ILM Academy Inc.

“The governing board chairman and school principal reviewed the form 990. All questions and updates were addressed prior to submittal to the internal revenue service.”

“Board members review the conflict-of-interest policy on an annual basis. Officers personal knowledge of board member activities are relied upon to monitor adherance to the policy. The policy requires that an actual or potential confilict-of-interest be reported in writing to the board of directors or relevant committee whenever a conflict does or may exist.”

“The principals compensation is reviewed by the independent board of directors on an annual basis. The compensation is based on the information obtained from similar positions in other private schools of comparable size and geographic location. Officers of the board of directors do not receive compensation nor do non-officer board members. There are no key employees as defined by form 990.”

“Ilm conducts a townhall meeting on an annual basis. The timing of the townhall meetings are advertising on the schools facebook page and other media as well as emailed to student families. All community members are welcomed to attend. The school is considering the expansion of the availability of its policies and financial records to the public.”

“| Explanation:| ILMS GOVERNING STRUCTURE INVOLVES BOTH THE BOARD OF TRUSTEES AND A GOVERNING BOARD. BOTH BOARDS WORK COLLABORATIVELY TO ENSURE THE EFFECTIVE MANAGEMENT AND OPERATION OF THE ACADEMY. THE BOARD OF TRUSTEE FOCUS IS ON THE LONGTERM STRATEGIC GOALS OF THE SCHOOL WHILE THE GOVERNING BOARD OVERSEES THE DAY-TO-DAY OPERATIONS AND POLICY IMPLEMENTATION. BOTH BOARDS ADHERE TO THE BYLAWS AND GOVERNANCE POLICIES OF ILM ACADEMY ENSURING COMPLIANCE WITH ALL LEGAL AND REGULATORY REQUIREMENTS.”