2011-02-09T16:26:12-06:00 2010-06-26 HAGEN KURTH PERMAN & CO PS 601 UNION STREET SUITE 2700 SEATTLE WA 98101 990 2009-06-28 910568708 SEATTLE GOODWILL INDUSTRIES SEAT 2063291000 1765 6TH AVENUE S SEATTLE WA 98134 MICHAEL JURICH 2063291000 2011-02-04 1 PHILIP LAUBE 2066829200 2009 2016-02-24 21:20:13Z MICHAEL JURICH 1765 6TH AVENUE S SEATTLE WA 98134 73334144 0 X www.seattlegoodwill.org X 1923 WA SEATTLE GOODWILL IS A NONPROFIT ORGANIZATION THAT PROVIDES EMPLOYMENT TRAINING AND BASIC EDUCATION TO INDIVIDUALS EXPERIENCING SIGNIFICANT BARRIERS TO ECONOMIC OPPORTUNITY. OUR THRIFT STORE OPERATION IS AN INTEGRAL PART OF THE ORGANIZATION AND PROVIDES ON THE JOB TRAINING AND FUNDING FOR TRAINING AND EDUCATION PROGRAMS. SEE FORM 990, PART III, LINES 4A AND 4B FOR MORE INFORMATION. 21 20 1947 780 0 0 575732 644062 48130605 58157471 203976 165925 2369464 2238158 51279777 61205616 428379 459965 0 30431246 35187897 0 607353 17170898 20872165 48030523 56520027 3249254 4685589 30210682 37599619 10112655 12889245 20098027 24710374 GOODWILL PROVIDES QUALITY, EFFECTIVE EMPLOYMENT TRAINING AND BASIC EDUCATION TO INDIVIDUALS EXPERIENCING SIGNIFICANT BARRIERS TO ECONOMIC OPPORTUNITY. BECAUSE JOBS CHANGE LIVES. 0 0 50282981 62620940 RETAIL PROGRAM:WITH THE CONTINUED RECESSION, WE SAW ADDITIONAL CUSTOMERS IN OUR RETAIL THRIFT STORES NEEDING QUALITY, VALUE PRICED CLOTHING AND HOUSEHOLD GOODS. WE OPENED THREE NEW THRIFT STORES AND CONTINUED TO FOCUS ON IMPROVING THE EFFICIENCY OF PROCESSES USED TO PREPARE DONATED GOODS FOR SALE. WE PROCESSED, SOLD AND RECYCLED APPROXIMATELY 37,000 TONS OF DONATED GOODS, PROVIDING MUCH NEEDED VALUE TO OUR CUSTOMERS, TRAINING, EDUCATION AND EMPLOYMENT OPPORTUNITIES FOR PEOPLE WITH MULTIPLE BARRIERS TO EMPLOYMENT AND THE ENVIRONMENTAL BENEFIT OF KEEPING THESE ITEMS OUT OF OUR LANDFILLS. 4461308 459965 0 JOB TRAINING AND EDUCTION PROGRAM;WE INCREASED THE NUMBER OF PEOPLE HELPED THROUGH OUR JOB TRAINING AND EDUCATION PROGRAMS AND COLLABORATIONS 40% TO 3,812. 348 STUDENTS WERE PLACED IN EMPLOYMENT, WHICH REFLECTS A 26% INCREASE FROM LAST YEAR. OUR AVERAGE PLACEMENT WAGE WAS $10.44/HOUR. WE EXPANDED OUR JOB TRAINING AND EDUCATION SERVICES TO SILVERDALE, WASHINGTON BY OPENING A NEW JOB TRAINING AND EDUCATION CENTER IN OUR NEW STORE. WE ALSO PLANNED FOR AN EXPANDED CENTER IN MOUNT VERNON, WASHINGTON WHICH WILL OPEN IN LATE 2010. 54744289 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 273 0 1 1947 1 0 0 0 0 1 1 0 0 0 0 21 20 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 WA X MICHAEL JURICH VPCFO 2068605709 1765 6TH AVENUE S SEATTLE WA 98134 RICHARD N PAHRE 1.00 X 0 0 0 DANIEL DA SILVA 1.00 X 0 0 0 ALAN CORNELL 1.00 X 0 0 0 MICHAEL J KILLEEN 1.00 X 0 0 0 Lauriann Reynolds 1.00 X 0 0 0 REAH DEPRIEST 1.00 X 0 0 0 JOHN HAYDUK 1.00 X 0 0 0 SCOTT MISSALL 1.00 X 0 0 0 SHELLIE SADR 1.00 X 0 0 0 SCOTT WILSON 1.00 X 0 0 0 KEN COLLING 40.00 X X X 257630 0 6084 ROBERT JEFFREY 1.00 X 0 0 0 WAYNE LAU 1.00 X 0 0 0 AMELIA RANSOM-LETCHER 1.00 X 0 0 0 CLEO MOLINA 1.00 X 0 0 0 JILL WAKEFIELD 1.00 X 0 0 0 CATHERINE GIBSON 1.00 X 0 0 0 DAVID SCOTT 1.00 X 0 0 0 JERRY WALKER 1.00 X 0 0 0 MARKEE A FOSTER 1.00 X 0 0 0 BRODERICK SMITH 1.00 X 0 0 0 MICHAEL JURICH 40.00 X X 166413 0 10923 CYNTHIA FORSLUND 40.00 X X 162974 0 10796 BG NABORS-GLASS 40.00 X 112222 0 8611 SUSANNE EBLING 40.00 X 116671 0 3875 CATHERINE MCCONNELL 40.00 X 109287 0 5497 925197 0 45786 6 0 1 0 0 4706 95991 9872 533493 644062 PROGRAM SERVICES 453310 58157471 58157471 58157471 189679 189679 11723 11723 11723 11723 9441002 7760 9454531 17985 -13529 -10225 -23754 -23754 82402 95991 82402 0 4463469 2573610 1889859 1889859 PUBLIC SUPPORT-OTHER 453310 197074 197074 MISCELLANEOUS 453310 139502 139502 336576 61205616 60383906 0 177648 459965 459965 993860 527338 404982 61540 29155214 28642163 301116 211935 122835 116858 3432 2545 1695420 1665919 15554 13947 3220568 3198993 -5169 26744 84848 83773 11 1064 43560 43560 29580 29580 1523603 1381013 13598 128992 677763 676078 183 1502 285385 226284 57482 1619 5636355 5610466 25889 167124 157356 5629 4139 105380 101328 4052 151812 151756 56 3090121 2998520 84276 7325 457817 447831 9553 433 SUPPLIES 1572212 1563434 7555 1223 DISPOSAL 1531752 1521672 9540 540 EQUIPMENT RENTAL/MAINT 1306127 1303315 0 2812 TELEPHONE AND UTILITIES 1169154 1159968 7114 2072 BANK CHARGES 879914 837053 39196 3665 2159658 1913206 111196 135256 56520027 54744289 1168385 607353 49812 23100 1651 25061 711376 2688221 2363707 1785982 42216 74220 369434 501396 18240 25047 1490553 1696155 851951 1321338 36456002 17965924 14816076 18490078 9543873 11008350 3256 8832 30210682 37599619 4854015 5630557 87000 93841 4053924 5343304 1117716 1821543 10112655 12889245 X 19992976 24562276 105051 148098 20098027 24710374 30210682 37599619 X 0 1 1 X 0 X 716843 889421 882357 575732 644063 3708416 33449425 39048861 48519503 52811287 62620940 236450016 34166268 39938282 49401860 53387019 63265003 240158432 0 115845 202140 13074 452483 783542 115845 202140 13074 452483 783542 239374890 190775 158974 272222 299354 201402 1122727 190775 158974 272222 299354 201402 1122727 405409 391514 -38439 365458 336576 1460518 34762452 40488770 49635643 54051831 63802981 242741677 0.98610 0.98550 0.00460 0.00470 X Schedule A, Part IV, Supplemental Information: SCHEDULE A, PART III, LINE 12, EXPLANATION FOR OTHER INCOME: MISCELLANEOUS REVENUE FROM RETAIL PROGRAM. SEE FORM 990, PART III, LINE 4A. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 0 0 0 0 1 1750 0 1 29580 31330 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: SEATTLE GOODWILL PARTNERS WITH GOODWILL INDUSTRIES INTERNATIONAL AND SEVERAL OTHER LOCAL GOODWILL AFFILIATES TO ENGAGE A GOVERNMENT RELATIONS FIRM TO ASSIST US IN SEEKING FEDERAL STIMULUS FUNDS TO BE USED FOR CAPITALIZATION FUNDING OF NEW GOODWILL FACILITIES. IN 1996, CONGRESS AUTHORIZED THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES TO PROVIDE CAPITAL FUNDING FOR TWO LOCAL GOODWILL AFFILIATES TO OPEN NEW DONATED GOODS PROGRAM FACILITIES. THE CONCEPT WAS THAT FOLLOWING THE CAPITAL FUNDING FOR ACQUISITION OF LAND AND BUILDINGS, THESE PROGRAMS WOULD BE SELF-SUSTAINING. THE SELF-SUSTAINING NATURE OF THESE PROGRAMS PROVIDED AN OPPORTUNITY FOR THE FEDERAL GOVERNMENT TO LEVERAGE THE INITIAL FUNDING INTO SIGNIFICANTLY LARGER COMMUNITY IMPACT FOR MANY YEARS IN THE FUTURE. THIS EFFORT CONTINUED IN 2009/10. THE 1996 GRANT WAS SUCCESSFUL AND OUR INTENTION IS TO BUILD UPON THAT SUCCESS AND PURSUE A LARGER GRANT TO FUND SELF-SUSTAINING PROJECTS WITHIN THE PARTNERING GOODWILL AFFILIATES. SEATTLE GOODWILL SHARES RESPONSIBILITY FOR A PORTION OF THE PATTON BOGGS RETAINER FOR THEIR EFFORTS TO SECURE FEDERAL LEGISLATION THAT WOULD AUTHORIZE GRANT FUNDS FOR CAPITAL PROJECTS. WE HAVE MADE SOME PROGRESS, BUT THERE ARE MANY COMPETING MATTERS ON CAPITOL HILL. ANY BILL THAT COMES OUT OF THIS EFFORT, WILL NOT LIKELY GRANT FUNDING SPECIFICALLY TO GOODWILL. WE ANTICIPATE THAT ANY FUNDING WOULD BE GRANTED BASED ON A COMPETITIVE REQUEST FOR PROPOSALS. GOODWILL INDUSTRY'S WASHINGTON STATE LOBBYIST ACTIVELY MONITORS BILLS FOR POTENTIAL IMPACT AND/OR OPPORTUNITY TO ADVANCE THE MISSION OF GOODWILLS IN WASHINGTON STATE. PRIMARY FOCUS HAS BEEN ON OBTAINING A PROPERTY TAX EXEMPTION FOR LEASED PROPERTY USED FOR EXEMPT PURPOSES AND FUNDING FOR PRISONER RE-ENTRY JOB TRAINING. 4477188 4477188 5626433 3661946 1964487 10267028 5071412 5195616 15236748 9010512 6226236 848605 222054 626551 18490078 VARIOUS CD'S 11008350 F 11008350 CAPITAL LEASE OBLIGATIONS 121275 DEFERRED RENT LIABILITY 1256918 DEFERRED RENT CREDIT, NET OF AMORTIZATION 443350 1821543 61205616 56520027 4685589 -73242 -73242 4612347 63878386 -73242 90000 2656012 2672770 61205616 0 61205616 59266039 90000 2656012 2746012 56520027 0 56520027 Part X: Description of Uncertain Tax Positions Under FIN 48: FINANCIAL STATEMENT FIN 48 FOOTNOTE TEXT: Seattle Goodwill uses the asset and liability method in providing for income taxes on all transactions that have been recognized in the financial statements. This method is in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 740, Accounting for Income Taxes. The asset and liability method provides that deferred taxes be adjusted to reflect the tax rates at which future taxable or deductible amounts will be settled or realized. During the 2010 fiscal year, Seattle Goodwill adopted ASC 740-10 as it relates to uncertain tax positions and has evaluated its tax positions taken for all open tax years. Currently, the 2007, 2008 and 2009 tax years are open and subject to examination by the Internal Revenue Service. However, Seattle Goodwill is not currently under audit nor has Seattle Goodwill been contacted by any jurisdiction. Based on the evaluation of Seattle Goodwill's tax positions, management believes all positions taken would be upheld under an examination. Therefore, no provision for the effects of uncertain tax positions has been recorded for the year ended June 26, 2010. PARTS XII AND XIII, LINES 2D, OTHER RECONCILING AMOUNTS: DIRECT FUNDRAISING EXPENSES OF $82,402 IS SHOWN NETTED AGAINST GROSS INCOME FROM FUNDRAISING EVENTS (FORM 990, PART VIII, LINE 8B) AND CORRESPONDINGLY EXCLUDED FROM EXPENSES. COST OF GOODS SOLD OF $2,573,610 IS SHOWN NETTED AGAINST GROSS SALES OF INVENTORY (FORM 990, PART VIII, LINE 10B) AND CORRESPONDINGLY EXCLUDED FROM EXPENSES. GLITTER GALA FASHIONSHOW 178393 95991 82402 3619 78783 178393 95991 82402 3619 78783 82402 0 1 JILL JONES AWARDS 315 23683 STIPEND 189 249419 YOUTH STIPEND 40 35636 AWARDS & GRANTS 636 78022 GED EXAM FEES 14 850 TRANSIT PASSES/BUS TICKETS 544 72355 FMV BUS TICKETS Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: JILL JONES AWARDS: THIS FUND HOLDS BOARD DESIGNATED AND DONOR RESTRICTED FUNDS TO HELP CLIENTS WHO NEED EMERGENCY FINANCIAL ASSISTANCE, FOR EXAMPLE, TO PAY DELINQUENT RENT OR UTILITIES. THIS ASSISTANCE IS GOVERNED BY A FUND POLICY AND PAYMENTS ARE PAID DIRECTLY TO VENDORS, NOT THE CLIENT, AFTER RECEIVING APPROPRIATE DOCUMENTATION. STIPEND: SEATTLE GOODWILL INDUSTRIES' RETAIL/CUSTOMER SERVICE SECTOR TRAINING PROGRAM OFFERS STUDENTS A STIPEND TO THOSE WHO MAINTAIN ATTENDANCE STANDARDS ESTABLISHED PER POLICY. THESE STIPENDS HELP STUDENTS STAY IN THE PROGRAM, AS MANY HAVE LITTLE OR NO INCOME. YOUTH STIPEND: THE SEATTLE GOODWILL SUMMER YOUTH PROGRAM PROVIDES PARTICIPANTS WITH RETAIL AND CUSTOMER SERVICE JOB SKILLS TRAINING, ENVIRONMENTAL STEWARDSHIP EDUCATION, COLLEGE PREPARATION, THE COMMUNITY SERVICE HOURS REQUIRED TO GRADUATE FROM HIGH SCHOOL, AND AN OPPORTUNITY TO BUILD THEIR TEAMWORK, LEADERSHIP, AND OTHER SOFT SKILLS. THE PROGRAM RUNS ALL DAY FOR TWO MONTHS AND SERVES 30 YOUTH PER YEAR (AGES 15-18) WHO HAVE NOT YET COMPLETED HIGH SCHOOL. PARTICIPANTS ARE PAID A STIPEND THAT IS DEPENDENT UPON THEIR ATTENDANCE, PARTICIPATION, AND PROGRESS. AWARDS & GRANTS: CASE MANAGEMENT SUPPORT SERVICES HELP STABILIZE THE LIVES OF OUR CLIENTS, THEREBY IMPROVING RETENTION AND OUTCOMES. AWARDS AND GRANTS REFLECT COSTS FOR ITEMS PURCHASED OR PROVIDED TO CLIENTS THROUGH CASE MANAGEMENT, SUCH AS FOOD, CLOTHING, PERSONAL AND HOUSEHOLD ITEMS. EACH YEAR STUDENTS WHO HAVE GRADUATED FROM SEATTLE GOODWILL INDUSTRIES JOB TRAINING AND EDUCATION PROGRAMS ARE SELECTED, ACCORDING TO ESTABLISHED GUIDELINES, TO RECEIVE MARTIN SMITH MEMORIAL SCHOLARSHIPS TO ASSIST THE STUDENTS WITH THEIR FURTHER EDUCATION. GED EXAM FEES: SEATTLE GOODWILL PAYS EXAM FEES FOR CLIENTS PURSUING THEIR GED. TRANSIT PASSES/BUS TICKETS: STUDENTS MAY RECEIVE LIMITED FINANCIAL ASSISTANCE TOWARDS BUS TRANSPORTATION TO AND FROM JOB TRAINING AND EDUCATION FACILITIES. THIS SUPPORT ENABLES STUDENTS WITH TRANSPORTATION BARRIERS TO ATTEND TRAINING. X X X X 0 0 0 1 0 1 0 1 0 KEN COLLING 207630 0 50000 0 0 0 4950 0 1134 0 263714 0 102500 0 MICHAEL JURICH 151681 0 14732 0 0 0 6817 0 4106 0 177336 0 74496 0 CYNTHIA FORSLUND 148543 0 14431 0 0 0 6684 0 4112 0 173770 0 72904 0 Supplemental Information Part III RETAIL MANAGEMENT BONUSES ARE BASED ON NET CONTROLLABLE CONTRIBUTION MARGIN, WHICH INCLUDES REVENUE AS PART OF THE EQUATION. BONUSES ARE CAPPED AT 1.5 TIMES THE TARGET BONUS FOR THE SPECIFIC POSITION. BONUSES IN EXCESS OF THE TARGET ARE EARNED BASED ON HOW MUCH NET CONTROLLABLE CONTRIBUTION MARGIN EXCEEDS BUDGET. VICE PRESIDENTS' BONUSES ARE BASED ON THE ACHIVEMENT OF VARIOUS GOALS AND OBJECTIVES, INCLUDING MEETING THE NET INCOME GOAL FOR THE ORGANIZATION. BONUSES ARE CAPPED AT 10% OF SALARY. CEO BONUS IS CAPPED AT 25% OF SALARY AND IS PAID AT THE DISCRETION OF THE BOARD AS RECOMMENDED BY THE COMPENSATION COMMITTEE. ALAN CORNELL DIRECTOR 450000 ALAN CORNELL IS EMPLOYED BY NITZE-STAGEN, THE PROPERTY MANAGER FOR OUR OUTLET FACILITY. SEATTLE GOODWILL MAKES GROSS RENT PAYMENTS TO THE LANDLORD THROUGH NITZE-STAGEN. ALAN CORNELL HAS RECUSED HIMSELF FROM ALL RELATED DISCUSSIONS AND MEETINGS AT BOTH GOODWILL AND NITZE-STAGEN. THE ANNUAL DOLLAR AMOUNT OF BUSINESS IS APPROXIMATELY $450,000. 0 SHELLIE SADR DIRECTOR 173846 SHELLIE SADR IS EMPLOYED BY BANK OF AMERICA AND BANK OF AMERICA PROVIDES DEPOSITORY, DISBUREMENT, CASH MANAGEMENT, EQUIPMENT LEASING AND CREDIT SERVICES TO SEATTLE GOODWILL. SHELLIE SADR'S RESPONSIBILITIES WITHIN BANK OF AMERICA DO NOT INVOLVE THE SALE OF SERVICES PROVIDED BY THE BANK TO SEATTLE GOODWILL. 0 MICHAEL KILLEEN DIRECTOR 67374 MICHAEL KILLEEN IS A PARTNER IN THE LAW FIRM OF DAVIS WRIGHT TRAMAINE, LLP (DWT). DWT IS USED BY SEATTLE GOODWILL AS AN OUTSIDE COUNSEL. MICHAEL KILLEEN DOSE NOT PERFORM ANY PAID WORK PERSONALLY. ALL OF HIS TIME ON SEATTLE GOODWILL MATTERS IS PRO BONO. 0 SCOTT MISSALL DIRECTOR 13995 SCOTT MISSALL IS AN EQUITY OWNER IN THE LAW FIRM OF SHORT CRESSMAN AND BURGESS, PLLC (SCB). SCB IS USED BY SEATTLE GOODWILL AS AN OUTSIDE COUNSEL. 0 LISA DECKER DIRECTOR FOR A PORTION OF THE YEAR 30860 LISA DECKER IS EMPLOYED BY CBS RADIO, INC. AND SEATTLE GOODWILL PAYS TO ADVERTISE ON CERTAIN CBS RADIO STATIONS, AMONG OTHER RADIO STATIONS. THE ADVERTISING IS PLACED THROUGH A THIRD PARTY AGENCY (STANTON AND EVERYBODY) WHO NEGOTIATES ON GOODWILL'S BEHALF. 0 X 6,077,070 - PART II X 52,080,401 - PART II 0 1 1 Third Party Use: Part I, Line 32b: AS PART OF SEATTLE GOODWILL'S RETAIL/CUSTOMER SERVICE PROGRAM, SOME DONATED MERCHANDISE, INCLUDING BOOKS, IS SOLD ONLINE THROUGH ENTITIES SUCH AS EBAY, SHOPGOODWILL.COM, AMAZON, ABEBOOKS, ALIBRIS AND HALF.COM. Non Reporting of Revenue: Part I, Line 33: SEATTLE GOODWILL RECEIVES CONTRIBUTIONS OF BOOKS, CLOTHING AND HOUSEHOLD GOODS (INVENTORY) AND PROCESSES THESE CONTRIBUTIONS AS MERCHANDISE OFFERED FOR SALE IN ITS RETAIL THRIFT STORES. SEATTLE GOODWILL BELIEVES THAT INVENTORY OF CONTRIBUTED GOODS AND MATERIALS DO NOT POSSESS AN ATTRIBUTE THAT IS EASILY MEASURABLE OR VERIFIABLE WITH SUFFICIENT RELIABILITY TO DETERMINE AN INVENTORY VALUE AT THE TIME OF DONATION. ACCORDINGLY, CONTRIBUTED GOODS AND MATERIALS INVENTORY ARE VALUED AT ZERO PRIOR TO BEING OFFERED FOR SALE. AS REPORTED ON FORM 990, SCHEDULE M, LINES 4 AND 5, THE REVENUE FOR THE CURRENT YEAR OF THESE DONATED PROPERTIES ARE $6,077,070 AND $52,080,401, RESPECTIVELY. THESE AMOUNTS ARE INCLUDED IN PROGRAM SERVICES REVENUE ON FORM 990, PART VIII, LINE 2A. Form 990, Part VI, Section A, line 2 MARKEE FOSTER IS A BOARD MEMBER OF GOODWILL AND A FORMER CO-OWNER OF COLORS NW. COLORS NW'S CEO, ROBERT JEFFREY, IS ALSO A BOARD MEMBER OF GOODWILL, CREATING A BUSINESS RELATIONSHIP WITH ANOTHER DIRECTOR. Form 990, Part VI, Section B, line 11 SEATTLE GOODWILL ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE THE FORM 990 FROM INPUT AND DATA PROVIDED BY THE CHIEF FINANCIAL OFFICER AND ACCOUNTING DIRECTOR. A DRAFT FORM IS REVIEWED BY THE CHIEF FINANCIAL OFFICER AND ACCOUNTING DIRECTOR FOR ACCURACY BEFORE A FINAL FORM 990 IS PRODUCED. THE FINAL FORM 990 IS THEN PROVIDED TO ALL BOARD MEMBERS APPROXIMATELY ONE WEEK BEFORE THE FORM 990 IS FILED WITH THE IRS, AS PER IRS GUIDANCE. THE BOARD MEMBERS ARE NOT REQUIRED TO APPROVE THE FORM 990. Form 990, Part VI, Section B, line 12c CONFLICT OF INTEREST DISCLOSURE FORMS ARE DISTRIBUTED ANNUALLY AND A DISCUSSION IS HELD ABOUT THE IMPORTANCE OF DISCLOSURE OF ANY REAL OR POTENTIAL CONFLICTS OF INTEREST SO THAT THEY CAN BE APPROPRIATELY MANAGED. EACH NEW BOARD MEMBER IS ALSO PROVIDED THIS SAME FORM AND INFORMATION. KEY EMPLOYEES ALSO RECEIVE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM AND HAVE BEEN TRAINED ON OUR ETHICS POLICIES. CLEAR PROCEDURES ARE ESTABLISHED FOR THE ANONYMOUS REPORTING OF ETHICS VIOLATIONS THROUGH A 1-800 REPORTING SERVICE OR DIRECTLY TO THE COMPLIANCE OFFICER OR CHAIR OF THE BOARD FINANCE AND AUDIT COMMITTEE. EACH YEAR, THE COMPLIANCE OFFICER MAKES A REPORT TO THE FINANCE AND AUDIT COMMITTEE OF THE BOARD AND TO THE FULL BOARD OF DIRECTORS ON COMPLIANCE POLICY MATTERS, INCLUDING A SUMMARY OF CONFLICT OF INTEREST FORM DISCLOSURES. Form 990, Part VI, Section B, line 15a CEO COMPENSATION IS ESTABLISHED BY THE COMPENSATION COMMITTEE OF THE BOARD MADE UP OF INDEPENDENT DIRECTORS, USING COMPETITIVE SALARY SURVEYS AND CONSIDERING ORGANIZATION AND INDIVIDUAL PERFORMANCE. THE COMPENSATION COMMITTEE REPORTS ITS RECOMMENDATION TO THE BOARD ANNUALLY BEFORE CHANGES ARE MADE TO THE CEO COMPENSATION. THE VP POSITIONS ARE APPROVED BY THE BOARD, BUT VP COMPENSATION IS ESTABLISHED BY THE CEO, ALSO CONSIDERING INDIVIDUAL PERFORMANCE AND COMPETITIVE SALARY SURVEYS. THE COMPENSATION COMMITTEE RECEIVES A REPORT OF THE VP COMPENSATION AT THE SAME TIME IT CONSIDERS CEO COMPENSATION EACH YEAR. Form 990, Part VI, Section C, line 19 OUR FORM 990 IS PUBLISHED ON OUR WEBSITE. WE DO NOT PUBLISH OUR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY OR FINANCIALS TO THE GENERAL PUBLIC. THESE ARE PROVIDED TO GRANT FUNDERS, LESSORS, AND LENDERS UPON REQUEST. SUMMARY FINANCIAL INFORMATION IS PROVIDED, ALONG WITH MISSION OUTCOMES, TO THE PUBLIC IN OUR ANNUAL REPORT. THE ANNUAL REPORT IS MAILED TO THOSE ON OUR MAILING LIST AND PUBLISHED ON OUR WEBSITE. FORM 990, PART XI, LINE 2C, COMMITTEE OVERSIGHT OF AUDIT PROCESS: NO CHANGE TO PROCESS FROM PRIOR YEAR. FORM 990, PART IX, LINE 10, COL (C) PAYROLL TAXES FOR MANAGEMENT & GENERAL: PAYROLL TAX IS A $5,169 CREDIT REFLECTING A REDUCTION OF OUR WORKER COMPENSATION EXPENSE IN THE AMOUNT OF $36,615.