Compassionate Touch Inc.

“| Employee: Relationship: Todd Whitley Family Relationship Georgann Whitley|”

“Our operations are focused in 4 major areas in Texas. Our team is disbursed to 2 locations within Texas but works closely together to make decisions and ensure all locations operated consistently.”

“All members of the board of directors are welcome to view the form upon request but our review policy only involves direct review by the Executive Director and Treasurer of the Board.”

“This Form 990 has been prepared by the Organizations accountant a CPA who is a part-time employee not a third party accounting firm and reviewed by a member of the Organizations Board of Directors with active involvement with the Organization. The Accountant and Reviewing Board Member have reviewed and discussed the form with the Organizations Executive Director who signed the form. All other Board members can review the form upon request.”

“All documents are available to the public upon request.”

“We have checked "other" for accounting method as we are using a modified accrual basis for our revenue to match revenue to the year in which it is spent for patient funding our primary program objective. We have a significant contributor who typically contributes at the end of one calendar year for funds to be used for patient funding over the following two years. This can cause large swings in our income from year to year. By matching the revenue to the year it is spent we minimize these large income differences. See further explanation of this adjustment related to Part XI Line 9 explained in Schedule O. This adjustment plus the elimination of donated services required by the 990 are the only differences between our accrual basis GAAP basis audited financials and the amounts reported in this 990.”

“| Description:, Explanation:, Amount:| We are modifying accrual basis revenue when contributions are made for use in a future period to match income to periods in which it will be used for patient funding our primary program objective. On 11 20 2022 we received $450K for use in 2023 and 2024 so it was deferred in 2022s 990 and the amount used in 2023 $332K has been added into 2023s 990. Similarly from another donor we received $350K on 12 19 2022 for use in 2023 and $500K on 12 14 2023 for use in 2024; of these amounts the $350K was not included in 2022s 990 but has been added into the 2023 990 and the $500K has been deferred and will be included in 2024s 990. The net effect of these adjustments was the -$182K adjustment seen in Part XI to Schedule D in this 990., Modified Accrual Basis Adjustment, $-182000|”

“| Explanation:| For number of forms W-2 filed we answered 0 but we do have amounts reported for salaries and wages in Part IX Expenses. Compassionate Touch shares employees with a related organization Lifeline Chaplaincy LC. All employees are paid by LC but an estimate of payroll costs for Compassionate Touch is calculated based on employee time records and managements estimates of staff time and roles. Compassionate Touch reimburses a portion of the personnel costs to LC. This reimbursed portion is reflected in Compassionate Touchs Form 990 as salaries and wages. However because ultimately LC is the underlying employer LC supplies the W-2 forms to these employees. The number of employees shown on an organizations 990 is based on the number of filed W-2 forms so this is why Compassionate Touchs 990 reflects 0 employees yet there are amounts reported for salaries and wages. The relationship between Compassionate Touch and LC is disclosed in Schedule R.”