Easter Seals New Hampshire Inc.

“The Form 990 is prepared by an outside independent accounting firm and presented to the Audit Committee of the Board for before filing with the IRS.”

“It shall be against the policy of Easter Seals New Hampshire, Inc. to have conflicts of interest with its directors, officers, staff or members of their immediate families. In the event of a pecuniary benefit transaction as defined by NH Law in RSA 7:19-a, it shall be the policy of Easter Seals New Hampshire, Inc. to follow the statute. Included but not limited to the following, the procedure shall be that each director shall complete a questionnaire on the related entities and persons and business activities of the director and members of the director's immediate family as defined by statute and such questionnaire shall be on file at the office of the Corporation. In the event the Corporation or any director becomes aware of any potential pecuniary benefit transaction as defined by law, the Corporation shall follow the procedures prescribed by law and give notice of the transaction to the full Board with notice of its next meeting. At the meeting, the Board shall vote on whether the pecuniary benefit transaction is in the best interest of the corporation, after full explanation thereof and without the director being present and without any director who has had a pecuniary benefit transaction within the fiscal year being present. If two thirds (2/3rds) of the entire Board shall vote that the pecuniary benefit transaction is in the best interest of the Corporation, the transaction shall be allowed. Notice of any such pecuniary benefit transaction the value of which is $5,000 or more shall be published according to statute. Notice of all pecuniary benefit transactions shall be given to the Director of Charitable Trusts of the State of New Hampshire annually with the reporting by the Corporation and individually for those transactions exceeding $5,000.”

“Easter Seals New Hampshire, Inc. is the parent organization with oversight and responsibility for eight (8) nonprofit subsidiary entities: Easter Seals New York, Inc.; Easter Seals Maine, Inc.; Easter Seals Rhode Island, Inc.; Easter Seals Connecticut, Inc. D/B/A Easter Seals Coastal Fairfield County (until 7/31/14); Easter Seals Vermont, Inc.; Harbor Schools, Inc.; Manchester Alcoholism Rehabilitation Center; and Agency Realty, Inc. Easter Seals New Hampshire, Inc. has an Executive Compensation Committee that is made up of former chairs of the Board of Directors and other Directors. It meets annually and reviews data on comparable not-for-profit executives of similar sized organizations in the geographical area in which we operate. That data is compiled from information gathered by the Senior Vice President for Human Resources and submitted to the Committee. The Committee meets independently to review the performance of the President, meets with the President to obtain his input, and then recommends compensation levels. It then submits its report to the entire Board of Directors which meets in executive session to review the process and the recommendations. The Committee also reviews the compensation of the highest level employees and provides input to the President in setting their compensation. Contemporaneous substantiation of the deliberation and decision is recorded.”

“Copies of the IRS Form 990 and the nonprofit status determination documents are available for public inspection at the corporate office by appointment.”

“On June 11, 2014, the Board of Directors of Easter Seals New Hampshire voted to discontinue the Pediatric Outpatient programs located in Manchester and Dover due to significant losses the programs were experiencing. This program made up approximately 4% of the Organization's total program revenue.”

“For the filing period (tax year ending August 31, 2014), the amount due from affiliates is reported on Part X, Line 15. In the previous tax year (ending August 31, 2013), this amount was included on Part X, Line 7. The change in presentation results in a significant decrease between beginning of year and end of year amounts reported on line 7 and a corresponding increase reported on line 15.”

“Interest Rate Swap Valuation Adjustment -444,659. Increase in Fair Value of Beneficial Interest in Trust Held by Others 14,750. Loss on Disposal of Business Segment -816,157.”

“The audit process has not changed from the prior year.”