Breakwater Health Network

Nonprofit profile at a glance

EIN
201686489
IRS 990 coverage
2013–2024
Forms available
Form 990 2024
Location
Duluth, MN, USA
Phone
2187221186
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate

Reported finances

Revenue
$527,131
Expenses
$676,050
Assets
$415,753
Liabilities
$144,054

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

6 people listed

Executive titles in this filing

  • KATE SURBAUGH (President)
  • RHONDA EASTLUND (VICE PRESIDENT)

Highest reported compensation

  • JOE HOLMSETH (EXECUTIVE DR): $154,270 total reported compensation
  • SALLY TRNKA (FMR ED): $139,355 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The Mission of Breakwater Health Network is to support its members by developing and sustaining systems that foster clinical excellence and healthy communities.

What it reported doing in 2024

Establish and manage integrated management information (MIS) system for its member health centers to further the Networks purpose of promoting general social welfare of the community by making services such as telemedicine and other services requiring real-time information flow and dissemination between health care providers available and accessible to the medically underserved .

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 84
  • Transparency & Controls: 65
  • Accountability: 74
  • Sustainability: 14
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 85.3%; rating input score 85
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 91.7%; rating input score 92; 12th percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -28.3%; rating input score 6; 6th percentile among comparable filings
  • Total-asset coverage ratio: 0.61; rating input score 28; 28th percentile among comparable filings
  • Liabilities to assets ratio: 0.35; rating input score 22; 22nd percentile among comparable filings
  • Officer compensation ratio: 43.4%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: -3.4% per year; rating input score 0; 10th percentile among comparable filings
  • Revenue growth: -3.3% per year; rating input score 0; 7th percentile among comparable filings
  • Asset growth: 1% per year; rating input score 100; 21st percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 85.3% of spending went to programs
  • Governance: 4 of 4 board members independent · 3 of 8 filing controls reported
  • Programs: 2 filed program accomplishments · $577K in reported program spending
  • Leadership: top reported pay $154K · 6 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 26 of 27 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes major donors and executive pay
  • Filing history: 11 filing years from 2013 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.

  • Moderate — Accountability: Governance controls: 5 of 8 not reported.
  • High — Sustainability: Operating margin scored 6/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 28/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 3/100.
  • High — Sustainability: Liabilities to assets ratio scored 22/100.
  • High — Grant Readiness: Federal audit findings: this organization reported findings in its latest federal Single Audit.