Marc Community Resources Inc.

“Enforcing agency policy on conflicts of interest is the responsibility of Marc Community Resources audit committee. This committee dedicates one meeting per year to 1 Ensure all conflict of interest statements have been received, 2 Ensure conflicts are fully understood and implications discussed and disposition agreed upon, 3 Ensure that board members with conflicts, if any, follow policy with respect to voting on matters that they may have a conflict with, and 4 recommend enhancements to existing forms, policies, and training related to conflicts of interest.”

“Each year the Board approves performance goals for the CEO based primarily on the Board approved startegic plan. At the end of the yrear, the board chair completes a performance evaluation. In addition to the performance evaluation, the board is provided data from the most recent Guidestar Compensation Study and/or credible surverys/studies. The board is provided a five year historical wage analysis that breaks down all the components of comprehensive compensation. Periodically, the organization contracts with an independent organization to conduct a formal compensation study to provide the board with benchmark data and provide independent assurances that compensation is reasonable based on IRS guidelines. Finally, the board is provided the breakdown of comprehensive compensation to all officers and key employees that report directly to the CEO. The board convenes to approve compensation that is appropriately comparable per IRS guidelines and consistent with the performance evaluations.”

“The Organization will provide in a timely manner, copies of all policies, procedures, annual financial audits and 990s when requested in writing or in person.”

“Program Service Expenses 7,273,329, Grants and allocations 0, Revenue 7,794,909 Day Programs Day programs help keep the family unit intact by allowing parents to work while son or daughter participate in meaningful day activities that focus on living skills, socialization and community integration. 100 of individuals served were satisfied with services and 95 of service participants expressed that services met or exceeded their expectations. The day programs are integrated into the community 65 of the time.”

“Program Service Expenses 1,767,357, Grants and allocations 0, Revenue 1,323,349 Outpatient clinic. Marc Community Resources served over 2,000individuals in its outpatient treatment clinics and scored over 95 on all measures of consumer, family and funding source satisfaction surveys. 100 of the individuals who were referred to Marc Community Resources Outpatient Clinic received services within seven days of the referral.”

“Program Service Expenses 177,674, Grants and allocations 0, Revenue 167,242 Other Housing. Marc Community Resources received homes from the City of Mesa associated with the Federal Neighborhood Stabilization Project. These homes are rented out to qualifying low income tenants.”

“Program Service Expenses 0, Grants and allocations 0, Revenue 679,997 Revenue from cost reimbursements and technical agreements with subsidiaries that are under the common control of Marc Community Resources. The related reimbursed expenses are reported as Administrative expenses on the statement of functional expenses, in agreement with the audited financial statements. Additionally, Marc Community Resources utilizes their infrastructure in-place to offer minor maintenance projects to similary situated 501 c3 organizations.”

“Copies of the 990 and all related schedules are sent to the Board of Directors for review after being reviewed and approved by the audit committee. Any questions the Board might have are directed back to the Chief Financial Officer. The 990 is then discussed at a full board meeting and approved by the Board of Directors.”

“89,484 Unrealized gain on the swap to fix variable interest debt.”

“Other Change in Net Assets 446,047 Equity Method income loss from investment in Subsidiaries 447,313, 1,192 difference between bad debt accrued and write offs, 74 difference between final audit and books.”

“The board of directors, as a whole, have served as the audit committee and have overseen the financial statement audit and selected the independent auditor.”