Covenant House

“The organization restructure its bylaws during fy2020 to reflect the following significant changes: 1. Committee power limitations were added to the bylaws, and state that the executive committee and any other committee does not have the authority to do the following: a) the election or removal of officers and directors. B) the approval of a merger or plan of dissolution. C) the adoption of a resolution authorizing the sale, lease, exchange or other disposition of all or substantially all of the corporation's assets. D) the approval of amendments to the certificate of incorporation.”

“The form 990 is prepared by a nationally renowned accounting firm in conjunction with the organization's financial department. A copy of the draft form 990 is presented to the audit committee of the board and once approved; it is distributed to the entire board prior to its filing with the internal revenue service.”

“The organization requires annual disclosure and affirmation of the conflict of interest policy by all officers, directors and key employees, which is monitored annually by the board's audit committee. The disclosure statement required each officer, director, and key employee to disclose any business or personal interests, direct or indirect, that the person may have in an organization that completes with or does business with covenant house international (chi) or any other organization business/ agency affiliated with chi. If a conflict is determined to exist, it must be reported and addressed to the satisfaction of the organization. Any other person having a conflict, and attending said meeting, shall retire from the room in which the board or committee is meeting and shall not participate in the final deliberations or decisions regarding the matter under consideration. Any interested director shall also abstain during such vote. The minutes of the meeting of the board or committee shall reflect that the conflict of interest was disclosed and that the interested person was not present during the final discussion or vote and did not vote.”

“The president/ceo's, other officers', and key employees' compensation are determined by the executive committee acting as the compensation committee working in conjunction with comparability data such as salary surveys with similarly sized non-profits. Periodically the organization hires an independent consultant to review comparable salaries for the president/ceo, other officers and key employees. Generally the board evaluates compensation annually. The determination is based on the performance evaluation that factors into account effectiveness, performance, and achievement of goals. Records of executive committee's compensation decisions are written by the board chair and maintained in the president's folder - human resources department record. This process was last undertaken in fiscal year 2020.”

“Covenant house makes its form 990 available for public inspection upon request and on the organization's website www.covenanthouse.org. Covenant house makes its form 1023, governing documents, conflict of interest policy and financial statments available for public inspection upon request and at management's discretion.”

“In 31 cities across six countries, covenant house builds bridges to hope for young people facing homelessness and survivors of human trafficking, meeting their immediate needs for food, clothing, protection, and medical care and supporting them to advance their goals of education and employment. Covenant house encompasses a robust network of "houses," with best-in-class services and a shared commitment to unconditional love, absolute respect, and relentless support for each young person who walks through our doors. Founded as a drop-in center in new york city in 1972, covenant house now serves tens of thousands of children and youth every year in our residential, outreach, and drop-in programs. Our dedicated staff across the united states, guatemala, honduras, mexico, nicaragua, and canada employ a strengths-based, trauma-informed practice model that helps young people discover and develop their resilience to overcome adversity now and into the future. Young people arrive at covenant house with an array of lived experiences, including foster care, substance use, mental health issues, domestic violence, sexual abuse, and more. Our staff meet them where they are and accompany them, through our high-quality continuum of services, on their journey to wholeness and independence.”

“On april 13, 2020, the parent received loan proceeds in the amount of $1,997,500 under the paycheck protection program (the "ppp"). The ppp, established as part of the coronavirus aid, relief and economic security act (the "cares act"), provides for loans to qualifying entities for amounts up to 2.5 times the 2019 average monthly payroll expenses of the qualifying entity. The ppp loan bears an interest rate of 1% per annum. All or a portion of the ppp loan principal and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, as described in the cares act, over a period of either eight or twenty-four weeks (the "covered period"). The amount of loan forgiveness could be reduced if the borrower terminates employees or reduces salaries below a certain threshold during the covered period and does not qualify for certain safe harbors. The unforgiven portion of the ppp loan, if any, is payable within two years from the date of the loan. Loan payments of principal or interest are deferred until the amount of loan forgiveness is determined by the united states small business administration ("sba"). If the parent does not apply for forgiveness, payments begin approximately 16 months after the loan date. The parent intends to use all proceeds received in accordance with regulations established by the ppp. Management believes its use of the proceeds, including amounts expended through june 30, 2020, will be forgiven. The entire amount received under the ppp is reported as a forgivable loan in the consolidated statement of financial position at june 30, 2020.”

“Pension related activities -7,489,154. Change in value of split interest agreements -362,321. Change in value of beneficial interest in trust -137,633. Write-off of uncollectible revenues -191,626. Assignment of net assets upon dissolution of covenant house holdings llc -1,822,195. Write-off of debt issuance costs -230,552.”

“The process for selecting an independent accountant and establishing a committee that assumes responsibility for oversight of the audit has not changed from prior years.”