Src Inc.

“Business Relationships between Officers, Directors, Trustees, and Key Employees Allen Naples, Trustee of SRC, Incs Board of Trustees Paul Tremont, Trustee, President and CEO of SRC, Inc., and Kimberly Boynton, Trustee of SRC, Incs Board of Trustees are current members of the Center State CEO Board of Trustees.”

“Business Relationships between Officers, Directors, Trustees, and Key Employees Kimberly Boynton, Trustee of SRC, Incs Board of Trustees and Kevin Hair an Officer of SRC, Inc. were both members of the United Way of CNY Board of Trustees.”

“Business Relationships between Officers, Directors, Trustees, and Key Employees Thomas Triscari, Vice Chairperson of SRC, Incs Board of Trustees and Paul Tremont, Trustee, President and CEO of SRC, Inc. are current members of the SRC Commercial Holdings, Inc. Board of Trustees.”

“Business Relationships between Officers, Trustees, and Key Employees Joseph Corasanti, Trustee of SRC, Incs Board of Trustees, Paul Tremont, Trustee, President and CEO of SRC, Inc., Kevin Hair, Officer of SRC, Inc., Philip Fazio, Officer of SRC, Inc., and Joseph Lauko, Key employee of SRC, Inc. are all current members of the SRC International, Inc. Board of Trustees.”

“Process used to review Form 990 The Form 990 of SRC, Inc. is prepared by the Finance staff and provided to senior management for review prior to filing. The Form 990 is also reviewed by the Audit Committee of the SRC, Incs Board of Trustees and a copy is provided to all members of the SRC, Inc.s Board of Trustees prior to filing. All questions and comments by senior management and the Board of Trustees were addressed prior to filing. In addition, a training session on the redesigned Form 990 was conducted by PricewaterhouseCoopers, LLP for the benefit of senior management and the Audit Committee of the Board of Trustees.”

“Written Conflict of Interest Policy Conflict of Interest disclosure statements are completed annually by all members of the Board of Trustees, Officers, and Key employees of SRC, Inc. Once the disclosures statements have been collected, the statements are reviewed by members of the legal office. All reported potential conflicts of interest are evaluated and discussed among the parties. Board of Trustee members, Officers, and Key employees are required to disclose a conflict of interest and recuse themselves from voting on or otherwise discharging their duties with respect to any matter involving the conflict which comes before the Board or prior to entering any contract or transaction involving the conflict.”

“Process for Determining Compensation The Compensation for all Officers of SRC, Inc. is recommended by the Personnel and Compensation Committee of the Board and approved by the Board of Trustees. The Personnel and Compensation Committee members are all outside Board of Trustee members. Annually, Human Resources is responsible for providing to the Personnel and Compensation Committee and the Board of Trustees a compensation study which is conducted by an independent third party. The compensation study that is obtained from the independent compensation consultant provides a reasonableness opinion, advice on the current Officers compensation, and a comparability study which is used to aid in determining the Key employees salaries.”

“Joint Venture Policy SRC, Inc. has adopted a written policy requiring the organization to evaluate all potential participation in Joint Venture arrangements under applicable federal tax law and has procedures in place to safeguard the organizations exempt status with respect to potential arrangements. SRC, Inc. did not invest in, contribute assets to or participate in a Joint Venture or similar arrangement with any entity during the current year.”

“Public Inspection of Form 990, Form 990-T and Governing Documents SRC, Inc. makes its Form 1023, Form 990, and Form 990-T available for public inspection upon request. SRC, Incs governing documents, conflict of interest policy, and audited financial statements are not routinely made available to the general public.”

“Reconciliation of Net Assets Other Changes in net assets or fund balances - increase in Postretirement benefits adjustment 1,094,033.”