Telluride Mountain School Inc.

“The corporation is formed without stockholders or members. However, for purposes of the Colorado Gaming License (required for the two raffles typically held each year), Members must be designated by the Board. The list nominated to membership includes the immediate families of all current and former students, plus their grandparents, plus all current and former staff members and their families, plus current and former trustees and advisory trustees and their families.”

“This return was provided to the Finance Committee and to the full Board, both of which approved it prior to filing.”

“The conflict of interest policy is reviewed at the September meetings and Trustees are reminded of the implications of each requirement and required disclosure actions should a conflict arise.”

“A committee comprised of the Board President and Treasurer, plus at least one other experienced board member sets the compensation for the head of school on an annual basis. Reference is made primarily to compensation reports for Colorado as compiled by the National Association of Independent Schools.”

“The governing documents and policies are made available upon request. A summary financial statement is included annually in a newsletter that is published each full and the full audit report is available upon request.”

“After filing the return, the Organization realized that a portion of the contribution from one of the contributors on Schedule O was actually in the form of stock vs. cash. This amendment modifies the following: - Schedule B to update that donors information, including the stock as a non-cash item in addition to cash.- Schedule M - Added Schedule M per the requirements for non-cash contributions > $25,000.”

“This tax return departs from the audit report for the organization due to the reclassification of $60,000 for professional fundraising services that were reported in Management and General expenses on the audit but were reclasifed as Fundraising Expenses for the 990 Tax Return.”

“The final audited net assets for the prior year tax return increased by $12,601 from the prior year 990 return.”

“Form 990 Part VI, Section B, Line 14.The Organization utilizes the document retention policies recommended by the IRS and NAIS guidelines and will adopt a formal policy acknowledging this policy by the Board in the current fiscal year.”