Sigma Phi Epsilon Fraternity Penn Chapter

“From july 1, 2013 through january 31, 2014, the organization used the services of fraternity management association. For the remainder of the fiscal year, the alumni board began overseeing the management duties of the organization.”

“During march 2014, members of the alumni took over the books and records from the managing agent, fraternity management association ("fma")as it became apparent that organization funds were being mismanaged. January 2014 was the final month that the managing agent provided detailed financial information to the organization. Thankfully, the alumni tresurer had insisted over the years that any annual excess of income over expenses be transfered to a separate investment account for management by the alumni board. It is those funds that have kept the organization operational in this transition year. Once the alumni took over the books and records, it was apparent that receivables collected from members had been diverted and that vendors had not be reimbursed for the goods and services they provided to the organization. Through the use of these investment funds, the organization has been able to move forward. This current year form 990 reflects a prior period adjustment to opening equity in the amount of 83,448, as well as the write off of uncollectible receivables, missing cash balances,and unsupported payables totaling 38,693 which have been recorded in expense as loss due to fma activities during the current year.”

“The organization is comprised of members.”

“The members elect their officers from within their membership. The officers usually serve a one year term.”

“All decisions are made by a majority vote of the membership and the alumni corporation. The alumni board along with the chapter make all financial decisions related to the chapter.”

“The acting treasurer reviews this return with the preparer. The return is then distributed to the governing body. A reasonable amount of time is allowed for members to review the return. Once that time has passed, the return is signed by an authorized member and the return is submitted.”

“The form 990 is also available on the internet at www.guidestar.org, as well as available upon request.”

“Operation of recreation & dining facilities for its members.”

“Prior period adjustment relates to discrepancies in prior management company's recordkeeping practices. Line 5, part xi unrealized gains (losses) on investments relate to amount due from alumni board which holds investments on behalf of the fraternity.”