Paul'S Pantry Inc

“Organization's process to review form 990 the executive director and treasurer review the form 990 before it is filed. The full board of directors do not receive a copy of the form 990 before its filing.”

“Compensation process for top official annually, the board of directors reviews compensation data for directors in similar organizations when determining the director's annual salary. The director and other management performs annual reviews and sets compensation levels for all other employees.”

“Governing documents disclosure explanation the board receives a draft copy of form 990 that was prepared by their outside accounting firm to review before filing. Upon review and acceptance by the board, the return is filed with the irs.”

“Effective october 1, 2013, the organization changed its method of accounting from the modified cash to accrual method of accounting.”

“The organization has not changed its over sight or selection process during the current year.”

“We are amending this form 990 for the year ended 9/30/14. We are requesting any late filing penalties & assessments be waived due to reasonable cause and uncontrollable circumstances by pauls pantry, inc. Pauls pantry, inc is required to have an annual audit of its financial statements and accounting operations. After the 2012 year end (ie; the period 10/1/12 to 9/30/13) the board of directors accepted bids for the organizations 2013 accounting, audit and tax preparation work (ie; the period 10/1/13 to 9/30/14). The board accepted the lowest bid from a cpa who was a sole practitioner, and experienced in non-profits, with the perception this was the best option for the organization. However, it turned out to be a mistake, and was out of their control. The sole practitioner made many promises, performed accounting and field work from time to time, and communicated to the board, after numerous telephone calls from the executive director, that everything was fine and being taken care of. After the second extension of time for preparation of the 2013 form 990 was filed, the board had to take action. The cpa hired to perform the 2013 year end accounting, audit and tax function was not performing the required duties he agreed to in the engagement letter signed with him. On august 17, 2015, the cpa informed the board for pauls pantry, inc that he would not be able to finish his duties of performing an audit of their financial statements or preparation of their 2013 form 990. At this point it was too late to timely file an accurate form 990. The board then turned to our firm, hawkins ash, cpa's to and perform the required filing requirements for the 2013 year end. The board for pauls pantry, inc acted with due diligence when hiring the experienced cpa to perform their year end accounting and tax work. They relied on his professional credentials and his presentation that he was more than qualified to perform the required duties and meet all deadlines. The cpa continuosly misled them by claiming everything was under control. However, as the second extended due date approached for filing the form 990, it became apparent to the board there were problems. The board pressed the cpa, and he responded by turning all records back to pauls pantry, inc, and withdrawing from the job. Based on this sequence of events, the board used due diligence in trusting the cpa and relying on his continuous assurance that he would perform all required duties. When the cpa unexpectedly withdraw from the agreed procedures after the second extension due date of 8/15/15, the board again acted with due diligence in hiring hawkins ash, cpa's to file their form 990. We request no penalties or assessments be made against pauls pantry, inc.”