Francis House Inc.

“The organization receives support services from ltc support services, llc, an unrelated company. These services include oversight, training, regulatory compliance, quality assurance programs, human resource support, marketing and maintenance. Frances house, inc., owns 14.2% of ltc support services, llc, and residential alternatives of illinois, inc., (a subsidiary of frances house, inc.) owns 14.2% of ltc support services, llc. The remaining 71.6% of ltc support services, llc, is owned by unrelated exempt organizations. The organization also has a negotiated arms length administrative services contract with rfms, inc., an unrelated company, to obtain services such as cash management, accounting and financial reporting, payroll and employee benefits, information technology, regulatory matters, and other general business and financial management services as required.”

“During the fiscal year ending march 31, 2017, the organization discovered that an employee of ltc support services, llc., an unrelated company from which the organization receives support services as described in schedule o, part vi, section a, line 3, had been embezzling funds from frances house, inc. The employee used a fraudulent checking account opened in the organization's name without its authorization or knowledge. Upon discovery of the incident, the organization contacted the illinois state police, including the illinois state police medicaid fraud unit, to investigate the extent of this individual's crimes. The individual's employment status was terminated, and the appropriate authorities within various offices and departments in the state of illinois were notified of the incident. An estimated $467,000 of funds were misappropriated from the organization.”

“Each member of the board of directors receives a paper copy of form 990 for their review and comment prior to its filing. The board also reviews in detail each form 990 filed by the organization at its regularly scheduled board meetings. On an annual basis, each board member attends a training session that provides updates on current exempt organization tax compliance matters.”

“All officers, directors and key employees are required to attest to their compliance with the conflict of interest policy on an annual basis. The board of directors reviews all completed conflict of interest statements to determine if any conflicts exist which would require restriction on participation in the governing body's deliberations and decisions in any transactions involving the organization.”

“A paper copy of form 990 is provided upon request. The organization's form 990 is also available via the guidestar.org website and through the attorney general's office of the state of illinois.”

“The organization does not make its governing documents, conflict of interest policy, and financial statements available to the public except through public filing requirements.”

“Approximately one half of the average hours per week estimated for each director is devoted to related organizations listed on schedule r.”

“Ron wilson is employed by rfms, inc., an unrelated organization which has an administrative services contract with frances house, inc. The type of services provided by rfms, inc., are detailed in the schedule o explanation above relative to form 990, part vi, section a, line 3. Ron wilson is the chief financial officer of rfms, inc. His compensation reported on his rfms, inc. Form w-2, box 5 for calendar year 2016 is $173,548. Ron wilson's compensation amount and hours have not been prorated based on time spent for each of the seventeen organizations to whom services are provided by rfms, inc.”

“The process for oversight of the audit and selection of independent accountant has not changed from the prior year.”

“The financial statements of frances house, inc., were audited as part of the consolidated financial report issued for frances house, inc., and subsidiaries.”