College files annual tax forms for fiscal year 2011
The College's fiscal year 2011 revenue totaled $959,207,208, an increase of about $95 million since the last fiscal year, according to the College's May 15 federal tax filing, the first filing reporting a full year of College President Jim Yong Kim's tenure. Out of the College's $894,960,993 in expenses, employee compensation and benefits totaled $439,093,629, the tax filing said.
The College submitted its Form 990 to the Internal Revenue Service on Tuesday. The document was signed for approval by College Controller Gail Goodness and is available for public inspection through the controller's office, according to Director of Media Relations Justin Anderson.
The College had a net budget gain of $64,246,215, the first net gain in two years. In fiscal year 2010, the College faced a net loss of $5,770,479 while the prior year saw a net loss of $222,078,362.
The IRS requires non-profit organizations whose annual receipts total more than $25,000 per year to prepare a financial summary by filing a Form 990 each year, Anderson said. The College also filed its 990-T form on Tuesday, which discloses unrelated taxable income for operations that are not exempt from taxation, according to Wagner.
Dartmouth's Form 990 details information about the College's finances for fiscal year 2011, which began July 1, 2010 and ended June 30, 2011. All salary figures included in the form are calculated according to the 2010 calendar year, which ran from Jan. 1, 2010 to Dec. 31, 2010, Anderson said.
The $959,207,208 of total revenue represented a $94,651,369 increase from fiscal year 2010, according to the Form 990. The College's total revenue comes from tuition, investment income and other sources including "contributions and grants," the filing said.
The College's total expenses, which include employee benefits and salaries, paid grants, fundraising fees and expenses, increased by $24,634,675 since the previous fiscal year to $894,960,993, according to the filing.
The Form 990 also includes detailed summaries of the salaries of "officers," "directors," "trustees," "key employees" and "highest compensated employees" as defined by the IRS.
Kim received a total compensation of $1,084,885 for the 2010 calendar year. Kim's base salary was $757,662 and he received additional compensation of $100,000, according to the filing.
Kim received $40,207 under the "other reportable compensation" section indicated on the filing, which includes contributions for Kim's health insurance and "imputed income" for personal use of a vehicle, the value of housekeeping and other personal services provided by the College to maintain the President's House, a property owned by the College, according to Vice President of Finance Michael Wagner.
Kim received $124,500 in retirement compensation, according to the filing. This number is higher than in previous years because the Board of Trustees arranged to put $100,000 into a deferred compensation account in addition to Kim's normal retirement plan that mandates $24,500 a year, Wagner said. In calendar year 2009, Kim's retirement compensation was $27,500.
Wagner said that the $100,000 was credited to an account on behalf of Kim. It was agreed, however, that Kim would not receive the amount unless he remained president of the College until 2014, Anderson said. Because Kim will be leaving his post on June 30 to assume the World Bank presidency, he will not meet the conditions to receive the $100,000. To comply with tax code, however, the College had to include the figure in its filing, Wagner said.
The $100,000 deferred compensation was implemented by the Board of Trustees to "ensure that Kim's compensation would be at or about the mean" rate of other Ivy League presidents because Kim's base salary and other areas of compensation "did not quite get him there," Anderson said.
Anderson said that the deferred compensation strategy is "not unusual" and "one of the ways which people at his level can be compensated."
The College increased the president's salary in 2009 to decrease the gap between his yearly salary and the Ivy League average, according to a previous statement from trustee and former Chairman of the Board Ed Haldeman '70.
In calendar year 2009, Kim received a total compensation of $612,768, which represents Kim's first five months of employment at the College because he began his presidency on July 1, 2009. When annualized, Kim's compensation for calendar year 2009 was estimated at $985,265, according to Anderson. This figure makes the compensation for the College's president the fourth-highest in the Ivy League, with Columbia University leading with a compensation of $1,527,217 and Harvard University last with a salary of $874,559, according to Anderson.
The College's Form 990 also showed that Dartmouth reimbursed Dartmouth-Hitchcock Clinic $81,253 for the research of Kim's wife Younsook Lim, who works for DHC.
While Lim does not receive compensation directly from the College, some of Lim's research benefited The Dartmouth Institute for Health Policy and Clinical Practice, a College department, Anderson said.
For calendar year 2011, which is not included in the May 15 filing, Kim declined the $100,000 bonus he was offered, Wagner said.
"Inspired by the hard work and determination of so many members of the Dartmouth community during the Strategic Budget Reduction and Investment, a process that resulted in closing a $100-million budget gap, in June 2011 President Kim declined to accept any bonus," Anderson said in an email to The Dartmouth.
Kim also "asked that the provision of his contract requiring deferred payment of $100,000 be waived, which it was," according to Anderson.
Geisel School of Medicine professor Richard Freeman earned a total compensation of $774,891, which includes a signing bonus of $25,000 that Freeman received after he was appointed chair of the surgery department, Anderson said. Freeman's compensation package was the highest following Kim's.
Former College President James Wright earned $652,434 for the 2010 calendar year, which covered his time as a faculty member on sabbatical after Kim assumed the presidency, according to Anderson.
College Provost Carol Folt received a total compensation of $561,450 for the 2010 calendar year, an increase of $111,400 from her 2009 compensation of $450,050. The increase is a result of Folt serving as provost for the full 2010 calendar year, Anderson said. In 2009, Folt transitioned from dean of the faculty to provost. Folt's total compensation includes non-taxable benefits of $68,303 for calendar year 2010, a figure similar to Kim's because Kim and Folt both have housing allowances paid for by the College, Anderson said.
"They're much higher because no one else has College housing," Anderson said of the non-taxable benefits. "Folt and Kim have College-owned houses that we require them to live in for our purposes."
The tax filing also included a breakdown of the College's assets and liabilities.
The College's total assets stood at $5,130,554,144 at the beginning of fiscal year 2011 and grew to $5,828,845,616 by the end of the year, according to Form 990. Categories such as cash, savings, land, buildings and other investments comprise the total figure.
The College's total liabilities which secured mortgages, tax-exempt bond liabilities and other categories were $1,624,293,861 for the beginning of fiscal year 2011. The liabilities totaled $1,765,644,068 at the end of the year.
The College's endowment at the beginning of fiscal year 2011 was $2,998,302,307, an increase of $173,408,289 from the beginning of fiscal year 2010. At the end of fiscal year 2011, the endowment stood at $3,413,406,772, according to Form 990. Of the roughly $3.4-billion endowment, over $52 million was collected from contributions while $541 million came from net investment earnings in fiscal year 2011, the form said.
Anderson said that the process of "establishing and solidifying" Kim's leadership team and the "growing strategic importance" of Kim's administration contributes to the general increase in compensation totals in this year's filings compared to last year's filing.
"To provide context, comparing 990s from other Ivies across the board, you'll see that Dartmouth [officers are] being paid at or below the mean for pretty much every position," he said.
The financial information contained in the College's Form 990 will not be identical to information reported in the College's audited financial statements due to the nature of tax return reports, Anderson said.