2022-08-15T10:24:12-05:00 2021-09-30 366055558 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2020-10-01 135645879 FEDCAP REHABILITATION SERVICES INC FEDC 2127274200 633 THIRD AVENUE NO 6TH FL NEW YORK NY 10017 CAROL KHOURY CFO 2127274200 2022-08-15 1 CAROL KHOURY XXX-XX-XXXX SCOTT THOMPSETT P00741490 2125990100 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z CHRISTINE MCMAHON 633 THIRD AVE 6TH FL NEW YORK NY 10017 151071826 0 X WWW.FEDCAP.ORG X 1935 NY OUR MISSION IS TO CREATE OPPORTUNITIES FOR PEOPLE WITH BARRIERS TO ECONOMIC WELL-BEING. 7 6 1734 39 0 0 1617029 1090904 134224049 130846332 612719 187247 11091807 18947343 147545604 151071826 923874 435666 0 0 92908102 88560850 0 0 1895110 51415755 63410159 145247731 152406675 2297873 -1334849 141691238 145385414 110871852 114635504 30819386 30749910 X SEE SCHEDULE O 1 0 77575051 40603 90093353 SEE SCHEDULE O 30262150 105571 32144838 SEE SCHEDULE O 6139930 283307 5617958 SEE SCHEDULE O 5205335 4818 2687057 OCCUPATIONAL HEALTH THE FEDCAP GROUP TAKES A NOVEL APPROACH TO OCCUPATIONAL HEALTH -ASSISTING INDIVIDUALS TO OBTAIN THE CRITICAL TREATMENT THEY NEED WHILE AT THE SAME TIME PROVIDING THE SUPPORTS NECESSARY FOR SUCCESSFUL EMPLOYMENT. THE FEDCAP GROUP PROVIDES CLINICAL SERVICES DIRECTLY AND INDIRECTLY THROUGH LOCAL COMMUNITY PARTNERS. IT COMPLEMENTS THESE SERVICES WITH ANCILLARY WORKFORCE DEVELOPMENT AND EDUCATIONAL SERVICES. THE FEDCAP GROUP OPERATES A VARIETY OF OCCUPATIONAL HEALTH PROGRAMS THROUGH SEVERAL OF ITS SUBSIDIARIES IN NEW HAMPSHIRE, NEW JERSEY, NEW YORK AND TEXAS AND WORKS WITH LOCAL PROVIDERS TO SERVE OTHER GEOGRAPHIES. WITH THE INCREASING TREND TO INCLUDE VULNERABLE POPULATIONS IN MANAGED CARE PLANS, THE FEDCAP GROUP IS ALSO SERVING AS A VALUABLE PARTNER TO INSURERS AND INTEGRATED PROVIDER GROUPS, DELIVERING PRECISE, EVIDENCE-BASED INTERVENTIONS THAT REDUCE HOSPITALIZATION AND READMISSION, AND INCREASE LONG-TERM HEALTH AND STABILITY. 208614 1367 303126 COMMUNITY IMPACT INSTITUTE THE FEDCAP GROUP LAUNCHED THE COMMUNITY IMPACT INSTITUTE (CII) IN 2009 AS ITS DISCOVERY AND STRATEGIC PLANNING ARM - PROMOTING CAPACITY BUILDING, TECHNICAL ASSISTANCE AND PRACTICE IMPROVEMENT -WITH A FOCUS ON IMPROVING THE WAY THAT SERVICES ARE DESIGNED AND DELIVERED. CII STRIVES TO FOSTER CONVERSATIONS THAT HELP PEOPLE ARTICULATE THEIR OWN AND THEIR COMMUNITIES' NEEDS AND CONVENES EXPERTS FROM DIFFERENT SECTORS TO BRAINSTORM CREATIVE AND ACTIONABLE IDEAS TO MEET THOSE NEEDS. CII BRINGS TOGETHER CONSUMERS, THOUGHT LEADERS, FUNDERS, PRACTITIONERS AND SERVICE PROVIDERS TO DESIGN INNOVATIVE INTERVENTIONS THAT WORK LOCALLY, WHILE ALSO BEING REPLICABLE NATIONALLY AND/OR GLOBALLY. 5413949 6185 2990183 119391080 1 0 0 0 0 0 0 1 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 0 0 1 150 0 1 1734 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 6 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X CAROL KHOURY CFO 2127274200 633 3RD AVENUE 6TH FLOOR NEW YORK NY 10017 LAURENCE ACH CO-CHAIR 1.00 0.00 X X 0 0 0 PETER PANKEN CO-CHAIR 1.00 0.00 X X 0 0 0 NANCY SETTERGREN TREASURER 1.00 0.00 X X 0 0 0 JANICE OURSLER PHD BOARD MEMBER 1.00 0.00 X 0 0 0 PETER ASCHKENASY BOARD MEMBER 1.00 0.00 X 0 0 0 PAUL DAVIS BOARD MEMBER 1.00 0.00 X 0 0 0 MALVINA KAY BOARD MEMBER 1.00 0.00 X 0 0 0 CHRISTINE MCMAHON PRESIDENT & CEO, FEDCAP GROUP 40.00 4.00 X 461074 0 168923 STEVEN COONS PRESIDENT, FEDCAP REHAB 40.00 0.00 X 252796 0 9357 CAROL KHOURY CFO 1.00 40.00 X 194052 0 27058 KENNETH BREZENOFF GEN. COUNSEL & VP STRAT. INIT. 40.00 1.00 X 190323 0 7985 GRANT COLLINS VP WORKFORCE DEVELOPMENT 5.00 35.00 X 241553 0 17682 MARCIA SALOVITZ EXECUTIVE DIRECTOR - WEACARE 40.00 0.00 X 184837 0 15407 TAMMY MICKELSON CHIEF INFORMATION OFFICER 40.00 0.00 X 184428 0 15570 HASSAN ABDULHAQQ DIR OF TALENT ACQ. (THRU 11/2020) 40.00 0.00 X 167430 0 5028 DENNIS SZE DIR. OF FINANCIAL OPERATIONS 20.00 20.00 X 146954 0 31224 2023447 0 298234 68 0 1 0 AB FACILITY SERVICES LLC 130 ALGONQUIN PARKWAY WHIPPANY NJ 07981 OPS. & MAINT. SVCS 4025766 EXEMPLAR HUMAN SERVICES LLC 30724 BENTON RD WINCHESTER CA 92596 ONLINE TRAINING SVCS 709400 JOBSPRING PARTNERS PO BOX 845388 BOSTON MA 022845388 TEMP AGENCY SVCS. 659370 GRANT THORNTON LLP 33570 TREASURY CENTER CHICAGO IL 60694 AUDIT, TAX & CONSULTING SVCS. 497410 L3P ASSOCIATES LLC 63 SPRING VALLEY ROAD RAYMOND ME 04071 STRATEGIC CONSULTANT 257004 12 1090904 1090904 CONTRACT SERVICES AND PRODUCTS 900099 90071625 90071625 REHAB AND VOCATIONAL PROGRAMS 624310 20476762 20476762 APEX TECH TUITION REVENUE 900099 19890248 19890248 CAREER DESIGN SCHOOL TUITION 900099 407697 407697 130846332 187247 187247 325383 0 325383 325383 325383 SUBSIDIARY EXPENSE REIMBURSMENT 900099 18368348 18368348 MISCELLANEOUS REVENUE 900099 253612 253612 18621960 151071826 130846332 0 19134590 435666 435666 1166250 250000 916250 62965304 58438004 3673627 853673 10135855 9433228 561370 141257 11191977 10416139 619862 155976 3101464 2886468 171773 43223 2668242 2668242 378209 309558 68651 528501 528501 4419454 1758607 2348183 312664 101372 7899 81413 12060 5989998 4304377 1616693 68928 3690583 808553 2863303 18727 9345858 7706708 1481105 158045 400761 342496 55668 2597 6923 3301 3622 3540730 3540730 4221926 767519 3452186 2221 1682175 1391155 271247 19773 REPAIRS AND MAINTENANCE 9515654 9446932 68722 BAD DEBT EXPENSE 6746327 930877 5815450 SUBCONTRACTOR EXPENSES 1309392 750808 558584 RESERVIST STIPENDS 1199686 1086022 112074 1590 7664368 5248521 2311471 104376 152406675 119391080 31120485 1895110 5505368 4354979 4106681 1761843 269632 269632 33229262 25619189 0 0 0 0 0 0 333278 414709 2285067 2290667 89553566 26177313 65587041 63376253 8503511 10069783 0 0 0 0 0 0 21871398 37228359 141691238 145385414 20477644 26407549 0 0 3622403 1255374 25198326 15420000 0 0 0 0 24219773 33203102 0 0 37353706 38349479 110871852 114635504 X 30515924 30446448 303462 303462 30819386 30749910 141691238 145385414 -1334849 1265373 0 X 0 1 X 1 1 1 X 1933479 1422499 3365557 1617029 1090904 9429468 1933479 1422499 3365557 1617029 1090904 9429468 9429468 679092 1183296 2470590 1501136 512630 6346744 614850 489394 44226 50216 253612 1452298 17228510 814083254 0.54730 0.66850 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS REVENUE - 2016 AMOUNT: $ 384,321. 2017 AMOUNT: $ 250,421. 2018 AMOUNT: $ 0. 2019 AMOUNT: $ 50,216. 2020 AMOUNT: $ 253,612. GROSS FUNDRAISING REVENUE - 2016 AMOUNT: $ 230,529. 2017 AMOUNT: $ 238,973. 2018 AMOUNT: $ 44,226. 2019 AMOUNT: $ 0. 2020 AMOUNT: $ 0. 21750 X 0 26860626 6629971 20230655 10659767 8131913 2527854 637499 557022 80477 51395674 10858407 40537267 63376253 DUE FROM RELATED AFFILIATES 35269765 OTHER ASSETS 1958594 37228359 OBLIGATIONS UNDER CAPITAL LEASE 35145994 OTHER LIABILITIES 3203485 38349479 X PART III, LINE 4: FEDCAP REHABILITATION SERVICES DISPLAYS SEVERAL PIECES OF ART IN ITS HEADQUARTERS BUILDINGS. THESE ART PIECES WERE DONATED YEARS AGO AND HAVE BEEN RETAINED TO ENHANCE THE AESTHETICS OF THE OFFICE BUILDING. THESE ASSETS DO NOT CONTRIBUTE IMPORTANTLY TO THE ORGANIZATION'S TAX-EXEMPT MISSION. PART X, LINE 2: FIN 48 FEDCAP AND ITS RELATED ENTITIES FOLLOW GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. FEDCAP AND ITS RELATED ENTITIES ARE EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3), THOUGH THEY ARE SUBJECT TO TAX ON INCOME UNRELATED TO THEIR RESPECTIVE EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THESE ORGANIZATIONS HAVE PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF THEIR TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE THEIR FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH THEY HAVE NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. FEDCAP AND ITS RELATED ENTITIES HAVE DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. 1 NEEDS ASSISTANCE (METRO-CARDS) 2360 435666 CLOTHING, FOOD, SUPPLIES, ETC. PART III: THE FEDCAP GROUP IS COMMITTED TO EFFECTING LONG-TERM, SUSTAINABLE CHANGE AMONG THE POPULATIONS AND COMMUNITIES WE SERVE. FEDCAP REHABILITATION SERVICES, INC. IS AN INSTRUMENTAL PART OF EFFECTING THAT CHANGE. ITS PROGRAMS AND OPERATIONS BRING EDUCATION AND THE POWER OF WORK TO INDIVIDUALS WITH DISABILITIES, ADULTS WITH CONVICTION HISTORIES,VETERANS, AND MANY OTHERS FACING BARRIERS TO EMPLOYMENT. INDIVIDUAL GRANTS DO NOT REQUIRE CONTINUED MONITORING AS THE ORGANIZATION ONLY PROVIDES ASSISTANCE TO THOSE INDIVIDUALS WHO HAVE DEMONSTRATED A NEED (EITHER PUBLIC ASSISTANCE, EDUCATIONAL STIPENDS OR SOME OTHER FORM OF CARE). NO GIFTED FUNDS MAY BE USED FOR NON-ESSENTIAL PURPOSES AND MAY NOT BE SPENT ON DISCRETIONARY ITEMS THAT DO NOT SUPPORT AN INDIVIDUAL'S HEALTH AND WELFARE. X X X X 1 1 0 0 0 0 0 0 0 CHRISTINE MCMAHON PRESIDENT & CEO, FEDCAP GROUP 461074 0 0 0 0 0 158050 0 10873 0 629997 0 0 0 STEVEN COONS PRESIDENT, FEDCAP REHAB 252796 0 0 0 0 0 7283 0 2074 0 262153 0 0 0 GRANT COLLINS VP WORKFORCE DEVELOPMENT 241553 0 0 0 0 0 6332 0 11350 0 259235 0 0 0 CAROL KHOURY CFO 194052 0 0 0 0 0 24803 0 2255 0 221110 0 0 0 MARCIA SALOVITZ EXECUTIVE DIRECTOR - WEACARE 184837 0 0 0 0 0 5851 0 9556 0 200244 0 0 0 TAMMY MICKELSON CHIEF INFORMATION OFFICER 184428 0 0 0 0 0 5607 0 9963 0 199998 0 0 0 KENNETH BREZENOFF GEN. COUNSEL & VP STRAT. INIT. 190323 0 0 0 0 0 5769 0 2216 0 198308 0 0 0 DENNIS SZE DIR. OF FINANCIAL OPERATIONS 146954 0 0 0 0 0 4682 0 26542 0 178178 0 0 0 HASSAN ABDULHAQQ DIR OF TALENT ACQ. (THRU 11/2020) 128392 0 0 0 39038 0 4298 0 730 0 172458 0 0 0 PART I, LINES 4A-B LINE 4A HASSAN ABDULHAQQ, DIRECT OF TALENT ACQUISITION, SEPARATED FROM THE ORGANIZATION IN NOVEMBER OF 2020. DURING CALENDAR YEAR 2020, HE RECEIVED A SEVERANCE PAYMENT. THIS AMOUNT IS REPORTED ON SCHEDULE J, PART II, COLUMN B(III). LINE 4B PRESIDENT/CEO, CHRISTINE MCMAHON PARTICIPATES IN FEDCAP'S SUPPLEMENTAL NONQUALIFIED SECTION 457(F) RETIREMENT PLAN. THE EMPLOYER CONTRIBUTION TO THE SECTION 457(F) PLAN IN CALENDAR YEAR 2020 WAS $130,000; THIS AMOUNT IS INCLUDED IN SCHEDULE J, PART II, COLUMN C. A BUILD NYC RESOURCE CORPORATION 454040561 2013-12-11 18450000 FINANCE PURCHASE OF BUILDING SPACE 0 0 0 A 3030000 18450000 308000 369000 17720390 52610 2013 0 0 1 1 A 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 A 1 PART IV, LINE 2C: FEDCAP REHABILITATION SERVICES, INC. IS LOOKING TO SECURE AN ARBITAGE REBATE CALCULATION IN THE UPCOMING YEAR; IT DOES NOT ANTICIPATE HAVING ANY ARBITRAGE ON ITS EXISTING BOND. PETER PANKEN SEE PART V 271364 LEGAL SVCS 0 FORM 990, SCHEDULE L, PART IV, LINE 1 BOARD MEMBER, PETER PANKEN, IS A PARTNER IN THE LAW FIRM OF EPSTEIN, BECKER & GREEN, P.C. THAT PROVIDES LEGAL SERVICES TO FEDCAP. FOR THE YEAR ENDING SEPTEMBER 30, 2021, FEDCAP PAID HIS LAW FIRM $271,364. THIS TRANSACTION IS DISCLOSED WITHIN FEDCAP'S AUDITED FINANCIAL STATEMENTS. MR. PANKEN RECUSED HIMSELF FROM THE DECISION-MAKING PROCESS TO HIRE HIS LAW FIRM. GENERAL STATEMENT REGARDING THE COVID-19 PANDEMIC: IN MARCH 2020, THE WORLD HEALTH ORGANIZATION OFFICIALLY DECLARED COVID-19, A DISEASE CAUSED BY THE NOVEL CORONAVIRUS, A PANDEMIC. THIS CAUSED MANY LOCAL AND NATIONAL GOVERNMENTS, INCLUDING NEW YORK STATE, TO IMPOSE RESTRICTIONS ON BUSINESS OPERATIONS, TRAVEL AND PUBLIC GATHERINGS. THE OUTBREAK HAS ADVERSELY IMPACTED THE LEVEL OF ECONOMIC ACTIVITY AROUND THE WORLD AND DISRUPTED NORMAL BUSINESS ACTIVITY IN EVERY SECTOR OF THE ECONOMY. AS A RESULT OF THE PANDEMIC, IN MID-MARCH 2020, FEDCAP MOVED CERTAIN PROGRAMS TO VIRTUAL PROGRAM SERVICES FOR THE REMAINDER OF THE FISCAL YEAR. IN ORDER TO MITIGATE THE IMPACT OF THE PANDEMIC, FOR FISCAL YEAR 2021, FEDCAP CONTINUES TO OFFER SOME PROGRAMS VIRTUALLY WHILE SHIFTING TO IN-PERSON PROGRAMS FOR OTHERS. THE FULL IMPACT OF THE COVID-19 OUTBREAK CONTINUES TO EVOLVE AS OF THE DATE OF THIS REPORT. EXTERNAL FACTORS, INCLUDING THE DURATION AND INTENSITY OF THE PANDEMIC, THE SHAPE OF THE ECONOMIC RECOVERY AND ITS IMPACT ON POTENTIAL GOVERNMENT FUNDING, AS WELL AS TIMING AND WIDESPREAD ADOPTION OF VACCINES, COULD HAVE A MATERIAL IMPACT ON FEDCAP'S FUTURE OPERATING AND PROGRAMMATIC RESULTS. FORM 990, PART III, LINE 1 OUR MISSION IS TO CREATE OPPORTUNITIES FOR PEOPLE WITH BARRIERS TO ECONOMIC WELL-BEING. FEDCAP REHABILITATION SERVICES PROVIDES AN ARRAY OF SERVICES TO YOUTH AND ADULTS HELPING THOUSANDS EACH YEAR GRADUATE FROM HIGH SCHOOL, OBTAIN VOCATIONAL CERTIFICATION OR A COLLEGE DEGREE, BECOME WORK READY, OBTAIN MEANINGFUL EMPLOYMENT AND ACHIEVE LONG TERM ECONOMIC WELL-BEING. FOUNDED IN 1935 BY THREE VETERANS WITH PHYSICAL DISABILITIES WHO STRUGGLED TO FIND EMPLOYMENT, FEDCAP SERVES THOUSANDS OF PEOPLE ANNUALLY INCLUDING VETERANS, PEOPLE WITH PHYSICAL AND DEVELOPMENTAL DISABILITIES, INDIVIDUALS WITH MENTAL HEALTH ISSUES, ADULTS WHO'VE BEEN IN PRISON, AND DISCONNECTED YOUTH AGING OUT OF FOSTER CARE AND JUVENILE JUSTICE SYSTEMS. EACH YEAR, FEDCAP OFFERS AN ARRAY OF SERVICES THROUGH ITS FOUR PRACTICE AREAS EDUCATION, WORKFORCE DEVELOPMENT, OCCUPATIONAL HEALTH, AND ECONOMIC DEVELOPMENT-HELPING MORE THAN 80,000 INDIVIDUALS GRADUATE FROM HIGH SCHOOL, OBTAIN VOCATIONAL CERTIFICATION OR A COLLEGE DEGREE, BECOME WORK READY, OBTAIN MEANINGFUL EMPLOYMENT AND ACHIEVE ECONOMIC WELL-BEING. THE FEDCAP GROUP'S WORK IS STRUCTURED ACROSS FOUR PRACTICE AREAS - EDUCATION, OCCUPATIONAL HEALTH, WORKFORCE DEVELOPMENT AND ECONOMIC DEVELOPMENT. EACH PRACTICE AREA IS OVERSEEN BY A SENIOR VICE PRESIDENT (SVP) WITH NATIONAL EXPERIENCE AND EXPERTISE IN THEIR AREA OF FOCUS. THE WORK IS DELIVERED THROUGH AGENCIES MANAGED BY LEADERS WITH SIGNIFICANT LOCAL KNOWLEDGE AND EXTENSIVE OPERATIONAL EXPERIENCE AND SKILLS. THROUGH THIS MATRIX STRUCTURE, THE FEDCAP GROUP ALIGNS ITS WORK ACROSS DIVERSE SYSTEMS AND FUNDING SOURCES FOR GREATER IMPACT. THE EFFORTS OF EACH PRACTICE AREA ARE SUPPORTED BY THE COMMUNITY IMPACT INSTITUTE - THE FEDCAP GROUP'S DISCOVERY AND RESEARCH ARM. FORM 990, PART III, LINE 2 IN SEPTEMBER OF 2020, FEDCAP ACQUIRED APEX TECHNICAL SCHOOL, LLC ("APEX"). APEX IS AN ADULT VOCATIONAL TECHNICAL SCHOOL THAT OFFERS SEVEN CERTIFICATE COURSES DESIGNED TO FOCUS ON BASIC TRADE SKILLS AND LABOR SKILLS FOR ITS STUDENTS. THERE ARE SEVEN 900-HOUR CERTIFICATE COURSES DESIGNED TO FOCUS ON PROVIDING BASIC TRADE SKILLS AND LABOR SKILLS TO HELP STUDENTS REACH THEIR GOALS IN AN ENTRY-LEVEL POSITION. THOSE COURSES ARE REFRIGERATION, AUTOMOTIVE SERVICES, AUTO BODY, WELDING TECHNOLOGY, ELECTRICAL, PLUMBING AND CONSTRUCTION. ALL OF THE TECHNICAL TRADE SCHOOL PROGRAMS OFFER HANDS-ON TRAINING IN AS LITTLE AS 7 MONTHS. IN ADDITION TO DAY AND EVENING CLASSES, APEX TECHNICAL SCHOOL PROVIDES JOB PLACEMENT ASSISTANCE, FINANCIAL AID AND WORK-STUDY JOBS TO THOSE THAT QUALIFY. THE ACQUISITION OF APEX ENABLES FEDCAP TO SUPPLEMENT ITS FEDCAP CAREER DESIGN SCHOOLS THAT HAVE HELPED STUDENT (FOR OVER 40 YEARS) BECOME TRAINED IN HIGH GROWTH SECTORS THAT WILL LEAD TO CAREERS. FEDCAP'S PROGRAMS ARE STRUCTURED TO TEACH STUDENTS OF DIVERSE ABILITIES THE TECHNICAL SKILLS REQUIRED TO PERFORM THE TASKS OF A SPECIFIC JOB. THE ACQUISITION INCREASES FEDCAP'S CLASS OFFERINGS AND ABILITY TO REACH MORE STUDENTS. FORM 990, PART III, LINE 4A ECONOMIC DEVELOPMENT HISTORICALLY, THE FEDCAP GROUP HAS FOSTERED JOB CREATION FOR PEOPLE WITH BARRIERS TO ECONOMIC WELL-BEING THROUGH THE DEVELOPMENT AND OPERATION OF SOCIAL BUSINESS VENTURES. THE FEDCAP GROUP CURRENTLY EMPLOYS APPROXIMATELY 1,500 INDIVIDUALS IN BUSINESSES WITH TOTAL ANNUAL REVENUES OF OVER $100 MILLION. THE FEDCAP GROUP IS NOW LOOKING TO EXPAND ITS WORK IN ECONOMIC DEVELOPMENT WITH THE ADDITION OF INVESTMENT CAPACITY ALIGNED WITH ITS HOLISTIC OFFERINGS IN THE TALENT DEVELOPMENT ARENA. FORM 990, PART III, LINE 4B WORKFORCE DEVELOPMENT THE WORKFORCE DEVELOPMENT PRACTICE AREA WORKS IN CLOSE PARTNERSHIP WITH BUSINESS TO CREATE CUSTOMIZED, EMPLOYER-BASED TRAINING DESIGNED TO DEVELOP THE SKILLS AND CHARACTERISTICS EMPLOYERS REQUIRE. THE FEDCAP GROUP'S WORKFORCE DEVELOPMENT PROVIDES HARD SKILLS TRAINING EITHER DIRECTLY BY HIRING ITS OWN SKILLS-BASED TRAINING PROVIDERS OR INDIRECTLY, BY ORGANIZING LOCAL PROVIDERS -INCLUDING COMMUNITY COLLEGES - TO CREATE MODULAR INDUSTRY-RECOGNIZED CREDENTIALS. THROUGH THIS EMPLOYER-BASED TRAINING, DIAGNOSTIC VOCATIONAL EVALUATIONS, WORK READINESS PREPARATION, RAPID JOB PLACEMENT AND POST-PLACEMENT SUPPORTS, THE FEDCAP GROUP'S WORKFORCE DEVELOPMENT TEAM EFFECTIVELY BUILDS RELATIONSHIPS AND PARTNERSHIPS THAT ALIGN EMPLOYERS' NEEDS WITH THE NEEDS OF WORKERS SEEKING OPPORTUNITIES. FORM 990, PART III, LINE 4C EDUCATIONAL DEVELOPMENT IN THE EDUCATION PRACTICE AREA, THE FEDCAP GROUP HAS DEVELOPED PROPRIETARY WEB-BASED TOOLS THAT HELP CHILDREN, YOUTH AND ADULTS STAY IN SCHOOL, GRADUATE HIGH SCHOOL AND COMPLETE COLLEGE. IT ALSO PROVIDES STATE-OF-THE-ART EDUCATION IN VARIOUS TRADES THROUGH ITS CAREER DESIGN SCHOOLS, LOCATED IN NEW YORK CITY AND BOSTON, AND OPERATES OTHER PRESCHOOLS AND SPECIAL EDUCATION SCHOOLS IN NEW JERSEY, NEW YORK, RHODE ISLAND AND TEXAS THAT TARGET PARTICULAR POPULATIONS AND/OR BARRIERS. FORM 990, PART VI, SECTION A, LINE 6 FEDCAP REHABILITATION SERVICES, INC. SOLE MEMBER IS THE FEDCAP GROUP, INC. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S BYLAWS RESERVE THE POWER TO THE SOLE MEMBER TO APPOINT, REPLACE OR REMOVE THE BOARD OF DIRECTORS (FOR ANY REASON AT ANY TIME). FORM 990, PART VI, SECTION A, LINE 7B CERTAIN ACTS OF THE ORGANIZATION MUST ALSO BE APPROVED BY AFFIRMATIVE VOTE OF 2/3 OF THE BOARD MEMBERS OF THE SOLE MEMBER, INCLUDING, THE POWER TO: - AMEND, RESTATE, OR REVOKE ITS CERTIFICATE OF INCORPORATION OR ITS BYLAWS; - PERMIT OR APPROVE ITS MERGER OR CONSOLIDATION WITH OR INTO ANY OTHER ENTITY OR PERMIT OR APPROVE ITS CONVERSION INTO ANOTHER FORM OF ENTITY; - ADOPT A BUDGET OR MAKE A MATERIAL CHANGE TO AN EXISTING BUDGET; - DIVEST ITSELF OF ANY LINE OF BUSINESS, OR ANY OTHER BUSINESS ENTITY, OWNED OR CONTROLLED BY IT; - PERMIT OR APPROVE THE FILING BY IT OF A PETITION FOR BANKRUPTCY OR THE APPOINTMENT BY IT OF A RECEIVER OR COMMENCEMENT OF ANY OTHER INSOLVENCY OR REORGANIZATION PROCEEDING INVOLVING IT OR ANY OF ITS ASSETS; - PERMIT OR APPROVE ITS ENTERING INTO OF ANY GUARANTY OR SURETY ARRANGEMENT FOR THE BENEFIT OF ANY OTHER ENTITY; - PERMIT OR APPROVE THE SALE OF ALL OR SUBSTANTIALLY ALL OR ANY MATERIAL PART OF ITS ASSETS; - COMMENCE A LAWSUIT OR OTHER LEGAL PROCEEDING AGAINST ANY PERSON; - ADMIT A NEW MEMBER; - PERMIT OR APPROVE THE ACQUISITION OF ANY BUSINESS OR ENTITY; (M) PERMIT OR APPROVE THE INCURRING OF ANY INDEBTEDNESS FOR BORROWED MONEY; OR - LEASE, SUBLEASE, ACQUIRE, SELL OR OTHERWISE ENGAGE IN A REAL PROPERTY TRANSACTION FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM IN CONJUNCTION WITH FEDCAP'S FINANCIAL DEPARTMENT. THE FORM 990 WAS REVIEWED BY SENIOR MANAGEMENT AND DISTRIBUTED TO THE FULL BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENT BEFORE IT WAS ELECTRONICALLY FILED WITH THE INTERNAL REVENUE SERVICE. A FULL COPY OF THE 990 WAS PROVIDED TO THE FULL BOARD BEFORE FILING FOR THEIR REVIEW AND COMMENT. FORM 990, PART VI, SECTION B, LINE 12C FEDCAP HAS IMPLEMENTED A ROBUST CONFLICT OF INTEREST AND PECUNIARY BENEFIT TRANSACTION POLICY THAT REQUIRES ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES TO EXERCISE PRUDENCE AND AN UNBENDING DUTY OF LOYALTY WHEN ADMINISTERING TO THE AFFAIRS OF THE ORGANIZATION. EACH MEMBER OF THE BOARD OF DIRECTORS IS REQUIRED TO AFFIRM ANNUALLY THAT HE OR SHE DOES NOT HAVE A CONFLICT OF INTEREST WITH THE ORGANIZATION BY COMPLETING AN ANNUAL QUESTIONNAIRE DISCLOSING ANY POTENTIAL CONFLICTS OF INTEREST. TRANSACTIONS WITH RELATED PARTIES MAY ONLY BE UNDERTAKEN IF THE INDIVIDUAL: 1. FULLY DISCLOSES THE TRANSACTION 2. THE OFFICER, DIRECTOR OR KEY EMPLOYEE RECUSED HIM OR HERSELF FROM THE DISCUSSION AND APPROVAL OF SUCH TRANSACTION. 3. THE BOARD HAS DETERMINED, BY AFFIRMATIVE VOTE OF ALL DISINTERESTED DIRECTORS, THAT THE TRANSACTION IS IN THE BEST INTEREST OF FEDCAP REHABILITATION SERVICES, INC. VIOLATION OF THE POLICY WILL SUBJECT AN EMPLOYEE TO DISCIPLINARY ACTION OR IMMEDIATE DISCHARGE. EMPLOYEES WHO HAVE KNOWLEDGE OR SUSPICION OF IMPROPER CONDUCT OR ACTIVITIES BY OTHER EMPLOYEES OR OUTSIDE PARTIES DOING BUSINESS WITH FEDCAP, ARE EXPECTED TO IMMEDIATELY BRING IT TO THE ATTENTION OF THE CEO OR DIRECTOR OF HUMAN RESOURCES. FORM 990, PART VI, SECTION B, LINE 15 FEDCAP UNDERTAKES A THOROUGH PROCESS ANNUALLY TO ENSURE THAT THE EXECUTIVE COMPENSATION IT PAYS TO ITS TOP MANAGEMENT OFFICIAL AND ALL OF THE OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION IS REASONABLE GIVEN THE MARKET IN WHICH IT OPERATES. IN RELEVANT PART, THE BOARD OF DIRECTORS HAS ESTABLISHED A COMPENSATION COMMITTEE OF INDEPENDENT PERSONS THAT HAVE NO PERSONAL INTEREST IN THE PROPOSED COMPENSATION AGREEMENT. IN DETERMINING THE PRESIDENT'S COMPENSATION PACKAGE, THE COMPENSATION COMMITTEE CONDUCTS AN ANALYSIS OF INDUSTRY COMPARABLES FOR INDIVIDUALS PERFORMING SIMILAR JOB FUNCTIONS. THE COMPENSATION COMMITTEE ULTIMATELY MAKES THE DECISIONS ABOUT THE PRESIDENT'S COMPENSATION AND MEMORIALIZES ITS DECISION IN THE BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 FEDCAP MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS. THE FORM 990 IS, LIKEWISE, PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. FEDCAP'S ANNUAL REPORT ANDFINANCIAL STATEMENTS ARE AVAILABLE AT WWW.FEDCAP.ORG. FEDCAP'S CONFLICT OF INTEREST POLICY, CODE OF ETHICS AND WHISTLEBLOWER POLICIES ARE AVAILABLE, AS WELL AS ITS GOVERNING DOCUMENTS, ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. 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