2020-02-25T16:00:06-06:00 2019-06-30 350921680 CROWE LLP 488 Madison Avenue Floor 3 New York NY 100225702 990 2018-07-01 131624000 Federation Employment and Guidance Service Inc FEDE 2123668400 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 Judith Pincus Plan Administrator 2020-02-25 true Bernard W Costich P01873766 2125725500 2018 2020-09-23 17:36:50Z Judith Pincus 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 8374474 false X FEGS.ORG X 1934 NY Prior to filing for relief under Chapter 11 of the bankruptcy code and during the pendency of its Chapter 11 case, FEDERATION (continued on Schedule O) X 0 0 10 0 0 0 15000 0 0 0 9974528 5460508 12062165 378651 22051693 5839159 0 0 0 0 1269014 1338090 0 0 0 4961666 2757014 6230680 4095104 15821013 1744055 28484857 20575753 38544693 29107862 -10059836 -8532109 FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") IS A NOT-FOR-PROFIT HEALTH AND HUMAN SERVICES ORGANIZATION WHICH UNTIL mAY 2015 PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY (CONTINUED IN SCHEDULE O) false false 2655657 0 0 ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. SHORTLY PRIOR TO THE PETITION DATE, THE DEBTOR ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER SERVICE PROVIDERS. BY MAY 31, 2015, THE DEBTOR HAD SUCCESSFULLY TRANSFERRED, PURSUANT TO COURT ORDER, ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS WHO ASSUMED THE OPERATIONS FOR THE DEBTOR'S FORMER PROGRAMS. IN ORDER TO PREVENT THE DISLOCATION OF ITS FORMER CLIENTS, FEGS SUBSEQUENTLY LEASED ITS FACILITIES, PURSUANT TO COURT ORDER, TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES COULD BE COMPLETED AND APPROVED BY THE COURT. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED THE DEBTOR'S PLAN. THE DEBTOR'S PLAN BECAME EFFECTIVE ON MARCH 1, 2018. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED WITH THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF PRIOR SALES OF THE DEBTOR'S ASSETS, TO BE DISTRIBUTED TO THE DEBTOR'S CREDITORS AS PROVIDED UNDER THE BANKRUPTCY CODE AND AS FURTHER DESCRIBED IN THE DEBTOR'S PLAN. THE CONFIRMATION ORDER APPROVED THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS WHICH IS COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS, AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF THE DEBTOR'S FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER THE DEBTOR'S CHARITABLE PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO THE DEBTOR'S FORMER RESIDENTIAL CLIENTS. THE CONFIRMATION ORDER ALSO APPROVED THE PRIVATE SALE OF THE DEBTOR'S MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF THE DEBTOR AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. FEGS REALIZED $0 IN PROGRAM REVENUE DURING THE CURRENT TAX YEAR. THE EXPENSES REFLECTED IN PART III CONSIST OF EXPENSES INCURRED IN THE OPERATION AND ADMINISTRATION OF ITS FACILITIES WHICH WERE LEASED TO THE TAX EXEMPT SUCCESSOR PROGRAM SERVICE PROVIDERS UNTIL THE SALE OF THOSE PROPERTIES TO THOSE TAX EXEMPT SUCCESSOR PROGRAM SERVICE PROVIDERS COULD BE CLOSED. 2655657 true false false false false false false false true false false false true true false false false false false false false false false false false false false false true false false false false false false false false false false false true false true true true false false true X 13 0 true 10 true false false false false false false true false false false false false X 0 0 false false false false false false false true true false false true true true true true true false false false NY X MICHAEL KIRSHNER CO FEGS 2123668476 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 JUDITH PINCUS CHIEF WIND-DOWN OFFICER, PLAN ADMINISTRATOR 35.0 X 243634 0 8087 MICHAEL H KIRSHNER CONTROLLER / VICE PRESIDENT 35.0 X 207155 0 46191 BRADLEY E CHASE Administrative Manager 35.0 X 107884 0 19416 Andrew Slutsky Director, Sr./HR 35.0 X 128634 0 40954 687307 0 114648 4 true true false GARFUNKEL WILD PC 111 Great Neck Rd Great Neck NY 11021 BANKRUPTCY PROF. FEES 2236390 CROWE LLP 488 Madison Ave 1200 New York NY 10022 BANKRUPTCY PROF. FEES 875620 PACHULSKI STANG ZIEHL & JONES 780 THIRD AVENUE 34 FL NEW YORK NY 10017 BANKRUPTCY PROF. FEES 157205 ALVAREZ & MARSAL HEALTHCARE INDUSTRY 600 Madison Avenue 8th Floor New York NY 10022 BANKRUPTCY PROF. FEES 139910 SEYFARTH SHAW LLP 620 Eighth Avenue 32nd Floor New York NY 10018 BANKRUPTCY PROF. FEES 121528 5 0 0 0 0 0 0 73626 73626 86878 76426 10452 0 10452 10452 7845771 2458889 0 5386882 5386882 5386882 Miscellaneous Income 900099 368199 368199 0 0 0 0 368199 5839159 0 0 5839159 0 0 463910 463910 534398 534398 121369 121369 144352 144352 74061 74061 933898 933898 505549 505549 232736 232736 0 0 4901 4901 7659 7659 278627 278627 13553 13553 48952 48952 371456 371456 Record Storage & Retrieval 106028 106028 Records Custodian 111983 111983 Trustee Fees 141672 141672 0 0 0 0 4095104 2655657 1439447 0 20561873 16099437 1604178 1608501 0 0 0 1003506 61737 0 0 2713657 0 0 0 0 2601643 2806078 28484857 20575753 16344180 9484676 2807034 0 0 3652568 3652568 15740911 15970618 38544693 29107862 X -19604081 -17989356 7575809 7488811 1968436 1968436 -10059836 -8532109 28484857 20575753 X 1744055 -185741 -30587 X false false false X 63290253 114244 31813 15000 0 63451310 0 0 63290253 114244 31813 15000 0 63451310 0 63451310 240401 3504468 1926408 717529 160504 6549310 0 0 0 0 0 0 0 53125 3593 0 0 56718 70057338 113946305 0.9057 0.945 X Schedule A, Part II, Line 10 Other Income DESCRIPTION - OTHER INCOME, COLUMN A - 0.0, COLUMN B - 53125.0, COLUMN C - 3593.0, COLUMN D - 0.0, COLUMN E - 0.0, COLUMN F - 56718.0; 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 0.0 0.94 0.06 false false Assets held for deferred compensation 2507725 Deposits 298353 2806078 ACCRUED SALARIES AND VACATION PAYABLE 1282031 CONTRACT ADVANCES 12180862 LIABILITY FOR DEFERRED COMPENSATION 2507725 15970618 Schedule D, Part VI Fixed Assets WITH RESPECT TO FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC.'S ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") ASSET BALANCE SHEET ACCOUNTS, CASH AND INVESTMENT ASSET ACCOUNT BALANCES ARE REFLECTED AT FAIR MARKET VALUE, ACCOUNTS RECEIVABLE IS REFLECTED AT ESTIMATED NET REALIZABLE VALUE AND THE OTHER BALANCE SHEET ASSET ACCOUNT BALANCES AT HISTORICAL COST. WITH RESPECT TO ACCOUNTS RECEIVABLE, THE DEBTOR HAS REVIEWED THIS ACCOUNT AND HAS WRITTEN-OFF RECEIVABLES THAT THE DEBTOR BELIEVES WILL NOT BE COLLECTED. WITH RESPECT TO LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS AND EQUIPMENT, THE DEBTOR HAS COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES DURING THE CURRENT TAX YEAR AND ACCORDINGLY THE END OF YEAR BALANCE OF THIS ASSET ACCOUNT IS $0. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE DISCLOSURE STATEMENT PROVIDES A DETAILED DESCRIPTION OF THE AMOUNTS EXPECTED TO BE REALIZED BY FEGS FROM THE SALE OF ITS REMAINING ASSETS, INCLUDING ITS REAL ESTATE. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER AND OTHER PLEADINGS AND DOCUMENTS FILED WITH THE COURT AND PERTAINING TO THE DEBTOR'S CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Schedule D, Part X Other Liabilities LIABILITY BALANCE SHEET ACCOUNT BALANCES ARE REFLECTED AT AMOUNTS STATED BY FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") AT HISTORICAL COST. THAT SAID, THE AMOUNTS REFLECTED BY FEGS IN ITS LIABILITY ACCOUNTS FOR ACCOUNTS PAYABLE, NOTES PAYABLE AND OTHER LIABILITIES MAY BE UNDERSTATED. IN ADDITION, THE DEBTOR HAS INCURRED AND WILL CONTINUE TO INCUR ADDITIONAL LIABILITIES AS A RESULT OF THE FILING OF THE BANKRUPTCY PETITION AND IN THE WIND-DOWN OF ITS BUSINESS. IN ADDITION, CERTAIN LIABILITIES REFLECTED IN FEGS' BALANCE SHEET WILL BE SUBJECT TO ADJUSTMENT THROUGH THE BANKRUPTCY PROCESS. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE DISCLOSURE STATEMENT CONTAINS AN ANALYSIS OF THE CLAIMS ASSERTED AGAINST THE DEBTOR AND IS A MORE ACCURATE ESTIMATE OF THE DEBTOR'S LIABILITIES THAN IS PRESENTED IN THE DEBTOR'S FINANCIAL STATEMENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE ACQUIRING SERVICE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE ON MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71071 (REG). REGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER, THE TRUST AGREEMENT, AND OTHER PLEADINGS AND DOCUMENTS FILED WITH THE COURT AND PERTAINING TO THE DEBTOR'S CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Schedule D, Part V, Line 4 Intended uses of endowment funds THE OBJECTIVE OF THE ENDOWMENT FUNDS IS TO GENERATE INCOME TO BE USED BY FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR," OR THE "TAXPAYER") FOR CERTAIN SPECIFIC CHARITABLE PROGRAMS WHILE MAINTAINING THE ENDOWMENT FUND PRINCIPAL. AT THE TIME WHEN THE ENDOWMENT FUNDS WERE FIRST ESTABLISHED, IT WAS CONTEMPLATED THAT THE PRINCIPAL AMOUNT OF THE FUNDS (THE "FUNDS") WOULD BE HELD IN PERPETUITY. IN FURTHERANCE OF THE DEBTOR'S WIND-DOWN, IT IS THE INTENT OF FEGS, SUBJECT TO THE TERMS AND CONDITIONS UNDER WHICH THE ENDOWMENT FUND WAS ESTABLISHED AND APPROVAL OF THE NYS ATTORNEY GENERAL and the NYS Supreme Court (as applicable) TO TRANSFER THE FUNDS TO OTHER CHARITABLE ORGANIZATIONS THAT HAVE A SIMILAR CHARITABLE MISSION. false false false false false false false false false JUDITH PINCUS CHIEF WIND-DOWN OFFICER, PLAN ADMINISTRATOR 242448 0 0 0 1186 0 7451 0 636 0 251721 0 0 0 MICHAEL H KIRSHNER CONTROLLER / VICE PRESIDENT 205573 0 0 0 1582 0 6628 0 39563 0 253346 0 0 0 Andrew Slutsky Director, Sr./HR 128310 0 0 0 324 0 3527 0 37427 0 169588 0 0 0 Schedule J, Part II, Column (C) Retirement and Other Deferred Compensation Does not reflect cash payment but annual increase in the actuarial value of participant's pension plan. Schedule J, Part II, Column (D) Nontaxable benefits Amounts represent Taxpayer's premium contributions to employee group medical and dental plan. OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-08-07 6159 COST 113590136 Human First Inc 80 Maiden Lane New York NY 10038 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-08-07 741083 COST 113590136 Human First Inc 80 Maiden Lane New York NY 10038 501(c)(3) LAND 2018-08-07 325000 COST 113590136 Human First Inc 80 Maiden Lane New York NY 10038 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-08-30 67494 COST 112333666 Suffolk AHRC 2900 Veterans Highway Bohemia NY 11716 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-08-30 1340881 COST 112333666 Suffolk AHRC 2900 Veterans Highway Bohemia NY 11716 501(c)(3) LAND 2018-08-30 125000 COST 112333666 Suffolk AHRC 2900 Veterans Highway Bohemia NY 11716 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2019-01-23 4238 COST 112420547 Free Inc 191 Sweet Hollow Road Old Bethpage NY 11804 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2019-01-23 327276 COST 112420547 Free Inc 191 Sweet Hollow Road Old Bethpage NY 11804 501(c)(3) LAND 2019-01-23 150000 COST 112420547 Free Inc 191 Sweet Hollow Road Old Bethpage NY 11804 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-07-06 123799 COST 112438213 Community Services Support Corp 189 Wheatley Road Brookville NY 11545 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-07-06 1298829 COST 112438213 Community Services Support Corp 189 Wheatley Road Brookville NY 11545 501(c)(3) LAND 2018-07-06 340000 COST 112438213 Community Services Support Corp 189 Wheatley Road Brookville NY 11545 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2019-03-27 3050 COST 113088310 Hands Across Long Island Inc 159 Brightside Avenue Central Islip NY 11722 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2019-03-27 228723 COST 113088310 Hands Across Long Island Inc 159 Brightside Avenue Central Islip NY 11722 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2019-01-25 209866 COST 131624123 The New York Foundling Hospital 590 Avenue of the Americas New York NY 10011 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2019-01-25 2050558 COST 131624123 The New York Foundling Hospital 590 Avenue of the Americas New York NY 10011 501(c)(3) LAND 2019-01-25 348103 COST 131624123 The New York Foundling Hospital 590 Avenue of the Americas New York NY 10011 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-07-25 17504 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-10-29 27566 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) OFFICE, AUDIOVISUAL, TELEPHONE & OTHER 2018-12-21 4555 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-07-25 552493 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-10-29 381905 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) BUILDING & BUILDING IMPROVEMENTS 2018-12-21 38008 COST 135654532 Adapt UCP 80 Maiden Lane New York NY 10038 501(c)(3) false false false false Schedule N, Part II BANKRUPTCY FOOTNOTE ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS" OR THE "DEBTOR") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF TITLE 11 OF THE UNITED STATES CODE (THE "BANKRUPTCY CODE") IN THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS PROGRAMS TO OTHER SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS FACILITIES TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES IS COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE DISCLOSURE STATEMENT PROVIDES A DETAILED DESCRIPTION OF THE AMOUNTS EXPECTED TO BE REALIZED BY FEGS FROM THE SALE OF ITS REMAINING ASSETS, INCLUDING ITS REAL ESTATE. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. PURSUANT TO AN ORDER ENTERED DECEMBER 19, 2017, THE COURT APPROVED THE DEBTOR'S THIRD AMENDED DISCLOSURE STATEMENT. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER AND OTHER PLEADINGS AND DOCUMENTS FILED WITH THE COURT IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part I, Line 1 organization's mission or most significant activities EMPLOYMENT AND GUIDANCE SERVICE, INC.'s ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") mission was TO HELP EACH PERSON ACHIEVE GREATER PERSONAL AND ECONOMIC INDEPENDENCE AT WORK, AT HOME, AT SCHOOL, AND IN THE COMMUNITY. Since confirmation of FEGS' plan of reorganization, FEGS' activities consists of winding-up its operations. ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS; AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND THE CONFIRMATION ORDER. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. THE PLAN ALSO PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part III, Line 1 Organization's mission IN THE AREAS OF BEHAVIORAL HEALTH, INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT/WORKFORCE, EDUCATION, YOUTH AND FAMILY SERVICES. FEGS ALSO ADMINISTERED COMPLEX RESIDENTIAL AND SUPPORT PROGRAMS FOR THE INTELLECTUALLY AND DEVELOPMENTALLY DISABLED AND A COMPREHENSIVE PORTFOLIO OF BEHAVIORAL TREATMENT AND RESIDENTIAL PROGRAMS FOR THE MENTALLY ILL. AT ITS PEAK, FEGS OPERATED A NETWORK OF OVER 350 PROGRAMS LOCATED THROUGHOUT THE METROPOLITAN NEW YORK AND LONG ISLAND AREAS. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. PURSUANT TO THE CONFIRMATION ORDER, THE COURT AUTHORIZED FEGS TO CONSUMMATE THE PRIVATE SALES OF ITS REMAINING ASSETS TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS WHO TOOK OVER THE OPERATION OF THE DEBTOR'S PROGRAMS. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE BENEFIT OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITORS. PURSUANT TO THE PLAN, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR AND ROBERT N. MICHAELSON WAS APPOINTED THE TRUSTEE FOR THE CREDITOR TRUST. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part IV, Line 32 Sale, exchange, disposal of, or transfer more than 25% of net assets THE TAXPAYER TRANSFERRED, PURSUANT TO COURT ORDER, 25% OR MORE OF ITS NET ASSETS DURING THE TAX YEAR. THE TRANSFERS WERE PRIMARILY TO OTHER EXEMPT ORGANIZATION SERVICE PROVIDERS WHO TOOK OVER THE OPERATION OF THE DEBTOR'S PROGRAMS. AS BACKGROUND, ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR," OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, THE DEBTOR CONTINUED TO OPERATE ITS BUSINESS AND MANAGE ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. SHORTLY PRIOR TO THE PETITION DATE, THE DEBTOR STARTED TRANSFERRING ITS PROGRAMS TO OTHER SERVICE PROVIDERS. BY MAY 31, 2015, THE DEBTOR HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS PURSUANT TO COURT ORDER. THE DEBTOR SUBSEQUENTLY LEASED ITS FACILITIES TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES CAN BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE DISCLOSURE STATEMENT PROVIDES A DETAILED DESCRIPTION OF THE AMOUNTS EXPECTED TO BE REALIZED BY FEGS FROM THE SALE OF ITS REMAINING ASSETS, INCLUDING ITS REAL ESTATE. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part V, Line 2a NUMBER OF INDIVIDUALS EMPLOYED IN CALENDAR YEAR 2017 ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. AS FEGS TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS, FEGS TERMINATED ITS EMPLOYEES, MANY OF WHOM TRANSFERRED EMPLOYMENT TO THE NOT-FOR-PROFIT SERVICE PROVIDERS WHO RECEIVED FEGS' CHARITABLE PURPOSE PROGRAMS. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. PURSUANT TO THE PLAN, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. DURING CALENDAR YEAR 2018, THE TOTAL NUMBER OF INDIVIDUALS EMPLOYED BY FEGS WAS 10. THESE INDIVIDUALS CONTINUED TO PROVIDE SERVICES TO FEGS IN THE WIND-UP OF ITS OPERATIONS UNTIL FEGS COMPLETED THE TRANSFER OF ITS RESIDENTIAL OR PROGRAM PROPERTIES AND COMPLETES ITS TRANSFER OF THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHICH FEGS CONTINUED TO OWN AT END OF THE YEAR. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 15a PROCESS TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL HISTORICALLY, THE COMPENSATION OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC.'S ("FEGS," THE "DEBTOR," OR THE "TAXPAYER") CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, EXECUTIVE MANAGEMENT, AND ALL KEY EMPLOYEES WAS REVIEWED BY THE EXECUTIVE COMPENSATION COMMITTEE OF FEGS' BOARD AND THEN REVIEWED BY THE EXECUTIVE COMMITTEE WHO WAS RESPONSIBLE FOR FINAL APPROVAL OF THE COMPENSATION. THE EXECUTIVE COMMITTEE'S DECISION OF THE FINAL APPROVED COMPENSATION WAS REPORTED TO THE FULL BOARD OF DIRECTORS. IN DETERMINING THE REASONABLENESS OF COMPENSATION FOR THESE EMPLOYEES, THE EXECUTIVE COMPENSATION COMMITTEE AND THE EXECUTIVE COMMITTEE RELIED ON THE INDEPENDENT REVIEW OF COMPENSATION OF COMPARABLE ORGANIZATIONS BY AN INDEPENDENT AND RECOGNIZED COMPENSATION FIRM IN ADDITION TO OTHER RELEVANT ORGANIZATIONAL MATERIALS AND COMPENSATION DATA. THIS PROCESS WAS LAST UNDERTAKEN IN 2014 WHEN FEGS ENGAGED AN INDEPENDENT COMPENSATION FIRM TO PERFORM A COMPENSATION STUDY AND PRIOR TO THE PETITION DATE. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"), CHAPTER 11 CASE NO. 15-71074 (REG). SHORTLY PRIOR TO AND AFTER THE FILING OF ITS VOLUNTARY PETITION FOR CHAPTER 11 RELIEF, FEGS' CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, ITS EXECUTIVE MANAGEMENT AND MANY OF ITS KEY EMPLOYEES RESIGNED OR WERE TERMINATED. PURSUANT TO THE TERMS OF AN EMPLOYMENT AGREEMENT DATED JULY 15, 2015 (THE "AGREEMENT") ONE OF FEGS' FORMER KEY EMPLOYEES WAS PROMOTED TO THE NEWLY CREATED POSITION OF CHIEF WIND-DOWN OFFICER. THE AGREEMENT, INCLUDING THE CHIEF WIND-DOWN OFFICER'S SALARY AND BONUS, WAS NEGOTIATED BETWEEN THAT INDIVIDUAL AND THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS, WAS APPROVED BY FEGS' BOARD, AND WAS REPORTED TO THE BANKRUPTCY COURT. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT APPROVED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN"). PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED AS THE PLAN ADMINISTRATOR. THE PLAN ADMINISTRATOR'S SALARY AND BONUS WAS NEGOTIATED BETWEEN THAT INDIVIDUAL AND THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS AND APPROVED BY THE COURT. Form 990, Part VI, Line 15b PROCESS TO ESTABLISH COMPENSATION OF OTHER EMPLOYEES AS ITS REMAINING EMPLOYEES ASSUME GREATER RESPONSIBILITIES AND INCREASED WORKLOADS THE DEBTOR HAS INCREASED EMPLOYEES' BASE SALARY COMPENSATION. Form 990, Part VI, Line 1a (Also Part I, Lines 3 & 4) Governing Body and Management ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN") WITH THE COURT. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 8a DOCUMENTATION OF MEETINGS HELD ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN") WITH THE COURT. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATIONS OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. THROUGH THE EFFECTIVE DATE (MARCH 1, 2018), THE BOARD OF DIRECTORS MEETINGS AND ALL ACTIONS TAKEN BY THE BOARD AND COMMITTEES WERE CONTEMPORANEOUSLY DOCUMENTED. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 11b Review of form 990 by governing body ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS (THE "HOUSING CORPORATION INTERESTS") WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. FEGS HAS PROVIDED A COMPLETE COPY OF THIS FORM 990 TO THE PLAN ADMINISTRATOR. Form 990, Part VI, Line 12c Conflict of interest policy ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS" OR THE "DEBTOR" OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"), CHAPTER 11 CASE NO. 15-71074 (REG). SUBSEQUENTLY, PURSUANT TO AN ORDER OF THE COURT ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN"). THE CONFIRMATION ORDER PROVIDES IN PERTINENT PART THAT "ON THE EFFECTIVE DATE, THE MEMBERS OF THE DEBTOR'S BOARD OF TRUSTEES SHALL BE DEEMED TO HAVE RESIGNED THEREFROM, AND SHALL BE RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF THE DEBTOR BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR IN ACCORDANCE WITH THE PLAN." SEE CONFIRMATION ORDER, PARA. 12, P. 13 [DOCKET NO. 1050]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED AS THE PLAN ADMINISTRATOR. SEE CONFIRMATION ORDER PARA. 4, P. 10 [DOCKET NO. 1050]. THE "EFFECTIVE DATE" OCCURRED ON MARCH 1, 2018 [DOCKET NO. 1056]. PRIOR TO THE PLAN'S EFFECTIVE DATE, ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES WERE REQUIRED TO REVIEW THE ORGANIZATION'S CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS AND COMPLETE AND SIGN A DISCLOSURE QUESTIONNAIRE REPRESENTING THAT THEY HAVE REVIEWED THE POLICY AND HAVE REPORTED ANY POTENTIAL CONFLICTS THAT MAY EXIST. ANY DISCLOSED CONFLICT WAS REVIEWED BY THE LEGAL COMMITTEE AND EXECUTIVE COMMITTEE OF THE BOARD AND, FOLLOWING THEIR REVIEW OF THE MATTER, THEY EITHER MADE DETERMINATIONS ON THE MATTER, OR REFERRED APPROPRIATE MATTERS TO THE FULL BOARD OF DIRECTORS. DURING THE PERIOD AFTER THE EFFECTIVE DATE, THE PLAN ADMINISTRATOR REVIEWED FEGS' CONFLICT OF INTEREST POLICY AND SIGNED A DISCLOSURE QUESTIONNAIRE STATING THAT SHE HAD REVIEWED THE POLICY AND DID NOT HAVE ANY POTENTIAL CONFLICTS OF INTEREST. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 19 Required documents available to the public GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. SINCE MARCH 18, 2015 (THE "PETITION DATE") AND THROUGH FEBRUARY 28, 2018, THE TAXPAYER HAS FILED WITH THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK ITS MONTHLY OPERATING REPORT ("MOR") WHICH IS ALSO AVAILABLE FOR REVIEW. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT APPROVED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN") [DOCKET NO. 1050]. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SINCE MARCH 1, 2018, THE TAXPAYER HAS FILED ITS OPERATING REPORTS WITH THE COURT ON A QUARTERLY BASIS ("QOR") AND WHICH ARE ALSO AVAILABLE FOR REVIEW. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). THE PLAN, CONFIRMATION ORDER AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE INCLUDING THE MONTHLY AND QUARTERLY OPERATING REPORTS FILED BY FEGS CAN BE REVIEWED AT HTTPS://ECF.NYEB.USCOURTS.GOV/. Form 990, Part IX, Line 22 Depreciation & amortization DEPRECIATION AND AMORTIZATION ARE COMPUTED ON THE STRAIGHT-LINE METHOD OVER THE SHORTER OF THE ESTIMATED USEFUL LIVES OF THE ASSETS OR THE REMAINING TERMS OF THE LEASES, AS APPLICABLE. THE DEBTOR'S POLICY IS TO CONTINUE TO DEPRECIATE AND AMORTIZE ASSETS UNTIL THEY ARE DISPOSED OF OR TAKEN OUT OF SERVICE. Form 990, Part X, Column (B) End of Year Balance Sheet WITH RESPECT TO FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC.'S ("FEGS," THE "DEBTOR," OR THE "TAXPAYER") ASSET BALANCE SHEET ACCOUNTS, CASH AND INVESTMENT ASSET ACCOUNT BALANCES ARE REFLECTED AT FAIR MARKET VALUE, ACCOUNTS RECEIVABLE IS REFLECTED AT ESTIMATED NET REALIZABLE VALUE AND THE OTHER BALANCE SHEET ASSET ACCOUNT BALANCES AT HISTORICAL COST. WITH RESPECT TO ACCOUNTS RECEIVABLE, THE DEBTOR HAS REVIEWED THIS ASSET ACCOUNT AND HAS WRITTEN-OFF RECEIVABLES THAT THE DEBTOR BELIEVES WILL NOT BE COLLECTED. WITH RESPECT TO LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS AND EQUIPMENT, THE DEBTOR COMPLETED THE SALE OF ITS RESIDENTIAL PROPERTIES DURING THE CURRENT TAX YEAR AND ACCORDINGLY THE END OF YEAR BALANCE OF THIS ASSET ACCOUNT IS $0. LIABILITY BALANCE SHEET ACCOUNT BALANCES ARE REFLECTED AT AMOUNTS STATED BY THE DEBTOR AT HISTORICAL COST. UNLESS OTHERWISE NOTED, THE AMOUNTS REFLECTED IN THE LIABILITY ACCOUNTS FOR ACCOUNTS PAYABLE, NOTES PAYABLE AND OTHER LIABILITIES MAY BE UNDERSTATED. IN ADDITION, THE DEBTOR HAS INCURRED AND WILL CONTINUE TO INCUR ADDITIONAL LIABILITIES AS A RESULT OF THE FILING OF THE BANKRUPTCY PETITION AND IN THE WIND-DOWN OF ITS BUSINESS. ALONG THIS LINE, CERTAIN LIABILITIES REFLECTED IN THE DEBTOR'S BALANCE SHEET WILL BE SUBJECT TO ADJUSTMENT THROUGH THE BANKRUPTCY PROCESS. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE DISCLOSURE STATEMENT PROVIDES A DETAILED DESCRIPTION OF THE AMOUNTS EXPECTED TO BE REALIZED BY FEGS FROM THE SALE OF ITS REMAINING ASSETS, INCLUDING ITS REAL ESTATE. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP AND SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. DURING THE CURRENT TAX YEAR AND PURSUANT TO COURT ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND COMPLETED THE SALE OF ITS RESIDENTIAL OR PROGRAM PROPERTIES TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS OR OTHER SIMILAR EXEMPT ORGANIZATIONS APPROVED BY THE COURT. AT END OF YEAR, THE DEBTOR CONTINUED TO OWN THE HOUSING CORPORATION INTERESTS IN THE FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THE DEBTOR CONTINUED TO MARKET FOR SALE THE HOUSING CORPORATION INTERESTS. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part XI, Line 9 Other changes in net assets or fund balances Transfer of Fund Balance - -30587; Form 990, Part XII, Line 3b REASON ORGANIZATION DID NOT UNDERGO REQUIRED AUDIT ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK, CASE NO. 15-71074 (REG). AS A RESULT OF THE BANKRUPTCY FILING, THE TAXPAYER DID NOT UNDERGO AN A133 AUDIT. THAT SAID, SINCE MARCH 18, 2015 THROUGH FEBRUARY 28, 2018, THE TAXPAYER HAS FILED MONTHLY OPERATING REPORTS ("MOR") WITH THE COURT AND FROM MARCH 1, 2018 THROUGH THE CURRENT PERIOD, QUARTERLY OPERATING REPORTS ("QOR") WHICH REFLECT ITS FINANCIAL ACTIVITY. THE TAXPAYER'S MONTHLY OPERATING REPORTS AND QUARTERLY OPERATING REPORTS ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV/. FEGS HOME CARE SERVICES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133896296 Inactive/Dissolution in Process NY 501(c)(3) 10 FEGS true JEWISH CARE SERVICES OF LONG ISLAND INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 112417269 Inactive/Dissolution in Process NY 501(c)(3) 10 FEGS true WAVERLY RESIDENCE INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133948925 SUPPORTIVE HOUSING FOR INDIVIDUALS WITH DD NY 501(c)(3) 10 FEGS true NYSD FORSYTH HDFC INC (184(F0) 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133985586 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true NYSD HDFC INC AKA TANYA TOWERS II (174(F)) 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133581374 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true NYSD ROMBOUTS HDFC INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133807673 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true FEGS PROCARE HEALTH SERVICES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 462472592 Inactive/Dissolution in Process NY 501(c)(3) 10 FEGS true HR DYNAMICS INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133930869 Inactive NY FEGS C Corporation 0 0 1 true ALLSECTOR TECHNOLOGY GROUP INC 2 PARK AVE 2OTH FLOOR NEW YORK NY 10016 134024753 Inactive NY FEGS C Corporation 0 0 0.95 true STAFF RESOURCES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133948926 Inactive NY FEGS C Corporation 0 0 1 true FEGS HOLDING CORP 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 132972009 DORMANT NY FEGS C Corporation 0 0 1 true false false false false false false false false false false false false false false false true false false false NYSD ROMBOUTS HDFC INC P 141118 FMV NYSD HDFC INC AKA TANYA TOWERS II P 298032 FMV