Byte Back Inc

“IN 2023, THE BOARD OF DIRECTORS BECAME AWARE OF A SIGNIFICANT DIVERSION OF THE ORGANIZATION'S ASSETS, SPECIFICALLY, THE CEO's UNAUTHORIZED DISTRIBUTIONS FROM THE RESERVE FUND TO PAY FOR OPERATIONAL EXPENSES AND THE ORGANIZATION'S USE OF RESTRICTED FUNDS WITHOUT SUFFICIENTLY DOCUMENTING THOSE USES TO RECEIVE FUNDER REIMBURSEMENT. THE BOARD OF DIRECTORS PUT AN IMMEDIATE STOP TO THOSE PRACTICES ONCE IT LEARNED OF THEM AND PLACED THE CEO UNDER A PERFORMANCE REVIEW. THE BOARD OF DIRECTORS SUBSEQUENTLY MADE NUMEROUS, BUT ULTIMATELY UNSUCCESSFUL, ATTEMPTS THROUGH THE END OF 2023 AND THE BEGINNING OF 2024 TO RESTORE THE ORGANIZATION'S FINANCIAL HEALTH BY CURTAILING EXPENSES, DEVELOPING NEW FUNDING SOURCES, AND PROVIDING CURRENT FUNDERS WITH DETAILED EXPENSE REPORTS.”

“In prior years, drafts of the 990 were first reviewed by the finance committee accompanied by the director of finance and external accounting firms who contributed to the preparation of the 990. With the current size of the board of directors (7 directors since nov 2024), the board no longer has a finance committee (or any other committee). Thus the plan is for the entire board to review the 2024 990 together and share questions and proposed revisions with jitasa, the external accounting firm who is preparing the 2024 990.”

“Officers, directors, and key employees were informed when they joined the organization of the policy and reminded prior to annual audit as well as randomly throughout the year.”

“An independent organization conducted an executive compensation survey as part of the ceo search process in the summer of 2021, following the ceo's predecessor's resignation in april 2021. The results of that study were reviewed by the executive committee and the executive search committee, and the full board voted to adopt the survey's compensation recommendations when constructing the ceo compensation package. That was the compensation package offered to, and accepted by, the ceo when he was hired in september 2021.the officers of the organization, like all other board members, are non-compensated volunteers. The ceo made hiring and compensation decisions for the rest of the organization.”

“Financial and governing documents are available to the public upon reasonable request. A copy of the form 990 can be accessed on both the irs website and guidestar.”

“Contract services - temporary services, grantwriting, fundraising, database, hr, job postings, instructors, and other. Professional development - staff.”