Hope Community Inc.

“In or about february 2016, hope community, inc. ("hope") became aware that during the period june 2014 to february 2016, its former human resources manager had been manipulating hope's payroll system by creating false overtime and vacation pay attributed to various employees but diverted into accounts she controlled. She was subsequently terminated by hope, indicted by the new york state attorney general's office, pled guilty to theft of $424,694 and sentenced. Upon becoming aware of the diversion of funds, hope retained an independent accounting firm to conduct a forensic audit.in addition to terminating the employee, hope terminated the professional employer organization that handled its payroll accounts. Hope also filed a claim with its employee theft insurance policy carrier and anticipates that most or all of the diverted funds will be recovered under the policy.”

“The completed form 990 was submitted to all board members via u.s. Mail or electronic mail. Prior to submission to the irs, the 990 was approved by the president of the board of directors. Any questions or concerns raised by the board of directors are addressed to the chief financial officer or the executive director.”

“The board of directors require annual certifications by all members and key members of management. Members with conflicts are required to recuse themselves from deliberation and voting on conflicted issues.”

“The board of directors review and approve all compensation for the executive director and chief financial officer.this was last performed in november 2015.”

“Financial statements are available to the public through the new york state charities registration bureau.”

“Other adjustments 93,890. Loss due to defalcation -351,226.”

“The process has not changed from the prior year.”