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 review 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 seven (7) nonprofit subsidiary entities: Easter Seals New York, Inc.; Easter Seals Maine, Inc.; Easter Seals Rhode Island, Inc.; 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 the former Chair 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.”

“Larry J. Gammon, President and CEO, was a participant in a deferred compensation 457(f) plan sponsored by Easter Seals New Hampshire, Inc. during periods from 2004 to 2014, all of which was reported on prior Forms 990. In 2014, Mr. Gammon reached the age at which his plan "vested," which meant he had to take the entire amount as income and pay taxes on it. The cumulative amount is required to be reported in its entirety again on the Form 990, Part VII and on Schedule J, in column F and as part of the compensation reported in Column B(iii), although the average year's compensation from this plan is $54,468.19.”

“During the fiscal year ended August 31, 2015, Easter Seals New Hampshire, Inc. performed an in-depth analysis of all current government payments from its grants and contracts. Based on this analysis, and in conjunction with the Form 990 instructions relative to payments from governmental units, Easter Seals New Hampshire, Inc. determined that a larger portion of its government funding should be reported as program service revenue. Accordingly, the respective revenue has been shown on Part VIII, Line 2a (Program Service Revenue) versus Line 1e (Government grants-contributions) on this year's Form 990.”

“On August 31, 2015, Easter Seals NH entered into an agreement with FEDCAP Rehabilitiation Services, Inc., an unrelated 501(c)(3) entity, whereby Easter Seals NH agreed to transfer its sole member interest in Easter Seals NY to FEDCAP Rehabilitiation Services, Inc. for no consideration. Accordingly, all of the assets, liabilities, and net assets of Easter Seals NY were transferred to FEDCAP Rehabilitiation Services, Inc. effective August 31, 2015. Easter Seals NH was concurrently released from all guarantees and other obligations related to Easter Seals NY. Easter Seals NH recognized a decrease in net assets of $80,656 as a result of the deconsolidation of Easter Seals NY.”

“Capital Transfer -3,221,389. Deconsolidation of Affiliate -629,389. Interest Rate Swap Valuation Adjustment -150,587. Increase in Fair Value of Beneficial Interest in Trust Held by Others 3,890. Loss on Disposal of Business Segment -115,305. Other Nonoperating Loss -17,750.”

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