2024-11-13T10:26:54-06:00 2023-12-31 882599138 HUTTER CPA LLC 1931 BELLEVUE AVE SAINT LOUIS MO 63143 990 2023-01-01 742493831 CIRCUS FLORA INC CIRC 6178696336 PO BOX 440160 SAINT LOUIS MO 63144 JACK MARSH EXECUTIVE DIRECTOR 6178696336 2024-11-13 1 1 TERESA M HUTTER CPA P01717100 3144747998 2023 2024-10-15 13:58:12Z JACK MARSH PO BOX 440160 SAINT LOUIS MO 63144 766490 0 X WWW.CIRCUSFLORA.ORG X 1987 MO TO BRING JOY, DELIGHT, AND LAUGHTER TO LIFE THROUGH THE MAGIC OF CIRCUS. 10 10 10 95 977 0 178367 211531 416450 535732 -8403 154 8917 4793 595331 752210 0 0 0 0 136421 162043 0 0 53653 668361 632308 804782 794351 -209451 -42141 54708 11673 206435 330008 -151727 -318335 TO BRING JOY, DELIGHT, AND LAUGHTER TO LIFE THROUGH THE MAGIC OF CIRCUS. 0 0 641819 539548 CIRCUS FLORA SPECIALIZES IN ON-RING CIRCUS PERFORMANCES AND HAS GROWING OUTREACH PROGRAMS AND COLLABORATIONS. THE CLOWNS ON CALL PROGRAM WAS LAUNCHED IN 2011 AND HAS DELIVERED THE JOY OF CIRCUS TO THE LIVES OF THOUSANDS OF HOSPITALIZED CHILDREN AND THEIR FAMILIES AT ST. LOUIS-AREA CHILDREN'S HOSPITALS. CIRCUS FLORA HAS A HISTORY OF SUCCESSFUL COLLABORATIONS WITH OTHER INSTITUTIONS SUCH AS THE ST. LOUIS SYMPHONY ORCHESTRA, THE ILLINOIS SYMPHONY, THE ANTHENAEUM, THE SPOLETO FESTIVAL USA, AND THE SOUTH BEND SYMPHONY ORCHESTRA. 641819 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 56 0 1 10 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 1 0 1 1 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X HUTTER CPA LLC 3144747998 1931 BELLEVUE AVE SAINT LOUIS MO 63143 JIM DOWNEY PRESIDENT 1.00 X X 0 0 0 SUSAN WERREMEYER SECRETARY 1.00 X X 0 0 0 CARRIE CROMPTON TREASURER 1.00 X X 0 0 0 CHRIS HANSEN DIRECTOR 1.00 X 0 0 0 SARAH HIGHTOWER DIRECTOR 1.00 X 0 0 0 DAVID LAZAROFF DIRECTOR 1.00 X 0 0 0 MARY ANN SRENCO DIRECTOR 1.00 X 0 0 0 TEDD TRABERT DIRECTOR 1.00 X 0 0 0 STEVE KREKELER DIRECTOR 1.00 X 0 0 0 PAM KREKELER DIRECTOR 1.00 X 0 0 0 APRIL POWERS DIRECTOR (RESIGNED) 0.10 X 0 0 0 GEORGE PACE PRESIDENT (RESIGNED) 1.00 X X 0 0 0 JACK MARSH ARTISTIC AND EXECUTIVE DIRECTOR 40.00 X 88461 0 0 88461 0 0 0 0 0 0 0 24224 187307 3181 211531 CIRCUS TICKET SALES 711300 459877 459877 CONTRACT EVENTS 711300 62601 62601 CONCESSIONS, RIDES, FA 711300 12277 12277 PROGRAM ADS 541800 977 977 535732 1 1 4459 4306 153 153 153 14767 9974 4793 4793 752210 539548 977 154 X 100000 40000 30000 30000 58203 22680 24231 11292 3840 1496 1599 745 12715 12715 305548 295288 2180 8080 96996 96996 13892 10356 3536 4497 3373 1124 13623 13623 68581 66237 2344 CIRCUS SUPPLIES AND INF 82917 82917 PAYMENT PROCESSING FEES 16048 16048 PERMITS 8674 8358 316 METROTIX FEES 3618 3618 5199 4808 391 794351 641819 98879 53653 5574 8579 1500 7717 2500 35461 343 29638 29638 0 0 4306 251 150 54708 11673 61734 122643 2675 10455 13000 142026 160494 23416 206435 330008 X -151727 -318335 -151727 -318335 54708 11673 X -42141 -31333 -93134 X 0 0 0 X 236726 233748 536558 178367 211531 1396930 561602 48425 311105 427601 549522 1898255 59 84 82 79 304 798387 282257 847745 606047 761053 3295489 500 7500 20000 61234 89234 0 500 7500 20000 61234 89234 3206255 51 16 11 87 1 166 51 16 11 87 1 166 977 977 798438 282273 847756 606134 762031 3296632 0.97260 0.97440 0.00010 0.00010 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 29638 29638 0 0 GEORGE PACE FORMER BOARD PRESIDENT FROM DECEMBER 2022 TO SEPTEMBER 2023, GEORGE PACE SERVED AS BOARD PRESIDENT OF CIRCUS FLORA. AS SUCH, MR. PACE IS A DISQUALIFIED PERSON WITHIN THE MEANING OF CODE SECTION 4958. TREAS. REG. SECT. 53.4958-3(C)(2). MR. PACE CHARGED TO CIRCUS FLORA CREDIT CARD ACCOUNTS VARIOUS PERSONAL EXPENSES THAT HE KNEW OR SHOULD HAVE KNOWN WERE NOT APPROPRIATE TO SUBMIT AS BUSINESS EXPENSES, TOTALING $57,311.17. MR. PACE CONCEALED SOME OF HIS UNAUTHORIZED PURCHASES BY CHANGING THE BILLING ADDRESS ON THE ACCOUNT TO A PERSONAL ADDRESS AND CLAIMING THE ACCOUNT HAD BEEN CLOSED. IN OTHER INSTANCES, HE CLAIMED THAT HIS CREDIT CARD WAS STOLEN AND FALSELY REPORTED SOME OF THE UNAUTHORIZED TRANSACTIONS TO THE BANK AS FRAUD COMMITTED BY AN UNKNOWN PARTY. ADDITIONALLY, MR. PACE WITHDREW VARIOUS AMOUNTS FROM THE CHECKING ACCOUNT TOTALING $47,750. MR. PACE DISGUISED THESE WITHDRAWALS AS PAYMENTS MADE TO CIRCUS FLORA'S LINE OF CREDIT ACCOUNT, AS THE PAYEE WRITTEN ON THE CHECKS WAS LISTED AS CIRCUS FLORA'S BANKING INSTITUTION. CHECKS FROM DONORS TOTALING $1,367.24, AS WELL AS $1,891.20 CASH FROM PRODUCTION-RELATED SALES WERE DIVERTED AND KEPT BY MR. PACE. THESE CASH WITHDRAWALS AND PAYMENT OF PERSONAL EXPENSES WERE NOT APPROVED AND WERE NOT INTENDED BY CIRCUS FLORA TO BE MR. PACE'S COMPENSATION AND THUS CONSTITUTE AUTOMATIC EXCESS BENEFITS UNDER TREASURY REGULATIONS SECTION 53.4958-4(C). THE AGGREGATE EXCESS BENEFIT DETERMINED TO BE PROVIDED TO MR. PACE FROM DECEMBER 2022 THROUGH SEPTEMBER 2023 IS $108,319.61, WHICH CIRCUS FLORA IS SEEKING TO RECOVER.TO DATE, A TOTAL OF $15,185.96 HAS BEEN RECOVERED. WITH PERSONAL FUNDS, MR. PACE MADE FOUR PAYMENTS TOTALING $4,102 TO A CIRCUS FLORA CREDIT CARD ACCOUNT, PRESUMABLY TO AVOID ALERTS FROM THE BANKING INSTITUTION. $7,083.96 WAS REFUNDED BY THE BANKING INSTITUTION. ON SEPTEMBER 25, 2023, MR. PACE TENDERED A CHECK TO CIRCUS FLORA FOR $4,000 IN REPAYMENT AND PARTIAL CORRECTION OF THE EXCESS BENEFIT. ON OCTOBER 10, 2023, CIRCUS FLORA SENT A LETTER WITH A DEMAND FOR REPAYMENT OF $123,342.38, WHICH INCLUDED INTEREST AND OTHER COSTS INCURRED RELATED TO MITIGATING THE DAMAGE CAUSED BY MR. PACE. ADDITIONAL CORRESPONDENCE WAS SUBSEQUENTLY EXCHANGED BETWEEN PARTIES, BUT CIRCUS FLORA'S DEMANDS REMAIN UNMET. CORRECTION OF THE EXCESS BENEFIT HAS NOT YET BEEN MADE AS OF THE DATE OF THIS FILING. CIRCUS FLORA BELIEVES THE AMOUNT OF EXCISE TAX DUE UNDER SECTION 4958 BY MR. PACE IS $27,084. 0 27084 0 JACK MARSH EXECUTIVE DIRECTOR OPERATING EXPENSES X 14500 13000 0 1 1 13000 FORM 990, PART VI, SECTION A, LINE 2 PAM KREKELER IS THE SPOUSE OF STEVE KREKELER'S BROTHER. FORM 990, PART VI, SECTION A, LINE 4 REVISIONS TO THE BYLAWS INCLUDED STRENGTHENING THE CONFLICT-OF-INTEREST POLICY, CHANGES TO ROLES, RESPONSIBILITIES, AND STRUCTURE OF THE BOARD OF DIRECTORS, AN ADDITION OF A REQUIREMENT FOR THE ARTISTIC DIRECTOR TO REPORT DIRECTLY TO THE BOARD, AND PROVISIONS FOR ELECTRONIC MEETINGS. FORM 990, PART VI, SECTION A, LINE 5 DURING THE YEAR 2023, MANAGEMENT OF CIRCUS FLORA, INC. BECAME AWARE OF FRAUDULENT DISBURSEMENTS TOTALING APPROXIMATELY $108,000. THE BOARD OF DIRECTORS AND MANAGEMENT PERFORMED A THOROUGH REVIEW OF ALL FINANCIAL ACTIVITY TO INVESTIGATE AND QUANTIFY THE EXTENT OF THE FRAUDULENT DISBURSEMENTS. THEIR FINDINGS CONCLUDED THAT THE FRAUDULENT DISBURSEMENTS WERE THE RESULT OF EMBEZZLEMENT BY A BOARD OFFICER THAT OCCURRED OVER A 10-MONTH PERIOD BEGINNING DECEMBER 2022 THROUGH SEPTEMBER 2023. UPON DISCOVERING THE FRAUDULENT DISBURSEMENTS, CIRCUS FLORA IMMEDIATELY ENGAGED LEGAL COUNSEL AND TERMINATED THE TRANSGRESSING OFFICER. SEVERAL DEMAND LETTERS WERE SENT TO THE TRANSGRESSING OFFICER AND THEIR LEGAL REPRESENTATIVE. CIRCUS FLORA HAS RECOVERED $15,185.96 OF THE DIVERTED FUNDS AS OF THE DATE OF THIS FILING. SEE SCHEDULE L FOR MORE INFORMATION. IN RESPONSE TO THE FRAUD AND TO MITIGATE FUTURE RISKS, THE BOARD AND MANAGEMENT OF CIRCUS FLORA HAVE MADE REVISIONS TO THE ORGANIZATION'S BYLAWS AND POLICIES, CONDUCTED A THOROUGH REVIEW OF ITS INTERNAL CONTROLS, AND IMPLEMENTED NEW PROCEDURES FOR FINANCIAL MATTERS AND TRANSACTIONS. INDIVIDUAL ACCESS TO ALL FINANCIAL ACCOUNTS HELD BY CIRCUS FLORA WAS REVIEWED, UPDATED, AND DOCUMENTED. CIRCUS FLORA IMPLEMENTED NEW PROCEDURES FOR FINANCIAL MATTERS, INCLUDING THE HANDLING OF BANK STATEMENTS AND MAIL, TRANSPARENCY AMONG OFFICERS AND ACCOUNTING STAFF, STRENGTHENED RECORD-KEEPING, INTERNAL AUDITS, STAFF TRAINING, AND BACKGROUND CHECK REQUIREMENTS FOR ANYONE WITH ACCESS TO FINANCIAL ACCOUNTS. THE BOARD AND OFFICERS CONTINUE TO MONITOR AND EVALUATE THE SAFEGUARDS THE ORGANIZATION CURRENTLY HAS IN PLACE. FORM 990, PART VI, SECTION B, LINE 11B THE EXECUTIVE DIRECTOR REVIEWS THE 990, THEN EMAILS A COPY OF IT TO THE BOARD FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS AND STAFF ARE TO IDENTIFY POTENTIAL CONFLICTS, RAISE THE ISSUE TO THE BOARD, AND RECUSE THEMSELVES FROM RELEVANT DECISIONS. THE BOARD THEN MAKES A DETERMINATION ON WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 15A THE PROCESS FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S EXECUTIVE DIRECTOR IS LED BY THE BOARD OF DIRECTORS AND AUTHORIZED BY THE BOARD PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, POLICIES, FINANCIAL STATEMENTS, AND FEDERAL 990 ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CIRCUS ARTISTS, MUSICIANS, AND CREW: PROGRAM SERVICE EXPENSES 285,788. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 285,788. SECURITY: PROGRAM SERVICE EXPENSES 9,500. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,500. PAYROLL PROCESSING: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 2,180. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,180. STRATEGIC PLANNING: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 8,080. TOTAL EXPENSES 8,080. FORM 990, PART XI, LINE 9: MISAPPROPRIATION AND EMBEZZLEMENT OF FUNDS -93,134.