Montalvo Association

“Montalvo uses the following process to review the annual Tax Form 990: 1. The annual Tax Form 990 is prepared by an outside accounting firm based on financial and management information Montalvo staff provides. Montalvo staff review and approve the complete Form 990. 2. The completed Form 990 is presented to the Executive Committee and the Finance Committee by the Executive Director and the Director of Finance. The Committees are given the opportunity to ask questions of the Executive Director and the Director of Finance before their final review and approval. After discussion a motion will be made to approve the submission of the Form 990. Upon passage of the motion, the approval process is complete for the Form 990, and the Form 990 is filed. 3. Once the review by the Executive and Finance Committees is complete, the Form 990 is distributed to all members of the Montalvo Board.”

“Trustees and key employees are required annually to complete a disclosure form identifying potential conflicts of interest. 1. The form titled "Disclosure Statement of Potential Conflicts of Interest" is completed and signed by any Trustee with a potential conflict as soon as this potential arises. 2. The potential conflict is disclosed and determination is made whether an actual, potential or perceived conflict of interest may exist, and if so, Montalvo's position with respect thereto. Any steps taken by Montalvo to address the conflict situation are documented in writing. 3. Violation of the Conflict of Interest Policy constitutes unacceptable conduct that may be subject to disciplinary action, up to and including dismissal of the Trustee from the Board, or termination of employment for Key Employees.”

“The process to set the compensation for key employees is as follows: 1. A range of total compensation is determined based on comparable data from other local arts organizations and comparable positions listed in the annual compensation and benefits survey for northern california by the center for nonprofit management, or similar industry survey. 2. For key employees other than the executive director, salary changes are determined by the executive director after review of job performance, changes in organizational responsibilities, and review of compensation levels at comparable local nonprofit organizations. The executive director brings salary change recommendations to the compensation committee for review, discussion and approval. 3. Salary changes for the executive director are made by the hr & compensationcommittee during the annual review process, which includes performance against annual mission objectives and financial goals. 4. The compensation committee consists of five trustees, including the chair of the hr compensation committee, the president, and members of the board with experience in human relations. 5. The hr/compensation committee approves the salary change.”

“The following governing documents are posted on the Montalvo website at www.montalvoarts.org: Audited Financial Statements, Form 990 Tax Return, Bylaws, Code of Ethics, Gift Acceptance Policy, and Whistleblower Policy. These documents are also available upon request. Form 990 is also available at Guidestar.com and CharityNavigator.com.”

“The process has not changed from prior year.”

“Other gaming revenue consists of raffles.”