Special Funds Conservation Committee

“In conjunction with the liquidation, the committee has retained a third party as the financial advisor to act as coo and trustee of the committee, in an effort to manage the liquidation process. Further, the coo is not a paid employee of the committee (see part vii).”

“The two voting member positions of the committee are held by representatives of organizations. Representatives are from the new york state insurance fund and the new york compensation rating board. The representatives are selected by the committee. The budget was approved by the executive committee. The executive committee is comprised of the full board.”

“See schedule o explanation to form 990, part vi, section a, line 6.”

“See schedule o explanation to form 990, part vi, section a, line 6.”

“After the coo and management have reviewed and approved the form 990, a copy is provided to all members of the board for their review and approval prior to its submission.”

“Every january a letter is sent out regarding the conflicts-of-interest policy to each board member. The letter must be signed and returned.”

“Governing documents are distributed to members who must provide written acknowledgement of receipt. Policies and financial information are available upon request.”

“The highest compensated independent contractors listed are not reported on part ix, line 11g since their related payment is in satisfaction of outstanding accruals on a prior year estimate as part of sfcc's accounting on the liquidation basis.”

“On december 14, 2018, the sfcc wind-down trust (the "trust") was formed to hold certain funds of special funds conservation committee (the "committee"). The principal of the funds deposited in the trust account and income generated on the principal is to be expended for the sole purpose of funding any litigation-related liabilities of the committee incurred in conjunction with the wind-down of the committee. The committee has retained a third party as the financial advisor to act as trustee of the trust. The executive committee of the committee has the authority to approve expenditures to be disbursed by the trust and accordingly, the trust is consolidated within the committee. On december 20, 2018, the executive committee of the committee voted to adopt the plan of dissolution, dated december 20, 2018 for winding down and dissolving the committee (the "plan"). Accordingly, the committee ceased to carry out its historical business and affairs on december 31, 2018, and since such date has only engaged, and will continue to only engage in activities and business appurtenant to its wind-down as contemplated by this dissolution, dated december 20, 2018. The committee has adopted the liquidation basis of accounting as of december 20, 2018. The distribution of assets and liabilities commenced in 2019. The committee has retained a third party as the financial advisor to act as chief operating officer and trustee of the committee in an effort to manage the wind-down process. The expected date of dissolution is january 2, 2026.”

“CONSULTING FEES 4,611.”

“The adjustment to net assets includes a re-evaluation of assets and a disposition & re-evaluation of liabilities adjustment due to sfcc reporting on the liquidation basis of accounting. 30,541.”

“As a result of the executive committee's approval of the plan of complete liquidation, the committee adopted the liquidation basis of accounting. This basis of accounting is considered appropriate when, among other things, liquidation of an organization is probable and the net realizable values of assets are reasonably determinable. Under this basis of accounting, assets are valued at their net values and liabilities are stated at their settlement amounts. The conversion from the accrual basis of accounting to liquidation basis of accounting requires management to make significant estimates and judgements to record assets at estimated realizable value and liabilities at estimated settlement amounts. These estimates are subject to change based upon the timing of asset distributions.”