Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is at| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 5 | IN JULY 2013, THE ORGANIZATION'S TAX PREPARER DISCOVERED SOME FINANCIAL DISCREPANCIES WHILE REVIEWING INFORMATION TO PREPARE THE 2012 FORM 990. FURTHER INVESTIGATION REVEALED THAT AN EMPLOYEE HAD WRITTEN UNAUTHORIZED CHECKS TO HERSELF IN 2012 AND 2013 AND HAD THE ORGANIZATION PAY FOR HEALTH INSURANCE BENEFITS SHE WAS REQUIRED TO REIMBURSE THE ORGANIZATION FOR, BUT FAILED TO DO SO. THE ORGANIZATION TERMINATED THE EMPLOYEE IMMEDIATELY UPON DISCOVERING THE THEFT. THE ORGANIZATION HAS WORKED WITH ITS TAX PREPARER TO IDENTIFY THE EXTENT OF THEFT AND HOW TO ESTABLISH RECOMMENDED ACCOUNTING PRACTICES TO PREVENT THEFT IN THE FUTURE. AT THE TIME OF FILING THIS RETURN, AN ESTIMATED $120,700 OF SUSPECTED THEFT FOR 2012 AND 2013 HAS BEEN IDENTIFIED. $18,229 OF THIS AMOUNT HAS BEEN CLASSIFIED ON THE BALANCE SHEET AS RESTITUTION RECEIVABLE, AND THE REMAINDER IS A THEFT LOSS. THE ORGANIZATION IS CURRENTLY IN THE PROCESS OF PURSUING BOTH CRIMINAL AND CIVIL CHARGES AGAINST THE EMPLOYEE. THE ORGANIZATION CANNOT DETERMINE AT THIS TIME THE AMOUNT IT EXPECTS TO RECOVER FROM THE EMPLOYEE, IF ANY. |
| FORM 990, PART VI, SECTION A, LINE 6 | THE ORGANIZATION'S BOARD CONSISTS OF TWO MEMBER DELEGATES FROM EACH OF SIX CHAPTERS IN THE STATE OF WASHINGTON. |
| FORM 990, PART VI, SECTION A, LINE 7A | CHAPTER DELEGATES ELECT EXECUTIVE OFFICERS (PRESIDENT ELECT, SECRETARY AND TREASURER). |
| FORM 990, PART VI, SECTION A, LINE 7B | DECISIONS SUCH AS BUDGET, BY-LAWS CHANGES, AND POSITION STATEMENTS ARE APPROVED AT AN ANNUAL MEETING BY THE MEMBER DELEGATES. |
| FORM 990, PART VI, SECTION B, LINE 11 | THE TREASURER REVIEWED THE RETURN BEFORE FILING WITH THE IRS. |
| FORM 990, PART VI, SECTION B, LINE 15A | COMPENSATION IS DETERMINED BY CONTRACT WITH THE EXECUTIVE BOARD. |
| FORM 990, PART VI, SECTION C, LINE 19 | FORMS, GOVERNING DOCUMENTS, POLICIES, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST. |
| FORM 990, PART XII, LINE 1: | THE ORGANIZATION USES THE MODIFIED CASH METHOD OF ACCOUNTING. |
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