2013-04-15T09:05:02-05:00 2012-05-31 560574444 CHERRY BEKAERT LLP 1111 METROPOLITAN AVENUE SUITE 1000 CHARLOTTE NC 28204 990 2011-06-01 560554207 MARS HILL COLLEGE MARS 8286891111 PO BOX 370 MARS HILL NC 28754 NEIL TILLEY 8286891100 2013-04-04 1 JANICE A RATICA P00358837 7043771678 2011 2016-03-07 17:11:31Z DAN LUNSFORD PO BOX 370 MARS HILL NC 28754 51778821 0 X WWW.MHC.EDU X 1892 NC THE ORGANIZATION IS A PRIVATE LIBERAL ARTS COLLEGE OFFERING PROGRAMS LEADING TO FIVE DEGREES: BACHELOR OF ARTS, SCIENCE, MUSIC, SOCIAL WORK AND FINE ARTS. 36 36 1261 36 520 0 5585361 5433662 29491850 33592155 544244 2881912 1875373 1854611 37496828 43762340 11648787 13918262 0 0 11346035 12057723 0 0 1027343 14623658 14681005 37618480 40656990 -121652 3105350 105211599 104275968 35699772 36494628 69511827 67781340 X MARS HILL COLLEGE, AN ACADEMIC COMMUNITY ROOTED IN THE CHRISTIAN FAITH, CHALLENGES AND EQUIPS STUDENTS TO PURSUE INTELLECTUAL, SPIRITUAL, AND PERSONAL GROWTH THAT IS: GROUNDED IN A RIGOROUS STUDY OF THE LIBERAL ARTS, CONNECTED WITH THE WORLD OF WORK, AND COMMITTED TO CHARACTER DEVELOPMENT, TO SERVICE, AND TO RESPONSIBLE CITIZENSHIP IN THE COMMUNITY, THE REGION, AND THE WORLD. 0 0 34214203 13918262 25354207 INSTRUCTION - PRIVATE LIBERAL ARTS COLLEGE OFFERING PROGRAMS LEADING TO FIVE DEGREES: BACHELOR OF ARTS, SCIENCE, MUSIC, SOCIAL WORK, AND FINE ARTS. APPROXIMATELY 1,200 STUDENTS BENEFITED. 848392 9361818 ACADEMIC SUPPORT - SERVICES THAT ARE AN INTEGRAL PART OF THE COLLEGE'S PRIMARY MISSION OF EDUCATION. 568412 PUBLIC SERVICE - ACTIVITIES ESTABLISHED PRIMARILY TO PROVIDE NON-INSTRUCTIONAL SERVICES TO GROUPS EXTERNAL TO THE COLLEGE. 35631007 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 76 0 1 1261 1 1 1 1 CJ 0 0 0 0 0 0 0 0 X 36 36 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X R NEIL TILLEY CPA 8286891100 100 ATHLETIC STREET MARS HILL NC 28754 MICHAEL V GROCE 1.00 X X 0 0 0 J DIXON FREE 1.00 X X 0 0 0 CHERYL B PAPPAS 1.00 X X 0 0 0 W WAYNE HIGGINS 1.00 X X 0 0 0 BONNIE W ADAMS 1.00 X 0 0 0 JUSTUS M AMMONS 1.00 X 0 0 0 JOHN S AYERS 1.00 X 0 0 0 PAULINE R BETHEA 1.00 X 0 0 0 BRUCE W BOYLES JR 1.00 X 0 0 0 RONALD O BROWN 1.00 X 0 0 0 MAX E BURGIN 1.00 X 0 0 0 MARK CABANISS 1.00 X 0 0 0 M KYLE CARVER 1.00 X 0 0 0 JERRY H CATES 1.00 X 0 0 0 DANIEL G CHRISTIAN 1.00 X 0 0 0 WILL DAVIS 1.00 X 0 0 0 FRED N DAY IV 1.00 X 0 0 0 TROY L DAY 1.00 X 0 0 0 SALLY P DUYCK 1.00 X 0 0 0 CAROLYN H FERGUSON 1.00 X 0 0 0 JEAN S FREEMAN 1.00 X 0 0 0 WAYNE HIGGINS 1.00 X 0 0 0 EUGENE HOLDWAY 1.00 X 0 0 0 HAROLD H HUGHES 1.00 X 0 0 0 ROGER H JACKSON 1.00 X 0 0 0 R LEO JAMES 1.00 X 0 0 0 ARLO JENNINGS 1.00 X 0 0 0 BRENT B KINCAID 1.00 X 0 0 0 RONALD F MARTIN 1.00 X 0 0 0 ROBERT L MERRILL 1.00 X 0 0 0 F TIMOTHY MOORE 1.00 X 0 0 0 BRENDA G NASH 1.00 X 0 0 0 W HAROLD NEWMAN 1.00 X 0 0 0 JOEL L NEWSOME JR 1.00 X 0 0 0 J KENNETH SANFORD 1.00 X 0 0 0 KAREN M SMITH 1.00 X 0 0 0 B JANE WINN 1.00 X 0 0 0 HAROLD CHRISTMAN 40.00 X 104067 0 20495 DR DAN LUNSFORD 40.00 X 160092 0 18793 NEIL TILLEY 40.00 X 95594 0 12026 JOHN W WELLS 40.00 X 119294 0 9844 479047 0 61158 3 0 1 0 CHARTWELLS PO BOX 91337 CHICAGO IL 60693 FOOD SERVICES 2117292 H&M CONSTRUCTION P O BOX 16589 ASHEVILLE NC 28816 CONSTRUCTION SERVICES 1790397 PADGETT & FREEMAN ASSOCIATES 30 CHOCTAW STREET ASHEVILLE NC 28801 ARCHITECT SERVICES 280207 CUTSHALL CONSTRUCTION 392 HALEWOOD ROAD MARSHALL NC 28753 CONSTRUCTION SERVICES 181817 JOHN BISSETA ENTERPRISES LLC PO BOX 9244 GREENVILLE SC 296049244 CONSTRUCTION SERVICES 119237 5 1760188 3673474 27201 5433662 TUITION AND FEES 900099 25354207 25354207 RESIDENCE HALLS 900099 4070460 4070460 CAFETERIA INCOME 900099 3230339 3230339 AUXILIARY REVENUE 900099 937149 937149 33592155 600547 520 600027 10297846 8016481 2281365 2281365 2281365 730741 0 730741 730741 OTHER INCOME 900099 1123870 1123870 1123870 43762340 34716025 520 3612133 13918262 13918262 286505 89442 197063 8944764 7311862 1018887 614015 451294 361831 59445 30018 1659388 1330438 218576 110374 715772 573881 94282 47609 380596 84391 289117 7088 42847 42847 1668887 788671 737853 142363 616479 472255 100235 43989 1206298 1206298 797986 611524 186462 600972 520 600452 AUXILIARY EXPENSES 7394255 7394255 PLANT ALLOCATION 1110807 851248 259559 INSTRUCTION 221245 221245 EQUIP RENTAL & MAINTENA 168653 103532 64066 1055 471980 268505 172643 30832 40656990 35631007 3998640 1027343 6214716 6847722 2559965 3620174 309705 349191 297006 662627 2325378 2333987 382760 379249 192649 207162 69428765 29004342 40177382 40424423 52611116 49319853 140922 131580 105211599 104275968 2227751 2704429 437933 413331 28255757 28795919 4778331 4580949 35699772 36494628 X 15883030 13833149 10477826 10194453 43150971 43753738 69511827 67781340 105211599 104275968 X 3105350 -4835837 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 39853587 914922 -1948619 2053067 36766823 33600909 693194 7274543 1715059 39853587 29439796 1552416 4313049 1704352 33600909 37842134 299617 -7527486 1174469 29439796 0.00000 1.00000 0.00000 0 0 1110968 1110968 54649411 23728668 30920743 12150385 5275674 6874711 1518001 1518001 40424423 REAL ESTATE INVESTMENT TRUSTS 533527 F ASSETS HELD IN CHARITABLE REMAINDER TRUSTS 1873187 F BENEFICIAL INTERESTS IN TRUSTS 10217788 F MUTUAL FUNDS 5028528 F ALTERNATIVE INVESTMENTS 31612572 F FIXED INCOME 54251 F 49319853 ANNUITIES PAYABLE 1065505 POSTRETIREMENT BENEFITS LIABILITIES 2427440 REFUNDABLE ADVANCES FROM DEPARTMENT OF EDUCATION 1088004 4580949 43762340 40656990 3105350 -3681640 -1154197 -4835837 -1730487 26833081 -13918262 -13918262 40751343 3010997 3010997 43762340 25700480 0 25700480 14956510 14956510 40656990 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: TO SUPPORT THE INSTITUTION IN PERPETUITY FOR SCHOLARSHIPS, LECTURESHIPS, AND VARIOUS OTHER OPERATIONS AND BUILDINGS ON CAMPUS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: FASB HAS ISSUED GUIDANCE PROVIDED BY GAAP ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THIS GUIDANCE CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS BY PRESCRIBING A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE COLLEGE'S POLICY IS TO RECORD A LIABILITY FOR ANY TAX POSITION TAKEN THAT IS BENEFICIAL TO THE COLLEGE, INCLUDING ANY RELATED INTEREST AND PENALTIES, WHEN IT IS MORE LIKELY THAN NOT THE POSITION TAKEN BY MANAGEMENT WITH RESPECT TO A TRANSACTION OR CLASS OF TRANSACTIONS WILL BE OVERTURNED BY A TAXING AUTHORITY UPON EXAMINATION. THERE ARE NO SUCH POSITIONS AS OF MAY 31, 2011 AND 2010 AND, ACCORDINGLY, NO LIABILITY HAS BEEN ACCRUED. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 4,763. POSTRETIREMENT BENEFIT RELATED CHANGES 15,284. CHANGE IN VALUE OF ASSETS HELD BY OTHERS/NON-OPERATING REV ON FINANCIALS -1,174,244. TOTAL TO SCHEDULE D, PART XI, LINE 8: -1,154,197. PART XII, LINE 2D - OTHER ADJUSTMENTS: TUITION DISCOUNTS REDUCING TUITION INCOME ON FINANCIALS -13,918,262. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAINS SHOWN AS NON-OPERATING ON FINANCIALS 2,281,365. INTEREST INCOME SHOWN AS NON-OPERATING ON FINANCIALS 600,547. INVESTMENT RETURN SHOWN AS NON-OPERATING ON FINANCIALS -994,785. NON-OPERATING REVENUE 1,123,870. PART XIII, LINE 4B - OTHER ADJUSTMENTS: TUITION DISCOUNTS REDUCING TUITION INCOME ON FINANCIALS 13,918,262. NON-OPERATING EXPENSES 1,038,248. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 RACIALLY NONDISCRIMINATORY POLICY STATEMENT IS INCLUDED IN ALL COLLEGE GENERATED DOCUMENTS INCLUDING THE COLLEGE CATALOG. IN ADDITION, IT IS PUBLISHED IN THE LOCAL NEWSPAPER AT LEAST ANNUALLY. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 LINE 34A - THE UNIVERSITY RECEIVED STUDENT FINANCIAL AID GRANTS FROM THE U.S. DEPARTMENT OF EDUCATION AND THE NC STATE EDUCATION ASSISTANCE AUTHORITY. IN ADDITION, THE UNIVERSITY RECEIVED FUNDING FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, THE LIBRARY OF CONGRESS, THE NATIONAL ENDOWMENT OF THE HUMANITIES, AND THE NATIONAL SCIENCE FOUNDATION FOR VARIOUS PROGRAM FUNDING. MARS HILL COLLEGE IS AN INVESTOR IN ONE OR MORE "PASSIVE FOREIGN INVESTMENT COMPANIES" ("PFICS"). THE SCHOOL IS AN INVESTOR IN GT OFFSHORE FUND, LTD., WHICH IS A BLOCKER CORPORATION LOCATED IN THE CAYMAN ISLANDS. THIS FUND SUBSTANTIALLY INVESTS IN GT PARTNERS - OFFSHORE A AND GT GLOBAL HEDGE - OFFSHORE B, BOTH LOCATED IN THE CAYMAN ISLANDS. FORM 8621 IS NOT BEING FILED PURSUANT TO IRS GUIDANCE SET FORTH IN REG. SEC. 1.1291-1(E). 1 TUITION DISCOUNTS/SCHOLARSHIPS 970 13918262 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE PROCESS FOR MONITORING THE USE OF TUITION DISCOUNT OR GRANTS/SCHOLARSHIP FUNDS AT MARS HILL COLLEGE INCLUDES THE USE OF A MATRIX THAT LIMITS AND DETERMINES THE AMOUNT OF ACADEMIC SCHOLARSHIP AWARDED WITH A MAXIMUM OF $7000. THE DEAN OF ADMISSIONS AND FINANCIAL AID AND THE DIRECTOR OF FINANCIAL AID MEET MONTHLY TO REVIEW THE CURRENT AMOUNT OF TUITION DISCOUNT OR GRANTS/SCHOLARSHIPS BEING AWARDED TO ENSURE THAT THE COLLEGE STAYS WITHIN BUDGET. TUITION DISCOUNT, GRANT AND SCHOLARSHIP REPORTS ARE SUBMITTED TO THE PRESIDENT ON A REGULAR BASIS. THE BUDGET FOR THESE GRANTS IS APPROVED BY THE BOARD OF TRUSTEES ON AN ANNUAL BASIS. THE DEAN OF ADMISSIONS AND FINANCIAL AID AND THE DIRECTOR OF FINANCIAL AID MONITOR ALL TUITION DISCOUNT FINANCIAL AID AWARDS PRIOR TO THE AWARD LETTER BEING MAILED. ATHLETIC GRANTS ARE MONITORED BY COACHES AND THE ATHLETIC DIRECTOR WITH STRICT GUIDELINES ESTABLISHED BY NCAA. THE ATHLETIC DIRECTOR REPORTS REGULARLY TO THE PRESIDENT OF THE COLLEGE THE AMOUNT OF TUITION DISCOUNT ATHLETIC GRANTS AWARDED BY EACH TEAM PER YEAR. X X 1 1 X X X 0 0 0 0 0 0 0 0 0 DR DAN LUNSFORD 160092 0 0 0 0 0 15473 0 3320 0 178885 0 0 0 PART I, LINE 1A MARS HILL COLLEGE PROVIDES THE PRESIDENT WITH A HOUSING ALLOWANCE SO THAT THE PRESIDENT CAN PERFORM ESSENTIAL COLLEGE BUSINESS AND ACTIVITIES AT THE HOME. IN ADDITION, CERTAIN KEY EMPLOYEES ARE PROVIDED WITH COLLEGE VEHICLES. THE PERSONAL USE IS TAXABLE TO THE EMPLOYEE. THE PRESIDENT'S SPOUSE WILL OCCASIONALLY TRAVEL WITH HIM ON CERTAIN COLLEGE FUNCTIONS. THERE IS A SUBSTANTIAL BUSINESS PURPOSE FOR SUCH TRAVEL, AND THE EXPENSES ARE DOCUMENTED AND RETAINED ON FILE. X 2 6100 FAIR MARKET VALUE X 1 21000 FAIR MARKET VALUE X MISCELLANEOUS 1 101 FAIR MARKET VALUE 0 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 THE EXECUTIVE COMMITTEE OF THE BOARD AND THE FULL BOARD OF TRUSTEES ARE PRESENTED WITH A COPY OF THE 990 FOR REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C EACH NEW OR RETURNING TRUSTEE RECEIVES ORIENTATION WHICH INCLUDES A DISCUSSION REGARDING THE CONFLICT OF INTEREST REQUIREMENT. BOARD MEMBERS WITH POTENTIAL CONFLICTS WILL RECUSE THEMSELVES FROM ANY VOTE OR DISCUSSION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE BOARD REVIEWS AND APPROVES THE COMPENSATION FOR THE PRESIDENT AND THE TOP MANAGEMENT OFFICIALS. RECOMMENDED CHANGES REQUIRE ACTION AND APPROVAL BY THE FULL BOARD OF TRUSTEES AND DISCUSSIONS ARE DOCUMENTED IN THE MEETING MINUTES. SALARIES ARE COMPARED TO OTHER SIMILAR INSTITUTIONS AND TO SALARY SURVEYS ISSUED BY THE NC INDEPENDENT COLLEGE/UNIVERSITIES ANNUAL COMPENSATION SURVEY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST THROUGH THE PRESIDENT'S OFFICE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -3,681,640. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 4,763. POSTRETIREMENT BENEFIT RELATED CHANGES 15,284. CHANGE IN VALUE OF ASSETS HELD BY OTHERS/NON-OPERATING REV ON FINANCIALS -1,174,244. TOTAL TO FORM 990, PART XI, LINE 5: -4,835,837. AUDIT COMMITTEE FORM 990, PART XII, LINE 2C THERE IS AN AUDIT COMMITTEE COMPRISED OF TRUSTEES THAT HAS RESPONSIBILITY FOR THE RECOMMENDATION OF THE AUDITORS, OVERSIGHT OF THE AUDIT, AS WELL AS THE COMMUNICATION RESPONSIBILITY WITH THE AUDITORS. CHARITABLE REMAINDER UNITRUST (6) TRUST NC MARS HILL COLLEGE T 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0