City Year Inc.

“Form 990, part 1, line 1 & part iii, line 1 continued: as tutors, mentors and role models, these diverse young leaders help children stay in school and on track, and transform schools and communities across the united states.”

“Form 990, part 1, line 7b the amount reported on part i, line 7b includes certain qualified transportation fringe benefit expenses subject to unrelated business income tax under irc section 512(a)(7) that are not revenue and, therefore, not reported as such on form 990, part viii.”

“Form 990, part iii, lines 4a & 4b 4a - in school service (continued): in each of city year's 327 partner schools, the team provides academic support, attendence monitoring and incentives, positive behavior support, after-school programng events (such as assemblies and celebrations) that improve the overall school environment. The service model helps the corps members have an impact beyond the 38,912 students reached directly through one-on-one and small group instruction. Corps members change the environment of a school by immediately changing the ratio of students to responsible, caring adults. In addition to the in-school services, 17,073 students were provided with after-school and school vacation programs. 4b - youth civic engagement (continued): city year was founded on the belief that a year of national service could serve as a civic rite of passage - a uniquely transformational life experience that, while helping transform communites in need, could bend the trajectory of an idealistic young person's life towards a lifetime of active citizenship and civic leadership. These principles guide the "idealist's journey," a full curriculum that all corps members experience as part of their own development as leaders.”

“Form 990, part vi, section b, line 11b the tax return information is gathered by the finance office and used to populate the form 990, in conjunction with kpmg, llp, independent tax consultant. Once completed, the draft form is forwarded to the audit committee members to complete their review and approval of the form. It is provided to the entire governing committee for their review and comment prior to the filing of the form.”

“Form 990, part vi, section b, line 12c all trusteess must disclose to the board any possible conflict of interest at the earliest practicable time. No trustee may vote on any matter under consideration at a board or committee meeting in which such trustee has a conflict of interest. The minutes of such meeting will reflect that a disclosure was made and a trustee who is uncertain whether a conflict of interest may exist in any matter may request the board or committee to resolve the questions. Annually, trustees are required to sign and submit to the audit committee for review conflict of interest statements disclosing any potential conflicts.”

“Form 990, part vi, section b, line 15b city year strives to be the employer of choice for highly talented professionals seeking a position with a mission-driven, entrepreneurial non-profit. Our goal is to attract, develop and retain high-performing talent from diverse backgrounds and industry sectors. City year rewards employees for their individual job performance and contributions to the organization, and cultivates and promotes an inclusive work environment. City year targets compensation above the market average to reflect city year's greater emphasis on performance, leadership and entrepreneurship, and to enable city year to attract and retain high-perfoming talent from diverse backgrounds and industry sectors. City year compares itself to both non-profit and private sector organizations of similar size. In addition consideration is given to other organizations' structures, as well as to anything about a particular position that may be unique to city year. The purpose of the compensation policy is to establish consistent, sustainable, competitive, and transparent pay practices, aligned with city year's organizational strategy and compensation philosophy, across all departments and divisions of city year, inc. The people department is responsible for updating and managing enforcement of this policy. Procedure for setting market reference points the people department benchmarks current market reference points using market data for representative positions from organizations as described above, and revises the market reference points for each group as needed. Market reference points for the chief executive officer and the ceo's direct reports (typically, but not limited to, the president, chief financial and administrative officer) must be approved by the chair and the vice-chairs of the board of trustees. Procedure for salary increases chief executive officer - all increases are determined and approved by the executive committee of the board of trustees, and communicated to the people department for processing. Ceo direct reports - all increases are proposed by the ceo, must be approved by the chair and vice chair, if any, of the board of trustees, and communicated to the people department for processing. Senior leadership team - all increases are proposed by the ceo's direct reports, must be approved by the ceo, with input from the chair and vice chair, if any, of the board of trustees, and communicated to the people department for processing. Executive directors, vice presidents, and any staff member with a base salary >$100k - all increases are proposed by the employee's manager to the people department, must be approved by the ceo, and communicated to the people department for processing. The deliberation and decisions are documented contemporaneously.”

“Form 990, part vi, section c, line 19 city year's form 990 and financial statements (audited annually) are made available to the general public through the organization's website, on request, and available for inspection at headquarter offices. City year makes its governing documents and conflict of interest policy available upon request. Additionally, the form 990 is available at www.guidestar.org.”

“City year is one of seven members of city year south africa citizen service organization, a separate legal entity which is incorporated under south african charitable organization laws. One individual member of city year south africa is also a trustee of city year. City year does not control and has no obligation to support or be a beneficiary of the net assets of city year south africa. As such, the financial records of city year south africa are not consolidated within. City year has an affiliation agreement with city year uk, an organization incorporated as a company limited by guarantee under the english charity act. The affiliation agreement provides for, among, other things, a governance structure that establishes the program as a fully independent uk charity, with city year entitled to appoint two persons to the board of directors. City year uk is, and shall at times, remain financially independent from city year. City year does not control and does not have any financial obligation, responsibility or liability to city uk. As such, the financial records of city uk are not consolidated here within.”

“Part xi, line 9 unrealized net gains on change in fair market value of interest rate swaps $175,071”