Evergreen Goodwill of Northwest Washington

“All of these business relationships were carried out in the normal course of business and at commercially reasonable rates. Board member broderick smith has a business relationship with board member john hayduk, president of jtm construction. Mr. Smith is vice president of urban visions and has hired jtm construction to construct a building. In addition, urban visions owns property leased by bank of america, seattle goodwill's bank. The mother of catherine mcconnell, vp of advancement, receives rental income from bank of america, seattle goodwill's bank. Mrs. Mcconnell is not involved in seattle goodwill's banking decisions.”

“Seattle goodwill engages an outside accounting firm to prepare the form 990 from input and data provided by the chief financial officer and accounting director. A draft form is reviewed by the chief financial officer and accounting director for accuracy before a final form 990 is produced. The final form 990 is then provided to all board members approximately one week before the form 990 is filed with the irs, as per irs guidance. The board members are not required to approve the form 990.”

“Conflict of interest disclosure forms are distributed annually and communication is made about the importance of disclosure of any real or potential conflicts of interest so that they can be appropriately managed. Each new board member is also provided this same form and information. Key employees also receive an annual conflict of interest disclosure form and have been trained on our ethics policies. Clear procedures are established for the anonymous reporting of ethics violations through a 1-800 reporting service or directly to the compliance officer or chair of the board finance and audit committee. Each year, the compliance officer makes a report to the finance and audit committee of the board and to the full board of directors on compliance policy matters, including a summary of conflict of interest form disclosures.”

“Ceo compensation is established by the compensation committee of the board made up of independent directors, using competitive salary surveys and considering organization and individual performance. The compensation committee reports its recommendation to the board annually before changes are made to the ceo compensation. The vp positions are approved by the board, but vp compensation is established by the ceo, also considering individual performance and competitive salary surveys. The compensation committee receives a report of the vp compensation at the same time it considers ceo compensation each year.”

“Our form 990 is published on our website. We do not publish our governing documents, conflict of interest policy or financials to the general public. These are provided to grant funders, lessors, and lenders upon request. Summary financial information is provided, along with mission outcomes, to the public in our annual report. The annual report is provided to those who have requested to be on our distribution list and published on our website.”

“Realized and unrealized gains and losses include amortization of purchase premiums or discounts on certificates of deposit and corporate bonds.”

“Seattle goodwill holds certificates of deposit (cds) and index funds with readily determinable fair values as of june 25, 2016 and june 27, 2015. Cds have remaining terms ranging from less than 1 month to 18 months and are classified accordingly. The index funds do not have a maturity date, but are held with the objective of long-term capital appreciation. Index funds are classified as long-term on the statements of financial position. The cds and index funds are valued at fair value in accordance with financial accounting standards board accounting standards codification (asc) 958-320-not for profit entities, debt and equity securities. Unrealized gains and losses on the statement of activities include amortization of purchase premiums or discounts on cds. Investment income and gains on restricted investments whose restrictions are met in the same reporting period are reported as unrestricted revenue and support. Seattle goodwill maintains significant liquidity (reserves) and will likely continue to do so in the future. In considering the appropriate level of reserves, seattle goodwill evaluates the following: - future replacement of facilities on its dearborn campus in seattle - opening of new job training and education centers and new stores - operating reserves of up to six months expenses - liquidity requirements under its bond financing - potential debt market conditions in 2017 when bank of america evaluates whether it will call for full principal repayment under seattle goodwill's bond financing on january 1, 2018.”

“No change to process from prior year.”

“All of the business transactions and relationships reported on schedule l, parts iv and v, were carried out in the normal course of business and at commercially reasonable rates.”