Citizens Utility Board of Oregon

“The Organization has one class of members.”

“A copy of the Form 990 is provided to the members of the governing board. The executive director reviews the Form 990 in detail, and resolves any questions raised through his review or by the members of the governing board.”

“Board members are screened against potential conflicts of interest prior to their nomination to the board. The by-laws indicate conflicts of interest that would be applicable to the organization and an ongoing obligation for board members.”

“The salary of the executive director is approved by the Board as part of the resolution to approve the annual budget. The Board determines that the executive director's salary is reasonable by periodically researching compensation for comparable positions in other organizations. The Board has determined that the Organization's compensation of the executive director is below market.”

“The executive director periodically researches comparability data and recommends compensation for the administrator (top financial official) as part of the annual budget recommendation, which is subject to the approval of the Board.”

“Governing documents and audited financial statements are available to the public upon request.”

“Rent expense under operating leases with fixed rent escalation clauses should be recognized evenly, on a straight-line basis over the lease term. Historically, the Organization has accounted for all their leases on an as-incurred basis. Based on a review of the operating leases, it was determined the office facility lease had a fixed escalation clause and rent expense was not recognized appropriately. The adjustment reflected in the correction of an error recognized such rent expense on a straight-line basis in accordance with accounting principles generally accepted in the United States of America. We made the following corrections:Deferred rent liability of $329 and an increase in rent expense of $329 for the year ended December 31, 2014.The financial statements for 2014 were restated to reflect the above. The total effect of the above error is a $329 reduction to unrestricted net assets for the year ended December 31, 2014.The effect of the correction of these errors for the change in net assets for the above mentioned financial statements is as follows for 2014:Year ended December 31, 2014Change in net assets: Previously reported$(40,841) Restated $(41,170)The effect of correction of these errors on the financial statement is as follows:Year ended December 31, 2014Unrestricted net assets: Previously reported$265,236 Restated $264,907 Total net assets: Previously reported $265,236 Restated $264,907 Deferred rent: Previously reported$0 Restated $329 Occupancy expense: Previously reported$25,601 Restated $25,930”