Friendship for Tots Inc

“After 990 is completed by outside accounting firm, a copy is given to the executivedirector for review and approval. The executive director upon receipt of the 990 thenschedules a meeting with members of the board of directors to review form. Questions if anyare presented to the outside accounting firm for clarification. After satisfactory clarification of all questions, the 990 is approved by the board and the outside accounting firm is instructed to finalize the return.”

“During every board meeting whenever the board is engaged in discussion relating toactivities conducted by the organization, entering into a contract, hiring personnel,etc. The issue of whether a conflict of interest exist is routinely considered.”

“In determining the compensation for the organizations executive director and key employeesmanagement of the organization considers the following factors:1) level of education.2) experience.3) compensation paid by other similar organizations.4) financial status of the organization.management will also consult with an outside personnel agency. All discussions pertaining to the decisions reached is documented.”

“Same procedure used for ceo, executive dir and top management. See write-up of procedurein part vi, line 15a”

“The organizations governing documents, conflict of interest policy and financialstatements are maintained at the organizations headquarters and are available to thepublic upon request.”

“At the time in which the original return was filed, management did not have all of the necessary information to file a complete and accurate return. The return is being amended to reflect the new and accurate information obtained.”

“Accumulated depreciaom was overstated of the balance sheet by $990.”

“See attached expense schedule”