2015-02-09T14:02:16-06:00 2013-06-30 346565596 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 4000 INDIANAPOLIS IN 46204 990 2012-07-01 480547734 THE KANSAS UNIVERSITY ENDOWMENT ASSOCIATION KANS 7858327400 PO BOX 928 LAWRENCE KS 660440928 JEFFREY W DAVIS 7858327400 2015-02-09 1 P00032493 3176817000 2012 2016-02-25 16:41:14Z X KU ENDOWMENT DALE SEUFERLING PO BOX 928 LAWRENCE KS 660440928 290998500 0 X WWW.KUENDOWMENT.ORG X 1891 KS UNIVERSITY SUPPORT 10 7 314 72 -212239 -241143 118770141 138630627 2085529 2016642 5665879 62499297 8970531 11406024 135492080 214552590 30776549 118579080 0 0 43551815 14488496 113794 19001 11382925 68463944 10853601 142906102 143940178 -7414022 70612412 1443442782 1562679049 106063300 95889012 1337379482 1466790037 X KU ENDOWMENT PARTNERS WITH DONORS IN PROVIDING PHILANTHROPIC SUPPORT TO BUILD A GREATER UNIVERSITY OF KANSAS. 0 0 29524424 29524424 STUDENT SUPPORT--VIRTUALLY ALL PRIVATELY FUNDED SCHOLARSHIPS, AWARDS AND FELLOWSHIPS PROVIDED BY KU COME FROM DONOR CONTRIBUTIONS TO KU ENDOWMENT. THIS YEAR, MORE THAN 6,000 STUDENTS RECEIVED FINANCIAL ASSISTANCE FROM KU ENDOWMENT FUNDS. 34589478 34589478 FACULTY SUPPORT INCLUDES 179 NAMED, ENDOWED POSITIONS, INCLUDING 7 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. 37195824 37195824 2959874 SUPPORT FROM PRIVATE DONORS STRENGTHENS ACADEMIC PROGRAMS AND BRINGS RENOWNED SCHOLARS, ARTISTS AND PERFORMERS TO KU. IT ALSO EXPANDS THE HOLDINGS OF KU'S LIBRARIES AND MUSEUMS. 17269354 17269354 516959 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. MORE THAN TWO-THIRDS OF KANSAS UNIVERSITY BUILDINGS AND ABOUT 85% OF THE LAND AVAILABLE FOR CAMPUS EXPANSION WERE MADE POSSIBLE BY PRIVATE GIFTS. 17269354 17269354 516959 118579080 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 1004 0 1 314 1 1 1 0 0 0 0 1 1 0 0 0 0 X 10 7 1 0 0 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 JEFFREY W DAVIS TREASURER 7858327400 1891 CONSTANT AVENUE LAWRENCE KS 660473743 DALE W SEUFERLING 40.00 0.10 X X 339014 0 66776 D JEROME DAVIES 40.00 0.10 X X 211504 0 44390 JEFFREY W DAVIS 40.00 0.10 X X 200260 0 96470 WILLIAM R DOCKING 4.00 0.00 X 0 0 0 RA EDWARDS 3.00 0.00 X 0 0 0 CHARLES E HEATH 4.00 0.10 X 0 0 0 A DRUE JENNINGS 4.00 0.00 X 0 0 0 MD MICHAELIS 4.00 0.00 X 0 0 0 LINDA ELLIS SIMS 4.00 0.10 X 0 0 0 TODD L SUTHERLAND 3.00 0.00 X 0 0 0 DEANELL REECE TACHA 3.00 0.00 X 0 0 0 ROBERT D TAYLOR 4.00 0.00 X 0 0 0 KURT D WATSON 4.00 0.10 X 0 0 0 STEPHANIE GRINAGE 40.00 0.00 X 168167 0 30612 JAMES MECHLER 40.00 0.00 X 154347 0 34576 WILLIAM GREEN 40.00 0.00 X 150868 0 43785 CLARK CROPP 40.00 0.00 X 150834 0 51347 MARK P WILSON 40.00 0.00 X 139911 0 16583 MONTE L SOUKUP 40.00 0.00 X 125662 0 26146 1640567 0 410685 18 0 1 0 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 02110 INVESTMENT CONSULTING 1790916 1607 CAPITAL PARTNERS LLC 4991 LAKE BROOK DR STE 125 GLEN ALLEN VA 23060 INVESTMENT MANAGEMENT 382642 PROFESSIONAL PRACTICE GROUP 713 HARRISON ST SYRACUSE NY 13210 CONSULTING SERVICES 280000 THE CARDEN GROUP PO BOX 693 JEFFERSON CITY MO 65102 CONSULTING SERVICES 253729 NOUVEAU CONSTRUCTION AND TECHNOLOGY SERV 2441 LACEY LANE CARROLLTON TX 75006 CONSTRUCTION 179937 17 20853148 1450 19164196 98611833 16765865 138630627 LOAN INTEREST 522200 1499683 1499683 BUILDING LEASE 531120 352325 352325 APARTMENT RENTALS 531110 155139 155139 OTHER REAL ESTATE 531390 9495 9495 2016642 18002832 1460191 -245922 16788563 2258666 2258666 119973663 102500 75487203 92495 44486460 10005 44496465 44496465 5558315 20853148 866212 4692103 4692103 OTHER RECEIPTS 900099 2266251 2266251 AGRICULTURE 110000 2155321 2155321 OIL & GAS EXTRACTION 211110 33683 33683 4455255 214552590 3476833 -212239 72657369 X 118579080 118579080 1211402 736997 474405 9986731 3513310 6473421 1656518 517890 1138628 869939 375326 494613 763906 318604 445302 103197 94846 8351 130835 130835 19001 19001 6046894 6046894 326109 98612 227497 655600 22568 633032 773518 223508 550010 89892 89892 159401 133283 26118 126286 97079 29207 803566 80043 723523 114792 56210 58582 1298719 1237586 61133 112392 107275 5117 MISCELLANEOUS 105377 91625 13752 EQUIPMENT & FURNISHINGS 8242 7009 1233 UNRELATED BUSINESS TAX -1219 -1219 143940178 118579080 13978173 11382925 6807684 9162073 114126340 70110269 65137924 59302301 12072273 6030020 56640880 8850899 38753671 47789981 719049232 775211188 425620263 526135100 21268537 21301522 40606858 47636595 1443442782 1562679049 44440486 34971491 61622814 60917521 106063300 95889012 X 154810822 165400744 775717672 884405527 406850988 416983766 1337379482 1466790037 1443442782 1562679049 X 70612412 57020156 1777987 X 0 1 X 1 0 X 102470771 107274043 109911593 118770141 138630627 577057175 102470771 107274043 109911593 118770141 138630627 577057175 16174315 560882860 41192246 28896790 32853347 28312004 29024307 160278694 33895 -11291 -10648 -164977 -212239 -365260 736970609 22000325 0.76110 0.72400 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 118579080 118579080 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 0 0 0 0 250000 250000 250000 250000 1000000 1500000 0 686280 X X X X 0 0 1 X 788414325 29680270 70848569 12922126 16138224 859882814 822485264 31575638 -31381920 11694829 22659829 788414325 683222760 28231498 134790574 10034480 13725088 822485264 573344085 23213567 117037613 10574040 19798465 683222760 753554225 21731857 -167933094 20809436 13199467 573344085 0.00340 0.42870 0.56790 0 0 12982229 13942018 26924247 26432066 6937916 19494150 3262336 1912983 1349353 22231 22231 47789981 MARKETABLE ALTERNATIVE INVESTMENTS 349420815 F NON-MARKETABLE ALTERNATIVE INVESTMTS 64610342 F OTHER LLC'S AND LLP'S 110262465 F REAL EST,ROYALTY,&MINERAL INTERESTS 1841478 F 526135100 266915292 57020156 638715 57658871 209256421 5296169 5296169 214552590 137504737 -1139272 -1139272 138644009 5296169 5296169 143940178 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. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: ENDOWMENT FUNDS CONSIST OF APPROXIMATELY 2,887 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 -329,381. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND 238,665. FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 866,212. CHANGE IN VALUE OF LIFE INSURANCE CASH VALUE -136,781. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT DIRECT EXPENSES (SEE PART VIII, LINE 8B) 866,212. AMORTIZATION OF PENSION ADJUSTMENTS -2,005,484. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 INVESTMENTS 186650081 0 0 0 0 0 0 186650081 0 186650081 1 0 0 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, 2013. 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 CAMPAIGN PLANNING, FEASIBILITY ANALYSIS 0 0 19001 -19001 19001 -19001 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 23888133 19110506 4777627 CANCER CENTER BENEFIT DINNER 1344868 978603 366265 80316 239928 123668 23 1178462 764039 414423 1630 80305 163199 47761 129405 26411463 20853148 5558315 1630 80305 243515 287689 253073 866212 4692103 1 THE UNIVERSITY OF KANSAS STRONG HALL 1450 JAYHAWK BLVD LAWRENCE KS 66045 486029925 SECTION 115 106883637 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) 1644772 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 10050671 SALARY AND FACILITY SUPPORT FOR THE UNIV OF KS HOSPITAL. 3 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: MANY DISBURSEMENTS IN FURTHERANCE OF THE INSTITUTION'S EXEMPT PROGRAMS ARE MADE FOR STUDENT SCHOLARSHIPS OR FOR UNIVERSITY EMPLOYEE SALARIES AND SIMILAR EXPENSES WHICH ARE DISBURSED DIRECTLY TO THE UNIVERSITY OF KANSAS, AND WHICH ARE INCURRED DIRECTLY IN THE ACTIVE CONDUCT OF ACTIVITIES CONSTITUTING THE EXEMPT PURPOSE OR FUNCTION FOR WHICH THE INSTITUTION IS ORGANIZED AND OPERATED. OTHER DISBURSEMENTS IN FURTHERANCE OF THE INSTITUTION'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 INSTITUTION'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 0 0 DALE W SEUFERLING 339014 0 0 0 0 0 55695 0 11081 0 405790 0 0 0 D JEROME DAVIES 211504 0 0 0 0 0 33485 0 10905 0 255894 0 0 0 JEFFREY W DAVIS 200260 0 0 0 0 0 87831 0 8639 0 296730 0 0 0 STEPHANIE GRINAGE 168167 0 0 0 0 0 25075 0 5537 0 198779 0 0 0 JAMES MECHLER 154347 0 0 0 0 0 23850 0 10726 0 188923 0 0 0 WILLIAM GREEN 150868 0 0 0 0 0 35589 0 8196 0 194653 0 0 0 CLARK CROPP 150834 0 0 0 0 0 40604 0 10743 0 202181 0 0 0 MARK P WILSON 139911 0 0 0 0 0 16115 0 468 0 156494 0 0 0 MONTE L SOUKUP 125662 0 0 0 0 0 17986 0 8160 0 151808 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 $38,677. RA EDWARDS EXECUTIVE COMMITTEE OF KU ENDOWMENT 273487 SEE PART V - R.A. EDWARDS IS PRESIDENT OF FIRST NATIONAL BANK OF HUTCHINSON, WHICH MANAGES INCOME-PRODUCING FARM PROPERTIES HELD BY KU ENDOWMENT. THE TRANSACTIONS ARE CONDUCTED AT ARM'S LENGTH AND APPROVED BY EXECUTIVE STAFF BASED ON AUTHORITY FROM THE EXECUTIVE COMMITTEE. 0 KURT D WATSON EXECUTIVE COMMITTEE OF KU ENDOWMENT 296730 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 ROBERT D TAYLOR EXECUTIVE COMMITTEE OF KU ENDOWMENT 289000 SEE PART V - ROBERT TAYLOR IS CEO AND FOUNDER OF EXECUTIVE AIRSHARE, TO WHICH A PAYMENT ON BEHALF OF THE UNIVERSITY OF KANSAS, WAS MADE FOR A FRACTIONAL INTEREST IN AN AIRPLANE FOR USE BY THE UNIVERSITY. THE EXECUTIVE COMMITTEE APPROVED THIS ARM'S LENGTH TRANSACTION WITH MR. TAYLOR ABSTAINING FROM THE VOTE FOR THIS TRANSACTION. 0 X 277 11054775 COST X 1 1000090 COST (SAME AS PROCEEDS) X 1 4469000 MARKET COMPARABLES X 3 242000 MARKET COMPARABLES 3 0 1 0 METHOD FOR DETERMINING NUMBER OF CONTRIBUTIONS: PART I, COLUMN (B): SCHEDULE M, PART I, COUMN (B), THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS. FORM 990, PART VI, SECTION A, LINE 2 M.D. MICHAELIS, R.A. EDWARDS, TODD SUTHERLAND, DEANELL REECE TACHA, ROBERT TAYLOR, AND KURT WATSON HAVE A BUISNESS RELATIONSHIP. 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. 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 TAX AND COMPLIANCE REPORTING OFFICER. 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, UPON DISCLOSURE OF A CONFLICT OF INTEREST, THE CHAIR OF THE EXECUTIVE COMMITTEE OR COMMITTEE SHALL, IF APPROPRIATE APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER EXERCISING DUE DILIGENCE, THE EXECUTIVE COMMITTEE OR COMMITTEE SHALL DETERMINE WHETHER KU ENDOWMENT CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE EXECUTIVE COMMITTEE OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED MEMBERS 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 AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. 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. 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 SEVEN 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 CONFIRMATION OF THIS EXEMPTION ON JUNE 1, 2000, AND MOST RECENTLY ON OCTOBER 18, 2010. A COPY OF THE LATTER IS AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB, "ACCOUNTABILITY," "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 "ACCOUNTABILITY," "FINANCIALS AND FORMS," "2013 AUDIT REPORT." A COPY OF THE ORGANIZATION'S GOVERNING DOCUMENTS, INCLUDING THE CONFLICT OF INTEREST POLICY, ARE ALSO AVAILABLE ON THE ORGANIZATION'S WEBSITE UNDER THE TAB "ABOUT US," "LEADERSHIP,"BOARD OF TRUSTEES." PRESENTATION OF PROGRAM SERVICE EXPENSES FOR THE BENEFIT OF UNIV OF KANSAS FORM 990, PART IX, COLUMN (B), PROGRAM SERVICE EXPENSES IN PRIOR YEARS, THE REPORTING ORGANIZATION (KU ENDOWMENT) HAS PRESENTED ITS PROGRAM SERVICE EXPENSES AS INDIVIDUAL LINE ITEMS ON PART IX, COLUMN (B) WHICH WOULD GIVE THE IMPRESSION THAT THESE WERE EXPENSES INCURRED BY THE ORGANIZATION IN COMPLETING ITS PROGRAM SERVICES. HOWEVER, THE AMOUNTS REPORTED ON PART IX, COLUMN (B), REPRESENT EXPENSES INCURRED BY THE UNIVERSITY OF KANSAS AND ITS AFFILIATED ENTITIES IN FURTHERANCE OF ITS MISSION AS A PUBLIC HIGHER EDUCATION AND RESEARCH INSTITUTION. THE REPORTING ORGANIZATION PROVIDES FUNDS TO BENEFIT THE UNIVERSITY OF KANSAS AND ITS AFFILIATED ENTITIES FOR SUCH PURPOSES EITHER IN THE FORM OF DIRECT CASH GRANTS OR PAYMENTS MADE ON ITS BEHALF TO FURTHER THE MISSION OF THE UNIVERSITY. IN ORDER TO MORE PROPERLY REFLECT THIS ACTIVITY, THE REPORTING ORGANIZATION IS CHANGING HOW IT REPORTS THIS INFORMATION ON PART IX, COLUMN (B). FOR THE 2012 FORM 990 AND FUTURE YEARS, THE REPORTING ORGANIZATION WILL REPORT THE SUPPORT OF THE UNIVERSITY OF KANSAS AND ITS AFFILIATED ENTITIES AS "GRANTS AND OTHER ASSISTANCE TO GOVERNMENTS AND ORGANIZATIONS IN THE UNITED STATES" ON LINE 1 OF PART IX, COLUMN (B). DETAILED INFORMATION ABOUT THE CORRESPONDING AMOUNT OF GRANTS IS THEN PROPERLY REPORTED ON SCHEDULE I, PART II AND PART III, LINE 4. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: AMORTIZATION OF PENSION ADJUSTMENTS 2,005,484. CHANGE IN NET INTEREST IN KU ENDOWMENT CHARITABLE GIFT FUND 238,665. CHANGE IN VALUE OF LIFE INCOME GIFTS -329,381. CHANGE IN VALUE OF LIFE INSURANCE -136,781. AMENDED RETURN EXPLANATION FORM 990, ITEM B, PAGE 1, AMENDED RETURN FORM 990 FOR THE FISCAL YEAR ENDED JUNE 30, 2013, IS BEING AMENDED TO CORRECT AN INADVERTENT OMISSION FROM SCHEDULE L. SUBSEQUENT TO FILING THE RETURN, IT WAS DISCOVERED THAT A TRANSACTION WITH A COMPANY THAT IS OWNED BY ONE OF THE MEMBERS OF THE ORGANIZATION'S EXECUTIVE COMMITTEE WAS NOT REPORTED ON PART IV OF SCHEDULE L. THIS UPDATE ALSO CHANGES THE NUMBER OF INDEPENDENT VOTING MEMBERS OF THE GOVERNING BODY THAT IS REPORTED ON PART VI, LINE 1B, AND PART I, LINE 4. FOBW LLC PO BOX 928 LAWRENCE KS 660440928 262224227 INACTIVE KS 0 0 THE KANSAS UNIVERSITY ENOWMENT ASSOCIATION CWAPTS LLC PO BOX 928 LAWRENCE KS 660440928 453170274 RENTAL REAL ESTATE KS 139872 3062925 THE KANSAS UNIVERSITY ENOWMENT ASSOCIATION RGAPTS LLC PO BOX 928 LAWRENCE KS 660440928 461289542 RENTAL REAL ESTATE KS 1111 127557 THE KANSAS UNIVERSITY ENOWMENT ASSOCIATION RCP LLC PO BOX 928 LAWRENCE KS 660440928 320392147 RENTAL REAL ESTATE KS 0 3520858 THE KANSAS UNIVERSITY ENOWMENT ASSOCIATION FOBN LLC PO BOX 928 LAWRENCE KS 660440928 262224126 RENTAL REAL ESTATE KS 10885 4469000 THE KANSAS UNIVERSITY ENOWMENT 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 N/A 0 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 N/A 0 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)-APPL PENDI 11A, TYPE I N/A 0 CHARITABLE REMAINDER TRUSTS (56) 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 LEAD TRUSTS (2) SPLIT INTEREST TRUSTS PROVIDING SUPPORT TO KU ENDOWMENT ASSOCIATION OH N/A T 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 4283 137586 1.00000 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 120484 925163 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 10670 289050 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0