According to the Paws for Purple Hearts audit of December 31, 2022 (Note 2, Related Party Transactions): "The founder, who is also a member of the board of directors of the Organization, is a member of the board of directors of Bergin University of Canine Studies (BUCS). The Organization has a contract with BUCS located in Penngrove, California, as discussed further in Note 9 [cited below]. As a result of the contract, the Organization paid $709,831 to BUCS during the year ended December 31, 2022..." According to the Paws for Purple Hearts audit of December 31, 2022 (Note 9, Agreements): "The Organization has an agreement with BUCS to provide dogs that are suitable for candidates for training by veterans suffering from psychological scars, curriculum and updates for teaching veterans about training services and assistance dogs and oversight of the program, consulting regarding dogs being trained by the Organization, and services and expenses. The Organization has agreed to identify veterans eligible for dogs, work with veterans under the Organization's supervision, obtain dogs exclusively from BUCS, provide for the health and maintenance of the dogs, to extent possible, and all instructors of the Organization shall be BUCS graduates. In addition, the Organization will return the dogs to BUCS when suitable for placement. The agreement requires the Organization to reimburse BUCS for the cost of services and expenses, and an annual licensing fee. Effective January 1, 2022 the calculation of the licensing fee changed to 12% of the Organization's revenue from $250,000 to $500,000, 21% of revenue from $500,001 to $750,000, 30% of revenue from $750,001 to $1,000,000 and 36% of revenue from $1,000,001 to $10,000,000. During the year ended December 31, 2022, the Organization recorded $1,973,468 for licensing and administrative fees which is included in program services on the accompanying statement of activities. As of December 31, 2022, the Organization owes $1,238,014 to BUCS related to the above agreement..."
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