Shepherds Ministries Inc.

“The Executive Committee consists of all officers of the corporation who are directors of the corporation, the chairperson of each of the standing committees, except the Board Development Committee, and additional members of the Board known as Members at Large elected annually at the time of election of officers. The Executive Committee conducts the business of the corporation between regular Board of Directors' meetings within the general policies set by the Board of Directors.”

“The Form 990 is prepared and reviewed by an independent CPA firm, reviewed in detail and approved by certain members of the organization's board and management, and a final copy of the return as filed with the IRS is presented to the full board before filing with the IRS.”

“Board members and officers are required to disclose potential conflicts on an annual basis. The Board Chairman and Board Secretary monitor the process. Should any potential conflicts of interest be disclosed, the board member or officer would be asked to refrain from participation in any deliberation or decision with regard to matters affected by the relationship.”

“The Board of Directors reviews and approves the compensation for the President and other officers of the organization. The Board of Directors uses comparability data in their analysis. Their decision is documented in the board minutes.”

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

“Compensation reported in Part VII, column D is the amount reported on the individual's W-2, box 1 or 5 (whichever amount is greater) per the IRS instructions. In the case of minister's compensation when box 5 of the W-2 is not applicable, box 1 compensation is used. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of Form W-2. For reporting purposes we have included the employee's retirement plan deferrals in Part VII, column F.”

“During the year ended June 30, 2019, Shepherds discontinued the Independent Living Catalyst program. See Part III, Line 4b for additional details.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 6/30/2019. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $6,791,557 Line 29 - Net assets with donor restrictions $ 123,892 Total net assets $6,915,449”

“Change in value of annuities -1,610. Change in value of trusts 7,480.”

“The organization's Finance 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.”