Appalachian Investment Corporation

“AIC does not have a committee with the authority to act on behalf of the governing body.”

“The first level of review of the Form 990 is by AIC's finance director, who provides the preparer with the information for the return and works closely with the preparer to ensure its accuracy and completeness. The AIC president reviews the form before signing it. The Form 990 is distributed to the board electronically before it is submitted to the IRS.”

“The AIC board has established a conflict of interest policy that specifies conflicts of interest to be avoided. The board of directors may make exceptions to the policy in specific cases when the situation is fully disclosed to them. A provision of the conflict of interest policy is that that each director, officer and employee must receive, sign and return a copy of a summary of the conflict of interest policy. Annually, AIC board members and Mountain Association for Community Economic Development, Inc. (MACED) employees who work on AIC business sign the summary anew, affirming that they have read and understand the policy. As part of the annual audit process, board members and other related parties fill out a related party questionnaire on which they report any interests and transactions that could give risk to conflicts of interest. Any conflicts of interest are disclosed as part of the audited financial statements.”

“Staffing for AIC is provided by MACED, so the MACED compensation practices are applicable. Annually, the MACED president is evaluated through a process guided by the MACED board executive committee, composed of the board officers (chair, vice-chair, board treasurer and board secretary). The executive committee reports its findings to the board in closed session. After considering the committee's report, the MACED board sets the president's compensation for the following year. The board takes into account compensation levels reported on Forms 990 for the CEOs of three to five comparable organizations as well as its knowledge of compensation of positions in the private and nonprofit sectors with comparable levels of responsibility, qualifications and achievement. The president does not participate in or vote on the decision on the president's compensation. The board's decision on compensation is recorded in minutes which are presented and approved at the following board meeting. This process last took place in 2013. The president determines the compensation of other staff, including those who serve as corporate officers, following an annual performance review of each staff member. Along with considerations of equity among staff, the president takes into account compensation levels reported on Forms 990 for officer positions in three to five comparable organizations as well as his knowledge of compensation of positions in the private and nonprofit sectors with comparable levels of responsibility, qualifications and achievement. Every change in a staff salary is documented in a letter to the staff member.”

“AIC's Articles of Incorporation and summary conflict of interest policy are available on request. AIC's financial statements are consolidated with those of the Mountain Association for Community Economic Development, Inc. (MACED) and MACED's subsidiary Ridgecrest Enterprises. The corresponding audit report on the consolidated financial statements of MACED and its affiliates is available at www.maced.org.”

“CONSULTANTS: Program service expenses 2,400. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,400.”