Congressional Hunger Center Inc

“During the year ended september 30, 2016, the center discovered a fraud committed by a former employee that resulted in a total loss of $1,202,334 over the course of several years. The fraud loss totaled $432,994 for the year ended september 30, 2016, and is included in the accompanying statement of activities. The center is seeking legal action against the former employee and other responsible third parties. Management believes that the fraudulent activities prior to the year ended september 30, 2016, may have involved misappropriation of funds provided by usda. At the present time, the amount of any potential loss associated with funds provided by usda is not estimable and accordingly, the center has not accrued a contingent liability on its financial statements as of september 30, 2016.”

“Once the draft version of the federal form 990 is provided by an independent accounting firm, the executive director reviews with an internal accountant. Upon approval it is then shared and discussed with the treasurer. The draft version of the federal form 990 is distributed to the full board of directors via email before it is filed with the internal revenue service.”

“At the board of directors' meeting, the officers, directors, and key employees are required to disclose any real or perceived conflicts of interest on an annual basis. Board members are required to sign a conflict of interest form which is retained for record at the center. Upon disclosure or discovery that a board member or staff member has a potential conflict of interest, due diligence is conducted by management. The individual in question would be given an opportunity to present their case to the executive director who would make recommendations to the executive committee of the board on how best to proceed with the matter. In the event that the recommendation is removal of the individual, the individual would be given an opportunity to present their case to the board of directors. The executive director would seek a resolution from the board of directors to determine whether or not the individual should be seperated from their role at the center. The resolution would be documented and kept on file at the center.”

“It is policy and practice of the chc to annually evaluate the work performance of the executive director. Compensation of the executive director is determined after completion of the evaluation. The evaluation of the executive director is conducted by the executive committee of the board using the comparable data from the federal form 990s of similar organizations and through consulting with the hr departments of the peer organizations. The salary increase is voted upon and confirmed by electronic message. The executive director's compensation was reviewed in july 2015 as part of her initial offer. The executive director's salary has not changed since then.”

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

“FRAUD LOSS -432,994.”