Pathways for Peace and Progress Inc

“Schedule O - Explanation for Monitoring and Enforcing Compliance with Policies The organization maintains a Conflict of Interest Policy and a Code of Ethics Policy. To ensure compliance each board member and key employee is required to review and sign the policies annually. During board meetings disclosures of potential conflicts are requested and documented in the meeting minutes. The governing body reviews all transactions involving board members or key employees to ensure compliance. Any concerns or violations are addressed in accordance with the organizations disciplinary procedures.”

“Schedule O - Line 15a & 15b Explanation The compensation of the Executive Director and other key employees is reviewed and approved annually by the Board of Directors. The process includes: Review by independent board members not receiving compensation. Use of comparability data from similar nonprofit organizations of comparable size and mission including publicly available salary surveys and compensation studies. Contemporaneous documentation of the discussion and approval is recorded in the meeting minutes and maintained in the organizations records. This procedure ensures transparency fairness and alignment with IRS guidelines for reasonable compensation.”

“Schedule O - Part VI Section C Line 19 Explanation During the tax year the organization made its governing documents conflict of interest policy and financial statements available to the public upon request. Individuals could access these documents by contacting the organization directly via email or phone as listed on its official website and public directories. Additionally financial statements were made available during community meetings and upon written request. The organization is committed to transparency and accountability in its operations.”

“Schedule O - Supplemental Information Part IX Line 24e - Other Program Expenses $25,000 These other program expenses represent direct costs of delivering PPPs three core service initiatives. They include: Future-Ready Youth Training Program $10,000 Curriculum development and instructional materials workbooks digital licenses Instructor stipends for 8-week bootcamps Participant transportation stipends and meals Mind Matters Community Counseling Project $8,000 Trauma-informed workshop supplies workbooks art therapy kits Peer-support facilitator honoraria Telehealth platform subscription fees NeighborLink Community Engagement Initiative $7,000 Pop-up fair logistics venue rental tables chairs Hygiene-kit and meal-distribution supplies Outreach materials brochures banners volunteer T-shirts All costs are paid from unrestricted contributions and are directly tied to program delivery. No portion was used for fundraising or management overhead.”

“Explanation for Part XII Line 1 - Accounting Method: The organization prepares its Form 990 using the accrual basis of accounting. Under this method revenues are recorded when earned and expenses are recorded when incurred regardless of when cash is received or paid. There has been no change in the method of accounting from the prior year.”

“Explanation for Part VI Section B Line 4 - Committee Oversight: Yes the organization has an Audit Committee that assumes responsibility for overseeing the audit process review of the financial statements and selection of an independent accountant. The committee is composed of 3 members including independent directors and a financial expert and it meets quarterly to review the financial statements and oversee the external audit process. The committee also ensures that the independent accountant is selected in accordance with the organizations financial policies.”

“| Explanation:| Line 7 Other salaries and wages $29 767; Program Services: All staff compensation not captured under officers directors trustees or key employeestotaling $29 767is allocated entirely to Program Services. This covers salaries for program coordinators outreach specialists and administrative support delivering PPPs training counseling and outreach initiatives.”

“| Explanation:| Line 12 Advertising and promotion $5 000; Program $2 500; Management & General $2 500: Total $5 000 in advertising includes: $2 500 for direct program outreach social-media boosted posts community flyers local radio spots to recruit and inform participants. $2 500 for organizational branding and donor communications annual report mailings e-newsletter design and website banner ads.”

“| Explanation:| Line 14 Information technology $500; Program Services: $500 reflects end-of-year costs for website hosting platform maintenance and minor feature updatesall used to support online program registration participant portals and resource sharing. Entirely allocated to Program Services.”

“| Explanation:| Line 16 Occupancy $44 153; Program $15 000; Management & General $29 153: Office lease expense of $44 153 is split based on usage: $15 000 to Program Services for space used in workshops counseling rooms and volunteer trainings. $29 153 to Management & General for administrative offices meetings and storage areas.”

“| Explanation:| Line 22 Depreciation depletion and amortization $500; Program Services: Depreciation of $500 represents straight-line amortization of a laptop cost $1 000 2-year life used exclusively for program delivery digital trainings telehealth counseling.”

“| Explanation:| Line 24a Registration & Filing Fees $2 350; Management & General: $2 350 covers state and federal registrations annual IRS and state filings and compliance feesall classified under Management & General.”

“| Explanation:| Line 24b Rent Storage $200; Management & General: $200 reflects off-site storage rental for program materials equipment and organizational records; allocated to Management & General.”

“| Explanation:| Schedule O Note for Line 8 Part XI Line 8 Prior Period Adjustments $25,000: During the audit the organization identified that certain capitalasset transactions and related depreciation had been misclassified in prior periods. A one-time reclassification adjustment of $25,000 was recorded to correct the beginning net asset balance and fully reconcile to the audited financial statements. This treatment ensures your ending net assets $449,090 in Part XI now exactly match Part X Line 32 Column B.”