Central Coast Water Quality Preservation Inc.

“The executive committee has the responsibility for reviewing the form 990 (including all pertinent schedules) before it is filed with the irs.”

“Annual StatementsEach director, principal officer and member of a committee with Board of Directors delegated powers shall annually sign a statement which affirms such person:a. Has received a copy of the conflicts of interest policy,b. Has read and understands the policy,c. Has agreed to comply with the policy, andd. Understands CCWQP 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.Periodic ReviewsTo ensure CCWQP 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 subjects:a. Whether compensation arrangements and benefits are reasonable, based on competentsurvey information and the result of arms length bargaining.b. Whether partnerships, joint ventures, and arrangements with management organizations conform to CCWQPs 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.”

“1.Compensation arrangement approved in advance by independent members ofCCWQPs governing body (Board of Directors or a subcommittee thereof) that is composed of persons who do not have a conflict of interest with respect tothe compensation arrangement.2. Before making the reasonable compensation determination, the governing body(or subcommittee thereof) relied upon comparability data (comparability dataincludes compensation paid by comparable and similarly situated entities) indeciding whether to approve the compensation.3. Governing body contemporaneously documents their basis for making itsreasonable compensation determination, as follows:a. Terms of the approved compensation and the date approved by theBoardb. Members of Board present during debate on the compensation amountand those who voted on it and how they voted on itc. Description of the comparability data obtained and relied upon and howsuch data was obtainedd. Any actions by Board member having a conflict of interest (e.g.disclosure of the conflict of interest; recusal from the discussion)e. Documentation of the basis for the compensation determination beforethe later of the next Board meeting or 60 days after the final actions ofthe authorized body are takenIt is essential that the individuals whose compensation is being discussed not be present during such discussions.The reasonable compensation discussion should be undertaken by the Board at leastannually; the reasonable compensation binder maintained for each insider should also be prepared, or at least updated, annually.”

“1.Compensation arrangement approved in advance by independent members ofCCWQPs governing body (Board of Directors or a subcommittee thereof) that is composed of persons who do not have a conflict of interest with respect tothe compensation arrangement.2. Before making the reasonable compensation determination, the governing body(or subcommittee thereof) relied upon comparability data (comparability dataincludes compensation paid by comparable and similarly situated entities) indeciding whether to approve the compensation.3. Governing body contemporaneously documents their basis for making itsreasonable compensation determination, as follows:a. Terms of the approved compensation and the date approved by theBoardb. Members of Board present during debate on the compensation amountand those who voted on it and how they voted on itc. Description of the comparability data obtained and relied upon and howsuch data was obtainedd. Any actions by Board member having a conflict of interest (e.g.disclosure of the conflict of interest; recusal from the discussion)e. Documentation of the basis for the compensation determination beforethe later of the next Board meeting or 60 days after the final actions ofthe authorized body are takenIt is essential that the individuals whose compensation is being discussed not be present during such discussions.The reasonable compensation discussion should be undertaken by the Board at leastannually; the reasonable compensation binder maintained for each insider should also be prepared, or at least updated, annually.”

“AVAILABLE UPON REQUEST”