| FORM 990, PAGE 1, LINE K |
FORM OF ORGANIZATION THE LELAND STANFORD JUNIOR UNIVERSITY WAS FOUNDED BY SENATOR AND MRS. LELAND STANFORD ON NOVEMBER 11, 1885, IN MEMORY OF THEIR ONLY CHILD, LELAND, JR. THE FOUNDING WAS ACCOMPLISHED BY A GRANT OF ENDOWMENT, KNOWN AS THE FOUNDING GRANT, WHICH CONVEYED IN TRUST TO A BOARD OF TRUSTEES CERTAIN PROPERTIES, DIRECTED THAT A UNIVERSITY BE ESTABLISHED AND OUTLINED THE OBJECTIVES AND GOVERNMENT OF THE UNIVERSITY. SUBSEQUENT LEGISLATION IN THE STATE OF CALIFORNIA GRANTED THE UNIVERSITY CORPORATE POWERS EFFECTIVE 1901. ACCORDINGLY, STANFORD HAS ELECTED TO BE TREATED AS A CORPORATION FOR THE PURPOSES OF THE ADMINISTRATION OF FEDERAL AND STATE INCOME TAX LAW. FORM 990, PART I, LINE 6 VOLUNTEERS THERE ARE THOUSANDS OF ALUMNI AND FRIENDS OF STANFORD UNIVERSITY WHO VOLUNTEERED THEIR SERVICES TO STANFORD OVER THE COURSE OF THE YEAR. EXAMPLES OF THE WIDE SPECTRUM OF VOLUNTEER SERVICES INCLUDE SERVING AS A MEMBER OF THE BOARD OF TRUSTEES OF THE UNIVERSITY, SERVING ON A FUNDRAISING COMMITTEE, AND SERVING ON AN ADVISORY BOARD OF AN INSTITUTE. WHILE STANFORD DOES NOT FORMALLY TRACK THE TOTAL NUMBER OF VOLUNTEERS, IT ESTIMATES THAT APPROXIMATELY 15,800 ALUMNI AND OTHER INDIVIDUALS VOLUNTEERED DURING THE TAX YEAR. FORM 990, PARTS I AND III, LINE 1 ORGANIZATION'S MISSION - CONTINUED FROM PART I, LINE 1 & PART III, LINE 1 STANFORD IS INTERNATIONALLY RECOGNIZED FOR THE QUALITY OF ITS TEACHING AND RESEARCH, ITS DISTINGUISHED FACULTY, AND ITS OUTSTANDING STUDENT BODY. IN THE YEARS SINCE ITS FOUNDING IN 1885, STANFORD HAS GROWN TO OVER 2,288 FACULTY MEMBERS AND AN ENROLLMENT OF APPROXIMATELY 7,645 UNDERGRADUATE AND 9,292 GRADUATE STUDENTS. THE OBJECTIVE AND PURPOSES OF STANFORD UNIVERSITY, JANE AND LELAND STANFORD WROTE IN THEIR FOUNDING GRANT IN 1885, ARE "TO QUALIFY ITS STUDENTS FOR PERSONAL SUCCESS, AND DIRECT USEFULNESS IN LIFE; ... TO PROMOTE THE PUBLIC WELFARE BY EXERCISING AN INFLUENCE ON BEHALF OF HUMANITY AND CIVILIZATION, TEACHING THE BLESSINGS OF LIBERTY REGULATED BY LAW, AND INCULCATING LOVE AND REVERENCE FOR THE GREAT PRINCIPLES OF GOVERNMENT AS DERIVED FROM THE INALIENABLE RIGHTS OF MAN TO LIFE, LIBERTY, AND THE PURSUIT OF HAPPINESS." |
| FORM 990, PART III, LINE 4A |
STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS (EXPENSES $2,066,150,742 INCLUDING GRANTS OF $50,669,731; REVENUE $820,240,071) INSTRUCTION AND DEPARTMENTAL RESEARCH: INCLUDES THE SALARIES, FRINGE BENEFITS AND SUPPLIES NECESSARY TO TEACH 16,937 STUDENTS, INCLUDING 7,645 UNDERGRADUATE AND 9,292 GRADUATE AND PROFESSIONAL SCHOOL STUDENTS. STANFORD'S 2,288-PERSON FACULTY INCLUDES 20 NOBEL LAUREATES AND 4 PULITZER PRIZE WINNERS. STANFORD HAS SEVEN SCHOOLS: BUSINESS, EARTH, ENERGY & ENVIRONMENTAL SCIENCES, EDUCATION, ENGINEERING, HUMANITIES AND SCIENCES, LAW, AND MEDICINE. UNDERGRADUATES CHOOSE AMONG 69 MAJORS AND ARE ENCOURAGED TO LEARN CRITICAL THINKING SKILLS THROUGH RESEARCH. SEVEN SCHOOLS ON ONE CAMPUS OFFER STUDENTS BOUNDLESS OPPORTUNITIES TO PURSUE THEIR PASSIONS AND COLLABORATE ON SOLVING COMPLEX GLOBAL PROBLEMS. IN CLOSE INTERACTION WITH FACULTY, STANFORD STUDENTS CREATE AND APPLY KNOWLEDGE BY THINKING AND DOING, PREPARING FOR LEADERSHIP IN A RAPIDLY CHANGING WORLD. |
| FORM 990, PART III, LINE 4B |
STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS (EXPENSES $1,349,043,581 INCLUDING GRANTS OF $25,140,672; $239,145,598 REPORTED REVENUE EXCLUDES FEDERAL RESEARCH SUPPORT.) ORGANIZED RESEARCH: RESEARCH IS INTEGRAL TO THE EDUCATIONAL MISSION OF STANFORD AND INVOLVES FACULTY, GRADUATE STUDENTS, AND UNDERGRADUATES WHO SEEK NEW KNOWLEDGE IN SERVICE TO HUMANITY. STANFORD FACULTY MEMBERS HAVE CONTRIBUTED TO ADVANCEMENTS IN HIGH TECH, INCLUDING THE CREATION OF DIGITAL SUBSCRIBER LINES, IDENTITY-BASED ENCRYPTION, GLOBAL POSITIONING SYSTEMS AND THE REDUCED INSTRUCTION SET COMPUTER, AMONG OTHER DISCOVERIES; DISEASE IDENTIFICATION AND MANAGEMENT, INCLUDING PROGRAMS USED BY MORE THAN 500 ORGANIZATIONS WORLDWIDE CONCERNED WITH CHRONIC HEALTH PROBLEMS SUCH AS ARTHRITIS AND HIV/AIDS; AND GENOME SEQUENCING, INCLUDING DISCOVERIES THAT CREATED THE FIELD OF GENETIC ENGINEERING. TODAY'S STANFORD FACULTY MEMBERS ARE LEADERS IN NEUROSCIENCE, ENERGY, STEM CELL RESEARCH, ARTIFICIAL INTELLIGENCE, NANOTECHNOLOGY, BIOENGINEERING, COMPUTING TECHNOLOGY, REFORM OF OUR NATION'S SCHOOLS AND ENVIRONMENTAL SUSTAINABILITY. THROUGH BOTH BASIC AND APPLIED RESEARCH, STANFORD IS COMMITTED TO PROVIDING NEW KNOWLEDGE THAT FUELS OUR NATIONAL ECONOMY AND TO TRAINING GRADUATE STUDENTS WHO WILL BECOME TOMORROW'S TEACHERS AND RESEARCHERS. ENTREPRENEURIAL STANFORD FACULTY MEMBERS ARE KNOWN FOR THEIR ABILITY TO CROSS INTERDISCIPLINARY BOUNDARIES TO CREATE TEAMS OF RESEARCHERS ABLE TO PROVIDE NEW INSIGHTS TO COMPLEX, WORLDWIDE PROBLEMS. |
| FORM 990, PART III, LINE 4C |
STATEMENT OF PROGRAM SERVICES ACCOMPLISHMENTS (EXPENSES $548,909,595 INCLUDING GRANTS OF $30,464; REVENUE $1,543,893,360.) UNIVERSITY AUXILIARY ACTIVITIES: INCLUDES AMONG OTHERS HEALTH CARE, RESIDENTIAL & DINING ENTERPRISES, AND INTER-COLLEGIATE ATHLETIC PROGRAMS. STANFORD SCHOOL OF MEDICINE FACULTY MEMBERS ARE HEALTH-CARE PRACTITIONERS AS WELL AS TEACHERS, COMBINING EXPERTISE HONED BY RESEARCH WITH THE MOST ADVANCED TECHNOLOGY TO TREAT PATIENTS AT STANFORD HEALTH CARE AND THE LUCILE PACKARD CHILDREN'S HOSPITAL. STANFORD FACULTY PROVIDE APPROXIMATELY 90% OF THE PATIENT CARE AT STANFORD HEALTH CARE AND 95% OF THE PEDIATRIC CARE AT LUCILE PACKARD CHILDREN'S HOSPITAL. RESIDENTIAL & DINING ENTERPRISES (R&DE) IS THE STEWARD OF 5 MILLION SQ FT OF PHYSICAL PLANT (APPROXIMATELY 1/3 OF CAMPUS) AND GENERATES REVENUE PRIMARILY THROUGH STUDENT ROOM AND BOARD. R&DE HOUSES 13,000 STUDENTS AND FAMILIES. R&DE COMPLEMENTS STANFORD'S ACADEMIC PROGRAMS WITH A ROBUST RESIDENTIAL LIVING AND LEARNING ENVIRONMENT. THE UNIVERSITY HAS BEEN INVESTING IN THE RESIDENTIAL EDUCATION PROGRAM TO FOSTER AN ENVIRONMENT OF INTELLECTUAL, EDUCATIONAL, AND COMMUNITY-BUILDING ACTIVITIES IN STUDENT RESIDENCES. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICES (EXPENSES $1,898,667,482 INCLUDING GRANTS OF $500,589,293; REVENUE $278,639,658.) STUDENT FINANCIAL AID: INCLUDES MERIT AND NEED-BASED SCHOLARSHIPS AND FELLOWSHIPS. SLAC CONSTRUCTION AND OTHER: THE UNIVERSITY MANAGES AND OPERATES THE SLAC NATIONAL ACCELERATOR LABORATORY FOR THE U.S. DEPARTMENT OF ENERGY ("DOE")UNDER A MANAGEMENT AND OPERATING CONTRACT. REVENUES AND EXPENDITURES ARE INCLUDED IN STANFORD'S FINANCIAL STATEMENTS; ASSETS AND LIABILITIES ARE OWNED BY DOE AND THEREFORE EXCLUDED ON STANFORD'S BALANCE SHEET. ACCORDINGLY, CONSTRUCTION EXPENDITURES ARE RECORDED AS EXPENDITURES HEREIN. COVID-19 IMPACT THROUGHOUT FISCAL YEAR 2021, STANFORD NAVIGATED THE CHALLENGES AND UNPRECEDENTED PRESSURES STEMMING FROM THE COVID-19 PANDEMIC - A CRISIS THAT REQUIRED A REIMAGINING OF THE UNIVERSITY'S OPERATIONS FROM THE GROUND UP. DURING THIS TIME, WE FOCUSED ON THREE OVERARCHING GOALS: SUSTAINING OUR MISSION OF RESEARCH, EDUCATION, AND HEALTH CARE; CONTRIBUTING TO THE GLOBAL RESPONSES TO THE PANDEMIC AND RACIAL INJUSTICE; AND SUPPORTING OUR STANFORD COMMUNITY. SUSTAINING OUR UNIVERSITY'S MISSION REQUIRED THE TIRELESS EFFORTS OF OUR ENTIRE COMMUNITY, ALONG WITH THE SWIFT RE-DEPLOYMENT OF RESOURCES AND FUNDING TO SUPPORT THESE EFFORTS. OUR FACULTY ADAPTED COURSES INTO CREATIVE ONLINE FORMATS TO SUPPORT STUDENTS FROM A DISTANCE. STAFF MEMBERS SUPPORTED OUR RESEARCH RESTART AND LAUNCHED OUR TESTING PROTOCOLS, ALL WHILE CONTINUING THE MANY OTHER VITAL DAY-TO-DAY OPERATIONS OF THE UNIVERSITY. OUR STUDENTS, BOTH REMOTE AND ON-CAMPUS, SHOWED REMARKABLE FLEXIBILITY IN ENGAGING WITH THE NEW MODES OF LEARNING, AND FOUND NEW WAYS TO CONNECT WITH ONE ANOTHER. AT THE END OF A DIFFICULT YEAR, WE WERE DELIGHTED TO CELEBRATE AN IN-PERSON COMMENCEMENT CEREMONY FOR OUR GRADUATING SENIORS, ADVANCED DEGREE RECIPIENTS, AND THEIR LOVED ONES. AS MANY OF OUR OPERATIONS MOVED ONLINE, WE EXTENDED OUR REACH AND BROADENED ACCESS TO STANFORD'S RESOURCES IN HEALTH CARE, EDUCATION, RESEARCH, THE ARTS, AND MORE. TELEMEDICINE VISITS HAVE ACCELERATED DRAMATICALLY: BEFORE THE PANDEMIC, STANFORD MEDICINE PROVIDED 2,800 TELEHEALTH CONSULTS A MONTH; BY THE PEAK OF THE PANDEMIC, IT WAS PROVIDING 60,000 A MONTH. STANFORD ARTS MOVED CONTENT AND RESOURCES ONLINE, MAKING ACCESS TO THE ARTS BROADLY AVAILABLE AT A TIME WHEN PEOPLE IN OUR COMMUNITY AND BEYOND NEEDED THE MEANING AND COMFORT THAT THE ARTS CAN PROVIDE. SECOND, EVEN AS WE WORKED TO SUSTAIN AND BROADEN THE REACH OF OUR MISSION, WE FOCUSED ON CONTRIBUTING TO THE GLOBAL RECOVERY. AT STANFORD MEDICINE, CLINICIANS, RESEARCHERS, AND STAFF HAVE WORKED TIRELESSLY TO CARE FOR PATIENTS, STUDY THE DISEASE, DEVELOP TREATMENTS AND THERAPIES, AND PROVIDE TESTING AND VACCINATION FOR OUR COMMUNITY. OUTSIDE OF MEDICINE, RESEARCHERS IN THE HUMANITIES, SOCIAL SCIENCES, AND OTHER FIELDS WORKED TO IMPROVE REMOTE EDUCATION, REDUCING THE SPREAD OF COVID-19 AMONG INCARCERATED POPULATIONS, AND UNDERSTAND HOW PANDEMICS EXACERBATE DISPARITIES AND INEQUITIES. OVER THE PAST YEAR, WE'VE TAKEN MEANINGFUL STEPS TOWARD OUR GOALS OF ADVANCING A MORE JUST SOCIETY THROUGH EDUCATION AND RESEARCH AND COUNTERING RACISM WITHIN OUR OWN COMMUNITY. THIS WORK IS LED THROUGH OUR INCLUSION, DIVERSITY, EQUITY, AND ACCESS IN A LEARNING ENVIRONMENT (IDEAL) INITIATIVE, WHICH IS THE FOCAL POINT OF OUR EFFORTS TO ACHIEVE CHANGE. THESE EFFORTS HAVE INCLUDED SELECTING OUR FIRST COHORT OF IDEAL PROVOSTIAL FELLOWS - A GROUP OF PROMISING YOUNG SCHOLARS IN RACE AND ETHNICITY - AND ESTABLISHING A COMMUNITY BOARD ON PUBLIC SAFETY TO ENSURE THAT THE UNIVERSITY'S PUBLIC SAFETY POLICIES AND PRACTICES ARE CONSISTENT WITH OUR VALUES. IN APRIL 2021, STANFORD ALSO BECAME THE FIRST U.S. COLLEGE OR UNIVERSITY TO ISSUE BONDS CARRYING DUAL CLIMATE AND SUSTAINABILITY DESIGNATIONS. THE BONDS ARE ROOTED IN OUR COMMITMENT TO PROMOTING ACCESS AND INCLUSION AND TACKLING ENVIRONMENTAL CHALLENGES. THEY ARE HELPING FINANCE PROJECTS THAT SUPPORT THE UNIVERSITY'S DIVERSITY AND EQUITY GOALS, IMPROVE ACCESS TO HEALTHCARE AND HOUSING, AND ACHIEVE OUR SUSTAINABILITY GOALS. PROVIDING SUPPORT FOR OUR STANFORD COMMUNITY HAS BEEN A CRITICAL PRIORITY THIS YEAR. THE PANDEMIC HAS DEEPLY AFFECTED ALL OF US, BUT IT HAS HIT SOME MEMBERS OF OUR COMMUNITY HARDER THAN OTHERS. AT A UNIVERSITY LEVEL, WE'VE INCREASED FINANCIAL SUPPORT FOR STUDENTS AND FAMILIES WHO HAVE BEEN PARTICULARLY AFFECTED BY THE PANDEMIC. WE HAVE ALSO TAKEN STEPS TO MITIGATE THE DISPARITIES BY EXTENDING THE TENURE CLOCK, ADDING A POST-PANDEMIC RESEARCH QUARTER FOR JUNIOR FACULTY, AND EXPANDING LEAVE TIME FOR CAREGIVING AND WELLNESS. OUR COMMUNITY HAS EMBRACED A SPIRIT OF COLLECTIVE RESPONSIBILITY TO KEEP ONE ANOTHER SAFE AND TO MAKE OUR WORLD BETTER OVER THE LAST YEAR - FROM OUR COVID-19 RESPONSE; TO OUR COMMITMENT TO DIVERSITY, INCLUSION, AND EQUITY; TO OUR WORK TO PREPARE OUR STUDENTS TO BE ENGAGED CITIZENS AND PURPOSEFUL LEADERS. THOUGH THIS HAS BEEN A TIME OF GREAT CHALLENGE, THE CRISIS HAS ADDED MOMENTUM TO THE UNIVERSITY'S MISSION AND DEMONSTRATED HOW SCHOLARSHIP, INNOVATION, EDUCATION, AND PATIENT CARE CAN CONTRIBUTE TO A BETTER WORLD FOR ALL. |
| FORM 990 PART IV, LINES 12A AND 12B |
AUDIT OF FINANCIAL STATEMENTS STANFORD'S CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED AUGUST 31, 2021 AND AUGUST 31, 2020 WERE AUDITED BY THE ACCOUNTING FIRM OF PRICEWATERHOUSECOOPERS ("PWC"). AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, THE UNIVERSITY'S FINANCIAL STATEMENTS ARE PREPARED ON A CONSOLIDATED BASIS AND REFLECT THE COMBINED FINANCIAL POSITION AND RESULTS OF THE UNIVERSITY, STANFORD HEALTH CARE AND LUCILE SALTER PACKARD CHILDREN'S HOSPITAL AT STANFORD, INCLUDING THEIR RESPECTIVE CONTROLLED AFFILIATES. IN ADDITION, THE FINANCIAL STATEMENTS PRESENT CONSOLIDATING STATEMENTS THAT DISCLOSE SEPARATELY THE ACCOUNTS OF THE UNIVERSITY AND ITS CONSOLIDATED SUBSIDIARIES. UNDER SEPARATE COVER, THE CONTROLLED AFFILIATES PROVIDE AUDITED FINANCIAL STATEMENTS OF THEIR OWN ACCOUNTS. PWC UTILIZES SEPARATE AUDIT TEAMS TO CONDUCT THE AUDIT ENGAGEMENTS OF STANFORD AND EACH OF THE CONSOLIDATED SUBSIDIARIES. EACH AUDIT IS CONDUCTED BY QUALIFIED PROFESSIONAL ACCOUNTANTS WITH AUDIT PLANS DESIGNED FROM THE SEPARATE ACCOUNTS FOR THE RESPECTIVE ENTITIES, IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. |
| FORM 990, PART V, LINE 4B |
STANFORD HAS AN INTEREST IN OR SIGNATURE AUTHORITY OVER BANK AND/OR INVESTMENT ACCOUNTS IN THE FOLLOWING COUNTRIES: CAYMAN ISLANDS; CHILE; CHINA; FRANCE; GERMANY; GHANA; HONG KONG; INDIA; ITALY; JAPAN; JERSEY; KENYA; MAURITIUS; SOUTH AFRICA; SOUTH KOREA; SPAIN; UNITED KINGDOM. |
| FORM 990, PART VI, SECTION A, LINE 2 |
BUSINESS RELATIONSHIPS THE FOLLOWING INDIVIDUALS LISTED ON PART VII HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER: - ANEEL BHUSRI IS THE CEO OF WORKDAY, INC., WHERE JERRY YANG ALSO SERVES AS A BOARD MEMBER. - KAVITARK RAM SHRIRAM IS A DIRECTOR OF ALPHABET INC. AND GOOGLE INC., WHERE RUTH PORAT SERVES AS CHIEF FINANCIAL OFFICER. - MICHAEL C. CAMUNEZ SERVES AS A BOARD MEMBER OF AMPLIFY, INC., WHICH IS MAJORITY OWNED BY AN AFFILIATE OF EMERSON COLLECTIVE, OWNED BY LAURENE POWELL-JOBS. FORM 990, PART VI, SECTION A, LINE 5 DURING FISCAL YEAR ENDED AUGUST 31, 2021, A FORMER UNIVERSITY EMPLOYEE PLEADED GUILTY TO FEDERAL CHARGES RELATED TO ONE COUNT OF FEDERAL PROGRAM THEFT, RELATED TO THE THEFT OF LAPTOPS FROM STANFORD UNIVERSITY. THE UNIVERSITY COOPERATED WITH THE INVESTIGATION BY LAW ENFORCEMENT AND ADDITIONALLY CONDUCTED A THOROUGH INTERNAL INVESTIGATION. STANFORD ESTIMATES THE TOTAL LOSS TO BE $4.9 MILLION. BASED UPON THE RESULTS OF THE INTERNAL INVESTIGATION THE UNIVERSITY HAS UNDERTAKEN CORRECTIVE ACTIONS, INCLUDING AN ETHICS AND COMPLIANCE DISCUSSION TRAINING FOCUSING ON THE UNIVERSITY'S CODE OF CONDUCT, THE HELPLINE, AND THE IMPORTANCE OF SPEAKING UP, AND THE LAUNCH OF A UNIVERSITY-WIDE PROGRAM TO ENGAGE IN CONTINUOUS IMPROVEMENT OF ITS FINANCIAL STEWARDSHIP INFRASTRUCTURE. |
| FORM 990, PART VI, SECTION B, LINES 11A & B |
REVIEW OF THE FORM 990 THE FORM 990 IS PREPARED BY THE UNIVERSITY'S TAX DEPARTMENT IN CONSULTATION WITH STAKEHOLDERS INTERNAL TO FINANCIAL MANAGEMENT SERVICES AND ACROSS THE UNIVERSITY INCLUDING OFFICE OF DEVELOPMENT, THE OFFICE OF GENERAL COUNSEL, STANFORD MANAGEMENT COMPANY AND UNIVERSITY HUMAN RESOURCES. THE RETURN IS REVIEWED BY EXTERNAL ACCOUNTANTS, OUTSIDE COUNSEL, AND INTERNALLY WITH SENIOR MANAGEMENT INCLUDING THE SENIOR ASSOCIATE VICE PRESIDENT FOR FINANCE, THE CONTROLLER, THE TREASURER AND STANFORD MANAGEMENT COMPANY. THE RETURN IS THEN DISTRIBUTED TO THE BOARD COMMITTEE ON AUDIT, COMPLIANCE AND RISK FOR THEIR REVIEW IN ADVANCE OF THE COMMITTEE MEETING. THE COMMITTEE IS OFFERED AN OPPORTUNITY TO ASK QUESTIONS BOTH AT THE MEETING AND ANYTIME THEREAFTER. SUBSEQUENT TO THE MEETING, A COMPLETE COPY OF THE FORM 990 IS DISTRIBUTED TO THE FULL BOARD OF TRUSTEES PRIOR TO FILING WITH THE IRS. |
| FORM 990, PART VI, SECTION B, LINE 12C |
CONFLICT OF INTEREST MEMBERS OF THE UNIVERSITY'S BOARD OF TRUSTEES ("TRUSTEES"), OFFICERS AND FACULTY MAY, FROM TIME TO TIME, BE ASSOCIATED, EITHER DIRECTLY OR INDIRECTLY, WITH ENTITIES DOING BUSINESS WITH THE UNIVERSITY. THE UNIVERSITY HAS CONFLICT OF INTEREST POLICIES THAT ARE STRICTLY ENFORCED TO ENSURE THAT ALL TRANSACTIONS WITH THESE PARTIES ARE ARM'S LENGTH, AND THERE IS NO FAVORABLE TREATMENT AS A RESULT OF THESE RELATIONSHIPS. CONFLICTS OF INTEREST ARE REGULARLY MONITORED, AND APPLICABLE POLICY IS CONSISTENTLY ENFORCED. UNIVERSITY-WIDE COMPLIANCE INITIATIVES INCLUDE TRAINING AND DOCUMENTATION, REQUIRED ANNUAL DISCLOSURE AND FOLLOW-UP; MANAGEMENT CONTROLS; ENTERPRISE RISK MANAGEMENT; REGULAR INTERNAL AND EXTERNAL AUDITS; WHISTLE-BLOWER PROVISIONS; SUPERVISION; AND REVIEW. PERCEIVED VIOLATIONS WOULD BE INVESTIGATED AND ADDRESSED AS APPROPRIATE THROUGH VARIOUS SANCTIONS, INCLUDING FINANCIAL PENALTIES AND TERMINATION, DEPENDING UPON THE NATURE AND DEGREE OF THE CONFLICT. FOR OFFICERS, THE UNIVERSITY REQUIRES ANNUAL DISCLOSURE OF SIGNIFICANT FINANCIAL INTERESTS IN EMPLOYMENT OR CONSULTING RELATIONSHIPS WITH ENTITIES DOING BUSINESS WITH THE UNIVERSITY. THESE ANNUAL DISCLOSURES COVER BOTH OFFICERS AND THEIR IMMEDIATE FAMILY. WHEN SUCH ASSOCIATIONS EXIST, MEASURES ARE TAKEN TO APPROPRIATELY MANAGE, IN THE BEST INTERESTS OF THE UNIVERSITY, ANY ACTUAL OR PERCEIVED CONFLICT. FACULTY MUST COMPLY WITH THE FACULTY CONFLICT OF INTEREST POLICY, WHICH REQUIRES ANNUAL CERTIFICATION OF COMPLIANCE WITH THE POLICY AND DISCLOSURE OF INTERESTS IN OUTSIDE ENTITIES THAT ARE SPONSORS OF THEIR TEACHING OR RESEARCH OR OTHER TRANSACTIONS WITH THE UNIVERSITY IN WHICH THEY ARE INVOLVED. ALL PERSONAL FINANCIAL INTERESTS RELATED TO STANFORD ACTIVITIES MUST BE REPORTED, REGARDLESS OF DOLLAR AMOUNT. FOR TRUSTEES, THE UNIVERSITY HAS A WRITTEN CONFLICT OF INTEREST POLICY THAT REQUIRES, AMONG OTHER THINGS, THAT NO MEMBER OF THE BOARD OF TRUSTEES IS PERMITTED TO PARTICIPATE IN ANY DECISION RELATING TO AN ENTITY IN WHICH HE OR SHE (OR AN IMMEDIATE FAMILY MEMBER) HAS A MATERIAL FINANCIAL INTEREST. THE CONFLICT OF INTEREST POLICY ALSO PRECLUDES THE UNIVERSITY FROM ENTERING INTO CERTAIN TRANSACTIONS WITH AN ENTITY IN WHICH A TRUSTEE HAS A MATERIAL FINANCIAL INTEREST UNLESS MEASURES ARE TAKEN TO MITIGATE ANY ACTUAL OR PERCEIVED CONFLICT. NAMELY, THE POLICY REQUIRES THAT SUCH TRANSACTIONS ARE CONDUCTED AT ARM'S LENGTH, FOR GOOD AND SUFFICIENT CONSIDERATION, BASED ON TERMS THAT ARE FAIR AND REASONABLE TO AND FOR THE BENEFIT OF THE UNIVERSITY, AND OTHERWISE IN ACCORDANCE WITH SOUND CONFLICT MANAGEMENT PRACTICES. THE CONFLICT OF INTEREST POLICY REQUIRES EACH TRUSTEE TO CERTIFY COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS. |
| FORM 990, PART VI, SECTION B, LINE 15 |
COMPENSATION DETERMINATION THE ANNUAL PROCESS FOR DETERMINING COMPENSATION OF BOTH THE TOP MANAGEMENT OFFICIAL (PRESIDENT OF THE UNIVERSITY) AND OF OTHER OFFICERS/KEY EMPLOYEES INCLUDES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, USE OF COMPARABILITY DATA AND CONTEMPORANEOUS DOCUMENTATION OF THE DELIBERATION AND DECISION. IN THE CASE OF THE UNIVERSITY'S PRESIDENT, THE VICE PRESIDENT FOR HUMAN RESOURCES, AT A PRELIMINARY MEETING WITH A SUBCOMMITTEE OF THE BOARD COMMITTEE ON COMPENSATION, INCLUDING NON-EMPLOYEE TRUSTEES, PRESENTS AN ANALYSIS OF CURRENT RELEVANT MARKET DATA, CONTAINING SALARY INFORMATION OF INDIVIDUALS SERVING IN A COMPARABLE POSITION, OBTAINED FROM AN INDEPENDENT HUMAN RESOURCE CONSULTING FIRM. THE SAME MATERIALS ARE SENT TO THE FULL COMMITTEE. AT THE MEETING OF THE FULL COMMITTEE AND IN THE ABSENCE OF THE PRESIDENT, DISCUSSION OCCURS PRIOR TO A VOTE. MINUTES OF ALL MEETINGS ARE ON FILE IN THE OFFICE OF THE VICE PRESIDENT FOR HUMAN RESOURCES. IN THE CASE OF OTHER OFFICERS/KEY EMPLOYEES, PER GUIDELINES IN THE COMMITTEE'S EXECUTIVE COMPENSATION POLICY AND PROCEDURES DOCUMENT, EACH YEAR THE VICE PRESIDENT FOR HUMAN RESOURCES PROVIDES CURRENT RELEVANT MARKET DATA AND THE HISTORICAL PAY INFORMATION RELATING TO THESE PERSONS TO THE PRESIDENT OR TO THE PROVOST BASED ON THE REPORTING STRUCTURE. THE PRESIDENT AND PROVOST PROPOSE CHANGES IN COMPENSATION BASED ON EACH INDIVIDUAL'S PERFORMANCE AND ON THE MARKET DATA. THE COMMITTEE ON COMPENSATION REVIEWS THE RECOMMENDATIONS AND, FOLLOWING DISCUSSION, APPROVES THE RECOMMENDATIONS AS SUBMITTED OR WITH MODIFICATIONS. MINUTES OF THE MEETING ARE ON FILE IN THE OFFICE OF THE VICE PRESIDENT FOR HUMAN RESOURCES. |
| FORM 990, PART VI, SECTION C, LINE 19 |
STANFORD UNIVERSITY MAKES ITS FOUNDING GRANT, FACULTY AND STAFF CONFLICT OF INTEREST POLICIES, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC THROUGH STANFORD'S WEBSITE, AND UPON REQUEST TO THE OFFICE OF UNIVERSITY COMMUNICATIONS. |
| FORM 990, PART VII, SECTION A, COLUMN B |
HOURS FOR RELATED ORGANIZATIONS IN CONNECTION WITH THEIR POSITIONS AT STANFORD, CERTAIN LISTED INDIVIDUALS MAY, FROM TIME TO TIME, PARTICIPATE IN ACTIVITIES OF A RELATED ORGANIZATION. WHERE THE LISTED INDIVIDUALS ARE TRUSTEES, DIRECTORS, OFFICERS, OR EMPLOYEES OF THE RELATED ORGANIZATION, THE TIME DEVOTED TO THE RELATED ORGANIZATION BY SUCH INDIVIDUALS IS GENERALLY REPORTED AS RELATED ORGANIZATION HOURS IN PART VII, SECTION A, LINE 1A, COLUMN (B), BELOW THE DOTTED LINE. IN ALL OTHER CASES, THE HOURS IN CONNECTION WITH SUCH PARTICIPATION ARE INCLUDED IN THE HOURS REPORTED FOR THE INDIVIDUALS' POSITIONS AT STANFORD UNIVERSITY IN PART VII, SECTION A, LINE 1A, COLUMN (B), ABOVE THE DOTTED LINE. |
| FORM 990, PART VII, SECTION B |
INDEPENDENT CONTRACTORS IN THE PRESENTATION OF THE DATA APPEARING IN FORM 990, PART VII, SECTION B, STANFORD REPORTS DIRECT CASH COMPENSATION PAID TO PROFESSIONAL INDEPENDENT CONTRACTORS. COMMISSIONS, DISCOUNTS, AND MANAGEMENT FEES EMBEDDED IN AND/OR DEDUCTED FROM INVESTMENT RETURNS AND AMOUNTS PROVIDED TO VENTURE CAPITAL, PRIVATE EQUITY, AND HEDGE FUND GENERAL PARTNERS DUE TO THEIR "CARRIED INTEREST" IN PARTNERSHIPS IN WHICH STANFORD PARTICIPATES ARE NOT CONSIDERED IN THIS REPORTING. |
| FORM 990, PART XI, LINE 9 |
OTHER CHANGES IN NET ASSETS OR FUND BALANCES CHANGE IN POST RETIREMENT BENEFIT OBLIGATION $101,474,000 CHANGE IN VALUE OF SPLIT INTEREST (119,226,920) NET HOSPITAL TRANSFERS 150,026,714 CHANGE IN VALUE OF SWAP AGREEMENTS 7,077,469 CHANGE IN NON-CONTROLLING INTEREST (19,056,354) ------------------------- $120,294,909 |
Attach to Form 990 or 990-EZ.