2017-02-13T14:14:15-06:00 2016-06-30 346565596 ERNST & YOUNG US LLP 190 CARONDELET PLAZA SUITE 1300 CLAYTON MO 63105 990 2015-07-01 480547734 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION KANS 7858327400 PO BOX 928 LAWRENCE KS 660440928 JAMES G CLARKE TREASURER 7858327400 2017-02-13 1 JENNIFER L RICHTER P00366526 3142901000 2015 2017-02-10 21:41:12Z KU ENDOWMENT DALE SEUFERLING PO BOX 928 LAWRENCE KS 660440928 489850039 0 X WWW.KUENDOWMENT.ORG X 1891 KS UNIVERSITY SUPPORT 12 11 325 72 -457644 -532552 190025615 140463369 5838449 2798109 62312102 64859074 24663386 7817633 282839552 215938185 183804875 168795539 0 0 15146455 16780269 49416 60369 12343097 19738376 11699973 218739122 197336150 64100430 18602035 1861251704 1799843513 117893380 112422803 1743358324 1687420710 X KU ENDOWMENT PARTNERS WITH DONORS IN PROVIDING PHILANTHROPIC SUPPORT TO BUILD A GREATER UNIVERSITY OF KANSAS. 0 0 33622072 33622072 STUDENT SUPPORT--VIRTUALLY ALL PRIVATELY FUNDED SCHOLARSHIPS, AWARDS AND FELLOWSHIPS PROVIDED BY KU COME FROM DONOR CONTRIBUTIONS TO KU ENDOWMENT. THIS YEAR, 110 NEW SCHOLARSHIPS WERE CREATED TO BENEFIT STUDENTS AND MORE THAN 6,400 STUDENTS RECEIVED FINANCIAL ASSISTANCE FROM KU ENDOWMENT FUDS. 33987717 33987717 FACULTY SUPPORT INCLUDES OVER 200 NAMED, ENDOWED POSITIONS, INCLUDING 10 NEW PROFESSORSHIPS DURING THIS FISCAL YEAR. PRIVATE FUNDING AUGMENTS SALARIES AND SUPPORTS AWARDS, PROFESSIONAL TRAVEL AND PROFESSIONAL DEVELOPMENT. THIS SUPPORT IS INVALUABLE IN CREATING THE VIBRANT TEACHING AND RESEARCH ENVIRONMENT THAT ONE EXPECTS AT AN INTERNATIONAL RESEARCH UNIVERSITY. 39664591 39664591 5295150 SUPPORT FROM PRIVATE DONORS STRENGTHENS ACADEMIC PROGRAMS AND BRINGS TOP-FLIGHT SCHOLARS, THOUGHTFUL LECTURERS AND BREATHTAKING PERFORMANCES TO KU. IT ALSO EXPANDS THE SCOPE OF OUTREACH PROGRAMS THROUGHOUT THE STATE AND SUPPORTS VALUABLE ACQUISITIONS BY KU'S LIBRARIES AND MUSEUMS. 61521159 61521159 1082185 FACILITIES SUPPORT--CONSTRUCTION, EQUIPMENT, SUPPLIES AND FURNISHINGS FUNDED BY PRIVATE GIVING. THIS AMOUNT FLUCTUATES FROM YEAR TO YEAR, DEPENDING ON THE TIMELINE OF CONSTRUCTION PROJECTS. THIS YEAR'S INVESTMENT WAS HIGHER THAN RECENT YEARS AS SEVERAL SIGNIFICANT PRIVATELY-FUNDED CONSTRUCTION PROJECTS WERE COMPLETED OR ARE OCCURRING AT KU, INCLUDING COMPLETION OF A NEW SCHOOL OF BUSINESS, A NEW STUDENT, FACULTY, AND VISITOR CENTER FOR THE SOUTH PART OF CAMPUS, NEW STUDENT HOUSING, AND RENOVATIONS TO A RECITAL HALL IN THE SCHOOL OF MUSIC. ALSO, CONSTRUCTION OF THE NEW EARTH, ENERGY, AND ENVIRONMENT CENTER BEGAN DURING THE YEAR. MORE THAN TWO-THIRDS OF KANSAS UNIVERSITY BUILDINGS AND ABOUT 85% OF THE LAND AVAILABLE FOR CAMPUS EXPANSION WERE MADE POSSIBLE BY PRIVATE GIFTS. 61521159 61521159 1082185 168795539 1 1 0 1 0 0 0 1 1 1 1 1 0 0 0 0 1 0 0 0 1 0 0 1 1 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 1 1084 0 1 325 1 1 1 0 0 0 0 1 1 0 0 0 0 X 12 11 1 0 1 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 AK CA KY MD MA MI MN NH NJ OH MO SC UT WA WV OK X X JAMES G CLARKE TREASURER 7858327400 1891 CONSTANT AVENUE LAWRENCE KS 660473743 DALE W SEUFERLING PRESIDENT 40.00 0.10 X X 398882 0 127089 D JEROME DAVIES SECRETARY/SVP DEVELOPMENT 40.00 0.10 X X 238718 0 66622 JEFFREY W DAVIS TREASURER/SVP FINANCE-RET. DEC '15 40.00 0.10 X X 281539 0 176743 JAMES G CLARKE TREASURER/SVP FINANCE-START DEC. '15 40.00 0.10 X X 9715 0 3291 JOHN B DICUS EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 DAVID B DILLON EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 CHARLES E HEATH VICE CHAIR, EXEC COMMITTEE 4.00 0.10 X 0 0 0 A DRUE JENNINGS EXEC COMMITTEE-VOLUNTEER 3.00 0.00 X 0 0 0 MD MICHAELIS EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 LINDA ELLIS SIMS EXEC COMMITTEE-VOLUNTEER 4.00 0.10 X 0 0 0 STEVE SLOAN EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 TODD L SUTHERLAND EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 DEANELL REECE TACHA CHAIR, EXEC COMMITTEE 4.00 0.00 X 0 0 0 ROBERT D TAYLOR EXEC COMMITTEE-VOLUNTEER 3.00 0.00 X 0 0 0 KURT D WATSON EXEC COMMITTEE-VOLUNTEER 4.00 0.10 X 0 0 0 WILLIAM R DOCKING EXEC COMMITTEE-VOLUNTEER 4.00 0.00 X 0 0 0 REBECCA L BLAESING VP MEDICAL DEVELOPMENT 40.00 0.00 X 172392 0 39488 CLARK CROPP SVP ADMINISTRATION 40.00 0.00 X 190121 0 104423 JAMES R MECHLER ASSOC SVP DEVELOPMENT 40.00 0.00 X 180380 0 55177 WILLIAM S GREEN SVP INFORMATION SYSTEMS 40.00 0.00 X 170942 0 63206 MARK P WILSON AVP CAMPAIGN PLAN & MGMT 40.00 0.00 X 146561 0 22474 MONTE L SOUKUP SVP PROPERTY 40.00 0.00 X 139985 0 40225 1929235 0 698738 22 0 1 0 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 02110 INVESTMENT CONSULTING 2047519 ECG MANAGEMENT CONSULTANTS 1111 THIRD AVE STE 2500 SEATTLE WA 98101 CONSULTING SERVICES 1163998 ROPES AND GRAY LLP PO BOX 414265 BOSTON MA 02241 LEGAL SERVICES 788215 LATHROP AND GAGE LLP 2345 GRAND BLVD STE 2800 KANSAS CITY MO 64108 LEGAL SERVICES 502701 1607 CAPITAL PARTNERS LLC 13 S 13TH ST STE 400 RICHMOND VA 23219 INVESTMENT MANAGEMENT 375526 15 19688355 501165 22789983 97483866 11045159 140463369 LOAN INTEREST 522200 1715924 1715924 APARTMENT RENTALS 531110 556580 556580 OTHER REAL ESTATE 531390 290605 290605 BUILDING LEASE 531120 235000 235000 2798109 21277232 1821730 -487225 19942727 598598 598598 315922459 748077 272506621 582073 43415838 166004 43581842 43581842 5374124 19688355 823160 4550964 4550964 OTHER RECEIPTS 900099 1757496 1757496 AGRICULTURE 110000 880994 880994 OIL & GAS EXTRACTION 211110 29581 29581 2668071 215938185 6377335 -457644 69555125 168795539 168795539 1551730 1021064 530666 11495948 4246432 7249516 1802919 570713 1232206 1074039 492685 581354 855633 373179 482454 317631 264350 53281 149429 149429 60369 60369 6174811 6174811 388681 191080 197601 645849 28111 617738 792184 228068 564116 200755 200755 231475 209358 22117 133798 96825 36973 708964 96728 612236 119530 48242 71288 1547544 1537698 9846 160060 154927 5133 MISCELLANEOUS 71777 55969 15808 UNRELATED BUSINESS TAX 49910 49910 EQUIPMENT & FURNISHINGS 7575 7180 395 197336150 168795539 16197514 12343097 5678401 11788895 64679166 95688470 111484931 87687279 5744050 24013708 56424369 12295639 48731429 44128730 811411044 768703301 733569833 685895942 27860747 30391203 52092103 51545985 1861251704 1799843513 48554686 46654592 69338694 65768211 117893380 112422803 X 176743230 165265993 1135555250 1082707082 431059844 439447635 1743358324 1687420710 1861251704 1799843513 X 18602035 -65862985 -8676664 X 0 1 X 1 0 X 118770141 138630627 186410633 190025615 140463369 774300385 118770141 138630627 186410633 190025615 140463369 774300385 70344874 703955511 28312004 29024307 23410494 29408360 26796443 136951608 -164977 -212239 -1061458 -982502 -457644 -2878820 908373173 40958584 0.77500 0.77200 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 0 0 0 0 168795539 169406280 168795539 169406280 1000000 1000000 250000 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 250000 250000 250000 250000 1000000 1500000 -860 676882 X X X X 0 0 1 X 1020215390 34212862 -14895996 14903301 19403790 1005225165 980592275 74913454 -1631054 14750171 18909114 1020215390 859882814 26053312 126579227 14120401 17802728 980592275 788414325 29680270 70848569 12922126 16138224 859882814 822485264 31575638 -31381920 11694829 22659829 788414325 0.00290 0.38990 0.60720 0 0 13306264 13900522 27206786 153200 26183287 10411550 15924937 2851991 1884089 967902 29105 29105 44128730 HEDGE FUNDS 428195532 F OTHER LLC'S AND LLP'S 61672083 F PRIVATE INVESTMENTS 194170997 F REAL EST,ROYALTY,&MINERAL INTERESTS 1857330 F 685895942 142281052 -65862985 -2574386 -68437371 210718423 5219762 5219762 215938185 198218666 6102278 6102278 192116388 5219762 5219762 197336150 PART III, LINE 4: OVER THE YEARS, DONORS HAVE GIVEN IN-KIND GIFTS OF ART AND LIBRARY COLLECTIONS, OR HAVE ESTABLISHED FUNDS FOR THE PURPOSE OF PURCHASING SUCH ITEMS FOR THE MUSEUMS, LIBRARIES AND TEACHING FACILITIES OF THE UNIVERSITY OF KANSAS. SUCH GIFTS ARE ADMINISTERED BY KU ENDOWMENT IN ACCORDANCE WITH ANY APPROPRIATE DONOR RESTRICTIONS THAT MAY BE PLACED UPON THE GIFT. PART IV, LINE 2B: KU ENDOWMENT HOLDS CERTAIN ENDOWMENT AND OTHER FUNDS ON BEHALF OF AFFILIATES OF THE UNIVERSITY AND OTHER THIRD PARTIES. PART V, LINE 4: ENDOWMENT FUNDS CONSIST OF APPROXIMATELY 3,283 INDIVIDUAL FUND ACCOUNTS ESTABLISHED TO PROVIDE SUPPORT FOR A VARIETY OF UNIVERSITY PROGRAMS ACROSS GENERATIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF LIFE INCOME GIFTS -3,247,353. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND -266,268. FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 823,160. CHANGE IN VALUE OF LIFE INSURANCE CASH VALUE 116,075. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 823,160. AMORTIZATION OF PENSION ADJUSTMENTS 5,279,118. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 INVESTMENTS 342887000 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 INVESTMENTS 2572000 SUB-SAHARAN AFRICA 0 0 FUNDRAISING 1000 EAST ASIA AND THE PACIFIC 0 0 FUNDRAISING 5000 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 FUNDRAISING 4000 0 0 0 0 0 0 345469000 0 345469000 1 0 1 0 1 0 SCHEDULE F, PART I, LINE 3: THE AMOUNT FOR "INVESTMENTS" REPRESENTS THE TOTAL BOOK VALUE OF ALL INVESTMENTS IN THE REGION AS OF JUNE 30, 2016. SUCH INVESTMENTS BY THE ORGANIZATION ARE PASSIVE AND DO NOT CONSTITUTE ANY ACTIVITY RELATED TO THE ORGANIZATION'S PROGRAM SERVICES. INCOME FROM THESE HOLDINGS ARE REPORTED NET OF RELATED INVESTMENT EXPENSES, WHICH ARE DISCLOSED AS A NOTE TO THE AUDITED FINANCIAL STATEMENT. X X X X X X X 1 GRENZEBACH GLIER AND ASSOCIATES INC 401 N MICHIGAN AVE CHICAGO IL 60611 FUNDRAISING CONSULTING AND ANALYSIS 0 0 60369 -60369 60369 -60369 AK AZ AR CA CO CT HI LA ME MD MA MI MN MS MO NH NJ NY NC OH OK OR SC VA WA WV UT KY 20% OF RIGHT TO PURCHASE TICKETS 22764096 18211277 4552819 CANCER CENTER BENEFIT DINNER 1367246 953402 413844 84633 221206 145164 21 931137 523676 407461 8268 32668 153852 47391 129978 25062479 19688355 5374124 8268 32668 238485 268597 275142 823160 4550964 1 THE UNIVERSITY OF KANSAS STRONG HALL 1450 JAYHAWK BLVD LAWRENCE KS 66045 486029925 SECTION 115 161964100 0 STUDENT SCHOLARSHIPS AND FELLOWSHIPS, STUDENT AND FACULTY AWARDS AND PRIZES, FACULTY AND STAFF SALARY SUPPORT, GENERAL PROGRAM AND EDUCATIONAL SUPPORT, AND FACILITIES SUPPORT. THE KANSAS UNIVERSITY ALUMNI ASSOCIATION 1266 OREAD AVENUE LAWRENCE KS 66045 480291250 501(C)(3) 1987771 0 GENERAL SUPPORT TO FURTHER THE MISSION OF THE ALUMNI ASSOCIATION TO INFORM, ENGAGE, AND MOBILIZE THE KU COMMUNITY. THE UNIVERSITY OF KANSAS HOSPITAL AUTHORITY 3901 RAINBOW BLVD KANSAS CITY KS 66160 481202402 SECTION 115 4843668 0 SALARY AND FACILITY SUPPORT FOR THE UNIVERSITY OF KANSAS HOSPITAL. 3 0 PART I, LINE 2: MANY DISBURSEMENTS IN FURTHERANCE OF THE ORGANIZATION'S EXEMPT PROGRAMS ARE MADE FOR UNIVERSITY OF KANSAS STUDENT SCHOLARSHIPS OR FOR UNIVERSITY EMPLOYEE SALARIES AND SIMILAR EXPENSES WHICH ARE DISBURSED DIRECTLY TO THE UNIVERSITY, AND WHICH ARE INCURRED DIRECTLY IN THE ACTIVE CONDUCT OF ACTIVITIES CONSTITUTING THE EXEMPT PURPOSE OR FUNCTION FOR WHICH THE ORGANIZATION IS ORGANIZED AND OPERATED. OTHER DISBURSEMENTS IN FURTHERANCE OF THE ORGANIZATION'S EXEMPT PROGRAMS ARE MADE FOR THE DIRECT BENEFIT OF THE UNIVERSITY OF KANSAS, IN ACCORDANCE WITH ACCOUNTABLE PLAN PROCEDURES AND ARE SUBJECT TO CONDITIONS ESTABLISHED BY THE ORGANIZATION'S GOVERNING BOARD DESIGNED TO ENSURE THAT INDIVIDUALS AND ORGANIZATIONS RECEIVING DISBURSEMENTS FROM THE ORGANIZATION IN FURTHERANCE OF ITS EXEMPT PROGRAMS ARE ADEQUATELY INVESTIGATED TO ENSURE THAT THEY ARE QUALIFYING RECIPIENTS. STUDENTS RECEIVING SCHOLARSHIPS AND FELLOWSHIPS ARE JUDGED WORTHY BY THE UNIVERSITY'S ASSESSMENT ON THE BASIS OF ACADEMIC ACHIEVEMENT, FINANCIAL NEED AND SIMILAR STANDARDS, IN ACCORDANCE WITH APPLICABLE GIFT INSTRUMENTS. X X 1 1 X X X X 0 1 0 0 0 0 0 1 0 DALE W SEUFERLING PRESIDENT 398882 0 0 0 0 0 115056 0 12033 0 525971 0 0 0 D JEROME DAVIES SECRETARY/SVP DEVELOPMENT 236218 0 2500 0 0 0 54685 0 11937 0 305340 0 0 0 JEFFREY W DAVIS TREASURER/SVP FINANCE-RET. DEC '15 263588 0 17951 0 0 0 168379 0 8364 0 458282 0 0 0 REBECCA L BLAESING VP MEDICAL DEVELOPMENT 172392 0 0 0 0 0 38961 0 527 0 211880 0 0 0 CLARK CROPP SVP ADMINISTRATION 190121 0 0 0 0 0 95097 0 9326 0 294544 0 0 0 JAMES R MECHLER ASSOC SVP DEVELOPMENT 179380 0 1000 0 0 0 43399 0 11778 0 235557 0 0 0 WILLIAM S GREEN SVP INFORMATION SYSTEMS 169442 0 1500 0 0 0 57250 0 5956 0 234148 0 0 0 MARK P WILSON AVP CAMPAIGN PLAN & MGMT 146561 0 0 0 0 0 22021 0 453 0 169035 0 0 0 MONTE L SOUKUP SVP PROPERTY 137485 0 2500 0 0 0 28554 0 11671 0 180210 0 0 0 PART I, LINE 1A REGARDING TRAVEL FOR COMPANIONS, KU ENDOWMENT'S WRITTEN GUIDELINES ARE AS FOLLOWS: "FOR SPOUSE EXPENSES TO BE REIMBURSABLE, THE EXPENSE MUST BE REQUIRED BY YOUR SUPERVISOR AND IT IS EXPECTED THAT THE EVENT IN WHICH YOUR SPOUSE IS INCLUDED WILL INCLUDE SPOUSES OF GUESTS, AND BOTH REQUIREMENTS SHOULD BE STATED ON THE REIMBURSEMENT REQUEST." IN KEEPING WITH THIS POLICY, TRAVEL EXPENSES WERE REIMBURSED, AND NOT TREATED AS COMPENSATION, FOR A SPOUSE TO ACCOMPANY AN OFFICER TO ASSIST IN A VOLUNTEER CAPACITY WITH DONOR DEVELOPMENT AT SEVERAL EVENTS, WHICH ALSO REQUIRED ATTENDANCE BY THE OFFICER. COUNTRY CLUB DUES WERE PAID ON BEHALF OF TWO OFFICERS AND TWO HIGHLY COMPENSATED EMPLOYEES TO PROMOTE FUNDRAISING EFFORTS. THESE AMOUNTS ARE TREATED AS COMPENSATION TO THESE EMPLOYEES. PART I, LINE 4B ONE OFFICER MEETS THE CRITERIA TO PARTICIPATE IN THE NONQUALIFIED RETIREMENT PLAN AS OF THE PARTICIPANT'S NORMAL RETIREMENT DATE, SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. THE AMOUNT INCLUDED IN COLUMN (C) AS DEFERRED COMPENSATION FOR DALE W. SEUFERLING ATTRIBUTABLE TO THE NONQUALIFIED RETIREMENT PLAN IS $78,208. PART I, LINE 7 ONE OFFICER AND THREE "HIGHEST COMPENSATED EMPLOYEES" RECEIVED A BONUS PAYMENT THAT RESULTED FROM KU ENDOWMENT'S ANNUAL REVIEW OF ALL EMPLOYEE'S COMPENSATION. THE BONUS WAS FOR EXEMPLARY SERVICE DURING THE YEAR, AS APPROVED BY THE EXECUTIVE STAFF COMPENSATION COMMITTEE, AND THAT, WHEN COMBINED WITH EACH EMPLOYEES' REGULAR COMPENSATION, IS WITHIN THE BENCHMARK RANGE OF COMPARABLE SALARIES FOR EACH POSITION WITHIN KU ENDOWMENT'S MARKET PEERS. ALSO, ONE OFFICER, JEFF DAVIS, UPON RETIREMENT AT THE END OF CALENDAR YEAR 2015, RECEIVED A LONGEVITY BONUS FOR HIS OVER 30 YEARS OF SERVICE TO THE ORGANIZATION. THIS LONGEVITY BONUS WAS ALSO APPROVED BY THE EXECUTIVE STAFF COMPENSATION COMMITTEE. KURT D WATSON EXECUTIVE COMMITTEE OF KU ENDOWMENT 328308 SEE PART V - KURT WATSON IS PRESIDENT OF THE IMA FINANCIAL GROUP, WHICH RECEIVES FEES AS AN INSURANCE CONSULTANT AND BROKER. THE TRANSACTIONS ARE CONDUCTED AT ARM'S LENGTH AND APPROVED BY EXECUTIVE STAFF BASED ON AUTHORITY FROM THE EXECUTIVE COMMITTEE. 0 0 X 328 9318908 FMV X 5 192437 FMV (SAME AS PROCEEDS) X 6 1533814 MARKET COMPARABLES 5 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF DONORS. FORM 990, PART VI, SECTION A, LINE 2 DEANELL REECE TACHA, M.D. MICHAELIS, ROBERT TAYLOR, AND KURT WATSON HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS OF THE ORGANIZATION WERE AMENDED AS OF JANUARY 14, 2016. THE AMENDMENTS PRIMARILY INCLUDED: 1) REVISIONS TO SECTIONS THAT WERE RELEVANT AT THE TIME THE BYLAWS WERE REVISED IN 2008 BUT ARE NOW OUTDATED; 2) MINOR REVISIONS THAT WILL PROVIDE GREATER FLEXIBILITY FOR THE AGE REQUIREMENT FOR A CHAIR'S FIRST TERM AND THE NAMING OF AN ASSISTANT SECRETARY AND ALLOW FOR ONE ADDITIONAL MEMBER OF EACH COMMITTEE; AND 3) A REWRITTEN CONFLICT OF INTEREST SECTION INCLUDING A NEW PROVISION FOR CONFLICT OF INTEREST ON PERSONNEL MATTERS. SEE SCHEDULE O RESPONSE TO PART VI, LINE 12C, FOR UPDATED LANGUAGE RELATED TO CONFLICT OF INTEREST PROCEDURES. FORM 990, PART VI, SECTION A, LINE 7A THE BYLAWS OF THE ORGANIZATION PROVIDE FOR A BOARD OF TRUSTEES TO BE COMPRISED OF 50 TO 75 MEMBERS, NONE OF WHICH RECEIVE COMPENSATION FOR THEIR POSITION AS TRUSTEE. THE BOARD OF TRUSTEES ARE RESERVED A LIMITED NUMBER OF POWERS WHICH INCLUDE: 1.) ELECTION OR REMOVAL OR TO FILL VACANCIES IN THE EXECUTIVE COMMITTEE; AND 2.) ELECTION OF THE CHAIR OF THE EXECUTIVE COMMITTEE. THE OTHER POWERS PROVIDED TO THE MEMBERS OF THE BOARD OF TRUSTEES ARE OUTLINED IN THE EXPLANATION TO QUESTION 7B BELOW. FORM 990, PART VI, SECTION A, LINE 7B THE LIMITED POWERS OF THE MEMBERS OF THE BOARD OF TRUSTEES OF THE ORGANIZATION ALSO INCLUDE: 1.) ELECTION OR REMOVAL OR TO FILL VACANCIES OF THE MEMBERS OF THE BOARD OF TRUSTEES; 2.) CHANGE IN THE NUMBER OF MEMBERS OF THE BOARD OF TRUSTEES; 3.) AMENDMENT OF THE ARTICLES OF INCORPORATION; AND 4.) LIQUIDATION OR DISSOLUTION OF KU ENDOWMENT, OR DISPOSITION OF ALL, OR SUBSTANTIALLY ALL, OF THE ASSETS OF KU ENDOWMENT, OR ANY MERGER OF KU ENDOWMENT INTO OR WITH ANOTHER CORPORATION. THE BYLAWS DO NOT GRANT THE MEMBERS OF THE BOARD OF TRUSTEES ANY OTHER POWERS OTHER THAN THOSE INDICATED ABOVE. A FULL LIST OF THE MEMBERS OF THE BOARD OF TRUSTEES CAN BE FOUND ON THE ORGANIZATION'S WEBSITE: WWW.KUENDOWMENT.ORG FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS PREPARED INTERNALLY BY THE DIRECTOR, TAX, COMPLIANCE, AND OPERATIONS. AN INTERNAL REVIEW OF THE RETURN IS COMPLETED BY APPROPRIATE KU ENDOWMENT PERSONNEL. AN EXTERNAL TAX PREPARER THEN COMPLETES A REVIEW OF THE RETURN. A DRAFT COPY OF FORM 990 IS PROVIDED TO THE AUDIT COMMITTEE TO REVIEW AND RECOMMEND REVISIONS. ANY SUCH RECOMMENDATIONS ARE PROVIDED IN A TIMELY MANNER TO INCORPORATE THEM IN THE RETURN BEFORE TRANSMITTAL TO THE IRS. THE AUDIT COMMITTEE REVIEWS THE 990 ON BEHALF OF THE GOVERNING BODY (THE EXECUTIVE COMMITTEE) AND RECOMMENDS APPROVAL OF THE 990 BY THE EXECUTIVE COMMITTEE. THE FINAL VERSION OF THE 990 IS PLACED ON THE TRUSTEE INTRANET FOR THE EXECUTIVE COMMITTEE TO REVIEW PRIOR TO FILING. AFTER TRANSMITTAL OF THE FINAL RETURN TO THE IRS, A COPY OF THE RETURN IS PLACED ON THE ORGANIZATION'S PUBLIC WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL CONFLICT OF INTEREST DISCLOSURE IS REQUESTED FROM ALL CURRENT MEMBERS OF THE BOARD OF TRUSTEES, OFFICERS AND EMPLOYEES. TO MONITOR AND ENFORCE COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY, THE FOLLOWING PROCEDURES HAVE BEEN ESTABLISHED: 1. DUTY TO DISCLOSE IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS OR HER FINANCIAL INTERESTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. 2. DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE PORTION OF THE TRUSTEE, EXECUTIVE COMMITTEE OR COMMITTEE MEETING DURING WHICH THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON BY THE REMAINING TRUSTEES, EXECUTIVE COMMITTEE MEMBERS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, WHICH OTHER TRUSTEES OR MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. 3. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST (A) THE TRUSTEES, EXECUTIVE COMMITTEE OR COMMITTEE, AS THE CASE MAY BE, SHALL COMPLY WITH ALL APPLICABLE LAWS AND KU ENDOWMENT POLICIES IN CONSIDERING A TRANSACTION OR ARRANGEMENT BETWEEN KU ENDOWMENT IN WHICH IT HAS BEEN DETERMINED THAT A CONFLICT OF INTEREST EXISTS. (B) AFTER EXERCISING ALL DUE DILIGENCE REQUIRED BY APPLICABLE LAW OR KU ENDOWMENT'S POLICIES AND ANY ADDITIONAL DUE DILIGENCE THAT MAY BE DEEMED APPROPRIATE UNDER THE CIRCUMSTANCES BY THE DISINTERESTED TRUSTEES, EXECUTIVE COMMITTEE MEMBERS OR COMMITTEE MEMBERS, AS THE CASE MAY BE, THE EXECUTIVE COMMITTEE OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED MEMBERS WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT TAKING INTO ACCOUNT WHETHER THE TRANSACTION OR ARRANGEMENT IS IN KU ENDOWMENT'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO KU ENDOWMENT. 4. VIOLATIONS OF THE CONFLICT OF INTEREST POLICY (A) IF THE EXECUTIVE COMMITTEE OR A STANDING COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT A TRUSTEE HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE TRUSTEE OF THE BASIS FOR SUCH BELIEF AND AFFORD THE TRUSTEE AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. (B) IF, AFTER HEARING THE RESPONSE OF THE TRUSTEE AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE EXECUTIVE COMMITTEE OR A STANDING COMMITTEE DETERMINES THAT THE TRUSTEE HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF OFFICERS AND SUCH OTHER PERSONS AS DESIGNATED BY THE EXECUTIVE COMMITTEE SHALL BE DETERMINED BY THE COMPENSATION COMMITTEE AND BE CONFIRMED BY THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE MAY ADJUST COMPENSATION DETERMINED BY THE COMPENSATION COMMITTEE WHENEVER, IN ITS JUDGMENT, THE BEST INTERESTS OF KU ENDOWMENT WOULD BE SERVED THEREBY. A COMPENSATION COMMITTEE OF NOT LESS THAN FIVE NOR MORE THAN EIGHT TRUSTEES SHALL BE APPOINTED ANNUALLY BY THE CHAIR OF THE EXECUTIVE COMMITTEE. THE CHAIR OF THE EXECUTIVE COMMITTEE SHALL DESIGNATE ONE COMPENSATION COMMITTEE MEMBER AS CHAIR. A MAJORITY IN NUMBER OF THE COMMITTEE SHALL CONSTITUTE A QUORUM. THE COMPENSATION COMMITTEE MUST CONSIST OF INDIVIDUALS WHO (I) DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO COMPENSATION ARRANGEMENTS OR TRANSACTIONS; (II) HAVE OBTAINED AND RELIED UPON APPROPRIATE DATA AS TO COMPARABILITY PRIOR TO MAKING ANY DETERMINATION; AND (III) ADEQUATELY DOCUMENT THE BASIS FOR COMMITTEE DECISIONS CONCURRENTLY WITH MAKING DETERMINATIONS. THE COMMITTEE IS DIRECTED TO ACT IN A MANNER THAT WILL AVOID THE INTERMEDIATE SANCTIONS PROVISIONS OF THE INTERNAL REVENUE CODE. ITS DUTIES SHALL BE THE REVIEW, STUDY AND RECOMMENDATION OF REASONABLE AND NECESSARY COMPENSATION FOR OFFICERS AND EMPLOYEES OF KU ENDOWMENT AND ANY AND ALL SUCH ADDITIONAL FUNCTIONS AS MAY FROM TIME TO TIME BE DESIGNATED BY THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 18 KU ENDOWMENT WAS GRANTED AN EXEMPTION FROM FEDERAL INCOME TAX IN 1934, AND RECEIVED ADDITIONAL CONFIRMATIONS OF THIS EXEMPTION OVER THE YEARS, AND MOST RECENTLY ON OCTOBER 18, 2010. A COPY OF THE LATTER IS AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB, "RESOURCES," "FINANCIALS AND FORMS," "IRS DETERMINATION LETTER." FORM 990, PART VI, SECTION C, LINE 19 KU ENDOWMENT'S FINANCIAL STATEMENTS ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB "RESOURCES," "FINANCIALS AND FORMS," "2016 AUDIT REPORT." ALSO, A COPY OF THE ORGANIZATION'S CURRENTLY FILED FORM 990 IS AVAILABLE IN THE SAME LOCATION ON THE ORGANIZATION'S WEBSITE. SCHEDULE O OF THE FORM 990 PROVIDES A DESCRIPTION OF THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND CERTAIN OTHER ASPECTS OF ITS GOVERNING DOCUMENTS, SUCH AS TRUSTEE ELECTIONS AND VOTING POWERS. FORM 990, PART XI, LINE 9: AMORTIZATION OF PENSION ADJUSTMENTS -5,279,118. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND -266,268. CHANGE IN VALUE OF LIFE INCOME GIFTS -3,247,353. CHANGE IN VALUE OF LIFE INSURANCE 116,075. CWAPTS LLC PO BOX 928 LAWRENCE KS 660440928 453170274 RENTAL REAL ESTATE KS 339090 3268739 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION RGAPTS LLC PO BOX 928 LAWRENCE KS 660440928 461289542 RENTAL REAL ESTATE KS 198240 1184580 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION RCP LLC PO BOX 928 LAWRENCE KS 660440928 320392147 RENTAL REAL ESTATE KS 259994 2949577 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION FOBN LLC PO BOX 928 LAWRENCE KS 660440928 262224126 RENTAL REAL ESTATE KS 118432 482642 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION THE KU ENDOWMENT CHARITABLE GIFT FUND PO BOX 928 LAWRENCE KS 660440928 200317170 SUPPORT FOR KU ENDOWMENT AND 501(C)(3)'S NAMED IN GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 LEON KARELITZ CHARITABLE TRUST PO BOX 928 LAWRENCE KS 660440928 616400249 SUPPORT FOR KU ENDOWMENT PURSUANT TO GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 VIRGIL AND PAULINE BROWN MEMORIAL TRUST PO BOX 928 LAWRENCE KS 660440928 467074121 SUPPORT FOR KU ENDOWMENT PURSUANT TO GOVERNING DOCUMENT. KS 501(C)(3) 11A, TYPE I KANSAS UNIVERSITY ENDOWMENT ASSOCIATION 1 CHARITABLE REMAINDER TRUSTS (49) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION KS N/A T 0 CHARITABLE REMAINDER TRUST (1) SPLIT INTEREST TRUST PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION IL N/A T 0 CHARITABLE REMAINDER TRUSTS (3) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION MO N/A T 0 CHARITABLE REMAINDER TRUSTS (3) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION TX N/A T 0 CHARITABLE LEAD TRUSTS (1) SPLIT INTEREST TRUST PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION OH N/A T 0 AGNES LAURETTA MCCLAIR TEST TRUST C/O BNK OF AMERICA PO BOX 831041 DALLAS TX 75283 486126736 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 36468 866084 1.00000 0 MARY SELLARS FUND C/O BNK OF AMERICA PO BOX 831041 DALLAS TX 75283 486203686 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 9336 301503 1.00000 0 LORRAINE M LOVE CHARITABLE REMAINDER UNITRUST PO BOX 700 JUNCTION CITY KS 66441 481247473 SEC. 4947(A)(1) NONEXEMPT CHARITABLE TRUST SUPPORTING KU ENDOWMENT KS N/A T 4392 112529 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 THE KU ENDOWMENT CHARITABLE GIFT FUND C 433648 CASH THE KU ENDOWMENT CHARITABLE GIFT FUND PO BOX 928 LAWRENCE KS 660440928 200317170 0 0 0 543224 543224 106484 26621 0 0 0 LEON KARELITZ CHARITABLE TRUST PO BOX 928 LAWRENCE KS 660440928 616400249 0 0 0 26933 26933 5387 1347 0 0 0 VIRGIL AND PAULINE BROWN MEMORIAL TRUST PO BOX 928 LAWRENCE KS 660440928 467074121 0 0 0 40584 40584 8117 2029 0 0 0