CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

Note(s)
According to the Big Brothers/Big Sisters of America (BBBSA) audit of June 30, 2015 (Note 1), BBBSA reports receiving total donated in-kind contributions valued at approximately $8.5 million in fiscal 2015, including approximately $6.8 million in "contributed advertising time to promote its mission" and approximately $1.1 million in donated lease expenses related to "a new 5 year office space lease."

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
According to the Big Brothers/Big Sisters of America (BBBSA) audit of June 30, 2015, Note 1:

"The Organization works closely with Big Brothers Big Sisters agencies ('local affiliates' or 'affiliated agencies') throughout the country to implement its programs. These agencies are separate legal entities, which are not controlled by the Organization, and are therefore not consolidated within the Organization's financial statements."

In consideration of the above, CharityWatch's rating of BBBSA includes the financial activities of the national office of BBBSA and does not include the financial activities of the BBBSA local affiliates or affiliated agencies.


Also according to Audit Note 1:

"On January 7, 2015, BBBSA relocated its national headquarters from Irving, Texas to Tampa, Florida. Operations were fully effective by March 2015."
According to the Big Brothers/Big Sisters of America (BBBSA) audit of June 30, 2015 (Note 12, Termination Costs):

"... [O]n January 7, 2015, BBBSA relocated its national headquarters from Irving, Texas to Tampa, Florida. Operations were fully in effect in Tampa by March 2015 and BBBSA ceased using the Irving office space in June 2015. Subsequent to year end a lease termination agreement was reached related to the Irving office space. The settlement agreement required BBBSA to pay $365,000 on a promissory note related to a purchase option on a portion of the building it leased... Additionally, the settlement agreement requires BBBSA to make the monthly July - December 2015 rental payments in accordance with the original lease agreement, which total $101,037 as an additional termination cost..."
According to the Big Brothers/Big Sisters of America (BBBSA) audit of June 30, 2015 (Note 2, Government Investigation and Related Operating Matters):

"On March 31, 2014, BBBSA replaced its previous CEO, who had served from June 2012 through March 30, 2014, with a new CEO. On April 24, 2014, BBBSA hired a new CFO.

"In August 2012, the Audit Division of the Department of Justice Office of the Inspector General ('DOJ OIG') audited three Office of Justice Programs ('OJP') grants awarded to BBBSA for fiscal years 2009-2011... (the 'Audited Grants'). In February 2013, OJP froze all Audited Grants funds. In an audit report issued in June 2013, the DOJ OIG questioned approximately $19.5 million in funds awarded to BBBSA under these grants. Through outside counsel, BBBSA subsequently commenced a forensic audit concerning the Audited Grants.

"On March 31, 2014, the Department of Justice ('DOJ') informed BBBSA, through outside counsel, that it had opened an investigation concerning BBBSA expenditures under the Audited Grants.

"Because BBBSA did not have knowledge of any fraud or misuse of assets as to the Audited Grants and because of the findings of the forensic audit review, BBBSA had not initiated an internal investigation concerning the Audited Grants prior to the DOJ Investigation.

"BBBSA responded to DOJ's requests for information concerning the Audited Grants and, through outside counsel, has been actively engaged in productive discussions with DOJ in an effort to resolve this matter. While that process is continuing, BBBSA anticipates that it will reach an agreement in principle in the near future and enter into a settlement agreement shortly thereafter.

"Based on the comprehensive report submitted to OJP by BBBSA management in March 2015, management has recorded an accrued grant estimate of approximately $1,297,475 as of June 30, 2015 and 2014, respectively, for potential resolution of this matter. However, management expresses no opinion regarding whether this figure will be sufficient to resolve this matter as the settlement has not been finalized.

"BBBSA has successfully administered a federal grant through the Department of Labor ('DOL'). DOL removed the Organization's high-risk grantee status in April 2015.

"In June 2015, OJP granted BBBSA a two-year extension of federal grant 2012-JU-FX-0008 totaling $6.7M. In September 2015, OJP granted BBBSA a two-year extension of federal grant 2011-MU-MU-0017 totaling $3.6M. Both of these federal grants had been previously frozen in 2013 due to the on-going 2012 OIG Audit. With these extensions, BBBSA will be administering $10.3M of OJP grants to subrecipients through September 2017."

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