Hospice House and Support Care of Williamsburg Inc.

“Regrettably, it was discovered that a now former employee of the organization embezzled funds from the organization of approximately $3,000 in tax year ending june 30, 2019 and approximately $76,444 in tax year ending june 30, 2020 without the knowledge of the organization. The organization has filed a claim with its insurance for $79,444 and expects to be reimbursed for all but $5,000 of the embezzled funds because of the organization's deductible for such claims. Upon confirmation of the wrongdoing, the organization terminated the employment of the offending individual and contacted legal authorities and its insurance carrier and financial institutions. The offending employee's access to the organization's accounts and information was severed immediately and applicable changes were made to protect the organization's accounts and information. The offending former employee was not a director, officer, manager, key employee, nor disqualified person of the organization. In response to the incident, the organization has had its books and records audited by an independent auditor, worked with investigators to determine the extent of the incident and how it occurred, and notified affected parties. In accordance with the advice of its auditor, the organization has implemented and is in the process of implementing changes to its internal processes and controls to create better oversight and to establish more regular, timely, and detailed reviews by the organization's management, directors, and officers. These changes include, but are not limited to, outsourcing the organization's bookkeeping to a third-party professional management company, establishing regular review and reporting periods and procedures with multiple checks by different individuals, including managers, officers, and board members, limiting authority over financial accounts to select managers and officers, and institutionalizing these protections and reviews for future management, officers, and directors of the organization. Although the incident was unfortunate, the organization believes that its governance and management controls are stronger and better established going forward.”

“Organization's process to review form 990- the tax return is reviewed by the staff accountant, executive director, treasurer, and the board of directors.”

“Enforcement of conflicts policy- conflict of interest policy is enforced by board of directors.”

“Compensation process for top official- the executive director's compensation is discussed and reviewed annually by the executive committee of the board of directors.”

“Guidestar, available upon request.”

“There has been no change in the committee's responsibility for oversight of the audit.”