| Form 990, Part III, Line 1 |
Seton Hall University (the "University") is the nation's oldest Diocesan Catholic University. In a diverse and collaborative environment, it focuses on academic, ethical, and spiritual development. Seton Hall students are prepared to be leaders in their professional and community lives in a global society and are challenged by outstanding faculty, a technologically advanced setting, and values-centered curricula. The University is home to ten nationally recognized and accredited schools located on three campuses, all within 15 miles of New York City. Its main campus is in South Orange, New Jersey, its nationally ranked Law School is in Newark, New Jersey, and its Interprofessional Health Sciences ("IHS") campus is in the City of Clifton and the Township of Nutley, New Jersey. Within these ten schools, the professors of Seton Hall educate, shape and develop approximately 5,900 undergraduate and 3,900 graduate students, who are enrolled in more than 90 rigorous majors. This has led to the University being nationally recognized for academic excellence by the Princeton Review, U.S. News and World Report, and Bloomberg Businessweek. The University remains a pioneer in Catholic education. In June 2015, the University and Hackensack University Health Network ("HUHN"), acting on behalf of Hackensack University Medical Center ("HUMC"), signed an agreement to establish the principle elements of a long-term relationship to develop an undergraduate school of medicine, as well as sponsor graduate medical education programs. In October 2015, the University and HUMC formed Kingsland Street Urban Renewal, LLC ("Kingsland") for the purposes of leasing and renovating a location for the University's new IHS campus, which was to house the school of medicine, as well as the University's College of Nursing("CON") and School of Health and Medical Sciences ("SHMS"). Kingsland executed the lease in June 2016, with lease commencement in September 2016. Through March 18, 2018, the University had a 50% membership interest in Kingsland. Kingsland is exempt from federal income taxes under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3). In January 2016, the University and HUHN formed the Seton Hall-Hackensack School of Medicine, a nonprofit New Jersey corporation. HUHN subsequently became Hackensack Meridian Health, Inc. ("HMH") after its merger with Meridian Health System, Inc. in July 2016. In March 2017, an agreement was reached between HMH and the University that superseded the June 2015 agreement. Under this agreement, both the University and HMH controlled 50% of the School of Medicine, and the name of the school was changed to the Seton Hall-Hackensack Meridian School of Medicine ("SOM"). The SOM is exempt from federal income taxes under Section 501(a) of the Internal Revenue Code as an organization described in Section 501(c)(3). The University agreed to offer, under its existing accreditations and regulatory approvals, the SOM academic degree program (the "MD Program"). The University received preliminary accreditation from the Liaison Committee on Medical Education (the "LCME")to operate the MD program in February 2018. The MD program commenced academic operations in July 2018 with the University being the degree-granting institution. On March 19, 2018, the University and HMH reached an agreement for the transition of the MD Program and the full control of the SOM to HMH. Under this agreement, the University's membership interest in Kingsland was transferred to HMH and all costs associated with the Kingsland lease were assumed by HMH, with a sublease established with the University. In addition, the entire financial responsibility for the SOM was transferred to HMH effective July 1, 2018, although the University continued to perform certain administrative functions for the SOM. The name of the MD Program was changed to the Hackensack Meridian School of Medicine at Seton Hall University. The University retained full control of academic matters associated with the MD Program until such time as the SOM earned independent accreditation as a standalone entity with the LCME and Middle States, and the appropriate actions had taken place related to all other applicable regulatory bodies. In June 2020, the University was notified by HMH that HMH and the SOM had obtained all the accreditations and regulatory approvals necessary for the SOM to operate the MD Program as a standalone medical school, independent of the University's accreditation. Effective July 3, 2020, control of the MD Program was transferred to HMH. The University is no longer the degree granting institution. The name of the MD Program was changed to the Hackensack Meridian School of Medicine ("HMSOM"). Academic and administrative functions provided by the University were terminated, apart from certain limited functions that could not be completed by July 3, 2020. In addition, the University, HMH and HMSOM entered into a release and indemnification agreement to hold each other harmless for certain claims that arose prior to July 3, 2020 and that may arise subsequent to that date. The Strategic Academic Partnership Agreement entered into between the University, HMH and the SOM prior to July 3, 2020 shall remain in effect. The University will remain a strategic academic partner of HMH and the HMSOM whereby the University and the HMSOM will have an integrated curriculum, 25% of the seats in each class of the MD Program will be reserved for University graduates who reside in New Jersey, provided they meet the standards of admission set by the HMSOM, and the University's CON and SHMS students will continue to have broad access to train at HMH hospitals. In addition, the University and HMH will co-own the IHS campus when the Kingsland lease and the University's sublease expire. Robert C. Garrett, Regent, is the CEO at HMH, and also on the Board of Governors of the SOM. The University and HMH are strategic academic partners in the SOM. Neither HMH nor the SOM are considered related parties of the University. |
| Form 990, Part VI |
PART VI, SECTION A, LINE 7A: THE BOARD OF REGENTS IS RESPONSIBLE FOR THE ENTIRE MANAGEMENT OF THE AFFAIRS AND CONCERNS OF THE UNIVERSITY. THE BOARD OF REGENTS IS VESTED WITH THE RESPONSIBILITY, POWER, AND AUTHORITY TO GOVERN THE UNIVERSITY AND SHALL EXERCISE THE CORPORATE POWERS OF THE UNIVERSITY UNDER LAW. BOARD OF REGENT EMERITI DO NOT HAVE VOTING PRIVILEGES. PART VI, SECTION A, LINE 7B: THE BOARD OF TRUSTEES STAND IN THE STEAD OF THE ORIGINAL INCORPORATORS OF SETON HALL COLLEGE AND HAVE THE RIGHTS AND POWERS RESERVED TO IT BY THE UNIVERSITY'S BY-LAWS. THOSE POWERS INCLUDE THE RIGHT TO AMEND THE UNIVERSITY'S ORGANIZING DOCUMENTS, TO AUTHORIZE THE SALE OF ANY UNIVERSITY PROPERTY AND, MOST IMPORTANTLY, TO ELECT THE BOARD OF REGENTS. PART VI, SECTION B, LINE 11: THE BOARD OF REGENTS ADOPTED A WRITTEN POLICY CHARGING THE AUDIT COMMITTEE WITH THE RESPONSIBILITY TO CONDUCT, ON AN ANNUAL BASIS, AN APPROPRIATE REVIEW OF THE UNIVERSITY'S COMPLETED FORM 990 AND FORM 990-T PRIOR TO FILING WITH INTERNAL REVENUE SERVICE. THE AUDIT COMMITTEE IS ALSO CHARGED WITH MAKING AN APPROPRIATE REPORT AND RECOMMENDATION TO THE BOARD OF REGENTS ON THEIR REVIEW. FOLLOWING REVIEW BY THE AUDIT COMMITTEE, FORMS 990 AND 990-T ARE SUBMITTED TO THE ENTIRE BOARD OF REGENTS FOR ITS REVIEW AND APPROVAL FOR FILING WITH THE INTERNAL REVENUE SERVICE. THE BOARD OF REGENTS SHALL CONTEMPORANEOUSLY DOCUMENT THE MEETING AT WHICH THE FORMS 990 AND 990-T ARE REVIEWED AND APPROVED FOR FILING. PART VI, SECTION B, LINE 12C: THE UNIVERSITY'S CONFLICT OF INTEREST POLICY IS POSTED ON THE UNIVERSITY'S WEB SITE. ALL NEW EMPLOYEES ARE MADE AWARE OF THE POLICY AT THE TIME OF HIRE. FOR SENIOR MANAGEMENT, THE UNIVERSITY REQUIRES AN ANNUAL DISCLOSURE OF SIGNIFICANT FINANCIAL INTERESTS IN, OR EMPLOYMENT OR CONSULTING RELATIONSHIPS WITH, ENTITIES DOING BUSINESS WITH THE UNIVERSITY. THESE ANNUAL DISCLOSURES COVER BOTH SENIOR MANAGEMENT AND THEIR IMMEDIATE FAMILY MEMBERS. WHEN SUCH RELATIONSHIPS EXIST, MEASURES ARE TAKEN TO ADDRESS THE ACTUAL OR PERCEIVED CONFLICT TO PROTECT THE BEST INTERESTS OF THE UNIVERSITY. THE POLICY REQUIRES, AMONG OTHER THINGS, THAT NO MEMBER OF THE BOARD OF REGENTS OR ITS COMMITTEES CAN PARTICIPATE IN ANY DECISION IN WHICH HE OR SHE (OR AN IMMEDIATE FAMILY MEMBER) HAS A MATERIAL FINANCIAL INTEREST. EACH REGENT IS REQUIRED TO CERTIFY COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS AND INDICATE WHETHER THE UNIVERSITY DOES BUSINESS WITH AN ENTITY IN WHICH A REGENT HAS A MATERIAL FINANCIAL INTEREST. WHEN SUCH RELATIONSHIPS EXIST, MEASURES ARE TAKEN TO MITIGATE ANY ACTUAL OR PERCEIVED CONFLICT, INCLUDING REQUIRING THAT SUCH TRANSACTIONS BE 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 IN ACCORDANCE WITH RELEVANT CONFLICT OF INTEREST LAWS. THE UNIVERSITY IS UNAWARE OF ANY SUCH ASSOCIATIONS CONSIDERED TO BE SIGNIFICANT. PART VI, SECTION B, LINE 15: SETON HALL UNIVERSITY CAN ENSURE AND DEMONSTRATE THAT OUR COMPENSATION ACTIONS DO NOT INURE TO THE BENEFIT OF A PRIVATE INDIVIDUAL. WE CAN DEMONSTRATE THAT THE COMPENSATION OF ALL DISQUALIFIED PERSONS, SUCH AS OFFICERS, DIRECTORS, AND KEY EMPLOYEES, IS CONSIDERED REASONABLE AND WOULD ORDINARILY BE PAID FOR LIKE SERVICES BY LIKE ENTERPRISES UNDER LIKE CIRCUMSTANCES. THE REASONABLENESS OF OUR COMPENSATION TAKES INTO ACCOUNT ALL BENEFITS. ANY COMPENSATION TRANSACTIONS FOR THESE INDIVIDUALS ARE APPROVED BY AN AUTHORIZED BODY OF INDIVIDUALS WHO HAVE NO CONFLICT OF INTEREST. UTILIZING A COMPENSATION CONSULTANT, APPROPRIATE COMPENSATION DATA IS RELIED UPON FOR COMPARABILITY AND PROOF OF FAIR MARKET VALUE, BEFORE MAKING A DECISION. COMPENSATION DECISIONS AND REPORTS ARE CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES OF THE MEETING OF THE COMMITTEE WHEN THE DECISIONS ARE MADE. PART VI, SECTION C, LINE 19: THE UNIVERSITY'S BY-LAWS AND ITS CONFLICT OF INTEREST POLICY ARE POSTED ON THE UNIVERSITY'S WEBSITE. |
| Form 990, Part VII, Section A |
Jon Paparsenos became VP for University Advancement on November 2, 2020. Matthew Borowick M.B.A. stepped down as Interim VP for University Advancement and became VP for University Relations on November 3, 2020. Michele Nelson, Ph.D. became VP for Board Affairs and Strategy in August 2020. Reverend Collin Kay became VP for Mission and Ministry on September 21, 2020. Monsignor C.Anthony Z. Ziccardi, S.T.D., S.S.L, stepped down as VP for Mission and Ministry on September 20, 2020. Kimberly A. Capadona, ESQ. became VP and General Counsel on April 27, 2020. Katia Passerini, PH.D. became Executive Vice President and Provost on June 5, 2020. Karen Boroff, PH.D. stepped down as Interim Provost on June 4, 2020. |
| Form 990, Part XI, Line 9 |
Provision for uncollectible contributions receivable of $177,000 less the change in value of split-interest agreements of $692,000. |
| COVID-19 PANDEMIC |
IN MARCH 2020, IN RESPONSE TO THE NOVEL CORONAVIRUS COVID-19 PANDEMIC, THE UNIVERSITY TRANSITIONED TO REMOTE LEARNING FOR ALL COURSES FOR THE REMAINDER OF THE SPRING TERM. FOR THE FALL 2020 TERM, THE UNIVERSITY INITIALLY REOPENED ITS CAMPUS USING SMALLER IN-PERSON CLASSES WITH SCREENING, SOCIAL DISTANCING, AND MASKING REQUIREMENTS, WHILE CONTINUING TO OFFER COURSES IN A VIRTUAL SETTING FOR THOSE THAT PREFER REMOTE COURSE LEARNING. HOWEVER, IN NOVEMBER 2020, IN RESPONSE TO AN INCREASE IN COVID-19 CASES IN NEW JERSEY, THE UNIVERSITY TRANSITIONED BACK TO REMOTE COURSE LEARNING FOR THE REMAINDER OF THE ACADEMIC YEAR. FOR THE FALL 2021 TERM, THE UNIVERSITY REOPENED ITS CAMPUS. The University continues to closely monitor government guidance and public statistics, and to refine safety protocols to address the changing health environment. During the fiscal years ended June 30, 2021 and 2020, the federal government provided higher education institutions with Higher Education Emergency Relief Funding ("HEERF"), which was allocated under various acts of Congress. The Coronavirus Aid, Relief, and Economic Securities Act ("CARES") was signed into law on March 27, 2020 and provided the University with total funding of $5,750,000 under HEERF I. The Coronavirus Response and Relief Supplemental Appropriations Act ("CRRSAA") was signed into law on December 27, 2020 and provided the University with total funding of $8,858,000 under HEERF II. The American Rescue Plan ("ARP") was signed into law on March 11, 2021. The University did not receive any funding under HEERF III in 2021. Each of these awards has a student aid portion and an institutional portion. The Department of Education provided required uses of the funds for both the student portion and institutional portion and until the conditions associated with those requirements are satisfied, revenue cannot be recognized, in accordance with ASU 2018-08. During the year ended June 30, 2021, the University incurred nonrecurring COVID-19 pandemic expenses of $9,555,000 for emergency grants to students under the HEERF program, shielding, ventilation improvements, personal protective equipment, safety barriers, COVID testing, quarantining, contact tracing, remote learning, additional dining services, cleaning, supplies, and signage. Also, during the year ended June 30, 2021, the University recognized HEERF student share revenues of $3,019,000, offsetting the emergency grants provided to students (see COVID-19 Relief Grants in Schedule I, Part III). |
Attach to Form 990 or 990-EZ.