2017-12-21T07:38:07-06:00 2016-06-30 222428965 CITRIN COOPERMAN & COMPANY LLP TEN WEYBOSSET STREET - SUITE 700 PROVIDENCE RI 02903 990 2015-07-01 050467353 THE PROVIDENCE PLAN PROV 4014558880 10 DAVOL SQUARE NO 300 PROVIDENCE RI 02903 RICHARD SPIES PRESIDENT, BOARD OF DIRECTORS 4014558880 2017-11-21 1 MARTHA HULTZMAN P00107728 4014214800 2017-11-07 2015 2018-03-14 21:41:22Z RICHARD SPIES 10 DAVOL SQUARE PROVIDENCE RI 02903 9700621 0 X WWW.PROVPLAN.ORG X 1992 RI TO PROMOTE THE ECONOMIC AND SOCIAL WELL-BEING OF PROVIDENCE, ITS PEOPLE AND ITS NEIGHBORHOODS. 13 10 201 0 0 0 6706360 9338678 1850315 339037 4558 943 73517 21963 8634750 9700621 0 0 0 0 6295506 6348268 0 0 74373 2612375 3946863 8907881 10295131 -273131 -594510 6348631 4316209 5225359 3787447 1123272 528762 X THE PROVIDENCE PLAN'S MISSION IS TO IMPROVE THE ECONOMIC AND SOCIAL WELL-BEING OF PROVIDENCE, ITS RESIDENTS, AND ITS NEIGHBORHOODS. THE PROVIDENCE PLAN ALSO PROVIDES DATA ANALYSIS FOR GOVERNMENT AGENCIES AND COMMUNITY GROUPS ON A VARIETY OF ISSUES, SUCH AS ECONOMIC DEVELOPMENT, PUBLIC SAFETY, HEALTH, JOBS, AND EDUCATION. THE PROVIDENCE PLAN ALSO OPERATES PROGRAMS FOCUSED ON CHILDREN'S WELL-BEING, WORKFORCE DEVELOPMENT, AND THE CAPACITY OF OUR STATE'S NONPROFIT SECTOR. 0 0 3427200 29536 READY TO LEARN - A BROAD BASED COMMUNITY COALITION WITH THE VISION THAT ALL CHILDREN IN PROVIDENCE WILL ENTER SCHOOL HEALTH AND READY TO LEARN. 1573271 PROVIDENCE TALKS - UNLOCKING THE INCREDIBLE TEACHING POWER OF PARENTS AND CARETAKERS BY EMPOWERING THEM WITH THE TOOLS AND COACHING NECESSARY TO ENSURE ALL CHILDREN ENTER SCHOOL READY TO SUCCEED BY COMBINING NEW TECHNOLOGY WITH HIGH-QUALITY EARLY INTERVENTIONS, PROVIDENCE TALKS SUPPORTS FAMILIES IN UNDERSTANDING AND IMPROVING THEIR CHILDREN'S NATURAL AUDITORY ENVIRONMENT 1236213 79202 INFORMATION GROUP - WORKING ON DATA PROJECTS THAT WILL BE USED TO INFORM POLICY AND/OR COMMUNITY ACTION IN WAYS THAT PROMOTE THE WELL-BEING OF PROVIDENCE AND RHODE ISLAND RESIDENTS. 1201547 210472 BUILDING FUTURES - HELPS THE RHODE ISLAND COMMERCIAL CONSTRUCTION INDUSTRY MEET ITS CURRENT AND FUTURE NEEDS FOR A WELL-TRAINED WORKFORCE, AND CREATES CAREER OPPORTUNITIES FOR LOW-INCOME RESIDENTS IN URBAN AREAS THROUGH ESTABLISHED APPRENTICESHIP PROGRAMS. 1097713 19827 YOUTHBUILD - PROVIDES YOUNG PEOPLE WITH OPPORTUNITIES FOR POSITIVE LIFE CHOICES AND EXPERIENCES, HELPING THEM TO BECOME MENTALLY AND MORALLY EMPOWERED TO ACCEPT RESPONSIBILITY FOR THEMSELVES, THEIR FAMILIES AND THEIR COMMUNITIES. YOUTHBUILD IS SUPPORTED BY AMERICORPS NATIONAL. 366340 HEALTH INITIATIVE 2665600 230299 8902284 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 67 0 201 1 0 0 0 0 0 0 0 0 0 0 X 13 10 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X RICHARD SPIES 4014558880 10 DAVOL SQUARE SUITE 300 PROVIDENCE RI 02903 RICHARD R SPIES CHAIR 2.00 X X 0 0 0 MACKY MCCLEARY VICE CHAIR 1.00 X X 0 0 0 JOHN SIMMONS DIRECTOR 1.00 X X 0 0 0 CHANNAVY CHHAY DIRECTOR 1.00 X 0 0 0 SHEILA DORMODY DIRECTOR 1.00 X 0 0 0 DON FARISH TREASURER 1.00 X X 0 0 0 MALCOM FARMER III DIRECTOR 1.00 X 0 0 0 CHARLES FOGARTY DIRECTOR 1.00 X 0 0 0 JEFF GRYBOWSKI DIRECTOR 1.00 X 0 0 0 STEPHEN R HOURAHAN DIRECTOR 1.00 X 0 0 0 NICHOLAS LONGO DIRECTOR 1.00 X 0 0 0 SUSAN LUSI DIRECTOR 1.00 X 0 0 0 ADEOLA OREDOLA DIRECTOR 1.00 X 0 0 0 MARION E ORR SECRETARY 1.00 X X 0 0 0 SANDRA M POWELL DIRECTOR 1.00 X 0 0 0 PATRICK MCGUIGAN EXECUTIVE DIRECTOR 35.00 X 161196 0 26460 CHARLES DENNO DIRECTOR OF FINANCE 35.00 X 96472 0 10018 ANDREW BRAMSON DEPUTY DIRECTOR 35.00 X 117822 0 28331 ANDREW CORTES HIGHLY COMPENSATED EMPLOYEE 35.00 X 101658 0 12022 LESLIE GELL HIGHLY COMPENSATED EMPLOYEE 35.00 X 107763 0 39436 ANTHONY HUBBARD HIGHLY COMPENSATED EMPLOYEE 35.00 X 100009 0 6729 684920 0 122996 5 0 1 0 0 8461846 876832 9338678 PROGRAM SERVICE FEES 624100 339037 339037 339037 943 943 OTHER INCOME 900099 21963 21963 21963 9700621 339037 0 22906 X 375490 375490 4803211 4637592 110528 55091 696594 540722 142099 13773 472973 429897 37567 5509 8912 8912 47180 47180 1886640 1845903 40737 798428 757167 41261 341581 291297 50284 78268 71289 6979 34946 20636 14310 14224 14224 76468 52245 24223 LOSS DUE TO EMBEZZLEMEN 327407 327407 EQUIPMENT & RENTAL 93080 80926 12154 MISCELLANEOUS 64290 55578 8712 REPAIRS & MAINTENANCE 51206 27836 23370 124233 82284 41949 10295131 8902284 1318474 74373 333464 46257 4603219 2959691 1346324 1214643 0 40928 781859 745625 50458 36234 15166 18456 6348631 4316209 669409 1175859 4524834 2594022 31116 17566 5225359 3787447 X 820170 232049 303102 296713 1123272 528762 6348631 4316209 -594510 0 X X 0 1 X 1 1 1 X 6013385 4770429 6246585 6706360 9388678 33125437 6013385 4770429 6246585 6706360 9388678 33125437 33125437 1223 1092 2845 4558 943 10661 16284 14379 5412 73517 32898 142490 33278588 0.99540 0.99610 X PART I, LINE 7 REASON FOR PUBLIC CHARITY STATUS UPON FURTHER ANALYSIS OF THE ORGANIZATION'S GOVERMENTAL SUPPORT, IT WAS DETERMINED THAT THE ORGANIZATION'S REASON FOR PUBLIC SUPPORT STATUS IS BETTER CLASSIFIED AS AN ORGANIZATION THAT NORMALLY RECEIVES A SUBSTANTIAL PART OF ITS SUPPORT FROM A GOVERNMENTAL UNIT OR FROM THE PUBLIC DESCRIBED IN SECTION 170(B)(1)(A)(VI) THE SUPPORT SCHEDULE IN PART II HAS BEEN COMPLETED ON THIS BASIS RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 542037 595394 1137431 1706147 229 229 135509 148849 284358 426537 32508 32508 0 749351 713117 36234 36234 9700621 0 9700621 0 9700621 10295131 0 10295131 0 10295131 PART X, LINE 2 THE AGENCY IS EXEMPT FROM INCOME TAXES AS A PUBLIC CHARITY UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. MANAGEMENT BELIEVES THAT THE AGENCY OPERATES IN A MANNER CONSISTENT WITH ITS TAX-EXEMPT STATUS AT BOTH THE STATE AND FEDERAL LEVELS. THE AGENCY ANNUALLY FILES IRS FORM 990 - RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, REPORTING VARIOUS INFORMATION THAT THE IRS USES TO MONITOR THE ACTITIVITES OF TAX-EXEMPT ENTITIES. THESE TAX RETURNS ARE SUBJECT TO REVIEW BY THE TAXING AUTHORITIES GENERALLY FOR A PERIOD OF THREE YEARS AFTER THEY WERE FILED. THE TAX RETURNS FOR THE YEARS ENDED JUNE 30, 2012, 2013, AND 2014 ARE SUBJECT TO EXAMINATION BY THE IRS THE AGENCY CURRENTLY HAS NO TAX EXAMINATIONS IN PROGRESS. X X X X 0 1 0 0 0 0 0 0 0 PATRICK MCGUIGAN EXECUTIVE DIRECTOR 161196 0 0 0 0 0 13500 0 12960 0 187656 0 0 0 PART I, LINE 3 COMPENSATION FOR THE EXECUTIVE DIRECTOR IS APPROVED BY THE BOARD OF DIRECTORS AS PART OF THE BUDGET PROCESS BASED ON THE RECOMMENDATION OF THE COMPENSATION COMMITTEE. PARR I, LINE 4B PARTICIPANT IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN PATRICK MCGUIGAN $25,000 FORM 990, PART VI, SECTION A, LINE 7A EXPLANATION ON SCHEDULE O FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY THE EXTERNAL AUDITORS AND REVIEWED BY MANAGMENT ONCE ALL ARE SATISFIED WITH THE FORM, IT IS FINALIZED AND A COPY IS SENT TO ALL BOARD MEMBERS AT THE SUBSEQUENT BOARD MEETING, THE BOARD IS ASKED IF THEY HAVE ANY QUESTIONS OR COMMENTS AND A GENERAL REVIEW OF THE FORM IS CONDUCTED BY MANAGEMENT. REVISIONS, CORRECTIONS, ETC ARE MADE AS NECESSARY. SUBSEQUENT TO THIS MEETING, THE FORM IS SUBMITTED TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR THE ORGANIZATIONS CONFLICT OF INTEREST POLICY IS PROVIDED TO ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES. THESE PEOPLE ARE ASKED TO REVIEW THE POLICY AND SIGN A STATEMENT INDICATING THAT THEY UNDERSTAND THE POLICY AND HAVE REPORTED ALL POTENTIAL CONFLICTS DURING THE PAST YEAR IN ACCORDANCE WITH THE POLICY AND WILL REPORT ALL POTENTIAL CONFLICTS THE COMING YEAR. ALL POTENTIAL CONFLICTS ARE EVALUATED BY THE BOARD TO DETERMINE IF A CONFLICT ACTUALLY EXISTS. IN THOSE INSTANCES WHERE THE POTENTIAL TRANSACTION IS A CONFLICT, THE BOARD EXAMINES THE TRANSACTION AND A VOTE IS TAKEN (WITH THOSE INVOLVED RECUSING THEMSELVES) AS TO WHETHER THE ORGANIZATION WILL ENTER INTO THE TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY THE BOARD CONDUCTS A PERFORMANCE REVIEW AND EVALUATION OF THE CEO. THE REVIEW ALSO ESTABLISHES THE INDIVIDUAL'S COMPENSATION FOR THE FOLLOWING YEAR. THIS PROCESS INVOLVES THE EVALUATION OF THE INDIVIDUAL AND A REVIEW OF COMPENSATION OF COMPARABLE POSITIONS OBTAINED FROM THE FORM 990 OF SIMILAR ORGANIZATIONS. THE BOARDS DELIBERATION AND DECISION IS NOTED IN THE MINUTES OF THE MEETING. THE CEO ESTABLISHES THE COMPENSATION OF THE SENIOR MANAGEMENT TEAM AND REVIEWS THE PERFORMANCE EVALUATIONS AND RECOMMENDED COMPENSATION WITH THE BOARD. THE EVALUATIONS AND COMPENSATION ARE DISCUSSED BY THE BOARD ALTHOUGH NO VOTE OF APPROVAL OF THE CEO'S DECISION IS REQUIRED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES IT GOVERNING DOCUMENTS (ARTICLES OF INCORPORATION AND BY-LAWS), ITS CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. THE ORGANIZATION WILL MAIL COPIES UPON REQUEST OR PROVIDE COPIES TO THOSE WHO COME TO THE ADMINISTRATION OFFICES DURING NORMAL BUSINESS HOURS. THE ORGANIZATION CHARGES FOR THE COPIES IN ACCORDANCE WITH IRS REGULATIONS. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 1,845,903. MANAGEMENT AND GENERAL EXPENSES 40,737. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,886,640. FORM 990, PART XII, LINE 2C THERE HAVE BEEN NO CHANGES FROM THE PRIOR YEAR IN THE METHODS USED BY THE COMMITTEE RESPONSIBLE FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. FORM 990 PART IX LINE 24A ON JULY 26, 2016, THE PROVIDENCE PLAN LEARNED THAT IT HAD SUFFERED A FRAUDULENT CONVERSION OF FUNDS BY THE INDIVIDUAL WHO SERVED AS THE PROVIDENCE PLAN'S DIRECTOR OF FINANCE AND ADMINISTRATION FROM 2009 TO JULY 26, 2016. THE TOTAL AMOUNT OF FUNDS FRAUDULENTLY CONVERTED FROM THE PROVIDENCE PLAN TO THE FORMER DIRECTOR OF FINANCE AND ADMINISTRATION'S PERSONAL USE BETWEEN SEPTEMBER 22, 2009, AND JULY 15, 2016, WAS $741,100, RESULTING IN A SIGNIFICANT DIVERSION OF THE PROVIDENCE PLAN'S ASSETS. AS A RESULT OF LEARNING THIS INFORMATION, SEVERAL CORRECTIVE ACTION STEPS WERE TAKEN BY PROVIDENCE PLAN MANAGEMENT AND THE BOARD. THE FORMER DIRECTOR OF FINANCE AND ADMINISTRATION WAS LET GO IMMEDIATELY, A FORENSIC AUDIT WAS COMMISSIONED IMMEDIATELY, AND A REVIEW OF ALL INTERNAL CONTROLS WAS COMMENCED WITH CORRECTIVE ACTIONS TAKEN AS ISSUES WERE IDENTIFIED. WHILE THE PROVIDENCE PLAN DID NOT LEARN OF THE EMBEZZLEMENT DURING ITS FISCAL YEAR 2016, THE ORGANIZATION DID LEARN OF IT SUBSEQUENT TO JUNE 30, 2016, AND HAS BOTH QUANTIFIED AND REPORTED THE LOSS INCURRED DURING FISCAL YEAR 2016 AS A RESULT OF A FORENSIC AUDIT. THE LOSS ON EMBEZZLEMENT FOR FISCAL YEAR ENDING JUNE 30, 2016, IS 327,407, AS INDICATED ON PART IX, ITEM 24A OF THE 990. IN ADDITION, ACCRUED EXPENSES INCLUDE THE AMOUNT DUE BACK TO DONORS AND GRANTORS OF $194,343. FORM 990 PART VI, SECTION A, LINE 5 AS IDENTIFIED ABOVE, THE PROVIDENCE PLAN DID NOT BECOME AWARE OF THE DIVERSION OF ASSETS DURING THE TAX YEAR ENDING JUNE 30, 2016 AND, ACCORDINGLY, RESPONDED "NO" TO PART VI, SECTION A, LINE 5.