2022-05-13T12:39:21-05:00 2021-06-30 271728945 PKF O'CONNOR DAVIES LLP 500 MAMARONECK AVENUE SUITE 301 HARRISON NY 105281633 990 2020-07-01 133391210 COVENANT HOUSE CALIFORNIA INC COVE 3234613131 1325 NORTH WESTERN AVENUE LOS ANGELES CA 90027 TYRONE POTTS CFO 3234613131 2022-05-13 1 TYRONE POTTS XXX-XX-XXXX GARRETT M HIGGINS P00543209 9143818900 2022-05-13 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z WILLIAM BEDROSSIAN 1325 NORTH WESTERN AVENUE LOS ANGELES CA 90027 23148025 0 X WWW.COVENANTHOUSECALIFORNIA.ORG X 1986 CA TO PROVIDE SHELTER AND OTHER SERVICES, SUCH AS MEDICAL CARE, EDUCATIONAL PROGRAMS, LEGAL AID, RECREATION AND STREET OUTREACH TO HOMELESS RUNAWAY AND THROWAWAY YOUTH. 22 22 249 285 73354 0 20483660 22760745 80753 84127 33562 66924 -179428 113806 20418547 23025602 3128226 4414194 0 0 10857251 11228795 0 0 797731 4440059 4092690 18425536 19735679 1993011 3289923 23065241 27501238 6250577 6148741 16814664 21352497 X SEE SCHEDULE O 0 0 9289624 1693493 84127 SHORT-TERM HOUSING AND CRISIS CARE (FORMERLY SHELTER AND CRISIS CARE)THE SHORT-TERM HOUSING AND CRISIS CARE PROGRAM PROVIDES EMERGENCY SERVICES, TEMPORARY HOUSING, FOOD, CLOTHING, MEDICAL CARE, MENTAL HEALTH SERVICES, AND LEGAL AID TO YOUNG PEOPLE EXPERIENCING HOMELESSNESS OR HUMAN TRAFFICKING THROUGH COVENANT HOUSE AFFILIATES IN NORTH AND CENTRAL AMERICA. CASE MANAGERS WORK WITH EACH INDIVIDUAL YOUTH TO DEVELOP AND IMPLEMENT A CASE PLAN THAT CENTERS UPON INCREASING THEIR INDEPENDENCE, SELF-CONFIDENCE, AND ABILITY TO ACCESS COMMUNITY LINKAGES. DURING FISCAL YEAR 2021, COVENANT HOUSE CALIFORNIA SERVED 2,498 YOUTH. 5796141 2128981 TRANSITIONAL LIVING - RIGHTS OF PASSAGE:COVENANT HOUSE'S TRANSITIONAL LIVING PROGRAMS, OFTEN REFERRED TO AS "RIGHTS OF PASSAGE OR ROP, ARE WHERE YOUNG PEOPLE TAKE STEPS TOWARD INDEPENDENCE. YOUTH LIVE IN ROP FOR 18-24 MONTHS, WHERE THEY TAP THEIR POTENTIAL AND PLAN FOR THE FUTURE. HERE THEY BUILD BASIC LIFE SKILLS AND FINANCIAL LITERACY, PARTICIPATE IN EDUCATIONAL AND VOCATIONAL PROGRAMS, SEEK EMPLOYMENT WITH LONG-TERM ADVANCEMENT AND CAREER PROSPECTS, AND WORK TOWARD MOVING INTO THEIR OWN SAFE AND STABLE HOUSING. OUR STAFF SUPPORT EACH YOUNG PERSON ON THEIR JOURNEY TOWARD SUSTAINABLE INDEPENDENCE AND A HOPE-FILLED FUTURE. DURING FISCAL YEAR 2021, CHC PROVIDED 76,024 NIGHTS OF CARE. 1549018 202874 OUTREACH:OUR STREET OUTREACH TEAMS ACTIVELY SEEK OUT YOUNG PEOPLE EXPERIENCING HOMELESSNESS WHO MAY NEED HELP. THE TEAM ASSISTS WITH CRITICAL SAFETY NEEDS BY PROVIDING TRANSPORTATION TO A SAFE SHELTER. YOUNG PEOPLE LIVING ON THE STREETS CAN RECEIVE FOOD, WATER, HYGIENE KITS, CLOTHING, BLANKETS, COUNSELING, AND REFERRALS TO SERVICES SUCH AS MEDICAL CARE, EMPLOYMENT, AND EDUCATION SERVICES. DURING FISCAL YEAR 2021, COVENANT HOUSE CALIFORNIA WORKED WITH 7,796 CONTACTS AND PROVIDED 272,655 MEALS. 1081243 211977 DROP-IN SERVICES (FORMERLY COMMUNITY SERVICE CENTER):DROP-IN SERVICES ARE ANOTHER FORM OF OUTREACH AT COVENANT HOUSE. YOUTH IN THIS PROGRAM ARE NOT RECEIVING RESIDENTIAL SERVICES, BUT ARE PROVIDED ACCESS TO NUTRITIOUS MEALS, HOT SHOWERS, HYGIENE PRODUCTS, LAUNDRY SERVICES, AND NEW CLOTHING AND SHOES. THEY CAN REQUEST AND RECEIVE MEDICAL AND MENTAL HEALTH SERVICES, CASE MANAGEMENT SERVICES, TRANSITIONAL AND PERMANENT HOUSING ASSISTANCE, AND THEY MAY TAKE PART IN THE EDUCATION AND EMPLOYMENT PROGRAM. DURING FISCAL YEAR 2021, CHC PROVIDED 131 JOB PLACEMENTS AND 94 EDUCATIONAL PLACEMENTS. 612227 166063 MEDICALINCLUDES MEDICAL FACILITIES OPERATED AT AND MAINTAINED BY CERTAIN COVENANT HOUSE AFFILIATES TO PROVIDE IMMEDIATE AND ONGOING MEDICAL ATTENTION TO INDIVIDUALS RECEIVING SERVICES AT THE SITE. 293634 10806 YOUNG FAMILIES PROGRAM (FORMERLY MOTHER/CHILD PROGRAM):THE YOUNG FAMILIES PROGRAM PROVIDES EMERGENCY SERVICES, SHORT AND LONG-TERM HOUSING, FOOD, AND MEDICAL AND MENTAL HEALTH CARE TO PREGNANT AND PARENTING YOUTH AND THEIR CHILDREN. OUR PROGRAM ALSO OFFERS YOUNG FAMILIES ACCESS TO FREE CHILD CARE SERVICES, PARENTING SUPPORT, AND A FULL RANGE OF EDUCATIONAL, VOCATIONAL, AND JOB PLACEMENT SERVICES. PUBLIC EDUCATION:COVENANT HOUSE USES A VARIETY OF PLATFORMS TO INFORM AND EDUCATE THE PUBLIC, GOVERNMENT OFFICIALS, AND YOUNG PEOPLE ABOUT YOUTH HOMELESSNESS AND HUMAN TRAFFICKING. WE EMPLOY WEBSITES, SOCIAL MEDIA, PUBLIC SERVICE ANNOUNCEMENTS, BILLBOARDS, NEWSLETTERS, SCHOOL-BASED PROGRAMS, TALKS, LECTURES, AND PEER-TO-PEER EVENTS ACROSS OUR FEDERATION TO RAISE AWARENESS OF THE CAUSES AND IMPACTS OF YOUTH HOMELESSNESS AND OF THE SIGNS THAT A YOUNG PERSON MIGHT BE EXPERIENCING HOMELESSNESS OR HUMAN TRAFFICKING.SCHOOLS:THE COVENANT HOUSE ACADEMY CHARTER SCHOOLS PROGRAM IN MICHIGAN PROVIDES SERVICES TO YOUNG PEOPLE WHO NEED SUPPORT TO COMPLETE THEIR EDUCATION AND OBTAIN EMPLOYMENT. IF YOUTH HAVE BEEN SUSPENDED FROM SCHOOL, THE PROGRAM PROVIDES GENERAL EDUCATIONAL DEVELOPMENT CLASSES, JOB TRAINING, AND A REDUCTION IN THE LENGTH OF THE SUSPENSION.PERMANENT SUPPORTIVE HOUSING:THE PERMANENT SUPPORTIVE HOUSING PROGRAM PROVIDES HOUSING TO YOUTH AND YOUNG FAMILIES THROUGH SCATTERED-SITE APARTMENTS, WHERE THEY RECEIVE ONGOING CASE MANAGEMENT AND BEHAVIORAL HEALTH SERVICES. WE HELP YOUTH BY COVERING A PORTION OF THEIR RENT, A PORTION THAT DWINDLES AS THEIR CAPACITY FOR INDEPENDENCE INCREASES. COMMUNITY APARTMENTS AND RAPID REHOUSING PROGRAMS ARE EMERGING AS AN INCREASINGLY IMPORTANT PART OF OUR CONTINUUM OF CARE. 1987104 388846 18621887 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 104 0 249 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 22 22 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA FL GA IL MD MA MI NJ NY NC PA RI VA X X X TYRONE POTTS 3234613131 1325 NORTH WESTERN AVENUE LOS ANGELES CA 90027 X OMID YAZDI CHAIR 1.00 0.00 X X 0 0 0 MICHAEL KIBLER VICE CHAIR 1.00 0.00 X X 0 0 0 MELISSA ABBOTT DIRECTOR 1.00 0.00 X 0 0 0 FRED ALI DIRECTOR 1.00 0.00 X 0 0 0 GUS ANAGNOS DIRECTOR 1.00 0.00 X 0 0 0 HON WILLIAM BRODHEAD DIRECTOR 1.00 0.00 X 0 0 0 MIA DEMONTIGNY DIRECTOR 1.00 0.00 X 0 0 0 K KRISTINE DUNN DIRECTOR 1.00 0.00 X 0 0 0 JOY ERVEN DIRECTOR 1.00 0.00 X 0 0 0 KELLY GORDON DIRECTOR 1.00 0.00 X 0 0 0 JACQUELINE JACQUI GUICHELAAR DIRECTOR 1.00 0.00 X 0 0 0 PAUL W HANNEMAN DIRECTOR 1.00 0.00 X 0 0 0 ILENE HARKER DIRECTOR 1.00 0.00 X 0 0 0 RICARDO HARTIGAN DIRECTOR 1.00 0.00 X 0 0 0 DENNIS JILOT DIRECTOR 1.00 0.00 X 0 0 0 DARYL KUETER DIRECTOR 1.00 0.00 X 0 0 0 KEVIN MACLELLAN DIRECTOR 1.00 0.00 X 0 0 0 JOHN MAVREDAKIS DIRECTOR 1.00 0.00 X 0 0 0 LIZA PANO DIRECTOR 1.00 0.00 X 0 0 0 ADAM PETTIJOHN DIRECTOR 1.00 0.00 X 0 0 0 JAMES ROSSITER DIRECTOR 1.00 0.00 X 0 0 0 HERBERT DICK SCHULZE DIRECTOR, THRU JUNE 2021 1.00 0.00 X 0 0 0 SHANTELL WILLIAMS DIRECTOR 1.00 0.00 X 0 0 0 WILLIAM BEDROSSIAN EXECUTIVE DIRECTOR 39.50 0.50 X 264648 0 37062 DAVID WEAVER TREASURER/CFO 40.00 0.00 X 170066 0 25477 STACEY CHRISTENSON SECRETARY, DIR. OF OPERATIONS 40.00 0.00 X 76835 0 11205 KEVIN RYAN PRESIDENT & CEO 1.00 34.00 X 0 23851 31523 AMI ROWLAND CHIEF OPERATING OFFICER 40.00 0.00 X 165517 0 19223 AMANDA SATTLER CHIEF DEVELOPMENT OFFICER 40.00 0.00 X 157982 0 15745 MARISSA ESPINOZA ASSOCIATE EXEC. DIRECTOR 40.00 0.00 X 106040 0 20446 ANDRE GOODE SENIOR VP NORTHERN CALIFORNIA 40.00 0.00 X 131233 0 460 DIANE MILAN-SCOTT FORMER DIRECTOR 0.00 35.00 X 0 131398 32695 1072321 155249 193836 6 1 1 0 FOOD MANAGEMENT ASSOCIATES INC 22349 LA PALMA AVENUE 115 YORBA LINDA CA 92887 FOOD SERVICE 770246 INTERSPACE BUILDERS INC 1939 HARRISON STREET OAKLAND CA 94612 CONSTRUCTION SERVICE 574113 EFFORTLESS OFFICE ENTERPRISES LLC 5655 W BADURA AVENUE SUITE 180 LAS VEGAS NV 89118 INFORMATION TECHNOLOGY SUPPORT 386770 DTA GREEN CONSTRUCTION 11333 MOORPARK ST 2 STUDIO CITY CA 91602 CONSTRUCTION SERVICE 328533 ABM JANITORIAL SERVICES INC LOCKBOX 53120 LOS ANGELES CA 900743120 CLEANING/MAINTENANCE 275440 6 159350 366650 2738555 12099945 7396245 1516716 22760745 MEDICAL REVENUE 621400 84127 84127 84127 60559 60559 83782 0 83782 83782 83782 62293 55928 6365 6365 6365 17165 366650 66495 -49330 -49330 BARBER COLLEGE 611710 73354 73354 REFUND 900099 6000 6000 79354 23025602 84127 73354 107376 4414194 4414194 617071 543922 57164 15985 8186555 7884592 84241 217722 503110 485856 6970 10284 947085 911941 15604 19540 974974 935933 15068 23973 23341 23341 36400 30964 3640 1796 6824 6824 947978 889589 13236 45153 495274 143202 10389 341683 169015 164381 2712 1922 904966 828634 3278 73054 38301 36371 1240 690 17731 17013 419 299 140969 130776 10193 684246 581605 68426 34215 150634 144446 2940 3248 EQUIPMENT 395343 381873 9340 4130 OTHER EXPENSES 52943 46937 2648 3358 STAFF RECRUITMENT 19809 18027 1453 329 STAFF INCENTIVES & RECO 8916 8290 276 350 19735679 18621887 316061 797731 X 4074828 1826265 397301 505095 2962272 5096277 5943 4606 172101 274460 28303457 12896930 11516697 15406527 2115120 2598953 1820979 1789055 23065241 27501238 1696518 1937262 428505 193722 2530684 3981423 1594870 36334 6250577 6148741 X 14528728 19678369 2285936 1674128 16814664 21352497 23065241 27501238 X 3289923 464156 816504 -32750 X X 0 1 X 1 1 1 X 10261273 15015576 18230828 20450910 22760745 86719332 10261273 15015576 18230828 20450910 22760745 86719332 86719332 46150 53618 65476 55435 144341 365020 100 400012 3592 6000 409704 87494056 362005 0.99110 0.98980 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2017 AMOUNT: $ 100. 2019 AMOUNT: $ 3,592. CLASS ACTION PROCEEDS - 2018 AMOUNT: $ 400,012. REFUND - 2020 AMOUNT: $ 6,000. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4862428 4862428 18659864 10856441 7803423 1899059 1783462 115597 2882106 257027 2625079 15406527 OTHER RECEIVABLE 58532 DUE FROM PARENT 4343 SECURITY DEPOSITS 40680 DUE FROM AFFILIATE 1685500 1789055 CAPITAL LEASE OBLIGATIONS 36045 ANNUITIES PAYABLE 289 36334 X 24619293 464156 1129535 1593691 23025602 0 23025602 20081460 313031 32750 345781 19735679 0 19735679 PART X, LINE 2: THE ORGANIZATION RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE ORGANIZATION HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION AND/OR DISCLOSURE. THE ORGANIZATION IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR YEARS PRIOR TO JUNE 30, 2018. PART XII, LINE 2D - OTHER ADJUSTMENTS: WRITE OFF OF UNCOLLECTIBLE PLEDGES 32,750. CEO SLEEPOUT 190194 190194 62251 GALA EVENT 167608 150443 17165 1 26013 26013 4244 383815 366650 17165 66495 66495 -49330 1 FOOD, SHELTER, CLOTHING & ALLOWANCE 2498 4414194 COST FOOD, SHELTER, CLOTHING & ALLOWANCE PART I, LINE 2: COVENANT HOUSE CALIFORNIA PROVIDES NON-CASH ASSISTANCE IN THE FORM OF MEDICAL, SUBSTANCE ABUSE, VOCATIONAL EDUCATION, JOB TRAINING, AND ETC. AS SUCH, THERE IS NO REQUIREMENT TO MONITOR THE USE OF THESE NON-CASH ITEMS. COVENANT HOUSE CALIFORNIA REVIEWS ALL GRANT RELATED EXPENDITURES ON A MONTHLY BASIS, WITH THE MAJORITY OF THE GRANT FUNDS ARE ON A REIMBURSEMENT BASIS. CONSEQUENTLY ALL EXPENDITURES MUST BE REVIEWED TO INSURE THAT THEY COMPLY WITH GRANT PROVISIONS PRIOR TO SUBMITTING THE REIMBURSEMENT REQUEST. IN ADDITION, ALL EXPENDITURES/ ASSISTANCES ARE DOCUMENTED IN EACH RESIDENT'S CASE FILE. X X X X X 0 0 0 0 0 0 0 0 0 WILLIAM BEDROSSIAN EXECUTIVE DIRECTOR 250383 0 0 0 14265 0 8304 0 28758 0 301710 0 0 0 DAVID WEAVER TREASURER/CFO 156696 0 0 0 13370 0 5215 0 20262 0 195543 0 0 0 AMI ROWLAND CHIEF OPERATING OFFICER 158995 0 0 0 6522 0 0 0 19223 0 184740 0 0 0 AMANDA SATTLER CHIEF DEVELOPMENT OFFICER 157864 0 0 0 118 0 4721 0 11024 0 173727 0 0 0 DIANE MILAN-SCOTT FORMER DIRECTOR 0 130882 0 0 0 516 0 30208 0 2487 0 164093 0 0 PART I, LINE 3 THE PRESIDENT/CEO'S COMPENSATION IS DETERMINED BY THE EXECUTIVE COMMITTEE OF COVENANT HOUSE INTERNATIONAL (PARENT) WORKING IN CONJUNCTION WITH COMPARABILITY DATA SUCH AS SALARY SURVEYS WITH SIMILARLY SIZED NON-PROFITS. PERIODICALLY THE ORGANIZATION HIRES AN INDEPENDENT CONSULTANT TO REVIEW COMPARABLE SALARIES FOR THE PRESIDENT/CEO, OTHER OFFICERS AND KEY EMPLOYEES. GENERALLY THE BOARD EVALUATES THE PRESIDENT'S COMPENSATION ANNUALLY. THE DETERMINATION IS BASED ON THE PERFORMANCE EVALUATION THAT FACTORS INTO ACCOUNT EFFECTIVENESS, PERFORMANCE, AND ACHIEVEMENT OF GOALS. X 1060858 COST X 10 67521 SALE PRICE X 238 139906 COST X EQUIPMENT 52 143984 COST X GIFT BASKET/ GIFT CARD/ CERTIFICATE 47 87747 COST X TOYS/OTHER 10 12863 COST X SUPPLIES 12 3837 COST 0 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS IN PART I, COLUMN (B) OF SCHEDULE M. FORM 990, PART III, LINE 1: IN 33 CITIES ACROSS SIX COUNTRIES, COVENANT HOUSE BUILDS BRIDGES TO HOPE FOR YOUNG PEOPLE FACING HOMELESSNESS AND SURVIVORS OF HUMAN TRAFFICKING, MEETING THEIR IMMEDIATE NEEDS FOR FOOD, CLOTHING, PROTECTION, AND MEDICAL CARE AND SUPPORTING THEM TO ADVANCE THEIR GOALS OF EDUCATION AND EMPLOYMENT. COVENANT HOUSE ENCOMPASSES A ROBUST NETWORK OF "HOUSES," WITH BEST-IN-CLASS SERVICES AND A SHARED COMMITMENT TO UNCONDITIONAL LOVE, ABSOLUTE RESPECT, AND RELENTLESS SUPPORT FOR EACH YOUNG PERSON WHO WALKS THROUGH OUR DOORS. FOUNDED AS A DROP-IN CENTER IN NEW YORK CITY IN 1972, COVENANT HOUSE NOW SERVES THOUSANDS OF CHILDREN AND YOUTH EVERY YEAR IN OUR RESIDENTIAL, OUTREACH, AND DROP-IN PROGRAMS. OUR DEDICATED STAFF ACROSS THE UNITED STATES, GUATEMALA, HONDURAS, MEXICO, NICARAGUA, AND CANADA EMPLOY A STRENGTHS-BASED, TRAUMA-INFORMED PRACTICE MODEL THAT HELPS YOUNG PEOPLE DISCOVER AND DEVELOP THEIR POWER TO OVERCOME ADVERSITY NOW AND INTO THE FUTURE. YOUNG PEOPLE ARRIVE AT COVENANT HOUSE WITH AN ARRAY OF LIVED EXPERIENCES, INCLUDING FOSTER CARE, FAMILY TRAUMA, SUBSTANCE USE, MENTAL HEALTH ISSUES, DOMESTIC VIOLENCE, SEXUAL ABUSE, AND MORE. OUR STAFF MEET THEM WHERE THEY ARE AND ACCOMPANY THEM, THROUGH OUR HIGH-QUALITY CONTINUUM OF SERVICES, ON THEIR JOURNEY TO WHOLENESS AND INDEPENDENCE. DURING FY21, THE WORLDWIDE COVID-19 PANDEMIC IMPACTED THE NUMBER OF YOUTH COVENANT HOUSE REACHED, AS AFFILIATES ENSURED SOCIAL DISTANCING, SET ASIDE ISOLATION ROOMS FOR SYMPTOMATIC YOUTH, PAUSED OUR IN-PERSON PREVENTION PROGRAMS, AND, DURING LOCKDOWNS, SUSPENDED OR MODIFIED STREET OUTREACH. THE PANDEMIC IMPACTED ALL OF OUR OPERATIONS, INCLUDING FOOD PRODUCTION (INCREASED 75%); THE CREATION OF ONLINE OPPORTUNITIES FOR MENTAL HEALTH CARE, EDUCATION, AND JOB READINESS TRAINING; DEVELOPMENT OF APPROPRIATE INTAKE PROTOCOLS; IMPLEMENTATION OF NEW CLEANING AND SANITIZING PROTOCOLS, AND OTHER MEASURES, ALL OF WHICH DROVE UP OPERATING COSTS. NEVERTHELESS, IN FY21 COVENANT HOUSE AFFILIATES PROVIDED A TOTAL OF NEARLY 690,000 NIGHTS OF HOUSING AND SAFETY FOR, ON AVERAGE, 1,883 YOUTH EACH NIGHT. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION AMENDED ITS BY-LAWS IN DECEMBER 2020: 1. THE ORGANZATION CHANGE THE NUMBER COMPOSION OF ITS BOARD OF DIRECTORS TO NOT BE LESS THAN SIX OR MORE THAN THIRTY DIRECTORS. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE CORPORATE MEMBER OF COVENANT HOUSE CALIFORNIA, INC. IS ITS PARENT ORGANIZATION, COVENANT HOUSE, D/B/A COVENANT HOUSE INTERNATIONAL. FORM 990, PART VI, SECTION A, LINE 7A COVENANT HOUSE CALIFORNIA'S (CHC) PARENT ORGANIZATION, COVENANT HOUSE INTERNATIONAL HAS THE RIGHT TO ELECT OR APPOINT OFFICERS OF CHC'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING DECISIONS FOR THE GOVERNING BODY ARE SUBJECT TO APPROVAL BY CHC PARENT ORGANIZATION, COVENANT HOUSE INTERNATIONAL - AMENDMENT OR REPEAL OF THE BY-LAWS, INCREASE OR DECREASE IN THE NUMBER OF BOARD OF DIRECTORS AND APPOINT/REMOVE MEMBERS OF THE BOARD AND THE OFFICERS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM IN CONJUCTION WITH THE ORGANIZATION'S ACCOUNTING DEPARTMENT AND THEN REVIEWED BY THE PARENT ORGANIZATION, COVENANT HOUSE INTERNATIONAL, AND THE CFO OF THE ORGANIZATION. THE CFO REVIEWS THE DRAFT AND FORWARDS IT TO THE EXECUTIVE DIRECTOR FOR FINAL REVIEW. THE FINAL FORM IS ELECTRONICALLY PROVIDED TO ALL MEMBERS OF THE BOARD OF DIRECTORS FOR FURTHER REVIEW AND COMMENTS PRIOR TO ITS FILING. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES ANNUAL DISCLOSURE AND AFFIRMATION OF THE CONFLICT OF INTEREST POLICY BY ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES. THE DISCLOSURE STATEMENT REQUIRED EACH OFFICER, DIRECTOR, AND KEY EMPLOYEE TO DISCLOSE ANY BUSINESS OR PERSONAL INTERESTS, DIRECT OR INDIRECT, THAT THE PERSON MAY HAVE IN AN ORGANIZATION THAT COMPLETES WITH OR DOES BUSINESS WITH COVENANT HOUSE INTERNATIONAL OR ANY OTHER ORGANIZATION BUSINESS/ AGENCY AFFILIATED WITH COVENANT HOUSE INTERNATIONAL. IF A CONFLICT IS DETERMINED TO EXIST, IT MUST BE REPORTED AND ADDRESSED TO THE SATISFACTION OF THE ORGANIZATION. ANY OTHER PERSON HAVING A CONFLICT, AND ATTENDING SAID MEETING, SHALL RETIRE FROM THE ROOM IN WHICH THE BOARD OR COMMITTEE IS MEETING AND SHALL NOT PARTICIPATE IN THE FINAL DELIBERATIONS OR DECISIONS REGARDING THE MATTER UNDER CONSIDERATION. ANY INTERESTED DIRECTOR SHALL ALSO ABSTAIN DURING SUCH VOTE. THE MINUTES OF THE MEETING OF THE BOARD OR COMMITTEE SHALL REFLECT THAT THE CONFLICT OF INTEREST WAS DISCLOSED AND THAT THE INTERESTED PERSON WAS NOT PRESENT DURING THE FINAL DISCUSSION OR VOTE AND DID NOT VOTE. A SUMMARY OF THE ANNUAL CONFLICTS OF INTEREST AND COPIES OF THE CONFLICTS OF INTEREST REPORTS FROM THE DIRECTORS, EXECUTIVE DIRECTOR, AND OFFICERS OF THE ORGANIZATION ARE ALSO SENT TO THE PARENT ORGANIZATION, COVENANT HOUSE INTERNATIONAL. THE PARENT, COVENANT HOUSE INTERNATIONAL ALSO ENSURES THE ANNUAL CONFLICTS OF INTEREST REPORTS ARE ACCOMPLISHED FOR EACH AFFILIATE AND THAT THE REQUIRED INFORMATION IS SENT TO THEM. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE DIRECTOR'S COMPENSATION IS DETERMINED BY THE COMPENSATION COMMITTEE WORKING IN CONJUNCTION WITH THE PRESIDENT OF COVENANT HOUSE INTERNATIONAL (PARENT). A SALARY STRUCTURE AND RANGE WERE DETERMINED USING A COMPENSATION COMMITTEE AND INDEPENDENT CONSULTANT FOR THE EXECUTIVE DIRECTOR. FACTORS CONSIDERED WERE THE SIZE OF THE AGENCY BUDGET, PROGRAM SIZE AND COMPLEXITY (2 SITES IN LOS ANGELES AND THE BAY AREA), LOCAL MARKET COMPATIBILITY, AND THE COST OF LIVING, WITH COMPENSATION APPROVED BY THE CHC BOARD OF DIRECTORS. COMPENSATION IS SET FOR KEY EMPLOYEES AND OTHER OFFICERS BASED ON PREVAILING INDUSTRY WAGES FOR LOS ANGELES AND THE BAY AREA. RECORDS OF EXECUTIVE COMMITTEE'S COMPENSATION DECISIONS ARE MAINTAINED IN THE COVENANT HOUSE INTERNATIONAL (PARENT) HUMAN RESOURCES DEPARTMENT RECORD. THIS PROCESS WAS LAST UNDERTAKEN IN FISCAL YEAR 2021. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS AND FORM 990 ARE POSTED ON ITS WEBSITE. THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE ALL AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST AT 1325 NORTH WESTERN AVENUE, HOLLYWOOD, CA 90027. FORM 990, PART VII, SECTION A: DIANE MILAN-SCOTT LEFT COVENANT HOUSE CALIFORNIA'S (CHC) BOARD DURING FY2018. SHE'S REPORTED ON FORM 990, PART VI, SECTION AS A FORMER DIRECTOR BECAUSE SHE RECEIVED COMPENSATION FROM CHC'S PARENT, CHI AS AN EMPLOYEE OF CHI, EVP, PROGRAM OPERATIONS. FORM 990, PART VIII, LINE 1E: ON MAY 1, 2020, CHC RECEIVED LOAN PROCEEDS IN THE AMOUNT OF $1,976,026 UNDER THE PAYCHECK PROTECTION PROGRAM (THE "PPP"). THE PPP, ESTABLISHED AS PART OF THE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT (THE "CARES ACT"), PROVIDES FOR LOANS TO QUALIFYING ENTITIES FOR AMOUNTS UP TO 2.5 TIMES THE 2019 AVERAGE MONTHLY PAYROLL EXPENSES OF THE QUALIFYING ENTITY. THE PPP LOAN BEARS AN INTEREST RATE OF 1% PER ANNUM. ALL OR A PORTION OF THE PPP LOAN PRINCIPAL AND ACCRUED INTEREST IS FORGIVABLE AS LONG AS THE BORROWER USES THE LOAN PROCEEDS FOR ELIGIBLE PURPOSES, AS DESCRIBED IN THE CARES ACT, OVER A PERIOD OF EITHER EIGHT OR TWENTY-FOUR WEEKS (THE "COVERED PERIOD"). THE AMOUNT OF LOAN FORGIVENESS COULD BE REDUCED IF THE BORROWER TERMINATES EMPLOYEES OR REDUCES SALARIES BELOW A CERTAIN THRESHOLD DURING THE COVERED PERIOD AND DOES NOT QUALIFY FOR CERTAIN SAFE HARBORS. THE UNFORGIVEN PORTION OF THE PPP LOAN, IF ANY, IS PAYABLE WITHIN TWO YEARS FROM THE DATE OF THE LOAN. LOAN PAYMENTS OF PRINCIPAL AND INTEREST ARE DEFERRED UNTIL THE AMOUNT OF LOAN FORGIVENESS IS DETERMINED BY THE UNITED STATES SMALL BUSINESS ADMINISTRATION ("SBA"). IF CHC DOES NOT APPLY FOR FORGIVENESS, PAYMENTS BEGIN APPROXIMATELY 16 MONTHS AFTER THE LOAN DATE. MANAGEMENT IS RECOGNIZING THE PPP LOAN AS A CONDITIONAL GRANT UNDER ASC 958-605 REVENUE RECOGNITION-CONTRIBUTIONS AND WILL RECOGNIZE THE FUNDS WHEN THE RELATED COSTS ARE INCURRED. FOR THE YEARS ENDED JUNE 30, 2021, CHC HAS RECOGNIZED $1,528,316 IN GOVERNMENT GRANTS AND CONTRACTS ON THE ACCOMPANYING STATEMENT OF ACTIVITIES AS CONDITIONS WERE SUBSTANTIALLY MET. THE PPP LOAN WAS SUBSEQUENTLY FORGIVEN IN FULL BY THE SBA ON JULY 1, 2021. FORM 990, PART XI, LINE 9: WRITE OFF OF UNCOLLECTIBLE PLEDGES -32,750. FORM 990, PART XII, LINE 2C: THE PROCESS FOR SELECTING AN INDEPENDENT ACCOUNTANT AND ESTABLISHING A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT HAS NOT CHANGED FROM PRIOR YEARS. 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