The National Center for Missing and Exploited Children

“FORM 990, PART III, LINE 1 THE MISSION OF THE NATIONAL CENTER FOR MISSING AND EXPLOITED CHILDREN IS TO HELP PREVENT CHILD ABDUCTION AND SEXUAL EXPLOITATION; HELP FIND MISSING CHILDREN; and ASSIST VICTIMS OF CHILD ABDUCTION AND SEXUAL EXPLOITATION, THEIR FAMILIES, and THE PROFESSIONALS WHO SERVE THEM.”

“COMMUNITY OUTREACH: DEVELOP AND DELIVER SAFETY AND PREVENTION RESOURCES FOR FAMILIES AND PROFESSIONALS FOCUSING ON CHILD ABDUCTION, CHILD SEXUAL EXPLOITATION AND INTERNET SAFETY. PROVIDE TRAINING MATERIALS AND SUPPLIES TO THE PUBLIC THROUGH SCHOOLS AND OTHER ORGANIZATIONS. TOTAL EXPENSES: $3,492,726 REVENUES: $ 4,481 TRAINING: PROVIDE TRAINING, TECHNICAL ASSISTANCE AND RESOURCES AT NO COST TO LAW ENFORCEMENT AND CHILD-SERVING PERSONNEL WHO ARE INVOLVED IN CASES OF CRIMES COMMITTED AGAINST CHILDREN, SPECIFICALLY CASES OF MISSING CHILDREN AND CHILD SEXUAL EXPLOITATION. TOTAL EXPENSES: $1,093,473 Family Relationships Form 990, Part VI, line 2 John Walsh and Reve Walsh are family members. These individuals are both reported as members of the Board of Directors on Form 990, Part VII.”

“Form 990, part vi, line 10b ncmec has written policies stating that each branch organization is subject to policies and procedures promulgated by headquarters and subject to the same rules as headquarters. The branches must report monthly to ncmec headquarters about their operations. Ncmec headquarters monitors all activities at the branches to ensure the operations of the branches are consistent with ncmec's exempt purposes.”

“Form 990, part vi, line 11b ncmec undergoes an annual independent audit conducted by an outside accounting firm which produces an audited financial statement for the organization. The independent accounting firm also prepares the form 990. Management reviews the form 990 and compares it to the audit information. The board of directors' audit committee reviews the form 990 to make sure it matches the audit and that the form 990 includes all required program and financial information. Upon approval of the form 990 by the audit committee, the form 990 is made available to all members of the board of directors before the independent accounting firm files the form 990 on behalf of the organization.”

“Form 990, part vi, line 12c each year all members of the board of directors and organization key staff must submit a conflict of interest form. Any potential conflicts are disclosed to and discussed by the board of directors, which decides if a conflict exists and what actions are necessary based on any conflicts. Key staff of the organization and members of the board of directors are instructed to notify the organization if a potential conflict situation arises between the annual disclosures.”

“Form 990, part vi, lines 15a and 15b the process for determining compensation and benefits of employees and officers is an on-going responsibility of the human resources department. A broad range of factors are considered when reviewing compensation and benefits including budget, number of employees, position, experience required, scope of responsibilities, experience and length of service, complexity of the organization, nature and scope of the programs and services provided, institutional knowledge, and performance, among other things. Periodic compensation studies are performed using leading employee benefits and compensation firms of the salaries and benefits of all employees including the senior executives of the organization. Based on these studies adjustments are made to the salary and benefits of all employees, including the president, coo, and cfo to ensure their compensation is appropriate, comparable and reasonable. A compensation committee reviews and approves the compensation and benefits for senior executives including the president, coo, and cfo. The organization has taken steps to make sure that its compensation process meets the rebuttable presumption of reasonableness.”

“Form 990, part vi, line 19 the organization's governing documents (articles of incorporation and bylaws) are mailed upon request. Financial statements for the most recent three years are mailed upon request and the current year financial statement is included in an annual report which is available on the organization's website. The 990 forms for the most recent three years are also available on the organization's website.”

“FORM 990, PART XI, LINE 9 CHANGE IN POST-EMPLOYMENT BENEFIT LIABILITY ($38,320) CHANGE IN VALUE OF UNITRUST AGREEMENT $3,070 Cost of goods sold $27,155 -------- TOTAL ($8,095)”