Franziska Racker Centers Inc.

“The audit committee or the finance committee reviews the 990 in detail and presents to the board for approval. Prior to filing, a copy of the approved 990 is sent to the full board with an executive summary and a checklist for critical review items.”

“At hire, each staff receives the conflict of interest policy which directs staff to disclose any potential conflicts of interest to their supervisor. Annually, each board member completes a disclosure statement identifying any potential conflicts of interest. Board minutes reflect instances when board members recuse themselves from voting due to potential conflicts of interest.”

“The board of directors sets the compensation of the executive director and it is reviewed annually. The human resources committee over the years has looked at a variety of data salaries of other not-for-profits in the region, salaries of school superintendents with similar budget sizes, the recent survey by the commission, informal reviews within human services networks, and studies by the non-profit times. The full board reviews the executive directors compensation annually. Any changes are decided by the full board.”

“Annual report, governing documents, financial statements and the conflict of interest policy are made available upon request.”

“The organization invested $200,000 for a 6.25% ownership in the for-profit lifeplan cco ny, llc. Lifeplan is a designated care coordination organization under the auspices of opwdd in anticipation of the ultimate transition of services to a medicaid managed care funding model for people with intellectual and developmental disabilities. As required by opwdd, majority ownership in the cco needs to be comprised by not for profit providers with experience in providing supports and services for individuals with idd. Ownership in lifeplan, llc gives the organization two voting seats on the lifeplan board which allows for input and insight in the system-wide transformation into managed care. Secondly, profit sharing from this partial ownership is expected to provide ongoing proceeds to support the mission of the organization. The organization has elected to state their investment in lifeplan cco ny, llc at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments associated with lifeplan cco ny, llc. This measurement will be applied until the investment does not qualify for the measurement election. The organization will reassess at each reporting period whether the investment without a readily determinable fair value qualifies to be measured at cost minus impairment. As of december 31, 2019 and 2018, there was no impairment on the investment. For form 990 annual reporting purposes the organization has included the income from the llc schedule k-1 as a book-tax difference.”

“K-1 income from lifeplan cco ny llc -1,679,359.”

“The organization has not changed its oversight or selection process during the tax year.”