Local Public Sector Alliance

“Prior to filing Form 990 with the IRS, a complete draft of the return is provided to all members of the governing body for review. Board members are given an opportunity to ask questions and provide feedback. The review typically occurs during a scheduled board meeting or via electronic circulation, depending on timing and availability. The Executive Director (or equivalent officer) and/or the organizations CPA or accounting advisor is available to explain the contents of the return and respond to inquiries. Any significant issues raised during the review are addressed before the return is finalized and filed with the IRS.”

“The organization has a written Conflict of Interest Policy in place. Each board member and key officer is required to review and sign the policy annually. The policy outlines procedures for disclosing actual or potential conflicts and requires any interested person to disclose the existence of a financial or personal interest that could reasonably be perceived to influence decision-making.When a conflict is disclosed, the remaining disinterested board members determine whether a conflict exists and, if so, follow the policys procedures for addressing it. This may include requiring the interested party to recuse themselves from discussion and voting on the matter. All disclosures and actions taken are documented in the meeting minutes.”

“The compensation of the organizations top management official is reviewed and approved by the Board of Directors or a designated compensation committee. The process includes a review of comparable compensation data for similar positions at peer organizations, taking into account the size, geographic location, and scope of operations.The review process is conducted annually and is documented in meeting minutes. The top management official does not participate in discussions or vote on their own compensation. The organization follows the rebuttable presumption procedure under Treasury regulations to ensure compensation is reasonable and not excessive.”

“The organization follows a documented process for determining compensation for officers and key employees. This process includes reviewing compensation data from comparable nonprofit organizations, such as IRS Form 990 filings, salary surveys, or compensation studies, to ensure that pay is reasonable and aligned with market standards.Compensation is reviewed and approved by the Board of Directors or a designated committee composed of individuals without conflicts of interest. Decisions are made in advance of any compensation changes, and all deliberations and approvals are documented in board or committee meeting minutes. The organization adheres to best practices to comply with the rebuttable presumption of reasonableness under IRS regulations.”

“The organization makes its governing documents, including the Articles of Incorporation, Bylaws, Conflict of Interest Policy, and financial statements available to the public upon request, as well as its own website - https://decentralization.net/about-the-local-public-sector-alliance/lpsa-public-disclosures/ . Copies of the IRS Form 990, as well as other requested documents, are provided by email or mail. Additionally, the organizations most recent Form 990 is available for public inspection on the IRS website (www.irs.gov) and/or third-party sites such as GuideStar (www.guidestar.org). Requests for documents can be submitted to the organizations administrative office via email or in writing.”