Open Water Foundation

“Foundation determined that a former employee diverted organization assets by making direct payments disguised as expenses, inflating reported payroll hours, and using the organizations debit card for personal use. These diversion amounted to approximately $70,000.00 spread over several years. A lawsuit was filed against the former employee in late 2019 and judgement was awarded in 2020 in the Foundations favor in excess of the diverted funds. The Foundation has taken the following corrective actions: 1) reduced the need for administrative staff by relying on professional services, 2) hired an outside accounting service to maintain accounting records and prepare IRS tax forms, and 3) implemented an improved electronic timesheet system. The Foundation is in the process of implementing the following additional corrective actions: 1) add additional Board member with financial oversight experience, 2) implementing additional procedures for expense authorization and reimbursement, payroll, and accounting oversight, 3) contracting for an audit from an external accountant.”

“Board of Directors reviews the 990 and related financial statements prior to approval.”

“The Board is required to acknowledge in writing each year that they have no conflicts of interest, and divulge potential conflicts of interest.”

“CEO and CTO salary was reviewed by the original Board of Directors and industry advisory group and is regularly reviewed.”

“Salaries for senior level staff and other staff are determined based on market review of comparable positions.”

“Organizational documents are available to the public upon request.”

“Other services includes payments to subcontractors that complete project work for Open Water Foudnation.”