Military Community Youth Ministries

“The executive committee has the power to act on behalf of the board between meetings as necessary. The committee distributes to all board members a report of its actions and activities at the next meeting of the board. The committee consists of the chair, vice chair, ceo, and chairs of standing committees.”

“The form 990 was prepared by an independent cpa firm and reviewed by the ceo and the treasurer in detail. The reviewed form 990 is then provided to the board of directors prior to filing with the irs.”

“The treasurer reviews the conflict of interest policy annually for compliance with industry best practices and then management discusses. Disclosures are signed annually at the september board meeting by officers and directors. The executive committee monitors conflicts of interest throughout the year. When a conflict is identified, the board member recuses themselves from any deliberation or decision with regard to the matter affected by the relationship, or from the board if necessary.”

“15a: each year, the mcym board of directors reviews the ceo's compensation package including benefits. The final decision is subject to a mcym board vote. Young life consults with the members of the mcym executive committee regarding compensation and shares the responsibility with mcym to determine appropriate compensation. The ceo is ultimately an employee of young life and final compensation is subject to their approval. A real time compensation service is used to run comparability data on individuals holding similar positions within the region. The data is used as the basis for determining the amount of compensation for the year. A representative of the mcym board meets with and discusses compensation arrangements with an hr executive and representative of young life who also gathers comparability data for the young life compensation arrangements. Decisions and deliberations are documented in the committee and/or board minutes. 15b: the treasurer is also a seconded employee and is subject to the compensation policies of young life. Mcym pays reimbursements to young life for the services of the treasurer. Young life uses regional compensation data to help establish an appropriate pay scale. The independent members of the young life board are responsible for the final approval of officer level salaries. Deliberations and decisions are documented in the young life board minutes.”

“The governing documents, conflict of interest policy, and financial statements are available upon request.”

“Compensation reported in part vii, column d and schedule j, part ii, column b is the amount reported on the individual's w-2, box 1 or 5, box 1 for those employees who are qualified ministers. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of form w-2. For reporting purposes, we have included the minister's retirement plan deferrals in part vii, column f and schedule j, part ii, column c.”

“Mcym does not file any w-2s as employees are hired through young life, an unrelated organization. Mcym reimburses young life for the employees' compensation related to the hours worked for mcym and the reimbursements are reported on form 990, part vii, section a and form 990, part ix, lines 5 - 10. The number reported on this line represents the number of employees who work 100% for mcym.”

“Gain on exchange rate 9,171.”

“The irs form 990 instructions specifically state that donated services and facilities should be omitted from form 990 reporting even though these amounts are required to be reported by generally accepted accounting principles. Thus, the value of these contributions are properly included in the audited financial statements of military community youth ministries in revenues and program expenses. Military community youth ministries would prefer to include the value of donated services and facilities in the organization's form 990. We believe this shows the reader a more complete and accurate picture of the financial activities of the organization for the year. Nevertheless, because of the irs' specific requirements, contributions of donated services and facilities have not been reported as contribution revenue on form 990, part viii, line 1f. Correspondingly, the associated program expenses have not been reported in form 990, part ix, column b. (you will find the reconciliation of the audited financial statements to form 990 on schedule d, parts xi and xii, where these differences are enumerated.) if the amounts were included on form 990, program service expenses (form 990, part ix, column b) would increase by $2,840,372. In addition, revenues (part viii, line 1f) would increase by the $2,840,372. More important to readers of form 990, the functional expense percentages (as reported in the audited financial statements) should be as follows: program service expenses - 89% management and general expenses - 10% fundraising - 1%”