D'Arbonne Water System Inc

“Members of the organization are water customers who purchase membership.”

“Board members are elected by members at the annual membership meeting.”

“Board actions are approved by members at the annual membership meeting.”

“Only the board president reviews the form 990 prior to signing the return. No review was or will be conducted by other members.”

“Procedures for addressing the conflict of interest a. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. B. The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate the alternatives to the proposed transaction or arrangement. C. After exercising due diligence, the governing board or committee shall determine whether d'arbonne water system, inc. Can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. D. If a more advantageous transaction or arrangement is not reasonably possible under circumstance not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in d'arbonne water system, inc.'s best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.”

“All documents are available for review during business hours at the main office of the organization.”

“The board of directors assumes responsibility for the oversight of the audit.”

“Generally accepted accounting standards require that capital grants received should be initially recorded as deferred revenue and recognized as revenue over the useful life of the asset. For 2022, capital grants were reported as income in the year received rather than as deferred revenue. The 2022 financial statements have been restated to reflect the correct accounting treatment of the grant funds. The net effect of the restatement was to reduce grant income and increase deferred revenue $426,904 to reflect the portion of the grant funds received associated with capital assets.”