Luis Palau Association

“The organization has an Executive Committee that is comprised of the Chairman, the Vice-Chairman, the Recording Secretary and the CEO. According to the governing documents the Executive Committee has the power of the Board in the management of the Corporation during period of adjournment of the Board, subject to limitations. Any actions of the Executive Committee requiring Board approval must be submitted to the Board of Directors for ratification at the next meeting. Currently the Executive Committee is not acting on behalf of the Board of Directors.”

“Luis Palau and Kevin Palau have a family relationship.”

“The Form 990 is prepared by an independent CPA firm. It is also reviewed by LPA management in detail and then a copy is provided to the board before it is filed with the Internal Revenue Service.”

“All transactions are monitored by top management and reviewed for conflicts of interest. All contracts entered into are reviewed and approved by an officer of the organization. Should any conflicts of interest be identified, the board member or officer with the interest would be asked to refrain from participation in any deliberation or decision with regard to matters affected by the relationship.”

“Salaries for officers are set by the independent compensation committee of the board of directors. On an annual basis, the compensation committee reviews comparability data, determines the salary increases for officers and communicates the decision to ministry management. The process and decisions are documented in the board minutes.”

“These documents are available upon request.”

“Compensation reported in Part VII, column D and Schedule J, Part II, column B is the amount reported on the individual's W-2, box 1 or 5 (whichever amount is greater) per the IRS instructions. In the case of minister's compensation when box 5 of the W-2 is not applicable, box 1 compensation is used. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of Form W-2. For reporting purposes we have included the employee's retirement plan deferrals in Part VII, column F and Schedule J, Part II, column C.”

“Production Fees: Program service expenses 2,093,426. Management and general expenses 41,803. Fundraising expenses 193,341. Total expenses 2,328,570. Honorariums: Program service expenses 36,823. Management and general expenses 1,152. Fundraising expenses 4,833. Total expenses 42,808. Payroll fees and HR Consulting: Program service expenses 35,894. Management and general expenses 1,122. Fundraising expenses 4,711. Total expenses 41,727. Other services: Program service expenses 62,065. Management and general expenses 1,062. Fundraising expenses 5,277. Total expenses 68,404.”

“Change in the value of annuities -938.”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant. This process has not changed since the prior year.”