2011-11-14T13:58:57-06:00 2010-12-31 PARENTEBEARD LLC 20 STANWIX ST SUITE 900 PITTSBURGH PA 15222 990 2010-01-01 251492587 PHIPPS CONSERVATORY AND BOTANICAL GARDENS INC PHIP 4126226915 ONE SCHENLEY PARK PITTSBURGH PA 15213 ROBERT S MERMELSTEIN 4126226915 2011-11-02 1 PAUL E BLOCK CPA 4122819690 2010 2016-03-07 17:11:31Z ROBERT S MERMELSTEIN ONE SCHENLEY PARK PITTSBURGH PA 15213 10374297 0 X WWW.PHIPPS.CONSERVATORY.ORG X 1985 PA TO OPERATE THE CONSERVATORY AND ADJACENT PROPERTIES OWNED BY THE CITY OF PITTSBURGH AND LEASED TO PHIPPS. TO RAISE AND EXPEND CONTRIBUTIONS FOR THE OPERATION, RESTORATION, BENEFIT AND EXPANSION OF THE CONSERVATORY. TO PROMOTE COMMUNITY AWARENESS AND INVOLVEMENT. TO PROVIDE EDUCATION AND SCIENTIFIC PROGRAMS AT OR IN CONNECTION WITH THE CONSERVATORY. 38 38 140 379 60810 -297645 7735741 6422333 1211955 1513049 -119823 145410 677926 693002 9505799 8773794 17897 21000 0 0 2896705 2900027 0 0 245324 3856628 3311429 6771230 6232456 2734569 2541338 52063113 54790567 952745 1170160 51110368 53620407 X TO INSPIRE AND EDUCATE VISITORS WITH THE BEAUTY AND IMPORTANCE OF PLANTS; TO ADVANCE SUSTAINABILITY AND WORLDWIDE BIODIVERSITY THROUGH ACTION AND RESEARCH; AND TO CELEBRATE ITS HISTORIC GLASSHOUSE. 0 0 2371734 1910929 GUEST SERVICES: PHIPPS IS DEDICATED TO PRESENTING ITS REGION'S CITIZENS WITH EXPERIENCES FOUND NOWHERE ELSE. FROM ROWS OF SCHOOLCHILDREN WITH PALMS RAISED HIGH OVER THEIR HEADS TO IMITATE THE TROPICS' CANOPY LAYER OF TREES, TO GUESTS TAKING AN EXHILARATING STROLL FROM THE CLASSIC VICTORIAN BEAUTY OF THE 1893 GLASSHOUSE TO THE EXOTIC WILDS OF THE TROPICAL FOREST, EVERY VISITOR TO PHIPPS GAINS A SINGULAR EXPERIENCE WHICH IS TAILORED TO THEIR NEEDS FOR EDUCATION, INSPIRATION, AND ENRICHMENT. PHIPPS' GUEST SERVICES TEAM WORKS DILIGENTLY TO ENSURE THAT OUR VISITORS' EXPERIENCES ARE ENJOYABLE AND MEMORABLE. PHIPPS, THE "GREEN HEART OF PITTSBURGH", IS AMERICA'S GREENEST CONSERVATORY, THROUGH ITS SILVER LEED-CERTIFIED WELCOME CENTER AND THE TROPICAL FOREST, THE WORLD'S MOST ENERGY EFFICIENT CONSERVATORY. IN 2010, PHIPPS BEGAN CONSTRUCTION OF ITS CENTER FOR SUSTAINABLE LANDSCAPES, A NEW EDUCATION/RESEARCH/ADMINISTRATION FACILITY WHICH WILL OPEN IN 2012 AS ONE OF THE GREENEST BUILDINGS IN THE WORLD. THE PHIPPS CAFE OFFERS ITS GUESTS DELICIOUS LOCALLY AND ORGANICALLY GROWN AND SUSTAINABLE FOODS. 1054116 HORTICULTURE: PHIPPS' HORTICULTURE TEAM WAS RESPONSIBLE FOR DESIGNING, PLANNING, PLANT PURCHASE AND PROPOGATING, PLANT CARE AND MAINTENANCE FOR ITS FOUR MAJOR FLOWER SHOWS IN 2010. THE SPRING SHOW, FRABEL GLASS EXHIBIT, FALL SHOW AND WINTER SHOW PROVIDED OUR VISITORS WITH THE SEASONAL COLORS AND AROMAS OF PLANTS. PHIPPS IS ONE OF THE ONLY CONSERVATORIES IN THE COUNTRY THAT OFFERS CHANGING FLOWER SHOWS THROUGHOUT THE YEAR. THE FOURTEEN-ROOM CONSERVATORY, SEVEN OUTDOOR GARDENS AND 36,000 SQUARE FEET OF PRODUCTION GREENHOUSES PROVIDE YEAR ROUND BEAUTIFUL, CREATIVE, INTERESTING AND EDUCATIONAL DISPLAYS FOR OUR VISITORS. 588392 272845 EDUCATION: PHIPPS OFFERS A WIDE VARIETY OF EDUCATION CLASSES FOR BOTH CHILDREN AND ADULTS. IN 2010, APPROXIMATELY 3,800 ADULTS AND 5,200 CHILDREN PARTICIPATED IN 89 UNIQUE CLASS OFFERINGS (239 CLASSES AND SCHOOL PROGRAMS). PHIPPS OFFERED A SYMPOSIUM AND SHORT COURSE, IN PARTNERSHIP WITH LOCAL UNIVERSITIES, PRESENTING HORTICULTURAL AND SUSTAINABLE TOPICS GEARED TOWARD SPECIFIC AUDIENCES. IN ADDITION, EDUCATION IS RESPONSIBLE FOR THE FREE PUBLIC PROGRAMMING IN THE CONSERVATORY. IN 2010, NEARLY 29,800 CHILDREN AND ADULTS ENJOYED THESE PROGRAMS DURING THEIR VISITS. EDUCATION ALSO PREPARES AND RESEARCHES ALL OF THE INTERPRETIVE SIGNAGE LOCATED THROUGHOUT THE CONSERVATORY, PROVIDES DOCENT AND VOLUNTEER TRAINING, MASTER GARDENER OTHER CERTIFICATE PROGRAMS (SUSTAINABLE HORTICULTURE, SUSTAINABLE LANDSCAPE PRACTICES, NATIVE PLANT STUDIES, LANDSCAPE AND GARDEN DESIGN, FLORAL DESIGN AND BOTANICAL ART AND ILLUSTRATION, SCOUT PROGRAMS, SUMMER CAMPS FOR CHILDREN AND OUTREACH TO THE UNDERPRIVILEGED. 1295586 SEE SCHEDULE O 1295586 5309828 1 1 0 0 0 0 1 0 1 1 0 0 1 0 1 1 0 0 0 0 0 1 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 45 0 1 140 1 1 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 X 38 38 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X ROBERT S MERMELSTEIN 4126226915 ONE SCHENLEY PARK PITTSBURGH PA 15213 SUSAN GOLOMB 5.00 X 0 0 0 CHARLES BRODBECK 5.00 X 0 0 0 SCOTT LAMMIE 5.00 X 0 0 0 JUI JOSHI 5.00 X 0 0 0 MERNIE BERGER 2.00 X 0 0 0 JAMES FRANTZ 2.00 X 0 0 0 TOM BLANCHARD 2.00 X 0 0 0 JAMES MITNICK 2.00 X 0 0 0 BARBARA GRANITO 2.00 X 0 0 0 PETER GERSZTEN 2.00 X 0 0 0 HENRY HOFFSTOT JR 2.00 X 0 0 0 GLORIA KLEIMAN 2.00 X 0 0 0 CATE LINN 2.00 X 0 0 0 RESHMA PARANJPE 2.00 X 0 0 0 RICHARD SOEDER 2.00 X 0 0 0 ALKA PATEL 2.00 X 0 0 0 DONNA PATTERSON 2.00 X 0 0 0 SUZY BROADHURST 2.00 X 0 0 0 EVAN FRAZIER 2.00 X 0 0 0 CAROLE HOROWITZ 2.00 X 0 0 0 DON MORITZ 2.00 X 0 0 0 THEODORA POLAMALU 2.00 X 0 0 0 LAUREN SUFRIN 2.00 X 0 0 0 F MICHAEL LANGLEY 2.00 X 0 0 0 JENNIFER MUSE 5.00 X 0 0 0 WALTER BURLACK 2.00 X 0 0 0 WILLIAM GENERETT JR 2.00 X 0 0 0 PAUL GITNIK 2.00 X 0 0 0 MARY-CAROLINE HUNT 2.00 X 0 0 0 PATRICK KENNY 2.00 X 0 0 0 JOSEPH LAGANA 2.00 X 0 0 0 RYAN MARTIN 2.00 X 0 0 0 MARY ODOM 2.00 X 0 0 0 DIANA MRVOS RATH 2.00 X 0 0 0 JAMES SCALO 2.00 X 0 0 0 MISSY UNKOVIC 2.00 X 0 0 0 JOHN WEINSTEIN 2.00 X 0 0 0 RICHARD PIACENTINI 50.00 X X X 220965 0 60438 GREG DUFOUR 50.00 X 116063 0 5275 337028 0 65713 2 0 1 0 HIGHMARK BLUE SHIELD CORP ADDRESS PITTSBURGH PA 15213 HEALTH INSURANCE 336549 SODEXO OPERATIONS LLC CORP ADDRESS PITTSBURGH PA 15213 CAFE CONTRACT 285233 RED HOUSE COMMUNICATIONS INC CORP ADDRESS PITTSBURGH PA 15213 ADVERTISING/PR 226651 SIMPSON & MCGRADY CORP ADDRESS PITTSBURGH PA 15213 INSURANCE 202613 THE DESIGN ALLIANCE CORP ADDRESS PITTSBURGH PA 15213 ARCHITECTURAL DESIGN 171324 5 633110 2027610 3761613 105376 6422333 ADMISSIONS 900099 1265715 1265715 EDUCATIONAL TOURS/CLAS 900099 233905 233905 LANDSCAPE CONSULTING/D 900099 13429 13429 1513049 92406 92406 613017 284302 328715 328715 267905 60810 941211 888207 53004 53004 53004 224001 136850 87151 87151 536020 291144 244876 244876 MISCELLANEOUS REVENUE 900099 32260 32260 32260 8773794 2058090 60810 232561 3000 3000 18000 18000 2316260 1812074 350804 153382 107116 83800 16223 7093 286841 224404 43443 18994 189810 148494 28747 12569 73176 73176 86479 41279 45200 341370 291519 32758 17093 199965 199965 144841 102619 20812 21410 415970 404988 9126 1856 57611 52365 3157 2089 1049658 1044571 5087 136831 131976 3960 895 BLDG. & GROUND MAINT. 319214 319214 PROGRAM SUPPLIES/COSTS 203108 203108 EQUIPMENT RENTAL 122067 85148 28150 8769 DESIGN 91866 91866 EQUIPMENT 34975 21973 12350 652 34298 29465 4311 522 6232456 5309828 677304 245324 11595612 12397523 2600519 4604335 20480 18092 158530 133095 105433 142779 39180162 6748313 33372869 32431849 4209670 5062894 52063113 54790567 776238 966104 176507 204056 952745 1170160 X 38219090 38384901 11094548 13438742 1796730 1796764 51110368 53620407 52063113 54790567 X 2541338 -31299 X X 0 1 1 X 0 X 12878739 7770127 10080862 7735741 6440772 44906241 12878739 7770127 10080862 7735741 6440772 44906241 11218907 33687334 462964 883652 551264 693269 92406 2683555 9946 9946 6250 7209 3400 20807 45689 83355 47683097 0.70650 0.70700 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 788000 X X X 0 1566134 34 220965 36475 1750658 1332263 305 296341 62775 1566134 2006379 21025 -606939 88202 1332263 0 0 37842825 6298917 31543908 549337 449396 99941 788000 788000 32431849 CONSTRUCTION IN PROGRESS 2307321 PERMANENTLY RESTRICTED MARKETABLE INVESTMENTS 1796597 INVESTMENTS-OTHER MARKETABLE INVESTMENTS 958976 5062894 8773794 6232456 2541338 247906 18439 -297644 -31299 2510039 10083190 247906 18439 1043051 1309396 8773794 0 8773794 7573151 1340695 1340695 6232456 0 6232456 PART III, LINE 4: PHIPPS' CHIHULY GLASS COLLECTION INCLUDES EIGHT INSTALLATIONS OF CHIHULY PIECES THROUGHOUT THE CONSERVATORY. THE PIECES WERE PURCHASED SPECIFICALLY TO DEMONSTRATE BOTANICAL ART AND THEIR RELATIONSHIP TO THE ACCOMPANYING PLANTS. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS OF PHIPPS CAN BE DESCRIBED AS FOLLOWS. EACH YEAR, THE BOARD OF TRUSTEES VOTES ON THE PERCENTAGE OF EARNINGS FROM THE ENDOWMENT THAT WILL BE ALLOCATED FOR THE USE OF THE VARIOUS PORTIONS. THERE ARE SEVERAL PORTIONS OF THE ENDOWMENT FUNDS AT PHIPPS: 1) FUNDING FOR THE SALARY/BENEFITS OF THE POSITION OF DIRECTOR OF HORTICULTURE, 2) FUNDING FOR THE BOTANY IN ACTION PROGRAM THAT PROVIDES GRANTS TO STUDENTS PERFORMING RESEARCH IN BOTANY THROUGHOUT THE WORLD, 3) FUNDING FOR THE GENERAL OPERATIONS OF THE CONSERVATORY AND GARDEN CENTER AND 4) FUNDING FOR THE FUTURE RESEARCH PROGRAM RELATED TO THE CENTER FOR SUSTAINABLE LANDSCAPES CURRENTLY BEING DESIGNED. THE ENDOWMENT FUNDING FOR THE RESEARCH PROGRAM AT PHIPPS IS PART OF THE CURRENT CAPITAL CAMPAIGN RELATED TO THE CENTER FOR SUSTAINABLE LANDSCAPES. THE CURRENT CAPITAL CAMPAIGN GOAL IS SPECIFICALLY RELATED TO THE FUTURE RESEARCH PROGRAM. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: PHIPPS ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) 740 WHICH PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PROCESS FOR FINANCIAL STATEMENT RECOGNITION OF UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE INTERPRETATION ALSO PROVIDES GUIDANCE ON RECOGNITION, DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING FOR INTERIM PERIODS, DISCLOSURE AND TRANSITION. PHIPPS' OPEN AUDIT PERIODS INCLUDE 2007 THROUGH 2010. PART XI, LINE 8 - OTHER ADJUSTMENTS: LOSS FROM 990T PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES COSTS OF GOODS SOLD FUNDRAISING EXPENSES REVENUE ALLOCATED TO 990T PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES COST OF GOODS SOLD FUNDRAISING EXPENSES ALLOCATED TO 990T 0 0 0 0 0 0 0 BOTANICAL RESEARCH SOUTH AMERICA 1 3000 CHECK 0 N/A FMV BOTANICAL RESEARCH CENTRAL AMERICA 1 3000 CHECK 0 N/A FMV BOTANICAL RESEARCH EAST ASIA 1 3000 CHECK 0 N/A FMV BOTANICAL RESEARCH SOUTH ASIA 3 9000 CHECK 0 N/A FMV 0 0 0 0 0 0 MAY MARKET 32109 32109 26719 WINE TASTING 116880 116880 33350 3 75012 75012 76781 224001 224001 136850 136850 87151 1 BOTANICAL RESEARCH 1 3000 0 FMV N/A PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE BOTANY IN ACTION PROGRAM AT PHIPPS PROVIDES GRANTS TO GRADUATE STUDENTS TO FORM ALLIANCES WITH INDIGENOUS CULTURES WHILE STUDYING IN SOME OF THE MOST REMOTE AND BOTANICALLY-RICH AREAS OF THE WORLD. BOTANY IN ACTION RESEARCHERS DOCUMENT THE USES OF IMPORTANT, OFTEN ENDANGERED PLANTS. GRANTEES RECORD TRADITIONAL SPECIES. THEY ALSO IDENTIFY MEDICINALLY ACTIVE COMPOUNDS PRESENT IN PLANTS WITH THE HELP OF FARMERS, SHAMANS, MIDWIVES AND OTHER KEEPERS OF MEDICINAL KNOWLEDGE. TO DATE, 29 RESEARCHERS HAVE BENEFITED FROM BOTANY IN ACTION GRANTS. BEYOND THE INITIAL GRANT FOR TRAVEL, STUDY, SERVICES, AND SUPPLIES, STUDENTS MAY SEEK AID TO PUBLISH AND PROMOTE THEIR FINDINGS THROUGH PUBLIC OUTREACH AND EDUCATION. THE STUDENTS ARE ASSIGNED AN ADVISOR/MENTOR WHO WILL ASSIST AND GUIDE THEM IN THEIR RESEARCH BASED ON THEIR APPROVED PROPOSAL. THESE ADVISORS ARE A NETWORK OF ACADEMICS AND PROFESSIONALS IN TOP UNIVERSITY PROGRAMS AND AT BOTANAICAL INSTITUTIONS. IN ADDITION, INFORMATION GATHERED BY BOTANY IN ACTION SPONSORED GRADUATE STUDENTS HELPS TO INFORM PHIPPS' DISPLAYS AND OUTREACH. THE STUDENTS ALSO MAKE APPEARANCES AT AREA SCHOOLS, SPEAKING TO CHILDREN ABOUT THEIR LIFE AND WORK AS CONSERVATION SCIENTISTS. BOTANY IN ACTION SPONSORED GRADUATE STUDENTS APPEAR EACH JANUARY AT A PHIPPS-SPONSORED COLLOQUIUM, DISCUSSING THEIR WORK WITH PHIPPS STAFF AND BOARD MEMBERS, LOCAL STUDENTS, AND THE GENERAL PUBLIC. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 RICHARD PIACENTINI 220965 0 0 0 0 0 37260 0 23178 0 281403 0 272874 0 PART I, LINE 1A PHIPPS CONSERVATORY AND BOTANICAL GARDENS, INC. PAYS THE MONTHLY DUES FOR A BUSINESS CLUB LOCATED IN THE CITY CENTER. THE PRIMARY PURPOSE OF THE MEMBERSHIP FOR BUSINESS MEETINGS/MEALS THAT THE EXECUTIVE DIRECTOR HAS OFF SITE OR WITH INDIVIDUALS THAT ARE MORE CONVENIENTLY LOCATED IN THE CITY ITSELF. PART I, LINE 4B PHIPPS' EXECUTIVE DIRECTOR PARTICIPATED IN A 457B PLAN DURING 2010 X DONATED GIFTS IN KIND 160 105376 FAIR MARKET VALUE 0 0 0 FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS COMPLETED BY PHIPPS AND REVIEWED BY THE AUDIT COMMITTEE. UPON RECOMMENDATION BY THE AUDIT COMMITTEE, THE FORM 990 IS APPROVED BY THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C ON A YEARLY BASIS, ALL MEMBERS OF THE BOARD OF TRUSTEES ARE PROVIDED THE PHIPPS CONFLICT OF INTEREST POLICY AND THE RELATED PROCEDURES. THEY ARE THEN REQUIRED TO COMPLETE THE CONFLICT OF INTEREST DISCLOSURE STATEMENT IDENTIFYING ANY POTENTIAL CONFLICTS, IDENTIFYING ANY OTHER BOARDS THEY MAY BE A MEMBER OF, AND IDENTIFYING THEIR EMPLOYER. THE TRUSTEESHIP COMITTEE OF THE BOARD OF TRUSTEES IS THEY BODY RESPONSIBLE FOR ASSURING THAT EVERY DISCLOSURE STATEMENT IS RETURNED. PHIPPS' BOARD OF TRUSTEES CONSISTENTLY HAS 100% PARTICIPATION IN THIS PROCESS. TRUSTEES THAT HAVE A CONFLICT ARE ASKED TO VOICE THEIR AFFILIATIONS IN COMMITTEE AND FULL BOARD MEETINGS WHERE A DECISION RELATED TO THAT AFFILIATION VIA VOTE WILL BE MADE. ONCE VOICED, THE TRUSTEE ABSTAINS FROM VOTING ON THE DECISION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE EXECUTIVE DIRECTOR IS DETERMINED EACH YEAR BY THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES. THIS PROCESS HAS BEEN IN PLACE SINCE 1993 WHEN PHIPPS BECAME A PRIVATE NON-PROFIT. IN THE CURRENT YEAR, THE COMPENSATION COMMITTEE EMPLOYED AN EXTERNAL FIRM TO PERFORM BENCHMARKING ANALYSES REGARDING BOTH THE SALARIES OF THE EXECUTIVE DIRECTOR AND THE DEPARTMENTAL DIRECTORS. THE COMPENSATION OF THE DEPARTMENTAL DIRECTORS IS DETERMINED BY THE EXECUTIVE DIRECTOR AND DISCUSSED WITH THE CHAIRPERSON OF THE BOARD OF TRUSTEES. THE OVERALL RAISE PERCENTAGES ARE APPROVED AND DISCUSSED OVERALL AS PART OF PHIPPS' YEARLY BUDGETING PROCESS. THE BUDGET ITSELF IS THEN APPROVED BY THE BOARD OF TRUSTEES BEFORE IMPLEMENTATION. FORM 990, PART VI, SECTION C, LINE 19 PHIPPS MAKES ALL GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC VIEWING. ANY PERSON INTERESTED IN THIS INFORMATION CAN CONTACT THE CFO IN ADVANCE TO MAKE ARRANGEMETNS TO VIEW THE INFORMATION ON SITE, OR IF APPROPRIATE, THE INFORMATION CAN BE MAILED OR E-MAILED TO THE INDIVIDUAL FOR REVIEW. SEE CONTACT INFORMATION IN PART VI, SECTION C, ITEM 20. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 247,906. DONATED SERVICES AND USE OF FACILITIES: 18,439. LOSS FROM 990T FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS. THE AUDIT COMMITTEE MEETS AT LEAST ONCE A YEAR TO REVIEW THE FINANCIAL STATUS OF PHIPPS AND ALSO MEETS AS A COMMITTEE WITH THE EXTERNAL INDEPENDENT AUDITORS TO REVIEW THE AUDITED FINANCIAL STATEMENTS. AFTER REVIEW BY THE AUDIT COMMITTEE, THE AUDITED FINANCIAL STATEMENTS ARE PROVIDED TO THE FULL BOARD OF TRUSTEES FOR FINAL APPROVAL AND PUBLICATION. IN ADDITION, EACH YEAR, THE AUDIT COMMITTEE DISCUSSES THE SELECTION OF THE INDEPENDENT EXTERNAL ACCOUNTANTS. THE COMMITTEE MAKES A RECOMMENDATION TO CONTINUE WITH THE CURRENT AUDITORS OR TO BID OUT THE PROCESS TO THE FULL BOARD OF TRUSTEES WHO THEN VOTE ON THE FINAL RECOMMENDATION.