The Kindness Fund

“All officers and directors are employees of california pizza kitchen.”

“On or about february 2014, certain kindness fund (kf) directors and outside advisors discovered financial discrepancies with kf's bank accounts. Such directors and outside advisors requested that the senior director of loss prevention of california pizza kitchen (cpk), dave bujol, conduct an investigation. Cpk has a close working relationship with kf based in substantial part upon kf's stated exempt purposes. Mr. Bujol examined various bank records, receipts and related documentation and determined that there were questionable charges and expenses incurred with respect to kf. On march 10, 2014, cpk, upon request of kf's then-acting board of directors, referred the matter to the united states secret service for independent investigation. United states secret service special agent david reynolds promptly opened an investigation, which investigation included an interview of a former director of kf and ex-employee of cpk, rochelle means. Special agent reynolds informed kf's current board of directors that he filed charges against ms. Means related to her alleged misappropriation/embezzlement of approximately $136,265 of charitable assets (cash) from kf and that ms. Means plead guilty to those charges. Agent reynolds informed the kf board that ms. Means will be sentenced on or about august 24, 2015. On behalf of kf, cpk has consulted with its outside tax counsel, manatt, phelps and phillips, llp, and engaged moss adams, llp (its outside cpa firm) to assist with filing tax returns, making appropriate disclosures and pursuing corrective action to recover the misappropriated funds. Cpk filed a claim with its insurance carrier, liberty mutual, to recover $36,029 of the misappropriated funds (i.e., the amount exceeding the applicable insurance policy's $100,000 deductible) on behalf of kf. Liberty mutual approved the claim and tendered a check to kf for $36,029. Cpk also will seek to recover the balance of the misappropriated funds by seeking monetary restitution from ms. Means at her sentencing hearing on or about august 24, 2015. Going forward, kf has elected a new board of directors with greater experience in managing corporations, including nonprofit governance and legal compliance. Kf also has implemented comprehensive financial and accounting controls to better protect its charitable assets. Finally, kf is exploring all other appropriate remedial measures.”

“The return is reviewed by the treasurer prior to filing.”

“Each director, officer, and committee member annually signs (1) a disclosure statement, and (2) a statement that affirms that such person (i) has received a copy of this conflict of interests policy, (ii) has read and understands the policy, (iii) has agreed to comply with the policy and (iv) understands that the corporation is a charitable organization and that, in order to maintain its federal tax exemption under code section 501(c)(3), the corporation must engage primarily in activities which accomplish one or more of its tax-exempt purposes.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”