Rolling Hills Corporation

“Rolling hills company is organized as a stock corporation that has both stock and non-stock memberships. The stock members are entitled to full use of the golf course and other club facilities, an equity interest in the organization, one vote on matters of the organization's business, and may hold office as a member of the board of directors. The non-stock members have full use of the golf course and club facilities. Non-stock members do not have an equity interest in the organization, have no vote on matters of the organization's business, and may not hold office. There are also social memberships that have the rights and privileges of the non-stock members with the exception of the use of the golf course.”

“Election of members and their rights - stock members elect the board of directors annually. Each stock member has one vote.”

“Organization's process to reveiw form 990. The 990 is reviewed by the controller, general manager, treasurer, and board president prior to filing with the irs.”

“Enforcement of conflicts policy - all board members sign a conflict of interest form each year.”

“Compensation process for top official - the general manager's compensation is reviewed annually by the 3 members of the executive board and a written formula is used to calculate any annual bonus.”

“Compensation process for officers - the golf course superintendent's compensation is reviewed by the golf committee and the accounting controller's compensation is reviewed by the general manager.”

“Governing documents disclosure explanation - no documents are available to the public except those maintained by the texas secretary of state.”

“All other accomplishments - clubhouse & membership - promote activities to encourage membership and golf activities.”

“Seed/fertilizer 43,256 0 0 taxes & permits 39,976 0 0 credit card fees 39,423 0 0 tabc permit 21,854 0 0 dues & subscriptions 21,496 0 0 administrative expenses 0 21,461 0 chemicals-golf 20,688 0 0 supplies 15,539 0 0 ubi taxes 14,553 0 0 gas diesel 9,819 0 0 bad debt 7,874 0 0 postage 6,651 0 0 bank charges 4,286 0 0 tournament expenses 367 0 0 total 245,782 21,461 0”

“Book to tax difference is irc 613 depletion taken on the form 990t by the client.”

“Book / tax depreciation difference 41 book to tax depletion 14,233 new member contributions 49,250 book loss on asset sale -33 total 63,491”