Luis Palau Association

“The organization has an Executive Committee that is comprised of the Founder, President, board Chairman, board Vice-Chairman and board Secretary. This committee shall study and recommend policies relating to all programs and services of LPA. It shall have the authority to act for the board on all matters except for dissolving the corporation, hiring or firing the Chief Executive, entering into major contracts outside the scope of the board-approved budget, making significant changes to the board-approved budget, adopting or eliminating major programs, buying or selling property, amending the bylaws, changing any policies that the board determines may be changed only by the board, so long as the Executive Committee determines that it would be imprudent to wait for the next board meeting to take such as action. With respect to any action taken on behalf of the board, (1) the Executive Committee is required to report the action to the board within 10 days, and (2) the board must approve the action at the next board meeting.”

“Luis Palau has a family relationship with Kevin Palau, Keith Palau, and Andrew Palau.”

“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.”

“The governing documents, conflict of interest policy, and financial statements 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 minister's retirement plan deferrals in Part VII, column F and Schedule J, Part II, column C.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 12/31/2018. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $5,447,320 Line 29 - Net assets with donor restrictions 578,129 --------- Total net assets $6,025,449”

“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.”