North Alamo Water Supply Corporation

“Customers must become members to receive services.”

“Board members are elected by membership”

“Membership annually approves the financial statements for the immediate preceeding year.”

“North alamo water supply corporation does not have committees.”

“One or more of the directors and management review the tax return before it is filed.”

“Officers and directors are required to inform the board of directors of any conflict of interest and must abstain from voting on any actions where they have a conflict. Others are encouraged to report any undisclosed conflicts to the board.”

“General manager and hr director provide board of directors with recommendations based on supervisor evaluations. General manager makes recommendations for department head compensation. Board acts on recommendations and sets general manager compensation. The board of directors annually reviews and adjusts compensation for company employees.”

“Governing documents, audited financial reports, policies, rate schedules, etc., are available during normal business hours at the central office.”

“Equipment maintenance & operations: program service expenses 729,913. Management and general expenses 162,268. Fundraising expenses 0. Total expenses 892,181. Supplies & small tools: program service expenses 318,672. Management and general expenses 140,951. Fundraising expenses 0. Total expenses 459,623. Postage: program service expenses 383,456. Management and general expenses 43,816. Fundraising expenses 0. Total expenses 427,272. Dues & subscriptions: program service expenses 236,803. Management and general expenses 28,941. Fundraising expenses 0. Total expenses 265,744. Corporate: program service expenses 16,895. Management and general expenses 114,486. Fundraising expenses 0. Total expenses 131,381. Engineering fees: program service expenses 107,525. Management and general expenses 8,490. Fundraising expenses 0. Total expenses 116,015. Telephone: program service expenses 34,594. Management and general expenses 36,003. Fundraising expenses 0. Total expenses 70,597. Training: program service expenses 47,499. Management and general expenses 16,463. Fundraising expenses 0. Total expenses 63,962. Bad debt: program service expenses 59,832. Management and general expenses 0. Fundraising expenses 0. Total expenses 59,832. Printing services: program service expenses 0. Management and general expenses 23,979. Fundraising expenses 0. Total expenses 23,979. Late fees: program service expenses 0. Management and general expenses -6,585. Fundraising expenses 0. Total expenses -6,585. Liquidated membership reserve: program service expenses -10,000. Management and general expenses 0. Fundraising expenses 0. Total expenses -10,000. Taxes: program service expenses -15,422. Management and general expenses 688. Fundraising expenses 0. Total expenses -14,734.”

“The audit committee consists of three board members. Its main responsibility is to evaluate potential audit firms and to make recommendation to the board. Once the audit is finalized, the audit is presented for approval to the board of directors.”