Overview of The Key Program Incorporated

Additional information about the organization and its responsibilities.

Overview

The Key Program Incorporated, headquartered in Framingham, is a private, nonprofit human-service corporation that, according to its website, was established “to assist troubled youth and their families with developing positive life skills and life experiences so that they may pursue productive and rewarding lives.” The organization was originally incorporated in 1974 as Community Advancement Program, Inc.; it adopted its current name in 1977.¹ It provides services in 19 locations in Massachusetts and 3 locations in Rhode Island. Key had more than $33 million in total revenue in each of the fiscal years covered by our audit, and it employed an average of 419 full-time employees across the two states during our audit period. The Commonwealth of Massachusetts is Key’s principal source of revenue. According to Key’s audited financial statements, Massachusetts provided 92% of Key’s revenue in fiscal year 2014, 81% in fiscal year 2015, and 89% in fiscal year 2016. Key’s operations are overseen by an eight-member board of directors that includes the corporation’s president and treasurer as well as six independent directors. One of the independent members is the board’s chair.

During our audit period, Key received revenue from the following sources.

Annual Revenue Sources by Fiscal Year*

	2014	2015	2016
Department of Children and Families	$ 20,802,065	$ 22,463,154	$ 22,957,079
Department of Youth Services	4,911,410	4,935,620	4,858,473
Medicaid	1,986,375	1,682,575	1,438,724
Other	7,060,474	5,335,066	4,211,308
Total	$ 34,760,324	$ 34,416,415	$ 33,465,584

*    Key’s fiscal year ends on June 30.

Key offers both residential and nonresidential programs. Residential programs provide shelter, education, counseling, and life-skills training to juvenile offenders, truants, runaways, and abused or neglected children and young adults. Nonresidential programs provide care to clients while they live with parents or guardians, in foster homes, or independently. The services provided in these programs include consultation, advocacy, education, recreation, mental-health care, and trauma care (see Appendix). Key operates from locations in Massachusetts and Rhode Island. Because it operates similar programs in both states, costs are allocated to programs based on activities related specifically to each state.

1. In 1995, Key established another Massachusetts nonprofit corporation, called the Alternatives for Youth Foundation, Inc. (AYF). According to AYF’s articles of organization, its purposes include “providing funding for [Key], establishing and funding programs to benefit past and present clients . . . and providing grants to other charitable, tax-exempt organizations whose purposes are consistent with [Key’s].” AYF has the same board of directors as Key. Key’s annual Uniform Financial Statement and Independent Auditor’s Report filed with the state’s Operational Services Division includes the financial activity of AYF.

Date published:	January 11, 2018