Starlight Children'S Foundation

“The foundation's staff works closely with an independent accounting firm it engages to prepare the return. The final draft of Form 990 is also reviewed by the CFO and the CEO. A complete copy of the final Form 990 is then provided to all voting board members via email for review and comment prior to filing with the IRS.”

“The conflict of interest policy is monitored by the human resources and administration department. Pursuant to the policy, an annual conflict of interest questionnaire, aimed at determining any family and business relationship transactions or other transactions that may pose a potential conflict, is distributed to all covered persons (i.e., board members, officers and executive leadership or key employees). Covered persons are required to complete the questionnaire and disclose real or potential conflicts at the time when such conflicts arise. When someone becomes a covered person and annually thereafter, each covered person is required to sign a statement affirming that he/she: (1) has received a copy of the conflict of interest policy; (2) has read the policy and understands said policy; and (3) agrees to comply with all requirements of the policy, including completing the conflict of interest questionnaire. The completed questionnaires are reviewed by the finance and administration department. The procedures for addressing any conflict of interest includes, but is not limited to, the following: (1) the conflicting interest is fully disclosed to the board; (2) the interested person responds to factual questions related to the substance of the transaction or arrangement being considered, after which he/she shall leave the meeting; (3) the person with the conflict of interest is excluded from the discussion and approval of such transaction; (4) Alternatives to the proposed transaction are investigated, competitive bids or comparable valuations are obtained; (5) any conflicting issues during the course of a board meeting which cannot be resolved is referred to the governance committee; and (6) the transaction or action must be approved by a majority of disinterested persons.”

“For 2016 compensation, the executive committee of the board, acting as the compensation committee, none of which have a conflict of interest with respect to the compensation arrangement, was accountable for setting a reasonable compensation package for the CEO. The executive committee developed, consistent with the foundation's philosophy and principles, the annual performance goals and criteria to be used in determining merit increases and variable compensation criteria for the CEO. For the current CEO contract, the executive committee also reviewed appropriate comparability data prepared by an independent consultant that utilized national nonprofit compensation surveys in determining the CEO's compensation. The committee's written records include the (1) terms of the arrangement with the disqualified person (including the date the arrangement was approved); and (2) a description of the comparable data relied on by the committee. Key deliberations of the committee, including: (a) the terms of the transaction that was approved and the date it was approved; (b) the members of the executive committee who were present during debate on the transaction that was approved and those who voted on it; (c) the comparability data obtained and relied upon by the executive committee and how the data was obtained; and (d) any actions taken with respect to consideration of the transaction by anyone who is otherwise a member of the executive committee but who had a conflict of interest with respect to the transaction are also documented in minutes, which are approved at the next committee meeting.”

“The financial statements are available to the public on the organization's website. The governing documents and the conflict of interest policy are available upon request.”

“Bad debt expense -50,000.”

“The process did not change from the prior year.”