Berkeley Herbal Center

“The 990 is reviewed by selected members of the board of directors and then distributed to all board members prior to filing.”

“The agency's bylaws address conflicts of section 3. Conflict of interest avoidance procedures (a) duty to disclose. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement. (d) violations of the conflicts of interest policy. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.”

“The board of directors decide the salary and benefits of the executive director of the agency. The board, which consists of independent members, have assessed fair and equitable compensation based on compensation of managers of agencies of similar size, field and location to berkeley herbal center.”

“Wages and salaries of staff are determined by the executive director, with oversight of the board of directors. The wages and salaries are based upon compensation of employees of agencies of similar size, field and location to berkeley herbal clinic.”

“Governing documents are available upon written request to the agency”

“The agency conducted a thorough review of its books in 2022 with the help of an experienced nonprofit accounting professional. There were multiple discrepancies found including the expensing of inventory as was purchased, rather than adding it to inventory. Changes on this 990, based on the analysis are as follows: 1) gross income is decreased by 3,615 from 403,921 to 400,306 2) total expenses are increased by 14,167 from 376,431 to 390,598 3) net income is decreased by 17,782 from 27,490 to 9,708 4) assets are increased by 145,981 from 178,200 to 324,181. 4a) included in asset increase is an increase in inventory from by 106,611 from 15,775 to 122,386. In the past, the agency had expensed inventory upon receipt in error. The balance as now stated is based on the amount actually on hand. 5) liabilities are increased by 37,748 from 87,278 to 125,026. The increase in inventory is from years prior than 2020 and is reported as a net asset adjustment. There were additional changes prior to 2019 that resulted in a change in net assets of 19,405. This is also reported as a net asset adjustment.”

“Berkeley herbal center is approved by the irs as a 501c3 as a school described in section 170(b)(1)(a)(ii). The agency does operate a school and the majority of their income and activities are related to that mission. The focus of school is to teach and disseminate eduational material relating to the identification and medical uses of herbs. In that vein, the agency also operates a clinic that provides counsel to the the homeless and low income public in the use of herbs. This activity has been reported on the 990 reports for many years, but the board is unaware of it ever being reported to the irs as a new activity.”

“Branding services 25,045 0 0 adjunct instructors 25,983 0 0 total 51,028 0 0”

“Difference of prior net assets 19,405 inventory expensed in error 106,610 total 126,015”