The Arc Greater Twin Cities

“The organization has dues-paying members in accordance with its bylaws.”

“The members vote on the members of the board of directors and the slate of officers at the annual meeting.”

“The members must approve any changes to the by laws that relate to the definition of the quorum for member votes, or changes to board terms.”

“The finance committee will review the detail of form 990 at a finance committee meeting with the auditors. A copy will then be presented to the members of the board of directors with a summary presentation at a board meeting prior to filing the form 990.”

“The organization follows procedures detailed in its board policy manual and addresses potential conflicts of interest as they arise. The policy is intended to comply with the procedure prescribed in minnesota statutes, section 317a 255, governing conflicts of interest for directors of nonprofit corporations.”

“The compensation committee of the board of directors identifies disqualified persons on an annual basis, and obtains, reviews and assimilates comparative compensation for those positions. The committee reviews and approves appropriate strategies and processes for the arc greater twin cities' policies and practices regarding compensation of disqualified persons and other executive management positions. The committee considers the reasonableness and appropriateness of compensation and benefits in relation to the marketplace and comparative data the recommendations of the committee are forwarded to the full board for approval.”

“The annual audit report, the annual operating budget and form 990 will be posted on the agency website. In addition, a copy will be made available in our program office upon request, or mailed to requesting parties within three days. Other governing documents are also available upon request.”

“Change in accounting principle 308,232.”

“The organization has elected to change its accounting principle relating to recording their participation in the unemployment services trust (ust). Under the previous principle that the organization had utilized, contributions made to the ust reserve account were recorded as an unemployment tax expense. With the new principle that has been elected by the organization in 2014, the organization will record contributions to the ust reserve account as other asset and unemployment tax expense will be recorded when the claims are incurred. The new principle is preferable as it is a better representation of actual unemployment tax expenses incurred by the organization due to decreasing claims and increasing refunds in recent years. The cumulative effect of the change in accounting principle on net assets as of the beginning of the earliest period presented in these financial statements, which is net assets as of january 1, 2013, is $308,232.”

“The organization did not change its oversight or selection process for the audit of the financial statements.”