English Language Institute in China

“The executive committee is composed of the chairman, vice chair, and one other board member. The executive committee has authorization to act on behalf of the board in between meetings.”

“The form 990 is prepared by an independent cpa firm and reviewed in detail by the director of finance. A copy of the return was provided to the chairman of the audit committee and the executive committee for any comments. In addition, a copy of the return was provided to the full board prior to filing with the irs.”

“Board members and officers are required to disclose potential conflicts of interest on an annual basis. The annual signed disclosures are reviewed by the vice chair. The vice chair's disclosure is reviewed by the president. Additionally, the executive & finance teams meet regularly and monitor transactions to make sure they comply with the conflict of interest policy. If there is a potential conflict of interest, the person with a conflict recuses himself from the board's decision making process. No transaction is entered into unless it is determined to be in the best interest of elic.”

“The independent board is responsible for annually establishing the president's compensation. The vice president of human resources compiles a compensation analysis using comparability data from various sources and presents this information to the board. The independent board then examines the data and votes to approve the compensation of each officer. This process is documented in the board minutes. Form 990, part vi, line 15b compensation for other officers is determined by an annual review of similar sized nonprofit and for-profit entities. The compensation was reviewed and approved by the president, and the process is documented in the applicable personnel file”

“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.”

“Change in investment in subsidiaries 2,438,765.”