Childrens Alcohol Rehabilitation and Education Inc

Nonprofit profile at a glance

EIN
770376234
IRS 990 coverage
2013–2017
Forms available
Form 990 2017
Location
Palmdale, CA, USA
Phone
8054021606
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Residential Care & Adult Day Programs

Official website

Reported finances

Revenue
$583,249
Expenses
$669,137
Assets
$371,977
Liabilities
$58,055

Source: IRS Form 990. Selected filing: tax year 2017. Amounts in USD.

Leadership & pay

8 people listed

Executive titles in this filing

  • DR BARRY BOATMAN (CEO/Chair-4/17)
  • MARK MCNETT (CFO, chair/ceo)

Highest reported compensation

  • MARK MCNETT (CFO, chair/ceo): $88,445 total reported compensation
  • DR BARRY BOATMAN (CEO/Chair-4/17): $43,567 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2017. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Care and treatment of emotionally and physically neglected teenage children with a focus on drug and alcohol rehabilitation and education, 7 days a week, in a residential group home environment.

What it reported doing in 2017

C.a.r.e. Maintains three residential group homes for teenage children (13-17 year old wards and dependents of the court, mental health referrals and other appropriate referrals) as described in its mission statement. C.a.r.e. Specializes in dual diagnosis treatment and rehabilitation for drug and alcohol abusing/dependent foster children. During 2017, the organization housed an average of 8 children per month which translated to 2,213 days of occupancy.

Operating model

Revenue model
Grant-funded. 98% of the money available for current operations came from government grants.
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. The required major-donor schedule is missing or incomplete and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 82
  • Transparency & Controls: 75
  • Accountability: 65
  • Sustainability: 20
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 96.6%; rating input score 97
  • Program expense ratio: 84.2%; rating input score 84
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: No; rating input score 0
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 12th percentile among comparable filings
  • Governance controls: 5 of 8 controls in place; rating input score 62
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -14.7%; rating input score 10; 10th percentile among comparable filings
  • Total-asset coverage ratio: 0.56; rating input score 29; 29th percentile among comparable filings
  • Liabilities to assets ratio: 0.16; rating input score 41; 41st percentile among comparable filings
  • Officer compensation ratio: 19.7%; rating input score 13; 13th percentile among comparable filings

Growth

  • Program expense growth: 0.7% per year; rating input score 100; 32nd percentile among comparable filings
  • Revenue growth: -8.4% per year; rating input score 0; 7th percentile among comparable filings
  • Asset growth: -31.9% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 96.6% of revenue deployed · 84.2% of spending went to programs
  • Governance: 4 of 6 board members independent · 5 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $563K in reported program spending
  • Leadership: top reported pay $88K · 8 people listed
  • Consistency: 29 of 29 current checks pass
  • Schedules: 3 filed schedules · includes major donors
  • Filing history: 5 filing years from 2013 to 2017
  • 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.

  • High — Transparency & Controls: Major donor itemization scored 0/100.
  • Review — Accountability: Governance controls: 3 of 8 not reported.
  • High — Sustainability: Operating margin scored 10/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 29/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 13/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 41/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.
  • High — Grant Readiness: California registration: this organization is not authorized to operate as a charity in California.