Center for American Progress Action Fund

“The finance department worked directly with an independent accounting firm to prepare the federal form 990 on behalf of the action fund. The finance department managed the process, with close coordination with the legal department. The accounting firm provided a draft federal form 990, which was then reviewed and commented on by the finance department, the legal department and the corporate officers. The updated draft federal form 990 and summary materials were then provided to the audit committee of the board of directors for review and consideration on behalf of the full board of directors. The audit committee was offered the opportunity to discuss the materials with the action fund's staff and the accounting firm that prepared the federal form 990. The audit committee approved the draft federal form 990, and the full board of directors received the approved version of the form before filing with the internal revenue service.”

“The action fund is committed to preventing outside financial interests of its board members, officers or employees from influencing its activities. To that end, it has adopted and enforces policies to prevent conflicts of interest and the appearance of conflicts of interest, including separate policies governing (1) officers, directors, and key employees; and (2) all employees. Compliance with policies governing officers, directors and key employees. Officers and directors receive a copy of the conflict of interest policy annually, and are asked to review the policy and sign an acknowledgement affirming receipt, review and agreement to comply with the policy, as well as understanding that the action fund is a social welfare organization. In addition, officers and directors are asked to complete an annual independence questionnaire, which seeks disclosure of certain relationships, arrangements and transactions in order to determine independence and the existence of conflicts of interest. These policies describe potential conflicts, provide means for disclosure, and provides processes for investigating and resolving potential conflicts.”

“The action fund operates under a cost sharing agreement with the center for american progress (cap), approved by the board of directors of each organization, under which cap employs both organizations' staff members and pays for general and administrative expenses. The action fund reimburses cap for its share of these expenses. Compensation for staff and fellows is set by the compensation committee of cap's board of directors and the action fund relies on the practices put in place by cap's board of directors to ensure employee compensation is not excessive.”

“The action fund makes its governing documents, conflicts of interest policy, and financial statements available to the public. The action fund's governing documents are included in its form 1024, application for recognition of exemption under section 501(c)(4). Changes to its governing documents are filed with its federal form 990. Both forms, as well as its audited financial statements, are made available to the public upon requests received at its washington, d.c. Office. The action fund's federal form 990 and audited financial statements are also made available to the public by way of the online information service, guidestar.org. The action fund's financial statements are audited by an independent accountant on an annual basis. The action fund's audit committee, acting with delegated authority on behalf of the full board of directors, oversees all aspects of the organization's financial statement audit. Each year, the audit committee approves the action fund's external audit firm. At any stage of the audit, the audit committee has the opportunity to meet with the auditor, with or without the action fund's management or staff present. At the conclusion of the audit, the audit committee reviews the audit report, which includes communications to the audit committee required under statement of auditing standards #114. After its review and discussion with the auditor, the audit committee votes to accept or reject the audit.”

“Loss on return of grant funds -20,578.”