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7 <br />Exhibit A: Fiscal Sponsorship Agreement <br />The Forest Lake Historical Society (“Fiscal Sponsor”) has determined that sponsorship of the formation of the Hopkins <br />Schoolhouse and Heritage Center (“the Project” before incorporation) or (“the Sponsored Organization” after <br />incorporation) are consistent with its goals and wishes to make arrangements with the City of Hugo for the <br />implementation and operation of the Project. <br />1. The Forest Lake Historical Society hereby agrees to sponsor the Project/Sponsored Organization and to assume <br />administrative, programmatic, financial, and legal responsibility for the purposes outlined in this proposal until <br />such time as the Hopkins Schoolhouse and Heritage Center is (1) formally incorporated as a Minnesota non-profit <br />organization; and (2) has secured a determination from the IRS confirming its status as a 501(c)(3) charitable <br />organization. <br />2. The Forest Lake Historical Society agrees to implement and operate the Project as described in the proposal <br />attached as Exhibit B, in accordance with the terms of this agreement and with requirements specified by the City <br />of Hugo as described in the primary agreement. <br />3. The Project shall be operated in a manner consistent with the Fiscal Sponsor’s tax-exempt status and as described <br />in this agreement. No material changes in the purposes or activities of the Project shall be made without prior <br />written agreement of the City of Hugo. <br />4. The Fiscal Sponsor will provide the City of Hugo with reports describing activities on the Project milestones with <br />the following schedule, or until such time as the duties are transitioned to the Nonprofit: <br />Second Quarter – June 30 <br />Third Quarter – September 30 <br />Fourth Quarter – December 31 <br />5. The Fiscal Sponsor will establish and operate for the use of the Project a designated account (“Account”) <br />segregated on the Fiscal Sponsor’s books. All amounts deposited into the Project’s Account will be used in its <br />support. <br />6. The Fiscal Sponsor will maintain all financial records relating to the Project according to generally accepted <br />accounting principles, retain records as long as required by law, and make records available to auditors as <br />required by law. <br />7. The Fiscal Sponsor and the Sponsored Organization will reflect the activities of the Project, to the extent required, <br />on their state and federal government tax returns and financial reports. All disbursements from an Account shall <br />be treated as payments made to or on behalf of the Sponsored Organization to accomplish the purposes of the <br />Project. The Sponsored Organization will provide the Fiscal Sponsor with proper documentation to accomplish <br />this, including furnishing the Fiscal Sponsor with the Sponsored Organization's Federal Employer Identification <br />Number once secured. <br />8. Within 30 days of receipt of the IRS determination letter confirming the non-profit status of the new nonprofit, the <br />Forest Lake Historical Society shall transfer all Project documentation, financial records, and funds deposited into <br />its accounts for the Project to the Sponsored Organization. At such time, all obligations set forth in this agreement <br />shall be transferred to the Hopkins Schoolhouse and Heritage Center, and the Forest Lake Historical Society shall <br />be relieved of any obligations set forth herein, except for the retention of records as may be required by law.