2021-08-30T06:58:25-05:00 2020-12-31 410746749 CLIFTONLARSONALLEN LLP 10700 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2020-01-01 202601035 WATER FIRST INTERNATIONAL WATE 2062973024 1904 3RD AVENUE NO 1012 SEATTLE WA 98101 MARLA SMITH-NILSON EXECUTIVE DIRECTOR 2062973024 2021-08-19 1 MARLA SMITH-NILSON 999009999 ALLEN GILBERT CPA P01380103 4252506100 2021-08-19 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z WATER 1ST MARLA SMITH-NILSON 1904 3RD AVENUE NO 1012 SEATTLE WA 98101 2527439 0 X WWW.WATER1ST.ORG X 2005 WA WATER 1ST'S MISSION IS TO UNITE PEOPLE TO END THE GLOBAL WATER AND SANITATION CRISIS. 11 11 8 250 0 0 2624213 2506709 3572 19419 979 263 -95242 -11907 2533522 2514484 1898974 1111342 0 0 579433 496146 0 0 183854 356968 195792 2835375 1803280 -301853 711204 2117157 2621978 1769408 1563025 347749 1058953 X WATER 1ST'S MISSION IS TO ENABLE THE WORLD'S POOREST PEOPLE TO IMPLEMENT AND SUSTAIN COMMUNITY-MANAGED PROJECTS INTEGRATING CLEAN WATER SUPPLY, SANITATION AND HYGIENE EDUCATION. WATER 1ST UNITES PEOPLE TO FIGHT THE GLOBAL WATER AND SANITATION CRISIS . WE BELIEVE THIS WORLDWIDE, SILENT CATASTROPHE WILL BE SOLVED WHEN WE BUILD A COMMUNITY OF CONCERNED INDIVIDUALS, AND MOBILIZE THEM TO TAKE SIMPLE, EFFECTIVE ACTIONS. 0 0 1575937 1111342 18010 IN 2020, THE ORGANIZATION COMPLETED 311 PROJECTS SERVING 10,799 PEOPLE. EVERY PROJECT INCORPORATES ACCESS TO WATER AND TOILETS, HYGIENE EDUCATION, AND COMMUNITY DEVELOPMENT. PROJECT WORK WAS IMPACTED IN EACH COUNTRY DUE TO THE CORONA VIRUS PANDEMIC. EACH PROJECT COUNTRY HAD PERIODS OF TIME WHEN THEY WERE UNABLE TO CONTINUE WORK DUE TO STAY-AT-HOME ORDERS FROM THE GOVERNMENT. BECAUSE HYGIENE EDUCATION IS CENTRAL TO OUR PARTNER ORGANIZATIONS' WORK, OUR PARTNERS QUICKLY BECAME INVOLVED IN SLOWING THE SPREAD OF COVID-19 BY DISSEMINATING IMPORTANT PREVENTION MESSAGES. THOSE EFFORTS INCLUDED PROVIDING TOOLS TO COMBAT THE EPIDEMIC SUCH AS PERSONAL PROTECTIVE GEAR, HANDWASHING STATIONS, HYGIENE SUPPLIES, AND VARIOUS METHODS OF OUTREACH COVERING SPECIFIC STEPS PEOPLE COULD TAKE TO PROTECT THEIR HEALTH AND THE HEALTH OF FAMILY MEMBERS. OUR PARTNERS BASED THEIR EDUCATION CAMPAIGNS ON THE WORLD HEALTH ORGANIZATION'S APPROVED MESSAGES ON COVID PREVENTION. ONCE RESTRICTIONS WERE LIFTED, GOVERNMENTS QUICKLY RECOGNIZED THAT ACCESS TO WATER, TOILETS, AND HYGIENE EDUCATION WERE ESSENTIAL COVID PREVENTION ACTIVITIES AND OUR PARTNERS WERE ENCOURAGED TO RESUME THEIR USUAL PROGRAMS IN ADDITION TO THEIR COVID PREVENTION OUTREACH.IN BANGLADESH, THE ORGANIZATION CONTINUED WORK IN THE NEW GEOGRAPHIC AREAS ESTABLISHED IN 2019. 304 WATER SYSTEMS SERVING 8,249 PEOPLE IN URBAN SLUM SETTLEMENTS IN DHAKA, CHATTOGRAM, AND KHULNA WERE CONSTRUCTED. IN HONDURAS, SEVEN PROJECTS WERE COMPLETED PROVIDING ACCESS TO PIPED WATER AND TOILETS AT EVERY HOUSEHOLD FOR SEVEN RURAL LEMPIRA COMMUNITIES THAT ARE HOME TO 2,550 PEOPLE. ADDITIONALLY, THE ORGANIZATION'S LOCAL HONDURAN PARTNER CONTINUES WORK ON A LARGE RURAL TOWN PROJECT AND INITIATED SEVEN ADDITIONAL PROJECTS THAT WILL BE COMPLETED IN 2021/22. IN OROMIA, ETHIOPIA, THE BASIC WATER SUPPLY SYSTEM INFRASTRUCTURE WAS COMPLETED IN 2020 AND 55 INDIVIDUAL CONNECTIONS WERE ESTABLISHED, SERVING 52 HOUSEHOLDS, A SCHOOL, A HEALTH CLINIC, AND A CHURCH. WORK IN MOZAMBIQUE WAS COMPLETELY DISRUPTED DUE TO A VIOLENT INSURGENCY IN THE PROVINCE OF CABO DELGADO THAT HAS APPROACHED CIVIL WAR STATUS AND FORCED A LARGE PROPORTION OF THE POPULATION INTO EXILE IN NEIGHBORING PROVINCES. WE ARE WORKING WITH STAFF OF OUR PARTNER ORGANIZATION TO IDENTIFY NEW OPPORTUNITIES TO RE-ENGAGE IN THAT VERY PROMISING YOUNG PROGRAM. AS OF DECEMBER 2020, THE WATER FIRST COMMUNITY CONTRIBUTED OVER $27 MILLION TO SUPPORT 3,513 PROJECTS SERVING 243,244 PEOPLE IN FIVE COUNTRIES.THE ORGANIZATION'S GOAL IS TO MAXIMIZE COST-EFFECTIVENESS BY LEVERAGING LOCAL RESOURCES. IN THE URBAN SLUMS OF DHAKA, CHATTOGRAM, AND KHULNA, BANGLADESH, FOR EXAMPLE, BENEFICIARIES PAY 100% OF THE CAPITAL COSTS OF THEIR PROJECTS THROUGH TWO-YEAR LOANS. THE LOANS ARE REPAID TO THE LOCAL NON-GOVERNMENTAL ORGANIZATION, WHO IS THE RECIPIENT OF WATER FIRST'S GRANTS. REPAID LOAN FUNDS ARE REVOLVED AND USED FOR ADDITIONAL WATER AND SANITATION PROJECTS AND CREATE A SUSTAINABLE SOURCE OF FUNDS FOR WATER FIRST'S BANGLADESH PARTNER. IN MOZAMBIQUE, HONDURAS AND ETHIOPIA, BENEFICIARIES AND THE LOCAL GOVERNMENT CONTRIBUTE CASH, LABOR, AND LOCAL MATERIALS, WHICH ARE VALUED AT UP TO 25% OF THE TOTAL PROJECT COST. THE ORGANIZATION'S HONDURAS PARTNER HAS THE CAPACITY TO PROVIDE ASSISTANCE FOR WATER SYSTEM CONSTRUCTION, EXPANSION, AND REPAIR ON A LOAN BASIS, FURTHER LEVERAGING LOCAL RESOURCES. 1575937 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 8 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 11 11 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 AL AR CA FL GA HI IL KS KY MA MD MI MN MS NC NH NJ NM NY OR PA RI SC TN UT VA WI WV CO OH CT X THE ORGANIZATION 2062973024 1904 3RD AVENUE NO 1012 SEATTLE WA 98101 MARLA SMITH-NILSON EXECUTIVE DIRECTOR 40.00 X 95510 0 2865 HEATHER LEACH CHAIR 2.00 X X 0 0 0 KRISTINE BATY VICE CHAIR 2.00 X X 0 0 0 TERRY GIBBONS TREASURER 2.00 X X 0 0 0 LYNN CARR DIRECTOR 2.00 X 0 0 0 JULIA CLARKE DIRECTOR 2.00 X 0 0 0 JOSH EPPERSON DIRECTOR 2.00 X 0 0 0 LARA KAMMERECK DIRECTOR 2.00 X 0 0 0 TIM KIRLEY DIRECTOR 2.00 X 0 0 0 DIANE LANGSTRAAT DIRECTOR 2.00 X 0 0 0 DICK MOXON DIRECTOR 2.00 X 0 0 0 CECILIA WHATLEY DIRECTOR 2.00 X 0 0 0 95510 0 2865 0 0 0 0 0 1256719 1249990 5394 2506709 EDUCATIONAL SITE VISIT 812900 19419 19419 19419 263 263 0 1256719 10498 -10498 -10498 1048 2457 -1409 -1409 2514484 18010 0 -10235 1111342 1111342 207278 145094 9838 52346 239065 194205 12169 32691 5801 4421 291 1089 8576 7700 703 173 35426 27200 1706 6520 704 704 10920 10920 26879 9923 19 16937 84161 18294 2106 63761 4280 1250 3030 56946 50442 1084 5420 5891 3998 41 1852 1167 1042 90 35 1026 1026 3818 3818 1803280 1575937 43489 183854 1378227 1435509 573220 589341 143481 539430 0 2807 20367 12283 4357 3521 1862 836 0 41772 2117157 2621978 50316 35035 1709514 1416974 9578 4571 0 106445 1769408 1563025 X 310253 1058953 37496 0 347749 1058953 2117157 2621978 711204 0 X X 0 1 X 1 0 X 2298458 2438803 2983993 2624213 2506709 12852176 2298458 2438803 2983993 2624213 2506709 12852176 1936066 10916110 369 401 910 988 263 2931 76955 47323 124278 12979385 40368 0.84100 0.80390 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: FUNDRAISING EVENT REVENUES RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4357 3521 836 836 X 2516941 2457 2457 2514484 0 2514484 1805737 2457 2457 1803280 0 1803280 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, THE ORGANIZATION QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170(B1)(A)(VI) AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION UNDER SECTION 509(A)(1). THE ORGANIZATION'S INCOME TAX FILINGS ARE SUBJECT TO EXAMINATION BY VARIOUS TAXING AUTHORITIES. THE ORGANIZATION FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION SUBTOPIC 740-10, INCOME TAXES. THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 2,457. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 2,457. 1 BANGLADESH 0 0 PROGRAM SERVICES WATER 1ST PROVIDED GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) BASED IN DHAKA, BANGLADESH IN ORDER TO SUPPORT THE IMPLEMENTATION OF PROJECTS THAT INCLUDE PROVISION OF CONVENIENT, SAFE WATER, HYGIENE EDUCATION, AND SANITARY TOILETS. THE ORGANIZATION'S GOAL IS TO MAXIMIZE COST-EFFECTIVENESS BY LEVERAGING LOCAL RESOURCES. IN THE URBAN SLUMS OF DHAKA (THE CAPITAL CITY), CHITTAGONG AND KHULNA (THE COUNTRY'S 2ND AND 3RD LARGEST CITIES, RESPECTIVELY) BENEFICIARIES PAY 100 PERCENT OF THE CAPITAL COSTS OF THEIR PROJECTS THROUGH ONE OR TWO-YEAR LOANS. THE LOANS ARE REPAID TO THE LOCAL NON-GOVERNMENTAL ORGANIZATION, WHO IS THE RECIPIENT OF WATER FIRST'S GRANTS. REPAID LOAN FUNDS ARE REVOLVED AND USED FOR ADDITIONAL WATER AND SANITATION PROJECTS AND CREATE A SUSTAINABLE SOURCE OF FUNDS FOR WATER FIRST'S BANGLADESH PARTNER. IN 2018, WATER FIRST SUPPORTED THE CONSTRUCTION OF 319 SMALL-SCALE WATER SYSTEMS SERVING 10,086 PEOPLE IN URBAN SLUM SETTLEMENTS. 587406 HONDURAS 0 0 PROGRAM SERVICES WATER 1ST PROVIDED GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) WORKING IN THE DEPARTMENT OF LEMPIRA THAT HELPS COMMUNITIES ORGANIZE AND BUILD SYSTEMS TO PROVIDE PIPED WATER AND TOILETS AT EVERY HOUSEHOLD. IN 2019, THE LARGEST PROJECT WE'VE SUPPORTED TO DATE WAS FINALIZED IN THE FOLLOWING 17 COMMUNITIES IN IN THE MUNCIPALITIES OF CANDELARIA, MAPULACA, VIRGINIA, PIRAERA WITH A COMBINED POPULATION OF 7,293 PEOPLE: EL PORTILLO FLOR, CAMAPARA, SAN LORENZO, LA ISLETA, AZACUALPA, EL LIMON, EL PORTILLO, SAN ANTONIO, SUYAPITA PICHIGUAL, SANTA LUCIA, GUAQUINCORA, AGUA ZARCA, VIGINIA CENTRO, EL RODEO, LLANO GRANDE, EL COYOLAR, EL ZARZAL, TAMBLA CENTRO, AND SAN ANTONIO GRANADILLA. TWO SMALL PROJECTS WERE STARTED AND COMPLETED IN 2019 IN THE COMMUNITIES OF LA CEIBITA AND EL CON CANOA WITH COMBINED POPULATIONS OF 258 PEOPLE. SEVEN ADDITIONAL PROJECTS SERVING WERE INITIATED IN 2019 AND WILL BE COMPLETED IN 2020. 680362 MOZAMBIQUE 0 0 PROGRAM SERVICES THE ORGANIZATION COMPLETED THE MAJORITY OF THE WORK ON ITS SECOND PROJECT IN MOZAMBIQUE, SUPPORTING THE COMMUNITY OF BILIBIZA WITH ACCESS TO WATER, TOILETS, AND HYGIENE EDUCATION. THE PROJECT DESIGN INCLUDES 400 HOUSEHOLD CONNECTIONS TO THE PIPED WATER SYSTEM. ADDITIONALLY, THE ORGANIZATION SUPPORTED RECOVERY EFFORTS IN OUR PROJECT AREAS AS A RESULT OF THE HUMANITARIAN EMERGENCY CREATED BY CYCLONE KENNETH. 15993 ETHIOPIA 0 0 PROGRAM SERVICE WATER 1ST PROVIDED GRANTS TO A NON-GOVERNMENTAL ORGANIZATION (NGO) BASED IN ETHIOPIA IN ORDER TO SUPPORT THE IMPLEMENTATION OF PROJECTS THAT INCLUDE PROVISION OF CONVENIENT, SAFE WATER, HYGIENE EDUCATION, AND SANITARY LATRINES. IN OROMIA, ETHIOPIA, ONGOING SOCIAL UNREST CONTINUED TO COMPLICATED EFFORTS TO CONSTRUCT THE DIMA JELIWAN PROJECT. WATER1ST IS WORKING CLOSELY WITH ITS ETHIOPIAN PARTNER ORGANIZATION TO QUICKLY BEGIN WATER SERVICE TO 750 HOUSEHOLDS/3,800 PEOPLE. 1701 0 0 0 0 0 0 1285462 0 1285462 BANGLADESH COMMUNITY BASED WATER SUPPLY & SANITATION PROJECT TARGETING URBAN SLUMS IN BANGLADESH. 587386 WIRE TRANSFER N/A N/A HONDURAS WATER & SANITATION SYSTEM FOR SMALL COMMUNITIES IN LEMPIRA. 677280 WIRE TRANSFER N/A N/A MOZAMBIQUE 19 DE OUTUBRO WATER AND SANITATION PROJECT 15993 WIRE TRANSFER N/A N/A 0 3 0 0 0 0 0 0 PART I, LINE 2: WHEN WATER 1ST MAKES A GRANT TO A RECIPIENT ORGANIZATION, THESE PROCEDURES ARE FOLLOWED: A GRANT AGREEMENT IS SIGNED BETWEEN WATER 1ST AND EACH RECIPIENT ORGANIZATION DESCRIBING THE PROJECT FOR WHICH THE GRANT FROM WATER 1ST IS BEING GIVEN IN SUPPORT OF WATER, SANITATION, AND HEALTH PROJECTS IN SPECIFIC COMMUNITIES, OR GROUP OF SPECIFIC COMMUNITIES. THE AGREEMENT WILL SPECIFY THE PURPOSES FOR WHICH THE GRANT IS BEING MADE, REQUIRING A FINAL NARRATIVE AND FINANCIAL REPORTING DURING PROJECT IMPLEMENTATION, REQUIRING A FINAL NARRATIVE AND FINANCIAL REPORT, AND ACKNOWLEDGING WATER 1ST'S AUTHORITY TO WITHHOLD AND/OR RECOVER GRANT FUNDS IN CASE SUCH FUNDS ARE, OR APPEAR TO BE, MISUSED. GRANT AGREEMENTS ARE ENDORSED BY FINANCING BY THE MEMBERS OF THE INTERNATIONAL PROGRAMS TEAM (CURRENTLY STAFF MEMBERS KIRK ANDERSON, MARLA SMITH-NILSON, AND STEVE DEEM AND BOARD MEMBERS RICHARD MOXON AND JOHN CROSSMAN) WITHIN THE ANNUAL BUDGET ALLOWANCES APPROVED BY THE BOARD OF DIRECTORS. AFTER PROJECTS HAVE BEEN ENDORSED BY THE INTERNATIONAL PROGRAMS TEAM. THE EXECUTIVE DIRECTOR HAS THE AUTHORITY TO SIGN ON BEHALF OF WATER 1ST. THE GRANT AGREEMENT WILL SPECIFY QUARTERLY PROGRESS PAYMENTS TO THE GRANTEE. THE EXECUTIVE DIRECTOR OR ANYONE WITH CHECK SIGNING AUTHORITY WILL TRANSFER THE QUARTERLY PROGRESS PAYMENT TO THE PARTNER ORGANIZATIONS ACCORDING TO THE SCHEDULE SPECIFIED IN THE GRANT AGREEMENT. WATER 1ST STAFF WILL THEN NOTIFY OUR LOCAL PARTNER ORGANIZATION OF TRANSFER AND ASK THEM TO COMPLETE A WIRE TRANSFER CONFIRMATION FORM OR PROVIDE OTHER CONFIRMATION THAT THE FUNDS WERE RECEIVED. AFTER FUNDS HAVE BEEN TRANSFERRED, OUR LOCAL PARTNER ORGANIZATIONS WILL BE REQUIRED TO SUBMIT QUARTERLY FINANCIAL REPORTS AND WILL ALSO BE REQUIRED TO HAVE AN ANNUAL INDEPENDENT AUDIT OF THEIR ACCOUNTS. WATER 1ST IS AWARE OF THE U.S. EXECUTIVE ORDERS AND U.S. LAW THAT PROHIBIT TRANSACTIONS WITH, AND THE PROVISION OF RESOURCES AND SUPPORT TO, INDIVIDUALS AND ORGANIZATIONS ASSOCIATED WITH TERRORISM. IN SELECTING AND MONITORING OUR LOCAL PARTNER ORGANIZATIONS, WE WILL WORK TO ENSURE COMPLIANCE WITH THESE EXECUTIVE ORDERS AND LAWS, BY MONITORING THE DISTRIBUTIONS WE MAKE TO OUR LOCAL PARTNER ORGANIZATIONS AND ALSO CROSS-CHECKING WITH THE U.S. DEPARTMENT OF STATE'S CURRENT LIST OF DESIGNATED FOREIGN TERRORIST ORGANIZATIONS. WATER 1ST ALSO CONDUCTS SITE INSPECTIONS AND REQUIRE ACCESS TO ALL INVOICES, FINANCIAL RECORDS AND ACCOUNTS FOR THE PROJECTS WE SUPPORT THROUGH OUR LOCAL PARTNER ORGANIZATIONS. WATER 1ST RESERVES THE RIGHT TO HAVE AN AUDIT CONDUCTED IF ANY QUESTIONS CANNOT BE RESOLVED DURING OUR SITE INSPECTIONS. PART I, LINE 3: WATER 1ST HAS ONGOING MONITORING OF EACH GRANT AND EACH LOCAL PARTNER ORGANIZATION. ACCORDING TO OUR GRANT AGREEMENTS, EACH OF OUR LOCAL PARTNER ORGANIZATIONS WILL BE REQUIRED TO: SUBMIT QUARTERLY FINANCIAL REPORTS AS WELL AS FINAL FINANCIAL REPORT AFTER EXPENDITURE OF THE ENTIRE GRANT TO WATER 1ST DESCRIBING IN DETAIL HOW THE GRANT WAS SPENT; SUBMIT QUARTERLY NARRATIVE PROGRESS REPORTS AS WELL AS A FINAL REPORT AFTER EXPENDITURE OF THE ENTIRE GRANT TO WATER 1ST DESCRIBING THE EXTENT TO WHICH THE GOALS AND PURPOSES OF THE PROJECT OR PROGRAM FOR WHICH THE GRANT WAS OBTAINED WERE ACCOMPLISHED; PROVIDE THE MOST RECENT COPY OF AN ANNUAL INDEPENDENT AUDIT OF THE LOCAL PARTNER ORGANIZATION'S FINANCIAL RECORDS; PROVIDE, AS PART OF THEIR FINANCIAL REPORT TO WATER 1ST, COMPLETE RECORDS OF EACH RECEIPT AND EXPENDITURE MADE IN CONNECTION WITH THE GRANT; USE THE ENTIRE GRANT ONLY FOR THE PURPOSES STATED IN THE AGREEMENT BETWEEN WATER 1ST AND THE LOCAL PARTNER ORGANIZATION; AND REPAY ANY PORTION OF THE GRANT NOT USED FOR THE PURPOSES STATED IN THE GRANTEE'S GRANT PROPOSAL. WATER 1ST STAFF MAKES PERIODIC VISITS, NO LESS THAN ANNUALLY, TO OUR LOCAL PARTNER ORGANIZATIONS AND THE PROJECTS SUPPORTED BY WATER 1ST, TO CONDUCT OUR OWN INSPECTION OF THE ONGOING OR COMPLETED WATER, SANITATION AND HEALTH PROJECTS FUNDED BY WATER 1ST. WATER 1ST HAS A WRITTEN EVALUATION THAT WE COMPLETE WHICH INVOLVES INTERVIEWS WITH THE STAFF OF THE LOCAL PARTNER ORGANIZATION, THE WATER COMMITTEES AND INDIVIDUAL HOUSEHOLDS. OBSERVATIONS WILL ALSO BE MADE OF THE USE AND CONSTRUCTION OF THE WATER AND SANITATION SYSTEMS. AS PART OF EACH VISIT, WATER 1ST MEETS WITH THE STAFF OF THE LOCAL PARTNER ORGANIZATION TO SHARE THE EVALUATION RESULTS SO THAT THE LOCAL PARTNER ORGANIZATION CAN FURTHER IMPROVE ITS EFFORTS IN THE COMMUNITIES WE SUPPORT. THESE MEETINGS COVER SUCH TOPICS AS HEALTH EDUCATION, PROJECT OPERATION AND MAINTENANCE, FINANCE, WATERSHED PROTECTION, SANITATION, AND COMMUNITY ORGANIZATION. THESE MEETINGS ALSO ALLOW THE STAFF OF WATER 1ST TO PROVIDE SOME CROSS-FERTILIZATION OF IDEAS AND EXPERIENCE SHARING BETWEEN LOCAL PARTNER ORGANIZATIONS. WHILE CONDUCTING OVERSIGHT OF THE GRANTS, IF WATER 1ST DETERMINES THAT ANY PORTION OF A GRANT HAS BEEN USED FOR A PURPOSE OTHER THAN STATED IN THE AGREEMENT, WATER 1ST WILL TAKE ALL REASONABLE AND APPROPRIATE STEPS TO RECOVER SUCH WRONGFULLY DIVERTED FUNDS AND, AT THE DISCRETION OF WATER 1ST STAFF, WILL IMMEDIATELY TERMINATE THE GRANT ARRANGEMENT WITHOUT ANY OBLIGATION TO MAKE FURTHER DISBURSEMENTS OF THE GRANT. IF WATER 1ST DETERMINES THAT A LOCAL PARTNER ORGANIZATION HAS OTHERWISE VIOLATED THE AGREEMENT (BY, FOR EXAMPLE, FAILING TO SUBMIT REQUIRED REPORTS), WATER 1ST WILL EITHER, AT THE DISCRETION OF THE STAFF, (A) WITHHOLD ANY FUTURE INSTALLMENTS OF THE GRANT UNTIL GRANTEE CORRECTS THE VIOLATION, OR (B) IMMEDIATELY TERMINATE THE ARRANGEMENT WITHOUT ANY OBLIGATION TO MAKE FURTHER DISBURSEMENTS OF THE GRANT. PART III ACCOUNTING METHOD: ONLINE FUNDRAISING DRIVE 1256719 1256719 GIVE WATER GIVE LIFE (CANCELLED) 5505 3743 1 750 500 1256719 1256719 6255 4243 10498 -10498 FORM 990, PART VI, SECTION B, LINE 11B IT IS REVIEWED FIRST BY THE EXECUTIVE DIRECTOR, THEN BY THE BOARD TREASURER AND BY THE FINANCE COMMITTEE OF THE BOARD VIA EMAIL. FORM 990, PART VI, SECTION B, LINE 12C ALL WATER 1ST EMPLOYEES AND BOARD MEMBERS ARE COVERED UNDER OUR CONFLICT OF INTEREST POLICY. WE MUST NOT ONLY AVOID ACTUAL CONFLICTS OF INTEREST, BUT ALSO AVOID SITUATIONS THAT MAY CREATE ANY APPEARANCE THAT A CONFLICT EXISTS. CONFLICTS ARE DETERMINED AT THE BOARD LEVEL AND ARE REVIEWED BY THE BOARD. EMPLOYEES AND BOARD MEMBERS HAVE A DUTY TO DISCLOSE ANY POSSIBLE CONFLICTS. AFTER DISCLOSURE, THE REMAINING BOARD SHALL DECIDE BY MAJORITY VOTE IF A CONFLICT OF INTEREST EXISTS. THESE DISCUSSIONS AND VOTES ARE RECORDED IN WRITTEN MEETING MINUTES. WE ALSO HAVE PROCEDURES IF WE FIND VIOLATIONS OF OUR POLICY. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD GOVERNANCE COMMITTEE UNDERTAKES AN ANNUAL PERFORMANCE REVIEW, INTERVIEWING BOARD AND STAFF MEMBERS FOR INPUT. COMPENSATION IS PARTLY BASED ON THIS REVIEW, AND ALSO BASED ON BENCH-MARKING COMPENSATION DATA FROM OTHER SIMILAR NONPROFITS. AT THE BOARD'S ANNUAL NOVEMBER MEETING, THE BUDGET FOR THE YEAR IS APPROVED, INCLUDING THE COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 OUR AUDITED FINANCIAL STATEMENTS ARE AVAILABLE ON OUR WEBSITE FOR DOWNLOAD AND UPON REQUEST. ALL OTHER DOCUMENTS, SUCH AS OUR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND OTHER DOCUMENTS OF INTEREST TO OUR SUPPORTERS ARE AVAILABLE UPON REQUEST. FORM 990 PART XII, LINE 2C THE PROCESS FOR SELECTING AN INDEPENDENT ACCOUNTING FIRM HAS NOT CHANGED FROM THE PRIOR YEAR.