Aabr Inc.

“Aabr identified a misappropriation of funds that dates back several years through december 2022. Aabr has identified that approximately $558,000 of capital additions were spent by aabr for which we are unable to substantiate the validity of the transaction. As such, this amount has been deemed to be a loss and is reported as a non-operating loss on irs form 990, part 9 - line 9 for the year ended june 30, 2022. Additionally, aabr has identified approximately $116,000 of paint purchases reported as repairs and maintenance expense for which we are unable to substantiate the validity of the transactions. As such, this amount has been deemed to be a loss and is reported as a non-operating loss on irs form 990, part 9 - line 9 for the year ended june 30, 2022. As a result of this identification, aabr has engaged legal counsel and is working closely with outside authorities and its insurance carrier. Aabr has since restructured its finance department and has hired a new director of finance, cfo, a/p manager and a/p clerk. They will ensure that the finance department meets all levels of compliance to the agency's fiscal policy and procedures and its internal controls. Aabr has re-evaluated its current policy and procedures and has fortified its internal control procedures to accommodate an extra level of approval and site overview. A specific emphasis was put on capital project overview and procedures to monitor and control costs and project approved outcomes. Aabr has directed corporate compliance to perform periodic internal audits to ensure that protocol of our internal controls meet satisfactory standards.”

“The draft form 990 was initially reviewed by the cfo and then distributed to the full board of directors for their review and feedback prior to filing with the irs.”

“The organization requires that all board members and administrative employees are required to complete a conflict of interest disclosure statement. Actual or potential conflicts of interest must be disclosed. Board memebers/employees must seek guidance and approval from administrative personnel prior to pursuing and business or personal activity that may constitute a conflict of interest. Board memebers will be recused from discussion and voting on items that a conflict of interest.”

“The executive director's compensation is reviewed and approved by the board of directors based on comparability data. The organization also hired a cpa firm to conduct a compensation benchmarking. The last review was done in 2020. This is done by the related organization aabr, inc.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Contracted services: program service expenses 3,713,826. Management and general expenses 292,090. Fundraising expenses 0. Total expenses 4,005,916. Consultant fees: program service expenses 0. Management and general expenses 15,000. Fundraising expenses 0. Total expenses 15,000.”

“Change in postretirement liability obligation 701,416. Change in accounting principle nonoperating loss -674,303.”

“This process has not changed from the prior year.”