2018-07-16T14:52:35-05:00 2017-08-31 410746749 CLIFTONLARSONALLEN LLP 801 CHERRY STREET SUITE 1400 FORT WORTH TX 76102 990 2016-09-01 750808797 JEWISH FEDERATION OF FORT WORTH & TARRANT COUNTY JEWI 8175690892 4049 KINGSRIDGE ROAD FORT WORTH TX 76109 ROBERT GOLDBERG EXECUTIVE DIRECTOR 8175690892 2018-07-16 1 MICHAELA J CROMAR CPA P00895728 8178775000 2018-07-16 67.137.57.251 2018-07-16 09:53:32 CD P 97A0986382CB18320F176496BBBEF9AFD491894B C05D96A4634BE0F1D4B7DB7144F63A9C5C415DB7 2016 2018-06-14 16:35:46Z ROBERT GOLDBERG 4049 KINGSRIDGE ROAD FORT WORTH TX 76109 2267906 0 X WWW.TARRANTFEDERATION.ORG X 1956 TX TO BUILD A STRONG AND UNIFIED JEWISH COMMUNITY IN ORDER TO ENSURE WELL-BEING AND CONTINUITY OF THE JEWISH PEOPLE IN TARRANT COUNTY, IN ISRAEL, AND THROUGHOUT THE WORLD. 30 30 13 0 0 0 1250605 1075081 15946 65072 1240970 371363 12059 -29748 2519580 1481768 324897 253680 0 0 535799 699108 0 0 142867 839963 729618 1700659 1682406 818921 -200638 15464274 16221927 875776 898706 14588498 15323221 X TO BUILD A STRONG AND UNIFIED JEWISH COMMUNITY IN ORDER TO ENSURE WELL-BEING AND CONTINUITY OF THE JEWISH PEOPLE IN TARRANT COUNTY, IN ISRAEL, AND THROUGHOUT THE WORLD. THE FEDERATION PURSUES ITS MISSION THROUGH FUNDRAISING, COMMUNITY-WIDE PROGRAMMING, SUPPORTING JEWISH EDUCATION, FOSTERING COMMUNICATION AND COOPERATION AMONG JEWISH ORGANIZATIONS, AND BY BUILDING STRONG RELATIONSHIPS WITH ISRAEL AND THE COMMUITY AT LARGE. 0 0 201737 48919 COMMUNITY SERVICE - PROVIDES SERVICES FOR THE ANNUAL CAMPAIGN AND THE FOLLOWING PROGRAMS OR SERVICES: MANAGEMENT AND ADMINISTRATION OF PROPERTY AND SERVICES; COMMUNITY RELATIONS; LEADERSHIP DEVELOPMENT AND ENDOWMENT. 431085 287 JEWISH FAMILY SERVICES - PROVIDES COUNSELING; FAMILY ASSISTANCE; SENIORS AND RESETTLEMENT OF SOVIET JEWS IN THE UNITED STATES. 253680 253680 0 FUNDING FOR VARIOUS NATIONAL AND LOCAL AGENCIES 88402 0 15866 PROGRAMS - OPERATES THE FOLLOWING PROGRAMS: YOM HA'SHOAH; YOM HA'ATZMOUT; YOM HA'ZIKARON; CHANUKAH; PURIM; SCHOLAR-IN-RESIDENCE AND SYLVIA WOLENS DAYTIMERS. 88402 0 15866 974904 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0 0 1 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 13 1 0 0 0 0 0 0 0 0 X 30 30 1 0 0 1 1 1 0 1 0 0 0 1 1 1 1 1 0 1 1 0 X ROBERT GOLDBERG 8175690892 4049 KINGSRIDGE ROAD FORT WORTH TX 76109 DIANE KLEINMAN PRESIDENT 1.00 X X 0 0 0 TODD BLUMENFELD VP ADMINISTRATION 1.00 X X 0 0 0 HOWARD ROSENTHAL VP COMMUNITY RELATIONS 1.00 X X 0 0 0 ROBERT SIMON CO-VP CAMPAIGN & ALLOCATIONS 1.00 X X 0 0 0 CHERYL VISOSKY CO-VP CAMPAIGN & ALLOCATIONS 1.00 X X 0 0 0 MICHAEL HERMAN TREASURER 1.00 X X 0 0 0 SANDRA HOLLANDER SECRETARY 1.00 X X 0 0 0 JEFFREY HOCHESTER FOUNDATION CHAIR 1.00 X X 0 0 0 ALDEN KAROTKIN JFS CHAIR 1.00 X X 0 0 0 BLAKE HALPERN PRESIDENTIAL APPOINTMENT 1.00 X 0 0 0 DANA ROSENSTEIN PRESIDENTIAL APPOINTMENT 1.00 X 0 0 0 JIM STANTON PRESIDENTIAL APPOINTMENT 1.00 X 0 0 0 LON WERNER IMMEDIATE PAST PRESIDENT 1.00 X 0 0 0 RICHARD ALLEN DIRECTOR 1.00 X 0 0 0 RHODA BERNSTEIN DIRECTOR 1.00 X 0 0 0 RABBI ANDREW BLOOM DIRECTOR 1.00 X 0 0 0 NANCY BLOUNT DIRECTOR 1.00 X 0 0 0 JANE COHEN DIRECTOR 1.00 X 0 0 0 REBECCA CRISTOL DIRECTOR 1.00 X 0 0 0 RABBI CHARLIE CYTRON-WALKER DIRECTOR 1.00 X 0 0 0 BARRY GOLDFARB DIRECTOR 1.00 X 0 0 0 JULIE GOLDSTEIN DIRECTOR 1.00 X 0 0 0 LINDA HOCHSTER DIRECTOR 1.00 X 0 0 0 NOREEN HOUSTON DIRECTOR 1.00 X 0 0 0 RABBI DOV MANDEL DIRECTOR 1.00 X 0 0 0 JOE MINTZ DIRECTOR 1.00 X 0 0 0 ROGER NOBER DIRECTOR 1.00 X 0 0 0 DR GENE POSNOCK DIRECTOR 1.00 X 0 0 0 LISA REIN DIRECTOR 1.00 X 0 0 0 KAREN SILVERBERG DIRECTOR 1.00 X 0 0 0 JONATHAN SUDER DIRECTOR 1.00 X 0 0 0 RABBI BRIAN ZIMMERMAN DIRECTOR 1.00 X 0 0 0 ROBERT GOLDBERG EXECUTIVE DIRECTOR 40.00 X 99895 0 8576 LAURIE REESE CONTROLLER 40.00 X 55033 0 13263 DR CAROLE ROGERS JFS DIRECTOR 40.00 X 113945 0 10920 268873 0 32759 1 0 0 0 0 25752 32935 1016394 1075081 COMMUNITY SERVICES 900099 48919 48919 COUNSELING FEES 812900 15866 15866 PROGRAM EVENTS 713990 287 287 65072 309490 309490 2400 0 2400 2400 2400 794715 732842 61873 61873 61873 21148 32935 53296 -32148 -32148 1481768 65072 0 341615 228430 228430 25250 25250 184457 58307 96996 29154 424466 352286 12466 59714 45164 37659 7505 45021 31158 7216 6647 950 950 18800 10900 3555 4345 84998 84998 15742 7910 6319 1513 37812 27144 5908 4760 6706 5029 1006 671 34606 25266 5329 4011 20478 13325 3478 3675 24144 16413 3961 3770 15587 10998 2344 2245 EMBEZZLEMENT LOSS 313313 313313 PROGRAM EVENTS 49912 49912 OTHER 41609 30973 6289 4347 UTILITIES 18675 12473 3108 3094 46286 30521 8349 7416 1682406 974904 564635 142867 588751 159615 469924 2387940 2301320 4660 3342 9642 7636 676826 184423 477375 492403 11978850 12111531 667743 17056 8413 15464274 16221927 27823 32632 317063 338055 0 346523 340199 184367 187820 875776 898706 X 1978481 2154786 12176322 12734620 433695 433815 14588498 15323221 15464274 16221927 -200638 935361 0 X 0 0 0 X 1161968 1512408 1291749 1250605 1075081 6291811 1161968 1512408 1291749 1250605 1075081 6291811 1606770 4685041 79518 77025 199662 264148 311890 932243 24850 30299 29586 28303 113038 7337092 129184 0.63850 0.62040 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 664989 13802931 1185818 503599 15150139 649897 10403 26564 21875 664989 578266 118377 -5862 40884 649897 500347 26766 68109 16956 578266 368610 133161 41068 42492 500347 0.11550 0.02910 0.85540 0 1 1 94645 94645 462208 137026 325182 119973 47397 72576 492403 FUNDS HELD FOR OTHERS 187820 187820 YOM HAATZMAUT 33973 17973 16000 29970 GALS, GLITTER, GAMES, AND GAB 12426 10122 2304 8009 1 7684 4840 2844 15317 54083 32935 21148 53296 53296 -32148 1 BETH EL CONGREGATION 4900 BRIARHAVEN ROAD FORT WORTH TX 76109 501(C)(3) 10075 OPERATIONAL SUPPORT CONGREGATION BETH SHALOM 1212 THANNISH DR ARLINGTON TX 76011 501(C)(3) 8300 CAMP OPERATIONS UNIVERSITY OF NORTH TEXAS PO BOX 305369 DENTON TX 76203 756002149 TEXAS UNIVERSITY 8000 OPERATIONAL SUPPORT JEWISH EDUCATION AGENCY 4050 S HULEN ST FORT WORTH TX 76109 752833705 501(C)(3) 19500 OPERATIONAL SUPPORT JEWISH FEDERATION OF NORTH AMERICA INC 25 BROADWAY STE 1700 NEW YORK NY 10004 131624240 501(C)(3) 111904 OPERATIONAL SUPPORT JEWISH CHILDREN'S REGIONAL SERVICE PO BOX 7368 METARIE LA 70010 720408936 501(C)(3) 7000 OPERATIONAL SUPPORT 5 6 FINANCIAL ASSISTANCE TO NEEDY FAMILIES 150 25250 PART I, LINE 2: THE BOARD REVIEWS MONTHLY DETAILED REPORTS COVERING THE JEWISH FAMILY SERVICES PROGRAM AND THE ASSISTANCE PROVIDED. GRANTS PROVIDED TO OTHER ORGANIZATIONS ARE ONLY MADE TO 501(C)(3) AND GOVERNMENTAL ISNTITUTIONS. THE BOARD DOES NOT FEEL FURTHER MONITORING IS NECESSARY. LAURIE REESE FORMER CONTROLLER EMBEZZLEMENT - SEE PART V 0 293242 0 FEDERATION LENDERS LLC LENDER 30267 FEDERATION LENDERS IS AN LLC THAT WAS FORMED IN ORDER TO PROVIDE FINANCING FOR THE PURCHASE OF LAND AND CONSTRUCTION OF THE FEDERATION'S HEADQUARTERS IN FORT WORTH. DIANE KLEINMAN AND ROBERT GOLDBERG ARE THE MANAGERS OF FEDERATION LENDERS. NEITHER IS A MEMBER OF THE LLC. THE LOAN WAS MADE IN 2005 FOR $410,000 AND THE BALANCE DUE TO FEDERATION LENDERS WAS $340,199 AT 8/31/2017. DURING FISCAL YEAR 2016-2017, THE PRINCIPAL PAY-DOWN ON THE NOTE WAS $9,788 AND THE INTEREST EXPENSE PAID WAS $20,479. 0 SCHEDULE L, PART I, LINE 1(C) EXPLANATION: AS IS COMMON FOR AN ORGANIZATION WITH A SMALL BUSINESS INFRASTRUCTURE, LAURIE REESE'S ROLE AS CONTROLLER INCLUDED A BROAD SET OF RESPONSIBILITIES WHICH ALLOWED HER FULL ACCESS TO THE ACCOUNTING SYSTEMS AND SOFTWARE. REESE EMBEZZLED FUNDS FROM THE ORGANIZATION BY WRITING UNAUTHORIZED CHECKS TO HERSELF. REESE PREPARED MANUAL CHECKS OUTSIDE OF THE ACCOUNTING SYSTEM UTILIZING AN EXCEL SPREADSHEET TO DIGITALLY PRINT CHECKS PAYABLE TO HERSELF. IN ADDITION, SHE RECORDED FICTITIOUS CHECKS IN CYMA (ACCOUNTING SOFTWARE) IN ORDER TO DECEIVE OTHERS WHO MIGHT REVIEW THE BOOK AND BANK BALANCE RECONCILIATIONS OR TO DISGUISE FOR CHECKS THAT CLEARED IN A DIFFERENT AMOUNT THAN WAS RECORDED IN CYMA. THUS FAR IN THE INVESTIGATION, 412 CHECKS HAVE BEEN IDENTIFIED AS UNAUTHORIZED PAYMENTS TO LAURIE REESE OR HER SPOUSE. THESE EMBEZZLEMENT ACTIVITIES HAVE CONSISTENTLY OCCURRED EVEN AS ANNUAL FINANCIAL STATEMENT AUDITS HAVE TAKEN PLACE. THE INDEPENDENT CPA FIRMS PERFORMING THOSE AUDITS HAVE INCLUDED A NATIONAL CPA FIRM FOR THE LAST FEW YEARS. FORM 990, PART VI, SECTION A, LINE 2 JEFFREY HOCHSTER AND LINDA HOCHSTER HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 5 DURING THE FINANCIAL STATEMENT AUDIT, THE ORGANIZATION DISCOVERED A SIGNIFICANT DIVERSION OF THE ORGANIZATION'S ASSETS IN THE FORM OF AN EMBEZZLEMENT BY THE ACCOUNTING CONTROLLER. ONCE DISCOVERED, THE ORGANIZATION HIRED A SEPARATE INDEPENDENT ACCOUNTING FIRM TO CONDUCT A FORENSIC INVESTIGATION REGARDING THE EMBEZZLEMENT AND TO RECOMMEND CORRECTIVE INTERNAL CONTROLS. WHILE THE FORENSIC INVESTIGATION IS STILL IN PROCESS, EMBEZZLED FUNDS WITHIN THE DATE RANGE OF SEPTEMBER 1, 2011 THROUGH MARCH 26, 2018 ARE CURRENTLY ESTIMATED TO BE $1,172,957. THE FORENSIC FIRM BELIEVES THAT THE EMBEZZLEMENT ACTIVITY WAS OCCURRING FOR PERIODS BEFORE SUCH DATE RANGE AND THAT THE AMOUNT EMBEZZLED EXCEEDS THE AFOREMENTIONED $1,172,957, HOWEVER, THE ORGANIZATION DOES NOT CURRENTLY HAVE ENOUGH INFORMATION TO DETERMINE THE AMOUNT OF EMBEZZLED FUNDS PRIOR TO SEPTEMBER 1, 2011. THE FUNDS WERE EMBEZZLED IN THE FORM OF FORGED CHECKS, WHICH WERE RECORDED IN THE GENERAL LEDGER AS PROGRAM SERVICE EXPENSES. IT IS NOTEWORTHY THAT A LARGE AMOUNT OF THE EMBEZZLEMENT WAS BEING RECORDED AS PAYMENTS TO ANOTHER CHARITY TO DISGUISE THE FORGED CHECKS PAID TO THE CONTROLLER. THE CONTROLLER EMBEZZLED THE FUNDS UNBEKNOWNST TO THE ORGANIZATION'S MANAGEMENT. ASIDE FROM FRAUDULENT CHECKS ISSUED TO CONTROLLER'S SPOUSE AND ENDORSED BY THE CONTROLLER, THE CONTROLLER ACTED ALONE IN THE EMBEZZLEMENT ACTIVITIES. CORRECTIVE ACTIONS TAKEN TO ADDRESS THE MATTER INCLUDE (1) IMMEDIATE TERMINATION OF CONTROLLER UPON DISCOVERY OF EMBEZZLEMENT, (2) LEGAL ACTION AGAINST CONTROLLER, (3) A FORENSIC ACCOUNTING INVESTIGATION TO IDENTIFY FRAUDULENT ACTIVITY AND TO RECOMMEND CORRECTIVE INTERNAL CONTROL SYSTEMS TO PREVENT FUTURE FRAUDULENT ACTIVITY, (4) REVISED SYSTEM OF CHECKS AND BALANCES THROUGH ADDITIONAL INTERNAL CONTROL IMPLEMENTATION INCLUDING, A "POSITIVE PAY" DISBURSEMENT SYSTEM, INCREASED INVOLVEMENT BY TREASURER REGARDING ACCOUNTING AND REPORTING FOR THE ORGANIZATION AND EXECUTIVE DIRECTOR IN DIRECT OVERSEE OF FINANCIAL ACCOUNTING AND RELATED APPROVAL PROCESSES, (5) REPORTING THE ACTIVITY AND PAYMENTS AS EXCESS BENEFIT TRANSACTIONS WITH THE REQUIRED DISCLOSURES ON FORM 990 PART IV, LINE 25A & 25B, FORM 990 SCHEDULE L, PART I, AND FORM 4720, SCHEDULE I AND (6) CONSULTATION WITH OUTSIDE COUNSEL TO CONSIDER A POTENTIAL RECOVERY OF SOME OR ALL OF THE EMBEZZLED AMOUNTS FROM THE ACCOUNTING FIRM THAT PERFORMED THE PREVIOUS FINANCIAL STATEMENT AUDITS. IN ADDITION, THE MATTER WAS REFERRED TO THE FORT WORTH POLICE DEPARTMENT AND SUBSEQUENTLY TURNED OVER TO THE FEDERAL BUREAU OF INVESTIGATION. FORM 990, PART VI, SECTION A, LINE 6 ANY MEMBER OF THE JEWISH COMMUNITY WHO IS A RESIDENT OF AND LIVES IN TARRANT COUNTY, IS AT LEAST 18, AND WHO PAYS A PLEDGE MAY BECOME A MEMBER OF THE CORPORATION FORM 990, PART VI, SECTION A, LINE 7A THE NOMINATING COMMITTEE NOMINATES DIRECTORS FOR THE MEMBERSHIP TO VOTE ON AT THE ANNUAL MEETING. MEMBERS ALSO ELECT THE OFFICERS AT THE ANNUAL MEETING FROM THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 8B NONE OF THE COMMITTEES HAVE THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ALL MEMBERS OF THE BOARD OF DIRECTORS, OFFICERS, COMMITTEE MEMBERS, AND EMPLOYEES IN A POSITION OF INFLUENCE ANNUALLY REVIEW THE CONFLICT OF INTEREST POLICY AND REAFFIRM THEIR UNDERSTANDING AND COMPLIANCE WITH THE POLICY. OFFICERS, DIRECTORS, AND COMMITTEE MEMBERS ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST AS SOON AS POSSIBLE SHOULD ONE ARISE TO THE PRESIDENT OF THE BOARD, WHILE STAFF REPORT TO THEIR IMMEDIATE SUPERVISOR. THE AFFECTED PERSON MUST THEN ABSTAIN FROM VOTING OR ACTING ON THAT PARTICULAR ITEM, AND MUST ABSTAIN FROM PARTICIPATING IN OR ATTEMPTING TO INFLUENCE THE DECISION-MAKING PROCESS IN ANY WAY. THEY MAY PROVIDE RELEVANT FINANCIAL INFORMATION UPON REQUEST. ALL DISCLOSURES REPORTED IN THE ANNUAL MEETING AND ANY OTHER MEETING HELD BY THE BOARD OF DIRECTORS WILL BE REFLECTED IN THE MINUTES OF THE MEETING. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE SERVES AS THE PERSONNEL COMMITTEE AND CONDUCTS AN ANNUAL REVIEW OF THE EXECUTIVE DIRECTOR'S SALARY USING SALARY DATA FROM OTHER COMPARABLE ORGANIZATIONS. RECOMMENDATIONS REGARDING SALARY INCREASES FOR OTHER EMPLOYEES ARE MADE BY THE EXECUTIVE DIRECTOR AND THE PERSONNEL COMMITTEE TO THE FINANCE COMMITTEE BASED ON PERFORMANCE APPRAISALS, COST OF LIVING ADJUSTMENTS, AND DATA ON COMPARABLE POISITIONS AT COMPARABLE INSTITUTIONS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION PROVIDES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL INFORMATION TO THE PUBLIC AT ITS OFFICE AND UPON WRITTEN REQUEST. LOUIS H & MADLYN BBARNETT SUPPORTING FOUNDATION 4049 KINGSRIDGE ROAD FORT WORTH TX 76109 752152949 SUPPORTING MISSION OF THE JEWISH FEDERATION OF FW TX 501(C)(3) LINE 12C, III-FI 0 AL & ROSE SANKARY SUPPORTING FOUNDATION 4049 KINGSRIDGE ROAD FORT WORTH TX 76109 752156841 SUPPORTING MISSION OF THE JEWISH FEDERATION OF FW TX 501(C)(3) LINE 12C, III-FI 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0