Detroit Riverfront Conservancy Inc.

“Detroit riverfront conservancy engages an outside cpa firm to prepare the form 990. The drfc audit committee reviews the full form 990. The governing board is provided access to a public disclosure copy of the return prior to filing.”

“Each voting member of the board shall sign a statement at or before the conservancy's annual meeting confirming the director understands and agrees to comply with the conflict of interest policy and shall complete and submit to the conservancy an annual questionnaire regarding his or her interest in matters in which the conservancy is involved. The statements are then reviewed by the governance coordinator and any significant items are discussed. A director in conflict may not participate in, or be present during, any deliberations or vote of the board of directors or any committee of the board of directors on the transaction or arrangement in which the interested person has a financial interest, whether or not his or her financial interest is in conflict with the conservancy's best interests.”

“The board used a process of benchmarking other similar non-profit organizations in the area to determine the compensation of the president and chief executive officer and other top management officials. The organization uses an outside firm to perform a comprehensive review of compensation for key employees as they are hired.”

“Form 990 is available by written request to the organization.”

“On may 14, 2024, the conservancy placed the organization's cfo, on administrative leave after discrepancies with financial documents were identified and thereafter, on may 31, 2024, the chief financial officer's employment was terminated for cause. In june of 2024, the conservancy engaged quatrro business support services as an outsourced accounting service provider to oversee its financial information. A forensic accounting firm was engaged to investigate and report on the financial discrepancies and a law firm has been engaged to assist with civil litigation against the former cfo. The conservancy also engaged a new independent audit firm to complete the financial statement audit for year ended december 31, 2023.”

“Mark c. Wallace, ceo, resigned on may 31, 2024 and employment of william smith, cfo, was terminated on may 31, 2024. Neither individual can be directly contacted at the organization's address via mail. However, management has the ability to contact both individuals if necessary.”

“On may 14, 2024, detroit riverfront conservancy ("conservancy") placed the organization's chief financial officer on administrative leave after discrepancies with their financial documents were identified, and thereafter, on may 31, 2024, the chief financial officer employment was terminated for cause. Since the discovery of fraud, leadership has focused on continuous improvement and advancement of the organization's financial management. In june of 2024, the conservancy engaged quatrro business support services as an outsourced accounting service provider to oversee its financial information. A forensic accounting firm was engaged to investigate and report on the financial discrepancies and a law firm has been engaged to assist with civil litigation and act as a liaison between the conservancy and the federal prosecutor assigned to the criminal case. The conservancy also engaged a new independent audit firm to complete the financial statement audit for year ended december 31, 2023. Contracting with these new partners is part of a series of significant and strategic improvements being made to enhance financial integrity, transparency, and operational efficiency. In addition, a new ceo, interim-cfo, and new accounting department have been brought in to reinforce segregation of duties and strengthen internal controls. The financial statement audit for year ended december 31, 2023 was issued in october of 2025. The conservancy, with assistance from its forensic accounting firm and audit firm, have identified a material misappropriation of assets committed over a period of time of more than 10 years. The issued financial statements for the year ended december 31, 2023 are free from material misstatement and reflect the diversion of assets to accurately represent the conservancy's financial information.”

“2023 fraud loss -4,680,016.”

“On may 14, 2024, detroit riverfront conservancy ("conservancy") placed the organization's chief financial officer on administrative leave after discrepancies with their financial documents were identified, and thereafter, on may 31, 2024, the chief financial officer employment was terminated for cause. Since the discovery of fraud, leadership has focused on continuous improvement and advancement of the organization's financial management. In june of 2024, the conservancy engaged quatrro business support services as an outsourced accounting service provider to oversee its financial information. A forensic accounting firm was engaged to investigate and report on the financial discrepancies and a law firm has been engaged to assist with civil litigation and act as a liaison between the conservancy and the federal prosecutor assigned to the criminal case. The conservancy also engaged a new independent audit firm to complete the financial statement audit for year ended december 31, 2023. Contracting with these new partners is part of a series of significant and strategic improvements being made to enhance financial integrity, transparency, and operational efficiency. In addition, a new ceo, interim-cfo, and new accounting department have been brought in to reinforce segregation of duties and strengthen internal controls. The financial statement audit for year ended december 31, 2023 was issued in october of 2025. The conservancy, with assistance from its forensic accounting firm and audit firm, have identified a material misappropriation of assets committed over a period of time of more than 10 years. The issued financial statements for the year ended december 31, 2023 are free from material misstatement and reflect the diversion of assets to accurately represent the conservancy's financial information.”

“Form 990 was amended to agree to the audited financial statements that were issued in october of 2025. The delay in issuing the financial statement audit for year ended december 31, 2023 was due to the identification of a material misappropriation of assets committed by the former ceo over a period of more than 10 years. The following parts of the form 990 have been updated from the originally filed form 990 in november of 2024: - part iv, line 12a: amended to be yes as the conservancy has now obtained independent audited financial statements. - part viii: several line items were amended to reflect the issued audited financial statements - part ix: several line items were amended to reflect the issued audited financial statements - part x: several line items were amended to reflect the issued audited financial statements - part xi: line 8 and line 9 were amended to reflect the prior period adjustment and fraud loss included in the issued audited financial statements - part xii, line 2b: amended to be yes as the conservancy has how obtained independent audited financial statements - schedule a, part ii: amended to properly reflect the changes made to part viii - schedule b: amended to reflect revenue recognized in the audited financial statements - schedule d, part v, vi, ix, x, xi, xii: amended to reflect the issued audited financial statements - schedule m: amended to reflect revenue recognized in the audited financial statements”