Northeast Michigan Community Service Agency Inc.

“An independent CPA firm prepares the Form 990 and provides the agency with a draft copy for review by the audit/finance committee. All board members are also provided a copy of the draft Form 990. After the committee has reviewed the draft, the Form 990 with changes (if necessary) is presented to the full board of directors for approval. All changes addressed by either the committee or the full board are then shared with the CPA firm. The CPA firm then finalizes the Form 990, with the changes made and returns the finalized copy to the agency for final review. Agency verifies the changes and the Executive Director/CEO signs Form 8879-EO authorizing the CPA firm to e-file the finalized Form 990.”

“On an annual basis each board member is required to submit a conflict of interest disclosure statement attesting that he/she has read and agrees to comply with the agency's nepotism and conflict of interest policies and further attesting that he/she is not involved in any activities that may be considered a conflict, except as identified. The statements are dated and retained by the agency's board secretary. Board members exclude themselves from voting on any board items where a conflict of interest has been disclosed, as applicable.”

“The wage and compensation committee of the agency conducts a wage comparability study every five (5) years (with the results presented to the board of directors). All positions/classifications are reviewed and compared to like entities through studies such as the salary and benefit survey for Head Start, Michigan Non-Profit Agency as well as internet based services such as Salary.Com. In addition, the Executive Director/CEO's salary is voted upon by the Board of Directors and the terms and conditions are contractually bound. Other positions such as the Chief Financial Officer, and the Early Childhood Services Director also have contracts, terms of which are negotiated and governed by the Executive Director/CEO. Their contracts usually mimic the increases afforded to regular employees.”

“Northeast Michigan Community Service Agency, Inc.'s governing documents, conflict of interest policy and financial statements are available upon request and also disclosed annually in the organization's annual report.”

“Since the fiscal year ended September 30, 2014, NEMCSA has accounted for any excess revenue over expense related to the HCBS Waiver Program as deferred revenue. The Waiver Program is primarily funded by Medicaid and NEMCSA is funded on a capitation rate. After obtaining some clarifying information on this contract in 2017, NEMCSA determined that the funds earned under the Waiver Program should not have been reported as deferred revenue but rather should have been accounted for as net assets each year. As a result of this determination, NEMCSA has restated their net assets for the impact of the prior year's income earned under the contracts that was deferred. Restatement - $5,698,166”