Concept 7 Inc

“The Form 990 is first reviewed by the accounting manager. Once this review is completed and any/all changes are incorporated, it is reviewed by the CEO. The final draft is reviewed by the audit team comprised of two board members any and all additional changes are reviewed once more and a final document is published.”

“The conflict of interest policy is signed by the members of the Board, CEO, and key employees. The signed conflict of interest form is reviewed by Human Resources. If there is an apparent conflict of interest it is investigated by the governing committee. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the conflict and be given the opportunity to disclose all material facts. After disclosure of the conflict and all material facts, and after any discussion with the interested party, the committee will determine if a board determination is required. If necessary the board shall decide if a conflict of interest exists. An interested party may make a presentation at the board meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. After exercising due diligence, the board shall determine whether the organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to conflict of interest. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement. If the board 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 members response and after making further investigation as warranted by the circumstances, the board determines the member has failed to disclose as actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.”

“For the Chief Executive Officer (CEO), a review committee is appointed by the President of the Board. Data on compensation is presented to the committee from various sources and members of the committee may request information from other nonprofits with a similar agency. The review and compensation decision of the committee is brought before the full Board for their discussion and approval and the Chair of the committee presents the decision to the CEO for comment and discussion. At that time, the President and the CEO may also discuss goals for the coming year. Part VI, question 15(b) was answered "no" as there are no other officers or key employees as defined in Form 990 instructions received compensation during the year.”

“Organization documents made available to the public upon request, in office, GuideStar, and when submitted with all grants.”

“Contract settlements -87,678.”

“Concept 7's grants and contracts are subject to inspection and audit by the appropriate governmental funding agency. The purpose is to determine whether program funds were used in accordance with their respective guidelines and regulations. The potential exists for disallowance of previously-funded program costs. The ultimate liability, if any, which may result from these governmental audits cannot be reasonably estimated and, accordingly, Concept 7 has no provisions for the possible disallowance of program costs on its financial statements. As the result of an audit by the California Department of Social Services during the fiscal year, Concept 7 recorded a settlement liability of $87,678.”