2023-08-15T16:58:04-05:00 2022-06-30 860558065 HEINFELD MEECH & CO 10120 N ORACLE RD TUCSON AZ 85704 990 2021-07-01 860093224 EASTERSEALS BLAKE FOUNDATION EAST 5203271529 7750 E BROADWAY BLVD A200 TUCSON AZ 85710 STEVEN M GUTHRIE CHIEF EXECUTIVE OFFICER 5203271529 2023-08-15 1 STEVEN GUTHRIE 999009999 COREY ARVIZU CPA P01777649 5207422611 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z STEVEN M GUTHRIE 7750 E BROADWAY BLVD A200 TUCSON AZ 85710 42606636 0 X WWW.EASTERSEALS.COM/BLAKEFOUNDATION X 1950 AZ EASTERSEALS BLAKE FOUNDATION IS DEDICATED TO THE VISION OF A SOUTHERN ARIZONA COMMUNITY WHERE ALL PEOPLE LIVE HEALTHY, PRODUCTIVE AND INDEPENDENT LIVES. THE MISSION OF THE FOUNDATION IS TO ENABLE EACH INDIVIDUAL SERVED TO DISCOVER AND MEET HIS OR HER MAXIMUM POTENTIAL FOR INDEPENDENT, PRODUCTIVE LIVING, AND DEVELOPMENTAL GROWTH. 13 13 1061 47 0 0 9591411 10299087 28250149 32004809 50338 264722 4402 -40015 37896300 42528603 0 0 0 0 28777284 29820807 0 28824 410833 9268714 12416649 38045998 42266280 -149698 262323 8663056 10401892 3832258 5308713 4830798 5093179 X EASTERSEALS BLAKE FOUNDATION IS DEDICATED TO THE VISION OF A SOUTHERN ARIZONA COMMUNITY WHERE ALL PEOPLE LIVE HEALTHY, PRODUCTIVE AND INDEPENDENT LIVES. THE MISSION OF THE FOUNDATION IS TO ENABLE EACH INDIVIDUAL SERVED TO DISCOVER AND MEET HIS OR HER MAXIMUM POTENTIAL FOR INDEPENDENT, PRODUCTIVE LIVING, AND DEVELOPMENTAL GROWTH. 0 0 8368736 1625203 BLAKE CHILDREN & FAMILY (BCF) BLAKE CHILDREN & FAMILY (BCF) SERVED MORE THAN 2,500 CHILDREN AND FAMILIES ACROSS 10 COUNTIES OF SOUTHERN ARIZONA. BCF'S NAEYC ACCREDITED EARLY LEARNING PROGRAMS PREPARED CHILDREN FOR PRIMARY SCHOOLING THROUGH A SUPPORTIVE ENVIRONMENT FOCUSED ON CHILDREN'S SOCIAL, EMOTIONAL, COGNITIVE, AND PHYSICAL DEVELOPMENTAL NEEDS. BCF PROVIDED FAMILIES ACCESS TO EARLY AND INTENSIVE SUPPORT VIA EVIDENCE-BASED PROGRAMMING, INCLUDING NURSE FAMILY PARTNERSHIP, PARENTS AS TEACHERS, AND EARLY HEAD START. ADDITIONALLY, 2000 EARLY CHILDHOOD PROFESSIONALS WERE SERVED AND PROVIDED WITH ACCESS TO RESOURCES, EDUCATION, AND TRAINING SPECIALIZED TO PROMOTE CHILDREN'S OVERALL DEVELOPMENT AND WELL-BEING. 16869459 17835916 EASTERSEALS BLAKE BEHAVIORAL HEALTH PROVIDED COMPREHENSIVE BEHAVIORAL HEALTH TREATMENT FOR CHILDREN, ADULTS, AND FAMILIES THROUGHOUT ARIZONA. THESE SERVICES INCLUDED INDIVIDUAL AND GROUP COUNSELING, PSYCHIATRIC SERVICES, SEMI-INDEPENDENT LIVING, RESIDENTIAL ADULT TREATMENT, AND APPLIED BEHAVIORAL INTERVENTIONS FOR ARIZONANS OF ALL AGES. THE BEHAVIORAL HEALTH PROGRAMS OF EASTERSEALS BLAKE FOUNDATION EMPHASIZE EASY ACCESS, COMPREHENSIVE CARE, EXCELLENT OUTCOMES THROUGH THE USE OF EVIDENCE-BASED PRACTICES, AND EXCEPTIONAL SERVICE BUILT ON A CULTURE OF ENGAGEMENT AND WELLNESS. BLAKE BEHAVIORAL HEALTH IS A DESIGNATED CENTER OF EXCELLENCE FOR PROVIDING BEHAVIORAL HEALTH SERVICES FOR CHILDREN BY BANNER AND ARIZONA COMPLETE HEALTH. 11973632 12543690 EASTERSEALS BLAKE FOUNDATION'S BLAKE EMPLOYMENT AND COMMUNITY LIVING PROGRAMS PROVIDE SERVICES TO INDIVIDUALS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES IN 3 COUNTIES OF SOUTHERN ARIZONA. INDIVIDUALIZED RESIDENTIAL AND DAY PROGRAMS ALONG WITH EMPLOYMENT SERVICES, SUPPORT THE PERSONAL GROWTH AND INDEPENDENCE OF OUR MORE THAN 150 MEMBERS. 37211827 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 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 1 1 1 0 0 1 110 0 1 1061 1 0 0 0 0 1 1 1 1 0 0 0 0 0 0 X 13 13 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X X STEVEN M GUTHRIE 5203271529 7750 E BROADWAY BLVD SUITE A200 TUCSON AZ 85710 DANNY BLAKE TRUSTEE UNTIL 4/25/22 2.00 2.00 X 0 0 0 BETSY BRUCE TRUSTEE 2.00 1.00 X 0 0 0 BRIAN CONNELLY SECRETARY 2.00 1.00 X X 0 0 0 JEFFRY GARDNER TRUSTEE 2.00 1.00 X 0 0 0 GENE GOLDSTEIN PRESIDENT 2.00 2.00 X X 0 0 0 DAVID IACONIS TRUSTEE 2.00 1.00 X 0 0 0 GREGORY LEINER TRUSTEE 2.00 1.00 X 0 0 0 JAMES MAINA TRUSTEE 2.00 2.00 X 0 0 0 ERIC MEYERS PRESIDENT EMERITUS 2.00 1.00 X 0 0 0 GABRIELLE FICCHI TRUSTEE 2.00 1.00 X 0 0 0 JASON SMITH TRUSTEE 2.00 1.00 X 0 0 0 SHAY STAUTZ TRUSTEE 2.00 1.00 X 0 0 0 JAMES WOODROW TREASURER 2.00 1.00 X X 0 0 0 JOEY MEDINA TRUSTEE 2.00 1.00 X 0 0 0 STEVEN M GUTHRIE CAO UNTIL 4/30/21, CEO AFT 35.00 5.00 X 193193 0 35617 LAURA MORALES COO 35.00 5.00 X 181957 0 28075 MARISSA ARENDT CFO 25.00 15.00 X 170167 0 25881 DINA SCALONE CPO 20.00 20.00 X 111101 0 30032 MEGAN WILLS CCPO 36.00 4.00 X 112734 0 11322 CHRISTOPHER BRYAN SENIOR DIRECTOR OF INFRASTRUCTURE SERVICES 34.00 6.00 X 103652 0 16035 CARLY ZIES CCO 25.00 15.00 X 107400 0 11245 JEAN MILLEN PROGRAM DIRECTOR UNTIL 1/15/22 35.00 5.00 X 98735 0 13950 SALLY BOEVE CMO AFTER 9/7/21 40.00 0.00 X 78884 0 2119 AHMAD TAYLOR PHYSICIAN ASSISTANT 40.00 0.00 X 112453 0 9678 KRISTIN SHILSON PSYCHIATRIC NURSE PRACTIONER 40.00 0.00 X 113410 0 4025 EMA KAMMEYER CEO UNTIL 4/30/21 25.00 15.00 X 278610 0 17276 1662296 0 205255 10 1 1 0 CAPGROW HOLDING JV SUB II LLC 320 W OHIO STREET STE 650 N CHICAGO IL 60654 RENTS 485767 FASPSYCH LLC 8687 E VIA DE VENTURA SCOTTSDALE AZ 85258 PSYCHIATRIC ASSESSMENTS/SERVICES 476408 UNITED WAY CAPITAL CORP 4750 N ORACLE RD STE 210 TUCSON AZ 85705 RENTS 222332 NVISION CAPITAL P O BOX 448 CORONA DEL MAR CA 92625 RENTS 174137 THE PRIMAVERA FOUNDATION INC 151 WEST 40TH STREET TUCSON AZ 85713 RENTS 118300 6 2563034 111680 7174436 449937 156714 10299087 FEE FOR SERVICE CONTRA 611710 31264964 31264964 TUITION AND FEES 900099 393017 393017 COMMUNITY LIVING RENTA 531110 256050 256050 OTHER INCOME 900099 45411 45411 RETAIL SALES 561300 45367 45367 32004809 -677 -677 266279 880 265399 265399 265399 37138 111680 77153 -40015 -40015 42528603 32004809 0 224707 2599287 1067734 1423927 107626 22644950 21389436 1175813 79701 2303088 2023657 251725 27706 2273482 2058008 200297 15177 339806 339806 58091 58091 163225 163225 28824 28824 1945895 1636859 308822 214 113402 113402 1236299 1156607 75824 3868 428582 296570 122043 9969 2275473 2219560 55412 501 1170030 1102698 59043 8289 33 33 195087 86491 108596 118701 80601 38100 BAD DEBT EXPENSE 3678920 3678907 13 EQUIPMENT 253197 178302 74586 309 OTHER OPERATING 230769 77405 138988 14376 STAFF RECRUITMENT 194429 158868 34703 858 14710 124 14586 42266280 37211827 4643620 410833 3509117 5045668 240 3076023 3280902 52013 3265 2692 229519 223081 1563995 1413624 276669 150371 885546 836937 455000 409500 175904 452501 8663056 10401892 2674669 2066126 38191 2280795 182798 83882 936600 877910 3832258 5308713 X 4820798 5080693 10000 12486 4830798 5093179 8663056 10401892 262323 58 0 X X 0 1 X 1 1 1 X 24095060 25092062 9321430 9591411 10299027 78398990 24095060 25092062 9321430 9591411 10299027 78398990 78398990 8769 19516 -677 27608 41174 50924 68071 21018 37138 218325 78644923 113944558 0.99690 0.99710 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: SPECIAL EVENT REVENUE - 2017 AMOUNT: $ 41,174. 2018 AMOUNT: $ 50,924. 2019 AMOUNT: $ 68,071. 2020 AMOUNT: $ 21,018. 2021 AMOUNT: $ 37,138. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 655793 580917 74876 582227 531517 50710 325975 301190 24785 150371 INTERCOMPANY PAYABLE 29005 CASH ACCOUNTS HELD FOR CLIENTS 15786 DEFERRED COMPENSATION LIABILITY 833119 877910 X PART X, LINE 2: THE ORGANIZATION'S POLICY IS TO DISCLOSE OR RECOGNIZE INCOME TAX POSITIONS BASED ON MANAGEMENT'S ESTIMATE OF WHETHER IT IS REASONABLY POSSIBLE OR PROBABLE, RESPECTIVELY, THAT A LIABILITY HAS BEEN INCURRED FOR UNRECOGNIZED INCOME TAX POSITIONS. AS OF JUNE 30, 2022, THERE WERE NO UNCERTAIN TAX POSITIONS THAT ARE POTENTIALLY MATERIAL. X X X X X X X 1 RAISE THE BAR 4388 W TOMBOLO TRAIL TUCSON AZ 85745 GRANT WRITING 0 137500 28824 108676 137500 28824 108676 AZ COOKING WITH THE STARS 102044 81370 20674 13933 23210 10231 FUN IN THE SUN 46774 30310 16464 7039 9283 6836 6621 148818 111680 37138 20972 9283 30046 16852 77153 -40015 X X X 0 0 0 0 0 0 0 0 0 EMA KAMMEYER CEO UNTIL 4/30/21 276494 0 40 0 2076 0 13138 0 4138 0 295886 0 0 0 STEVEN M GUTHRIE CAO UNTIL 4/30/21, CEO AFT 188612 0 0 0 4581 0 15906 0 19711 0 228810 0 0 0 LAURA MORALES COO 178963 0 45 0 2949 0 15339 0 12736 0 210032 0 0 0 MARISSA ARENDT CFO 164734 0 45 0 5388 0 15195 0 10686 0 196048 0 0 0 X 1442 COST/SELLING PRICE X 487 127878 COST/SELLING PRICE X AUCTION ITEMS 140 17724 COST/SELLING PRICE X GRAPHIC DESIGN AND PRINTING 30 9670 COST/SELLING PRICE 0 0 0 0 FORM 990, PART VI, SECTION A, LINE 4 THE ARTICLES OF INCORPORATION WERE AMENDED AND RESTATED ON JANUARY 26, 2022 TO CHANGE THE NAME "EASTER SEALS BLAKE FOUNDATION" IS CHANGED TO "EASTERSEALS BLAKE FOUNDATION". THE BYLAWS WERE AMENDED AND RESTATED ON JANUARY 26, 2022. THE FOLLOWING CHANGES WERE MADE: ARTICLE II PURPOSES THE PARAGRAPH "THE FOUNDATION WILL PROVIDE OPPORTUNITIES, SUPPORTS AND SERVICES TO INFANTS, CHILDREN, ADULTS AND FAMILIES WITH COMPASSION AND RESPECT FOR THEM AS VALUED MEMBERS OF THEIR COMMUNITIES, INVOLVED AND PARTICIPATING BASED ON THEIR OWN CHOICES. THESE PROGRAMS SHALL BE DESIGNED TO PROMOTE THE FULLEST DEVELOPMENT OF INDIVIDUAL POTENTIAL AND SKILLS AVAILABLE TO EACH INDIVIDUAL CLIENT, AND AIM TO FILL GAPS IN ESSENTIAL TREATMENTS AND SERVICES LEFT BY EXISTING SOCIAL SERVICE PROGRAMS" IS CHANGED TO "THE ORGANIZATION WILL IMPLEMENT PROGRAMS AND PROVIDE SERVICES TO CHILDREN, ADULTS AND FAMILIES TO PROMOTE HEALTH AND INDEPENDENCE." ARTICLE III OFFICES SECTION GENERAL THE NAME "TRUSTEE" IS CHANGED TO "DIRECTOR". THE NAME "FOUNDATION" IS CHANGED TO ORGANIZATION". ARTICLE V BOARD OF TRUSTEES SECTION DUTIES OF THE TRUSTEES (DIRECTORS) THE PARAGRAPH IS ADDED. "THE DIRECTORS SHALL BE RESPONSIBLE FOR RAISING FUNDS NECESSARY TO MEET THE ORGANIZATION'S EXPENSES OF OPERATION NOT OTHERWISE PROVIDED BY THE AGENCY'S CONTRACTED REVENUES AND PROGRAM FEES BY IMPLEMENTING A PROGRAM WHICH ENCOURAGES AND FACILITATES CHARITABLE DONATIONS AND BEQUESTS TO THE ORGANIZATION. THE DIRECTORS SHALL HAVE THE RESPONSIBILITY OF INCREASING PUBLIC UNDERSTANDING OF THE FUNCTIONS OF AND NECESSITY FOR THE WORK OF THE ORGANIZATION; AND TO PREPARE GUIDELINES, WHEN NECESSARY, IN APPROACHING THE PUBLIC FOR PUBLICATION OF THE FOREGOING INFORMATION. ALL DIRECTORS SHALL BE REQUIRED TO MAKE AN ANNUAL FINANCIAL COMMITMENT TO THE ORGANIZATION'S FUND-RAISING GOALS FOR THE YEAR." SECTION NUMBER AND TERM OF OFFICE. THE "MULTIPLE CONSECUTIVE TERMS ARE PERMITTED" SENTENCE IS ADDED. SECTION NOMINATION OF TRUSTEES (DIRECTORS) IN THE PARAGRAPH "AT LEAST 15 DAYS PRIOR TO ANY REGULARLY SCHEDULED MEETING MAY BE PRESENTED FOR MEMBERSHIP AND VOTED UPON AT ANY REGULARLY SCHEDULED MEETING OF THE BOARD OF DIRECTORS THE BOARD DEVELOPMENT OR NOMINATING COMMITTEE SHALL GIVE NOTICE TO ALL MEMBERS OF THE NAME OF THE NOMINEES IT HAS CHOSEN FOR ELECTION TO THE BOARD OF DIRECTORS", THE NUMBER OF DAYS IS CHANGED TO THREE (3). ADDED SECTIONS: - DIVERSITY, EQUITY & INCLUSION - VOTING ARTICLE VI COMMITTEES AND ADVISORS DELETED SECTIONS: - ENDOWMENT FUND - FUND DEVELOPMENT - NOMINATING COMMITTEE - EXECUTIVE EVALUATION COMMITTEE FINANCE COMMITTEE AND AUDIT COMMITTEE SECTIONS ARE COMBINED INTO FINANCE/AUDIT COMMITTEE SECTION. ARTICLE VIII NOTICES SECTION WAIVER OF NOTICE THE SENTENCE: "ATTENDANCE BY A TRUSTEE AT ANY MEETING OF THE BOARD, OR ANY COMMITTEE THEREOF, SHALL CONSTITUTE A WAIVER OF NOTICE OF SUCH MEETING, EXCEPT WHERE SUCH ATTENDANCE IS FOR THE TRANSACTION OF BUSINESS ON THE GROUND THAT THE MEETING WAS NOT LAWFULLY CALLED OR CONVENED" IS DELETED. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWS AND APPROVES THE FORM 990 PRIOR TO ITS FILING. A COPY OF THE 990 IS PROVIDED TO MEMBERS OF THE BOARD FINANCE COMMITTEE FOR REVIEW, PRIOR TO FILING. A COPY OF THE 990 IS PROVIDED TO ALL MEMBERS OF THE BOARD AFTER FILING. FORM 990, PART VI, SECTION B, LINE 12C EASTERSEALS BLAKE FOUNDATION REQUIRES ALL BOARD MEMBERS TO REVIEW AND SIGN AN AGREEMENT DETAILING THE AGENCY'S POLICY REGARDING POTENTIAL CONFLICTS OF INTEREST. ALL BOARD MEMBERS ARE SURVEYED FOR DISCLOSURE OF ANY AND ALL TRANSACTIONS THAT FALL INTO THE CONFLICT OF INTEREST CATEGORY. THE FINANCE COMMITTEE THEN REVIEWS ALL DOCUMENTS RELATED TO THE TRANSACTIONS DISCLOSED TO ENSURE COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. THE FINANCE COMMITTEE REPORTS TO THE BOARD THE RESULTS OF SUCH REVIEW AT THE FOLLOWING BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15A AS DIRECTED BY THE BYLAWS OF EASTERSEALS BLAKE FOUNDATION, ARTICLE VI, SECTION 7, THE EXECUTIVE EVALUATION COMMITTEE OF THE BOARD OF TRUSTEES SHALL ANNUALLY EVALUATE THE PERFORMANCE, AND REVIEW AND ESTABLISH, THE COMPENSATION OF THE CEO. THIS EVALUATION SHALL HAVE THE INPUT OF ALL EXECUTIVE LEVEL STAFF SUPERVISED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. CONSOLIDATED FINANCIAL STATEMENTS ARE POSTED TO THE CANDID WEBSITE. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS NOT CHANGED ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. BLAKE HOLDING CORPORATION 7750 E BROADWAY BLVD SUITE A200 TUCSON AZ 85710 742728940 SUPPORT AZ 501(C)(3) LINE 12A, I EASTER SEALS BLAKE FOUNDATION 1 AVIVA CHILDREN'S SERVICES 153 S PLUMER AVE TUCSON AZ 85719 860948932 SUPPORT AZ 501(C)(3) LINE 7 EASTER SEALS BLAKE FOUNDATION 1 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 0 1 0 0 BLAKE HOLDING CORPORATION K 853822 FMV AVIVA CHILDREN'S SERVICES K 104667 FMV AVIVA CHILDREN'S SERVICES M 397367 FMV AVIVA CHILDREN'S SERVICES Q 961883 FMV BLAKE HOLDING CORPORATION Q 667762 FMV EASTER SEALS BLAKE FOUNDATION AND RELATED ENTITIES HEREBY REQUEST A 'REASONABLE CAUSE' ABATEMENT OF PENALTIES FOR THE LATE FILING OF THE FORMS 990 FOR ALL THREE ENTITIES: EASTER SEALS BLAKE FOUNDATION (ESBF), AVIVA CHILDREN'S SERVICES (ACS), AND BLAKE HOLDING CORPORATION (BHC) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 (FY22). THIS REQUEST IS BASED ON THE RANSOMWARE ATTACK(S) THAT STRUCK AND CRIPPLED OUR THIRD-PARTY ELECTRONIC HEALTHCARE RECORDS VENDOR, SIGMUND SOFTWARE, LLC, BETWEEN AUGUST 23, 2022 AND SEPTEMBER 9, 2022. RESTORATION OF THE RANSOMED CLIENT MEDICAL RECORDS DID NOT OCCUR UNTIL OCTOBER 28, 2022; AND THE REMOVAL OF DUPLICATE CLAIMS, CLAIMS ERRORS, AND PAYMENT POSTING ERRORS CREATED DURING THE MEDICAL DATA RESTORATION PROCESS DID NOT OCCUR UNTIL DECEMBER 7, 2022. THIS EVENT CAUSED SIGNIFICANT DELAYS IN THE PREPARATION AND SUBMISSION OF THE FY2022 THIRD PARTY FINANCIAL AUDIT AND RELATED FORMS 990.THE FACTS OF THE MATTER ARE THESE:1. ANNUALLY, THESE THREE RELATED ENTITIES UNDERGO A CONSOLIDATED FINANCIAL AUDIT, AFTER WHICH THE INDIVIDUAL FORMS 990 ARE PREPARED AND SUBMITTED FOR EACH AGENCY. FIELDWORK FOR THE FISCAL YEAR JULY 1, 2021 JULY 30, 2022 (FY22) AUDIT WAS SCHEDULED TO BEGIN MONDAY, OCTOBER 3, 2022.2. AMONG OTHER SERVICES, EASTER SEALS BLAKE FOUNDATION AND AVIVA CHILDREN'S SERVICES PROVIDE BEHAVIORAL/MENTAL HEALTH SERVICES TO CHILDREN AND ADULTS. A. FOR THE FISCAL YEAR ENDED JUNE 30, 2022 THESE BEHAVIORAL HEALTH SERVICES ACCOUNTED FOR OVER 40% OF THE $47 MILLION IN ANNUAL REVENUES AND RELATED EXPENSES FOR THE COMBINED AGENCIES.B. GIVEN THE SIGNIFICANT REVENUES INVOLVED, IT IS IMPOSSIBLE TO COMPLETE A FINANCIAL AUDIT, AND RELATED TAX RETURNS, OF THESE THREE AGENCIES WITHOUT CONSIDERATION, INCLUDING TESTING, OF THE MEDICAL BILLING FOR BEHAVIORAL HEALTH SERVICES.3. ON SUNDAY, SEPTEMBER 9, 2022, SIGMUND SOFTWARE LLC INFORMED EASTER SEALS BLAKE FOUNDATION THAT IT HAD BEEN THE VICTIM OF A SOFTWARE INTRUSION BY HIVE, WHICH HAD NOT ONLY STOLEN MEDICAL RECORDS DATA FROM THEIR SYSTEM, BUT HAD ALSO ENCRYPTED THE REMAINING PATIENT DATA. (HTTPS://DATABREACHES.NET ARTICLE ATTACHED)4. FROM SEPTEMBER 9TH THROUGH OCTOBER 28TH, 2022, SIGMUND SOFTWARE LLC WORKED TO RESTORE THE ENCRYPTED MEDICAL BILLING DATA FOR EASTER SEALS BLAKE FOUNDATION AND AVIVA CHILDREN'S SERVICES.A. SIGMUND SOFTWARE LLC'S COMMUNICATIONS AND UPDATES REGARDING THE STATUS OF THE RESTORATION OF THE ENCRYPTED MEDICAL DATA WAS SO POOR DURING THIS TIME THAT EASTER SEALS BLAKE FOUNDATION WAS FORCED TO SEEK THE INTERVENTION OF LEGAL COUNSEL (MOOMJIAN LAW FIRM LETTER IS AVAILABLE FOR REVIEW).5. REVIEW OF THE RESTORED MEDICAL CLAIMS DATA BEGAN ON OCTOBER 28, 2022 AND FOUND THOUSANDS OF ERRORS IN THE RESTORED DATA. ON OCTOBER 28TH, EASTER SEALS BLAKE FOUNDATION (ESBF) NOTIFIED SIGMUND SOFTWARE LLC THAT ESBF WAS UNABLE TO CLOSE THE MONTH OF JUNE 2022 FOR MEDICAL BILLING, DUE TO THE SIGNIFICANT ERRORS CAUSED BY THE DATA BREACH AND RESTORATION. (EMAIL OF 10/28/2022 IS AVAILABLE FOR REVIEW)A. AUDIT TESTING OF FY2022 MEDICAL BILLING REVENUE, COLLECTIONS, AND MEDICAL ACCOUNTS RECEIVABLE, WHICH SHOULD HAVE BEGUN ON OCTOBER 3, COULD NOT PROCEED ANY FURTHER UNTIL MEDICAL BILLING FOR JUNE 2022 COULD BE RESTORED.6. ON DECEMBER 7, 2022, MEDICAL BILLING DATA WAS SUFFICIENTLY RESTORED IN ORDER TO CONTINUE THE FINANCIAL AUDIT.7. THE DELAY CAUSED BY THIS RANSOMWARE ATTACK INTERFERED WITH THE THIRD-PARTY AUDITOR'S SCHEDULES, RESULTING IN ADDITIONAL TIME AND EXPENSE TO THE AUDIT FIRM, AND FURTHER DELAYS CAUSED BY TRYING TO FIT IN THE COMPLETION OF THE CONSOLIDATED AUDIT AND FORMS 990 FOR ESBF, ACS AND BHC INTO AN ALREADY BUSY SPRING SCHEDULE. EASTER SEALS BLAKE FOUNDATION AND ITS RELATED ENTITIES AVIVA CHILDREN'S SERVICES AND BLAKE HOLDING CORPORATION DID REQUEST EXTENSIONS FOR THE FY2022 FORMS 990 FILINGS. UNFORTUNATELY, THE DELAYS CAUSED BY THE MEDICAL RECORDS DATA BREACH RESULTED IN MISSING THE EXTENSION DEADLINE. ESBF AND THE RELATED ENTITIES WERE NOT NEGLECTFUL OR CARELESS, AND EXERCISED ORDINARY BUSINESS CARE AND PRUDENCE IN THE SUBMISSION OF THE FY2022 FORMS 990. THE HOSTILE ACTIONS OF OTHERS TAKEN AGAINST OUR THIRD-PARTY ELECTRONIC HEALTHCARE RECORDS VENDOR SIGMUND SOFTWARE LLC, AND THE SUBSEQUENT DELAYS IN THE RESTORATION OF THE ENCRYPTED MEDICAL BILLING DATA, WERE ACTIONS BEYOND THIS AGENCY'S CONTROL.