Part VI, Section B, line 12c The University's conflict of interest policy is posted on the University's web site. All new employees are made aware of the policy at the time of hire. For senior management, the University requires an annual disclosure of significant financial interests in, or employment or consulting relationships with, entities doing business with the University. These annual disclosures cover both senior management and their immediate family members. When such relationships exist, measures are taken to address the actual or perceived conflict to protect the best interests of the University. The policy requires, among other things, that no member of the Board of Regents or its Committees can participate in any decision in which he or she (or an immediate family member) has a material financial interest. Each Regent is required to certify compliance with the conflict of interest policy on an annual basis and indicate whether the University does business with an entity in which a Regent has a material financial interest. When such relationships exist, measures are taken to mitigate any actual or perceived conflict, including requiring that such transactions be conducted at arm's length, for good and sufficient consideration, based on terms that are fair and reasonable to and for the benefit of the University, and in accordance with relevant conflict of interest laws. The University is unaware of any such associations considered to be significant. Form 990, Part VI, Section B, line 15 Seton Hall University can ensure and demonstrate that our compensation actions do not inure to the benefit of a private individual. We can demonstrate that the compensation of all disqualified persons, such as officers, directors, and key employees, is considered reasonable and would ordinarily be paid for like services by like enterprises under like circumstances. The reasonableness of our compensation takes into account all benefits. Any compensation transactions for these individuals are approved by an authorized body of individuals who have no conflict of interest. Utilizing a compensation consultant, appropriate compensation data is relied upon for comparability and proof of fair market value, before making a decision. Form 990, Part VI, Section C, line 19 The University's By-Laws and its conflict of interest policy are posted on the University's web site. The University's financial statements are posted on the web site of the National Association of College and University Business Officers (NACUBO). Form 990, Part VII, Section A Sister Paula Marie Buley,IHM, Ed.D. compensation The University pays an equivalent amount for compensation, benefits and expense allowance to the Sisters, Servants of the Immaculate Heart of Mary for Sister Paula Marie Buley, IHM, Ed.D. For calendar 2009, the amount paid was $307,478, which is included in the total compensation, benefits and expense allowance reflected in Form 990, Part VII- Section A. Form 990, Part XI, Line 2c The Board of Regents has a written policy charging the Audit Committee with the responsibility for oversight of the audit, the review of its financial statements, and the selection of an independent accountant. For Fiscal Year 2010, there was no change in its oversight process or selection process. Schedule K - Supplement Schedule K, Supplemental Information: 1. Bond Issue A -- Seton Hall University Issues, 2008 Series D & E,(CUSIP numbers 646065WZ1 and 646065XQ0) were issued by the New Jersey Educational Facilities Authority (NJEFA) to currently refund Seton Hall University Issues, 2005 Series C and 2006 Series A. The 2005 Series C issue was issued on August 18, 2005 by the NJEFA to finance capital improvements at the University. The 2006 Series A issue was issued on June 1, 2006. It refunded the University's 1996 Series E issue, which was for capital improvements and for refunding the University's 1989 Series C issue, which was for capital improvements. The 2008 Series D & E issues were treated as a single issue for tax purposes. Amounts reported in Schedule K Part II herein are for the combined issue. All proceeds deposited in the refunding escrows have been spent. The $685,153 remaining in the project fund of the 2005 and 2006 bonds at the time of the refunding transferred to the 2008 Series D & E Bonds. Of that amount, $586,576 has been used for capital expenditures and $98,577 remains unspent. Schedule K, Part II, line 5, issuance costs of $1,210,586 for 2008 D & E include $156,565 of credit enhancement fees. In 2005, the University entered into two long-term interest rate swap agreements with Citibank, N.A. in order to hedge interest rate exposure related to their 2005 Series C and 2006 Series A issues. Following the refunding of the 2005 and 2006 issues with 2008 Series D & E, the interest rate swap agreements remained in place, following an amendment, in order to hedge interest rate exposure for the 2008 Series D issue. The swap agreements expire concurrently with the maturity of the 2008 Series D bonds, the last of which mature on July 1, 2037. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance costs from Schedule K, Part II, Line 5 divided by the amount on Part II, Line 1, total proceeds of issue. 2. Bond Issue B - Seton Hall University Issue, 2009 Series C, was issued by NJEFA to currently refund Seton Hall University issue, 1998 Series F, issued on June 29, 1998 by the NJEFA to refund a 1991 Series D Seton Hall University issue that financed capital improvements at the University. The 2009 Series C Bonds were sold directly to Capital One, N.A. Schedule K, Part II, line 5, issuance costs of $159,100 for 2009 Series C do not include any credit enhancement fees. As part of its 2005 financing plan, the University also entered into an agreement with Citibank, N.A. to refinance the 1998 Series F Bonds in fiscal year 2008 using a forward starting interest rate swap. The forward starting interest rate swap became effective in April 2008. The refinancing of its 1998 Series F Bonds occurred in November 2009 with the swap being amended at that time. The swap agreement expires concurrently with the maturity of the 2009 Series C Bonds, the last of which matures on July 1, 2021. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance costs from Schedule K, Part II, Line 5 divided by the amount on Part II, Line 1, total proceeds of issue. 3. Bond Issue C - Seton Hall University 2009 Equipment Lease was issued by NJEFA to finance equipment for the University. The obligations were sold directly to TD Equipment Finance, Inc. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance costs from Schedule K, Part II, Line 5 divided by the amount on Part II, Line 1, total proceeds of issue. 4. Bond Issue D - These bonds were issued by NJEFA pursuant to a program of the State of New Jersey to finance capital improvements at institutions of higher education. The bonds were issued in the principal amount of $76,725,000 which was allocated to a total of seven institutions in New Jersey, three public and four private. An 8038 was filed for the portion of the issue allocated to private institutions and a separate 8038-G was filed for the portion allocated to public institutions. Seton Hall's apportioned amount, after $115,491 of apportioned issuance costs, was $7,690,209. Of this amount $78,458 was allocated to capitalized interest. The remainder that was received by Seton Hall was $7,611,751, of which $3,805,875 was a grant and $3,805,876 was repayable over 20 years. Bonds issued to finance grants must be approved by the State Treasurer and are repayable by the State subject to appropriation. The bonds are sold based on the credit of the State. Each grantee enters into a grant agreement obligating the grantee to pay 1/2 of the debt service on the bonds allocable to the grant. On October 26, 2006, NJEFA issued Capital Improvement Bonds, Series 2006 A to partially refund the 2004 A Bonds and other series of Capital Improvement Fund Bonds. At that time, the amounts payable by each grantee were adjusted to take account of allocable debt service savings. The CUSIP number and issue date shown in Part I of Schedule K are for the Series 2004 A Bonds. The NJEFA has further information about the total bond issue. Seton Hall spent the entire amount of bond proceeds allocated to it on capital improvements on the University's campus. Schedule K, Part II, line 5, issuance costs of $115,491 apportioned to Seton Hall for 2004 Series A include $59,024 of credit enhancement fees. Seton Hall University does not use any of its debt financed property to undertake a non-exempt activity. The amounts reported on Schedule K, Part III, Line 5 represent the bond issuance costs from Schedule K, Part II, Line 5 divided by the amount on Part II, Line 1, total proceeds of issue. The University has responded "Yes" to Schedule K, Part IV, line 6, which asks "Did the bond issue qualify for an exception to rebate?" This response is predicated on the University's spending of its apportioned grant and loan amount of $7,611,751 as part of this bond issue. However, the NJEFA has informed the University that there are project funds associated with other institutions that remain unspent. Schedule L - Part II Loans to and/or From Interested Persons Stephen J. Lubben is a professor of law at the Seton Hall University Law School. A bridge loan of $225,000, was provided to Mr. Lubben by the University in November 2008. In December 2009, $20,000 of his loan was forgiven. Upon the sale of his home, Mr. Lubben repaid $83,972 of the balance in March 2010. The balance of the loan of $121,028 is to be forgiven by the University on July 1 of each year beginning July 2010 through July 2012, provided certain conditions are met. The loan is unsecured and bears no interest. Annually, the University imputed interest on the loan and included it in his taxable income reported to the government. All principal amounts forgiven are also included in taxable income. Robert P. Gonzalez was head coach of the men's basketball team of the University until March 17, 2010. The term of his employment agreement with the University was from April 7, 2006 through June 30, 2011. Pursuant to his employment agreement, a promissory note was executed in the amount of $125,000. The note was unsecured, bore interest at 4.8% and called for the annual forgiveness beginning June 30, 2007, of $25,000 of principal and accrued interest over its term (which corresponds to the term of his employment agreement). Pursuant to a settlement agreement that was consummated in August 2010, the remaining balance outstanding on June 30, 2010 of $50,000, along with any interest, was forgiven. All amounts forgiven are included in his taxable income reported by the University to the government. Other Matters The child of Dr. A Gabriel Esteban, Provost, was awarded two merit scholarships, The Regents Scholarship and Women's Guild Scholarship amounting to $34,125. His position as Provost had no bearing in the award process and he was not involved in that process at all. Form 990, Part IX, Line 24d Restructuring programs The University initiated restructuring programs during fiscal 2010 in an effort to reduce its cost structure. The actions taken included consultancy studies, voluntary and involuntary headcount reductions and other administrative and operational cost saving initiatives effectuated during the period. In connection with these actions, the University recorded nonoperating restructuring charges totalling $1,705,000. Included in this amount is the severance arrangement provided to Monsignor Sheeran in the amount of $235,000. Additional restructuring charges will be recorded in fiscal 2011. Roman Catholic Archdiocese of Newark 171 Clifton Avenue Newark NJ 07104 221487308 Oversees the Catholic church in certain counties of New Jersey NJ 501(c)(3) 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0