American Osteopathic Foundation Inc.

“The foundation board retains the services of an independent cpa firm to prepare the organization's form 990. Management reviews the completed form 990. A meeting or conference call is later scheduled for the cpa firm and organization management to discuss the form 990 with the designated committee. A full copy of the form 990 is provided to all voting members of the governing body prior to filing. The governing body is provided a reasonable amount of time to review the return and ask any questions directly to organization management or the contact at the independent cpa firm prior to filing.”

“Officers, directors and key employees are annually required to complete a conflict of interest disclosure statement as a precursor to their service to the organization. Potential conflicts are logged with and monitored by the secretary of the board.”

“Compensation review procedures are performed by the American Osteopathic Foundation's (AOF) Compensation Committee consisting of the AOF's Executive Committee. Each Committee member is free from any relationships or conflicts of interest with respect to the organization or the organization's staff that may impair, or appear to impair, the director's ability to make independent judgments regarding compensation policies. Members of the Committee are appointed by the Board and may be removed by the Board at any time with or without cause. It is the Committee's responsibility to develop and approve the compensation, benefit, bonus and incentive plan policies for the organization. The Compensation Committee has retained a compensation consultant who assists the committee in evaluating compensation, including a comparability analysis that includes other organizations within the industry and relevant geographic market. The Committee has the sole authority to approve the consultant's fees and to direct the consultant's work. Development of the plan includes a review of current policies related to insurances, retirement savings plan, etc, included in the American Osteopathic Association's (the "AOA") employee manual. Within the budget guidelines of the organization, the Compensation Committee annually approves corporate goals and objectives relevant to compensation of the employees of the AOF including the Executive Director. The Committee evaluates the Executive Director's performance in light of those goals and objectives, and reviews and recommends the Executive Director's compensation, including (a) salary; (b) bonus or incentive award; (c) supplemental benefits, including health, retirement benefits and deferred compensation; (d) employment agreements, severance arrangements, and any amendments or waivers to these agreements or arrangements, based on this evaluation. The Compensation Committee annually reviews and approves the Executive Director's recommendations in the following areas in respect of all other employees: (a) salary; (b) bonus or incentive award; (c) supplemental benefits, including retirement benefits and deferred compensation; (d) employment agreements, severance arrangements, and any amendments or waivers to these agreements or arrangements. The Compensation Committee makes a recommendation to the full board for its approval of the compensation of the Executive Director and all other AOF staff.”

“Governing documents and financial statements are available through applicable governmental agencies; the conflict of interest policy is available upon written request to the organization.”

“The foundation board has a finance/audit committee that assumes responsibility for oversight of the audit of its finiancial statements and selection of an independent accountant.”