Functional Industries Inc.

“A finalized copy of the form 990 is presented to the organization's president, ceo and cfo for review. Once reviewed, the president, ceo and cfo discuss any changes that are necessary. The cfo completes any necessary changes and then forwards to fii's corporate compliance officer for final review. Once the final edit has been approved by fii's president, ceo, cfo and the corporate compliance officer, the form 990 is submitted to leadership to obtain authorized signatures. Copies of the form 990 are filed in the cfo's annual audit file and with corporate compliance.”

“The conflict of interest policy is monitored annually to ensure compliance.”

“The governance conducts an annual, formal, written review of the executive leadership's performance in relation to overall corporate performance versus target, individual performance versus target, and professional development, accomplishments and opportunities. A board endorsed compensation philosophy has provided a broad-based foundation for the design and implementation of an effective compensation and performance management plan for executive leadership. The executive compensation and management plan is broad enough to provide an enduring foundation, yet specific enough to allow the board to make annual compensation decisions based on an informed and reasonable basis. Functional industries utilizes the services of outside consultants to develop/maintain an executive compensation plan that will attract and retain leadership talent, respond to market trends, reflect the value of the functional demands of executive work and reward performance results.”

“Copies of the organization's governing documents, financial statements and policies are made available to the public upon request.”

“Return is being amended to include changes for employee retention credits (erc) that were filed for after return was filed. The 2019 return was amended for the same purpose and the beginning balance sheet and part i summary for the prior year were updated to reflect those changes. In the current year, there is additional interest income of $77,655 and decreased wages of $666,141. There are also changes to the compensation on the board listing from the prior return due to the original return using the incorrect period for compensation. The following is a summary of amounts that changed on the amended return for the current year erc: page 1: line 10 500,924 line 15 2,521,836 line 19 1,277,784 line 20 12,234,898 line 22 11,763,824 page 2: line 4a (expenses) 2,807,301 page 9: line 3d 156,811 page 10: line 7a 1,393,625 line 7b 1,023,622 line 7c 370,003 page 11: line 15 849,218 line 27 11,763,824 schedule a part ii: line 8d 116,862 line 8e 174,811 schedule d part xi: line 4b 421,768 schedule d part xii: line 2d 322,028”