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Financial Documents
Entity | Document Type | Tax ID |
---|---|---|
Global Green USA | IRS Form 990 | 77-0387124 |
Global Green USA & Subsidiaries | Audited Consolidated Financial Statements | Multiple |
Entity: Global Green USA Document Type: IRS Form 990 Tax ID: 77-0387124 |
Entity: Global Green USA & Subsidiaries Document Type: Audited Consolidated Financial Statements Tax ID: Multiple |
Governance & Transparency
CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
Top Salaries
Name | Title | Compensation | |
---|---|---|---|
1 | Lester McCabe | Treasurer | $137,985 |
2 | Walker Wells | VP | $106,246 |
1 Name: Lester McCabe Title: Treasurer Compensation: $137,985 |
2 Name: Walker Wells Title: VP Compensation: $106,246 |
Analysts' Notes
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.
According to the Independent Auditors' Report issued in connection with the Global Green USA consolidated audit of December 31, 2017, re: "Substantial Doubt about the Organization's Ability to Continue as a Going Concern": "The accompanying [audited] financial statements have been prepared assuming that the Organization will continue as a going concern. As discussed in Note 12 to the financial statements [cited below], the organization has obtained debt, primarily to fund operations. The continued negative changes in net assets have created a significant accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 12. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to that matter." According to the Global Green USA consolidated audit of December 31, 2017 (Note 12, Going Concern): "...[T]he Organization incurred a change in net assets of $(704,634) for the year ended December 31, 2017 and has incurred similar losses in the previous several years. These losses have created an unrestricted net asset balance of $(687,908) at December 31, 2017. The Organization has borrowed from a board member to secure the funds necessary to continue operations. These factors have created an uncertainty regarding the organization's ability to continue as a going concern. "Management is monitoring the expenses to identify areas in which costs and expenses can be reduced to improve the results of operations. Staff levels are decreased and unfilled positions will remain unfilled. Subsequent to year end, the Santa Monica office lease was terminated and a less expensive space was leased. Management expects overall expenses to decrease in future years as a result of the elimination of various operating expenses. "The organization's ability to continue as a going concern is dependent on Management's ability to successfully monitor expenses and increase revenues..." |
In accordance with Government Auditing Standards (GAS), Global Green USA's auditors issued a report dated June 14, 2018, in which they noted that during fiscal year 2017: "Funds received [by Global Green USA] from grantors that are temporarily restricted for certain purposes were borrowed to cover operating expenses due to cash flow issues. [...] Borrowing from restricted funds could be a breach of grant agreements and result in cancellations of grants. Also, the risk arises that the organization is unable to repay the borrowed restricted funds, causing the entity to be unable to complete the project intended by the grant or forced return of the grant to the grantor." The auditors recommended that Global Green USA should place restricted funds in separate bank accounts and only release funds when restriction criteria is met. Global Green USA's management agreed with the auditor's comments and updated its bylaws to reflect these recommendations, as well as requiring authorization from at least two officers in order to release restricted funds into its primary bank account. |
According to the Global Green USA consolidated audit of December 31, 2017 (Note 5, Related Party Loan Payable): "The Organization entered into an agreement for a loan that is payable to a board member. The loan is to total $200,000 and is payable to the organization in two installments of $100,000 each on December 5, 2017 and January 5, 2018. The rate of interest is 6% per annum and repayable in no event later than three years from the date of the loan. Repayment terms state that Global Green will allocate 50% of any donations, grants, or sponsorships received by joint fundraising efforts between Global Green and EARTHx. The loan is secured by future donations, grants and sponsorships received by Global Green. "The board member also agreed to provide the organization a line of credit with a total limit of $600,000, with draws limited to $100,000 per month beginning January 15, 2018. The rate of interest is 6% per annum and repayable in no event later than three years from the date of the line of credit establishment. Repayment terms state that Global Green will allocate 50% of any donations, grants, or sponsorships received by joint fundraising efforts between Global Green and EARTHx. The line of credit is secured by future donations, grants and sponsorships received by Global Green." |
According to the Global Green USA consolidated audit of December 31, 2017 (Note 4, Property and Equipment, Net): "The buildings described in Note 1 as Douglas and Andry [see Note 1, cited below] were sold during the year at a purchase price of $236,270. The buildings and related construction in progress was disposed at a loss of $791,276. "Construction in progress was comprised of The Holy Cross Projects (Note 1). A portion of these costs were funded by a grant which limits use of the Projects to an educational and social service facility to provide for services to the residents of New Orleans, Louisiana... These limits will apply for a period of five years after the completion of The Holy Cross Projects." According to the Global Green USA consolidated audit of December 31, 2017 (Note 1, Principles of Consolidation): "Douglas & Andry Sustainable Building, LLC (Douglas & Andry) is a subsidiary of Global Green USA. Douglas & Andry was organized in 2006 for the purpose of building the Holy Cross Project, a project based in New Orleans, Louisiana, consisting of 5 single-family homes. The project achieved Platinum level certification under the Leadership in Energy and Environmental Design (LEED) Green Building Rating System for all single family homes and other buildings built by Douglas & Andry. ... [T]he buildings in the Holy Cross Project will consume at least 75% less energy than is typically used in similar buildings. Douglas & Andry is a single-member limited liability company owned entirely by Global Green USA." |