Texas Food & Fuel Association

“BUSINESS RELATIONSHIPS”

“Membership is made up of seven categories: marketer members, supplier members, refiner suppliers, trade associations, independent operators,independant lube manufacturers and senior members.”

“The members elect the officers of the association.”

“The association provides a copy of the form 990 to its audit council who conducts review of the form 990. The audit council reviews and accepts, and then makes available to the board.”

“By written board policy guidelines, upon election a board member is required to provide written disclosure of any potential conflicts of interest to the chairman of the board. The executive committee then determines whether the potential conflict would prevent the member from carrying out his duties. A board member may be disqualified from service if an actual or potential conflict is not disclosed in advance of any deliberations or decision making on matters related to the areas of potential conflict. Each board member is required to affirm and execute a directors commitment statement that their service on the board does not conflict with board policy prohibiting any conflicts of interest.”

“An official sub-committee of the executive committee called the operations committee is made up of the top 3 officers plus the president/ceo, who is a non-voting member. The president/ceo provides the operations committee with outside comparability data from other associations relative to positions and other key staff, and presents recommendations for all staff positions and any benefit changes for the coming fiscal year. The committee evaluates all the data and recommendations and sets a recommended salary for the president/ceo and an overall total personnel expense for the proposed budget for the coming year. Then the proposed personnel expense line item in the proposed budget they prepare and recommend to the board of directors. Before the annual expo, the board reviews the budget recommendations. During the boards budget discussions the chairman discusses the staff overall performance and salary level and requests a board vote on the proposed personnel expense and budget.”

“See explanation for pt vi, line 15a”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public through written or oral request.”