Susannah Wesley Community Center

“The form 990 is reviewed in detail and approved by the center's executive director, treasurer and board of directors.”

“Each director, principal officer and member of a committee with governing board delegated powers shall annually sign a statement which affirms such person: (1) has received a copy of the conflict of interest policy; (2) has read and understands the policy; (3) has agreed to comply with the policy; and (4) understands the center is charitable and in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax exempt purposes. In addition, they shall also disclose in such statement any transaction or relationship involving possible conflicts of interest in regard to the center. Pt vi, line 12c: to ensure the center operates in a manner consistent with its tax charitable purposes and does not engage in activities that could jeopardize its tax exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects: (1) whether compensation and other arrangements and benefits are reasonable, based on competent survey information, and the result of arms length bargaining and (2) whether partnerships, joint ventures, and arrangements with management corporations conform to the center's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in inurement, impermissable private benefit or are an excess benefit transaction. Pt vi, line 12c: in connection with actual or possible conflict of interest, financial or otherwise an interested person must disclose the existence of the interest and be given the opportunity to disclose all material facts to the directors and members of the committee with governing board delegated powers considering the proposed transaction or arrangement. Pt vi, line 12c: disclosure also includes those transactions or arrangements that may present conflicts of interest that do not involve the person making a disclosure. Pt vi, line 12c: after disclosure of the financial or other interest and all material facts, and after any discussion with the interest person, he/she shall leave the governing board or committee meeting while determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists. Pt vi, line 12c: a conflict of interest transaction or arrangement may or may not be approved if the material facts of the transaction and the person's interest are disclosed or known to the board or a committee of the board, and the transaction is authorized, approved and ratified by an affirmative vote of a majority of the directors either on the board or on the committee, who have no direct or indirect interest in the transaction; provided, that a transaction may not be authorized, approved and ratified by a single director. Such majority vote of the directors on the board shall constitute a quorum for the purposes of taking action. An interested person may make a presentation, he/she shall leave the meeting during the discussion of, and vote on, the transaction arrangement involving the possible conflict of interest. Pt vi, line 12c: the chairperson of the governing body or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. Pt vi, line 12c: after exercising due diligence, the governing board of committee shall determine whether the center can obtain with reasonable efforts a more advantageous transaction or arrangements from a person or entity that would not give rise to a conflict of interest. Pt vi, line 12c: if a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the center's best interest, for its own bene”

“Pt vi, line 15a and 15b: the board of directors, through the personnel committee, is responsible to conduct or obtain nonprofit market surveys every two years to compare the center's executive director salary/compensation with external market of similar position and size of the organization. Upon reviewing the external market survey, the personnel committee presents the market survey to the board of directors' executive committee. The executive committee reviews the market survey, executive director's performance and fiscal condition of the agency and recommends to the board of directors the executive director's compensation. The board of directors reviews the executive committee's recommendation and approves or modifies executive director's compensation.”

“Copies of form 990 will not be available to interested persons until the board approves and accepts the filed report. The form 990 will be available on the center's website.”

“Governing documents, conflict of interest policy, and financial statements are available to interested parties upon request.”

“In april 2020, the center received funds from a loan agreement in the amount of $248,900, pursuant to the paycheck protection program (ppp) under the cares act. The promissory note matures two years from the date of first disbursement of the loan and bears interest at a rate of 1.00% per annum. The loan and accrued interest may be forgiven as long as the center uses the loan proceeds for eligible purposes, including payroll costs, interest on a covered mortgage obligation, rent obligation or covered utility payment, during the 24 week period beginning on the date of first disbursement of the loan. As of june 30, 2020, the center has utilized the proceeds for purposes consistent with the ppp and believes that its use of the loan proceeds will meet the conditions for forgiveness of the loans. Subsequent to year end, the center applied for and was granted forgiveness of $248,900 related to the ppp loan.”

“The center restated its beginning net assets to account for several misstatements, the most significant of which represents contributed rent. The center previously entered into an agreement with the united methodist women to lease the center's facilities at below market rates. Gaap requires the center to record a contribution at the commencement of the lease at the present value of the cumulative difference between the fair rental value of the lease and the stated amount of lease payments. The center did not record the contribution receivable at inception of the lease and accordingly restated beginning net assets to reflect the cumulative correction of the misstatement.”