Chetco Activity Center Inc.

“Membership is by personal choice and paying a small membership fee”

“Voting members can elect by secret ballot up to 9 members of the Board of Directors. This is usually done at the annual meeting. Voting members can also remove directors.”

“Decisions made by the Board of Directors are subject to approval by the membership if they involve any alterations which remove or reduce the rights or powers of voting members.”

“The return is reviewed internally by an independent member. The preparer and reviewer then discuss the completed return with the Finance Committee and Board of Directors President. It is then presented and explained by the Treasurer to the entire Board of Directors.”

“All new board members sign a Conflict of Interest Policy Agreement when they take office. The internal audit and risk committee monitors policy compliance. Their report to the monthly board of directors meetings is discussed if any potential conflicts are disclosed. Before any vote the President asks if there might be a conflict of interest. If a potential conflict exists, the conflicted board member excuses himself or herself from the vote.”

“Duties performed by non-exempt paid staff are completely distinct from the duties of that person' board service. Compensation of paid duties by an employee who is also a board member is at minimum wage rate. The process was last used in January of 2018 to determine wages for the President of the Board also employed as part time janitor. The janitor employment ended in February of 2018.”

“All pertinent information is available at any time by request to any officer of the Board of Directors. The completed Form 990 is also available on the Oregon Department of Justice website under the Charitable Activities Section.”

“From 2012 through 2017, certain entries were made directly to Retained Earnings which should have been posted to the Profit and Loss Statement. The net result to income was posted in 2017 as debits to other income/expense of $132,948 depreciation expense, other expense $2487, broker fees $7245, and credits to investment dividends/interest of $37,740 and unrealized gain/loss of $349,132, for a net increase in income of $215,191.81. The balance sheet is unchanged because the income posted to Unrestricted Net Assets instead of Retained Earnings, but both lines remain in total equity as reported.”