Elk River Club

“The bylaws were revised to allow for preferred contributions from members. Members may voluntarily contribute funds to the club for capital improvements in a manner and upon terms established by the board of directors (a "preferred contribution"). Any preferred contribution will not be repaid to a contributing member except in the event of a complete liquidation and final dissolution of the club (section 18), wherein a preferred contribution shall be considered an obligation of the club to be repaid before any redemption amounts or other member distributions.”

“The organization has the following classes of membership: founder (closed to new members), charter (closed to new members), reserve (closed to new members), social (closed to new members), regular golf, regular non-golf, associate, intermediate, temporary, honorary and executive.”

“Each founder member, charter member, reserve member, regular golf member, and regular non-golf member member shall have the right to cast one vote for as many persons as there are directors to be elected.”

“Certain decisions by the board of directors may be subject to overall member approval, as determined in the organization's by-laws. These decisions include by-law revisions as well as assessments and capital spending in excess of $500,000.”

“A review of the form 990 was undertaken by the organization's general manager and controller prior to the filing of the tax return. A copy of the form 990 was presented to the board of directors prior to filing the tax return.”

“Determination of whether a conflict of interest exists will be made by the board. Each officer and director will recuse himself/herself from any discussion and vote for which a potential conflict exists during the year. In addition, any possible contractual arrangement between the club and any member of the club is required to be approved by the board.”

“The compensation of the general manager and key employees has been independently approved by the board. The board's approval of compensation is documented in the meeting minutes. The compensation is based upon the compensation paid to the general manager and key employees of clubs comparable in size in the approximate geographic area. Annual increases consist of a standard cost of living adjustment and are approved by the board as part of the annual budget process.”

“Financial statements are available upon request to the public.”

“Equity from initiation fees 90,000. Refunded equity contributions -100,418. Refunded initiation fees -26,667. Resigned members' equity applied toward memb. Dues during inactive status -19,250. Existing members' equity applied toward initiation fees of children -22,500. Preferred contributions 749,751.”

“The organization has an audit committee which oversees the financial statement audit as well as the selection of auditors. There has been no change in this from the prior year.”