Gales Creek Camp Foundation for Children with Diabetes

“Two board of directors are brothers.”

“In july 2016, we discovered employee fraud resulting in the theft of money through issuance of a falsified checks, theft of checks intended for the organization, and fraudulent record keeping. Roughly $600,000 was diverted. Along with third-party professional advisers familiar with non-profit fraud, the organization has completely restructured its financial management, including segmenting accounting duties, adding signature authority policies on all accounts, creating a finance committee, and adopting fiscal best-practices. The local law enforcement agency has investigated the incident and the employee is expected to be formally charged this year. Some of the lost assets have been recovered through insurance. We estimate that additional assets will be recovered through restitution, and we have initiated a civil lawsuit against a banking institution we believe was negligent in honoring fraudulent checks.”

“A draft of the annual 990 is distributed via email to all members of the board of directors. Members are give 7 days to review and comment on the 990 before submission. Changes may be made based on board concerns.”

“Board members and management are required to disclose any potential conflicts on an annual basis.”

“Only the Executive Director is paid, and her compensation was set at hiring 12 years ago. She has received increases over the years and is compensated at a rate comparable with other organizations of similar size and focus.”

“Certain financial data is available on our public website, the rest is available upon request.”

“They are available upon request.”

“The adjustment was made as part of reconciliation of fixed -452,510. asset accounts due to the employee fraud. See schedule O on page 31 for more information about the incident.”