Hilton Head Symphony Orchestra Inc.

“The orchestra utilizes the services of an independent public accounting firm for the audit of its financial statements and the preparation of its federal income tax return form 990. Upon completion of form 990 by the accounting firm, a copy of the 990 is reviewed by the orcestra's accountant and chief executive officer. This copy is also made available to the finance committee or board of directors for their inspection before the 990 is filed. Once the orcestra's accountant and ceo have reviewed and approved the 990, the authorization to electronically file is signed by an authorized representative of the orchestra.”

“The orchestra has adopted the policy that in connection with any actual or possible conflict of interest, an individual must disclose the conflict (financial or otherwise), be given the opportunity to disclose all material facts to the directors and members of related committees. The governing board or committee shall decide if a material conflict exists. If the board determines that a conflict of interest does exist, the individual will be given the opportunity to resolve the conflict of interest or face dismissal.”

“The position of executive director is monitored by the governing board. The board of directors reviews the performance of the executive director and salary increases are subject to the boards approval. In the event of a vacancy in any management position, several members of the board of directors are appointed as the selection committee to interview and screen applicants suitable for the vacant position. The applicans chosen are then interviewed a second time by the governing board. All filled vacancies are subject to board approval.”

“The positions of key employees are monitored by the orchestra's management. Salary increases are subject to the approval of the governing board. In the event of a vacancy in any key employee positions, members of management screen applicants suitable for the position with new hirees subject to governing board approval.”

“The orchestra maintains a file on premises with copies of their charter, not-for-profit status letter, income tax returns, reviewed financial statements, and other governing documents as required in compliance with regulations related to the availability of such documents to the gneeral public. A copy of federal form 990 is on file with the south carolina office of the secretary of state public charities division.”

“Adjustment for py book-tax difference 21,118 audit adjustment 400 adjustment for cfl endowment fund 201,517 audit adjustment 4,000 rounding 2 adjustment to cfl endowment fund to reflect restatement of endowment fund balances to conform to the audited financial statements. The adjustment reflects the reversal of contributions of funds held by the community foundation of the lowcountry for the benefit of the hilton head orchestra. While, the community foundation of the lowcountry will accept the donor's designation as long as the orchestra continues to serve the public interest, these amounts can not be recognized as contributions by the orchestra under generally accepted accounting principles, until the funds are received or until this condition is removed.”