2018-11-14T15:52:38-06:00 2017-12-31 271728945 PKF O'CONNOR DAVIES LLP 3001 SUMMER STREET 5TH FLOOR EAST STAMFORD CT 06905 990 2017-01-01 263618722 PENCILS OF PROMISE INCORPORATED PENC 2127773170 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 TANYA RAMOS CHIEF EXECUTIVE OFFICER 2127773170 2018-11-14 1 GARRETT M HIGGINS P00543209 2033232400 2018-11-14 65.51.112.58 2018-11-14 15:52:37 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 9616F4B14A694591D1E716C270910E6FA5556DA3 2017 2019-02-21 02:37:17Z TANYA RAMOS 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 11605397 0 X WWW.PENCILSOFPROMISE.ORG X 2008 CT AT POP, WE BELIEVE EVERY CHILD DESERVES ACCESS TO QUALITY EDUCATION. WE CREATE SCHOOLS, PROGRAMS AND GLOBAL COMMUNITIES AROUND THE COMMON GOAL OF EDUCATION FOR ALL. WE ACCOMPLISH THESE ACTIVITIES BY DEDICATING SIGNIFICANT AMOUNTS OF TIME, LABOR AND EFFORT RAISING MONEY IN THE U.S. THROUGH YOUTH AND PROFESSIONAL ENGAGEMENT PROGRAMS AND SPECIAL EVENTS. THE FUNDS RAISED ALLOW US TO INCREASE OUR DOMESTIC AND INTERNATIONAL REACH AND IMPACT. 8 7 51 23 0 0 8852814 11395025 0 0 408 144 -201463 -313866 8651759 11081303 274108 227577 0 0 3356590 3632859 0 0 1037850 4772919 4746964 8403617 8607400 248142 2473903 4959415 7420443 223899 337464 4735516 7082979 X AT POP, WE BELIEVE EVERY CHILD DESERVES ACCESS TO QUALITY EDUCATION. WE CREATE SCHOOLS, PROGRAMS AND GLOBAL COMMUNITIES AROUND THE COMMON GOAL OF EDUCATION FOR ALL. WE ACCOMPLISH THESE ACTIVITIES BY DEDICATING SIGNIFICANT AMOUNTS OF TIME, LABOR AND EFFORT RAISING MONEY IN THE U.S. THROUGH YOUTH AND PROFESSIONAL ENGAGEMENT PROGRAMS AND SPECIAL EVENTS. THE FUNDS RAISED ALLOW US TO INCREASE OUR DOMESTIC AND INTERNATIONAL REACH AND IMPACT.AT THE CONCLUSION OF 2016, WE HAVE BROKEN GROUND ON 386 SCHOOLS ACROSS THE FOUR COUNTRIES OF LAOS, GHANA, GUATEMALA AND NICARAGUA. OUR SCHOOLS ARE OPEN TO STUDENTS IN EACH COUNTRY AND THE STAGES OF PLANNING AND CONSTRUCTION ARE UNDERWAY IN SEVERAL NEW COMMUNITIES TO AID IN EXPANDING OUR REACH IN 2017. 0 0 3161950 THE FIRST OF OUR CORE PROGRAMS IS SCHOOLS BUILDS. WE PARTNER WITH LOCAL COMMUNITIES AND GOVERNMENTS TO IMPROVE THE STATE OF EDUCATION INFRASTRUCTURE IN COMMUNITIES. OUR SHORT TERM GOALS ARE TO ADDRESS THE NEED FOR IMPROVED INFRASTRUCTURE WITH OUR LONG TERM GOALS BEING TO IMPROVE STUDENT ATTENDANCE, PROGRESSION, AND TEST SCORES. THE BENEFICIARIES OF OUR SCHOOL BUILDING PROGRAM ARE PRIMARY SCHOOL STUDENTS CURRENTLY ATTENDING SCHOOL IN POOR QUALITY STRUCTURES AND PRIMARY SCHOOL TEACHERS CURRENTLY TEACHING IN POOR QUALITY STRUCTURES. THROUGH THE END OF 2017, WE HAVE BROKEN GROUND ON A TOTAL OF 450 SCHOOLS ACROSS OUR GEOGRAPHIES. 2516651 43231 OUR SECOND CORE PROGRAM IS TEACHER SUPPORT. WE SUPPORT TEACHER DEVELOPMENT THROUGH IN-SERVICE AND WORKSHOP TRAINING SESSIONS. OUR STAFF MEMBERS VISIT GOVERNMENT TEACHERS IN OUR COMMUNITIES TWICE PER MONTH TO AID IN LESSON PLANNING, METHODOLOGY TRAINING AND RAPPORT BUILDING WITH STUDENTS. TEACHERS ATTEND WORKSHOPS FOR GROUP TRAINING AND NETWORK BUILDING. WE USE A METHODOLOGY OF TEACHING THAT FOCUSES ON THE ENGAGEMENT OF THE STUDENT BECAUSE MORE ENGAGED STUDENTS PERFORM AT A HIGHER LEVEL. THE SHORT TERM GOALS OF OUR TEACHER SUPPORT PROGRAMS ARE: TO IMPROVE LESSON PLANNING BY ASSISTING TEACHERS IN THE CREATION AND USE LESSON PLANS; TO BUILD RAPPORT WITH STUDENTS BY ENCOURAGING TEACHERS TO ADOPT OUR INTERACTIVE METHODOLOGY TO BETTER ENGAGE STUDENTS; TO SUPPORT A PEER NETWORK OF TEACHERS THROUGH TEACHER TRAINING WORKSHOPS, AND; TO PROVIDE CLASSROOMS WITH TEACHING AND LEARNING MATERIALS. OUR LONG TERM GOAL IS TO INCREASE PRIMARY STUDENT SCORES IN LITERACY ACROSS ALL OUR GEOGRAPHIES. THE MAIN BENEFICIARIES OF OUR TEACHER SUPPORT PROGRAM ARE THE TEACHERS AND STUDENTS IN OUR SCHOOLS AND COMMUNITIES. THROUGH 2017, WE HAVE SUPPORTED 914 TEACHERS ACROSS LAOS, GUATEMALA AND GHANA. 762976 OUR THIRD CORE PROGRAM IS OUR WASH PROGRAM. WASH IS AN INTERNATIONALLY RECOGNIZED AND UTILIZED PROGRAM THAT IS DESIGNED TO PROVIDE ACCESS TO AND KNOWLEDGE ABOUT WATER, SANITATION, AND HYGIENE (WASH). UNICEF ADOPTED WASH IN 2005 AS THEIR PRIMARY INTERVENTION TO TACKLE HYGIENE NEEDS IN THE DEVELOPING WORLD; POP BEGAN WASH PRACTICES IN 2010 IN LAOS AND HAVE SINCE EXPANDED TO GUATEMALA AND GHANA. IN CARRYING OUT THIS PROGRAM, WE BUILD STUDENT AND TEACHER SANITATION FACILITIES (HAND WASHING STATIONS AND BATHROOMS) IN CONJUNCTION WITH CLASSROOM BUILDS. IN ADDITION, OUR STAFF MEMBERS VISIT CLASSES TWICE PER MONTH DURING THE SCHOOL YEAR TO TEACH LESSONS RELATED TO WATER, SANITATION AND HYGIENE. THE PRIMARY GOALS OF THIS PROGRAM ARE TO BUILD AND PROVIDE ACCESS TO QUALITY TOILETS, POTABLE WATER AND HAND WASHING STATIONS IN CONJUNCTION WITH POP SCHOOLS LACKING SUCH INFRASTRUCTURE. ADDITIONALLY, WE AIM TO INCREASE PROPER HYGIENIC AND SANITARY BEHAVIOR IN PRIMARY STUDENTS. 525830 184346 THE ORGANIZATION ALSO OPERATED A GLOBAL COMMUNITIES AND SCHOLARSHIP PROGRAM. 525830 184346 6967407 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 17 0 51 1 0 1 GH LA GT 0 0 0 1 1 0 0 0 0 X 8 7 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AR CA GA HI IL KS KY MD MA MI MN NH NJ NM NY NC ND OR PA RI SC TN UT VA WV WI FL X X X BRAD KARSON 2127773170 37 WEST 28TH STREET 3RD FLOOR NEW YORK NY 10001 KAREN HARRIS CHAIR (THRU 05/17/17) 5.00 X X 0 0 0 BRAD HAUGEN CHAIR (AS OF 05/2017) 1.00 X X 0 0 0 MICHAEL WEISS - TREASURER AND COO (09/2017 - 10/2017) 60.00 X X 13630 0 441 ROBERT HAMWEE SECRETARY 1.00 X X 0 0 0 GARY VAYNERCHUK DIRECTOR 1.00 X 0 0 0 CRAIG EFFRON DIRECTOR (THRU 05/2017) 1.00 X 0 0 0 LINDA RIEFLER DIRECTOR 1.00 X 0 0 0 RICHARD HEARN DIRECTOR 1.00 X 0 0 0 DOUGLAS KUBACH DIRECTOR 1.00 X 0 0 0 SARAH O'HAGAN DIRECTOR 1.00 X 0 0 0 HOPE TAITZ DIRECTOR (THRU 05/2017) 1.00 X 0 0 0 MEIGHAN STONE - DIR THRU 08/2017), CEO (AS OF 08/2017) 60.00 X X 70576 0 8037 TOM CASAZZONE COO (THRU 08/2017) 60.00 X 113762 0 27972 MICHAEL DOUGHERTY CEO (THRU 07/2017) 60.00 X 228361 0 21701 JULIETTE H CHO HEAD OF STRATEGIC RELATIONSHIPS 60.00 X 130152 0 4407 LESLIE ENGLE YOUNG CHIEF IMPACT OFFICER 60.00 X 124776 0 17602 NATALIE EBEL CHIEF MARKETING OFFICER 60.00 X 121559 0 22519 802816 0 102679 5 0 1 0 ADP TOTALSOURCE 10200 SUNSET DRIVE MIAMI FL 33173 PEO FEES 245508 1 1972095 9422930 1324844 11395025 144 144 205450 1972095 516271 -310821 -310821 4778 7823 -3045 -3045 11081303 0 0 -313722 43231 43231 184346 184346 484480 354793 42064 87623 2823083 2067391 245109 510583 50358 36878 4372 9108 192812 141200 16741 34871 82126 60142 7130 14854 245508 245508 28086 28086 66850 66850 82328 8401 72137 1790 122384 85469 36915 241211 120062 26228 94921 6297 4345 1952 320060 218753 33605 67702 582088 538976 21026 22086 17725 10562 3349 3814 114714 111140 1299 2275 35309 26288 2353 6668 SCHOOL CONSTRUCTION AND 2296730 2296730 SCHOOL SUSTAINABILITY C 165519 165519 OUTREACH 133825 5864 127961 PROGRAM MATERIALS 92009 92009 196321 155664 25930 14727 8607400 6967407 602143 1037850 2706963 4339811 51102 1046 1821078 2698505 4194 0 47601 49990 1069893 778802 298477 291091 30000 40000 4959415 7420443 123899 287464 100000 50000 223899 337464 X 2886235 4665893 1849281 2417086 4735516 7082979 4959415 7420443 X 2473903 -126440 X X 0 1 X 1 0 X 4176449 7637838 7904617 8802814 11395025 39916743 4176449 7637838 7904617 8802814 11395025 39916743 2707534 37209209 1037 568 580 408 144 2737 39919480 21771 0.93210 0.95470 X 683524 405482 278042 386369 373320 13049 291091 X 11125626 36500 7823 44323 11081303 0 11081303 8651723 36500 7823 44323 8607400 0 8607400 PART X, LINE 2: THE ORGANIZATION RECOGNIZES THE EFFECT OF TAX POSITIONS WHEN THEY ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE ORGANIZATION HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. THE ORGANIZATION IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B 7,823. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD REPORTED ON PART VIII, LINE 10B 7,823. 1 SUB-SAHARAN AFRICA 2 26 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 1476090 EAST ASIA AND THE PACIFIC 1 36 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 807420 CENTRAL AMERICA AND THE CARIBBEAN 3 45 PROGRAM SERVICES SCHOOL CONSTRUCTION, TEACHER TRAINING, W.A.S.H. 2391864 NORTH AMERICA GRANT TO RECIPENT LOCATED IN REGION 23745 SUB-SAHARAN AFRICA GRANT TO RECIPENT LOCATED IN REGION 35618 CENTRAL AMERICA AND THE CARIBBEAN GRANT TO RECIPENT LOCATED IN REGION 83605 EAST ASIA AND THE PACIFIC GRANT TO RECIPENT LOCATED IN REGION 41378 6 107 0 0 6 107 4859720 0 4859720 NORTH AMERICA TO SUPPORT EXISTING SCHOOLS IN NICARAGUA 23745 WIRE TRANSFER 0 1 0 SCHOLARSHIP SUB-SAHARAN AFRICA 12 35618 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING 0 SCHOLARSHIP CENTRAL AMERICA AND THE CARIBBEAN 317 83605 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING 0 SCHOLARSHIP EAST ASIA AND THE PACIFIC 714 41378 DIRECT PAYMENTS TO THE SCHOOLS THE STUDENTS ARE ATTENDING 0 0 0 0 0 0 0 PART I, LINE 2: ALL GRANTS AND ASSISTANCE ISSUED TO PARTNERING ORGANIZATIONS UNDERGO THE SAME SCRUTINY AS IF OUR ORGANIZATION CARRIED OUT THE SERVICE DIRECTLY. WE ENSURE THAT THE PARTNER ORGANIZATION'S MISSION ALIGNS WITH OUR ORGANIZATION'S MISSION AND THAT THE SERVICES PROVIDED WILL BE PROVIDED EFFICIENTLY AND WITH THE MOST IMPACT. ONCE THE FUNDS ARE ISSUED TO THE ORGANIZATION, THE GRANT UNDERGOES QUARTERLY REPORTING WHERE THE GRANTEE ISSUES BOTH QUANTITATIVE AND QUALITATIVE REPORTS TO OUR ORGANIZATION IN ORDER TO ACCURATELY MONITOR AND MEASURE THE IMPACT THAT OUR FUNDS ARE HAVING IN THE REGIONS WE WORK IN. PART I, LINE 3: THE ORGANIZATION USES THE ACCRUAL METHOD TO ACCOUNT FOR EXPENDITURES. GALA 2177545 1972095 205450 97459 49553 338961 30298 2177545 1972095 205450 97459 49553 338961 30298 516271 -310821 1 WORLDREADER 2030 1ST AVENUE SUITE 300 SEATTLE WA 98121 272092468 501(C)(3) 43231 E-READERS FOR TEACHERS AND STUDENTS 1 0 PART I, LINE 2: ALL GRANTS AND ASSISTANCE ISSUED TO PARTNERING ORGANIZATIONS UNDERGO THE SAME SCRUTINY AS IF OUR ORGANIZATION CARRIED OUT THE SERVICE DIRECTLY. WE ENSURE THAT THE PARTNER ORGANIZATION'S MISSION ALIGNS WITH OUR ORGANIZATION'S MISSION AND THAT THE SERVICES PROVIDED WILL BE PROVIDED EFFICIENTLY AND WITH THE MOST IMPACT. ONCE THE FUNDS ARE ISSUED TO THE ORGANIZATION, THE GRANT UNDERGOES QUARTERLY REPORTING WHERE THE GRANTEE ISSUES BOTH QUANTITATIVE AND QUALITATIVE REPORTS TO OUR ORGANIZATION IN ORDER TO ACCURATELY MONITOR AND MEASURE THE IMPACT THAT OUR FUNDS ARE HAVING IN THE REGIONS WE WORK IN. X X X X X 1 0 0 0 0 0 0 1 0 MICHAEL DOUGHERTY CEO (THRU 07/2017) 161997 0 37683 0 28681 0 5050 0 16651 0 250062 0 0 0 PART I, LINE 4A MICHAEL DOUGHERTY RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $26,923 INCLUDED IN HIS 2017 W-2. PART I, LINE 7 MICHAEL DOUGHERTY RECEIVED A DISCRETIONARY BONUS IN THE AMOUNT OF $37,683 INCLUDED IN HIS 2017 W-2. TOM CASAZZONE RECEIVED A DISCRETIONARY BONUS IN THE AMOUNT OF $11,000 INCLUDED IN HIS 2017 W-2. X 9 328844 AVG. SELLING PRICE X BITCOIN 1 1000000 AVG. SELLING PRICE 0 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION HAS CONTRACTED WITH ADP TOTALSOURCE, INC. A PROFESSIONAL EMPLOYER ORGANIZATION TO PROVIDE PAYROLL AND HUMAN RESOURCES SERVICES. THE OFFICERS AND HIGHEST COMPENSATED EMPLOYEES LISTED IN PART VII RECEIVED A W-2 FROM TOTAL SOURCE. TOTAL SOURCE WAS PAID $245,508 FOR ITS SERVICES. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS MADE AVAILABLE TO ALL MEMBERS OF THE BOARD OF DIRECTORS. POP'S CHIEF OPERATING OFFICER, IN COLLABORATION WITH THE FINANCE & GOVERNANCE COMMITTEE, IS TASKED WITH OVERSEEING THE AUDIT PROCESS AND THE DRAFTING OF FORM 990 IN CONJUNCTION WITH AN INDEPENDENT ACCOUNTING FIRM. ALL MEMBERS OF THE COMMITTEE, THE CHIEF EXECUTIVE OFFICER, AND OTHER KEY EMPLOYEES OF THE ORGANIZATION ARE PROVIDED WITH A DRAFT OF THE AUDITED FINANCIAL STATEMENTS AND FORM 990 FOR REVIEW, COMMENT AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY APPLIES TO ALL EMPLOYEES, BOARD MEMBERS AND OFFICERS OF THE ORGANIZATION. EACH PERSON IS ASKED TO READ THE POLICY (INCLUDED SEPARATELY AS A POLICY OR WITHIN THE ORGANIZATION'S EMPLOYEE HANDBOOK) EACH YEAR AND SIGN AN AFFIRMATION STATEMENT REGARDING THE POLICY. SHOULD A CONFLICT ARISE, THEY ARE BROUGHT TO THE ATTENTION OF THE VP OF FINANCE (WHEN AN EMPLOYEE IS INVOLVED) AND THE SECRETARY OF THE BOARD OF DIRECTORS (WHEN A BOARD MEMBER OR OFFICER IS INVOLVED) AND BOTH ARE DISCUSSED AT THE BOARD LEVEL TO DECIDE THE PROPER COURSE OF ACTION. THERE ARE QUARTERLY CONFLICTS CHECKS ADMINISTERED BY THE VP OF FINANCE TO EMPLOYEES AND BY THE CHAIRMAN OF THE BOARD TO BOARD MEMBERS. AT THE START OF EACH BOARD MEETING, THE CHAIR ASKS IF THERE ARE ANY CONFLICTS. IF THERE ARE, THE MEMBER RAISES THE CONFLICT AND A DISCUSSION ENSUES REGARDING WHETHER OR NOT IT RISES TO THE LEVEL OF A CONFLICT THAT THE ORGANIZATION SHOULD NOT PURSUE. A FINAL DECISION IS MADE BY MEMBERS OF THE BOARD PRESENT, EXCLUDING THE CONFLICTED BOARD MEMBER. THE BOARD HAS AN ATTORNEY ON RETAINER WHO THEY CONSULT WITH IF NEEDED. SIMILAR DISCLOSURES AND PROCEDURES ARE USED FOR EMPLOYEES WITH POTENTIAL CONFLICTS AND THAT IS ADMINISTERED BY THE VP OF FINANCE, WITH COUNSEL FROM THE BOARD CHAIR IF NEEDED. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS INCLUDES ALL OF THESE ELEMENTS: (1) REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP; (2) USE OF DATA AS TO COMPARABLE COMPENSATION; AND (3) CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING. THIS POLICY APPLIES TO DETERMINE THE COMPENSATION OF OUR CHIEF EXECUTIVE OFFICER AND FOUNDER. REVIEW AND APPROVAL - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP, PROVIDED THAT PERSONS WITH CONFLICTS OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENT AT ISSUE ARE NOT INVOLVED IN THIS REVIEW AND APPROVAL. USE OF DATA AS TO COMPARABLE COMPENSATION - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED USING DATA AS TO COMPARABLE COMPENSATION FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS. CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING - THERE IS CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING WITH RESPECT TO THE DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENT. THE VP OF FINANCE'S COMPENSATION IS DETERMINED IN A SIMILAR FASHION. HOWEVER, THE CEO CONTROLS THE FINAL DECISION OF THE VP'S COMPENSATION AND THE BOARD DECIDES WHETHER TO SUPPORT THE CEO'S RECOMMENDATION. THE LAST COMPENSATION REVIEW PROCESS WAS UNDERTAKEN IN 2017. FORM 990, PART VI, SECTION C, LINE 19 ALL OF OUR ANNUAL FINANCIAL STATEMENTS AND FORM 990 ARE MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE. FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, FORM 990 AND FORM 1023 ARE MADE AVAILABLE FOR PUBLIC VIEWING UPON WRITTEN REQUEST AT PENCILS OF PROMISE INCORPORATED'S HEADQUARTERS LOCATED AT 37 WEST 28TH STREET, 3RD FLOOR, NEW YORK, NY 10001. FORM 990 IS AVAILABLE ON WWW.GUIDESTAR.ORG, WWW.CHARITYNAVIGATOR.ORG,AND WWW.ERI-NONPROFIT-SALARIES.COM. THE FORM 990 AND ANNUAL FINANCIAL STATEMENT IS AVAILABLE ON WWW.CHARITIESNYS.COM. FORM 990, PART XI, LINE 9: LOSS ON FOREIGN CURRENCY EXCHANGE -1,440. LOSS FOR UNCOLLECTIBLE PLEDGES RECEIVABLE -125,000. FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.