2024-11-15T15:46:07-06:00 2023-12-31 381357951 PLANTE & MORAN PLLC 1098 WOODWARD AVE DETROIT MI 48226 990 2023-01-01 300125283 DETROIT RIVERFRONT CONSERVANCY INC DETR 3135668200 600 RENAISSANCE CENTER 1720 DETROIT MI 48243 RYAN SULLIVAN CHIEF EXECUTIVE OFFICER 3132591780 2024-11-15 1 1 DAVID LOWENTHAL P00378651 3134967200 2024-11-15 2023 2024-10-15 13:58:12Z RYAN SULLIVAN 600 RENAISSANCE CENTER 1720 DETROIT MI 48243 53409358 0 X WWW.DETROITRIVERFRONT.ORG X 2002 MI THE DETROIT RIVERFRONT CONSERVANCY (DRFC), IS RESPONSIBLE FOR THE ESTABLISHMENT, IMPROVEMENT, OPERATION, MAINTENANCE, SECURITY, PROGRAMMING AND EXPANSION OF THE DETROIT RIVERWALK AND ASSOCIATED GREEN SPACES. THROUGH ITS PUBLIC/PRIVATE PARTNERSHIPS, THE DRFC WILL SUPPORT THE DEVELOPMENT OF THE RIVERFRONT DISTRICT AND FACILITATE COMMUNITY ACCESS TO THE WATERFRONT. THE DRFC WILL:- DEVELOP A COLLECTIVE SENSE OF OWNERSHIP, ACCESSIBILITY AND RESPONSIBILITY- ENHANCE DETROIT'S IMAGE TO EMPHASIZE ITS ICONIC, INTERNATIONAL RIVERFRONT- CREATE AND MAINTAIN AN INVITING DESTINATION FOR ALL 45 44 22 0 0 0 25007175 51342366 0 0 24097 903487 0 -155527 25031272 52090326 0 0 0 0 1793562 2395085 458440 567386 2378171 13034974 13979662 15286976 16942133 9744296 35148193 175179215 213202987 5756247 7762427 169422968 205440560 X THE DETROIT RIVERFRONT CONSERVANCY (DRFC), IS RESPONSIBLE FOR THE ESTABLISHMENT, IMPROVEMENT, OPERATION, MAINTENANCE, SECURITY, PROGRAMMING AND EXPANSION OF THE DETROIT RIVERWALK AND ASSOCIATED GREEN SPACES. THROUGH ITS PUBLIC/PRIVATE PARTNERSHIPS, THE DRFC WILL SUPPORT THE DEVELOPMENT OF THE RIVERFRONT DISTRICT AND FACILITATE COMMUNITY ACCESS TO THE WATERFRONT. 0 0 11393266 0 AS A REGIONAL LANDMARK, A PUBLIC ASSET FOR DETROIT, AND AMERICA'S BEST RIVERWALK, ACCORDING TO USA TODAY, THE DETROIT RIVERFRONT AND OUR CONNECTED GREENWAYS PLAY A SPECIAL ROLE IN THE LIVES OF DETROITERS AND A CATALYTIC ROLE IN THE CONTINUED TRANSFORMATION OF DETROIT'S INTERNATIONAL WATERFRONT. A COMMUNITY ADVISORY TEAM OF 21 DETROITERS REFLECTING DIFFERENT GEOGRAPHIES, DEMOGRAPHICS, AND USER TYPES WAS ASSEMBLED AND TRAVELED TO NEW YORK, PHILADELPHIA, AND CHICAGO TO LEARN ABOUT OTHER LANDMARK WATERFRONT PARKS AND TO INFORM PLANS FOR THE CONTINUED DEVELOPMENT OF THE RALPH C. WILSON, JR. CENTENNIAL PARK. IN TOTAL, MORE THAN 5,000 COMMUNITY MEMBERS HAVE BEEN ENGAGED IN DEVELOPING THE VISION FOR THE PARK AND FUTURE PROGRAMMING. THE DETROIT RIVERFRONT WELCOMES MORE THAN THREE MILLION VISITORS PER YEAR AND HAS GENERATED SIGNIFICANT PUBLIC AND PRIVATE INVESTMENT SINCE ITS FOUNDING. THE DETROIT RIVERFRONT HAS BEEN NAMED AMERICA'S BEST RIVERWALK BY USA TODAY IN 2021, 2022, AND 2023.CELEBRATING OUR 20TH ANNIVERSARY IN 2023, THE CONSERVANCY WAS ESTABLISHED WITH A VISION AND FOUNDING PROMISE TO TRANSFORM DETROIT'S RIVERFRONTTHE FACE OF OUR CITYINTO A BEAUTIFUL, EXCITING, SAFE, ACCESSIBLE, WORLD-CLASS GATHERING PLACE FOR ALL. TODAY, THE CONSERVANCY IS RESPONSIBLE FOR: - STEWARDSHIP AND MAINTENANCE - SECURITY AND SAFETY - REINVESTMENT AND DEVELOPMENT - PROGRAMMING AND EVENT ADMINISTRATION THE RIVERFRONT ENCOMPASSES 5 PARKS 3 GREENWAYS, AND MULTIPLE PLAZAS PROVIDING A DIVERSITY OF OUTDOOR EXPERIENCES FOR VISITORS OF ALL AGES AND NOW HOST PROGRAMS FOR MORE THAN 350,000 PEOPLE EACH YEAR: - CULLEN PLAZA - DEQUINDRE CUT - GABRIEL RICHARD PARK & CHRISTOPHER STROH PLAZA - MAYOR DENNIS W. ARCHER GREENWAY - MT. ELLIOTT PARK - RALPH C. WILSON, JR. CENTENNIAL PARK - ROBERT C. VALADE PARK - SOUTHWEST GREENWAYONCE A NEGLECTED STRETCH OF INDUSTRIAL SITES AND SHUTTERED BUSINESSES, THE DETROIT RIVERFRONT IS NOW A SERIES CHERISHED PUBLIC SPACES WHERE ALL FEEL WELCOME. BEGINNING WITH A BEST-IN-CLASS COMMUNITY ENGAGEMENT PROCESS, THE DETROIT RIVERFRONT CONSERVANCY HELD MORE THAN 100 COMMUNITY MEETINGS BEFORE STARTING CONSTRUCTION ON THE RIVERWALK, AN UNPRECEDENTED APPROACH AT THE TIME. THE LESSONS FROM THIS PROCESS CONTINUE TO INFORM PROGRAMMING ON THE DETROIT RIVERFRONT AND PLANS FOR NEW SPACES.THE DETROIT RIVERFRONT CONSERVANCY BROKE GROUND ON THE RALPH C. WILSON, JR. CENTENNIAL PARK IN MAY, 2022 AND IS MID-WAY THROUGH FULFILLMENT OF OUR BRIDGE-TO-BRIDGE VISION AND ARE COMPLETING CONSTRUCTION ON THE FINAL SEGMENT CONNECTING THE EAST RIVERFRONT TO RALPH WILSON PARK. WHEN THE NEW PARK OPENS IN 2025, IT WILL FEATURE THE DELTA DENTAL PLAY GARDEN, AN EXPANSIVE LAWN FOR PROGRAMS AND SPECIAL EVENTS, BASKETBALL COURTS IN THE SPORT HOUSE AND A LARGE WATER GARDEN. 11393266 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 10 0 1 22 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 45 44 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1 1 1 1 0 MI X QUATRRO BUSINESS SUPPORT SERVICES 3135668200 600 RENAISSANCE CENTER SUITE 1780 DETROIT MI 48243 DAVE BLASZKIEWICZ DIRECTOR 1.00 X 0 0 0 GARLIN GILCHRIST II DIRECTOR 1.00 X 0 0 0 DANIEL EICHINGER DIRECTOR 1.00 X 0 0 0 ERIC DIETZ DIRECTOR 1.00 X 0 0 0 BRADLEY DICK DIRECTOR 1.00 X 0 0 0 PATRICK DEVLIN DIRECTOR 1.00 X 0 0 0 PETER CUMMINGS DIRECTOR 1.00 X 0 0 0 MARY CULLER DIRECTOR 1.00 X 0 0 0 ANTOINE BRYANT DIRECTOR 1.00 X 0 0 0 BEVERLY WATTS DIRECTOR 1.00 X 0 0 0 RACHEL BENDIT DIRECTOR 1.00 X 0 0 0 MARVIN BEATTY DIRECTOR 1.00 X 0 0 0 WENDY JACKSON DIRECTOR 1.00 X 0 0 0 SANDY BARUAH DIRECTOR 1.00 X 0 0 0 PENNY BAILER DIRECTOR 1.00 X 0 0 0 JENNIFER HUDSON-PARKE SECRETARY 1.00 X X 0 0 0 JOHN BLANCHARD TREASURER 1.00 X X 0 0 0 MATTHEW CULLEN CHAIR 1.00 X X 0 0 0 STEVE HAMP DIRECTOR 1.00 X 0 0 0 HONORABLE ALISHA BELL DIRECTOR 1.00 X 0 0 0 HIRAM JACKSON DIRECTOR 1.00 X 0 0 0 KEVIN JOHNSON DIRECTOR 1.00 X 0 0 0 SCOTT WICKENS DIRECTOR 1.00 X 0 0 0 FRANK VENEGAS DIRECTOR 1.00 X 0 0 0 PAMELA RODGERS DIRECTOR 1.00 X 0 0 0 MARGARET TRIMER DIRECTOR 1.00 X 0 0 0 NANCY TELLEM DIRECTOR 1.00 X 0 0 0 JOHN STROH III DIRECTOR 1.00 X 0 0 0 MARY SHEFFIELD DIRECTOR 1.00 X 0 0 0 NETTIE SEABROOKS DIRECTOR 1.00 X 0 0 0 MARIA ELENA RODRIGUEZ DIRECTOR 1.00 X 0 0 0 AMY ROBINSON DIRECTOR 1.00 X 0 0 0 STEPHANIE WASHINGTON DIRECTOR 1.00 X 0 0 0 KHALIL RAHAL DIRECTOR 1.00 X 0 0 0 MICHAEL RAFFERTY DIRECTOR 1.00 X 0 0 0 REIMER PRIESTER DIRECTOR 1.00 X 0 0 0 ELENA NUNO DIRECTOR 1.00 X 0 0 0 MARIAM NOLAND DIRECTOR 1.00 X 0 0 0 MITCHELL MONDRY DIRECTOR 1.00 X 0 0 0 CLAUDE MOLINARI DIRECTOR 1.00 X 0 0 0 SARAH MCCLURE DIRECTOR 1.00 X 0 0 0 ROBERT MARANS DIRECTOR 1.00 X 0 0 0 ERIC LARSON DIRECTOR 1.00 X 0 0 0 JOHN HARTIG DIRECTOR 1.00 X 0 0 0 MARK WALLACE PRESIDENT AND C.E.O. 40.00 X 348373 0 38752 WILLIAM SMITH CHIEF FINANCIAL OFFICER 40.00 X 222257 0 38931 CASSIE BRENSKE CHIEF DEVELOPMENT OFFICER 40.00 X 204503 0 25312 STEPHAN BOBALIK SENIOR DIRECTOR OF DEVELOPMENT 40.00 X 125558 0 18975 RACHEL FRIERSON VP OF OPERATIONS & PROGRAMMING 40.00 X 108682 0 16814 1009373 0 138784 5 0 1 0 BRINKER CHRISTMAN 14044 SCHAEFER HIGHWAY DETROIT MI 48227 CONSTRUCTION MANAGEMENT 16174561 EAGLE SECURITY SERVICES LLC 500 GRISWOLD SUITE 300 DETROIT MI 48226 SECURITY 3547442 TURNER CONSTRUCTION COMPANY 535 GRISWOLD ST 1525 DETROIT MI 48226 CONSTRUCTION MANAGEMENT 2211899 JONATHAN WITZ & ASSOCIATES 301 WEST 4TH STREET SUITE LL-150 ROYAL OAK MI 48067 EVENT HOSTING 1592693 MICHAEL VAN VALKENBURGH ASSOCIATES 16 COURT ST 11TH FLOOR BROOKLYN NY 11241 LANDSCAPE ARCHITECTURE 1040909 29 482125 18360502 32499739 5095303 51342366 3487 3487 2000000 1100000 900000 900000 900000 63505 482125 219032 -155527 -155527 52090326 0 0 747960 648313 648313 1322161 567837 91847 662477 124112 51040 22032 51040 178002 62899 52204 62899 122497 36749 48999 36749 367767 367767 34700 34700 60000 60000 567386 567386 36547 36547 1663077 1081000 166308 415769 495650 99130 168618 227902 138381 138381 208057 208057 669314 669314 72250 72250 7788 7788 283146 283146 715438 707670 7768 121833 121833 RIVERWALK MAINTENANCE 6930459 6930459 RIVER DAYS EVENT 1846141 1846141 FUNDRAISING EXPENSES 293949 293949 VOLUNTEER EXPENSE 10191 10191 24974 150 24824 16942133 11393266 3170696 2378171 457780 1865299 575 304 6860501 12865889 667583 344960 157507621 8822355 117706338 148685266 212503 27559 7399948 7699646 41873987 41714064 175179215 213202987 5018384 7180253 737863 582174 5756247 7762427 X 142351069 178368661 27071899 27071899 169422968 205440560 175179215 213202987 35148193 869399 0 X X 0 0 1 0 X 31484772 25697477 18251410 25007175 46310567 146751401 31484772 25697477 18251410 25007175 46310567 146751401 64898027 81853374 6538 5424 42736 24097 3487 82282 146833683 0.55750 0.51280 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 60000 60000 0 PART II-B, LINE 1: DETROIT RIVERFRONT CONSERVANCY, INC. HIRE A LOBBYIST TO ENGAGE AND INTERACT WITH STATE LEGISLATORS ON ITS BEHALF. 7399948 1069928 346610 38512 8084754 8767141 -1023386 309426 34381 7399948 8118746 974970 257924 39993 28658 8767141 7397573 974123 227655 25295 8118746 6798593 1049275 2415315 34980 5397573 0.35195 0.64805 0.00000 1 0 567792 469958 97834 156939829 8352397 148587432 148685266 EASEMENTS 41138961 RIGHT-OF-USE ASSETS 575103 41714064 LEASE LIABILITIES 582174 582174 PART V, LINE 4: THE CONSERVANCY HAS ESTABLISHED THE FOLLOWING FUNDS (COLLECTIVELY, THE "ENDOWMENT FUNDS") AS COMPONENT FUNDS OF THE COMMUNITY FOUNDATION FOR SOUTHEAST MICHIGAN ("CFSEM"): DETROIT RIVERFRONT CONSERVANCY ENDOWMENT FUND (THE "CONSERVANCY FUND") THE INITIAL DEPOSIT OF $3,000,000 TO THE CONSERVANCY FUND, ALONG WITH A CONTRIBUTION OF $2,000,000 IN 2019, ARE RESTRICTED TO BE HELD IN PERPETUITY. THE INCOME GENERATED FROM THE CONSERVANCY FUND MAY BE USED TO SUPPORT VARIOUS ACTIVITIES. DEQUINDRE CUT MAINTENANCE ENDOWMENT FUND (THE "DEQUINDRE CUT FUND") THIS FUND WAS ESTABLISHED TO SUPPORT THE OPERATIONS AND MAINTENANCE OF THE DEQUINDRE CUT PATHWAY. RALPH C. WILSON JR. CENTENNIAL PARK ENDOWMENT FUND (THE "CENTENNIAL PARK FUND") THIS FUND WAS ESTABLISHED TO SUPPORT THE OPERATIONS AND MAINTENANCE OF THE RALPH C. WILSON JR. CENTENNIAL PARK AND ITS CONNECTIONS. CULLEN FAMILY ENDOWMENT FUND (THE "CULLEN FUND") THIS FUND WAS ESTABLISHED TO SUPPORT THE OPERATIONS AND MAINTENANCE OF ALL SPACES OWNED AND OPERATED BY THE CONSERVANCY. CULLEN FAMILY CAROUSEL FUND (THE "FAMILY CAROUSEL FUND") THIS FUND WAS ESTABLISHED TO SUPPORT THE OPERATION AND MAINTENANCE OF THE CULLEN FAMILY CAROUSEL AND FREE RIDES FOR CHILDREN VISITING THE CAROUSEL AT CERTAIN TIMES DURING THE WEEK. THE ENDOWMENT FUNDS ARE ASSETS OF CFSEM. THE MAJORITY OF THE ENDOWMENT FUNDS' ASSETS IS INVESTED IN REGISTERED INVESTMENT COMPANIES AND COLLECTIVE TRUST FUNDS. X X X X X X X 0 COMMUNITY COUNSELING SERVICE COMPANY LLC 527 MADISON AVENUE 5TH FLOOR NEW YORK NY 10022 FUNDRAISER 0 0 510000 0 510000 MI SHIMMER ON THE RIVER 411977 368427 43550 40457 38693 31675 30875 SOIREE ON THE GREENWAY 133653 113698 19955 5750 37521 15100 18961 545630 482125 63505 46207 76214 46775 49836 219032 -155527 X 0 1 X X X X 0 0 0 0 0 0 0 0 0 MARK WALLACE PRESIDENT AND C.E.O. 348373 0 0 0 0 0 27924 0 10828 0 387125 0 0 0 WILLIAM SMITH CHIEF FINANCIAL OFFICER 222257 0 0 0 0 0 18097 0 20834 0 261188 0 0 0 CASSIE BRENSKE CHIEF DEVELOPMENT OFFICER 204503 0 0 0 0 0 16400 0 8912 0 229815 0 0 0 PART I, LINE 1A IN 2023 THE PRESIDENT AND CHIEF EXECUTIVE OFFICER WERE ALLOWED A HEALTH AND SOCIAL CLUB MEMBERSHIP AS PART OF THEIR COMPENSATION PACKAGES. PART I, LINE 1B THE BOARD APPROVED THE MEMBERSHIP AS PART OF THE PRESIDENT'S COMPENSATION PACKAGE REVIEW AND APPROVAL PROCESS. X 1 5095303 ACTUAL COST 0 0 0 PART I, COLUMN (B): COLUMN (C) REPRESENTS THE AMOUNT ASSOCIATED WITH CONSTRUCTION COSTS FOR OPERATING, MAINTAINING, AND DEVELOPING THE RIVERWALK. FORM 990, PART VI, SECTION B, LINE 11B DETROIT RIVERFRONT CONSERVANCY ENGAGES AN OUTSIDE CPA FIRM TO PREPARE THE FORM 990. THE DRFC AUDIT COMMITTEE REVIEWS THE FULL FORM 990. THE GOVERNING BOARD IS PROVIDED ACCESS TO A PUBLIC DISCLOSURE COPY OF THE RETURN PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C EACH VOTING MEMBER OF THE BOARD SHALL SIGN A STATEMENT AT OR BEFORE THE CONSERVANCY'S ANNUAL MEETING CONFIRMING THE DIRECTOR UNDERSTANDS AND AGREES TO COMPLY WITH THE CONFLICT OF INTEREST POLICY AND SHALL COMPLETE AND SUBMIT TO THE CONSERVANCY AN ANNUAL QUESTIONNAIRE REGARDING HIS OR HER INTEREST IN MATTERS IN WHICH THE CONSERVANCY IS INVOLVED. THE STATEMENTS ARE THEN REVIEWED BY THE GOVERNANCE COORDINATOR AND ANY SIGNIFICANT ITEMS ARE DISCUSSED. A DIRECTOR IN CONFLICT MAY NOT PARTICIPATE IN, OR BE PRESENT DURING, ANY DELIBERATIONS OR VOTE OF THE BOARD OF DIRECTORS OR ANY COMMITTEE OF THE BOARD OF DIRECTORS ON THE TRANSACTION OR ARRANGEMENT IN WHICH THE INTERESTED PERSON HAS A FINANCIAL INTEREST, WHETHER OR NOT HIS OR HER FINANCIAL INTEREST IS IN CONFLICT WITH THE CONSERVANCY'S BEST INTERESTS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD USED A PROCESS OF BENCHMARKING OTHER SIMILAR NON-PROFIT ORGANIZATIONS IN THE AREA TO DETERMINE THE COMPENSATION OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND OTHER TOP MANAGEMENT OFFICIALS. THE ORGANIZATION USES AN OUTSIDE FIRM TO PERFORM A COMPREHENSIVE REVIEW OF COMPENSATION FOR KEY EMPLOYEES AS THEY ARE HIRED. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS ARE AVAILABLE BY WRITTEN REQUEST TO THE ORGANIZATION. FORM 990, PART XII, LINE 2B AN INDEPENDENT AUDIT FIRM HAS BEEN SELECTED TO COMPLETE THE FINACIAL STATMENT AUDIT FOR THE YEAR ENDED DECEMBER 31, 2023. AS OF FILING DATE OF THE FEDERAL FORM 990, THE AUDIT IS STILL ONGOING AND IS ANTICIPATED TO BE COMPLETED IN 2025. FORM 990, PART XII, LINE 2C ON MAY 14, 2024, DETROIT RIVERFRONT CONSERVANCY ("CONSERVANCY") PLACED THE ORGANIZATION'S CHIEF FINANCIAL OFFICER ON ADMINISTRATIVE LEAVE AFTER DISCREPANCIES WITH THEIR FINANCIAL DOCUMENTS WERE IDENTIFIED, AND THEREAFTER, ON MAY 31, 2024, THE CHIEF FINANCIAL OFFICER EMPLOYMENT WAS TERMINATED FOR CAUSE. SINCE THE DISCOVERY OF FRAUD, LEADERSHIP HAS FOCUSED ON CONTINUOUS IMPROVEMENT AND ADVANCEMENT OF THE ORGANIZATION'S FINANCIAL MANAGEMENT. IN JUNE OF 2024, THE CONSERVANCY ENGAGED QUATRRO BUSINESS SUPPORT SERVICES AS AN OUTSOURCED ACCOUNTING SERVICE PROVIDER TO OVERSEE ITS FINANCIAL INFORMATION. A FORENSIC ACCOUNTING FIRM WAS ENGAGED TO INVESTIGATE AND REPORT ON THE FINANCIAL DISCREPANCIES AND A LAW FIRM HAS BEEN ENGAGED TO ASSIST WITH CIVIL LITIGATION AND ACT AS A LIASON BETWEEN THE CONSERVANCY AND THE FEDERAL PROSECUTOR ASSIGNED TO THE CRIMINAL CASE. THE CONSERVANCY ALSO ENGAGED A NEW INDEPENDENT AUDIT FIRM TO COMPLETE THE FINANCIAL STATEMENT AUDIT FOR YEAR ENDED DECEMBER 31, 2023. CONTRACTING WITH THESE NEW PARTNERS IS PART OF A SERIES OF SIGNIFICANT AND STRATEGIC IMPROVEMENTS BEING MADE TO ENHANCE FINANCIAL INTEGRITY, TRANSPARENCY, AND OPERATIONAL EFFICIENCY. IN ADDITION, A NEW CEO, INTERIM-CFO, AND NEW ACCOUNTING DEPARTMENT HAVE BEEN BROUGHT IN TO REINFORCE SEGREGATION OF DUTIES AND STRENGTHEN INTERNAL CONTROLS. THE FINANCIAL STATEMENT AUDIT FOR YEAR ENDED DECEMBER 31, 2023 IS UNDERWAY BUT WILL NOT BE COMPLETED PRIOR TO FILING OF THE FORM 990. THE CONSERVANCY, WITH ASSISTANCE FROM ITS FORENSIC ACCOUNTING FIRM AND AUDIT FIRM, IS WORKING TO DETERMINE THE MAGNITUDE OF THE DISCREPANCIES AND ANTICIPATES THE FINANICAL STATEMENTS ISSUED FOR THE YEAR ENDED DECEMBER 31, 2023 WILL ACCURATELY REPRESENT THE CONSERVANCY'S FINANCIAL INFORMATION AND BE FREE FROM MATERIAL MISTATEMENT. FORM 990, PART VI, SECTION A, LINE 3 ON MAY 14, 2024, THE CONSERVANCY PLACED THE ORGANIZATION'S CFO, ON ADMINISTRATIVE LEAVE AFTER DISCREPANCIES WITH FINANCIAL DOCUMENTS WERE IDENTIFIED AND THEREAFTER, ON MAY 31, 2024, THE CHIEF FINANCIAL OFFICER'S EMPLOYMENT WAS TERMINATED FOR CAUSE. IN JUNE OF 2024, THE CONSERVANCY ENGAGED QUATRRO BUSINESS SUPPORT SERVICES AS AN OUTSOURCED ACCOUNTING SERVICE PROVIDER TO OVERSEE ITS FINANCIAL INFORMATION. A FORENSIC ACCOUNTING FIRM WAS ENGAGED TO INVESTIGATE AND REPORT ON THE FINANCIAL DISCREPANCIES AND A LAW FIRM HAS BEEN ENGAGED TO ASSIST WITH CIVIL LITIGATION AGAINST THE FORMER CFO. THE CONSERVANCY ALSO ENGAGED A NEW INDEPENDENT AUDIT FIRM TO COMPLETE THE FINANCIAL STATEMENT AUDIT FOR YEAR ENDED DECEMBER 31, 2023. FORM 990, PART VI, SECTION A, LINE 9 MARK C. WALLACE, CEO, RESIGNED ON MAY 31, 2024 AND EMPLOYMENT OF WILLIAM SMITH, CFO, WAS TERMINATED ON MAY 31, 2024. NEITHER INDIVIDUAL CAN BE DIRECTLY CONTACTED AT THE ORGANIZATION'S ADDRESS VIA MAIL. HOWEVER, MANAGEMENT HAS THE ABILITY TO CONTACT BOTH INDIVIDUALS IF NECESSARY. FORM 990, PART VI, SECTION A, LINE 5 ON MAY 14, 2024, DETROIT RIVERFRONT CONSERVANCY ("CONSERVANCY") PLACED THE ORGANIZATION'S CHIEF FINANCIAL OFFICER ON ADMINISTRATIVE LEAVE AFTER DISCREPANCIES WITH THEIR FINANCIAL DOCUMENTS WERE IDENTIFIED, AND THEREAFTER, ON MAY 31, 2024, THE CHIEF FINANCIAL OFFICER EMPLOYMENT WAS TERMINATED FOR CAUSE. SINCE THE DISCOVERY OF FRAUD, LEADERSHIP HAS FOCUSED ON CONTINUOUS IMPROVEMENT AND ADVANCEMENT OF THE ORGANIZATION'S FINANCIAL MANAGEMENT. IN JUNE OF 2024, THE CONSERVANCY ENGAGED QUATRRO BUSINESS SUPPORT SERVICES AS AN OUTSOURCED ACCOUNTING SERVICE PROVIDER TO OVERSEE ITS FINANCIAL INFORMATION. A FORENSIC ACCOUNTING FIRM WAS ENGAGED TO INVESTIGATE AND REPORT ON THE FINANCIAL DISCREPANCIES AND A LAW FIRM HAS BEEN ENGAGED TO ASSIST WITH CIVIL LITIGATION AND ACT AS A LIASON BETWEEN THE CONSERVANCY AND THE FEDERAL PROSECUTOR ASSIGNED TO THE CRIMINAL CASE. THE CONSERVANCY ALSO ENGAGED A NEW INDEPENDENT AUDIT FIRM TO COMPLETE THE FINANCIAL STATEMENT AUDIT FOR YEAR ENDED DECEMBER 31, 2023. CONTRACTING WITH THESE NEW PARTNERS IS PART OF A SERIES OF SIGNIFICANT AND STRATEGIC IMPROVEMENTS BEING MADE TO ENHANCE FINANCIAL INTEGRITY, TRANSPARENCY, AND OPERATIONAL EFFICIENCY. IN ADDITION, A NEW CEO, INTERIM-CFO, AND NEW ACCOUNTING DEPARTMENT HAVE BEEN BROUGHT IN TO REINFORCE SEGREGATION OF DUTIES AND STRENGTHEN INTERNAL CONTROLS. THE FINANCIAL STATEMENT AUDIT FOR YEAR ENDED DECEMBER 31, 2023 IS UNDERWAY BUT WILL NOT BE COMPLETED PRIOR TO FILING OF THE FORM 990. THE CONSERVANCY, WITH ASSISTANCE FROM ITS FORENSIC ACCOUNTING FIRM AND AUDIT FIRM, IS WORKING TO DETERMINE THE MAGNITUDE OF THE DISCREPANCIES AND ANTICIPATES THE FINANICAL STATEMENTS ISSUED FOR THE YEAR ENDED DECEMBER 31, 2023 WILL ACCURATELY REPRESENT THE CONSERVANCY'S FINANCIAL INFORMATION AND BE FREE FROM MATERIAL MISTATEMENT.