2015-05-15T09:28:59-05:00 2014-06-30 620647474 BLACKBURN CHILDERS & STEAGALL PLC 801B SUNSET DRIVE JOHNSON CITY TN 376043033 990 2013-07-01 626001104 JOHNSON UNIVERSITY JOHN 8655734517 7900 JOHNSON DRIVE KNOXVILLE TN 37998 CYNTHIA T BARNARD VP FOR FINANCE/TREASURER 8652513484 2015-05-14 1 THOMAS S GREER P00067526 4232824511 2015-05-14 2013 2016-03-07 17:11:31Z CYNTHIA T BARNARD 7900 JOHNSON DRIVE KNOXVILLE TN 37998 24139200 0 X WWW.JOHNSONU.EDU X 1893 TN JOHNSON, A PRIVATE, COEDUCATIONAL INSTITUTE OF HIGHER LEARNING OFFERING ASSOCIATE, BACCALAUREATE AND GRADUATE DEGREES. 14 14 874 423 15399 14399 4461026 4322770 12639407 18311108 1263257 1458065 16269 39262 18379959 24131205 1828918 2513380 0 0 801248 11119317 0 0 1127042 17520336 12493550 20150502 26126247 -1770543 -1995042 163627897 176349409 34153799 31620999 129474098 144728410 X JOHNSON, A PRIVATE, COEDUCATIONAL INSTITUTE OF HIGHER LEARNING OFFERING ASSOCIATE, BACCALAUREATE AND GRADUATE DEGREES. 1 0 20015272 2513380 18311108 OPERATION OF UNIVERSITY 20015272 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 0 1 1 0 0 0 0 1 0 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 1 0 0 0 1 224 0 1 874 1 1 1 0 0 0 0 0 0 0 0 0 X 14 14 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 TN X CYNTHIA T BARNARD 8652513484 7900 JOHNSON DRIVE KNOXVILLE TN 37998 L D CAMPBELL CHAIRMAN 1.00 X X 0 0 0 RALPH D CARNATHAN VICE CHAIRMAN 1.00 X X 0 0 0 JEFF WHITLOCK SR SECRETARY 1.00 X X 0 0 0 MARTHA ALLIGOOD TRUSTEE 1.00 X 0 0 0 W PERRY BAILEY TRUSTEE 1.00 X 0 0 0 JAMES C BOOK TRUSTEE 1.00 X 0 0 0 JEFFREY CASE TRUSTEE 1.00 X 0 0 0 CAROL CLIFFORD TRUSTEE 1.00 X 0 0 0 KENNETH R FUNK TRUSTEE 1.00 X 0 0 0 GREGORY J GRANT TRUSTEE 1.00 X 0 0 0 GEORGE W HALEY TRUSTEE 1.00 X 0 0 0 DREW MENTZER TRUSTEE 1.00 X 0 0 0 SAM WIDENER TRUSTEE 1.00 X 0 0 0 RICHARD E WOODS TRUSTEE 1.00 X 0 0 0 PAUL T COLEMAN ATTORNEY/EX-OFFICIO 1.00 X 0 0 0 GARY E WEEDMAN PRESIDENT; EX-OFFICIO 60.00 X 147015 0 37550 CHRISTOPHER R ROLPH VP FOR FINANCE/TREASURER 50.00 X 38615 0 11353 CYNTHIA T BARNARD VP FOR FINANCE/TREASURER 50.00 X 67286 0 22445 CHRIS DAVIS VP-ACADEMIC AFFAIRS/PROVOST 50.00 X 104047 0 16508 L THOMAS SMITH VP-ACADEMIC AFFAIRS/PROVOST 50.00 X 78686 0 15247 PHILIP EUBANKS VP FOR ADVANCEMENT 50.00 X 78694 0 24010 DAVID L LEGG VP-STUDENT AFFAIRS/DEAN OF 50.00 X 84061 0 16316 DAVID L EUBANKS CHANCELLOR AND VICE PROVOST 50.00 X 73178 0 3194 MARK PIERCE VICE PROVOST-RESEARCH AND PLANNING 50.00 X 87903 0 3787 TIMOTHY WINGFIELD DEAN OF ENROLLMENT SERVICE 50.00 X 75102 0 22466 CLIFF MCCARTNEY VP FOR ADMINISTRATION 50.00 X 73117 0 12932 BILL WOLF DEAN OF THE CHAPEL 50.00 X 45161 0 13745 952865 0 199553 2 0 1 0 PIONEER COLLEGE CATERERS INC 303 GLENROSE AVENUE NASHVILLE TN 37210 CAFETERIA SERVICE 1271102 JENZABAR INC P O BOX 55018 BOSTON MA 022055018 PROVIDE SOFTWARE 446627 TREE OF LIFE BOOKSTORES LLC 4601 SOUTH WESTERN AVENUE MARION IN 46953 PROVIDE TEXTBOOKS 305599 GIRL ON THE ROOF INC 1920 WILLOW VIEW LANE KNOXVILLE TN 37922 MARKETING SERVICES 132714 PENSION FUND OF THE CHRISTIAN CHURCH P O BOX 78000 DETROIT MI 482780885 ADMINISTER 403(B) RETIREMENT 132213 9 103483 4219287 60455 4322770 TUITION AND FEES 611710 13203389 13203389 AUXILIARY ENTERPRISES 611710 4957878 4957878 149841 149841 18311108 1452065 1452065 23863 16500 0 1101 23863 15399 39262 15399 23863 12894 6894 6000 6000 6000 24131205 18311108 15399 1481928 2513380 2513380 1209082 967266 193453 48363 7552399 5857607 1286757 408035 384285 377422 6863 1246955 997564 199513 49878 726596 581277 116255 29064 48119 48119 132110 14500 117610 317073 149780 64537 102756 145556 33361 112195 321169 209834 66155 45180 2964960 2371968 474394 118598 237034 182135 41392 13507 143675 118592 432 24651 55788 44630 8926 2232 1898676 1518941 303788 75947 408634 57254 351380 OTHER EXPENSES-PROGSERV 4018897 4018897 OTHER EXPENSES-MNGMNT-9 1704359 1704359 OTHER EXPENSES-FNDRSNG- 96636 96636 OTHER EXPENSES 864 864 26126247 20015272 4983933 1127042 68248 691824 1688663 3308212 982000 1071000 322986 848906 92472 1302947 140056 75363425 28378093 46535696 46985332 112727357 122976919 215198 0 19490 163627897 176349409 631517 643361 19616188 17567935 10000000 7500000 3906094 5909703 34153799 31620999 X 68033707 74371915 559434 594765 60880957 69761730 129474098 144728410 163627897 176349409 X -1995042 12864357 3887439 497558 X X 0 1 X 1 1 1 X 3952873 3624591 4231113 4461026 4322770 20592373 3952873 3624591 4231113 4461026 4322770 20592373 1118823 19473550 1570797 1675230 1716819 1266257 1475928 7705031 12950 17110 16260 16269 15399 77988 28375392 62588755 0.68630 X SCHEDULE A, PART I, LINES 2 AND 7 JOHNSON BIBLE COLLEGE RECEIVED AN IRS DETERMINATION LETTER IN DECEMBER, 1942 STATING THAT THE ORGANIZATION WAS RECOGNIZED AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ADDITIONALLY, THE ORGANIZATION WAS ALSO DETERMINED NOT TO BE A PRIVATE FOUNDATION AS DEFINED IN SECTION 509(A) OF THE CODE BECAUSE IT WAS AN ORGANIZTION DESCRIBED IN SECTION 509(A)(1) AND SECTION 170(B)(1)(A)(II), WHICH IS IDENTIFIED IN SCHEDULE A, PART I, LINE 2 AS A SCHOOL. IT IS AN EDUCATIONAL ORGANIZATION WHICH NORMALLY MAINTAINS A REGULAR FACULTY AND CURRICULUM AND NORMALLY HAS A REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ATTENDANCE AT THE PLACE WHERE ITS EDUCATIONAL ACTIVITIES ARE REGULARLY CARRIED ON. ON JULY 1, 2011, JOHNSON BIBLE COLLEGE CHANGED ITS NAME TO JOHNSON UNIVERSITY. PER THE 2013 INSTRUCTIONS FOR SCHEDULE B, SCHEDULE OF CONTRIBUTORS, THE INTERNAL REVENUE SERVICE HAS CLARIFIED THAT IN ORDER FOR THE UNIVERSITY TO REPORT ITS CONTRIBUTIONS UNDER THE SPECIAL RULE, THE ORGANIZATION MUST NOW CHECK BOX 7 OF SCHEDULE A, PART I, AND COMPLETE SCHEDULE A, PART II, SUPPORT SCHEDULE FOR ORGNIZATIONS DESCRIBED IN SECTIONS 170(B)(1)(A)(IV) AND 170(B)(1)(A)(VI). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 108570383 1862568 13605161 -1894041 -3532174 118611897 106290708 1564714 6317926 -1801052 -3801913 108570383 110552036 1455383 -4031691 -1685020 106290708 99667762 1135926 13088932 -3340584 110552036 83155296 1865199 14662746 -15479 99667762 0.42110 0.57890 0.00000 0 0 3461313 3461313 57458597 19337301 38121296 3388449 2361324 1027125 6707494 4546036 2161458 4347572 2133432 2214140 46985332 INVESTMENTS-OTH SECS(DETAIL)-990 122976919 C 122976919 OTHER LIABILITIES(DETAIL)-990 5909703 5909703 X PART V, LINE 4: THE INTENDED USE OF THE UNIVERSITY'S ENDOWMENT FUNDS IS FOR UNRESTRICTED PURPOSES, SCHOLARSHIPS, FACULTY/STAFF SALARIES, OTHER SPECIFIC PROGRAM EXPENSES, AND GENERAL USE. PART X, LINE 2: NOTE 14 - UNCERTAINTY IN INCOME TAXES THE UNIVERSITY FOLLOWS THE FASB ASC, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS. AS OF JUNE 30, 2014 AND 2013, THE UNIVERSITY HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE UNIVERSITY'S CONSOLIDATED FINANCIAL STATEMENTS. THE UNIVERSITY'S POLICY IS TO RECOGNIZE INTEREST AND PENALTIES ON UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IN THE CONSOLIDATED FINANCIAL STATEMENTS. HOWEVER, NO INTEREST OR PENALTIES WERE RECORDED DURING THE YEARS ENDED JUNE 30, 2014 AND 2013. GENERALLY, THE TAX YEARS BEFORE 2011 ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL TAXING AUTHORITIES. FEDERALLY FUNDED FINANCIAL AID PROGRAMS ARE SUBJECT TO SPECIAL AUDIT. SUCH AUDITS COULD RESULT IN CLAIMS AGAINST THE RESOURCES OF THE UNIVERSITY. NO PROVISION HAS BEEN MAKE FOR ANY LIABILITIES THAT MAY ARISE FROM SUCH AUDITS SINCE THE AMOUNTS, IF ANY, CANNOT BE DETERMINED AT THIS DATE. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE UNIVERSITY PUBLISHES ITS RACIALLY NONDISCRIMINATORY POLICY IN ITS MAGAZINE, "THE JOHNSON MAGAZINE", IN THE NEWSPAPER, AND IN A GRAPHIC OVERLAY TO VIDEOS USED IN TELEVISION ADS. SCHEDULE E, PART I, LINE 6 THE UNIVERSITY RECEIVES FINANCIAL ASSISTANCE FOR STUDENT FINANCIAL AID PROGRAMS SUCH AS THE FEDERAL PELL GRANT PROGRAM, AS WELL AS OTHERS FROM THE UNITED STATES DEPARTMENT OF EDUCATION. THE UNIVERSITY ALSO RECEIVES STUDENT FINANCIAL ASSISTANCE FROM THE STATE OF TENNESSEE IN THE FORM OF TENNESSEE LOTTERY SCHOLARSHIPS. X 0 TN SCHEDULE G, PART I, LINE 2B, COLUMN (V) FINANCIAL PLANNING MINISTRY (FPM) PROVIDES A SERVICE THAT MIGHT EVENTUALLY RESULT IN A CHARITABLE BEQUEST FROM AN ESTATE. FPM CHARGES A $2,920 PER MONTH ($35,040 PER YEAR) FLAT RATE FOR JOHNSON UNIVERSITY TO BE A PARTNER ORGANIZATION. FPM CONDUCTS ESTATE PLANNING SEMINARS WHERE PARTICIPANTS ARE OFFERRED THE OPPORTUNITY TO INCLUDE A CHARITABLE BEQUEST FOR ONE OF THE PARTNER CHARITIES. THE ONLY IMMEDIATE BENEFIT TO JOHNSON UNIVERSITY IS THE POTENTIAL OF AN ESTATE PLANNING EXPECTANCY THAT MOST LIKELY WILL NOT BE REALIZED FOR YEARS TO COME. 1 CASH SCHOLARSHIPS FOR STUDENTS ATTENDING JOHNSON UNIVERSITY IN KNOX COUNTY, TENNESSEE AND IN OSCEOLA COUNTY, FLORIDA. 869 2513380 0 N/A N/A PART I, LINE 2: THE UNIVERSITY DOES NOT GIVE ANY NON-CASH SCHOLARSHIPS. SCHOLARSHIPS ARE DISBURSED TO STUDENTS THROUGH CREDITING THEIR STUDENT ACCOUNTS. IF THE STUDENT HAS EXCESS SCHOLARSHIP FUNDS AS THE RESULT OF TITLE IV AID, THEN THESE FUNDS ARE AUTOMATICALLY DISBURSED TO THE STUDENT WITHIN 14 DAYS. IF THE EXCESS FUNDS ARE THE RESULT OF SOMETHING OTHER THAN TITLE IV AID, THE STUDENT MUST REQUEST A REFUND AND THESE FUNDS ARE DISBURSED TO THE STUDENT BY CHECK. THE UNIVERSITY'S PROCEDURES FOR MONITORING GRANT FUNDS IN THE U.S. ARE AS FOLLOWS: THE UNIVERSITY 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 UNIVERSITY'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 UNIVERSITY'S INDEPENDENT AUDITORS. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 GARY E WEEDMAN PRESIDENT; EX-OFFICIO 147015 0 0 0 0 0 17500 0 20050 0 184565 0 0 0 PART I, LINE 1A HOUSING ALLOWANCES OF $6,700 PER INDIVIDUAL WERE PROVIDED FOR THE FOLLOWING OFFICERS: GARY E. WEEDMAN; CHRISTOPHER R. ROLPH; CYNTHIA T. BARNARD; DAVID A. LEGG; PHILIP EUBANKS; AND TIMOTHY WINGFIELD. HOUSING ALLOWANCES OF $2,792 PER INDIVIDUAL WERE PROVIDED FOR THE FOLLOWING OFFICERS: CHRIS DAVIS AND L. THOMAS SMITH PART I, LINE 4B DR. GARY E. WEEDMAN, PRESIDENT/EX-OFFICIO, RECEIVED $17,500 FROM A NON-QUALIFIED RETIREMENT PLAN. DR. DAVID L. EUBANKS, CHANCELLOR AND VICE PROVOST, RECEIVED $3,194 FROM A NON-QUALIFIED RETIREMENT PLAN. PART I, LINE 5 N/A PART I, LINE 6 N/A PART I, LINE 7 N/A PART I, LINE 8 N/A A THE HEALTH EDUCATION & HOUSING FACLTY BD OF THE CO OF KNOX SERIES 2006 621220275 499503AA8 2009-11-02 6670000 TO FINANCE BUILDINGS AND EQUIPMENT OF THE UNIVERSITY 0 0 0 B THE HEALTH EDUCTN & HOUSNG FACLTY BD OF CO OF KNOX SPEC PROJ REV OBLGTN 621220275 NONEAVAIL 2009-12-31 18965076 REFNDNG OF PREVSLY ISSUED & OUTSTNDNG TAX-EXEMPT BNDS;ACQ-REAL PROP;CONSTR 0 0 0 A 400000 6670000 6670000 2007 0 0 1 1 B 7667141 18965076 12465075 48419 6451582 2011 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 0 1 1 REGIONS EQUIPMMENT FINANCE CORPORATION 10.000000000000 0 0 0 NA 0 0 B 0 0 0 0 1 1 REGIONS EQUIPMMENT FINANCE CORPORATION 12.000000000000 0 0 0 NA 0 0 A 0 B 0 SAM WIDENER TRUSTEE 3735 SAM WIDENER, TRUSTEE, IS THE 100% OWNER OF WINCO, INC. FOR THE YEAR ENDED 06/30/14, THE UNIVERSITY PURCHASED FLOORING PRODUCTS TOTALING $3,735. 0 X 5 44512 CLOSING MARKET PRICE X MISCELLANEOUS 11 15943 FAIR MARKET VALUE 0 0 0 FORM 990, PART III, LINE 2 ON JULY 1, 2013, JOHNSON UNIVERSITY, AN INSTITUTION OF CHRISTIAN HIGHER EDUCATION LOCATED IN KNOXVILLE, TENNESSEE, AND FLORIDA CHRISTIAN COLLEGE, LOCATED IN KISSIMMEE, FLORIDA, OFFICIALLY MERGED AND BECAME PART OF THE NEWLY ESTABLISHED JOHNSON UNIVERSITY SYSTEM. FLORIDA CHRISIAN COLLEGE IS NOW JOHNSON UNIVERSITY FLORIDA. FORM 990, PART VI, SECTION A, LINE 2 DAVID L. EUBANKS, THE FORMER PRESIDENT OF JOHNSON UNIVERSITY AND THE CURRENT CHIEF OPERATING OFFICER OF JOHNSON UNIVERSITY FLORIDA, IS THE FATHER OF PHILIP EUBANKS, THE VICE PRESIDENT FOR ADVANCEMENT. FORM 990, PART VI, SECTION B, LINE 11 THE UNIVERSITY'S TAX PREPARER WILL PROVIDE THE VICE PRESIDENT FOR FINANCE/TREASURER A SCANNED COPY OF THE FINAL VERSION OF THE FORM 990 TAX RETURN. THE RETURN WILL BE MAILED AND/OR EMAILED TO THE EXECUTIVE COMMITTEE AND THE PRESIDENT. THESE INDIVIDUALS WILL HAVE THREE TO FIVE BUSINESS DAYS TO ASK ANY QUESTIONS PRIOR TO THE FILING OF THE FORM 990 TAX RETURN. THE VICE PRESIDENT FOR FINANCE/TREASURER AND/OR THE CONTROLLER WILL ANSWER QUESTIONS OR PROVIDE INFORMATION AS REQUESTED. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES WILL REVIEW ANNUALLY THE UNIVERSITY'S CONFLICT OF INTEREST POLICY. EACH BOARD MEMBER WILL READ AND SIGN THIS POLICY AT THE FEBRUARY BOARD MEETING. THESE SIGNED STATEMENTS WILL BE RETAINED IN THE UNIVERSITY'S BUSINESS OFFICE. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES WILL REVIEW THE CABINET LEVEL SALARIES AND BENEFITS ANNUALLY. THIS REVIEW WILL BE CONDUCTED AT THE STANDING MAY EXECUTIVE COMMITTEE MEETING. THE VICE PRESIDENT FOR FINANCE/TREASURER WILL PROVIDE THE SALARY AND BENEFITS INFFORMATION. THE EXECUTIVE COMMITTEE WILL ALSO RECEIVE INDUSTRY SALARY COMPARISONS EVERY THREE TO FIVE YEARS. THE PRESIDENT OF THE UNIVERSITY DOES HAVE A WRITTEN EMPLOYMENT CONTRACT. OTHER OFFICERS DO NOT HAVE A WRITTEN EMPLOYMENT CONTRACT. FORM 990, PART VI, SECTION C, LINE 19 THE UNIVERSITY MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: GAIN (LOSS) ON INTEREST RATE SWAP AGREEMENT 188,342. ACTUARIAL GAIN (LOSS) ON ANNUITY CONTRACTS 309,216. FORM 990, PART XII, LINE 2C THE FINANCE AND INVESTMENT COMMITTEE ASSUMES RESPONISBILITY FOR OVERSIGHT OF THE AUDIT AND FOR THE SELECTION OF AN INDEPENDENT ACCOUNTANT, AND THIS POLICY HAS NOT CHANGED FROM THAT OF THE PRIOR YEAR. FORM 990, LINE C, PAGE 1 ON JULY 1, 2013, JOHNSON UNIVERSITY, AN INSTITUION OF CHRISTIAN HIGHER EDUCATION LOCATED IN KNOXVILLE, TENNESSEE, AND FLORIDA CHRISTIAN COLLEGE, LOCATED IN KISSIMMEE, FLORIDA, OFFICICALLY MERGED AND BECAME PART OF THE JOHNSON UNIVERSITY SYSTEM. FLORIDA CHRISITAN COLLEGE IS NOW JOHNSON UNIVERSITY FLORIDA. THE JOHNSON FOUNDATION INC 7900 JOHNSON DRIVE KNOXVILLE TN 37998 581767548 PROVIDES CHARITABLE GRANTS TO JOHNSON UNIVERSITY TN 501(C)(3) EXEMPT PRIVATE FOUND N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 THE JOHNSON FOUNDATION INC IS OPERATED ON THE N CASH PAID CAMPUS OF JOHNSON UNIVERSITY THERE ARE NO SEPARATE FACILITIES IN ADDITION THERE ARE THREE ADVANCEMENT EMPLOYEES WHO SPEND ON AVERAGE 8 HOURS PER MONTH WORKING ON FOUNDATION-RELATED MATTERS THE BUSINESS OFFICE CONTROLLER SPENDS AN ESTIMATED 20 HOURS PER YEAR PERFORMING ACCOUNTING WORK FOR THE FOUNDATION JOHNSON UNIVERSITY HAS NEVER SOUGHT REMEDIATION FOR THESE EXPENSES INCURRED BY THE UNIVERSITY BECAUSE GENERALLY THEY HAVE NOT BEEN MATERIAL IN NATURE THE ESTIMATED COST FOR THESE SERVICES WOULD NOT EXCEED 4000 FOR THE CURRENT YEAR