Foundation for Educational Services Inc.

“The 990 is prepared by the external accountants, reviewed by cfo or other appropriate staff, and mailed to all board members. The 990 is presented to the audit committee and the board.”

“Process for monitoring compliance with conflict of interest policy fes maintains a comprehensive conflicts of interest policy for directors and officers. The policy exists to identify potential instances in which an individual could obtain a direct or indirect personal gain or advantage to the detriment of the organization, or where an individual's conduct could have an adverse or potentially adverse effect on the interests of the organization. The policy contains an affirmative duty to disclose, as well as a specific process for disclosures of potential conflicts of interest, a protocol in which independent, outside legal counsel is used to evaluate whether a conflict exists, procedures for addressing actual conflicts of interest, and consequences for violations of the policy. The policy requires all directors and officers to complete and submit an annual conflicts disclosure form to outside legal counsel. In addition, the conflict of interest policy is included in the employee handbook which all employees must acknowledge and agree to abide by.”

“Review of ceo or top mgmt official compensation outside legal counsel undertakes a comprehensive evaluation of the compensation and benefits packages for officers and other affected employees of the organization, comparing the same to relevant industry and other market comparables. Counsel then provides to the board of directors a summary of the comparability data, an analysis of the data relative to the organizational employees, and a reasoned opinion concerning his conclusion. The board of directors then confirms and ratifies all compensation/benefits packages, with the decision process properly documented as required by the regulations. On a routine basis we engage an independent compensation specialist to provide comparable data for key positions.”

“Review of other officer or key employees compensation same as line 15a”

“Fes does not make its governing documents, conflict of interest policy, or financial statements available to the public.”

“Other miscellaneous revenue: marketing services $10,215 fes provides marketing and security consulting services. These activities are considered unrelated business income.”

“Guy saunders, member of the fes board, is father to elizabeth koop who serves as president of educationquest and member of the retirement plan committee.”

“Program service expenses ----------------- personnel expense 121,420 maintenance 65,584 taxes 15,009 pension plan administration 613 fees and charges 4,145 business development 42,057 charitable contributions 12,600 miscellaneous 20,588 sponsorships 1,300 consulting fees 61,894 dues and subscriptions 7,069 other expenses 81,973 postage and freight 53,143 printing and publications 9,090 registration fees 40,045 meals and entertainment 19,906 expense reimbursement (340,460) ----------------- total 215,976”