Educational Commission For

“The Finance and Audit Committee of the Board has been charged by the board to review the Form 990 as completed by the outside auditor, BDO USA, LLP prior to it being filed with the Internal Revenue Service. All members of the Finance and Audit Committee will receive final draft copies of the Form 990 and then given the opportunity to make inquiries about any information contained therein.”

“It shall be the responsibility of all Trustees and Key Employees to identify promptly to the chair of the board of ECFMG or FAIMER, as appropriate, all "possible conflicts of interest" whenever they arise; to declare their lack of independence; and to refrain from any discussions or deliberations regarding the identified "possible conflicts of interestvoting on or taking any other action with respect to such matter. Failure to properly disclose a "conflict of interest" may subject the board member or key employee to disciplinary action up to and including dismissal from the board or termination of employment. Annual conflicts of interest disclosure forms for board and key employees: A conflicts of interest disclosure form shall be circulated annually to all current trustees and key employees. The Senior Vice President of ECFMG shall make a determination annually as to which current employees of ECFMG and FAIMER meet the definition of key employee for the purpose of the questionaire. The conflicts of interest disclosure form shall be distributed in December of each year covering the current calendar year. Completed forms shall be returned to the Secretary of the Board for ECFMG. The Board Secretary shall have the responsibility to monitor the completion of requested forms and for making appropriate follow-up inquiries to non-responders. Non-responders to the Secretary's requests shall be reported to the Chair of the Boards of ECFMG and FAIMER as appropriate. Completed conflicts disclosure forms shall be reviewed by the Senior Vice President, or in the case of the disclosure form of the Senior Vice President, by the President, and a report made annually of all indentified "possible conflicts of interest". Legal counsel shall render an opinion directly to the Chair and President of the respective organization regarding such matters.”

“The Executive Compensation Committee of the Board has the responsibility for reviewing executive compensation of highly compensated employees which includes the CEO, Vice President of Operations, Senior Vice President for Finance and Support Services and Executive Director for Clinical Skills Examinations (The Senior Staff). Annually this Committee commissions an independent compensation consultant to conduct a comparative survey of compensation and benefits of comparable key positions from similar organizations to ECFMG's Senior Staff. Also, included in the review is the Director of Human Resources and the Senior Director of Information Technology. The Committee compares the results of the compensation survey to the compensation paid to executives of ECFMG and makes adjustments, if appropriate. Annually, the Executive Compensation Committee reviews the performance of the CEO and recommends a salary increase percentage as appropriate given the performance of the CEO and the financial results of ECFMG for that year. The Committee also reviews and approves salary increase recommendations made by the CEO, for the Senior Staff. Contemporaneous minutes of all Executive Compensation Committee meetings are made reflecting the actions taken with respect to Senior Staff compensation. The result of the Committee's actions are summarized and reported to the Board. Senior Staff compensation reviews commenced in 2001.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available upon request.”

“Assessment of foreign medical school graduates for entry into U.S. residency and fellowship programs and sponsorship of foreign physicians as exchange visitors in graduate medical education programs.”

“The Educational Commission for Foreign Medical Graduates (ECFMG) promotes quality health care for the public by certifying international medical graduates for entry into U.S. graduate medical education, and by participating in the evaluation and certification of other physicians and health care professionals nationally and internationally. In conjunction with its Foundation for Advancement of International Medical Education and Research (FAIMER), and other partners, it actively seeks opportunities to promote medical education through programmatic and research activities.”

“EVSP - Exchange Visitor Sponsorship Program - ECFMG is authorized by the U.S. Dept. of State to sponsor J-1 Exchange Visitor physicians in accredited programs of medical education or training or advanced research programs.”

“There have been no changes during the year in the process for oversight of the audit of the financial statements.”

“Equity in net loss in joint venture -387,160 income from joint venture 58,856 beneficial interest in net assets of faimer -3,162,050 ---------- change in net assets or fund balances -3,490,354”