Az Water Association

“THE ASSOCIATION HAS DELEGATED BOOKKEEPING, MEMBERSHIP SERVICES, AND DAILY OPERATIONAL DUTIES TO THE MUSE GROUP, A.C.C. ADDITIONALLY, THE ASSOCIATION HIRED DAVID IWANSKI FOR EXECUTIVE DIRECTOR SERVICES TO MEET THE ORGANIZATIONS STRATEGIC BUSINESS PLAN. THE COSTS FOR THESE SERVICES IN 2017 ARE REFLECTED ON FORM 990, PART IX, Line 11a.”

“The association has the following membership categories active member, life member, and student member. 1 active members are any person professionally engaged or interested in the advancement of knowledge relating to the objectives of membership as established by the association. All active members are eligible voting members of the association, entitled to the rights and privileges granted by the association, including the right to hold office and serve on committees. 2 life members are individuals who have been a member in good standing with the association for thirty years or more and who have participated in association activities. Life members have all the rights and privileges of an active member and pay no association membership dues. 3 student members can be an individual who is a college or university student who spends at least one-half time on academic course work or equivalent. Student members may not retain their student membership beyond the first anniversary date following termination of qualification as a student member. Student members have all the rights and privileges of an active member except for holding office.”

“Each member in good standing is eligible to vote on the associations officers. Elections are done on a one member one vote basis.”

“The following acts require approval from the membership body 1 amendments to the associations bylaws and 2 dissolution of the association.”

“At each board and committee meeting, if there is a discussion of selecting or engaging a vendor or service provider, all in attendance are asked to recuse themselves from this discussion if there could be a perceived conflict. Annually, the association reviews and discusses the conflict of interest policy and requests that each board member list and acknowledge any known conflicts.”

“The association does not currently have any paid officers or key employees. However, in 2018, a compensation policy is being put in place that provides for executive and staff compensation to be determined by performance, skills, competencies and developmental growth of the association. Comparative information would be used to determine appropriatness of marketplace compensation, based on the compensation of individuals in like positions , in comparable associations using forms 990, compensation studies, and other available data. The executive committee would then approve any changes to the compensation agreement based on this information.”

“The association will provide in a timely manner, copies of all governing documents including its conflict of interest policies and financial statements when requested in writing or in person.”

“The organization has had an arrangement with two other state water associations to hold a tri-state conference each year for the last several years funds were pooled, expenses and capital investments were reflected as conference expenses and distrbutions were treated as conference income . The arrangement was formalized in 2017 and the remaining pooled capital for each was treated as a new capital investment in the partnership in 2017 although the amounts related to prior periods. The balance sheet was updated in the amended return to reflect this beginning balance and the ending balance reflects the balance after 2017 allocations. As this investment is to be used solely for the activity associated with the annual tri-state conference, which is a program activity, this investment is reflected as a program related investment and the funds are deemed to be temporarily restricted as to their purpose.”

“An amended return is being prepared to reflect the program related investment reported on a k-1 from tri-state seminar llc. The adjusted portions of the return are - part i, line 10 to reflect the 2017 income from the investment part iii, line 4a to reflect the increase in program revenue part viii, line 3 to reflect the program related income from the investment part x, lines 13 and 28 to reflect the capital investment in the program related partnership sch a, part iii, line 2 to reflect the program related income from the investment for 2016 and 2017 and sch r, part iii, line 1 to report the program related partnership.”