Mercy Ships Foundation

“Directors shall be elected by majority vote of the board of directors of Mercy Ships, a nonprofit Corporation organized under the laws of the State of Texas.”

“The organization's Form 990 was prepared by an independent CPA firm and reviewed by the Chief Financial Officer in detail. The 990 was then provided electronically to all members of the board for their review and comment. Board members were then given at least one week to review the Form 990 and send comments to the Chief Financial Officer. After all comments and questions were addressed, the 990 was filed with the IRS.”

“Board members and senior staff including officers are required to complete a Conflicts of Interest Questionnaire on an annual basis. Disclosures are required to be updated with potential conflicts as they become known throughout the year. If a conflict is identified by management or by the board, the person with a conflict recuses themselves from the decision-making process, and the board votes on whether or not to engage in the transaction, based on whether it is in the best interests of Mercy Ships Foundation.”

“The Foundation does not compensate any officers, directors, or management. In accordance with the instructions, these questions have been answered no. If at some point compensation plans are considered, the organization will adopt the compensation process used by Mercy Ships.”

“Mercy Ships Foundation makes its governing documents, conflict of interest policy, and financial statements available for public inspection at the International Support Center during regular business hours. Documents are also made available upon written request.”

“The board of directors may elect three or more persons from among its members to serve as an executive committee. The board shall designate the chairman of this committee. The executive committee shall have and exercise the authority of the board of directors between meetings of the board of directors, as prescribed by the board, to supervise the affairs of the Corporation, regulate its internal economy, approve expenditures and commitments, and act for and carry out the established policies of the Corporation. All actions by the executive committee shall be reported to the board of directors at the next meeting of the board succeeding such action.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 12/31/2018. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $ 34,326,512 Line 29 - Net assets with donor restrictions $ 43,322,600 Total net assets $ 77,649,112”