Afs-USA Inc.

“Form 990, Part VI, section B, Line 11b THE ORGANIZATION'S FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM. ONCE THE DRAFT OF THE 990 HAS BEEN VETTED AND APPROVED BY RESPONSIBLE STAFF MEMBERS, IT IS REVIEWED BY MEMBERS OF THE AUDIT AND FINANCE COMMITTEES OF THE BOARD. ANY REQUIRED UPDATES ARE MADE PRIOR TO FILING THE RETURN. THE FINAL VERSION OF THE IRS FORM 990 AND SUPPORTING SCHEDULES ARE DISTRIBUTED TO EACH MEMBER OF THE AFS-USA'S BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS.”

“FORM 990, Part VI, Section B, Line 12 THE BOARD AUDIT COMMITTEE RECEIVES A SIGNED CONFLICT OF INTEREST STATEMENT FROM EACH BOARD MEMBER AND KEY EMPLOYEE ANNUALLY. THESE FORMS ARE THEN REVIEWED BY THE AUDIT COMMITTEE. IF THE COMMITTEE DEEMS THAT A POTENTIAL CONFLICT EXISTS, THE MATTER IS REFERRED TO THE FULL BOARD. IF THE BOARD DETERMINES THAT THERE IS A BONA FIDE CONFLICT, THE CONFLICTED PARTY MUST BE RECUSED FROM ANY DISCUSSION AND/OR VOTE ON THE MATTER.”

“FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION HAS INSTITUTED A PROCESS TO REVIEW THE COMPENSATION PAID TO ITS OFFICERS AND KEY personnel AND FOLLOWS THE REBUTTABLE PRESUMPTION RULES OF TREAS REG 53.4958-6. THE ORGANIZATION'S POLICY IS TO CONDUCT A BIANNUAL ANALYSIS OF LIKE POSITIONS AT COMPARABLE ORGANIZATIONS. SUCH INFORMATION IS CONSIDERED WHEN DETERMINING THE COMPENSATION FOR THOSE STAFF MEMBERS THAT HAVE BEEN IDENTIFIED AS DISQUALIFIED PERSONS. THE COMPENSATION FOR THE PRESIDENT IS DETERMINED IN ACCORDANCE WITH RECOMMENDATIONS OF THE COMPENSATION CONSULTING FIRM HIRED BY THE ORGANIZATION AND IS APPROVED BY THE BOARD OF DIRECTORS IN EXECUTIVE SESSION. THE COMPENSATION OF THE CFO IS ALSO DETERMINED IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE COMPENSATION CONSULTING FIRM AND IS APPROVED BY THE PRESIDENT. RECOMMENDED COMPENSATION OF ALL OTHER KEY EMPLOYEES IS APPROVED BY THE PRESIDENT. CONTEMPORANEOUS RECORDS OF COMPENSATION DETERMINATIONS ARE RECORDED IN THE ONLINE HR SYSTEM AND PLACED IN THE INDIVIDUAL STAFF MEMBER'S HR FILE. THE HIRING MANAGER PROPOSES THE SALARY FOR ALL NEW HIRES IN ACCORDANCE WITH THE SALARY GRADE AND RANGE FOR THE POSITION. ALL SALARIES ARE THEN APPROVED BY THE HR DIRECTOR AND THE CFO.”

“FORM 990, Part VI, Section C, Line 19 AFS-USA, PUBLISHES ITS ANNUAL AUDIT REPORT, FORM 990, ANNUAL REPORT, AND SECTION 501(C)(3) IRS DETERMINATION LETTER ON ITS WEBSITE. THE CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE TO THE PUBLIC.”

“Form 990, Part IX, line 24a Participant-related expenses are comprised of: Travel and orientation expenses of $4,738,000; tuition costs of $406,139; network management fees of $439,558; Insurance of $506,351. The remaining balance consists of a variety of smaller miscellaneous expenses.”

“other changes in net assets: change in beneficial interest in perpetual trust: $19,270”