SPENDLOVE MEDICAL RESEARCH INSTITUT: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: SPENDLOVE MEDICAL RESEARCH INSTITUT (EIN 20-3860924)
Tax period: 2011-01-01 to 2011-12-31
Filed: 2012-09-17
IRS object ID: 201242619349301114
Schema version: 2011v1.2
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule A
Schedule B
Schedule C
Schedule D
Schedule J
Schedule L
Schedule O

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2012-09-17T04:00:00-06:00	Timestamp
Tax Period End Date	2011-12-31	TaxPeriodEndDate

Preparer Firm PreparerFirm

Preparer Firm Business Name PreparerFirmBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	PAUL B WINTER CPA	BusinessNameLine1

Preparer Firm US Address PreparerFirmUSAddress

Field	Value	IRS element (for citing)
Address Line1	12985 N 1200 E	AddressLine1
City	COVE	City
State	UT	State
ZIP Code	84320	ZIPCode

Field	Value	IRS element (for citing)
Return Type	990	ReturnType
Tax Period Begin Date	2011-01-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	203860924	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	SPENDLOVE MED RESEARCH INSTITUTE	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	SPEN	NameControl
Phone	4357500959	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	365 NORTH 600 WEST	AddressLine1
City	Logan	City
State	UT	State
ZIP Code	84321	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	PAUL B WINTER	Name
Title	TREASURER	Title
Phone	4357500959	Phone
Date Signed	2012-09-14	DateSigned

Preparer Preparer

Field	Value	IRS element (for citing)
Name	Paul B Winter	Name
Phone	4358811995	Phone
Date Prepared	2012-09-17	DatePrepared
Self Employed	X	SelfEmployed

Field	Value	IRS element (for citing)
Tax Year	2011	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Doing Business As DoingBusinessAs

Field	Value	IRS element (for citing)
Business Name Line1	SMRI	BusinessNameLine1

Name Of Principal Officer Business NameOfPrincipalOfficerBusiness

Field	Value	IRS element (for citing)
Business Name Line1	SPENDLOVE MEDICAL RESEARCH INSTITUTE	BusinessNameLine1

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	365 NORTH 600 WEST	AddressLine1
City	Logan	City
State	UT	State
ZIP Code	84321	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	318647	GrossReceipts
Group Return For Affiliates	false	GroupReturnForAffiliates
All Affiliates Included	false	AllAffiliatesIncluded
Organization501c3	X	Organization501c3
Web Site	N/A	WebSite
State Legal Domicile	UT	StateLegalDomicile
Activity Or Mission Description	TO CONDUCT MEDICAL RESEARCH DEVOTED TO THE UNDERSTANDING OF DISEASES AND FUNCTIONS OF THE HUMAN BODY	ActivityOrMissionDescription
Nbr Voting Members Governing Body	7	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	3	NbrIndependentVotingMembers
Total Nbr Employees	4	TotalNbrEmployees
Total Gross UBI	0	TotalGrossUBI
Contributions Grants Current Year	240140	ContributionsGrantsCurrentYear
Program Service Revenue CY	0	ProgramServiceRevenueCY
Investment Income Current Year	6715	InvestmentIncomeCurrentYear
Other Revenue Prior Year	72372	OtherRevenuePriorYear
Other Revenue Current Year	70342	OtherRevenueCurrentYear
Total Revenue Prior Year	72372	TotalRevenuePriorYear
Total Revenue Current Year	317197	TotalRevenueCurrentYear
Grants And Similar Amnts CY	0	GrantsAndSimilarAmntsCY
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	135780	SalariesEtcPriorYear
Salaries Etc Current Year	110693	SalariesEtcCurrentYear
Total Prof Fundrsng Exp CY	0	TotalProfFundrsngExpCY
Total Fundrsng Exp Current Year	0	TotalFundrsngExpCurrentYear
Other Expense Prior Year	57804	OtherExpensePriorYear
Other Expenses Current Year	62636	OtherExpensesCurrentYear
Total Expenses Prior Year	193584	TotalExpensesPriorYear
Total Expenses Current Year	173329	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	-121212	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	143868	RevenuesLessExpensesCY
Total Assets BOY	169176	TotalAssetsBOY
Total Assets EOY	362996	TotalAssetsEOY
Total Liabilities BOY	337759	TotalLiabilitiesBOY
Total Liabilities EOY	387711	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	-168583	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	-24715	NetAssetsOrFundBalancesEOY
Mission Description	TO CONDUCT MEDICAL RESEARCH DEVOTED TO THE UNDERSTANDING OF DISEASES AND FUNCTIONS OF THE HUMAN BODY	MissionDescription
Expense	57123	Expense
Revenue	240140	Revenue
Description	CONDUCT MEDICAL RESEARCH DEVOTED TO THE UNDERSTANDING OF DISEASES AND FUNCTIONS OF THE HUMAN BODY.	Description
Total Program Service Expense	57123	TotalProgramServiceExpense
Described In501 C3	true	DescribedIn501C3
Schedule B Required	true	ScheduleBRequired
Political Activities	false	PoliticalActivities
Lobbying Activities	false	LobbyingActivities
Donor Advised Funds	false	DonorAdvisedFunds
Conservation Easements	false	ConservationEasements
Collections Of Art	false	CollectionsOfArt
Credit Counseling	false	CreditCounseling
Term Or Permanent Endowments	false	TermOrPermanentEndowments
Report Land Bldg Equip	true	ReportLandBldgEquip
Report Invest Oth Securities	true	ReportInvestOthSecurities
Report Prog Rel Invest	false	ReportProgRelInvest
Report Other Assets	true	ReportOtherAssets
Report Other Liabilities	true	ReportOtherLiabilities
Report Fin48 Footnote	false	ReportFin48Footnote
Independent Audit Financial Stmt	false	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	false	ConsolidatedAuditFinancialStmt
School	false	School
Foreign Office	false	ForeignOffice
Foreign Activities	false	ForeignActivities
More Than5000 K To Organizations	false	MoreThan5000KToOrganizations
More Than5000 K To Individuals	false	MoreThan5000KToIndividuals
Professional Fundraising	false	ProfessionalFundraising
Fundraising Activities	false	FundraisingActivities
Gaming	false	Gaming
Hospital	false	Hospital
Grants To Organizations	false	GrantsToOrganizations
Grants To Individuals	false	GrantsToIndividuals
Schedule J Required	true	ScheduleJRequired
Tax Exempt Bonds	false	TaxExemptBonds
Excess Benefit Transaction	false	ExcessBenefitTransaction
Prior Excess Benefit Transaction	false	PriorExcessBenefitTransaction
Loan To Officer Or DQP	true	LoanToOfficerOrDQP
Grant To Related Person	false	GrantToRelatedPerson
Bsnss Rltnshp With Organization	false	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	false	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	false	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	false	DeductibleNonCashContributions
Deductible Contributions Of Art	false	DeductibleContributionsOfArt
Terminated	false	Terminated
Partial Liquidation	false	PartialLiquidation
Disregarded Entity	false	DisregardedEntity
Related Entity	false	RelatedEntity
Related Org Controlled Entity	false	RelatedOrgControlledEntity
Transaction Related Entity	false	TransactionRelatedEntity
Activities Conducted Partnership	false	ActivitiesConductedPartnership
Schedule O Required	false	ScheduleORequired
Number Forms Transmitted With1096	1	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Number Of Employees	4	NumberOfEmployees
Employment Tax Returns Filed	true	EmploymentTaxReturnsFiled
Unrelated Business Income	false	UnrelatedBusinessIncome
Foreign Financial Account	false	ForeignFinancialAccount
Prohibited Tax Shelter Trans	false	ProhibitedTaxShelterTrans
Taxable Party Notification	false	TaxablePartyNotification
Non Deductible Contributions	false	NonDeductibleContributions
Indoor Tanning Services	false	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	7	NbrVotingGoverningBodyMembers
Number Independent Voting Members	3	NumberIndependentVotingMembers
Family Or Business Relationship	true	FamilyOrBusinessRelationship
Delegation Of Management Duties	false	DelegationOfManagementDuties
Changes To Organizing Docs	false	ChangesToOrganizingDocs
Material Diversion Or Misuse	false	MaterialDiversionOrMisuse
Members Or Stockholders	false	MembersOrStockholders
Election Of Board Members	false	ElectionOfBoardMembers
Decisions Subject To Approval	false	DecisionsSubjectToApproval
Minutes Of Governing Body	true	MinutesOfGoverningBody
Officer Mailing Address	false	OfficerMailingAddress
Local Chapters	false	LocalChapters
Form990 Provided To Governing Body	true	Form990ProvidedToGoverningBody
Conflict Of Interest Policy	true	ConflictOfInterestPolicy
Whistleblower Policy	false	WhistleblowerPolicy
Document Retention Policy	true	DocumentRetentionPolicy
Investment In Joint Venture	false	InvestmentInJointVenture
States Where Copy Of Return Is Filed	UT	StatesWhereCopyOfReturnIsFiled

The Books Are In Care Of TheBooksAreInCareOf

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	SPENDLOVE MEDICAL RESEARCH INSTITUTE	BusinessNameLine1

Field	Value	IRS element (for citing)
Telephone Number	4357500959	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	365 NORTH 600 WEST	AddressLine1
City	Logan	City
State	UT	State
ZIP Code	84321	ZIPCode

Form990 Part VII Section A Form990PartVIISectionA

Field	Value	IRS element (for citing)
Name Person	CHRISTIAN IVERSON	NamePerson
Title	EXECUTIVE DIRECTOR	Title
Average Hours Per Week	40.00	AverageHoursPerWeek
Highest Compensated Employee	X	HighestCompensatedEmployee
Reportable Comp From Organization	71246	ReportableCompFromOrganization
Reportable Comp From Related Orgs	0	ReportableCompFromRelatedOrgs
Other Compensation	11001	OtherCompensation

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	71246	TotalReportableCompFromOrg
Total Other Compensation	11001	TotalOtherCompensation
Formers Listed	false	FormersListed
Total Comp GT150 K	false	TotalCompGT150K
Compensation From Other Sources	false	CompensationFromOtherSources

Contractor Compensation ContractorCompensation

Name Of Contractor NameOfContractor

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	KEYS DATA	BusinessNameLine1

Address Of Contractor AddressOfContractor

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	635 S 400 E	AddressLine1
City	Providence	City
State	UT	State
ZIP Code	84332	ZIPCode

Field	Value	IRS element (for citing)
Description Of Services	IT	DescriptionOfServices
Compensation	18334	Compensation

Field	Value	IRS element (for citing)
All Other Contributions	240140	AllOtherContributions
Total Contributions	240140	TotalContributions

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	6715	TotalRevenueColumn
Related Or Exempt Function Income	6715	RelatedOrExemptFunctionIncome
Exclusion	$6,715	ExclusionAmount

Royalties Revenue RoyaltiesRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	16795	TotalRevenueColumn
Related Or Exempt Function Income	16795	RelatedOrExemptFunctionIncome
Exclusion	$16,795	ExclusionAmount

Gross Rents GrossRents

Field	Value	IRS element (for citing)
Real	46135	Real

Rental Income Or Loss RentalIncomeOrLoss

Field	Value	IRS element (for citing)
Real	46135	Real

Net Rental Income Or Loss NetRentalIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	46135	TotalRevenueColumn
Related Or Exempt Function Income	46135	RelatedOrExemptFunctionIncome
Exclusion	$46,135	ExclusionAmount

Net Income From Fundraising Events NetIncomeFromFundraisingEvents

Field	Value	IRS element (for citing)
Total Revenue Column	0	TotalRevenueColumn

Field	Value	IRS element (for citing)
Gross Sales Of Inventory	4810	GrossSalesOfInventory
Cost Of Goods Sold	1450	CostOfGoodsSold

Net Income Or Loss NetIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	3360	TotalRevenueColumn
Related Or Exempt Function Income	3360	RelatedOrExemptFunctionIncome

Other Revenue Misc OtherRevenueMisc

Field	Value	IRS element (for citing)
Description	COPY MACHINE USAGE	Description
Total Revenue Column	4052	TotalRevenueColumn
Related Or Exempt Function Income	4052	RelatedOrExemptFunctionIncome

Field	Value	IRS element (for citing)
Total Other Revenue	4052	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	317197	TotalRevenueColumn
Related Or Exempt Function Income	77057	RelatedOrExemptFunctionIncome
Exclusion	$69,645	ExclusionAmount

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	71246	Total
Program Services	29193	ProgramServices
Management And General	42053	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	9653	Total
Program Services	6250	ProgramServices
Management And General	3403	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	2325	Total
Management And General	2325	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	21615	Total
Management And General	21615	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	5854	Total
Management And General	5854	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	3770	Total
Management And General	3770	ManagementAndGeneral

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	24922	Total
Program Services	19938	ProgramServices
Management And General	4984	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	3273	Total
Management And General	3273	ManagementAndGeneral

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	2110	Total
Program Services	428	ProgramServices
Management And General	1682	ManagementAndGeneral

Insurance Insurance

Field	Value	IRS element (for citing)
Total	8465	Total
Management And General	8465	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Program ServicesProgramServices	Management And GeneralManagementAndGeneral
OFFICE EXPENSE	5112	1000	4112
PROPERTY TAXES	4805		4805
REPAIRS AND MAINTENANCE	4212		4212
EDUCATION SEMINARS	3886		3886

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	2081	Total
Program Services	314	ProgramServices
Management And General	1767	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	173329	Total
Program Services	57123	ProgramServices
Management And General	116206	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
EOY	4994	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
EOY	39229	EOY

Other Notes Loans Receivable Net OtherNotesLoansReceivableNet

Field	Value	IRS element (for citing)
BOY	123673	BOY
EOY	262874	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
EOY	3757	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	18626	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	6421	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	5566	BOY
EOY	12205	EOY

Investments Other Securities InvestmentsOtherSecurities

Field	Value	IRS element (for citing)
BOY	39937	BOY
EOY	39937	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	169176	BOY
EOY	362996	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	5904	BOY

Loans From Officers Directors LoansFromOfficersDirectors

Field	Value	IRS element (for citing)
EOY	193000	EOY

Unsecured Notes Loans Payable UnsecuredNotesLoansPayable

Field	Value	IRS element (for citing)
BOY	326221	BOY
EOY	194221	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	5634	BOY
EOY	490	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	337759	BOY
EOY	387711	EOY

Field	Value	IRS element (for citing)
Do Not Follow SFAS117	X	DoNotFollowSFAS117

Cap Stck Trst Prin Current Funds CapStckTrstPrinCurrentFunds

Field	Value	IRS element (for citing)
BOY	1000	BOY
EOY	1000	EOY

Retained Earnings Endowment Etc RetainedEarningsEndowmentEtc

Field	Value	IRS element (for citing)
BOY	-169583	BOY
EOY	-25715	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	-168583	BOY
EOY	-24715	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	169176	BOY
EOY	362996	EOY

Field	Value	IRS element (for citing)
Reconcilation Revenue Expenses	143868	ReconcilationRevenueExpenses
Method Of Accounting Cash	X	MethodOfAccountingCash
Accountant Compile Or Review	false	AccountantCompileOrReview
FS Audited	false	FSAudited

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Medical Research Org170b1 Aiii	X	MedicalResearchOrg170b1Aiii

Hospital Name And Address HospitalNameAndAddress

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	UNIVERSITY OF UTAH MEDICAL CENTER	BusinessNameLine1

Field	Value	IRS element (for citing)
City	SLC	City
State	UT	State

Schedule B IRS990ScheduleB

Contributor Info ContributorInfo

Field	Value	IRS element (for citing)
Contributor Number	RESTRICTED	ContributorNumber

Contributor Name Business ContributorNameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	RESTRICTED	BusinessNameLine1

Contributor Address US ContributorAddressUS

Field	Value	IRS element (for citing)
Address Line1	RESTRICTED	AddressLine1
Address Line2	RESTRICTED	AddressLine2
City	RESTRICTED	City
State	RESTRICTED	State
ZIP Code	RESTRICTED	ZIPCode

Field	Value	IRS element (for citing)
Aggregate Contributions	RESTRICTED	AggregateContributions

Schedule C IRS990ScheduleC

Field	Value	IRS element (for citing)
Paid Staff Or Management	false	PaidStaffOrManagement
Media Advertisements	false	MediaAdvertisements
Mailings Members	false	MailingsMembers
Publications Or Broadcast	false	PublicationsOrBroadcast
Grants Other Organizations	false	GrantsOtherOrganizations
Direct Contact Legislators	false	DirectContactLegislators
Rallies Demonstrations	false	RalliesDemonstrations
Other Activities	false	OtherActivities

Schedule D IRS990ScheduleD

Field	Value	IRS element (for citing)
Included On FS	false	IncludedOnFS

Equipment Equipment

Field	Value	IRS element (for citing)
Investment Cost Or Other Basis	9877	InvestmentCostOrOtherBasis
Depreciation	1639	Depreciation
Book Value	8238	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Investment Cost Or Other Basis	8749	InvestmentCostOrOtherBasis
Depreciation	437	Depreciation
Book Value	8312	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	16550	TotalOfBookValueLandBuildings

Closely Held Equity Interests CloselyHeldEquityInterests

Field	Value	IRS element (for citing)
Book Value	39937	BookValue
Method Of Valuation	C	MethodOfValuation

Field	Value	IRS element (for citing)
Total Of Book Value Securities	39937	TotalOfBookValueSecurities

Other Liabilities OtherLiabilities (2 entries)

DescriptionDescription	AmountAmount
PAYROLL LIABILITIES	$392
DUE TO QUANSYS	$98

Field	Value	IRS element (for citing)
Total Of Amounts	490	TotalOfAmounts
Total Revenue	317197	TotalRevenue
Total Expenses	173329	TotalExpenses
Excess Or Deficit For Year	143868	ExcessOrDeficitForYear
Excess Or Deficit Per FS	143868	ExcessOrDeficitPerFS

Schedule J IRS990ScheduleJ

Schedule L IRS990ScheduleL

Loan Table LoanTable

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	SPENDLOVE ENTERPRISES	BusinessNameLine1

Field	Value	IRS element (for citing)
Purpose Of Loan	RESEARCH PURPOSES	PurposeOfLoan
Loan To Organization	X	LoanToOrganization
Original Principal	$193,000	OriginalPrincipalAmount
Balance Due	193000	BalanceDue
Default	false	Default
Approved By Board	true	ApprovedByBoard
Written Agreement	false	WrittenAgreement

Field	Value	IRS element (for citing)
Total Balance Due	193000	TotalBalanceDue

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation

Field	Value	IRS element (for citing)
Explanation	RENT INCOME 46135, ROYALTY INCOME 16795, INTEREST 16795, MISC INCOME 4052 OTHER EXPENSES INCLUDE REPAIRS, INSURANCE, DEPRECIATION, SUPPLIES, AND OTHER MISCELLANEOUS ITEMS PART VI SECTION A LINE 2 THREE BOARD MEMBERS ARE CHILDREN TO THE PRESIDENT OF THE BOARD, REX SPENDLOVE. NONE HAVE MANAGEMENT RESPONSIBILITY FOR THE DAY TO DAY OPERATIONS OF THE ORGANIZATION.	Explanation