2014-08-14T10:56:46-05:00 2013-09-30 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2012-10-01 330435954 THE SCRIPPS RESEARCH INSTITUTE SCRI 8587841000 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 DONNA WESTON 8587841000 2014-08-14 1 DIANA J MCCUTCHEN P00545657 6192326500 2012 2015-11-30 17:44:51Z MICHAEL MARLETTA PHD 10550 NORTH TORREY PINES ROAD LA JOLLA CA 92037 421996322 0 X WWW.SCRIPPS.EDU X 1924 CA TSRI CONDUCTS BIOMEDICAL AND BIOCHEMICAL RESEARCH AND POSTGRADUATE TRAINING PROGRAMS. 22 21 2846 45 -576003 -624257 375025082 334268986 5315745 4768760 15493331 18149216 22410634 8660622 418244792 365847584 6690799 6890395 0 0 202806421 171810363 135151 174309 2928391 200198805 200090850 409831176 378965917 8413616 -13118333 913484033 883112215 185939234 155638584 727544799 727473631 X THE SCRIPPS RESEARCH INSTITUTE ("TSRI") PERFORMS HIGH IMPACT BASIC BIOMEDICAL RESEARCH, IMPROVES THE HUMAN CONDITION BY FOSTERING TRANSLATION OF ITS DISCOVERIES INTO USEFUL PRODUCTS AND ENGAGES IN THE HIGHEST QUALITY GRADUATE SCIENTIFIC EDUCATION AND POST GRADUATE SCIENTIFIC TRAINING. TSRI IS KNOWN FOR ITS ENTREPRENEURIAL ENVIRONMENT AND ITS EMPHASIS IN RESEARCH RELATING TO SYNTHETIC CHEMISTRY, THE RELATIONSHIP BETWEEN MOLECULAR STRUCTURE AND ACTIVITY AND CHEMICAL BIOLOGY. 0 0 334994557 4768760 RESEARCH IS CONDUCTED IN LA JOLLA, CALIFORNIA AND JUPITER, FLORIDA WITH GRANTS, CONTRACTS AND FELLOWSHIPS THAT ARE RECEIVED FROM PUBLIC AND PRIVATE INSTITUTIONS AND INDIVIDUALS. THESE AWARDS FUND BIOMEDICAL RESEARCH AND THE DEVELOPMENT OF ANSWERS TO FUNDAMENTAL AND IMPORTANT QUESTIONS. WE BELIEVE THAT THE PURSUIT OF BASIC KNOWLEDGE IN CHEMISTRY AND BIOLOGY WILL INEVITABLY LEAD TO BENEFICIAL RESULTS APPLICABLE TO THE HUMAN CONDITION AND TREATMENT OF DISEASE. 22553185 6890395 TSRI RECOGNIZES THAT A ROBUST EDUCATION PROGRAM IS KEY TO THE SUCCESS OF ITS LABORATORY-BASED INVESTIGATIONS, AND OFFERS BOTH GRADUATE AND POST-GRADUATE EDUCATION PROGRAMS. POST-DOCTORAL EDUCATION PROGRAMS INCLUDE FELLOWSHIPS FOR FOCUSED AND SUPERVISED TRAINING ON PROBLEMS THAT WILL BECOME CENTRAL TO SUBSEQUENT INVESTIGATIONS AS THESE YOUNG SCIENTISTS BEGIN THEIR SCIENTIFIC CAREERS. TSRI'S GRADUATE PROGRAM SEEKS TO CREATE AN INDIVIDUALIZED CURRICULUM FOR STUDENTS STUDYING AT THE INTERFACE OF BIOLOGY AND CHEMISTRY - AREAS OF SCIENTIFIC INQUIRY FOR WHICH THE SCRIPPS RESEARCH INSTITUTE HAS EARNED ITS REPUTATION FOR EXCELLENCE. COURSES CAN BE CHOSEN FOR EITHER FOCUSED OR INTERDISCIPLINARY STUDIES. OPPORTUNITIES TO CRAFT A RESEARCH PROJECT AND AREA OF STUDY THAT ENCOMPASSES SEVERAL LABORATORIES OUTSIDE OF THE STUDENT'S MENTOR ARE NOT ONLY AVAILABLE BUT ENCOURAGED. ACCOMMODATIONS ARE MADE TO SUIT THE STUDENT'S SENSIBILITIES AND OBSTACLES ARE ROUTINELY OVERCOME TO KEEP THE BEST INTERESTS OF THE STUDENTS AT THE FOREFRONT OF THE PROGRAM. 357547742 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 1 1 0 1 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 243 0 1 2846 1 1 1 0 0 0 0 0 0 0 0 0 0 X 22 21 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA CT FL MD NJ NY PA X DONNA WESTON 8587848300 3301 NORTH TORREY PINES COURT LA JOLLA CA 92037 X MICHAEL A MARLETTA 40.00 X X 813347 0 62994 MARSHALL M CRISER III 1.00 X 0 0 0 JOHN DAVIS 1.00 X 0 0 0 THOMAS E DEWEY JR 1.00 X 0 0 0 ALEXANDER W DREYFOOS 1.00 X 0 0 0 RICHARD J ELKUS JR 1.00 X 0 0 0 PETER C FARRELL PHD DSC 1.00 X 0 0 0 DENNIS M FENTON PHD 1.00 X 0 0 0 MARJORIE FINK 1.00 X 0 0 0 RICHARD A GEPHARDT 1.00 X 0 0 0 THOMAS H INSLEY 1.00 X 0 0 0 AMIN KHOURY 1.00 X 0 0 0 JAMES E LABELLE MD 1.00 X 0 0 0 CLAUDIA S LUTTRELL 1.00 X 0 0 0 ALAN C MENDELSON 1.00 X 0 0 0 WILLIAM H MOLLOIE 1.00 X 0 0 0 MARK PEARSON 1.00 X 0 0 0 BERNARD SAINT-DONAT 1.00 X 0 0 0 LYNN SCHENK 1.00 X 0 0 0 MARK S SKAGGS 1.00 X 0 0 0 RICHARD SLOANE 1.00 X 0 0 0 HORACIO VALEIRAS 1.00 X 0 0 0 DOUGLAS BINGHAM 40.00 X 576008 0 67448 DONNA WESTON 40.00 X 368990 0 61816 THOMAS NORTHRUP 40.00 X 256160 0 53252 PETER VOGT 40.00 X 315926 0 62255 CARY THOMAS 40.00 X 361450 0 65910 KAYE WYNNE 40.00 X 291316 0 63872 RICHARD A LERNER 40.00 X 614702 0 62652 GERALD F JOYCE 40.00 X 418462 0 67125 JULIUS REBEK JR 40.00 X 416293 0 72954 GERALD M EDELMAN 40.00 X 426550 0 68179 WILLIAM R ROUSH 40.00 X 415953 0 64673 5275157 0 773130 289 0 1 0 OLSON & CEPURITIS LTD 20 NORTH WACKER DRIVE 36TH FLOOR CHICAGO IL 60606 LAWYER 1041829 QUINE INTELLECTUAL 2033 CLEMENT AVENUE ALEMEDA CA 94501 LAWYER 740131 KOA HILLS CONSULTING 64-5274 PUU WANEA ST KAMUELA HI 96743 CONSULTANTS 537735 DELOITTE & TOUCHE LLP 655 W BROADWAY SUITE 700 SAN DIEGO CA 921018590 AUDIT & TAX 423891 SCHWEGMAN LUNDBERG WOESSNER PA 1600 TCF TOWER 121 S 8TH ST MINNEAPOLIS MN 55402 LAWYER 379163 15 429440 253765150 80074396 2233919 334268986 PATENT OFFICE 900099 4768760 4768760 4768760 10044602 10044602 7315958 7315958 666844 581672 85172 85172 85172 54374982 9214368 53183235 2301501 1191747 6912867 8104614 8104614 82330 429440 82330 0 SHARED SERVICES 900099 1351838 1351838 LIBRARY SERVICES - SCRIPPS HEALTH 900099 483657 483657 K-1 INCOME 531390 -576003 -576003 1259492 365847584 4768760 -576003 27385841 X 6510000 6510000 380395 380395 3154679 832056 2322623 141996803 135177498 5402850 1416455 9253911 8642585 536168 75158 8217653 7809384 303368 104901 9187317 8431724 637592 118001 12815 126 12689 174309 174309 57006766 50435933 5899771 671062 59050259 58613208 365874 71177 25388739 24052637 1241306 94796 3519913 3367230 54742 97941 2289355 2289355 34404976 34179135 205846 19995 3323508 2283252 1036291 3965 UTILITIES 13470480 13025775 391376 53329 EQUIPMENT DISPOSALS 929655 929655 PUBLICATIONS 434395 329766 78341 26288 LICENSES AND TAXES 231565 229604 947 1014 28424 28424 378965917 357547742 18489784 2928391 12041699 17618334 57489248 55884172 400669 152427 495192 3584016 3680055 316943 12637 2931207 3314509 723109934 363762896 372070287 359347038 315911245 285455902 143516688 151935041 5222031 5216908 913484033 883112215 44296795 39940298 45006769 41373162 38780000 36714973 8150000 8150000 49705670 29460151 185939234 155638584 X 452992659 462607572 233315315 223046942 41236825 41819116 727544799 727473631 913484033 883112215 X -13118333 14398992 -1351827 X 0 1 X 1 1 1 X SCRIPPS HEALTH LA JOLLA CA RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 12815 12815 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: TSRI PAYS ANNUAL DUES TO THE ASSOCIATION OF INDEPENDENT RESEARCH INSTITUTES, CALIFORNIA HEALTHCARE INSTITUTE (CHI), THE CALIFORNIA ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AND THE FLORIDA RESEARCH CONSORTIUM, A PORTION OF WHICH IS USED FROM LOBBYING ACTIVITIES. 0 0 63414527 252501 2154224 672103 65149149 60599628 370091 3094947 650139 63414527 61045904 681736 484627 1612639 60599628 57023972 2763384 2641687 1383139 61045904 50896638 6124230 53243 50139 57023972 0.36000 0.64000 0 0 42645590 42645590 401231926 151112477 250119449 18417342 16541789 1875553 251992936 193926502 58066434 8822140 2182128 6640012 359347038 INVESTMENT IN LIMITED PARTNERSHIPS 151935041 F 151935041 PAYABLE TO UNITRUST/GIFT ANNUITY BENEFICIARIES 1983581 PENSION LIABILITY 25361744 BOND PREMIUM 2114826 29460151 X 380523084 14398992 276508 14675500 365847584 0 365847584 380594264 1628347 1628347 378965917 0 378965917 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: INVESTMENT RETURN FROM THE ENDOWMENTS SUPPORTS SCIENTIFIC PROJECTS CONSISTENT WITH THE MISSION AND PRINCIPLES OF THE SCRIPPS RESEARCH INSTITUTE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: TSRI ADOPTED FIN 48 DURING THE YEAR ENDED 9/30/08. NO LIABILITY FOR UNCERTAIN TAX POSITIONS HAS BEEN RECORDED ON THE FINANCIAL STATEMENTS FOR THE CURRENT YEAR. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENT EXPENSES NETTED AGAINST RENT REVENUE 581,673. LOSS ON DISPOSAL OF EQUIPMENT 1,046,673. OUTSIDE SHARED SERVICE GROSS REVENUE -1,351,838. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENT EXPENSES NETTED AGAINST RENT REVENUE 581,673. LOSS ON DISPOSAL OF EQUIPMENT 1,046,673. ROUNDING ADJUSTMENT 1. 1 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES LAB FOR TSRI SCIENTIST & STUDENT RESEARCH 380395 CENTRAL AMERICA & THE CARIBBEAN 0 0 INVESTMENTS 60351971 SEE PART IV 0 0 0 0 0 0 60732366 0 60732366 EUROPE (INCLUDING ICELAND & GREENLAND) LABORATORY FOR TSRI SCIENTIST & STUDENT RESEARCH 380395 ELECTRONIC FUND/WIRE 0 N/A N/A 1 0 1 0 1 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: TSRI MONITORS THE AMOUNTS PROVIDED TO THE FOREIGN ORGANIZATION BY ADHERENCE TO A GRANT CONTRACT FOR THE LAB PROVIDED FOR USE OF THE TSRI RESEARCHER AND MONITORS DETAILED BILLING STATEMENTS FOR STUDENT RESEARCH EXPENDITURES. TSRI HAS MANY SCIENTISTS THAT TRAVEL AROUND THE WORLD. GLOBAL TRAVEL IS REQUIRED BY THE SCIENTISTS TO ATTEND VARIOUS MEETINGS AND SPEAK ON THEIR AREAS OF SPECIALTY. IT IS NOT FEASIBLE TO GATHER THE DETAILED INFORMATION REGARDING EXPENDITURES FOR PART I. THERE ARE NO OFFICES OUTSIDE OF THE US OR EMPLOYEES WHO RESIDE OUTSIDE OF THE U.S. SCHEDULE F, PART IV TSRI HAD A LESS THAN 10% OWNERSHIP IN A FOREIGN CORPORATION DURING THE TAX YEAR AND THEREFORE WAS NOT REQUIRED TO FILE FORM 5471. X X X X X X 1 SANKY COMMUNICATIONS INC 599 11TH AVENUE 6TH FLOOR NEW YORK NY 10036 E-PHILANTHROPY 0 138619 80924 57695 SANKY COMMUNICATIONS INC 599 11TH AVENUE 6TH FLOOR NEW YORK NY 10036 DIRECT MAIL DONOR ACQUISITION 0 13985 93385 -79400 152604 174309 -21705 CA FL CT IL MI MA NJ NY PA DC WOMEN FOR CANCER RESEARCH 186000 179752 6248 793 5455 PGA WOMENS CANCER AWARENESS DAYS 212000 161535 50465 30783 13508 6174 4 113770 88153 25617 1030 12729 11858 511770 429440 82330 31813 27030 23487 82330 0 EXPLANATION OF FUNDRAISING PAYMENTS SCHEDULE G, PART I, LINE 2B, COLUMN (V) THE SANKY DIRECT MAIL DONOR ACQUISITION PROGRAM IS AN OVERALL BUDGET, WHICH INCLUDES THE SANKY AGENCY FEE AND THE UPFRONT COSTS OF ALL PROJECT FEES WITH THIRD-PARTY VENDORS. ALL DIRECT EXPENSES SUCH AS LIST RENTALS, POSTAGE, ETC. ARE SUBSEQUENTLY PAID DIRECTLY TO THE VENDOR FOR EXPENSE REIMBURSEMENTS. THE SANKY E-PHILANTHROPY PROGRAM IS A FLAT RATE, WHICH INCLUDES THE SANKY AGENCY FEE AND ALL PROJECT FEES. THIS INCLUDES ALL DIRECT THIRD-PARTY VENDOR FEES SUCH AS THE MERCHANT ACCOUNT FOR PROCESSING ONLINE CONTRIBUTIONS. 1 SCHOLARSHIP/STIPENDS-KELLOGG GRADUATE SCHOOL, $30,000 PER STUDENT 217 6510000 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: GRADUATE STUDENT STIPENDS ARE PROCESSED VIA PERSONNEL ACTION FORMS WHICH ARE APPROVED BY THE GRADUATE OFFICE AND HUMAN RESOURCES PRIOR TO BEING SENT TO THE PAYROLL OFFICE. ONCE APPROVED, GRADUATE STUDENTS ARE SET UP IN TSRI'S PAYROLL SYSTEM AND ARE DISPERSED ON THE 1ST AND 15TH OF EACH MONTH. MONITORING IS DONE VIA THE INTERACTION BETWEEN THE STUDENT AND FACULTY ADVISOR. AS LONG AS THE STUDENT IS PROGRESSING, S/HE WOULD CONTINUE TO BE PAID. X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 MICHAEL A MARLETTA 681099 0 0 0 132248 0 50000 0 12994 0 876341 0 0 0 DOUGLAS BINGHAM 556334 0 0 0 19674 0 50000 0 17448 0 643456 0 0 0 DONNA WESTON 352706 0 0 0 16284 0 50000 0 11816 0 430806 0 0 0 THOMAS NORTHRUP 247783 0 0 0 8377 0 38061 0 15191 0 309412 0 0 0 PETER VOGT 293238 0 0 0 22688 0 50000 0 12255 0 378181 0 0 0 CARY THOMAS 327022 0 0 0 34428 0 50000 0 15910 0 427360 0 0 0 KAYE WYNNE 258950 0 0 0 32366 0 50000 0 13872 0 355188 0 0 0 RICHARD A LERNER 599576 0 0 0 15126 0 50000 0 12652 0 677354 0 0 0 GERALD F JOYCE 413110 0 0 0 5352 0 50000 0 17125 0 485587 0 0 0 JULIUS REBEK JR 407149 0 0 0 9144 0 50000 0 22954 0 489247 0 0 0 GERALD M EDELMAN 416107 0 0 0 10443 0 50000 0 18179 0 494729 0 0 0 WILLIAM R ROUSH 408263 0 0 0 7690 0 50000 0 14673 0 480626 0 0 0 PART I, LINE 1A THE SCRIPPS RESEARCH INSTITUTE TRAVEL POLICIES PERMIT BUSINESS CLASS TRAVEL ON FLIGHTS OF MORE THAN 3 HOURS. FIRST CLASS TRAVEL IS PERMITTED ON SMALLER AIRCRAFT IF BUSINESS CLASS TRAVEL IS NOT OFFERED ON THESE LONG HAUL FLIGHTS. A HOUSING ALLOWANCE WAS PROVIDED TO THE PRESIDENT DURING HIS RELOCATION. THE ALLOWANCE CEASED UPON THE PURCHASE OF HIS RESIDENCE IN SAN DIEGO. PART I, LINE 4B PART I, LINES 4B: RICHARD LERNER, M.D. PARTICIPATED IN A DEFERRED COMPENSATION PLAN. NO PAYMENTS WERE MADE DURING THE YEAR. TOTAL TSRI LIABILITY AT 9/30/2013 WAS $6,145,000. MICHAEL MARLETTA, PH.D. PARTICIPATED IN A DEFERRED COMPENSATION PLAN. NO PAYMENTS WERE MADE DURING THE YEAR. TOTAL TSRI LIABILITY AT 9/30/2013 WAS $394,000. A CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK 630304653 13033WRC9 2005-02-23 39547350 SEE PART VI 0 0 0 A 39547350 22905721 641629 16000000 2005 1 0 1 1 A 0 0 0 1 1 0.00000 0.00000 0.00000 1 0 1 A 0 0 1 0 0 0 0 0 0 A 0 (F) DESCRIPTION OF PURPOSE: PURCHASE IMM BLDG & REFINANCE OS 1994 BONDS 1. TO ACQUIRE THE IMMUNOLOGY BUILDING AND TO REFINANCE THE 1994 ARNOLD AND MURIEL BECKMAN CHEMISTRY BUILDING CONSTRUCTION BONDS 2. TO PAY FOR A PORTION OF THE ISSUANCE COST OF BOTH ISSUES 3. TO PAY FOR CAPITALIZED INTEREST ON THE BONDS DURING THE CONSTRUCTION PERIOD MICHAEL MARLETTA PRESIDENT RELOCATION HOUSING LOAN X 500000 495192 0 1 1 495192 SEE PART V 0 FORM 990, SCHEDULE L, ADDITIONAL INFORMATION PHILLIP FROST, M.D. IS A TRUSTEE OF TSRI AND IS A SIGNIFICANT SHAREHOLDER IN OPKO HEALTH, INC. ("OPKO"). OPKO IS A HEALTH CARE COMPANY FOCUSED ON THE DEVELOPMENT OF PHARMACEUTICALS, HAS A USE LICENSE WITH TSRI, AND MAY BE INVOLVED IN BUSINESS TRANSACTIONS WITH TSRI IN THE FUTURE. TSRI HAS LICENSES WITH SORRENTO THERAPEUTICS, AND OPKO IS AN INVESTOR IN SORRENTO THERAPEUTICS. RICHARD A. LERNER, M.D. TERM AS PRESIDENT AND CEO OF TSRI EXPIRED ON DECEMBER 31, 2011. DR. LERNER SERVES ON THE BOARD OF DIRECTORS AND IS THE CHAIR OF THE COMPENSATION COMMITTEE OF OPKO. OPKO'S RELATIONSHIP WITH TSRI IS EXPLAINED ABOVE. SCHEDULE L, PART II THE PRESIDENT RELOCATED TO SAN DIEGO UPON ACCEPTING EMPLOYMENT AT TSRI. HIS RECRUITMENT PACKAGE WHICH INCLUDED A RELOCATION HOUSING LOAN WAS APPROVED BY THE BOARD OF TRUSTEES. X 7 2233919 COST/SELLING PRICE 0 0 1 1 THIRD PARTY USE: PART I, LINE 32B: SHARES OF STOCK GIFTED TO TSRI ARE TRANSFERRED INTO OUR BROKERAGE ACCOUNT AT SALOMON SMITH BARNEY AND THEY IN TURN SELL THE SHARES AND WIRE THE STOCK PROCEEDS TO TSRI. NON REPORTING OF REVENUE: PART I, LINE 33: ADDITIONALLY, STOCK GIFTS FOR A TOTAL OF $149,777.49 WERE GIVEN TO BE APPLIED AGAINST PLEDGES. THEY WERE APPLIED AGAINST A PLEDGE RECEIVABLE RATHER THAN REVENUE. FORM 990, PART VI, SECTION A, LINE 2 TSRI BOARD OF TRUSTEE MEMBERS CLAUDIA S. LUTTRELL AND MARK S. SKAGGS HAVE A FAMILY RELATIONSHIP. DR. RICHARD LERNER AND DR. PHILLIP FROST HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 ON JUNE 25, 2014, THE AUDIT COMMITTEE REVIEWED A DRAFT OF THE FORM 990 (INCLUDING ALL SUPPLEMENTAL SCHEDULES.) THIS REVIEW INCLUDED A PRESENTATION OF THE STATEMENTS BY THE CHIEF FINANCIAL OFFICER WITH PARTICULAR EMPHASIS ON DISCLOSURES ABOUT GOVERNANCE AND ABOUT TRANSACTIONS INVOLVING INTERESTED PERSONS. THE 990 WILL BE PROVIDED TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C TSRI'S CONFLICT OF INTEREST AND COMMITMENT POLICY COVERS ALL EMPLOYEES AND OFFICERS. THE CONFLICT OF INTEREST POLICY COMPLIES WITH THE REQUIREMENTS OF OTHER OVERSIGHT BODIES SUCH AS THE NIH, AND IS ADMINISTERED BY RESEARCH SERVICES. TSRI'S BOARD OF TRUSTEES CONFLICT OF INTEREST POLICY GOVERNING TRUSTEES IS ADMINISTERED BY THE PROFESSIONAL AFFAIRS COMMITTEE OF THE BOARD OF TRUSTEES. ALL TRANSACTIONS INVOLVING POTENTIAL OR ACTUAL CONFLICTED PERSONS ARE BROUGHT BEFORE THE PROFESSIONAL AFFAIRS COMMITTEE WHICH, AFTER EXAMINATION OF ALL RELEVANT INFORMATION, MAY DO ONE OF THE FOLLOWING: 1. APPROVE THE TRANSACTION SUBJECT TO A CONFLICT MITIGATION PLAN 2. DISAPPROVE THE TRANSACTION 3. REQUEST ADDITIONAL INFORMATION FURTHER, THERE IS AN ANONYMOUS "HOT LINE" WHERE ALL EMPLOYEES ARE INVITED TO DISCLOSE INFORMATION OF A BROAD NATURE, INCLUDING POTENTIAL OR PERCEIVED CONFLICTS OF INTEREST. ONCE APPROVED BY THE PROFESSIONAL AFFAIRS COMMITTEE, TRANSACTIONS INVOLVING OFFICERS ARE BROUGHT TO THE BOARD OF TRUSTEES FOR FINAL REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES ANNUALLY APPROVES THE COMPENSATION FOR THE PRESIDENT; AND, IF CHANGES OCCUR, AS NEEDED FOR OTHER EXECUTIVES. THE BOARD'S EXECUTIVE COMMITTEE (EC) SELECTS AND ENGAGES AN OUTSIDE COMPENSATION CONSULTANT. THIS WOULD BE DONE LESS THAN BI-ANNUALLY ONLY IF THERE HAVE BEEN MATERIAL CHANGES IN THE INSTITUTE OR THE PRESIDENT'S RESPONSIBILITIES. THE CONSULTANT MEETS WITH THE VP OF HR TO ENSURE IT HAS COMPLETE AND ACCURATE INFORMATION REGARDING THE INSTITUTE AND SCOPE OF EXECUTIVE RESPONSIBILITY. THE CONSULTANT DETERMINES PEER INSTITUTIONS FOR INCLUSION IN A COMPENSATION SURVEY. THE CONSULTANT CONDUCTS A COMPENSATION REVIEW USING SPECIALIZED AND PUBLISHED SURVEYS, AND SUBMITS A WRITTEN OPINION TO THE EC IN ACCORDANCE WITH THE PROVISIONS OF SECTION 53.4958-6(C)(2) AND SATISFIES THE PROFESSIONAL ADVICE REQUIREMENTS OF SECTION 53.4958-1(D)(III) OF THE INCOME TAX REGULATIONS. THE EC REVIEWS EXECUTIVE TRAVEL, BUSINESS EXPENSES, AND CONFLICTS OF INTEREST AND COMMITMENT DISCLOSURES. THE EC THEN MAKES AN INDEPENDENT RECOMMENDATION TO THE BOARD OF TRUSTEES ON EXECUTIVE COMPENSATION, WHICH MUST BE APPROVED BY THE BOARD OF TRUSTEES. AFFECTED TRUSTEES ABSTAIN FROM PARTICIPATION IN THIS PROCESS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, WITH THE EXCEPTION OF THE EMPLOYEE CONFLICT OF INTEREST POLICY, ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. THE FINANCIAL STATEMENTS ARE AVAILABLE ON THE TSRI WEB-SITE AND ARE FILED WITH THE STATE OF FLORIDA BY THE SCRIPPS FLORIDA FUNDING CORPORATION. THE STATEMENTS ARE PROVIDED TO BOND HOLDERS THROUGH TSRI'S DISSEMINATION AGENT. THE ANNUAL INFORMATION RETURN IS PROVIDED UPON REQUEST. FORM 990, PART VII, SECTION B: TSRI PATENTS MANY OF ITS DISCOVERIES. FOR MOST OF THOSE DISCOVERIES, THE COST OF THESE PATENTS IS RECOVERED FROM THIRD PARTIES PURSUANT TO THE TERMS OF THE UNDERLYING LICENSE. OTHER FEES FORM 990, PART IX, LINE 11G CONSULTING & SERVICE FEES: PROGRAM SERVICE EXPENSES 1,714,800. MANAGEMENT AND GENERAL EXPENSES 5,899,771. FUNDRAISING EXPENSES 671,062. TOTAL EXPENSES 8,285,633. SUBCONTRACTS: PROGRAM SERVICE EXPENSES 48,721,133. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 48,721,133. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: SHARED SERVICES -1,351,838. OTHER/ROUNDING 11.