Opencollective Foundation

“In june 2022, ocf became aware that it was a victim of fraud by an unknown person(s) who stole funds from ocf's bank account, which ocf ultimately recovered in august and september 2022. Based on ocf's internal investigation, ocf believes that, several months ago, the unknown person(s) improperly gained access to ocf's bank account through an online third party payment platform. The unknown person(s) used the third party platform to request access to ocf's bank account, which was ultimately granted without ocf's knowledge or consent. Ocf's own software (called open collective) was not penetrated or involved in any way with the fraud. Over the course of several months, the unknown person{s) used their access to ocf's bank account {through the third party payment platform) to withdraw funds from ocf's bank account. The unknown person(s) stole a total of $581,660.44. The unknown person(s) initially evaded detection from ocf's accountants and ocf by withdrawing these funds through multiple relatively small transactions over time that were disguised amongst the thousands of legitimate transactions ocf processed through the same third party platform during the same period. Ocf reported the fraud to its board as soon as we became aware of it in june 2022, conducted an internal investigation, hired outside counsel, and also reported the fraud to law enforcement and the relevant financial institutions. Ocf worked through the existing mechanisms of its bank and the relevant third party payment platform. Those institutions conducted investigations, and ultimately, in two transactions in, august and september 2022, the institutions returned to ocf $563,860.44. Since this incident, ocf has made a transparent public statement about the incident, strengthened its internal controls and training, and is committed to continually improving its systems and maintaining heightened awareness and defense mechanisms against the ever increasing risks of fraud. Ocf remains willing to cooperate with law enforcement to work towards identifying and prosecuting the fraudster to the full extent of the law.”

“The 990 has been reviewed by a group of persons authorized to review financial and audit matters prior to filing. The final 990 (filed with the irs) will be available at the next meeting of the board for inspection. In addition, upon request of any boardmember, a copy will be provided. If there are any material changes, an amended 990 will be filed.”

“The organization enforces the conflict of interest policy by monitoring known relationships, questionnaires, and noting any changes in disclosed information.”

“Financial statements are available on the organization's website, other documents are made available to the public upon request.”

“The process has not changed from the prior year.”

“The following amendments were made primarily to adjust the classification of grant expenses and restate descriptions noted after the filing deadline: part iv: checklist of required schedules marked "no" to line 16 for grants or other assistance to foreign individuals marked "yes" to line 21 for grants or other assistance to domestic organizations marked "yes" to line 22 for grants or other assistance to domestic individuals part v: statements regarding other irs filings and tax compliance line 1b changed to 0 part ix statement of functional expenses change in classification and allocation of grant expenses, liines 1-3, overall increase of $177,947 change in classification and allocation of payroll related expenses, lines 5 & 7, overall increase of $32,800 change in allocation of lines 12-23, no net increase/decrease change in classification and allocation of other expenses. Line 24, overall decrease of $210,747 schedule f was amended and schedule i was added to account for the changes on part ix schedule o was amended for changes in descriptions”