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 V  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: Correspondence from Department of the Treasury, Internal Revenue Service, dated 8/19/99. Exhibit B: Correspondence from Oswald Stender, dated 7/30/99, regarding resignation. Exhibit C: Correspondence from Gerard Jervis, dated 8/19/99, regarding resignation. 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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