Medical Expense Reimbursement Plan of The

PART VI, LINE 11B:

“the board of trustees reviewed the tax return before filing. part vi, line 12c: the board of trustees review the trust's conflict of interest policy and are to notify the administrative office if any conflict arise. part vi, line 19: the trust document, conflict of interest policy and financial statements are maintained by the board of trustees and are available upon request. part vii, lines 1a(1) through 1a(5), columns e and f: the trust does not have information regarding the compensation received by the trustees from the city of riverside. the members of the board of trustees are paid city employees. they are employed by the city of riverside and receive all their compensation solely connected to their duties as city police officers. in their role as trustees, they are fiduciaries and subject to legal prohibitions against self-dealing. they serve on a volunteer basis as trust fiduciaries; they do not receive any additional compensation from the city of riverside or any other party for their services on the board of trustees. further, the trust has a conflict of interest policy, which requires trustees to disclose any financial arrangements that would create a conflict of interest. section 7(a) of the conflict of interest policy of the trust, effective july 1, 2008 and as amended thereafter, states the following. a trustee shall have a duty to disclose to the board any conflict of interest as soon as it is discovered by the trustee. in particular, the trustee shall disclose a conflict of interest prior to any board or committee decision on the matter related to the conflict of interest. the policy also requires disclosure in written form of "any entities in which you, or a relative, presently have a direct or indirect payment arrangement that may present a conflict of interest with the trust." note also that the disclosure of compensation requested on the form 990 would cause additional administrative burden by requiring the trust to collect this information annually, since the trustees' compensation as city employees varies from year to year, and from trustee to trustee. finally, and very importantly, the form 990 is public information. it is likely that requiring the disclosure of compensation will dissuade city employees from volunteering to serve on the board. the trust would then have to spend trust assets to hire a professional trustee. please contact the trust office if you would like further information, and/or would like to discuss this further. the trustees want to be cooperative with the irs, but requesting this compensation information is problematic for the reasons stated above.”