Hope Services

“The form 990 is prepared by outside accountants. It is reviewed by management and presented to the audit committee. Once approved by the audit committee, the form 990 is provided to the rest of the board for review and comment before it is electronically filed.”

“Covered in new employee orientation sessions; regular awareness reminders are sent out to staff via managers and training sessions on the policy and the "whistleblower's" policy. Human resources department annually reviews and requests update in status.”

“Article viii, section 2 (a) of the by-laws states that the executive committee of the board reviews and approves the compensation of the ceo and cfo if other than across-the-board increase to all employees.”

“Website: www.hopeservices.org provides annual reports, audited financial statements, management letter, and form 990's. Policies or documents not contained therein are available upon request.”

“Rounding 1. Receipt of net asset from hope rehabilitation services foundation 1,488,325.”

“Hope's process has not changed from the prior year.”

“Code section 409a - notice to irs of correction under irs notice 2010-6, sectin viii (correction of impermissible inclusions of service providers discretion regarding payment date) hope services (the "company") maintains the non-qualified deferred compensation plan (the "plan"), which provides for a deferral of income under section 409a of the internal revenue code of 1986, as amended (the "code"). As required under section xii.a of notice 2010-6 (the "notice"), the following information is being provided in this statement which is being filed with the company's tax return for 2014. Please note, the term "code" as used in this statement means the internal revenue code of 1986, as amended. 1. The benefit payable under the plan subject to impermissible service provider discretion is based on the full value of as of february 28,2014 should that discretion be exercised as of such date. Participant name ssn benefit amount john christensen xxx-xx-xxxx $149,639.98 ray abe xxx-xx-xxxx $223,837.15 susan bell xxx-xx-xxxx $46,097.69 2. The nonqualified deferred compensation arrangement with respect to which corrections are being made under the notice is the payment provision under the plan for the named participants. 3. The document failures affecting the plan that were corrected as provided in the notice are all eligible for correction under the terms of the notice, and specifically under section vii. In particular, the plan was amended to remove impermissible service provider discretion regarding payment date. The company has taken all actions required and has otherwise met all requirements for correction of the applicable provisions for the plan. Pursuant to notice 2010-6, there is no current required income inclusion under code section 409a as a condition for relief for these corrections. 4. The amount involved in the document failure described in sections vii of the notice is set out in item (1), above, and is based on the account balance subject to such discretion for each participant determined as if the participant had exercised discretion as of such date. By reason of the correction available under section vii of the notice, no amount is currently required to be reported as includible in any participant's income under code section 409a.”