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        <ExplanationTxt>IT IS THE POLICY OF FRIENDS OF HCL, IN ACCORDANCE WITH U.S. GAAP, TO ASSESS ANY UNCERTAIN TAX POSITIONS AND, IF NECESSARY, RECORD A LIABILITY AND RELATED INCOME TAX EXPENSE FOR ANY UNCERTAIN TAX POSITIONS. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY FRIENDS OF HCL AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2020, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 2, PART III, LINE 4C</FormAndLineReferenceDesc>
        <ExplanationTxt>PUBLIC AWARENESS AND DONOR ENGAGEMENT: TALK OF THE STACKS IS A READING SERIES WHICH EXPLORES CONTEMPORARY LITERATURE AND CULTURE. DURING THE YEAR, 300 INDIVIDUALS ATTENDED A SINGLE IN-PERSON PROGRAM PRIOR TO COVID-19 LOCKDOWN, AND 1,850 ATTENDED 3 VIRTUAL PROGRAMS, ALL AT NO COST. VOLUNTEER OPPORTUNITIES WERE SIGNIFICANTLY IMPACTED BY COVID-19, WITH 5 VOLUNTEERS CONTRIBUTING 10 HOURS TO ASSIST STAFF AT A SINGLE PROGRAM IN THE SERIES. THE GREAT FRIENDS READ TOGETHER IS A VIRTUAL BOOK GROUP CONNECTING LIBRARY PATRONS AND DONORS THROUGH THE POWER OF CLASSIC LITERATURE. 136 LIBRARY FRIENDS SIGNED UP AS PARTICIPANTS OF THIS NO-COST VIRTUAL PROGRAM. ADDITIONAL LITERARY AND CULTURAL EVENTS: 240 PEOPLE ATTENDED 2 ENGAGEMENT EVENTS WHICH HIGHLIGHTED EXCEPTIONAL LIBRARY SERVICE AND CELEBRATED CONNECTIONS TO THE LITERARY COMMUNITY. FURTHER PUBLIC AWARENESS PIECES ON BEHALF OF THE LIBRARY SYSTEM: DISTRIBUTED 1700 PRINTED EVENTS GUIDES AT TWO IN-PERSON EVENTS PRIOR COVID-19 PANDEMIC, 1,007 VIEWS OF VIRTUAL EVENT GUIDES, NEWSLETTERS PROVIDING MORE THAN 24,023 PRINT IMPRESSIONS AND 50+ EMAIL COMMUNICATIONS TO 17,023 E-NEWS SUBSCRIBERS, 10,364 SOCIAL MEDIA (FACEBOOK, INSTAGRAM, TWITTER, LINKEDIN) FANS, AND ACQUIRED 57,221 UNIQUE WEBSITE VISITS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 9</FormAndLineReferenceDesc>
        <ExplanationTxt>KRISTI PEARSON 300 NICOLLET MALL MINNEAPOLIS, MN 55401</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 11B</FormAndLineReferenceDesc>
        <ExplanationTxt>THE FINANCE COMMITTEE REVIEWS THE FORM 990 FOR ACCURACY AND COMPLETENESS, THEN FORWARDS TO THE FULL BOARD PRIOR TO FILING.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>THE ORGANIZATIONS CONFLICT OF INTEREST POLICY COVERS DIRECTORS, STAFF AND FAMILY MEMBERS OF DIRECTORS AND STAFF. EACH RESPONSIBLE PERSON SHALL ANNUALLY COMPLETE A DISCLOSURE FORM IDENTIFYING ANY RELATIONSHIPS, POSITIONS OR CIRCUMSTANCES IN WHICH THE RESPONSIBLE PERSON IS INVOLVED THAT HE OR SHE BELIEVES COULD CONTRIBUTE TO A CONFLICT OF INTEREST ARISING. SUCH RELATIONSHIPS, POSITIONS OR CIRCUMSTANCES MIGHT INCLUDE SERVICE AS A DIRECTOR OF OR CONSULTANT TO A NONPROFIT ORGANIZATION, OR OWNERSHIP OF A BUSINESS THAT MIGHT PROVIDE GOODS OR SERVICES TO FRIENDS OF THE HENNEPIN COUNTY LIBRARY. ANY SUCH INFORMATION REGARDING BUSINESS INTERESTS OF A RESPONSIBLE PERSON OR A FAMILY MEMBER SHALL BE TREATED AS CONFIDENTIAL AND SHALL GENERALLY BE MADE AVAILABLE ONLY TO THE CHAIR, THE PRESIDENT, AND ANY COMMITTEE APPOINTED TO ADDRESS CONFLICTS OF INTEREST, EXCEPT TO THE EXTENT ADDITIONAL DISCLOSURE IS NECESSARY IN CONNECTION WITH THE IMPLEMENTATION OF THIS POLICY. THIS POLICY SHALL BE REVIEWED ANNUALLY BY EACH MEMBER OF THE BOARD OF DIRECTORS. ANY CHANGES TO THE POLICY SHALL BE COMMUNICATED IMMEDIATELY TO ALL RESPONSIBLE PERSONS. PRIOR TO BOARD OR COMMITTEE ACTION, THE PERSON WHO HAS A CONFLICT SHALL DISCLOSE ALL FACTS MATERIAL TO THE CONFLICT OF INTEREST. THE PERSON WHO HAS A CONFLICT OF INTEREST SHALL NOT PARTICIPATE IN OR BE PERMITTED TO HEAR THE BOARD OR COMMITTEE'S DISCUSSION OF THE MATTER EXCEPT TO DISCLOSE MATERIAL FACTS AND TO RESPOND TO QUESTIONS. THE PERSON WHO HAS A CONFLICT OF INTEREST MAY NOT BE COUNTED IN DETERMINING THE PRESENCE OF A QUORUM, NOR VOTE ON THE MATTER OF INTEREST, NOR BE PRESENT IN THE ROOM DURING THE VOTE, UNLESS THE VOTE IS BY SECRET BALLOT. ALL DISCLOSURES OF POTENTIAL CONFLICTS SHALL BE REFLECTED IN THE MINUTES OF THE MEETING.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 15A</FormAndLineReferenceDesc>
        <ExplanationTxt>THE EXECUTIVE DIRECTORS COMPENSATION WAS DETERMINED AT THE TIME OF HIRING BY THE HUMAN RESOURCES SUB-COMMITTEE OF THE EXECUTIVE COMMITTEE USING DATA FROM COMPARABLE NON-PROFITS IN THE AREA. THE EXECUTIVE COMMITTEE PERFORMS AN ANNUAL REVIEW OF THE EXECUTIVE DIRECTOR WHICH DETERMINES ANY CHANGES TO COMPENSATION. THIS REVIEW LAST OCCURRED ON JANUARY 27, 2021 COVERING THE PERIOD OF JANUARY 1 TO DECEMBER 31, 2020. ADDITIONALLY, THE EXECUTIVE DIRECTOR PERFORMS AN ANNUAL REVIEW FOR ALL KEY STAFF. THE DESIGN OF THE EVALUATION MAY CHANGE ANNUALLY AND MAY OR MAY NOT INCLUDE REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. STAFF MERITS ARE APPROVED ON AN ANNUAL BASIS DURING THE BUDGETING PROCESS.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 19</FormAndLineReferenceDesc>
        <ExplanationTxt>THE ORGANIZATION SUBMITS ANNUAL REPORTS TO THE MINNESOTA OFFICE OF THE ATTORNEY GENERAL AND THE CHARITIES REVIEW COUNCIL. THESE REPORTS ARE MADE AVAILABLE TO THE PUBLIC THROUGH THEIR OFFICES AND WEBSITES. ADDITIONALLY, THE ORGANIZATION PRODUCES AN ANNUAL REPORT WHICH DISCLOSES THE OPERATIONS OF THE YEAR. THE ORGANIZATION MAKES AVAILABLE TO THE PUBLIC COPIES OF OUR ANNUAL AUDITED FINANCIAL STATEMENTS, TAX FILINGS, CONFLICT OF INTEREST POLICY, AND OTHER GOVERNING DOCUMENTS UPON REQUEST.</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleO>
  </ReturnData>
</Return>
