Headwaters Inc

What it reported doing in 2024

Because the three rivers, Kentucky, Cumberland, and Big Sandy, with headwaters in Letcher County continue to have frequent water quality violations, Headwaters' work to assist in determining causes and working toward solutions continues. One aspect of this work is through the continuation of our partnership on the Mountain Drinking Water Project (MDWP). This project is a collaboration between US Academic leads, Dr. Jason Unrine and Dr. Anna Hoover with the University of Kentucky (UK) and Headwaters' Research Coordinator, Deborah Sexton. As work on the project continues, the number of citizen scientists (CS) has expanded through the recruitment of additional local citizen scientists to collect water samples from their homes which are analyzed to help determine the causes of and solutions for problems related to disinfection byproducts. Sixteen CS have completed training administered by our research coordinator in the proper procedure to collect samples from their homes on designated days which were/are placed in coolers with ice packs, promptly collected from the homes by the research coordinator, and safely packaged on additional ice for overnight shipment to the UK lab for extraction. Required supplies are ordered and replenished by the research coordinator for each sampling. All CS are near the completion of their second year of sampling. All collected data will be used in analyses and reporting. A community report out is scheduled for November 2025. While there is on-going communication between the CS and the research coordinator, there is also regular correspondence and meetings among the academic leads, the research coordinator, and those completing the analyses at the UK lab to maintain and keep the lines of communication open and the project moving forward as designed. Citizen scientists have contact information for the academic leads as well. In addition, members of other community based organizations, the health sector, water utilities companies, and governing agencies on both the local and state levels continue their work on the Stakeholder Consultation Core to provide input, facilitate dialogue, and to assist in building trust in all partners involved. The collaboration among all those involved works toward a major goal of Headwaters: to assist in the solution(s) to bring clean, safe water to all.

Financial Efficiency

• Mission deployment rate: 94.3%; rating input score 94
• Program expense ratio: 100%; rating input score 100
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• 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; 64th percentile among comparable filings
• Governance controls: 2 of 9 controls in place; rating input score 22
  • Conflict-of-interest policy: Fail
  • Whistleblower policy: Fail
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: 5.7%; rating input score 62; 62nd percentile among comparable filings
• Total-asset coverage ratio: 1.29; rating input score 28; 28th percentile among comparable filings
• Liabilities to assets ratio: 0; rating input score 69; 69th percentile among comparable filings
• Officer compensation ratio: 177.9%; rating input score 3; 3rd percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 5.7% per year; rating input score 100; 79th percentile among comparable filings
• Asset growth: 27.7% per year; rating input score 100; 94th percentile among comparable filings