Covenant Christian Schools of Indianapolis Inc.

“The Executive Committee is composed of the Chairman of the Board, Secretary, and at least two Directors. The Committee has the authority of the Board of Directors in the management and business of the Corporation between meetings of the Board of Directors. The Committee meets and decides on critical issues in those occasions when Board action is required. The Committee documents actions taken and presents them for ratification to the full Board at its next meeting.”

“Form 990 was prepared by an independent CPA firm and reviewed in detail by top management. After top management review, the Finance and Audit Committee reviewed and approved Form 990. The return was then distributed electronically to all board members prior to filing with the IRS.”

“All officers and directors annually complete conflict of interest statements. The Executive Committee of the Board reviews the signed statements and monitors any interests that could give rise to conflicts. Should any potential conflicts of interest be disclosed, the director or officer would be asked to refrain from participation in any decision with regard to matters affected by the relationship.”

“Independent Board members serving on the board's finance committee determined the CEO's compensation using comparability data based on local private secondary schools. This process is documented. The CEO, who is independent of the Assistant Treasurer, determined his compensation based upon comparabiltiy data. This process is also documented. The process is repeated on an annual basis for the upcoming school year.”

“The school's governing documents, conflict of interest policy and financial statements are available to the public upon request.”

“The financial statements of the School have been prepared on the basis of accounting used for income tax reporting. This basis differs from generally accepted accounting principles (GAAP) primarily because the School has established a replacement reserve and a obsolescence reserve for major asset replacement.”

“The organization's Audit Committee assumes responsibility for oversight of the audit of its financial statements and selection of its independent accountant. This process has not changed since the prior year.”