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KS Closing Agreement Compliance Report

Closing Agreement


DEPARTMENT OF THE TREASURY - INTERNAL REVENUE SERVICE, ESTATE OF BERNICE PAUAHI BISHOP ALSO KNOWN AS, KAMEHAMEHA SCHOOLS BISHOP ESTATE CLOSING AGREEMENT ON FINAL DETERMINATION COVERING SPECIFIC MATTERS

Part A: Resolution of Audit Issues Relating to KSBE's Exempt Status (p. 11/33)

Part B: Settlement of Tax and UBIT Issues (p. 27/33)

Part C (p. 30/33)

ATTACHMENT I:  KSBE and KSBE Organizations

ATTACHMENT II: Support Income Tax Examination

ATTACHMENT 3: Order Granting Petition with Respect to Kamehameha Activities Association
and the Ke Ali'I Pauahi Scholarship Fund

ATTACHMENT 4: Recommendations for Trustee Selection Process

ATTACHMENT 5: Policy Title: Board of Trustees' Duties

ATTACHMENT 6: Procedure for Removal or Suspension of Trustees

ATTACHMENT 7: Organizational Chart

ATTACHMENT 8: Position Specification - Chief Executive Officer
Position Specification - Director, Internal Audit

ATTACHMENT 9: Procedures/Guidelines (I thru VI)

I    Definitions Associated with Trustee Conflicts of Interest Policy
II   Situations Which Could Lead to Trustee Conflicts of Interest
III  Guidelines to Address Trustee Conflicts of Interest
IV Violations of the Conflicts of Interest Policy
 Records of Proceedings
VI Disclosure of Financial and External Activities

ATTACHMENT 10: KSBE Spending Policy (8/19/99) - includes Appendix I below
Appendix I: Endowment Spending Rate Methodology

ATTACHMENT 11: Method of Compensation of Trustees

ATTACHMENT 12: Method of Compensation of Chief Executive Officer

ATTACHMENT 13: KSBE and KSBE Organizations Procurement Guiding Principles

TAB 3, APPENDIX 3: KSBE Supplemental Appendix to Form 1023,
Reaffirmation Submission FEIN: 99-0073480

Table of Contents (p. 2/38)
Background (p. 3/38)
Mission (p. 5/38)
Vision (p. 6/38)
Organizational Goals (p. 7/38)
Education Programs and Services (p. 8/38)
Strategic Planning (p. 12/38)
Spending and Investment Policy (p. 14/38)
Governance (p. 19/38)
Financial Reporting & Internal Controls (p. 29/38)
Order of Precedence (p. 38/38)

Exhibit A: Will of Bernice Pauahi Bishop and Codicil 1
Exhibit B: IRS National Office Technical Advice Memo.
Exhibit C: Stipulation Concerning Request for Proposals Pursuant to Stipulation No. 13
Exhibit D: KSBE Spending Policy (8/18/99)
Exhibit E: KSBE Investment Policy (8/18/99)
Exhibit F: Stipulations Concerning Master's Recommendations (109th, 110th, 111th Annual Accounts)
Exhibit G: Recommendations for Trustee Selection Process
Exhibit H: KSBE Governance Policy (in its entirety as follows)
Section 1: Governance Process
Section 2: Executive Boundaries
Section 3: Board - CEO Relationships
Section 4: Ends (Expected Outcomes)
Section 5: Internal Audit
Appendix A: Organizational Chart
Appendix B: Position Specs-CEO
Appendix C: Position Specs-President, KS
Appendix D: Position Specs-COO
Appendix E: Position Specs-Internal Audit Director
Exhibit I:  Organizational Chart
Exhibit J: Procedures/Guidelines (I through VI)
Exhibit K: Order Granting Petition for Approval of a Plan for Determining Trustee Compensation
Pursuant to Stipulation No. 15 for Creation of a Compensation Committee in Accordance
with the Plan
Exhibit L: Kamehameha Schools Bernice Pauahi Bishop Estate Consolidated Financial Statements,
June 30, 1997

Index
Report of Independent Accountants (p. 2)
Consolidated Statement of Financial Position (p. 4)
Consolidated Statement of Activity (p. 6)
Consolidated Statement of Cash Flows (p. 7)
Notes to the Consolidated Financial Statements (p. 9-66)
Schedule of Education Program Revenues and Expenses (p. 67)
Schedule of Trustees' Commissions (p. 68)
Schedule of Income Yield and Total Return (p. 69)
Schedule of Income Yield and Total Return 3-Year Annualized (p. 70)
Notes to Schedules of Income Yield and Total Return (p. 71)
Exhibit M: KSBE and KSBE Organizations Procurement Guiding Principles

TAB 4, APPENDIX 4:
Letter from the Internal Revenue Service to Interim Trustees, dated 8/19/99, Department of the Treasury-Internal Revenue Service, Estate of Bernice Pauahi Bishop, also known as, Kamehameha Schools, Closing Agreement on Final Determination Covering Specific Matters (pgs. 1-36)
TAB 5, APPENDIX 5:
Letter from Arthur Andersen to KSBE re: The estimated financial impact of the potential loss of recognition of Internal Revenue Code Section 501(c)(3) tax-exempt status for KSBE.
TAB 6, APPENDIX 6:
Letter from Arthur Andersen, dated 8/19/99, re the negotiated proposed closing agreement as of August 18, 1999 with representatives of the Internal Revenue Service.
TAB 7, APPENDIX 7:
Letter from Miller & Chevalier, dated 8/12/99, regarding the assessment of risks of litigating revocation issues.
Appendix A
TAB 8, APPENDIX 8:
Correspondence from PriceWaterhouse Coopers, dated 8/17/99.
TAB 9, APPENDIX 9:
Correspondence from Miller & Chevalier, dated 8/12/99, re: Settlement of KSBE Federal Income, Employment and Excise Tax Issues.
TAB 10, APPENDIX 10:
Correspondence from KSBE to the Internal Revenue Service, dated 8/16/99.
TAB 11, APPENDIX 11:

KS Closing Agreement Compliance Report

KS CA Compliance Report (.pdf)

IRS Closing Report to Court (.pdf)

- exhibit_A.pdf
-
exhibit_B.pdf
-
exhibit_C.pdf
-
exhibit_D.pdf


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