Fundamental Needs Inc.

“| Employee:, Relationship:, Employee:| Justice Ramos, Family Relationship, Jennie Ramos| Justice Ramos, Family Relationship, Joe Ramos| Jennie Ramos, Family Relationship, Joe Ramos|”

“The organization does not have any committees with independent authority to act on behalf of the governing body. All major decisions are made by the full board of directors. The organization documents its board meetings through contemporaneous written minutes which are reviewed and maintained for transparency and accountability.”

“The Executive Director and board chairwoman review the draft Form 990 for accuracy and completeness. The draft is then circulated to all voting board members for review before submission. Feedback is collected and any necessary corrections are made prior to filing.”

“The organization maintains a written Conflict of Interest Policy requiring all officers directors employees and contractors to disclose actual or potential conflicts. Disclosures are reviewed by the board and documented in a Conflict Register. Appropriate measures-such as recusal from decisions reassignment of duties or approval with safeguards-are implemented based on severity and risk. The policy is reviewed periodically to ensure alignment with best practices.”

“The organization makes its Form 990 and relevant governance documents available to the public via its public profile on GuideStar https: www.guidestar.org profile 85-3603760 and provides additional documentation upon request.”

“| Employee Name:, Description:| Justice Ramos, Justice Ramos Executive Director was compensated in 2024 as an independent contractor and received 1099 payments for services rendered to the organization. Based on a review of IRS worker classification guidelines the organization determined this position should have been classified as a W-2 employee. However all compensation for 2024 is reported under Fees for services non-employees in Part IX as that reflects how payments were made during the tax year. No W-2 wages were issued in 2024. The organization has taken corrective action and transitioned the Executive Director to W-2 employee status in 2025.| Jennie Ramos, Jennie Ramos served as Board Chairwoman in 2024 and also provided project management services as an independent contractor. All compensation was paid via 1099 and is reported under Fees for services non-employees in Part IX Line 11g. No W-2 wages were issued and she does not meet the IRS definition of a Key Employee. The organization has a formal Conflict of Interest Policy in place and this dual role was disclosed and reviewed in accordance with that policy to ensure transparency and proper oversight.| Kashon Harrison, Kashon Harrison served as a board member in 2024 and also provided project management services as an independent contractor for the organizations New Mexico-based programs. All compensation for these services was paid via 1099 and is reported in Part IX Line 11g. The organization reviewed IRS worker classification guidelines and determined that his role was appropriately structured as an independent contractor. A formal Conflict of Interest Policy is in place and this dual role was disclosed and reviewed to ensure transparency and compliance with nonprofit governance best practices.|”

“| Explanation:| In 2024 the Executive Director Justice Ramos was paid as a 1099 contractor. Based on a review of IRS classification guidelines this individual should have been classified as a W-2 employee. The organization is taking corrective action beginning in 2025 to properly classify this role and issue payroll through standard employment channels. The compensation reported in Part IX is shown under Fees for services non-employees to reflect how payments were actually made during the 2024 tax year. The organization had no W-2 employees in 2024. All individuals performing services for the organization were classified as independent contractors and compensated accordingly. This included the Executive Director who will transition to W-2 employee status in 2025”

“In 2024 Fundamental Needs piloted its Social Entrepreneurship Program providing students with hands-on experience in business fundamentals problem-solving and real-world applications. A key outcome was the student-led conceptualization of the Cortez Makerspace a project designed to provide technical training workforce development and business support for the community. While full implementation of the makerspace is pending funding Fundamental Needs has established partnerships with Fort Lewis College Pueblo Community College and local businesses to lay the groundwork for future workforce development programs. In the interim limited technical training and entrepreneurship workshops have been introduced ensuring progress toward the long-term vision.”

“The organization did not file Form 990-T because it had no unrelated business income during the tax year. All revenue-generating activities were substantially related to the organizations exempt purpose.”

“| Description:, Amount:| Student apprenticeship stipend - Tristan Begay, $2760| Student apprenticeship stipend - Lucerro Bennally, $900| Student apprenticeship stipend - Kanin Curtis, $1590| Student Supervisor - Madelena James, $4804| Student apprenticeship stipend - Ryer James, $2635| Student apprenticeship stipend - Maris Johnjay, $2220| Student Supervisor - Nathaniel Spencer, $1380| Student Stipend - Makaio Tsosie, $2740| Student Supervisor - AmoryWhite, $4980| Entrepreneruship TA - Timothy, $2400| Entrepreneuship Teacher, $3200| Misc contractors 2, $1030| Mentor, $1000| Student Supervisor - Alterina, $740| Student Supervisor - Alberina, $740| Student apprenticeship stipend - Mckenzie, $450| Student apprenticeship stipend - Simone, $751| Student Supervisor - Lisa Curley, $781| Student Apprenticeship Stipend - Jason, $425| Student Apprenticeship Stipend - Devon, $410| Student Apprenticeship Stipend - Damien, $775| Student Apprenticeship Stipend - Dathan, $665| Student Apprenticeship Stipend - Brayden, $545| Student Apprenticeship Stipend - Kayden, $535| Student Apprenticeship Stipend - Kayla, $585| Entrepreneurship Stipend 8 students, $1247|”

“| Description:, Explanation:, Amount:| Adjustment to prior year fixed asset and depreciation balances, The organization revised its internal accounting records to reflect a corrected equipment cost and depreciation balance. In 2023 equipment was reported at $68,000 with $6,800 in accumulated depreciation. Upon reconciliation in 2024 the actual equipment cost was determined to be $69,400 with $7,868 in accumulated depreciation. The $332 difference has been recorded as an accounting adjustment to align beginning net assets with updated internal records., $332|”

“| Explanation:| In 2022 Fundamental Needs Inc. filed a Form 990-EZ that inadvertently excluded certain capital equipment and a related vehicle loan from the organizations balance sheet Part II. Specifically the following items were omitted: A $47,000 auto loan used to finance the purchase of a truck for field operations. Two additional capital assets: a $5,000 water hauling trailer and a $2,400 equipment trailer. These assets totaling $54,400 were properly recorded in the organizations internal accounting but not reflected in the originally filed 990-EZ. As a result the net assets reported in 2022 were overstated by approximately $7,400. This error was fully corrected in the 2023 Form 990 where all long-term assets and liabilities were accurately recorded and depreciation was tracked internally. The organization uses the cash basis of accounting and no depreciation expense was reported on Part IX consistent with this method. No revenue or expense figures from 2022 were affected by the omission. Fundamental Needs has since implemented stronger internal controls including: Development of an internal asset register and capitalization policy. Consistent board review of financial reports and Form 990 prior to submission. Strengthened documentation procedures including formal governance policies and board meeting minutes. A plan to engage a financial advisor in 2025 to support continued improvements and prepare for a potential audit if needed. This Schedule O note is intended to document the discrepancy transparently and confirm that the issue has been resolved. At this time the organization does not plan to amend the 2022 filing as the correction has been reflected accurately in subsequent financials.”