2020 ANNUAL REPORTING TO THE STATE OF CONNECTICUT The documentation included in the 2020 Annual Reporting to the State of Connecticut for the University of Connecticut Foundation, Incorporated is submitted in accordance with Public Act No. 16-93 Section 4-37f. November 19, 2020 Submitted by Scott M. Roberts President and CEO Table of Contents Introduction by UConn Foundation President and CEO Scott M. Roberts ......................................3 FY2020 Auditor’s Opinion on Conformance of Operating Procedures ........................................ 4 Officers and Members of the UConn Foundation Board of Directors ..........................................5 2020 Annual Report .................................................................................... 6 FY2020 Audited Financial Statements, Management Letter, and Audit Reports of the UConn Foundation ....... 22 Internal Control Observations. 47 Agreement between UConn and the UConn Foundation ................................................... 52 Whistleblower Policy of the UConn Foundation ........................................................... 74 Conflicts of Interest Policy of the UConn Foundation ...................................................... 77 FY2019 UConn Foundation IRS Form 990 ................................................................84 Bylaws of the UConn Foundation .......................................................................144 FY2020 Summary of Disbursements to UConn Supported by the UConn Foundation .........................157 FY2020 Report of UConn Salary, Wages, and Fringe Benefit Expenses Supported by the UConn Foundation. .158 FY2020 Donor List ....................................................................................184 FY2020 Honorary Named Positions, Institutes, Centers, and Facilities ......................................283 2 Introduction by UConn Foundation President and CEO Scott M. Roberts Enclosed is the documentation required by Public Act No. 16-93 Section 4-37f for the University of Connecticut Foundation, Incorporated for fiscal year 2020 (July 1, 2019 to June 30, 2020). As required by the Act, the documentation has been submitted to the executive authority of the University of Connecticut, the Office of the Attorney General (audit report only), the joint standing committee of the General Assembly having cognizance of matters relating to higher education, the speaker of the House of Representatives, the president pro tempore of the Senate, the majority and minority leaders of the Senate and the majority, minority leaders of the House of Representatives, the clerks of the Senate and House of Representatives, the Office of Legislative Research, and the state librarian. Public Act No. 16-93 Section 4-37f also requires that the UConn Foundation use reasonable efforts to raise gifts and commitments for student support—scholarships, fellowships, awards, and prizes—equal to no less than 15 percent of the total funds raised each fiscal year. During fiscal 2020, the UConn Foundation raised $89.5 million, including $23.1 million for student scholarships and fellowships. Student support represented 26 percent of the total dollars raised. Scott M. Roberts President and CEO 3 FY2020 Auditor’s Opinion on Conformance of Operating Procedures 4 Officers and Members of the UConn Foundation Board of Directors Ray Allen OFFICERS George R. Aylward ’88 (BUS) John P. Malfettone ’77 (BUS), Chair Mark Beaudoin ’82 (BUS) Michael Koppel ’78 (BUS), Treasurer Alan Bennett ’69 (CLAS) Adam L. Schwartz ’97 JD, Secretary Melinda T. Brown ’77 (BUS), ’85 MBA Scott M. Roberts, President and CEO, UConn Noha H. Carrington ’85 (BUS) Foundation William Clemens III ’89 (CLAS), ’98 MBA Gerald J. Ganz, Jr., Senior VP of Finance & Sue A. Collins Administration and CFO, UConn Foundation Leah Darak, MD ’95 (MED residency) Jake Lemon, Senior VP for Development, UConn Angelo DeFazio ’85 (PHR) Foundation Craig A. Douglas ’77 (BUS) Amy Errett ’79 (CLAS) EX-OFFICIO Drew Figdor ’83 (BUS) Thomas C. Katsouleas, President, UConn David H. Ford ’88 (CLAS) John Elliott, Interim Provost, UConn Albert J. Foreman ’95 (BUS) Andrew Agwunobi, MD, CEO of UConn Health and EVP Jonathan Greenblatt ’77 (CLAS) for Health Affairs Steven Greenspan ’85 JD Scott Jordan, CFO and EVP for Administration, UConn Debra Hess ’86 (BUS) David Benedict, Athletic Director Michael Koppel ’78 (BUS) Andrea B. Dennis-LaVigne, DVM ‘03 (CCS), University John P. Malfettone ’77 (BUS) Board of Trustees Kimberly T. Manning ’83 (CLAS) Becca Colby, Student Representative Benjamin W. Michelson ’96 (BUS) Michael Willig, Faculty Representative Joseph Parsons ’79 (BUS) William J. Quinlan III ’92 JD Lori Riiska ’84 (BUS) Anthony Rizza ’87 (BUS) Michael Rosen ’89 (CLAS), ’93 MD Adam L. Schwartz ’97 JD Robert I. Sherman ’79 (BUS) Nadine Francis West ’89 JD James F. Whalen Jr. ’82 (BUS) Harriet Munrett Wolfe, Esq. ’76 (CLAS) 5 2020 Annual Report 6 2020 Annual Report continued 7 2020 Annual Report continued 8 2020 Annual Report continued 9 2020 Annual Report continued 10 2020 Annual Report continued 11 2020 Annual Report continued 12 2020 Annual Report continued 13 2020 Annual Report continued 14 2020 Annual Report continued 15 2020 Annual Report continued 16 2020 Annual Report continued 17 2020 Annual Report continued 18 2020 Annual Report continued 19 2020 Annual Report continued 20 2020 Annual Report continued 21 FY2020 Audited Financial Statements, Management Letter, and Audit Reports of the UConn Foundation The University of Connecticut Foundation, Incorporated Financial Statements June 30, 2020 and 2019 22 FY2020 Audited Financial Statements, Management Letter, and Audit Reports of the UConn Foundation continued The University of Connecticut Foundation, Incorporated Index June 30, 2020 and 2019 Page REPORT OF INDEPENDENT AUDITORS ………………………………………………………1 FINANCIAL STATEMENTS Statement of Financial Position………..……………………………………………………. 2 Statement of Activities ……………………………………………………………….…..……3 Statement of Cash Flows……………………………………………………………….….…. 4 Notes to the Financial Statements…………………………………………………………... 5-23 23 FY2020 Audited Financial Statements, Management Letter, and Audit Reports of the UConn Foundation continued Report of Independent Auditors To the Board of Directors of The University of Connecticut Foundation, Incorporated We have audited the accompanying financial statements of The University of Connecticut Foundation, , which comprise the statements of financial position as of June 30, 2020 and 2019, and the related statements of activities and of cash flows for the years ended June 30, 2020 and 2019. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Foundation presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The University of Connecticut Foundation, Incorporated as of June 30, 2020 and 2019, and the changes in its net assets and its cash flows for the years ended June 30, 2020 and 2019 in accordance with accounting principles generally accepted in the United States of America. October 2 , 2020 Hartford, CT 24 FY2020 Audited Financial Statements, Management Letter, and Audit Reports of the UConn Foundation continued The University of Connecticut Foundation, Incorporated Statement of Financial Position June 30, 2020 and 2019 2020 2019 Assets Cash and cash equivalents $ 28,726,132 $ 15,897,891 Pledges receivable, net (Note 2) 21,707,610 19,018,122 Investments, operating (Note 3) 106,608,546 106,361,629 Investments, endowment (Note 3) 427,535,015 423,100,387 Funds held in trust by others 10,422,178 11,906,914 Endowments held for the University 15,187,090 15,059,023 Cash surrender value of life insurance (Note 4) 570,798 585,876 Property and equipment, net (Note 5) 4,277,196