Lynnfield Initiatives for Elders Inc

“The Organization has 3 classes of stock. Class A Member is the Town of Lynnfield. The Class A Member's vote shall be exercized by a majority of the selectmen of the Town of Lynnfield. Class B Members shall be those persons who actually become residents of the residental housing constructed, controlled or purchased by the Organization. Class B members shall first be Class C members and shall become Class B members on the date they are assigned a unit in such housing and actually take up residence therein. Class C Members are people on the waiting list. The waiting list of Class C members is comprised of people of any age whom are current or former Lynnfield residents with two years of residency, or the mother, father, brother or sister of a current or former Lynnfield resident with two years of residency.”

“The Organization has a five member board of directors appointed by theSelectmen of the Town of Lynnfield. Class A Member shall also have theright to elect all the directors of the corporation and to fill vacanciesin the event of the death, disability or resignation of the directors ofthe board of the corporation.”

“The Class A member shall be the only member entitled to vote on all matters relative to amending the Articles of Organization and amending the By-Laws of the corporation. The Class A member approves the following decisions of the governing board: 1. Establish a selection method for Class B and Class C members which may be amended from time to time with consent of Class A member. 2. Determine unit sales and reacquisition payments. Add or amend all procedures relative to the ownership control, use and transfer of assets. 3. Establish and amend from time to time and enforce reasonable rules and regulations relative to the use, occupancy and operation of the Organization. 4. The corporation shall adopt a clear and concise plan for the financing of the purchase, the construction of the improvments on, and the management of the development which will be submitted to the Board of Selectmen prior to its adoption.”

“The Form 990 of the Organization is prepared by an outside accounting firm and has established the following review process to ensure that the information reported is complete and accurate. When the Form 990 has been prepared, reviewed by mangement and is ready to be filed with the IRS, it is submitted electronically to members of the Organization's governing body for any comments prior to its submission to the IRS. The governing body is provided with adequate time to review the prepared Form 990 and to provide comments. Comments are grouped and summarized for resolution. All issues are documented and addressed before the return is finalized and approved for filing.”

“If there is an actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement. Each director, principal officer and member of a committee with governing board delegated powers shall annually sign a statement which affirms the following: 1. Has received a copy of the Conflict of Interest Policy 2. Has read and understands the policy 3. Has agreed to comply with the policy 4. Understands that the Organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. To ensure the Organization operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following: 1. Whether compensation agreements and benefits are reasonable, based on competent survey information, and the result of Arm's length bargaining. 2. Whether partnerships, joint ventures, and arrangements with management conform with the Organization's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in inurement, impermissible private benefit or in an excess benefit transaction.”

“The Board reviews the compensation increases given by the Town of Lynnfield to top management. The board then discusses the appropriate increases based on internal evaluations and their consistency with the Town of Lynnfield. The Board reviews the compensation increases given by the Town of Lynnfield to other officers and key employees. The board then discusses the appropriate increases based on internal evaluations and their consistency with the Town of Lynnfield.”

“The Organization makes its Form 990 available upon request for public inspection as required under the Internal Revenue Code. The filing is available on Guidestar.org and on the MA Attorney General website.”

“The Organization makes its governing documents, Conflict of Interest Policy, and financial statements available to the public . Any request for a governing document is handled by the Organization's office and is furnished within the time limits mandated by the IRS.”

“Transfer of Occupancy Capital 406,250. Net Transfer of Class Memberships 53,000.”

“The Organization did not change its oversight process during the tax year. The Organization is using the same independent accountant that was used in the prior year to prepare the audited financial statements and tax filings.”