San Gabriel Valley YMCA

“John hsu and anne ma have a business relationship.”

“Beginning in 2014, the YMCA of Orange County provided administrative services to the San Gabriel Valley YMCA for a fee. In 2015, the Board of Directors of the San Gabriel Valley YMCA began the process of liquidating the organizations assets and transferring the right to service participants to the YCMA of OC.”

“A FINAL DRAFT OF THE FORM 990 IS PROVIDED TO THE ORGANIZATION BEFORE IT IS FILED AND IS REVIEWED BY MANAGEMENT OF THE YMCA-OC. THE ENTIRE DRAFT WILL BE PROVIDED TO THE BOARD FOR REVIEW BEFORE IT IS FINALIZED. Jeff McBride, CEO of the YMCA of OC, will sign the approved return on behalf of the chairman of the Board, as Acting CEO. However, the San Gabriel Valley YMCA Board reviews and approves of the return prior to Jeff signing it.”

“San Gabriel Valley YMCA - Conflict of Interest Policy Why is a Conflict of Interest Policy Important? 1. Key staff and volunteers must make decisions based on the best interests of the YMCA, not decisions that, directly or indirectly, further their own interests or the interests of a third party. 2. This duty of loyalty is a legal duty that is imposed under state and federal law. 3. A conflict of interest policy protects both the YMCA and its leaders by assuring that potential conflicts are timely and appropriately addressed. 4. The IRS Form 990 asks whether your organization has a written conflict of interest policy. How do Potential Conflicts Arise at YMCAs? 1. A potential conflict of interest can arise when the YMCA is considering taking some action that also benefits the private interests of an influential person at the Y (i.e. board and committee members, key employees). For example, a contract with a company owned by a Board member, or his/her family member, could create a conflict of interest. 2. Even if the person thinks he/she can be impartial, it is important to report the potential conflict so that the YMCA is aware of it before any action is taken. Resolving Potential Conflicts of Interest 1. It is very important that any potential conflict be disclosed and resolved before the board takes action on the matter where a conflict may exist. 2. Typically, disclosure is made as a written response to an annual "Conflict of Interest Questionnaire". Use the Disclosure Questionnaire to inquire about potential conflicts on an annual basis. 3. When potential conflicts are disclosed, have an independent body evaluate whether or not they pose a true conflict. 4. This evaluation should not involve the interested party. 5. The independent review and the decision reached must be documented in the minutes of the meeting. Conflicts Aren't Wrong; Not Reporting Them Is 1. Because YMCA leaders are also often business leaders who have relationships with the YMCA, it is not unusual for potential conflicts of interest to occur. 2. It is important to report all potential conflicts of interest so that the YMCA has complete transparency when making decisions. 3. If a YMCA makes a decision without knowing all the facts, it can lead to public embarrassment, legal penalties and loss of public trust. 4. There is nothing wrong with having a conflict of interest; it is wrong not to disclose it. 5. A reporting procedure and annual questionnaire encourages YMCA leaders to be forthcoming in notifying the YMCA of any potential conflict of interest so that the YMCA's integrity and reputation are not harmed by a perception of inappropriate conduct. Duty of Continuous Reporting 1. All YMCA leaders must understand that the "duty to disclose" is continuous. 2. If any potential conflict of interest arises after the Questionnaire has been submitted, it should be disclosed in writing to the appropriate person at the Y. 3. Failure to timely and adequately respond to the Questionnaire, or to make any subsequent disclosure, is grounds for board action.”

“THE HIRING AND COMPENSATION OF KEY OR HIGHLY COMPENSATED EMPLOYEES IS DETERMINED BY THE BOARD OF DIRECTORS BASED ON EMPLOYEE QUALIFICATIONS, REASONABLENESS, AND COMPARABILITY DATA. FOR FYE 6/30/15, there were no members of top management. Beginning in March 2014 the organization operated under a management agreement with YMCA of Orange County. YOC was compensated a total of $3,500 per month under that agreement. No individual of YMCA of Orange County was compensated by San Gabriel Valley YMCA. No member of the Board of Directors was compensated by San Gabriel Valley YMCA.”

“The governing documents, conflict of interest policy, and financial statements are available to the public upon request.”

“Beginning in 2014, the YMCA of Orange County provided administrative services to the San Gabriel Valley YMCA for a fee. In 2015, the Board of Directors of the San Gabriel Valley YMCA began the process of liquidating the organizations assets and transferring the right to service participants to the YCMA of OC as follows: 1. The San Gabriel Valley YMCA did not renew their ACES program with the school district. Instead, the YMCA of OC contracted with the school district to provide the childcare services at 9 schools. The San Gabriel Valley staff were let go and then hired by the YMCA of OC. 2. (previously reported on the 2014 tax return) The San Gabriel Valley YMCA transferred ownership of Camp ELK as part of an Asset Transfer Agreement. Certain assets, including cash, were transferred and nothing was paid for the assets. No liabilities were assumed. The original donor of the property required that it be used for Camp purposes. 3. (previously reported on the 2014 tax return) The San Gabriel Valley YMCA transferred building and improvements from the Camp and the ACES modular building and equipment. Once the San Gabriel Valley YMCA is dissolved, the remaining are to be transferred to the YMCA of OC. At the time of the disposition, all management fees owed to the YCMA of OC had been paid off. At December 31, 2015, the San Gabriel Valley YMCA does not have any operations but still maintains a few properties and still has a Board of Directors that is separate from the YMCA of OC. The entity has not yet been dissolved.”