The Providence Plan

“Explanation on schedule o”

“The form 990 is prepared by the external auditors and reviewed by managment once all are satisfied with the form, it is finalized and a copy is sent to all board members at the subsequent board meeting, the board is asked if they have any questions or comments and a general review of the form is conducted by management. Revisions, corrections, etc are made as necessary. Subsequent to this meeting, the form is submitted to the irs.”

“Each year the organizations conflict of interest policy is provided to all officers, directors and key employees. These people are asked to review the policy and sign a statement indicating that they understand the policy and have reported all potential conflicts during the past year in accordance with the policy and will report all potential conflicts the coming year. All potential conflicts are evaluated by the board to determine if a conflict actually exists. In those instances where the potential transaction is a conflict, the board examines the transaction and a vote is taken (with those involved recusing themselves) as to whether the organization will enter into the transaction.”

“Annually the board conducts a performance review and evaluation of the ceo. The review also establishes the individual's compensation for the following year. This process involves the evaluation of the individual and a review of compensation of comparable positions obtained from the form 990 of similar organizations. The boards deliberation and decision is noted in the minutes of the meeting. The ceo establishes the compensation of the senior management team and reviews the performance evaluations and recommended compensation with the board. The evaluations and compensation are discussed by the board although no vote of approval of the ceo's decision is required.”

“The organization makes it governing documents (articles of incorporation and by-laws), its conflict of interest policy and financial statements available upon request. The organization will mail copies upon request or provide copies to those who come to the administration offices during normal business hours. The organization charges for the copies in accordance with irs regulations.”

“As identified above, the providence plan did not become aware of the diversion of assets during the tax year ending june 30, 2016 and, accordingly, responded "no" to part vi, section a, line 5.”

“Consultants: program service expenses 1,845,903. Management and general expenses 40,737. Fundraising expenses 0. Total expenses 1,886,640.”

“There have been no changes from the prior year in the methods used by the committee responsible for oversight of the audit of its financial statements and selection of an independent accountant.”

“On july 26, 2016, the providence plan learned that it had suffered a fraudulent conversion of funds by the individual who served as the providence plan's director of finance and administration from 2009 to july 26, 2016. The total amount of funds fraudulently converted from the providence plan to the former director of finance and administration's personal use between september 22, 2009, and july 15, 2016, was $741,100, resulting in a significant diversion of the providence plan's assets. As a result of learning this information, several corrective action steps were taken by providence plan management and the board. The former director of finance and administration was let go immediately, a forensic audit was commissioned immediately, and a review of all internal controls was commenced with corrective actions taken as issues were identified. While the providence plan did not learn of the embezzlement during its fiscal year 2016, the organization did learn of it subsequent to june 30, 2016, and has both quantified and reported the loss incurred during fiscal year 2016 as a result of a forensic audit. The loss on embezzlement for fiscal year ending june 30, 2016, is 327,407, as indicated on part ix, item 24a of the 990. In addition, accrued expenses include the amount due back to donors and grantors of $194,343.”