2017-11-14T14:58:34-06:00 2016-12-31 131655065 LUTZ AND CARR CPAS LLP 551 FIFTH AVENUE SUITE 400 NEW YORK NY 10176 990 2016-01-01 311734086 FRIENDS OF THE HIGH LINE INC FRIE 2122069922 820 WASHINGTON STREET NEW YORK NY 100141406 ROBERT HAMMOND EXECUTIVE DIRECTOR 2122069922 2017-10-11 1 FREDERICK MARTENS P00298107 2126972299 38.142.140.186 2017-10-11 11:36:11 ED P 1E93C914C15040D0F9CA6C26F5286852340997B0 CEB0681F86DA04FC094E5AAB11F791514B9B38D1 2016 2021-01-29 14:40:06Z ROBERT HAMMOND 820 WASHINGTON STREET NEW YORK NY 100141406 35166701 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. 42 40 213 193 135996 11976 18102479 14168068 415600 910341 977598 531051 2341758 3352552 21837435 18962012 0 0 0 0 8568429 9168216 309685 266478 2979100 5601737 7181009 14479851 16615703 7357584 2346309 98388383 103386090 1460591 2009484 96927792 101376606 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. 1 0 4127958 0 463653 HIGH LINE OPERATIONS:IN 2016, FRIENDS OF THE HIGH LINE (FHL) SUCCESSFULLY OPERATED AND MAINTAINED THE PARK, FROM GANSEVOORT STREET TO WEST 34TH STREET. FHL CONTINUED TO FOCUS ON MAINTENANCE, CLEANLINESS AND SAFETY TO ENHANCE THE VISITOR EXPERIENCE. VISITATION WAS APPROXIMATELY 7.8 MILLION PEOPLE. IN ORDER TO APPROPRIATELY MANAGE THE GARDENS, THE HORTICULTURE TEAM PLANTED 8,000 PERENNIALS AND GRASSES, 9,850 BULBS, AND 83 TREES AND SHRUBS. THE FACILITIES TEAM OPERATED AND MAINTAINED ALL MECHANICAL, ELECTRICAL, AND PLUMBING INFRASTRUCTURE OF THE PARK, INCLUDING THE HIGH LINE HEADQUARTERS (HLHQ) AT 820 WASHINGTON STREET. THE CUSTODIAL SERVICES TEAM POWER WASHED THE HIGH LINE SEVERAL TIMES DURING THE SUMMER MONTHS TO CORRECT STAIN CONDITIONS. 3116615 0 78954 HIGH LINE PLANNING, CONSTRUCTION AND CAPITAL REPAIRS:IN 2016, FHL CONTINUED TO WORK ON SEVERAL LARGE-SCALE CAPITAL CONSTRUCTION PROJECTS, ADVANCED THE DESIGN PHASES FOR ADDITIONAL LARGE-SCALE PROJECTS, MANAGED A VARIETY OF CAPITAL IMPROVEMENTS ON THE EXISTING HIGH LINE AND IMPLEMENTED ADVOCACY EFFORTS FOCUSING ON STRATEGIC URBAN PLANNING INITIATIVES.DESIGN ON PHASE II OF SECTION 3 WAS COMPLETED MID-YEAR AND THE PROJECT WAS BID OUT TO CONTRACTORS BY NYCEDC IN THE LATTER PART OF 2016. CONSTRUCTION WORK WILL BEGIN IN 2017. THIS IS THE LAST PIECE OF THE HIGH LINE CURRENTLY NOT ACCESSIBLE TO THE PUBLIC AND IS SCHEDULED TO OPEN IN MID-2018.FHL ALSO ADVANCED THE CONCEPT DESIGN FOR THE 18TH STREET PLAZA, THE FIRST AT-GRADE PARK SPACE CONNECTED TO THE HIGH LINE. THIS WORK WILL CONTINUE IN 2017.FHL STARTED AND COMPLETED MANY CRITICAL CAPITAL PROJECTS ON BOTH THE HIGH LINE AND HLHQ BUILDING. SIGNIFICANT CAPITAL PROJECTS INCLUDED THE INSTALLATION OF PLANT BED PROTECTIONS ON ALL THREE SECTIONS ON THE HIGH LINE, REPAIRS TO BOTH CONCRETE WALKING SURFACES AND BONDED AGGREGATE PAVING MATERIAL IN SECTION 1 OF THE HIGH LINE AND THE RECONFIGURATION OF THE CONCRETE PAVERS AND PLANTING AT THE 16TH STREET ENTRY. FHL MODIFIED THE FIRST FLOOR GARAGE SPACE TO ACCOMMODATE A NEW TRASH COMPACTOR, ALLOWING FOR INCREASED EFFICIENCY OF WASTE REMOVAL FROM THE PARK. 2698263 0 70853 ART, PROGRAMMING AND EDUCATION:IN 2016, FHL PRODUCED PROJECTS WITH 35 ARTISTS, INCLUDING 6 VIDEO PROGRAMS, 3 ART PERFORMANCES, AND 13 NEW COMMISSIONS. FURTHERMORE, FHL LAUNCHED THE HIGH LINE PLINTH PROGRAM, SOLICITING PROPOSALS FOR THE PROJECT FROM OVER 50 ARTISTS FROM AROUND THE WORLD. FHL CONTINUED TO IMPROVE MEDIA OUTREACH, SECURING MAJOR PRESS COVERAGE AND CREATING A STRONG IDENTITY IN SOCIAL MEDIA.FHL WELCOMED OVER 45,000 VISITORS TO OVER 400 SCHEDULED PROGRAMS AND ACTIVITIES. PROGRAMS INCLUDED 162 GUIDED FIELD TRIPS SERVED 4,770 ADULTS AND CHILDREN, MONTHLY PROGRAMMING FOR FAMILIES FROM APRIL THROUGH OCTOBER SERVED OVER 4,691 KIDS AND CAREGIVERS, AND THE NEWLY INTRODUCED SUMMER CAMP PROGRAM SERVED AN ADDITIONAL 1,260 KIDS. PROGRAMMING INCLUDED PERFORMANCES, ART-MAKING ACTIVITIES, AND MUCH MORE. IN ADDITION, TEEN PROGRAMS PROVIDED EMPLOYMENT FOR 28 LOCAL TEENAGERS AND ENGAGED OVER 1,400 NEW YORK CITY YOUTH THROUGH TWO TEEN NIGHTS. FHL ALSO WORKED WITH 193 VOLUNTEERS WHO WORKED OVER 5,841 HOURS AS DOCENTS, GREETERS, HORTICULTURAL ASSISTANTS, PLAY PARTNERS, AMBASSADORS, AND PHOTOGRAPHERS. 2152408 0 996425 COMMUNICATIONS, EXPENSES: 1,243,675, REVENUE: -0-RETAIL, VENUE RENTALS AND CONCESSIONS, EXPENSES: 908,733, REVENUE: 860,429 2152408 0 996425 12095244 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 1 1 0 0 0 0 0 0 0 0 1 139 0 213 1 1 1 0 0 0 0 1 1 0 0 0 0 X 42 40 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY CT NJ X MARK QUINN VICE PRESIDENT OF FINANCE 2122069922 820 WASHINGTON STREET NEW YORK NY 100141406 ROBERT HAMMOND CO-FOUNDER & EXECUTIVE DIRECTOR 40.00 X X 462779 0 112087 CATHERINE C MARRON CHAIR 5.00 X X 0 0 0 MARIO J PALUMBO JR CO-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 ACKMAN MEMBER 1.00 X 0 0 0 JENNIFER ALLAN SOROS MEMBER 1.00 X 0 0 0 JOHN H ALSCHULER JR CHAIR EMERITUS 1.00 X 0 0 0 BRUCE A BEAL 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 JAMES CAPALINO MEMBER 1.00 X 0 0 0 R MARTIN CHAVEZ 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 LISA MARIA FALCONE 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 J TOMILSON HILL MEMBER 1.00 X 0 0 0 HERMINE RIEGERL HELLER MEMBER 1.00 X 0 0 0 SANDRA JACKSON-DUMONT MEMBER 1.00 X 0 0 0 STEFAN KALUZNY 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 STEPHEN MACK MEMBER 1.00 X 0 0 0 HEATHER MCDOWELL LEVIN 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 MITCHELL SILVER FAICP MEMBER 1.00 X 0 0 0 ELIZABETH W SMITH MEMBER 1.00 X 0 0 0 JON STRYKER 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 JULIE TWITMYER CHIEF OPERATING OFFICER 40.00 X 152661 0 7153 MARK QUINN VP OF FINANCE & ASSISTANT TREASURER 40.00 X 121175 0 20276 SANAYA KAUFMAN VICE PRESIDENT OF DEVELOPMENT 40.00 X 164426 0 18044 GONZALO CASALS VP OF PUBLIC PROGRAMS & COMMUNITY ENGAGEMENT 40.00 X 145983 0 9893 ADAM GANSER VICE PRESIDENT FOR PLANNING & DESIGN 40.00 X 142886 0 24595 CECILIA ALEMANI CURATOR AND DIRECTOR OF HL ART 40.00 X 134538 0 16219 KIRK LOVE CHIEF DIGITAL STRATEGIST 40.00 X 132524 0 23295 MARTIN NEMBHARD VICE PRESIDENT OF PARK OPERATIONS 40.00 X 130984 0 17446 1587956 0 249008 15 0 1 0 JAMES CORNER FIELD OPERATIONS 475 TENTH AVE 9TH FLOOR NEW YORK NY 10018 DESIGN 1769853 BITEFOOD LTD 126 UNDERCLIFF AVENUE EDGEWATER NJ 07020 EVENT CATERING 462685 NYC DEPT OF PARKS AND RECREATION 1234 5TH AVENUE 233 NEW YORK NY 10029 PARK SECURITY 216445 MKDM 612 E JEFFERSON STREET CHARLOTTESVILLE VA 22902 FUNDRAISING CONSULTING 216224 L&M SOUND & LIGHT 145 GRANITE AVENUE STATEN ISLAND NY 10303 EVENT SERVICES 206342 9 3983910 248314 9935844 1514466 14168068 MAINTENANCE AND IMPROVEMENTS FEES 713990 507607 507607 SUBLICENSING CONCESSION INCOME 713990 347719 347719 FIELD TRIPS AND WALKING TOURS 713990 55015 55015 910341 1056614 1056614 2653008 0 2653008 2653008 2653008 14144580 14670143 -525563 -525563 -525563 999778 3983910 999778 0 1177374 534768 642606 506610 135996 OTHER REVENUE 900099 56938 56938 56938 18962012 1473889 135996 3184059 966893 240655 422992 303246 6715838 5107953 543385 1064500 138302 98983 13934 25385 811335 678714 31591 101030 535848 377561 66759 91528 20722 7579 13143 46169 46169 266478 266478 97957 97957 1022941 640273 53955 328713 199749 109094 9977 80678 79290 65164 830 13296 91460 56925 23528 11007 433234 181353 43590 208291 271432 204394 16615 50423 69526 52410 7053 10063 HIGH LINE CONSTRUCTION 2368052 2368052 ART PRODUCTION 538946 538946 SUPPLIES 506791 375420 38973 92398 UBI TAX EXPENSE 450 450 1434290 991768 110458 332064 16615703 12095244 1541359 2979100 1232405 3263546 4345044 2581366 25204446 24276080 417294 428777 469912 256499 1351756 699277 768150 652479 59545197 64982175 6331346 6867679 74589 77489 98388383 103386090 1241450 1306035 72520 522141 146621 181308 1460591 2009484 X 66616228 69820048 25129425 25775919 5182139 5780639 96927792 101376606 98388383 103386090 2346309 2102505 0 X 0 1 X 1 0 X 28839790 30017686 16812986 18102479 14168068 107941009 28839790 30017686 16812986 18102479 14168068 107941009 37297989 70643020 949558 1094440 738409 2290195 3709622 8782224 2449 12976 15425 116738658 6843491 0.60510 0.51730 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 9253 0 0 9253 0 PART II-B, LINE 1: IN 2016, 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. 34829904 3505000 2166279 40501183 29668788 6283139 -546287 575736 34829904 22360974 7175000 455427 322613 29668788 12300040 8509500 1551434 22360974 4930990 6572000 797050 12300040 0.86420 0.12840 0.00740 0 0 892510 484075 408435 459246 215202 244044 652479 HEDGE FUNDS 4715947 F PRIVATE EQUITY FUNDS 2151732 F 6867679 REFUNDABLE DEPOSITS PAYABLE 26500 SECTION 457 RETIREMENT PLAN PAYABLE 154808 181308 21283759 2102505 317199 2419704 18864055 97957 97957 18962012 16834945 317199 317199 16517746 97957 97957 16615703 PART V, LINE 4: THE ENDOWMENT FOR SUSTAINABILITY WILL BE 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 WILL BE USED TO SUPPORT THE HORTICULTURE CARE AND GENERAL MAINTENANCE OF THE PUBLIC PARK ON THE HIGH LINE. THE PUBLIC PROGRAMS FUND WILL BE 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 WILL BE USED TO SUSTAIN THE PARK'S LONG-TERM MAINTENANCE AND OPERATIONS. X X X X X X 1 MKDM 612 EAST JEFFERSON STREET CHARLOTTESVILLE VA 22902 DIRECT RESPONSE STRATEGY COUNSEL 0 1349619 170342 1158731 SUSAN COURTEMANCHE 40 POWDER HORN HILL ROAD WILTON CT 06897 GENERAL FUNDRAISING COUNSEL 0 0 96136 0 1349619 266478 1158731 NY CT NJ BENEFIT DINNER 3680431 2984957 695474 341763 321590 650 31471 ART DINNER 870313 682263 188050 79189 90928 12315 5618 1 432944 316690 116254 14115 101853 286 4983688 3983910 999778 435067 514371 12965 37375 999778 0 X X X X X X 0 1 0 0 0 0 0 0 0 ROBERT HAMMOND CO-FOUNDER & EXECUTIVE DIRECTOR 352752 0 91667 0 18360 0 103000 0 9087 0 574866 0 91667 0 JULIE TWITMYER CHIEF OPERATING OFFICER 149458 0 3000 0 203 0 3000 0 4153 0 159814 0 0 0 SANAYA KAUFMAN VICE PRESIDENT OF DEVELOPMENT 159296 0 5000 0 130 0 3000 0 15044 0 182470 0 0 0 GONZALO CASALS VP OF PUBLIC PROGRAMS & COMMUNITY EN 142869 0 3000 0 114 0 3000 0 6893 0 155876 0 0 0 ADAM GANSER VICE PRESIDENT FOR PLANNING & DESIGN 139715 0 3000 0 171 0 3000 0 21595 0 167481 0 0 0 CECILIA ALEMANI CURATOR AND DIRECTOR OF HL ART 131446 0 3000 0 92 0 3000 0 13219 0 150757 0 0 0 KIRK LOVE CHIEF DIGITAL STRATEGIST 127384 0 5000 0 140 0 3000 0 20295 0 155819 0 0 0 PART I, LINE 4B THE ORGANIZATION MAINTAINS A 457(B) DEFERRED COMPENSATION PLAN FOR CERTAIN ELIGIBLE EMPLOYEES. $18,000 OF DEFERRED COMPENSATION EXPENSE WAS INCURRED IN 2016 AND THAT AMOUNT WAS CONTRIBUTED TO ROBERT HAMMOND'S PLAN. PART II: ROBERT HAMMOND RECEIVED AN ANNUAL BONUS PAYMENT OF $100,000 FOR SERVICES PERFORMED AS EXECUTIVE DIRECTOR IN 2016. THE BONUS WAS PAID IN JANUARY 2017. VAN WYCK & VAN WYCK COMPANY OWNED BY BOARD MEMBER, BRONSON VAN WYCK 168910 RENTALS, DECOR, AND OTHER EXPENSES RELATED TO SPECIAL EVENTS 0 X 10 1514466 FAIR MARKET VALUE 0 0 0 0 FORM 990, PART III, LINE 2 FHL CREATED THE HIGH LINE NETWORK, A GROUP OF INFRASTRUCTURE REUSE PROJECTS ACROSS THE UNITED STATES, TO FORMALIZE THE FIELD AND BEGIN TO DEVELOP BEST PRACTICES AROUND THESE PUBLIC SPACE INITIATIVES. IN 2016, FRIENDS OF THE HIGH LINE DEVELOPED AN INTERNAL DATABASE OF OVER 100 INFRASTRUCTURE REUSE PROJECTS ACROSS THE WORLD, ESTABLISHED AND CONVENED A NATIONAL NETWORK OF PROJECTS, AND HIRED A DIRECTOR TO LEAD THIS INITIATIVE. ADDITIONALLY, WE BEGAN WORK ON A WEBSITE FOR THE HIGH LINE NETWORK AND ORGANIZED TWO ISSUE-FOCUSED CONVENINGS IN WASHINGTON, D.C. AND TORONTO AROUND THE TOPICS OF EQUITABLE DEVELOPMENT AND IMPACT MEASUREMENT. 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 ORGANIZATION'S CONTROLLER AND REVIEWED BY THE VICE PRESIDENT OF FINANCE. THE 990 IS THEN FORWARDED TO THE ORGANIZATION'S ACCOUNTING FIRM FOR FINAL REVIEW. THE 990 IS PRESENTED TO THE AUDIT & FINANCE COMMITTEE OF THE BOARD BY THE CONTROLLER. 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 IX: STATEMENT OF FUNCTIONAL EXPENSES SUMMARY OF OPERATING AND CAMPAIGN EXPENSES OPERATING PROGRAM SERVICE EXPENSES: $9,050,519 OPERATING MANAGEMENT AND GENERAL EXPENSES: 1,541,359 OPERATING FUNDRAISING EXPENSES: 2,414,754 TOTAL OPERATING EXPENSES: $13,006,632 CAMPAIGN CONSTRUCTION AND PLANNING EXPENSES: $3,044,725 CAMPAIGN FUNDRAISING EXPENSES: 564,346 TOTAL CAMPAIGN EXPENSES: $3,609,071 TOTAL FUNCTIONAL EXPENSES, PART IX, LINE 25: $16,615,703