Foundation for the Monterey County Free Libraries

“There are no committees with authority to act on behalf of the governing board.”

“Board reviews and approves form 990 before filing.”

“An interested person is any director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest, as defined below, is an interested person. Financial interest: a person has a financial interest if the person has, directly or indirectly, through business, investment, or family: a. An ownership or investment interest in any entity with which fmcfl has a transaction or arrangement, b. A compensation arrangement with fmcfl or with any entity or individual with which fmcfl has a transaction or arrangement, or c. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which fmcfl is negotiating a transaction or arrangement. Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial. A financial interest is not necessarily a conflict of interest. A person who has a financial interest may have a conflict of interest only if the board decides that a conflict of interest exists, in accordance with this policy. Duty to disclose: in connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the board. Recusal of self: any director may recuse himself or herself at any time from involvement in any decision or discussion in which the director believes he or she has or may have a conflict of interest, without going through the process for determining whether a conflict of interest exists. Determining whether a conflict of interest exists: after disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the board meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board members shall decide if a conflict of interest exists. Procedures for addressing the conflict of interest: a. An interested person may make a presentation at the board meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. B. The chairperson of the board shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. C. After exercising due diligence, the board shall determine whether fmcfl can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. D. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the board shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in fmcfl's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, it shall make its decision as to whether to enter into the transaction or arrangement. If the board has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the board determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. A voting member of the board who receives compensation, directly or indirectly, from fmcfl for services is precluded from voting on matters pertaining to that member's compensation. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectl”

“The board must approve all increases in compensation of the executive director.”

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

“The process for oversight and selection of an independent accountant has not changed from the prior year.”

“The initial 990 and ca 199 returns were filed prior to the completion of the client's audit. Subsequent to receiving the final audited financial statements, a comprehensive comparison with the financial data utilized in the original tax filings was carried out. This comparison identified a significant variance, necessitating the correction of the originally submitted returns. The amended returns have been prepared to accurately reflect the revised financial figures as per the audited statements, ensuring financial accuracy and compliance. The difference between the initial 990/199 and the financial statements per the final audit are as follows: investments held at the community foundation per the final audit balance sheet has a balance of 198,236 as opposed to 218,950 in the 990/199 originally submitted. Total assets per the final audit balance sheet has a balance of 714,387 as opposed to 770,101 in the 990/199 originally submitted. Net assets without donor restrictions per the final audit balance sheet has a balance of 446,470 as opposed to 260,780 in the 990/199 originally submitted. Net assets with donor restrictions per the final audit balance sheet has a balance of 233,287 as opposed to 448,701 in the 990/199 originally submitted. Total liabilities and net assets per the final audit balance sheet has a balance of 714,387 as opposed to 770,101 in the 990/199 originally submitted. Cash contributions not including fundraising per the final audit profit and loss report has a balance of 213,586 as opposed to 248,436 in the 990/199 originally submitted. Investment income per the final audit profit and loss report has a balance of 35,848 as opposed to 27,826 in the 990/199 originally submitted. Investment management fees per the final audit profit and loss report has a balance of 7,110 as opposed to 0 in the 990/199 originally submitted. Office expenses per the final audit profit & loss report has a balance of 1,297 as opposed to 4,237 in the 990/199 originally submitted. Dues and subscriptions expense per the final audit profit and loss report has a balance of 15,173 as opposed to 9,938 in the 990/199 originally submitted. Miscellaneous expense per the final audit profit and loss report has a balance of 1,559 as opposed to 10 in the 990/199 originally submitted. Net unrealized gains (losses on investments per the final audit profit and loss has a balance of -8,819 as opposed to 29,081 in the 990/199 originally submitted.”