Heartsong Inc.

“Heartsong, inc. Outsources its accounting, it and hr services to family services of westchester, inc., ("fsw"). These services include preparation of financial statements, annual budgets, payroll, benefits administration, new hire processing, and setup/maintenance of it network. Fsw was paid $25,660 for these services. No individual listed in part vii of the return was paid by fsw. In addition, this agreement was terminated at the end of the fiscal year.”

“Heartsong, inc. Has its form 990 prepared by an outside accounting firm and has established the following review process to ensure that the information reported is complete and accurate. When the form 990 has been prepared, reviewed by management and is ready to be filed with the internal revenue service, it is electronically sent to the board members of the organization for any comments. Any comments are then grouped, summarized and provided to the outside accountants. Each issue is documented and addressed until the return is finalized and approved for filing.”

“The conflict of interest policy is applicable to employees, board members, and officers of the organization. If an interested person becomes aware of a potential or actual conflict, they must diclose this immediately. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he or she shall leave the meeting of the board of directors, committee or authorized body of heartsong in which the determination of a conflict of interest is discussed and voted upon. The remaining members of the board of directors, committee or authorized body shall decide if a conflict of interest exists. If the board of directors takes action concerning a financial transaction or arrangement previously reviewed by a committee or authorized body, the board shall make its own determination or affirm the determination of the committee or authorized body as to whether a conflict of interest exists. A. Interested persons shall count toward the presence of a quorum at meetings of board of directors, committee or authorized body of heartsong notwithstanding that interested persons may not deliberate or vote on a determination of whether a conflict of interest exists or on a financial transaction or arrangement in which they have a financial interest. B. Notwithstanding any other provisions of heartsong's by-laws, votes on conflicts of interest and financial transactions or arrangements shall be determined by the same percentage of the disinterested persons present at a meeting as would be required by the by-laws of heartsong for action by the board of directors, committee or authorized body, unless a different percentage is required by statute. When a conflict of interest is determined to exist: a. An interested person may make a presentation at the meeting of the board of directors, committee or authorized body of heartsong, but after such presentation and any discussion with the interested person, he or she shall leave the meeting during the discussion of, and the vote on, the financial transaction or arrangement that results in the conflict of interest. B. The chairperson of the board of directors, committee or authorized body shall, if he or she deems it appropriate, appoint a disinterested person or committee of disinterested persons to investigate alternatives to the proposed financial transaction or arrangement. C. Only disinterested persons unrelated to and not subject to the control of the interested person may vote on the financial transaction or arrangement. D. Prior to voting on the financial transaction or arrangement, the board of directors, committee or authorized body shall obtain appropriate data as to comparability. E. The board of directors, committee or authorized body shall document the basis for its determination as to the financial transaction or arrangement concurrently with making the determination, as set forth in section 5 of article iii of the policy and procedures. F. If a financial transaction or arrangement includes a non-fixed payment (such as a discretionary bonus), there shall be a specified cap on the amount of the non-fixed payment and the financial transaction or arrangement and its comparability shall be considered on the basis of the maximum amount payable. Failure to disclose conflicts of interest: a. If the board of directors, committee or authorized body of heartsong or an entity controlled by heartsong has reasonable cause to believe that a disqualified person has failed to disclose an actual or possible conflict of interest, it shall inform the disqualified person of the basis for such belief and afford the disqualified person an opportunity to explain the alleged failure to disclose. B. If, after hearing the response of the disqualified person and making such further investigation as may be warranted in the circumstances, the board of directors, committee or authorized body determines that the disqualified person has, in fact, failed to disclose an actua”

“The salary of the executive director was determined by the board at her hire date in february 2008. In the fall of 2008, the executive director's salary was cut by 15% due to economic conditions. In her employment contract it states that there could be the possibility of a bonus paid based on performance, but it was dependent on the financial condition of the organization at that time. The executive committee consulted with the advisory board on incentive bonuses for executive directors at comparable organizations. In addition, the committee reviewed other form 990's from similar organizations, and compensation studies done by other organizations (such as charity navigator, guidestar, etc). Based on the board's review, the board approved a bonus of $10,000 in addition to the executive director's annual salary. The approval was documented in the minutes to the executive committee meeting. At the subsequent board meeting, the bonus recommendation was made to the full board by the executive committee. It was approved and documented in the minutes to that board meeting.”

“The organization makes its form 990 available for public inspection as required under section 6104 of the internal revenue code by posting it on guidestar.org and other similar types of websites. In addition, the financial statements, form 1023, conflict of interest policy, articles of incorporation and by-laws are also available upon written request or by calling the organization directly.”

“Heartsong was established in 1992 by the parents of a child with cerebral palsy and has served more than 1,200 children since its inception. Our mission is to provide clinically-based music and art therapy programs that seek to enhance the functioning level and quality of life for children with special needs and their families. Heartsong serves westchester county, as well as neighboring counties and the bronx. Clients served range in age from four to twenty-one years of age and have disabilities such as autism, cerebral palsy, mental retardation, multiple developmental delays, and downs syndrome. Fifty-two percent of those enrolled in heartsong have a diagnosed autism spectrum disorder. Heartsong's innovative group format improves each participant's social skills while reducing isolation often felt by these children. Heartsong also seeks to address the unmet needs of segments within the population it serves. Programs have been initiated or are in planning stages for pre-schoolers and adolescent clients. These include "mommy and me" sessions for children under age five, a collaboration with the schoolhouse theater in croton, new york, for older adolescents and a pilot dance therapy project with the graduate dance program of sarah lawrence college in bronxville. In 2010, heartsong realized a partnership with family services of westchester, a not-for-profit dedicated to strengthening and supporting families, children and individuals through all stages of the life cycle. This collaboration allows heartsong to increase its impact by adding weekday sessions and addressing the needs of teens that "age out" of its core services. Now families can find the multiple services they need in one, shared location.”

“The organization has a committee that assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant. This process did not change from the prior year.”

“When the original return was filed the financial information had not been audited. Since filing the original return, there has been a complete audit performed. Thus, all financial information for the organization has changed and an amended return has been filed.”