2021-11-10T14:27:20-06:00 2020-12-31 131655065 LUTZ AND CARR CPAS LLP 551 FIFTH AVENUE SUITE 400 NEW YORK NY 10176 990 2020-01-01 311734086 FRIENDS OF THE HIGH LINE INC FRIE 2122069922 820 WASHINGTON STREET NEW YORK NY 100141406 ROBERT HAMMOND ROBERT HAMMOND 2122069922 2021-11-15 1 ROBERT HAMMOND XXX-XX-XXXX MICHAEL WALLACE P00881958 2126972299 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z ROBERT HAMMOND 820 WASHINGTON STREET NEW YORK NY 100141406 40319000 0 X WWW.THEHIGHLINE.ORG X 2000 NY FRIENDS OF THE HIGH LINE IS A NON-PROFIT PARK CONSERVANCY RESPONSIBLE FOR MAINTAINING AND OPERATING AN EXTRAORDINARY PUBLIC SPACE ON THE HIGH LINE. THE HIGH LINE IS A 1.45-MILE ELEVATED FREIGHT RAIL LINE TRANSFORMED INTO A PUBLIC PARK ON MANHATTAN'S WEST SIDE. 36 35 199 68 133 0 12433000 17524000 1124000 886000 1688000 849000 2779000 855000 18024000 20114000 0 0 0 0 10565000 10230000 77000 280000 2398000 6564000 4805000 17206000 15315000 818000 4799000 98297000 106621000 2922000 3219000 95375000 103402000 X FRIENDS OF THE HIGH LINE WORKS TO BUILD AND MAINTAIN AN EXTRAORDINARY PUBLIC SPACE ON THE HIGH LINE. WE SEEK TO PROTECT THE ENTIRE HISTORIC STRUCTURE, TRANSFORMING AN ESSENTIAL PIECE OF NEW YORK'S INDUSTRIAL PAST AND INSPIRING NEW WAYS OF THINKING ABOUT THE CITY, PARKS, PUBLIC SPACE, PRESERVATION, AND COMMUNITY. WE PROVIDE VIRTUALLY ALL OF THE HIGH LINE'S ANNUAL OPERATING BUDGET AND ARE RESPONSIBLE FOR THE MAINTENANCE OF THE PARK, PURSUANT TO A LICENSE AGREEMENT WITH THE NEW YORK CITY DEPARTMENT OF PARKS & RECREATION. THROUGH EXCELLENCE IN OPERATIONS, STEWARDSHIP, INNOVATIVE PROGRAMMING, AND WORLD-CLASS DESIGN, WE SEEK TO ENGAGE THE VIBRANT AND DIVERSE COMMUNITY ON AND AROUND THE HIGH LINE. 0 0 4470000 1518000 HIGH LINE OPERATIONS: IN 2020, FRIENDS OF THE HIGH LINE ("FHL") SUCCESSFULLY OPERATED AND MAINTAINED SECTIONS 1, 2, AND 3 OF THE PARK, FROM GANSEVOORT STREET TO WEST 34TH STREET LEADING UP TO THE COVID-19 PANDEMIC. IN MARCH, IN RESPONSE TO THE PANDEMIC, FHL CLOSED THE PARK TO THE PUBLIC AND TRANSITIONED A MAJORITY OF STAFF TO REMOTE-WORKING ARRANGEMENTS. FOLLOWING THE PARK CLOSURE, FHL SOURCED OVER 30,000 MASKS, 200 GALLONS OF HAND SANITIZER, AND 400,000 GLOVES TO ENSURE THE SAFETY OF ALL STAFF MEMBERS IN ANTICIPATION OF PARK REOPENING. NEW PROCEDURES AND PROTOCOLS SUCH AS SOCIAL DISTANCING AND ENHANCED CLEANING WERE ALSO IMPLEMENTED IN ACCORDANCE WITH CDC AND NEW YORK STATE GUIDELINES. IN JULY, FHL WAS ABLE TO SUCCESSFULLY RE-OPEN TO THE PUBLIC WITH ENHANCED SAFETY PROTOCOLS, A NEW VISITOR TIMED-ENTRY SYSTEM, AND AVAILABLE PPE FOR DISTRIBUTION. THE HORTICULTURE TEAM MANAGED THE GARDENS ON THE PARK INCLUDING INTENSIVE WEEDING, PRUNING, REMOVAL OF DEAD AND DISEASED PLANTS, WATERING, AND CONTINUED THE COMPOSTING PARTNERSHIP WITH OUR PUBLIC PARTNER THROUGHOUT THE YEAR. SINCE REOPENING OF THE PARK, FHL SAFELY WELCOMED BACK 300,000 VISITORS THROUGHOUT THE REMAINDER OF 2020. 2694000 12000 PROGRAMMING, ART AND EDUCATION:IN 2020, FHL EXHIBITED A SOMEWHAT CURTAILED PUBLIC ART PROGRAM, DUE TO THE COVID-19 PANDEMIC. FHL EXHIBITED THE WORK OF 7 ARTISTS IN THE PARK, INCLUDING 3 VIDEO PROGRAMS, 2 SCULPTURE COMMISSIONS FABRICATED AND INSTALLED IN SPRING 2019 AND EXTENDED THROUGH SPRING 2021, AND THE FIRST MONUMENTAL-SCALE SCULPTURE OF THE HIGH LINE PLINTH PROGRAM. IN ADDITION, THE ART DEPARTMENT UNDERTOOK THE PROPOSAL PROCESS FOR THE THIRD AND FOURTH HIGH LINE PLINTH COMMISSIONS, INCLUDING GATHERING PUBLIC FEEDBACK ONLINE FOR 80 ARTIST PROPOSALS AND NARROWING TO A SHORTLIST OF 12 FINALISTS. THE JOINT NETWORK ART & PROGRAMMING INITIATIVE UNDERTOOK THE ORGANIZING OF A TWO-PART PANEL DISCUSSION SERIES TITLED "FUTURE OF MONUMENTALITY" THAT TOOK PLACE IN JANUARY 2021. FHL SIGNIFICANTLY EXPANDED THE HIGH LINE NETWORK, A GROUP OF INFRASTRUCTURE REUSE PROJECTS-AND THE PEOPLE WHO ARE HELPING THEM COME TO LIFE-IN 2020. THE NETWORK WELCOMED 15 NEW MEMBERS TO SUPPORT A TOTAL OF 38 PROJECTS ACROSS NORTH AMERICA, AND IMPLEMENTED BIWEEKLY NETWORK CALLS FOR MEMBERS TO SHARE, LEARN AND CONNECT. FHL ALSO CONTINUED THE PILOT IMPLEMENTATION OF THE EQUITABLE IMPACTS FRAMEWORK AND LAUNCHED NEW INITIATIVES TO SUPPORT INTERNAL EQUITY IN MEMBER ORGANIZATIONS.HIGH LINE SCHOOL PROGRAMS MAINTAINED THEIR PARTNERSHIPS FROM THE PREVIOUS YEAR, DURING A TIME WHEN MANY 3RD PARTY PARTNERSHIPS WERE CANCELLED DUE TO DECREASED FUNDING, AND DESIGNED CURRICULA ALONGSIDE CLASSROOM TEACHERS TO ENSURE A RIGOROUS PARTNERSHIP MODEL WHERE STUDENTS AND SCHOOLS ARE BEING SERVED IN ALIGNMENT WITH THEIR INDIVIDUAL NEEDS AND GOALS. HIGH LINE SCHOOL PROGRAMS WERE ABLE TO PROVIDE OVER 100 DIRECT SERVICE HOURS TO STUDENTS AND EMPLOY 3 TEACHING ARTISTS WHO MAINTAIN THEIR OWN PROFESSIONAL PRACTICE IN A VARIETY OF DISCIPLINES. THE HIGH LINE EDUCATION DEPARTMENT ALSO EXPANDED ITS EDUCATIONAL OFFERINGS TO INCLUDE PARTNERSHIPS WITH EXHIBITING ARTISTS ON THE HIGH LINE, THE USE OF THE PARK FOR OUTDOOR LEARNING, AND EXTENDING PHYSICAL SPACE TO EXTERNAL PARTNERS SUCH AS THE FRESH AIR FUND, DEEPENING OUR COMMITMENT TO FUNCTIONING AS A CIVIC CONNECTOR. THE HIGH LINE TEEN PROGRAM PROVIDED EMPLOYMENT FOR 22 LOCAL TEENAGERS ESTABLISHING A SENSE OF NORMALCY AND CALM DURING A TIME OF GREAT DISSONANCE ON A GLOBAL SCALE. HIGH LINE TEEN STAFF HAVE THE OPPORTUNITY TO ACCRUE UP TO 500 WORK HOURS EACH OVER THE COURSE OF A 10 MONTH PROGRAM. THE PROGRAM IS SET TO DOUBLE IN SIZE IN THE COMING YEAR. FHL ALSO WORKED WITH 68 VOLUNTEERS WHO SUPPORTED THE ORGANIZATION THROUGH 420 HOURS AS DOCENTS, GREETERS, HORTICULTURAL ASSISTANTS, AMBASSADORS AND PHOTOGRAPHERS. 1776000 HIGH LINE PLANNING, CONSTRUCTION AND CAPITAL REPAIRS:IN 2020, FHL COMPLETED WORK ON A MAJOR CAPITAL REPAIR PROJECT, ADVANCED THE PLANNING AND DESIGN PHASES FOR ADDITIONAL SMALL AND LARGE-SCALE PROJECTS, AND COMPLETED A RANGE OF CAPITAL IMPROVEMENTS ON THE EXISTING HIGH LINE.WHILE THE HIGH LINE WAS CLOSED TO THE PUBLIC DUE TO THE COVID-19 PANDEMIC BETWEEN MID-MARCH AND JULY, PLANNING AND DESIGN WORK CONTINUED FOR A NUMBER OF PROJECTS TO RESTART IN THE LATE SUMMER. RENOVATIONS OF THE RAIL TRACK WALK IN PHASE I OF SECTION 3 STARTED AND CONTINUED THROUGH THE FALL OF 2020, AND REOPENED TO THE PUBLIC IN SPRING 2021. THIS MAJOR CAPITAL PROJECT REPLACED THE PATHWAY AND PLANTINGS IN A SECTION OF THE HIGH LINE THAT WAS DAMAGED DUE TO ADJACENT CONSTRUCTION.FHL CONTINUED PLANNING AND DESIGN WORK FOR THE RECONSTRUCTION OF THE 10TH AVENUE SQUARE AND THE COMPLETE RECONSTRUCTION OF THE THREE MAJOR STAIRCASES TO THE HIGH LINE AT 20TH, 26TH, AND 28TH STREETS; CONSTRUCTION FOR THESE PROJECTS IS SCHEDULED TO START IN LATE 2021-EARLY 2022.FHL STARTED AND COMPLETED MANY CRITICAL CAPITAL IMPROVEMENT PROJECTS ON THE HIGH LINE. THESE PROJECTS INCLUDED THE REPLACEMENT OF THE UTILITY VAULT HATCH AT 14TH STREET, REPAIRS AND UPGRADES TO THE PERSHING SQUARE BEAMS FEATURE, AND RESTORATION OF THE LANDSCAPE AT THE FALCONE FLYOVER BETWEEN 25TH-26TH STREETS. 1876000 19000 COMMUNICATIONS, RETAIL, VENUE RENTALS, AND CONCESSIONS 1876000 19000 10816000 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 90 0 199 1 0 0 0 0 0 1 1 1 5 0 0 0 0 0 X 36 35 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY CT NJ X THE ORGANIZATION 2122069922 820 WASHINGTON STREET NEW YORK NY 100141406 ROBERT HAMMOND CO-FOUNDER & EXECUTIVE DIRECTOR 40.00 X X 594782 0 25313 MARIO J PALUMBO JR CHAIR 3.00 X X 0 0 0 SUSAN VINIAR VICE CHAIR 3.00 X X 0 0 0 JASON STEWART TREASURER 3.00 X X 0 0 0 PETER S WILSON SECRETARY 3.00 X X 0 0 0 PHILIP E AARONS FOUNDING CHAIR 1.00 X 0 0 0 KAREN ANN HERSKOVITZ MEMBER 1.00 X 0 0 0 JENNIFER ALLAN SOROS MEMBER 1.00 X 0 0 0 JOHN H ALSCHULER JR MEMBER 1.00 X 0 0 0 JOHN BLONDEL MEMBER 1.00 X 0 0 0 AMANDA M BURDEN MEMBER 1.00 X 0 0 0 URSULA M BURNS MEMBER 1.00 X 0 0 0 SHARON DAVIS MEMBER 1.00 X 0 0 0 KRISTEN M DICKEY MEMBER 1.00 X 0 0 0 CHERYL COHEN EFFRON MEMBER 1.00 X 0 0 0 ELLEN FITZSIMMONS MEMBER 1.00 X 0 0 0 ALEXANDRE VON FURSTENBERG MEMBER 1.00 X 0 0 0 GARY HANDEL MEMBER 1.00 X 0 0 0 JEFFREY HARRIS MEMBER 1.00 X 0 0 0 HERMINE RIEGERL HELLER MEMBER 1.00 X 0 0 0 J TOMILSON HILL MEMBER 1.00 X 0 0 0 SANDRA JACKSON-DUMONT MEMBER 1.00 X 0 0 0 WENDY KEYS MEMBER 1.00 X 0 0 0 JANE LAUDER MEMBER 1.00 X 0 0 0 HEATHER LEVIN MEMBER 1.00 X 0 0 0 CATHERINE C MARRON MEMBER 1.00 X 0 0 0 GIFFORD MILLER MEMBER 1.00 X 0 0 0 SARAH MIN MEMBER 1.00 X 0 0 0 ACKNEIL M MULDROW III MEMBER 1.00 X 0 0 0 DONALD R MULLEN JR MEMBER 1.00 X 0 0 0 MICHAEL PHILLIPS MEMBER 1.00 X 0 0 0 STEVEN RUBENSTEIN MEMBER 1.00 X 0 0 0 DELORES RUBIN MEMBER 1.00 X 0 0 0 MITCHELL SILVER FAICP MEMBER 1.00 X 0 0 0 DARREN WALKER MEMBER 1.00 X 0 0 0 JOANNE WILSON MEMBER 1.00 X 0 0 0 BRONSON VAN WYCK MEMBER 1.00 X 0 0 0 TARA MORRIS CHIEF ADVANCEMENT OFFICER- 40.00 X 304213 0 16152 GAIL BELTRONE CHIEF OPERATING OFFICER 40.00 X 300337 0 3987 MAURICIO GARCIA CHIEF PROGRAM & ENGAGEMENT 40.00 X 196456 0 18327 CECILIA ALEMANI CURATOR AND DIRECTOR OF HL ART 40.00 X 168683 0 16130 RAY BAMIDELE OLADAPO-JOHNSON VICE PRESIDENT OF PARK OPERATIONS 40.00 X 157257 0 24659 ASIMA JANSVELD VICE PRESIDENT OF THE HL NETWORK 40.00 X 147239 0 3500 JENNIFER PADAVIC SENIOR DIRECTOR OF ADMINISTRATION 40.00 X 146105 0 11489 KRISTEN GELINAS SR DIR OF BUSINESS DEVELOPMENT 40.00 X 141313 0 11489 TONY WONG SR DIR OF FINANCE & ASST TREASURER 40.00 X 133901 0 9500 2290286 0 140546 16 0 1 0 FJ SCIAME CONSTRUCTION CO INC 14 WALL STREET NEW YORK NY 10005 CONSTRUCTION 827641 DILLER SCOFIDIO RENFO ARCHITECTS DPC 601 W 26TH ST 1815 NEW YORK NY 10001 DESIGN 629410 NYC DEPARTMENT OF PARKS AND RECREATION 1234 FIFTH AVENUE 223 NEW YORK NY 10029 PARK SECURITY 239742 MACKTEZ CORPORATION 137 GRAND ST 4TH FLOOR NEW YORK NY 10013 IT SERVICES 195085 JOSHUA DAVID 354 W 21ST ST NEW YORK NY 10011 FUNDRAISING CONSULTANT 164750 11 2417000 1805210 13301790 529000 17524000 REPAIRS, MAINTENANCE AND IMPROVEM 713990 883000 883000 FIELD TRIPS AND WALKING TOURS 713990 3000 3000 886000 992000 992000 192000 0 192000 192000 192000 19868000 20011000 -143000 -143000 -143000 183000 2417000 183000 0 13000 11000 2000 1867 133 OTHER REVENUE 900099 661000 661000 661000 20114000 1548867 133 1041000 1603000 434000 913000 256000 6855000 5345000 484000 1026000 192000 139000 23000 30000 1037000 722000 183000 132000 543000 363000 89000 91000 12000 12000 52000 52000 42000 42000 280000 280000 128000 128000 919000 646000 41000 232000 72000 37000 11000 24000 108000 97000 1000 10000 29000 24000 1000 4000 59000 13000 21000 25000 250000 205000 13000 32000 73000 48000 11000 14000 HIGH LINE CONSTRUCTION 1181000 1181000 SUPPLIES 402000 283000 31000 88000 SECURITY 392000 386000 6000 REPAIRS & MAINTENANCE 387000 380000 3000 4000 699000 513000 84000 102000 15315000 10816000 2101000 2398000 2644000 5029000 58000 16000 24852000 27811000 392000 741000 163000 204000 1895000 1418000 710000 477000 61311000 63564000 8167000 8779000 98297000 106621000 1304000 1029000 1325000 1953000 293000 237000 2922000 3219000 X 61527000 62612000 33848000 40790000 95375000 103402000 98297000 106621000 4799000 3228000 0 X X 0 1 X 1 0 X 14168068 15600000 13212000 12433000 17524000 72937068 14168068 15600000 13212000 12433000 17524000 72937068 8293978 64643090 3709622 3404000 2692000 3376000 1184000 14365622 12976 12976 87315666 11530653 0.74030 0.71120 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 1413 0 0 1413 0 PART II-B, LINE 1: IN 2020, FHL STAFF ENGAGED IN LOBBYING ACTIVITIES WITH REPRESENTATIVES FROM VARIOUS NYC AND NYS AGENCIES REGARDING HIGH LINE MAINTENANCE AND OPERATIONS, HIGH LINE PROGRAMMING, COMMUNITY RELATIONS AND ENGAGEMENT, AND SOLICITATION OF FUNDS. 51695000 3724000 605000 54814000 44981000 7241000 527000 51695000 49168000 62000 -2938000 1311000 44981000 40501183 3802000 5544817 680000 49168000 34829904 3505000 2166279 40501183 0.85500 0.10700 0.03800 0 0 1585000 1134000 451000 310000 284000 26000 477000 HEDGE FUNDS 5560000 F PRIVATE EQUITY FUNDS 3219000 F 8779000 REFUNDABLE DEPOSITS PAYABLE 21000 SECTION 457 RETIREMENT PLAN PAYABLE 216000 237000 23524000 3228000 310000 3538000 19986000 128000 128000 20114000 15497000 310000 310000 15187000 128000 128000 15315000 PART V, LINE 4: THE ENDOWMENT FOR SUSTAINABILITY IS USED TO SUPPORT THE OPERATIONS OF THE HIGH LINE INCLUDING, BUT NOT LIMITED TO, HORTICULTURE, MAINTENANCE, VISITOR SERVICES, PUBLIC PROGRAMS, PUBLIC ART COMMISSIONS, AND SCHOOL AND YOUTH PROGRAMS. THE HORTICULTURE AND STEWARDSHIP FUND IS USED TO SUPPORT THE HORTICULTURE CARE AND GENERAL MAINTENANCE OF THE PUBLIC PARK ON THE HIGH LINE. THE PUBLIC PROGRAMS FUND IS USED TO SUPPORT PUBLIC PROGRAMS ON THE PARK, INCLUDING THE HIGH LINE TEEN JOB PROGRAM, SCHOOL FIELD TRIPS, AND PUBLIC ART PROJECTS. THE BOARD DESIGNATED HIGH LINE FUND IS USED TO SUSTAIN THE PARK'S LONG-TERM MAINTENANCE AND OPERATIONS. X X X X X 1 MKDM 612 EAST JEFFERSON STREET CHARLOTTESVILLE VA 22902 DIRECT RESPONSE STRATEGY COUNSEL 0 781079 115322 665757 JOSHUA DAVID 354 WEST 21ST STREET NEW YORK NY 10011 FUNDRAISING CONSULTANT 0 0 164750 0 781079 280072 665757 NY CT NJ BENEFIT WALK 2600000 2417000 183000 42000 110000 15000 16000 0 2600000 2417000 183000 42000 110000 15000 16000 183000 0 X X X X X X 0 1 0 0 0 0 0 0 0 ROBERT HAMMOND CO-FOUNDER & EXECUTIVE DIRECTOR 499411 0 75000 0 20371 0 3500 0 21813 0 620095 0 0 0 TARA MORRIS CHIEF ADVANCEMENT OFFICER- 302825 0 1000 0 388 0 3500 0 12652 0 320365 0 0 0 GAIL BELTRONE CHIEF OPERATING OFFICER 299700 0 0 0 637 0 3500 0 487 0 304324 0 0 0 MAURICIO GARCIA CHIEF PROGRAM & ENGAGEMENT 195269 0 1000 0 187 0 3500 0 14827 0 214783 0 0 0 CECILIA ALEMANI CURATOR AND DIRECTOR OF HL ART 167536 0 1000 0 147 0 3500 0 12630 0 184813 0 0 0 RAY BAMIDELE OLADAPO-JOHNSON VICE PRESIDENT OF PARK OPERATIONS 154947 0 2000 0 310 0 3500 0 21159 0 181916 0 0 0 ASIMA JANSVELD VICE PRESIDENT OF THE HL NETWORK 146065 0 1000 0 174 0 3500 0 0 0 150739 0 0 0 JENNIFER PADAVIC SENIOR DIRECTOR OF ADMINISTRATION 145014 0 1000 0 91 0 3500 0 7989 0 157594 0 0 0 KRISTEN GELINAS SR DIR OF BUSINESS DEVELOPMENT 140209 0 1000 0 104 0 3500 0 7989 0 152802 0 0 0 PART I, LINE 4B THE ORGANIZATION MAINTAINS A 457(B) DEFERRED COMPENSATION PLAN FOR CERTAIN ELIGIBLE EMPLOYEES. $19,500 OF DEFERRED COMPENSATION EXPENSE WAS INCURRED IN 2020 AND THAT AMOUNT WAS CONTRIBUTED TO ROBERT HAMMOND'S PLAN. X 5 0 X 16 529000 FAIR MARKET VALUE 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 TWO BOARD MEMBERS, PHILIP AARONS AND MARIO PALUMBO, ARE PARTNERS IN THE SAME FOR-PROFIT CORPORATION. A THIRD BOARD MEMBER, GARY HANDEL, PROVIDES SERVICES TO THEIR CORPORATION. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS PREPARED BY THE CONTROLLER AND REVIEWED BY THE SENIOR DIRECTOR OF FINANCE. THE 990 IS THEN FORWARDED TO THE ORGANIZATION'S ACCOUNTING FIRM FOR FINAL REVIEW. THE SENIOR DIRECTOR OF FINANCE AND CONTROLLER PRESENT THE 990 TO THE AUDIT & FINANCE COMMITTEE OF THE BOARD. THE 990 IS THEN MADE AVAILABLE TO BOARD MEMBERS FOR REVIEW AT A BOARD MEETING BEFORE THE RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C TO ENSURE THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES ITS CONFLICTS OF INTEREST POLICY, EACH DIRECTOR, OFFICER AND MEMBER OF A COMMITTEE WITH POWERS DELEGATED BY THE BOARD SHALL ANNUALLY SIGN A STATEMENT THAT AFFIRMS SUCH PERSON: A) HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY; B) HAS READ AND UNDERSTANDS THE POLICY; C) HAS AGREED TO COMPLY WITH THE POLICY; D) HAS COMPLETED, REVIEWED OR UPDATED THEIR CONFLICT OF INTEREST DISCLOSURE E) UNDERSTANDS THAT FHL IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. THE AUDIT AND FINANCE COMMITTEE OVERSEES THE IMPLEMENTATION OF, AND COMPLIANCE WITH, FHL'S CONFLICTS OF INTEREST POLICY. UPON THE FIRST KNOWLEDGE BY AN INTERESTED PERSON THAT FHL OR THE BOARD OR A COMMITTEE THEREOF IS CONSIDERING OR HAS CONSIDERED A TRANSACTION, AGREEMENT OR OTHER ARRANGEMENT WITH AN ENTITY OR INDIVIDUAL IN WHICH THE INTERESTED PERSON HAS AN INTEREST, THE INTERESTED PERSON MUST DISCLOSE IN GOOD FAITH THE EXISTENCE OF, AND MATERIAL FACTS CONCERNING, HIS OR HER INTEREST TO THE AUDIT AND FINANCE COMMITTEE OF THE BOARD (THE "AUDIT COMMITTEE"). THE AUDIT COMMITTEE SHALL THEN DETERMINE, BY A VOTE OF NOT LESS THAN A MAJORITY OF THE MEMBERS OF THE AUDIT COMMITTEE PRESENT AT THE MEETING, WHETHER THE TRANSACTION, AGREEMENT OR OTHER ARRANGEMENT IS FAIR, REASONABLE AND IN THE BEST INTERESTS OF FHL AT THE TIME OF SUCH DETERMINATION AND SHALL MAKE A DECISION WHETHER TO ENTER INTO THE TRANSACTION, AGREEMENT OR OTHER ARRANGEMENT IN ACCORDANCE WITH SUCH DETERMINATION. WITH RESPECT TO ANY RELATED PARTY TRANSACTION IN WHICH AN INTERESTED PERSON OR HIS OR HER RELATED PARTIES HAS A SUBSTANTIAL FINANCIAL INTEREST, IN DETERMINING WHETHER THE TRANSACTION, AGREEMENT OR OTHER ARRANGEMENT IS FAIR, REASONABLE AND IN THE BEST INTERESTS OF FHL, THE AUDIT COMMITTEE SHALL REVIEW AVAILABLE INFORMATION REGARDING THE COST AND BENEFIT OF COMPARABLE ALTERNATIVE TRANSACTIONS, AGREEMENTS OR OTHER ARRANGEMENTS, IF ANY. FORM 990, PART VI, SECTION B, LINE 15 BEFORE THE START OF EACH FISCAL YEAR, THE ORGANIZATION'S COMPENSATION COMMITTEE COMPARES THE PROPOSED COMPENSATION OF EACH MEMBER OF THE EXECUTIVE TEAM WITH PEER NON-PROFIT ORGANIZATIONS. THE COMMITTEE ALSO EVALUATES EACH EXECUTIVE TEAM MEMBER'S PERFORMANCE TO ENSURE THAT PROPOSED ANNUAL INCREASES ARE APPROPRIATE. FORM 990, PART VI, SECTION C, LINE 19 BY WRITTEN REQUEST. FORM 990, PART XII, LINE 1: AMOUNTS REFLECTED IN THE 2020 FORM 990 FOR THE YEAR ENDED DECEMBER 31, 2020 HAVE BEEN ROUNDED TO THE NEAREST THOUSAND TO CONFORM WITH THE PRESENTATION IN FHL'S AUDITED FINANCIAL STATEMENTS.