The William Rockhill Nelson Trust

“Business relationship between trustees and officers- Per the IRS instructions, certain business relationship between the organization's current officers, directors, trustees, or key employees, as reported in Part VII, Section A, must be disclosed. Because of the interrelated nature of the filing organization with its related entities (as disclosed in Schedule R), all of the officers and trustees have overlapping responsibilities and thus have business relationships.”

“Description of changes to governing documents- the terms of the trust were modified by judgment of the circuit court of jackson county, missouri. The modifications included: (a) the trustees of the filing organization and the nelson gallery foundation will now be identical. (b) the distinction between the class a and class b trustees of the foundation were eliminated and there is now a single class of trustees for both the trust and the foundation, all of whom have equal powers and responsibilities. (c) the role of the university presidents in appointing university trustees of the trust was eliminated. (d) other policies were established to govern the administration of the trust and foundation. (e) permission was granted to trustees to modify the bylaws in the future as they deem appropriate without court approval, including increasing or decreasing the number of trustees of the trust and foundation, the manner in which successor trustees of the trust and foundation are appointed, the terms and term limits for trustees, the number and type of officers of the trust and foundation, the number and type of committees of the board of trustees, the powers that may be delegated to a committee and the number of trustees or committee members required to make or approve decisions of the board of trustees or any committee.”

“Other persons who had the power to elect members of the governing body- trustees elected to the governing body of the nelson gallery foundation, a related nonprofit organization, are also elected to the governing body of the filing organization.”

“Describe the process used by management &/or governing body to review 990- initial compilation of the information for the return is completed by finance department staff with review by the director, finance and subsequent review by the chief operation officer prior to transmission to the accounting firm for return preparation. Upon receipt of the completed return and review by the director, finance, the return will be provided ot the chief executive officer, chief operation officer, audit committee and to all trustees for review prior to filing.”

“Monitoring and enforcement of compliance with conflict of interest policy- the conflict of interest policy requires the completion of a written questionnaire by each trustee, officer, member of a committee with board-delegated power and key employees, on an annual basis. The questionnaire addresses each individual's acknowledgement of the receipt of the code of conduct and the conflict of interest policy and their compliance with it, along with requiring responses to detailed questions related to specific areas that could raise a conflict. The board chair of the board of trustees would review any identified conflicts of interest and determine whether any further action would need to occur.”

“Process for making documents available to the public- the governing documents and conflict of interest policy are not generally made available to the public. Audited financial statements for the prior year are available on the organization's website.”

“Other changes in net assets or fund balance- change in net assets due to acquisitions and dispositions of art and library collections $ (1,033,852) change in value of trusts held by others 1,435,850 ----------- $ 401,998”

“Oversight or selection process- the audit committee of the nelson gallery foundation is responsible for engaging the audit firm and review of the draft combined audited financial statements before issuance.”