Bethlehem Preschool Incorporated

“Family and Business Relationships:Yes, all seven directors listed on Form 990, part VII and both of Preschool Co-Directors are related to each other through family and business relationships. Eleanor D Howell (Secretary-Treasurer) is the parent of Ann H Brands (Board President), Mary H Morrill (Preschool Co-Director) and Catherine H Halayko (Preschool Co-Director). David J Dittmann is the brother of Eleanor D Howell. James A Morrill is the husband of Mary H Morrill. Wayne W Halayko is the husband of Catherine H Halayko. James M Morrill and Christopher J Morrill are the sons of Mary H and James A Morrill. Bethlehem Preschool rents property located at 397 Rt 9W from SH-SH, Inc. SH-SH Inc is a Subchapter S corporation. This property consists of a school building, parking lots, lawn, playground and garage. SH-SH Inc shareholders are: QSST Frederick W Howell (Deceased)Howell Family Irrevocable TrustMary H and James A MorrillCatherine H and Wayne W HalaykoPlease see Schedules L and R for further explanation”

“This Form 990 was provided to and reviewed by each member of the Board of Directors via electronic mail prior to filing with the IRS.”

“A copy of the conflict of interest policy is given to each board member upon appointment to the board. The policy and disclosure form are filed annually by all specified parties. Compliance with this policy is monitored by the Board President.”

“Executive compensation is set by a committee of the corporation composed of at least four independent, non-related members using comparability data including, but not limited to annual surveys compiled by local, regional, or statewide organizations The minutes of the Board of Directors will reflect these salary determinations.”

“Executive compensation is set by a committee of the corporation composed of at least four independent, non-related members using comparability data including, but not limited to annual surveys compiled by local, regional, or statewide organizations The minutes of the Board of Directors will reflect these salary determinations.”

“The Preschool will make public, upon written request, Form 990, all financial statements, all governing documents and the conflict of interest policy. In addition the Form 990 is available at guidestar.com.”

“The Preschool will make public, upon written request, Form 990, all financial statements, all governing documents and the conflict of interest policy. In addition the Form 990 is available at guidestar.com.”

“Calculation of Lease Value:The Building is 6274 Sq Feet. NET rent is where the tenant pays all operating expenses, other than structural maintenance and repairs. In this case, SH-SH, pays the property taxes and Bethlehem Preschool pays for the repairs, so we adjust as follows:Rental Range* $12 psf NET $15 psf NETEquals $75,288 $94,110Plus Taxes + 7,598 + 7,598Misc Building Repairs -10,000 -10,000Equals Annual Rental Range $72,886 $91,708---------------------------------Low-----------------------High*Per attached Market Consulatation Appraisal.Bethlehem Preschool paid Sh-Sh,Inc $78,510 in fiscal year 2017-2018.”