Capistrano Terrace Organization Inc

“Consistent with Article 10 of CTO Bylaws captioned 'Inurement and Conflict of Interest', CTO regularly and consistently monitors and enforces compliance with CTO's conflict of interest policy modeled after the "Sample Conflict of Interest Policy" contained in Appendix A to the Instructions to IRS Form 1023. Article 10 contains detailed procedures for disclosure, adjudication, monitoring, and enforcement of conflict of interest polices, including but not limited to a requirement that officers and directors sign an annual statement that they have received a copy of the conflict of interest policy, understand the conflict of interest policy, and agree to comply with the conflict of interest policy.”

“Prior to the filing of CTO's 2024 Federal and State Returns, a copy of said returns was be provided to the Members of its Board of Directors, who were asked to review said returns and given an opportunity ask any questions they may have with respect to said returns.”

“Enumerated prohibitions or limitations on the power of CTO Directors are set forth in Section 4.4 of CTO Bylaws as well as Article 11 of CTO Bylaws; power or authority pertaining to said areas of prohibition or limitation are expressly delegated to or reserved for Membership.”

“The CTO Board of Directors created an 'Executive Committee' pursuant to and consistent with the provisions of Article 6 of the CTO Bylaws; the Executive Committee is empowered to act on behalf of the Board, consistent with and subject to the provisions of Articles 2, 4, and 7, of the CTO Bylaws, subject to the limitations of Section 6.1.”

“Pursuant to Section 4.5 of CTO Bylaws, Directors are elected by Members for a Two (2) Year Term.”

“Per Section 3.1 of CTO Bylaws, all homeowners and residents within Capistrano Terrace Mobilehome Estates (the "Park") are become Members of CTO upon the payment of dues and assessments as determined by the Board of Directors.”

“CTO Directors and Officers work on a volunteer basis for no compensation.”

“No, CTO is NOT aware of any diversion of the organization?s assets in 2022. However, In the course of reviewing its 2022 and preparing its 2023 tax returns, CTO encountered inconsistent accounting practices and account naming conventions between CTO?s Property Manager in 2022, Coast Resource Management, and its property manager in 2023 Property Manager, Britcher, Anderson, Davis. In an abundance of caution, to ensure that no diversion of assets has taken place, CTO's Board has retained a forensic accountant to examine whether said inconsistent accounting practices and account naming conventions were an attempt by either property manager to divert assets.”

“Enumerated prohibitions or limitations on the power of CTO Directors are set forth in Section 4.4 of CTO Bylaws as well as Article 11 of CTO Bylaws; power or authority pertaining to said areas of prohibition or limitation are expressly delegated to or reserved for Membership.”

“No, CTO is NOT aware of any diversion of the organization?s assets in 2023. However, In the course of reviewing its 2022 tax returns and in the course of preparing its 2023 tax returns, CTO encountered inconsistent accounting practices and account naming conventions between CTO?s Property Manager in 2022, Coast Resource Management, and its property manager in 2023 Property Manager, Britcher, Anderson, Davis. In an abundance of caution, to ensure that no diversion of assets has taken place, CTO's Board has retained a forensic accountant to examine whether said inconsistent accounting practices and account naming conventions were an attempt by either property manager to divert assets.”

“Per Section 4.6 of CTO Bylaws, Directors serve without compensation; however, per Section 5.8 of CTO Bylaws, CTO Officers may receive compensation, for "services actually rendered that related to the performance of the charitable or public purposes of the Corporation" subject to Board approval in accordance and compliance with Section 5.8 and Article 10 captioned 'Conflict of Interest Avoidance Procedures'.”

“Capistrano Terrance Organization, Inc. ("CTO") provides affordable housing to low and moderate income individuals and families.”

“This return was prepared under the guidance and supervision of Attorney Rebekah Parker, California SBN 143674; Ms. Parker serves as Corporate Counsel for Capistrano Terrace Organization, Inc. Ms. Parker can be reached at (213) 268-2918. Ms. Parker is herein authorized by CTO Board President Sally Rather to respond to any questions or requests for supplemental information.”

“Disclosure of Ownership Claim to Real Property Located at 32802 Valle Road San Juan Capistrano, CA 92675: This return has been prepared and is herein being submitted based on the fact that title to the real property located at 32802 Valle Road, San Juan Capistrano, CA 92675 (the ?Valle Road Property?), is held by Capistrano Terrace Holding Company, LLC., presently treated as a disregarded entity; however, it should be noted that it is Ms. Rather?s position (as well as the position of many Park residents) that equitable title to Valle Road Property rests with the individual homeowners of Capistrano Terrace Mobilehome Estates. With that said, this issue or controversy has no effect or barring on CTO?s commitment to operating under terms of its Mission Statement and non-profit charter.”