Hillcrest Scurlock Water System Inc

“The members of the water system pay a refundable security deposit upon applying for service. They have the right to vote on the members of the board, which handles the operations of the system.the board elects the officers of the system and hires employees.”

“Members elect the board members who elect the officers of the organization. The officers make management decisions.”

“The large decisions to invest in additional wells or capital assets or enter into loans with financial institutions are approved by the members.”

“Minutes are maintained of member or board meetings and are retained by the secretary.”

“The board members are afforded a copy of the form 990 for their review are the monthly meeting prior to the filing date.”

“The board approves the salaries of all employees including officers and the annual directors fee.”

“The previous statement covers all compensation to officers, directors and employees.”

“The system maintains an office in which all documents, contracts, minutes of meetings and any other documents are readily available to the general members any time they desire to examine them. There are copies of all policies and procedure manuals, as well as; any requirements regarding conflicts of interest or financial statements maintained at the corporate offices which are within the water district geograpic area of the water district.”

“One bank account was omitted from bank statements in prior years without the knowledge to the president of the organization. When added to the books a correction on prior years balance was necessary.”

“See the attached schedule of Other Expenses listed as Overflow information. Operating Supplies 16,678 Postage 2,204 Dues 1,240 Repairs and Maintenance 24,233 Telephone Expenses 3,388 Water Analysis 10,740 Yard Work 3,175 Fireman'S Dinner 366 Total 62,024”