Childrens Therapeutic Communities

Nonprofit profile at a glance

EIN
330127511
IRS 990 coverage
2011–2014
Forms available
Form 990 2014
Location
Riverside, CA, USA
Phone
9517894410
Rating
62
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Residential Mental Health Treatment

Reported finances

Revenue
$2,261,527
Expenses
$3,298,121
Assets
$495,945
Liabilities
$20,519

Source: IRS Form 990. Selected filing: tax year 2014. Amounts in USD.

Leadership & pay

10 people listed

Executive titles in this filing

  • DAVID UNDERWOOD (President)
  • WILLIAM M BOSIC (CEO)

Highest reported compensation

  • WILLIAM M BOSIC (CEO): $229,546 total reported compensation
  • DONALD J BOSIC (EXECUTIVE DIRECT): $227,126 total reported compensation
  • CAROLYN BROWN (SECT/TREASURER): $73,742 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2014. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Group homes

What it reported doing in 2014

Treatment of emotionally disturbed children

Operating model

Revenue model
Earned-program. 99% of the money available for current operations came from fees and other program revenue.
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. A relatively small share of total spending goes to programs and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 67
  • Transparency & Controls: 70
  • Accountability: 68
  • Sustainability: 13
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 85.7%; rating input score 86
  • Program expense ratio: 59%; rating input score 59
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd 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: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 60%; rating input score 60; 9th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Fail
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -45.8%; rating input score 2; 2nd percentile among comparable filings
  • Total-asset coverage ratio: 0.15; rating input score 5; 5th percentile among comparable filings
  • Liabilities to assets ratio: 0.04; rating input score 80; 80th percentile among comparable filings
  • Officer compensation ratio: 22%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: -41.3% per year; rating input score 0; 3rd percentile among comparable filings
  • Revenue growth: -30.5% per year; rating input score 0; 1st percentile among comparable filings
  • Asset growth: -35.9% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 85.7% of revenue deployed · 59% of spending went to programs
  • Governance: 3 of 5 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $1.9M in reported program spending
  • Leadership: top reported pay $230K · 10 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 24 of 25 current checks pass · 1 finding to review
  • Schedules: 4 filed schedules · includes executive pay
  • Filing history: 4 filing years from 2011 to 2014
  • Contacts: How to reach this organization
  • Money network: 7 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.

  • Review — Financial Efficiency: Program expense ratio scored 59/100.
  • High — Sustainability: Operating margin scored 2/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 5/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Transparency & Controls: Schedule A contributions reconciliation did not reconcile in the filed values.
  • High — Sustainability: Officer compensation ratio scored 7/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.
  • High — Grant Readiness: California registration: this organization is recorded as not currently operating in California.