Selfhelp Community Services Inc.

“The organization amended its by-laws during the tax year. Revision to the by-laws included changes required by the non profit revitalization act of 2013 and other changes to better reflect selfhelp's board opreations. Here is a short guide to the major changes: 1. The "entire board" concept. The npcl has always had the concept that certain changes require the affirmative approval of a majority of the "entire board or even two-thirds of the "entire board. These are actions of sufficient significance that they are deemed inappropriate for decision by the normal mechanics of a board, namely, approval by a majority of the board at a meeting at which a quorum is present. The revitalization act clarifies how one determines the number of members of the board that actually constitute the "entire board", and indeed, allows that determination to be made automatically as we increase or decrease the size of the board. Sorry, for that long explanation, but it explains the small wording changes to article ii, section 1, and there are other references to the "entire board" that show up in additional changes to the by-laws. 2. Technology updates. The revitalization act enables the use of email for notices of meetings of directors and for collecting written consent for those actions where we might seek "unanimous written consent" of our board in lieu of a meeting. Accordingly, beginning in article ii, section 3 and continuing through a number of other sections, you will see references to email and how it may properly be utilized. The revitalization act also contemplates the use of videoconferencing equipment for participation in board meetings. 3. Quorum. Article ii, section 3(c) now has a more complex provision relating to the quorum required for a valid board meeting as required by ny law.”

“Drafts of the completed returns are reviewed by senior finance staff. Any comments arising from their review are discussed and if required, changes are made to the draft. That draft will be submitted to the audit committee for its review and approval. Once the audit committee has completed its review, copies of the returns will be provided to all board members.”

“All officers and directors of the organization are required to complete an annual conflict of interest statement. If a conflict arises during the year, then such officer or director at their first knowledge of the transaction shall disclose fully the precise nature of the interest or involvement. The conflict of interest policy states the following: that they have received a copy of the conflict of interest policy; that they have read and understand the policy; that neither they, nor to the best of their knowledge, their family members, have in the past, are presently, or plan to engage in activity which contravenes this policy; and that they have agreed to comply with this policy. Officers, directors or key employees of the organization who have declared or been found to have a potential conflict of interest in any matter involving transactions with the organization shall refrain from participating in consideration of the proposed transactions, unless requested by the board or the administration to provide information or interpretation concerning the transaction. The person involved shall not vote on such matters and shall not be present at the time of the vote. Executive staff members are required to avoid all conflicts of interest unless they receive prior approval in writing. The chief executive officer shall be responsible for the administration of this policy as it applies to employees. Disclosures required from members of the board or officers of the organization under this policy shall be directed in writing to the president of the board who shall be responsible for the administration of this policy as it applies to directors and officers. In the event that the members of the organization staff or other persons who are not directors or officers become aware of a conflict, they shall disclose such information to the ceo, who will communicate to the president of the board those disclosures that are required by this policy. These disclosures shall be held in confidence except when the best interest of the organization would be served by communicating the information to the board in executive session. Any board member, officer, or staff person who is uncertain about a possible conflict of interest in any matter may request a decision from the president of the board.”

“The process that selfhelp community services uses for determining compensation for the organization's ceo and other top management is modeled after the requirements in internal revenue code section 4958 to establish the presumption of reasonable compensation. Compensation was reviewed and approved by a compensation committee (the committee) of the board, which is comprised of independent persons. In 2014 the committee engaged an independent compensation consultant that presented comparable market data from published surveys and form 990 of comparable organizations in evaluating the compensation for each individual. In 2015 the committee engaged the same compensation consultant and received their report relative to 2015-2016 salary survey as assessed in comparison to market movement and selfhelp's executive compensation. The committee conducted a review of this comparability data and documented its deliberation and discussion in minutes that are retained with the other governance materials of the organization. The committee followed the process to establish the presumption that compensation paid to the ceo and other top management for purposes of section 4958 by relying on professional advice in the written opinion of reasonableness from the independent compensation consultant. This process was last undertaken in 2015.”

“These documents are available upon request.”

“Reserve on receivables from related party -969,865. Prior year grants 671,897.”

“The process has not changed since the prior year.”