Secret Harbor

“The Form 990 is reviewed by the Chief Executive Officer (CEO) and General Receiver (Elliot Bay Asset Solutions) prior to filing.”

“The conflict of interest policy is mentioned periodically in staff and board meetings. Management clarifies what is considered a conflict of interest and emphasizes the importance of raising any issues to management for resolution.”

“The Organization uses studies from The National Children's Alliance (NCA) as a guideline in setting executive compensation. The Board of Directors reviews and approves the compensation for the President and Chief Executive Officer (CEO).”

“The documents are made available upon written request.”

“The Organization is a defendant in multiple lawsuits filed in both state and federal court alleging historical misconduct. The plaintiffs' claims, in the aggregate, seek damages exceeding $100 million. The Organization has incurred significant legal expenses in connection with such lawsuits. All settlements to date have been paid by the Organization's insurance carriers; however, there is no assurance that insurance coverage will be sufficient to cover all future settlements or judgments. In May 2025, subsequent to year-end, another similar lawsuit was filed against the Organization. The Board of Directors voted to file for receivership as a means to stabilize the Organization's financial position, address outstanding legal matters, and preserve its ability to continue operations. On June 13, 2025, the Superior Court of Skagit County (the Court), Washington appointed Elliott Bay Asset Solutions, LLC as General Receiver (the Receiver) over all assets of the Organization pursuant to RCW Chapter 7.60. The Receiver has been granted authority to take possession of and manage the Organization's assets, operate programs in the ordinary course of business, pay necessary expenses, collect receivables, sell assets, and address outstanding legal matters, all under the supervision of the Court. The Receiver decided to shut down all operations effective July 31, 2025, the date at which point existing insurance coverage terminated, due to, among other factors, the Organization's inability to secure reasonably priced insurance coverage moving forward.”

“Before the 2024 audit was finalized, the Organization was closed. Only the CEO and General Receiver (Elliot Bay Asset Solutions) were available to address audit conclusion matters.”