Casa De Las Amigas DBA Casa Treatment Center

“The finance committee of the board of directors, together with senior management and board leadership, undertake a comprehensive review of the Form 990. The board is informed that the 990 is available for review upon request.”

“The board has a formal conflict of interest policy requiring, among other things, disclosure or potential conflicts and abstaining from voting on any matter in which a member has personal financial intrest. The policy is acknowledged by all board members annually and monitored by the board of directors.”

“The Personnel Committee of the organization's Board of Directors conducts an annual performance review of the executive director, and makes performance based recommendations to the Board of Directors as to compensation adjustments taking into account comparability data. The organization has no other key employees.”

“The Personnel Committee of the organization's Board of Directors conducts an annual performance review and approval of the officers or key employees compensation.”

“Upon request.”

“In recent years, Casa has experienced losses arising out of changes in the addiction treatment industry. Starting around 2015, the evolution of addiction treatment standards required Casa to hire the additional clinical and medical, thus increasing agency personnel costs. At the same time, Casa faced increased competition arising out of the proliferation of for-profit treatment centers and the emergence in the industry of unethical practices, such as patient trafficking or body brokering, which had a significant impact on ethical agencies census. Between 2015 - 2019, Casa embarked on an agency-wide evaluation to address the changes in addiction treatment and the challenge of unethical practices that were becoming increasingly prevalent. Casa made the strategic decision to undertake a restructuring of its treatment facilities to, among things, better utilize existing facilities and improve agency-wide efficiency. It recognized that it would run into deficit spending but calculated that it was necessary to make long-term infrastructure changes that would ultimately strengthen the agency, improve service delivery and continue to hold down the cost of treatment. In fiscal year 2017-18, Casas budget ran a deficit that was greater than anticipated but was manageable because of its reserves. In fiscal year 2018-19, Casa also experienced losses relating the collectability of its accounts receivable, augmenting the losses it was otherwise incurring from operations. Following a full-scale analysis of its billing and collection practices and procedures, Casa instituted a broad corrective action plan to overhaul practices and procedures to minimize the potential for human error and ensure consistent reporting internally and with outsourced billing and collection vendors.The agency-wide restructuring increased efficiency, enabling Casa to reduce personnel costs by eliminating staffing redundancies, better coordinate the delivery of client services, and more effectively allocate its usage of existing facility space. Excess residential capacity was eliminated to better align with ongoing census levels while maintaining adequate capacity for historic occupancy levels. The restructuring further enabled Casa to consolidate its real estate holdings and unify its campus, culminating with the sale of its satellite outpatient facility in July 2019 for approximately $1,740,000 net and relocating those services to its campus. Proceeds from the sale of the facility have been used to replenish and augment the agencys reserves, providing an aggregate of $1,000,000 of reserves for operating and facility needs and unanticipated future contingencies.To further address its ongoing census challenges, in fiscal year 2018-19, Casa undertook a comprehensive analysis of its revenue and referral sources and adopted strategic action plans to diversify its referral base and revenue sources. Among the action plans undertaken, Casa initiated and is in the approval process of becoming an approved Medi-Cal provider. Not only will becoming an approved Medi-Cal provider diversify Casas existing revenue sources, it will enable Casa to serve more women in need and to serve a segment of the population it is not currently serving, in furtherance of its mission.”