Circus Flora Inc.

“Pam krekeler is the spouse of steve krekeler's brother.”

“Revisions to the bylaws included strengthening the conflict-of-interest policy, changes to roles, responsibilities, and structure of the board of directors, an addition of a requirement for the artistic director to report directly to the board, and provisions for electronic meetings.”

“During the year 2023, management of circus flora, inc. Became aware of fraudulent disbursements totaling approximately $108,000. The board of directors and management performed a thorough review of all financial activity to investigate and quantify the extent of the fraudulent disbursements. Their findings concluded that the fraudulent disbursements were the result of embezzlement by a board officer that occurred over a 10-month period beginning december 2022 through september 2023. Upon discovering the fraudulent disbursements, circus flora immediately engaged legal counsel and terminated the transgressing officer. Several demand letters were sent to the transgressing officer and their legal representative. Circus flora has recovered $15,185.96 of the diverted funds as of the date of this filing. See schedule l for more information. In response to the fraud and to mitigate future risks, the board and management of circus flora have made revisions to the organization's bylaws and policies, conducted a thorough review of its internal controls, and implemented new procedures for financial matters and transactions. Individual access to all financial accounts held by circus flora was reviewed, updated, and documented. Circus flora implemented new procedures for financial matters, including the handling of bank statements and mail, transparency among officers and accounting staff, strengthened record-keeping, internal audits, staff training, and background check requirements for anyone with access to financial accounts. The board and officers continue to monitor and evaluate the safeguards the organization currently has in place.”

“The executive director reviews the 990, then emails a copy of it to the board for review.”

“Board members and staff are to identify potential conflicts, raise the issue to the board, and recuse themselves from relevant decisions. The board then makes a determination on whether the transaction is fair and reasonable to the organization.”

“The process for determining compensation of the organization's executive director is led by the board of directors and authorized by the board president.”

“Governing documents, policies, financial statements, and federal 990 are available upon request.”

“Circus artists, musicians, and crew: program service expenses 285,788. Management and general expenses 0. Fundraising expenses 0. Total expenses 285,788. Security: program service expenses 9,500. Management and general expenses 0. Fundraising expenses 0. Total expenses 9,500. Payroll processing: program service expenses 0. Management and general expenses 2,180. Fundraising expenses 0. Total expenses 2,180. Strategic planning: program service expenses 0. Management and general expenses 0. Fundraising expenses 8,080. Total expenses 8,080.”

“Misappropriation and embezzlement of funds -93,134.”