2014-01-17T12:00:05-06:00 2013-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2012-07-01 237013253 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT LAKE 8472345005 1905 W Field Court Lake Forest IL 60045 JOHN N POPOLI 2013-10-08 true John Woodhull P01305268 3128997000 2012 2015-11-30 17:44:51Z JOHN N POPOLI 1905 W Field Court Lake Forest IL 60045 11807141 false X WWW.LAKEFORESTMBA.EDU X 1946 IL LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. 19 18 193 250 0 0 715063 243381 12222924 11276420 161324 184985 69456 72477 13168767 11777263 988690 905022 0 0 6777966 6641439 0 0 227304 5506396 4716987 13273052 12263448 -104285 -486185 19251497 18815773 1834017 1571221 17417480 17244552 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT (LFGSM) IS A PRIVATE, NONPROFIT INSTITUTION OF HIGHER EDUCATION DEDICATED TO IMPROVING THE ABILITY OF WORKING PROFESSIONALS AND ORGANIZATIONS TO MAKE SIGNIFICANT BUSINESS CONTRIBUTIONS THAT LEAD TO OUTSTANDING AND MEASURABLE RESULTS. LFGSM GRANTS MBA DEGREES AND SPECIALIZES IN MANAGEMENT DEVELOPMENT EDUCATIONAL PROGRAMS FOR MANAGERS AND EXECUTIVES OF AREA BUSINESSES AND OTHER ORGANIZATIONS. THE MAJORITY OF LFGSM'S STUDENTS ENROLLED ARE FROM CHICAGO, ILLINOIS AND ITS SURROUNDING SUBURBS. false false 7596997 905022 10263520 LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT COMBINES TRADITIONAL AND LEADING-EDGE ACADEMICS WITH A PRACTITIONER FACULTY THAT PROVIDES A DYNAMIC CONNECTION WITH THE REAL WORLD OF BUSINESS. THIS DISTINCTIVE APPROACH RESPONDS DIRECTLY TO THE RESULTS-ORIENTED DEMANDS OF TODAY'S BUSINESS ENVIRONMENT WHILE SATISFYING ACADEMIC RIGOR. OUR FACULTY MEMBERS OFFER DIVERSE PERSPECTIVES AND REPRESENT A WIDE ARRAY OF ORGANIZATIONS, INDUSTRIES, AND FUNCTIONS. THEY BLEND SOLID BUSINESS THEORY WITH PRACTICAL EXPERIENCE, SO STUDENTS RECEIVE A HANDS-ON EDUCATION THAT IS UNMATCHED. ALL OF OUR FACULTY MEMBERS HAVE EXTENSIVE PRACTICAL EXPERIENCE IN THE SUBJECT AREAS THEY TEACH. BUILDING ON THE SKILLS STUDENTS BRING TO THE PROGRAM, OUR COURSES SHARPEN THEIR ANALYTICAL ABILITIES BY COMBINING COURSE WORK WITH DAY-TO-DAY PROFESSIONAL EXPERIENCES. OUR GENERAL MBA PROGRAM OFFERS A BROAD KNOWLEDGE BASE IN EVERY AREA NEEDED FOR SUCCESS IN TODAY'S BUSINESS WORLD. INTERACTIVE AND PERSONAL, OUR FACULTY MEMBERS INCORPORATE A WIDE RANGE OF TEACHING METHODOLOGIES, INCLUDING FACILITATED DISCUSSION, ISSUES AND RESPONSIBILITIES FACING MANAGEMENT TODAY. 496268 911489 LAKE FOREST CORPORATE EDUCATION (LFCE) IS A PART OF LAKE FOREST GRADUATE SCHOOL WHICH PROVIDES INTERRELATED FORMAL CLASSROOM BUSINESS EDUCATION INSTRUCTION IN THE FORM OF CERTIFICATE PROGRAMS AND SHORT-TERM WORKSHOPS IN SUBJECTS SUCH AS STRATEGIC EXECUTION, FINANCE, COMMUNICATION, LEADERSHIP DEVELOPMENT, NEGOTIATIONS, PROJECT MANAGEMENT, MANAGING CHANGE, AND SALES. LFCE PROVIDES THESE PROGRAMS TO CORPORATIONS, PRIMARILY IN THE CHICAGO AREA. LFCE DEVELOPS CURRICULA, WHICH WHEN DELIVERED THROUGH FORMAL CLASSROOM INSTRUCTION ENABLE EMPLOYEES OF THOSE ORGANIZATIONS TO BROADEN THEIR BUSINESS KNOWLEDGE, AND TO HELP THEM MOVE FROM INDIVIDUAL CONTRIBUTOR TO ORGANIZATIONAL CONTRIBUTORS. THIS IS ACCOMPLISHED BY TAILORING CURRICULA, CONTENT, AND PROGRAMS TO MEET SPECIFIC NEEDS OF THE EMPLOYEES OF THE CORPORATIONS. 8093265 true true false false false false false false true true false false false false true true false true false true false false false true false false false true true false false false false false false false false false false false false false false false false false false true 26 0 true 193 true false false false false false true true false false false false false false X 19 18 false false false false false false false true true false false true true true true true true true true false X MALCOLM DOUGLAS 8475745166 1905 W FIELD COURT LAKE FOREST IL 60045 X DAVID MCDONOUGH 1.00 X X 0 0 0 JOAN BAILAR 1.00 X X 0 0 0 JOHN POPOLI 38.00 X X 267024 0 31828 KENNETH HOFFMAN 1.00 X X 0 0 0 ANTOINETTE GAWIN 1.00 X 0 0 0 B RICHARD SURKAMER 1.00 X 0 0 0 CAROLS MINETTI 1.00 X 0 0 0 GARY CHAN 1.00 X 0 0 0 HEATHER LOWE BECKER 1.00 X 0 0 0 JODY BERNS 1.00 X 9025 0 0 JOHN GINASCOL 1.00 X 0 0 0 JOHN PAPPAS 1.00 X 20477 0 0 PATRICIA COFFEY 1.00 X 0 0 0 RICK ADAMS 1.00 X 3150 0 0 SAMUEL BRILLIANT 1.00 X 0 0 0 SCOTT SHAFFER 1.00 X 0 0 0 STEPHEN SCHUTT 1.00 X 0 0 0 WARREN LINDLEY 1.00 X 0 0 0 WILLIAM COLBOURNE 1.00 X 0 0 0 CHRIS MULTHAUF 38.00 X 200417 0 29326 GREG KOZAK 38.00 X 150468 0 31073 KATHY LECK 38.00 X 200358 0 36430 MALCOLM DOUGLAS 38.00 X 173595 0 33501 PETER DRUMMOND 38.00 X 121087 0 11512 STASIA ZWISLER 38.00 X 127489 0 29138 ELLEN MCMAHON 38.00 X 105067 0 3526 MANISH SHAH 38.00 X 106118 0 9320 MARTHA WATT 38.00 X 112040 0 27792 1596314 0 243446 10 false true false MARKETING PARTNERSHIPS INTERNATIONAL 20 NORTH WACKER DRIVE CHICAGO IL 60606 MARKETING 419649 RISE INTERACTIVE INC 325 W HURON ST SUITE 200 CHICAGO IL 60654 LEAD GENERATION 264970 JENZABAR PO BOX 845939 BOSTON MA 02284 SOFTWARE 204879 WORLDSTRIDES 218 W WATER ST SUITE 400 CHARLOTTESVILLE VA 22902 FOREIGN STUDY PRACTICUM 165296 US INTERACTIVE MEDIA 1201 ALTA LOMA RD LOS ANGELES CA 90069 LEAD GENERATION 117670 7 71625 171756 22000 243381 MBA PROGRAM TUITION 900099 10264756 10264756 NON-DEGREE BUSINESS PROGRAMS 900099 911489 911489 OTHER MBA PROGRAM FEES 900099 86228 86228 DEVELOPMENT PROGRAMS 900099 13947 13947 0 0 0 0 0 11276420 184985 184985 0 0 77819 77819 0 77819 77819 0 0 0 15760 71625 29878 -14118 -14118 0 0 LOGO MERCHANDISE 900098 25 25 MISCELLANEOUS REVENUE 900099 8751 8751 0 0 0 0 0 8776 11777263 11285196 0 248686 0 905022 905022 0 0 1499918 505841 930332 63745 0 4008273 2790502 1117412 100359 317340 145620 158980 12740 496410 227790 248690 19930 319498 167292 140914 11292 0 22257 22257 60150 60150 0 0 0 0 0 0 0 1042065 1042065 58928 39438 19490 48697 48697 0 316715 316715 29460 13772 14975 713 0 41156 18521 22265 370 0 0 480912 322211 158701 67949 31790 36159 PROGRAM SERVICES 1070737 1070737 STUDENT SERVICES AND INSTITUTIONAL SUPPORT 1184783 251961 914667 18155 OPERATIONS AND MAINTENANCE 293178 196429 96749 0 0 0 0 12263448 8094403 3941741 227304 0 2067505 1850640 253187 379558 539281 80741 1183692 1318491 0 0 0 0 0 0 251624 273350 13216131 4038781 9579084 9177350 5377124 5735643 0 0 0 0 0 0 19251497 18815773 1214197 798218 0 619820 773003 0 0 0 1834017 1571221 X 16573077 16354982 644403 689570 200000 200000 17417480 17244552 19251497 18815773 -486185 313257 0 0 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 381689 1000 -6587 12750 363352 267820 123429 9560 381689 262674 350 17002 12206 267820 110094 150000 9955 7375 262674 108030 7474 5410 110094 0.00000 0.55000 0.45000 false false 2253006 2253006 8269963 2427796 5842167 708244 166330 541914 1114357 716963 397394 870561 727692 142869 9177350 0 0 X Intended uses of endowment funds Schedule D, Part V, Line 4 THE YOMINE ENDOWMENT FUND AND THE KAULE ENDOWMENT FUND ARE USED TO PROVIDE SCHOLARSHIPS TO MBA STUDENTS. FIN 48 (ASC 740) footnote Schedule D, Part X, Line 2 THE SCHOOL HAS RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE INDICATING THAT IT IS A NOT-FOR-PROFIT ENTITY AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE ("IRC") AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC, EXCEPT FOR TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE SCHOOL FOLLOWS GUIDANCE WITH RESPECT TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS. NO PROVISION HAS BEEN MADE FOR INCOME TAXES IN THE ACCOMPANYING FINANCIAL STATEMENTS, AS THE SCHOOL HAS HAD NO SIGNIFICANT UNRELATED BUSINESS INCOME. IF THE SCHOOL INCURS INTEREST AND PENALTIES, THE SCHOOL RECOGNIZES INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST AND INCOME TAX EXPENSE, RESPECTIVELY. THE SCHOOL HAS NO AMOUNTS ACCRUED FOR INTEREST OR PENALTIES AS OF JUNE 30, 2013 OR 2012. THE SCHOOL HAS NOT BEEN EXAMINED BY ANY TAX JURISDICTION. THE SCHOOL HAS NO ONGOING FEDERAL, STATE OR LOCAL TAX AUDITS, HOWEVER, THE SCHOOL'S TAX RETURNS FOR 2010 AND SUBSEQUENT YEARS ARE OPEN TO EXAMINATION. THE SCHOOL DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. true true true true true true true false false false false false false false false true false true Racially nondiscriminatory policy Schedule E, Part I, Line 3 POLICIES ARE INCLUDED IN ALL STUDENT, STAFF, AND FACULTY PUBLICATIONS INCLUDING HANDBOOKS, CATALOGS, AND PERIODICALLY IN MEDIA ADVERTISEMENTS AND OTHER SCHOOL PUBLICATIONS. Financial aid or assistance from a governmental agency Schedule E, Part I, Line 6a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT(LFGSM) RECEIVES THE FOLLOWING FINANCIAL AID AND/OR ASSISTANCE FROM A GOVERNMENTAL AGENCY: SCHOLARSHIPS, LOANS, VETERANS BENEFITS, AND SUPPLEMENTAL INFORMATION RESOURCES. ALL LFGSM STUDENTS ARE ELIGIBLE TO APPLY FOR FEDERAL STAFFORD LOANS. IN ADDITION TO STAFFORD LOANS, LFGSM STUDENTS MAY BE ELIGIBLE TO APPLY FOR THE SUPPLEMENTAL FINANCIAL RESOURCES INCLUDING SCHOLARSHIPS, VETERANS BENEFITS, AND PRIVATE LOANS. LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S DEPARTMENT OF EDUCATION TITLE IV SCHOOL CODE IS G23192. SOUTH AMERICA 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V ACCOUNT # 4028 54533 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V ACCOUNT # 4027 7203 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 PROGRAM SERVICES STUDY ABROAD/TRAVEL PROGRAM - SEE PART V ACCOUNT # 4025 117765 0 0 179501 false false false false false false ACTIVITIES PER REGION SCHEDULE F, PART I THE FOLLOWING STUDY ABROAD/TRAVEL PROGRAMS ARE OFFERED BY LFGSM: 5841 GLOBAL PRACTICUM: ASIA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE ASIAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. FOCUSING ON EMERGING MARKETS IN TERMS OF DEVELOPMENT, ECONOMY, GROWTH, AND PHILOSOPHIES IN A MULTI-CULTURAL SETTING, THE CHALLENGES AND OPPORTUNITIES OF THESE DYNAMIC MARKETS ARE ADDRESSED. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM ASIAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5840 GLOBAL PRACTICUM: EUROPE THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE EUROPEAN BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM EUROPEAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. 5842 GLOBAL PRACTICUM: LATIN AMERICA THIS COURSE OFFERS STUDENTS AN OPPORTUNITY TO FOCUS ON THE LATIN AMERICAN AND U.S. HISPANIC BUSINESS ENVIRONMENT WITHIN AN INNOVATIVE AND FLEXIBLE FRAMEWORK THAT COMBINES TRADITIONAL CLASSROOM-BASED LEARNING WITH STRUCTURED, RIGOROUS IN-COUNTRY EXPERIENTIAL LEARNING. THE PRAGMATIC ASPECTS OF DOING BUSINESS ABROAD, SUCH AS CULTURAL DIFFERENCES, RESOURCE AVAILABILITY, LEGAL AND ECONOMIC FRAMEWORK, TECHNOLOGY, AND MARKETING ISSUES, ARE EXPLORED THROUGH CLASSROOM DISCUSSION, IN-COUNTRY COMPANY AND GOVERNMENT SITE VISITS, LECTURES FROM LATIN AMERICAN EDUCATORS AND BUSINESS LEADERS, AND CONSULTING PROJECT CLIENT INTERACTION. EFFECTIVE COMMUNICATION AND ETHICAL DECISION MAKING UNDER THE UMBRELLA OF THE GLOBAL CHALLENGE ARE ADDRESSED. Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 EAST ASIA AND THE PACIFIC: ACCRUAL EUROPE (INCLUDING ICELAND AND GREENLAND): ACCRUAL SOUTH AMERICA: ACCRUAL Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 EAST ASIA AND THE PACIFIC: ACCRUAL EUROPE (INCLUDING ICELAND AND GREENLAND): ACCRUAL SOUTH AMERICA: ACCRUAL GOLF OUTING 87385 71625 15760 29878 0 0 87385 71625 15760 0 0 29878 0 0 0 29878 -14118 true SCHOLARSHIPS 951 905022 FMV Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 ALL GRANTS ARE IN THE FORM OF SCHOLARSHIPS AND ARE APPLIED TOWARD THE COST OF TUITION ONLY. Estimated Number of Recipients Schedule I, Part III, column(b) NAME=SCHOLARSHIPS,DESCRIPTION=THE NUMBER OF SCHOLARSHIP RECIPIENTS IS DETERMINED BY IDENTIFYING ALL STUDENTS RECEIVING AID IN THE FOLLOWING CATEGORIES, FUNDED SCHOLARSHIPS, WYOF SCHOLARSHIPS, TEXTBOOK CREDITS, MATERIALS CREDITS, EARLY COMMIT SCHOLARSHIP, NO TUITION REIMBURSEMENT SCHOLARSHIP, DOUBLE REGISTRATION SCHOLARSHIP, WELCOME BACK SCHOLARSHIP.; X X X X X X false false false false false false false true false MALCOLM DOUGLAS 163324 0 9857 0 414 0 17249 0 16252 0 207096 0 0 0 GREG KOZAK 140725 0 9313 0 430 0 14821 0 16252 0 181541 0 0 0 KATHY LECK 186949 0 11123 0 2286 0 19162 0 17268 0 236788 0 0 0 CHRIS MULTHAUF 188864 0 10749 0 804 0 17377 0 11949 0 229743 0 0 0 JOHN POPOLI 238141 0 27695 0 1188 0 24212 0 7616 0 298852 0 0 0 STASIA ZWISLER 119871 0 7360 0 258 0 12886 0 16252 0 156627 0 0 0 Non-fixed payments Schedule J, Part I, Line 7 THE PURPOSE OF THE LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S (LFGSM) MANAGEMENT INCENTIVE PLAN (MIP), IN KEEPING WITH THE MISSION OF THE SCHOOL, IS TO PROVIDE AN INCENTIVE TO CERTAIN EMPLOYEES WHOSE RESPONSIBILITY AND ACCOMPLISHMENTS DIRECTLY IMPACT THE SCHOOL'S ACHIEVEMENT OF ITS GOALS. THE MIP IS ONE COMPONENT OF LFGSM'S MANAGEMENT COMPENSATION PROGRAM. THE MIP RESTS ON THREE PRINCIPLES: * RECOGNIZE CONTRIBUTIONS MADE BY KEY MANAGEMENT STAFF ABOVE AND BEYOND NORMAL JOB EXPECTATIONS; * REWARD ACHIEVEMENT OF GOALS THAT ENHANCE THE VISION, PHILOSOPHY, AND VIABILITY OF LFGSM; AND * PROVIDE A MECHANISM TO ATTRACT AND RETAIN TOP QUALITY MANAGEMENT STAFF. REPRESENTATIVES OF THE BOARD OF DIRECTORS ARE RESPONSIBLE FOR DETERMINING AND APPROVING THE AMOUNT OF ANY BONUS PAYMENTS. Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b THE FORM 990 IS REVIEWED BY MEMBERS OF THE FINANCE AND AUDIT COMMITTEE BEFORE IT IS FILED. AT THE TIME OF THIS REVIEW OUR PROFESSIONAL TAX PREPARER GUIDES THE COMMITTEE THROUGH EACH SECTION OF THE FORM AND ANSWERS QUESTIONS THAT THE COMMITTEE MAY HAVE. A FINAL COPY IS PROVIDED TO ALL BOARD MEMBERS AFTER THE RETURN IS FILED WITH THE IRS. THE FINANCE AND AUDIT COMMITTEE IS MADE UP OF MEMBERS, ALL OF WHOM HAVE A FINANCIAL BACKGROUND, AND CAN UNDERSTAND AND CAN INTERPRET FINANCIAL STATEMENTS. Conflict of interest policy Form 990, Part VI, Section B, Line 12c ALL SITTING BOARD MEMBERS ARE REQUIRED ANNUALLY TO SIGN A CONFLICT OF INTEREST STATEMENT WHICH IS REVIEWED BY THE PRESIDENT. BOARD MEMBERS ARE REQUESTED TO COMPLETE 11 QUESTIONS THAT COVER VARIOUS POSSIBLE CONFLICTS OF INTEREST, INCLUDING THOSE REQUIRED TO BE DISCLOSED IN THE FORM 990. THIS PROCESS IS FACILITATED BY THE SCHOOL'S PROFESSIONAL TAX PREPARERS. ALL DISCLOSED CONFLICTS ARE REVIEWED BY MANAGEMENT AND ITS PROFESSIONAL TAX PREPARERS TO ENSURE AN APPROPRIATE RESPONSE ON THE FORM 990. AS A CONDITION OF HIRE, AND ANNUALLY THEREAFTER, ALL FULL-TIME AND PART-TIME EMPLOYEES ARE REQUIRED TO READ AND SIGN A CONFIDENTIALITY & CONFLICT OF INTEREST AGREEMENT. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE V.P. - HR, V.P. - CFO, AND ALL OTHER PARTIES INVOLVED WILL DISCUSS THE ISSUE AND WILL: A. DOCUMENT THE CONTROLS THAT WILL BE FOLLOWED TO ACHIEVE COMPLIANCE, OR B. TERMINATE THE ARRANGEMENT IF SUFFICIENT CONTROLS CANNOT BE PUT INTO PLACE TO ACHIEVE COMPLIANCE. THE SIGNED AGREEMENT WILL BE PLACED IN THE EMPLOYEE'S PERSONNEL FILE. EMPLOYEES WHO IMPROPERLY USE OR DISCLOSE CONFIDENTIAL BUSINESS INFORMATION OR WHO FAIL TO DISCLOSE A CONFLICT OF INTEREST FROM WHICH HE/SHE OR A MEMBER OF HIS/HER FAMILY AS DEFINED ABOVE COULD GAIN SUBSTANTIAL BENEFIT WILL BE SUBJECT TO CORRECTIVE ACTION, UP TO AND INCLUDING IMMEDIATE TERMINATION OF EMPLOYMENT, EVEN IF THEY DO NOT ACTUALLY BENEFIT FROM DISCLOSURE OF THE INFORMATION OR LACK OF DISCLOSURE OF A CONFLICT OF INTEREST. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a LAKE FOREST GRADUATE SCHOOL OF MANAGEMENT'S (LFGSM) COMPENSATION AND HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS REQUESTS AN EXTERNAL INDEPENDENT REVIEW OF COMPENSATION AND BENEFITS PROVIDED TO THE SCHOOLS "INTERESTED PERSONS" (DISQUALIFIED INDIVIDUALS) TO ASSIST THE COMMITTEE IN ITS ASSESSMENT OF THE REASONABLENESS OF THEIR COMPENSATION COMPARED TO MARKET DATA ASSEMBLED BY AN INDEPENDENT THIRD PARTY. THE INDEPENDENT THIRD PARTY'S PROCESSES FOR COLLECTING AND ASSEMBLING MARKET DATA IS CONSISTENT WITH THE REBUTTABLE PRESUMPTION CHECKLIST USED BY THE INTERNAL REVENUE SERVICE IN CONDUCTING COMPENSATION REVIEWS AS WELL AS CONTEMPORARY COMPENSATION PRACTICES. ALL MARKET DATA ARE ASSEMBLED FROM REPUTABLE, COMMERCIALLY-AVAILABLE SURVEYS, AS WELL AS PEER REVIEW FROM IRS FORM 990 SUBMISSIONS. THE STUDY REPORT PRESENTS AN OVERVIEW OF THE TOTAL CASH AND BENEFITS PROVIDED TO THE LEADERSHIP STAFF OF COMPARABLE NOT-FOR-PROFIT COLLEGES AND UNIVERSITIES, OTHER NON-PROFIT ORGANIZATIONS, HEALTHCARE ORGANIZATIONS, AND SIMILAR FOR-PROFIT ORGANIZATIONS. THE COMPARABILITY OF MULTIPLE SURVEY SOURCES FOLLOWS THE EXECUTIVE COMPENSATION PHILOSOPHY ADOPTED BY THE LFGSM BOARD IN 2003 AND REVISED IN 2004, 2009, 2010, AND 2011. THIS WIDER RANGE OF ORGANIZATIONS BETTER REFLECTS FROM WHERE LFGSM IS MOST LIKELY TO RECRUIT OR TO LOSE ITS SENIOR TALENT. THE PEER GROUP TO ESTABLISH COMPETITIVE COMPENSATION MARKET DATA FOR EXECUTIVE POSITIONS INCLUDES ORGANIZATIONS SIMILAR IN SIZE AND SCOPE TO LFGSM AND NOT FOCUSED ON MULTIPLE PEER SECTORS WITH DATA CUTS OF ORGANIZATIONS ROUGHLY THE SIZE OF LFGSM. THE METHODOLOGY OF THE STUDY IS DESCRIBED FOLLOWING THE OVERVIEW SECTION. THE MARKET ANALYSIS SECTION PRESENTS THE MARKET COMPARISON INFORMATION FOR BASE AND ACTUAL CASH COMPENSATION RECEIVED BY THE SEVEN INCUMBENT MANAGEMENT BOARD MEMBERS. THE REVIEW INCLUDES COMPARISONS TO THE MARKET'S 50TH PERCENTILE FOR BOTH BASE AND TOTAL COMPENSATION . THE BENEFIT ANALYSIS SECTION PRESENTS AN ANALYSIS OF THE BENEFITS AND PERQUISITES RECEIVED BY THE LFGSM MANAGEMENT BOARD. THE REPORT CONCLUDES WITH THE RECOMMENDATIONS SECTION. DATA IS COLLECTED FROM REPUTABLE, COMMERCIALLY AVAILABLE MARKET DATA. DATA IS COLLECTED AND FROM ORGANIZATIONS SIMILAR IN REVENUE AND NUMBER OF EMPLOYEES TO LFGSM. DATA IS GATHERED FROM THE ENTIRE U.S., AS THESE POSITIONS WOULD BE RECRUITED FROM A NATIONAL POOL OF APPLICANTS AND THEN INDEXED TO THE CHICAGO AREA TO BETTER REFLECT THE WAGE AND SALARY RATES FOR THE AREA. MARKET MATCHES ARE DETERMINED BY JOB RESPONSIBILITY, NOT JOB TITLE ALONE. SEVERAL EXECUTIVE STAFF MEMBERS HAVE DIVERSE RESPONSIBILITIES. IN THESE CASES THE DATA MAY BE BLENDED TO REFLECT THE ADDED BREADTH OF THEIR RESPONSIBILITIES. THIS PROCESS WAS LAST UNDERTAKEN DURING THE FIRST QUARTER OF 2011 AND IS PERFORMED TRIENNIALLY. THE NEXT PROJECTED YEAR THE PROCESS WILL BE UNDERTAKEN IN THE FIRST QUARTER OF 2014. THE FOLLOWING POSITIONS WERE INCLUDED IN THE 2011 STUDY: PRESIDENT AND CEO, EVP OF EDUCATIONAL PROGRAMS AND SERVICES, VP OF RESEARCH, DEVELOPMENT AND INNOVATION, VP OF MARKETING, ADMISSIONS, AND CORPORATE SALES, VP HR AND FUNDRAISING, VP INFORMATION TECHNOLOGY, AND VP OF FINANCE AND CFO. Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b NARRATIVE WAS COMBINED WITH LINE 15A NARRATIVE; SEE ABOVE RESPONSE. Governing documents, conflict of interest policy and financial statements available to the public Form 990, Part VI, Section C, Line 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. COMPENSATION PAID TO OFFICERS, DIRECTORS, KEY EMPLOYEES, ETC FORM 990, PART VII, SECTION A COMPENSATION PAID TO BOARD MEMBERS IS PROVIDED IN EXCHANGE FOR SERVICES AS FACULTY MEMBERS. THESE PERSONS ARE NOT COMPENSATED IN THEIR POSITION AS BOARD MEMBERS.