Covenant House

“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 2021.”

“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.”

“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 loan, 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 business. The ppp loan bears an interest rate of 1% per annum. On june 21, 2021, the ppp loan was forgiven in full by the united state small business administration ("sba") and is included in non-operating activities in the accompanying 2021 consolidated statement of activities as forgiveness of paycheck protection program loan.”

“In 33 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 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 power to overcome adversity now and into the future. Young people arrive at covenant house with an array of lived experiences, including foster care, family trauma, 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. During fy21, the worldwide covid-19 pandemic impacted the number of youth covenant house reached, as affiliates ensured social distancing, set aside isolation rooms for symptomatic youth, paused our in-person prevention programs, and, during lockdowns, suspended or modified street outreach. The pandemic impacted all of our operations, including food production (increased 75%); the creation of online opportunities for mental health care, education, and job readiness training; development of appropriate intake protocols; implementation of new cleaning and sanitizing protocols, and other measures, all of which drove up operating costs. Nevertheless, in fy21 covenant house affiliates provided a total of nearly 690,000 nights of housing and safety for, on average, 1,883 youth each night.”

“Pension related activities 1,676,405. Change in value of split interest agreements 751,034. Change in value of beneficial interest in trust 996,861. Write-off of uncollectible revenues -149,417.”

“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.”