Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 5 | THE ORGANIZATION'S FORMER EXECUTIVE DIRECTOR COLLUDED WITH THE FORMER BOOKKEEPER, BOTH OF WHOM IMPROPERLY USED ORGANIZATION FUNDS FOR PERSONAL EXPENSES. THIS DIVERSION OF ASSETS OCCURRED DURING THE PERIOD BETWEEN DECEMBER 2020 AND DECEMBER 2021. THE THEFT WAS DISCOVERED IN DECEMBER 2021. THE APPROXIMATE TOTAL AMOUNT MISAPPROPRIATED WAS $225,751, $172,297 BY THE FORMER EXECUTIVE DIRECTOR AND $49,705 BY THE FORMER BOOKKEEPER. NO BOARD MEMBER HAD ANY PREVIOUS KNOWLEDGE OF THIS DIVERSION OF FUNDS, NOR DID ANYONE RELATED TO THE ORGANIZATION IN ANY CAPACITY, OTHER THAN THE PERPETRATORS, APPROVE THESE TRANSACTIONS. THE ORGANIZATION SUBSEQUENTLY FILED AN INSURANCE CLAIM IN THE AMOUNT OF $150,325, WHICH WAS RECEIVED IN JULY 2022. THE FORMER EXECUTIVE DIRECTOR MADE A RESTITUTION BACK TO THE ORGANIZATION IN THE AMOUNT OF $61,000 IN JANUARY 2022. THE ORGANIZATION ALSO RECEIVED SOME REFUNDS BACK FROM CREDIT CARDS USED BY THESE TWO INDIVIDUALS. THE FINAL UNRECOVERABLE FUNDS ARE $6,869. AFTER A BOARD DISCUSSION OF THE ABOVE FINDINGS, CORRECTIVE ACTIONS INCLUDED TERMINATING THE FORMER EXECUTIVE DIRECTOR IN JANUARY 2022 AND FILING A RELATED POLICE REPORT. THE FORMER BOOKKEEPER LEFT THE ORGANIZATION VOLUNTARILY IN DECEMBER 2021, PRIOR TO THE DISCOVERY OF FRAUD. THE ORGANIZATION FURTHER HIRED AN OUTSOURCED ACCOUNTANT TO ENSURE THE BOOKS ARE PROPERLY MAINTAINED AND TIMELY RECONCILED. THE ORGANIZATION ALSO IMPLEMENTED CONTROLS TO STRENGTHEN PROCEDURES OVER ALL OF ITS CHECKING AND SAVINGS ACCOUNTS . MANAGEMENT AND BOARD MONITORING AND APPROVING OF BANK ACTIVITIES NOW TAKES PLACE ON A ROUTINE AND CONSISTENT BASIS. THE PRESIDENT REVIEWS ONLINE BANKING DAILY, WITH THE TREASURER REVIEWING WEEKLY. THE EXECUTIVE DIRECTOR AND IMMEDIATE PAST TREASURER ALSO REVIEW THE BANKING. THE ORGANIZATION IS CURRENTLY WORKING WITH AN ATTORNEY IN ORDER TO ADD A CODE OF CONDUCT SECTION AND UPDATED FRAUD PREVENTION POLICIES TO ITS PERSONNEL MANUAL, ALONG WITH OTHE UPDATES. THE ORGANIZATION HAS CONTRACTED FOR AN INDEPENDENT FINANCIAL STATEMENT AUDIT FOR THE YEARS ENDING MAY 31, 2023 AND 2024. |
| FORM 990, PART VI, SECTION A, LINE 6 | ALTRUSA HAS THE FOLLOWING TYPES OF MEMBERS: ACTIVE, EMERITUS, AFFILIATE AND LIFE MEMBERS. EMERITUS AND AFFILIATE MEMBERS ARE NOT ALLOWED TO VOTE, HOLD OFFICE OR SERVE ON A COMMITTEE. |
| FORM 990, PART VI, SECTION A, LINE 7A | MEMBERS ELECT THE BOARD OF DIRECTORS AND OFFICERS AT THE BIENNIAL MEETING. |
| FORM 990, PART VI, SECTION A, LINE 7B | MEMBERS MUST APPROVE ANY CHANGES TO THE BYLAWS. |
| FORM 990, PART VI, SECTION B, LINE 11B | FORM 990 IS REVIEWED BY THE EXECUTIVE DIRECTOR, TREASURER AND THE PRESIDENT PRIOR TO ITS FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | ENFORCEMENT OF CONFLICTS OF INTEREST POLICY. A VARIETY OF POLICIES, INCLUDING CONFLICT OF INTEREST,INVESTMENT OBJECTIVES, FISCAL POLICIES ARE REVIEWED ANNUALLY AT BOARD OF DIRECTOR MEETINGS. THE BOARD OF DIRECTORS ARE RESPONSIBLE FOR OVERSEEING AND MONITORING THE ENFORCEMENT OF THE CONFLICT OF INTEREST POLICY. STAFF, EX-OFFICIO MEMBERS, BOARD MEMBERS WOULD HAVE A TELECONFERENCE MEETING AND THIS WOULD BE DOCUMENTED IN MEETING MINUTES IF ANY REPORTS OF CONFLICTS OF INTEREST EXISTED. |
| FORM 990, PART VI, SECTION B, LINE 15 | PART VI, SECTION B, LINE 15 - PROCESS FOR DETERMINING COMPENSATION FOR EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR HAS AN ANNUAL REVIEW IN NOVEMBER. THE BOARD OF DIRECTORS IN CONJUNCTION WITH THE PERSONNEL COMMITTEE REVIEW AND DECIDE ON COMPENSATION. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ORGANIZATION MAKES ITS ORGANIZING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. |
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