Human Service Charities of America Inc

“Prior to november 2018 when the organization came under the control of community health charities, the organization engaged christian service charities, inc. To provide campaign and management services. Fees paid to christian service charities totalled $30,009 for the year ending 4/30/19. The executive director and cfo listed in part vii of form 990 were full-time employees of the management company, christian service charities, inc., but also officers of this organization. Accordingly, their compensation was reported on the christian service charities form 990.”

“On 10/18/2018 the board of directors of human service charities of america, inc. Amended the existing by-laws of the organization, removing all voting rights from the organization's members. The amendment was passed with a majority vote. On that same day, the board of directors adopted new by-laws that put the organization under the control of community health charities and all existing board members tendered their resignation in writing at that meeting. At that time, the board of directors of community health charities appointed a new four-person board which consisted of three members of the community health charities board and a member of the former human service charities of america, inc. Board.”

“Community health charities is the member with full voting rights.”

“Effective december 2018, community health charities became a member of human service charities with full power to elect or appoint all board members of the governing body.”

“After preparation by an independent cpa, the 990 form is reviewed by the audit committee, chief financial officer and chief executive officer. The 990 is subsequently distributed to the board of directors before filing with the irs.”

“Monitoring and compliance is facilitated by submission on an annual basis of a questionnaire by all board members, disclosing material facts about any potential conflicts of interest and by annual submission of compliance affirmation statement.”

“The organization considers all requests from the public for documents, including those documents ot required to be made public.”

“Consulting: program service expenses 25,876. Management and general expenses 4,566. Fundraising expenses 0. Total expenses 30,442. Design: program service expenses 17. Management and general expenses 3. Fundraising expenses 0. Total expenses 20.”

“As a result of the operational consolidation with community health charities ("chc"), the organization changed the revenue recognition of their administrative fee revenue that they receive for the processing of charitable contributions. Chc believes the collection and disbursement of funds on behalf of contribution campaigns is more appropriately classified as an exchange transaction rather than recognizing these amounts as gross contributions and gross distributions. Previously, these amounts were recognized in the period in which the related campaign pledges were made. In addition, gross contributions pledged by donors and the offsetting gross distributions committed to member charities were previously reported as part of support and revenue on the statement of activies. Pledged contributions not yet collected and distributions not yet paid as of year-end were reported as receivables and payables on the statement of financial position. The administrative fee revenue is now recognized as revenue in the period when the funds are received and processed for distribution. Gross contributions pledged by donors and the offsetting gross distributions committed to member charites are no longer reported as part of support and revenue on the statement of activities. The impact of the change resuled in a reduction to the beginning net assets in the amount of $79,664. If applied retrospectively, the change in net assets for the year ended april 30, 2018, which was reported as $215, would have been reduced by $79,664, resulting in an adjusted change in net assets of negative $79,449.”

“Schedule b is not required as there were no donors whose individual contributions exceeded 2% of the amount on form 990, part viii, line 1h.”