2014-05-14T15:10:32-05:00 2013-06-30 135381590 BDO USA LLP 7101 WISCONSIN AVE SUITE 800 BETHESDA MD 208144827 990 2012-07-01 546046419 UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION UNIV 4349244879 PO BOX 7263 CHARLOTTESVILLE VA 22906 LAURA B TERRY 4349244879 2014-05-14 1 JOYCE M UNDERWOOD P00022361 3016544900 2012 2015-11-30 17:44:51Z LOCKE W OGENS PO BOX 7263 CHARLOTTESVILLE VA 22906 99145654 0 X WWW.DARDEN.VIRGINIA.EDU X 1952 VA THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION'S PRIMARY PURPOSE IS TO PROMOTE THE ADVANCEMENT AND FURTHER THE AIMS AND PURPOSES OF THE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION OF THE UNIVERSITY OF VIRGINIA. 49 42 214 49 1308910 -89866 22854685 13313278 24062253 23061515 7182086 7443027 330850 6546364 54429874 50364184 14914732 14206210 0 0 11397200 11484121 0 0 2516462 16077321 14746066 42389253 40436397 12040621 9927787 346497572 358942878 47393037 27777163 299104535 331165715 X THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION'S PRIMARY PURPOSE IS TO PROMOTE THE ADVANCEMENT AND FURTHER THE AIMS AND PURPOSES OF THE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION OF THE UNIVERSITY OF VIRGINIA. THE FOUNDATION MANAGES ENDOWMENT FUNDS FOR THE EXCLUSIVE BENEFIT OF THE DARDEN SCHOOL, OPERATES THE SCHOOL'S TOP-RANKED EXECUTIVE EDUCATION PROGRAM AND PROMOTES PHILANTHROPIC SUPPORT BY ALUMNI, FRIENDS, AND CORPORATIONS. 0 0 34860110 14206210 23382879 THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION'S PRIMARY PURPOSE IS TO PROMOTE THE ADVANCEMENT AND FURTHER THE AIMS AND PURPOSES OF THE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION OF THE UNIVERSITY OF VIRGINIA. TO ACHIEVE THIS PURPOSE, THE FOUNDATION MANAGES ENDOWMENT FUNDS FOR THE EXCLUSIVE BENEFIT OF THE DARDEN SCHOOL, OPERATES THE SCHOOL'S TOP-RANKED EXECUTIVE EDUCATION PROGRAM, AND PROMOTES PHILANTHROPIC SUPPORT OF THE SCHOOL BY ALUMNI, FRIENDS, AND CORPORATIONS. FUNDS PROVIDED ANNUALLY TO THE SCHOOL BY THE FOUNDATION CONTRIBUTE TO ALL PHASES OF LIFE AT DARDEN. 34860110 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 0 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 1 272 0 1 214 1 1 1 0 0 0 0 0 0 0 0 0 X 49 42 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 1 0 AL AK AR CA CT FL GA IL KS KY ME MD MA MI MN MS NJ NH NM NY NC ND OK OR PA RI SC TN UT WV WI X LAURA B TERRY 4349244879 100 DARDEN BLVD CHARLOTTESVILLE VA 22903 THOMAS J BALTIMORE JR 1.00 X 0 0 0 WL LYONS BROWN 1.00 X 0 0 0 ROBERT F BRUNER 1.00 50.00 X 0 529372 75895 SUSAN CHAPLINSKY 1.00 50.00 X 5000 287611 34055 G DAVID CHEEK 1.00 X 0 0 0 JAMES SU-TING CHENG 1.00 X 0 0 0 VIDYANIDHI N DALMIA 1.00 X 0 0 0 MICHAEL A DECOLA 1.00 X 0 0 0 KENNETH M EADES 1.00 50.00 X 36300 288605 37890 KAREN K EDWARDS 1.00 X 0 0 0 LOUIS G ELSON 1.00 X 0 0 0 JOHN M FARRELL JR 1.00 X 0 0 0 JENNIFER MCENERY FINN 1.00 X 0 0 0 JOHN D FOWLER 1.00 X 0 0 0 CATHERINE J FRIEDMAN 1.00 X 0 0 0 DONALD W GOODMAN 1.00 X 0 0 0 KIRSTI A GOODWIN 1.00 X 0 0 0 GORDON GRAND III 1.00 X 0 0 0 EDWIN B HOOPER III 1.00 X 0 0 0 ROBERT J HUGIN 1.00 X 0 0 0 MARTINA T HUND-MEJEAN 1.00 X 0 0 0 WILLIAM I HUYETT 1.00 X 0 0 0 LEMUEL E LEWIS 1.00 X 0 0 0 LUANN J LYNCH 1.00 50.00 X 40320 288415 47150 JOHN G MACFARLANE III 1.00 X 0 0 0 CAROLYN S MILES 1.00 X 0 0 0 DOUGLAS T MOORE 1.00 X 0 0 0 MARSHALL N MORTON 1.00 X 0 0 0 MICHAEL O'NEILL 1.00 X 0 0 0 RICHARD M PASCHAL 1.00 X 0 0 0 LEWIS F PAYNE 1.00 X 0 0 0 ZHIYUAN PENG 1.00 X 0 0 0 SCOTT A PRICE 1.00 X 0 0 0 HARRY T REIN 1.00 X 0 0 0 GARY ROUGHEAD 1.00 X 0 0 0 FRANK M SANDS SR 1.00 X 0 0 0 FRANK M SANDS JR 1.00 X 0 0 0 BRYAN H SIMMS 1.00 X 0 0 0 JOHN D SIMON 1.00 50.00 X 0 454518 148027 HENRY F SKELSEY 1.00 X 0 0 0 SUSAN SOBBOTT 1.00 X 0 0 0 JOHN R STRANGFELD JR 1.00 X 0 0 0 MICHAEL STRINE 1.00 50.00 X 0 1158060 90714 TERESA A SULLIVAN 1.00 50.00 X 0 633343 441381 GEORGE S TAHIJA 1.00 X 0 0 0 WILLIAM P UTT 1.00 X 0 0 0 THOMAS R WATJEN 1.00 X 0 0 0 ROGER L WERNER JR 1.00 X 0 0 0 ELIZABETH K WEYMOUTH 1.00 X 0 0 0 VANESSA A WITTMAN 1.00 X 0 0 0 PHILIP W KNISELY 5.00 X X 0 0 0 JAMES A COOPER 5.00 X X 0 0 0 NORWOOD H DAVIS III 50.00 X X 451621 0 68932 ERIKA H JAMES 1.00 50.00 X 115950 244187 26822 EUGENE R MEONI 50.00 X 197639 0 39056 LAURA B TERRY 50.00 X 200107 0 38608 MICHAEL J WOODFOLK 50.00 X 187036 0 24875 WILLIAM CARTER HOERR 50.00 X 224753 0 12447 LEANN M BUNTROCK 50.00 X 176965 0 26337 LUCIANO CENTINI 50.00 X 237113 0 33908 THOMAS A CROSS 50.00 X 206645 0 29105 DEAN W KREHMEYER 50.00 X 226750 0 36460 CONSTANCE D ENGLISH 50.00 X 146600 0 32061 DAVID L NEWKIRK 50.00 X 159708 0 2457 KATHERINE S SCHIEFFELIN 50.00 X 167476 0 9793 2779983 3884111 1255973 23 1 1 0 UNIV OF VA INVESTMENT MANAGEMENT COMPAN PO BOX 400215 CHARLOTTESVILLE VA 22906 INVESTMENT MANAGEMENT 461271 CLEARVIEW CONSULTING COMPANY 117 PILGRIM DR HOLDEN MA 01520 TEACHING & CONSULTING SERVICES 356352 HORNIMAN ALEXANDER B 1344 HILLTOP ROAD CHARLOTTESVILLE VA 22903 TEACHING SERVICES 217753 ALLISON PARTNERS LLC 1716-2 ALLIED STREET CHARLOTTESVILLE VA 22903 TEACHING SERVICES 190400 LIEDTKA JEANNE M 320 11TH ST NW CHARLOTTESVILLE VA 22903 TEACHING SERVICES 158550 13 X 13313278 2216008 13313278 EXECUTIVE EDUCATION 721110 23061515 21770105 1291410 23061515 875580 875580 55348917 48781470 6567447 6567447 6567447 EXTINGUISHMENT OF NOTE 900099 6225000 6225000 ALUM RELATIONS REUNION 900099 149435 149435 PARKING REVENUE 900099 100296 100296 71633 54133 17500 6546364 50364184 22073969 1308910 13668027 X 14206210 14206210 2005331 912895 812301 280135 83379 2706 80673 7143869 5480642 731768 931459 621646 479473 82359 59814 1090408 861423 96331 132654 539488 405107 65787 68594 13289 763 12526 157691 157691 557535 557535 4944386 4732121 185832 26433 694408 660653 487 33268 2269260 2015420 78134 175706 202632 102119 99575 938 2088147 1903101 69002 116044 1740486 1461982 36297 242207 134792 98159 7151 29482 82920 69773 13147 93429 61839 31590 COGS 1277314 1277314 BAD DEBT EXPENSE 382476 68718 313758 USE/FOREIGN TAX 22271 22271 85030 37421 22312 25297 40436397 34860110 3059825 2516462 72630 93350 12079192 6697750 16854423 16030256 4176850 6083337 77460 81921 888177 515500 6223578 3571984 1367663 2651594 34292320 29452441 207613526 230547509 69075331 66789220 346497572 358942878 3239870 3923357 1664867 2121868 42488300 21731938 47393037 27777163 X 80698789 91008297 89129572 108790522 129276174 131366896 299104535 331165715 346497572 358942878 9927787 22133393 0 X X 0 1 X 1 0 X X X 0 0 0 UVA COLGATE DARDEN GRADUATE SCHOOL OF BUSINESS ADMINISTRATION 546001796 6 1 1 1 14206210 1 14206210 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 241115507 6384317 28836732 22677416 840000 252819140 232372468 10728057 10331210 11543387 772841 241115507 192879265 9853444 42691784 12363368 688657 232372468 179999314 1996667 24406482 12907927 615271 192879265 247456999 2860188 -56990302 12674835 652736 179999314 0.11450 0.51960 0.36590 0 0 4604614 2245923 2358691 794951 593057 201894 824013 733004 91009 2651594 UVIMCO MANAGED FUNDS-UVA RELATED FOUNDATION 230547509 F 230547509 OTHER ASSETS 769759 RIGHTS OF OCCUPANCY 66019461 66789220 FUNDS HELD FOR THE DARDEN SCHOOL AND BRICE 781649 NOTES PAYABLE TO UVA 20950289 21731938 X 71943042 22133393 3000 22136393 49806649 557535 557535 50364184 39881862 3000 3000 39878862 557535 557535 40436397 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE FOUNDATION'S ENDOWMENT SUPPORTS THE DARDEN SCHOOL THROUGH SCHOLARSHIPS, CHAIRS, RESEARCH, EDUCATIONAL PROGRAMS, AND ALUMNI SERVICES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE FOUNDATION FOLLOWS THE PROVISIONS OF FASB ASC TOPIC 740-10, INCOME TAXES. MANAGEMENT BELIEVES IT HAS NO MATERIAL UNCERTAIN TAX POSITIONS OR ANY RELATED PENALTIES AND INTEREST TO ACCRUE FOR THE YEARS ENDED JUNE 30, 2013 AND 2012, AND, ACCORDINGLY, THERE IS NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS. THE FOUNDATION FILES IRS FORM 990 ANNUALLY WITH THE FEDERAL GOVERNMENT AND IS STILL OPEN TO EXAMINATION BY TAXING AUTHORITIES FOR FISCAL YEAR 2010 AND LATER. EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES EXECUTIVE EDUCATION PROGRAMMING 60474 SOUTH AMERICA 0 0 PROGRAM SERVICES EXECUTIVE EDUCATION PROGRAMMING 38586 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICES EXECUTIVE EDUCATION PROGRAMMING 27159 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES EXECUTIVE EDUCATION PROGRAMMING 7462 0 0 0 0 0 0 133681 0 133681 0 0 0 0 0 0 1 UVA- DARDEN SCHOOL OF BUSINESS ADMINISTRATION PO BOX 6550 CHARLOTTESVILLE VA 22906 546001796 501(C)(3) 14206210 SCHOLARSHIPS, CHAIRS, RESEARCH, FACILITIES, & EDUCATIONAL PROGRAMS 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: FOUNDATION ACCOUNTING OFFICE REQUESTS AND REVIEWS DOCUMENTATION SUBSTANTIATING ALL FUNDS REQUESTED BY THE DARDEN SCHOOL. FOR FUNDS RESTRICTED BY DONORS, THE FOUNDATION ACCOUNTING OFFICE REQUESTS ADEQUATE DOCUMENTATION FOR AND REVIEWS THE SUPPORTING DOCUMENTS TO ENSURE COMPLIANCE WITH THE DONOR'S RESTRICTED PURPOSE PRIOR TO RELEASING FUNDS TO THE DARDEN SCHOOL. X 1 1 X X X X X 1 1 0 0 0 0 0 0 0 ROBERT F BRUNER 0 513805 0 15567 0 0 0 57931 0 17964 0 605267 0 0 SUSAN CHAPLINSKY 5000 287431 0 0 0 180 0 24602 0 9453 5000 321666 0 0 KENNETH M EADES 36300 287477 0 0 0 1128 0 24676 0 13214 36300 326495 0 0 LUANN J LYNCH 40320 279888 0 6930 0 1597 0 24504 0 22646 40320 335565 0 0 JOHN D SIMON 0 390772 0 61850 0 1896 0 125635 0 22392 0 602545 0 0 MICHAEL STRINE 0 310313 0 847308 0 439 0 85345 0 5369 0 1248774 0 0 TERESA A SULLIVAN 0 498898 0 134445 0 0 0 436140 0 5241 0 1074724 0 0 NORWOOD H DAVIS III 296096 0 155345 0 180 0 47060 0 21872 0 520553 0 0 0 ERIKA H JAMES 115950 236685 0 7200 0 302 0 19173 0 7649 115950 271009 0 0 EUGENE R MEONI 152723 0 44400 0 516 0 16682 0 22374 0 236695 0 0 0 LAURA B TERRY 181499 0 18500 0 108 0 19320 0 19288 0 238715 0 0 0 MICHAEL J WOODFOLK 164573 0 22283 0 180 0 17247 0 7628 0 211911 0 0 0 WILLIAM CARTER HOERR 169367 0 55000 0 386 0 0 0 12447 0 237200 0 0 0 LEANN M BUNTROCK 171491 0 5198 0 276 0 18018 0 8319 0 203302 0 0 0 LUCIANO CENTINI 232577 0 4020 0 516 0 13936 0 19972 0 271021 0 0 0 THOMAS A CROSS 201513 0 3608 0 1524 0 12508 0 16597 0 235750 0 0 0 DEAN W KREHMEYER 171380 0 55250 0 120 0 18200 0 18260 0 263210 0 0 0 CONSTANCE D ENGLISH 142340 0 4080 0 180 0 14144 0 17917 0 178661 0 0 0 DAVID L NEWKIRK 24442 0 0 0 135266 0 757 0 1700 0 162165 0 0 0 KATHERINE S SCHIEFFELIN 54558 0 0 0 112918 0 5803 0 3990 0 177269 0 0 0 PART I, LINE 1A THROUGH THE FOUNDATION'S STANDARD BENEFITS PACKAGE, THE FOUNDATION WILL SUBSIDIZE ANNUALLY $185 OF THE COST OF MEMBERSHIP TO THE UVA GYM FOR ANY BENEFITS-ELIGIBLE EMPLOYEE. PART I, LINES 4A-B THE FOUNDATION MADE SEVERENCE PAYMENTS TO TWO FORMER OFFICERS IN ACCORDANCE WITH THE FOUNDATION'S ESTABLISHED PROCEDURES: 1. DAVID L. NEWKIRK - $135,200 2. KATHERINE SCHIEFFELIN - $102,540 LINE 4B: THE UNIVERSITY OF VIRGINIA MADE CONTRIBUTIONS TO 401A/415 DEFERRRED COMPENSATION PLANS FOR THE FOLLOWING PERSONS: ROBERT F. BRUNER - $3,966 JOHN SIMON - $45,000 MICHAEL STRINE - $30,000 TERESA SULLIVAN - $205,220 JOHN MACFARLANE SEE PART V 481790 SEE PART V 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: COLUMN (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER IN COMMONCOLUMN (D) DESCRIPTION OF TRANSACTION: UVIMCO INVESTMENT MANAGEMENT FEE - JOHN MACFARLANE WAS A TRUSTEE OF THE UVA DARDEN SCHOOL FOUNDATION ("DSF") AND A TRUSTEE/MEMBER OF THE EXECUTIVE COMMITTEE FOR UVIMCO IN FY 2013. MR. MACFARLANE SERVED AS UVIMCO'S CHAIRMAN. DSF PAID INVESTMENT MANAGEMENT FEES OF $481,790 TO UVIMCO IN FY 2013. THIS FEE, WHICH HAS BEEN APPROVED BY THE DSF INVESTMENT COMMITTEE, IS ASSESSED BASED ON ASSETS UNDER MANAGEMENT AND IS CALCULATED USING THE SAME FEE SCHEDULE THAT IS OFFERED TO ALL OF UVIMCO'S CUSTOMERS. X 113 2180907 FMV X GIFTS IN KIND 7 35101 ACTUAL EXP INCURRED 0 1 0 FORM 990, PART VI, SECTION A, LINE 1 THE AUTHORITY OR DELEGATION OF THE BOARD OF TRUSTEES IS AS FOLLOWS: THE EXECUTIVE COMMITTEE EXERCISES THE AUTHORITY OF THE BOARD OF TRUSTEES IN DIRECTING THE MANAGEMENT OF THE BUSINESS AND AFFAIRS OF THE FOUNDATION, EXCEPT THAT NO COMMITTEE HAS THE POWER OR AUTHORITY TO I) FILL VACANCIES ON THE BOARD OR ON ANY OF ITS COMMITTEES; II) AMEND THE ARTICLES OF INCORPORATION; III) ADOPT, AMEND, OR REPEAL THE BY-LAWS; IV) APPROVE A PLAN OF MERGER OR CONSOLIDATION; V) APPROVE THE SALE, LEASE OR EXCHANGE, OR THE MORTGAGE, PLEDGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE FOUNDATION; OR VI) APPROVE THE REVOCATION OF THE VOLUNTARY DISSOLUTION PROCEEDINGS. THE EXECUTIVE COMMITTEE MUST PROVIDE A FULL REPORT OF ITS ACTIONS TO THE BOARD OF TRUSTEES AT THE REGULAR SEMI-ANNUAL BOARD MEETINGS. FORM 990, PART VI, SECTION A, LINE 2 FRANK M. SANDS, SR. AND FRANK M. SANDS, JR. HAVE BUSINESS & FAMILY RELATIONSHIPS. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION AMENDED ITS BYLAWS AS FOLLOWS: A.SECTION 2(A)II, RESOLVED, THAT THE CHAIR AND VICE CHAIR OF THE GLOBAL ADVISORY COUNCIL WILL BE ELECTED TO SERVE AS EX-OFFICIO TRUSTEES OF THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION EFFECTIVE 25 APRIL 2013. B. SECTION 3.2, PARAGRAPH 2, RESOLVED, THAT THE SELECTION FOR THE POSITION OF VICE CHAIR OF THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION WILL BE MADE BY THE NOMINATING AND GOVERNANCE COMMITTEE, REVIEWED BY THE EXECUTIVE COMMITTEE AND ELECTED BY A VOTE OF THE BOARD OF TRUSTEES, EFFECTIVE 25 APRIL 2013. C. SECTION 4.7 (G), RESOLVED, THAT THE COMMITTEE STRUCTURE OF THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION WILL REFLECT SPECIFIC PARAMETERS REGARDING THE POSITIONS OF CHAIRS AND VICE CHAIRS, EFFECTIVE 25 APRIL 2013. D. ARTICLE III, SECTIONS 3.1 AND 3.10, RESOLVED, THAT THE OFFICERS OF THE UNIVERSITY OF VIRGINIA DARDEN SCHOOL FOUNDATION HAVE BEEN REVISED TO REFLECT THE CURRENT TITLE OF "EXECUTIVE DIRECTOR", INSTEAD OF THE PREVIOUSLY USED TITLE OF "VICE PRESIDENT" EFFECTIVE 25 APRIL 2013. E. AS OF 11 OCTOBER, 2012, IT WAS RESOLVED, THAT THE FOUNDATION'S BYLAWS BE AMENDED BY DELETING ARTICLE IV, SECTION 4.4 ENTITLED "NOMINATING COMMITTEE" AND SUBSTITUTING, IN LIEU THEREOF, THE FOLLOWING: SECTION 4.4. NOMINATING AND GOVERNANCE COMMITTEE. THE NOMINATING AND GOVERNANCE COMMITTEE SHALL PROVIDE ASSISTANCE TO THE BOARD OF TRUSTEES IN FULFILLING ITS RESPONSIBILITIES FOR (I) MAKING NOMINATIONS AND APPOINTMENTS, AND (II) DEVELOPING AND IMPLEMENTING CORPORATE GOVERNANCE PRINCIPLES APPLICABLE TO DSF. THE NOMINATING AND GOVERNANCE COMMITTEE SHALL REVIEW AND RECOMMEND TO THE BOARD OF TRUSTEES NOMINEES TO BE ELECTED AS MEMBERS OF THE BOARD OF TRUSTEES OF DSF. THE COMMITTEE SHALL ALSO REVIEW AND RECOMMEND TO THE BOARD OF TRUSTEES NOMINEES TO BE ELECTED AS OFFICERS OF DSF, CHAIRS OF DSF COMMITTEES AND MEMBERS OF THE COMMITTEES OF THE BOARD OF TRUSTEES. THE COMMITTEE SHALL ASSESS THE PARTICIPATION AND QUALIFICATIONS OF EXISTING TRUSTEES AND REVIEW CORPORATE GOVERNANCE STANDARDS FOR DSF. THE COMMITTEE SHALL ALSO ADVISE THE CHAIRMAN REGARDING THE BOARD'S PRODUCTIVITY AND IMPACT WITH REGARD TO THE DARDEN SCHOOL MISSION. THIS WILL INCLUDE CONDUCTING A REVIEW OF BOARD OPERATIONS RELATIVE TO BEST PRACTICES AT LEAST EVERY THREE YEARS. FORM 990, PART VI, SECTION B, LINE 11 AFTER INTERNAL REVIEW, THE CFO PROVIDED THE 990 TO THE AUDIT/FINANCE COMMITTEE CHAIR AND THE CFO ADDRESSED QUESTIONS FROM THE AUDIT/FINANCE COMMITTEE CHAIR. ELECTRONIC COPIES OF THE 990 ARE PROVIDED TO THE FULL BOARD IN ADVANCE OF FILING. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE FOUNDATION DISTRIBUTES A COPY OF THE CONFLICT OF INTEREST POLICY, POLICY ON UNIVERSITY OF VIRGINIA RELATED FOUNDATIONS, AND A CONFLICT OF INTEREST FORM TO THE FOUNDATION'S TRUSTEES, OFFICERS, AND KEY EMPLOYEES. THE INDIVIDUALS ARE REQUIRED TO DISCLOSE ACTIVITY FOR THE NEXT YEAR AND VERIFY THE ACTIVITY IN THE PRIOR YEAR. FORM 990, PART VI, SECTION B, LINE 15 DSF OFFERS AN INCENTIVE COMPENSATION PROGRAM TO ITS OFFICERS. EACH OFFICER'S PLAN IS RECOMMENDED BY THE OFFICER'S SUPERIOR AND REQUIRES THAT THE OFFICER MEET BOTH QUALITATIVE AND QUANTITATIVE METRICS WITHIN THE OFFICER'S SPECIFIC AREA(S) OF RESPONSIBILITY. EACH PLAN IS REVIEWED AND DISCUSSED WITH DSF'S COMPENSATION CONSULTANT AND ASSESSED BY THE CONSULTANT FOR APPROPRIATENESS BASED UPON EXTERNAL MARKET DATA. FINALLY, THE INCENTIVE PLAN RECOMMENDATIONS ALONG WITH MARKET DATA FROM THE COMPENSATION CONSULTANT ARE PROPOSED TO DSF'S TRUSTEE COMPENSATION COMMITTEE PRIOR TO THE BEGINNING OF THE PLAN YEAR AND APPROVED BY THE COMMITTEE IN ACCORDANCE WITH THE IRS REBUTTABLE PRESUMPTION OF REASONABLENESS STANDARDS. AFTER THE CONCLUSION OF THE PLAN YEAR, THE COMPENSATION COMMITTEE REVIEWS AND APPROVES ANY PAYOUTS UNDER THE INCENTIVE PLANS IN ADVANCE OF PAYMENTS BEING MADE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. DID ORGANIZATION HAVE A WRITTEN DOCUMENT RETENTION AND DESCRUCTION POLICY: PART VI, SECTION B, LINE 14 THE ACCOUNTING UNIT HAS A WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY. EXTINGUISMENT OF NOTE PAYABLE: FORM 990, PART VIII, LINE 11A - MISCELLANEOUS REVENUE IN 1993, THE FOUNDATION ENTERED INTO AN AGREEMENT WITH THE UNIVERSITY TO PAY FOR ALL COSTS OF THE CONSTRUCTION OF NEW DARDEN SCHOOL FACILITIES ON CERTAIN LAND ADJACENT TO SPONSORS HALL COMPLEX. AS A RESULT OF THE AGREEMENT, THE FOUNDATION WAS REQUIRED TO REIMBURSE THE UNIVERSITY $40 MILLION IN BONDS ISSUED FOR THE CONSTRUCTION OF PHASE I. EFFECTIVE NOVEMBER 2012, AN AMENDMENT PROVIDED THE FOUNDATION WITH AN OPTION TO PAY TO THE UNIVERSITY ON JANUARY 31, 2013, OR WITHIN SEVEN DAYS PRIOR TO, THE SUM OF $11,250,000 TO RELIEVE THE FOUNDATION OF ANY REMAINING OBLIGATION UNDER THE PHASE I AGREEMENT. THE FOUNDATION ACCEPTED THE AMENDED AGREEMENT AND ON JANUARY 31, 2013, EFFECTED A FULL REPAYMENT RESULTING IN THE EXTINGUISHMENT OF ALL PHASE I RELATED DEBT WITH A GAIN OF $6,225,000 RECOGNIZED IN THE FY JUNE 30, 2013. OTHER FEES FORM 990, PART IX, LINE 11G TEACHING FEES - EXECUTIVE EDUCATION: PROGRAM SERVICE EXPENSES 4,214,432. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,214,432. TEMPORARY STAFFING SERVICE: PROGRAM SERVICE EXPENSES 368,928. MANAGEMENT AND GENERAL EXPENSES 131,664. FUNDRAISING EXPENSES 7,387. TOTAL EXPENSES 507,979. PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 93,168. MANAGEMENT AND GENERAL EXPENSES 54,168. FUNDRAISING EXPENSES 19,046. TOTAL EXPENSES 166,382. COMMISSIONS EXPENSE: PROGRAM SERVICE EXPENSES 30,510. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 30,510. OTHER FEES: PROGRAM SERVICE EXPENSES 25,083. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 25,083. OVERSIGHT OF AUDIT: FORM 990, PART XII, LINE 2C THERE HAVE BEEN NO CHANGES DURING THE YEAR IN THE PROCESS FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS. UNIVERSITY OF VIRGINIA DARDEN SCHOOL OF BUSINESS PO BOX 6550 CHARLOTTESVILLE VA 22906 546001796 EDUCATION VA 501(C)(3) 170(B)(1) (A)(II) N/A 0 0 1 0 1 1 0 0 0 0 1 1 1 1 1 1 1 0 0 0 LOAN GUARANTEES BY OTHER ORGANIZATIONS: FORM 990, SCH R, PART V, LINE 1E UVA HAS PROVIDED THE DARDEN SCHOOL FOUNDATION WITH A GUARANTEE FOR A LOAN PROGRAM THE FOUNDATION HAD ENTERED INTO WITH THREE INDEPENDENT THIRD PARTIES, WHICH GUARANTEES LOANS FOR INTERNATIONAL STUDENTS. THE INTERNATIONAL STUDENT LOAN PROGRAM SUPPORTS THE DARDEN SCHOOL'S OBJECTIVES OF ATTRACTING INTERNATIONAL STUDENTS.