Fayette County Community Action Agency Inc.

“After the annual audit has been finalized, a preliminary draft of the form 990 is prepared and provided to the board. The form is then reviewed by the board and the organization's ceo. Once the board determines that the form is complete and accurate, the form is finalized and signed by the ceo prior to filing with the internal revenue service.”

“Enforcement of conflicts policy, employees and board members are required annually to complete and sign a confilct of interest statement or when there is a change in a staff or board member's status regarding conflict of interest.”

“Compensation process for top offical ceo compensation is based on an employment agreement with the executive director that was originally dated july 1, 2003, and extended july 1, 2008 through june 30, 2013 and will continue on a month to month basis, beginning on july 1, 2013. The ceo's annual salary is increased 4% as of the first day of each following year of the agreement which begins july 1. In addition, the ceo will receive a bonus equal to 1% of of his annual salary for the prior year and be eligible for an additional bonus of up to 4% of his annual salary based on net asset growth and net cash growth, not including cash from incurring additional debt. Compensation process for officers and key employees, the organization uses comparability studies including other caap (community action agencies of pa), other such positions in the area and check information online for the regional area.”

“Governing documents disclosure explanation is available to the public by request and appointment.”

“Food: program service expenses 367,489. Management and general expenses 0. Fundraising expenses 0. Total expenses 367,489. Transfer to affiliate: program service expenses 332,867. Management and general expenses 0. Fundraising expenses 0. Total expenses 332,867. Contracted services: program service expenses 249,998. Management and general expenses 0. Fundraising expenses 0. Total expenses 249,998. Repairs and maintenance: program service expenses 122,602. Management and general expenses 16,498. Fundraising expenses 0. Total expenses 139,100. Dues and fees: program service expenses 35,230. Management and general expenses 12,936. Fundraising expenses 0. Total expenses 48,166. Real estate taxes: program service expenses 40,273. Management and general expenses 0. Fundraising expenses 0. Total expenses 40,273. Transportation: program service expenses 36,153. Management and general expenses 0. Fundraising expenses 0. Total expenses 36,153. Printing: program service expenses 21,512. Management and general expenses 13,060. Fundraising expenses 377. Total expenses 34,949. Equipment and software (purchase/rental): program service expenses 28,843. Management and general expenses 0. Fundraising expenses 0. Total expenses 28,843. Satellite center: program service expenses 20,604. Management and general expenses 0. Fundraising expenses 0. Total expenses 20,604. Security deposit assistance: program service expenses 10,155. Management and general expenses 0. Fundraising expenses 0. Total expenses 10,155. Postage: program service expenses 3,001. Management and general expenses 6,596. Fundraising expenses 418. Total expenses 10,015. Client disbursements: program service expenses 4,744. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,744. Return to funding source: program service expenses 3,497. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,497. Books and subscriptions: program service expenses 1,757. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,757. Insurance claim reimbursement: program service expenses -16,506. Management and general expenses 0. Fundraising expenses 0. Total expenses -16,506.”

“The audit committee assumes responsibility for oversight of the audit and selection of an independent accountant.”