Christel House International Inc.

“Non-independent voting members christel dehaan and cheryl wendling are compensated by christel house international, inc., and therefore are not independent voting members of the board of directors.”

“Process for reviewing the form 990 the draft form 990 is prepared by bkd, llp, an independent public accounting and auditing firm. The draft is reviewed in detail by the svp, treasurer, chief financial officer, and accounting manager. After appropriate modifications resulting from this review, a revised draft is provided to the chief executive officer as well as all members of the board of directors. The ceo and board members communicate any questions and/or revisions to the cfo who coordinates final revisions with bkd. Management, the full board of directors, and the finance, audit, and compensation committees review the return prior to filing.”

“Process for monitoring compliance with conflict of interest policy christel house international maintains comprehensive conflict of interest policies for all employees, officers and directors. The policy related to employees and officers is contained in the employee handbook which is reviewed annually with all employees. In connection with this review, all employees and officers disclose & sign a conflict of interest statement. In addition, the policy requires reporting of conflicts or potential conflicts arising any time during the year. The board of directors similarly review and disclose conflicts annually and are required to report conflicts that may arise during the year. The conflict of interest disclosures are reviewed by the senior vice president/secretary and the cfo/treasurer. If there is a conflict, it is brought to the president/ceo's attention. The board member with the conflict of interest abstains from voting on transactions related to the conflict of interest.”

“Review of ceo or top mgmt official compensation the ceo's compensation has been set at the minimum wage for 24 hours a week. The finance, audit and compensation committee of the board reviews and approves this compensation annually. The last review was completed in december 2013.”

“Review of other officer or key employees compensation the cfo's compensation is determined based on the market value for similar positions of other comparable organizations including other for-profit and not-for-profit organizations. The experience level of the candidate and the span of reponsibilities of the position are also taken into consideration in determining compensation. The president reviews and approves the cfo's compensation. The last review took place in february 2013. Annually the chief financial officer and president review and approve compensation of the senior vp/secretary along with all other officers and employees relative to published inflation rates, published salary survey data and through inquiries of human resource departments of area not-for-profit and for profit organizations. Data from these sources are then utilized along with results of the formalized performance assessment process to establish annual salary adjustments as well as bonus attainment.”

“Governing documents available to the public all governing documents, tax returns, etc. Are available upon request. In addition the form 990, annual report and audited financial statements can be viewed on the organization's website.”

“Employee compensation christel house international, inc. Compensates its employees through a "common paymaster" type account maintained by cd enterprises, ltd. On a direct cost basis. Other entities, which may or may not be related to christel house international, inc., but are related either directly to or indirectly to the founder of christel house international, inc., also use this account for compensating employees for administrative convenience.”

“Revenue less expenses the annual operating results of christel house international, inc. (chi) are significantly impacted by the timing and amount of contributions received from the organization's founder and chief executive officer as well as the timing of grants disbursed by chi in support of operations of affiliated learning centers. The combination of these two factors resulted in the $5.3 million revenue in excess of expenses reported in 2012 as well as the $750 thousand expenses in excess of revenues in 2013. Form 990, part viii, line 1h statement of revenues founder contributions vary significantly from year to year based upon numerous considerations. Founder contributions in 2012 totalled $6.7 million while such contributions totaled $967 thousand in 2013. The average annual founder contributions for the five-year period from 2008 through 2012 was approximately $6.2 million. The relatively high founder funding in 2012 significantly impacted the excess of revenue over expenses in that year.”

“Number of employees reported on form w-3 the employees of christel house international, inc. Are paid through a common paymaster, therefore are not reported on form w-3. The number of employees shown in part 1, line 5 represents the number of employees during the year.”

“Statement of functional expenses management & general expenses and fundraising expenses represent 10.8% and 11.3%, respectively, of total 2013 expenses. These percentages are significantly impacted by the timing of the christel house international's grantmaking to foreign affiliated learning centers. To take advantage of the strength of the us dollar, the organization made grants in 2012 covering a portion of the affiliates' 2013 requirements. As such, 2012 grants of $3,800,515 was significantly less than 2013 grants of $6,016,871. These annual grant figures significantly impact total expenses; and as such, also significantly impact management & general and fundraising expenses when stated as a percentage of total expenses. To effectively evaluate the organization's expenses by functional area, it is beneficial to analyze the data for greater than one year. For the five-year period from 2009 through 2013, programs and services, management & general, and fundraising expenses represented 81.5%, 8.5% and 10%, respectively.”