2018-05-14T16:13:12-05:00 2017-06-30 350921680 CROWE HORWATH LLP 488 Madison Avenue Floor 3 New York NY 100225702 990 2016-07-01 131624000 Federation Employment and Guidance Service Inc FEDE 2123668400 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 Judith Pincus Chief Wind-down Officer 2018-05-14 true Bernard W Costich P01873766 2125725500 2016 2021-01-29 14:40:06Z Judith Pincus 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 15915745 false X FEGS.ORG X 1934 NY TO HELP EACH PERSON ACHIEVE GREATER PERSONAL AND ECONOMIC INDEPENDENCE AT WORK, AT HOME, AT SCHOOL, AND IN THE COMMUNITY. 26 26 18 27 0 0 114244 31813 7730276 27418 56588 7061257 -16880571 615704 -8979463 7736192 0 0 6735495 2556510 0 0 14253034 9283452 20988529 11839962 -29967992 -4103770 54203894 45014266 75422493 70354805 -21218599 -25340539 X 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"). (CONTINUED ON SCHEDULE O). false true 8454358 31011 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"). THE DEBTOR CONTINUES TO OPERATE ITS BUSINESS AND MANAGE ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. UNTIL SHORTLY BEFORE THE PETITION DATE, THE DEBTOR PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY IN THE AREAS OF HEALTH, DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT/WORK FORCE, EDUCATION, YOUTH, AND FAMILY SERVICES. AT ITS PEAK, THE DEBTOR'S NETWORK OF PROGRAMS OPERATED AT OVER 350 LOCATIONS THROUGHOUT THE METROPOLITAN NEW YORK AND LONG ISLAND AREAS. 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. DURING THE CURRENT TAX YEAR, THE DEBTOR LEASED ITS FACILITIES TO THOSE CHARITABLE TAX EXEMPT ORGANIZATIONS THAT ACQUIRED THE DEBTOR'S PROGRAMS AND CONTINUED THE PROCESS OF WINDING-DOWN ITS OPERATIONS. THE REVENUE REFLECTED IN PART III (STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS) CONSISTS PRIMARILY OF PROGRAM REVENUE REALIZED FROM THE DEBTOR'S OPERATIONS PRIOR TO THE TRANSFER OF ITS EXEMPT PROGRAMS. THE EXPENSES REFLECTED IN PART III CONSIST OF EXPENSES INCURRED IN THE OPERATION AND ADMINISTRATION OF ITS FACILITIES WHICH ARE BEING LEASED TO THE TAX EXEMPT SUCCESSOR PROGRAM SERVICE PROVIDERS. 8454358 true true false false false false false false false true true false false true true false false false false false false false false false false false false false false true true false false false false false false false false false false false false false false false true true true false false true 21 0 true 18 true false false false false false false false false false false X 26 26 false false false false false false false true true false false false true true true true true false false false NY X MICHAEL KIRSHNER CO FEGS 2123668476 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 ALLEN ALTER PRESIDENT 5.0 X X 0 0 0 STUART OLTCHICK CHAIRMAN 5.0 X X 0 0 0 JAMES W WETZLER TREASURER 2.0 X X 0 0 0 GEORGE ASCH SECRETARY 2.0 X X 0 0 0 LYNN BERGER DIRECTOR 1.0 X 0 0 0 ANDREW R BROWNSTEIN DIRECTOR 1.0 X 0 0 0 ALEX GABAY DIRECTOR 1.0 X 0 0 0 BENJAMIN IRA GERTZ DIRECTOR 1.0 X 0 0 0 H DAVID GOODMAN MD DIRECTOR 1.0 X 0 0 0 BARRY M GOSIN DIRECTOR 1.0 X 0 0 0 ALLEN GREENBERG DIRECTOR 1.0 X 0 0 0 RICHARD D ISSERMAN DIRECTOR 2.0 X 0 0 0 BRIAN A KANE DIRECTOR 1.0 X 0 0 0 DEBORAH S LARKIN DIRECTOR UNTIL JULY 29, 2016 1.0 X 0 0 0 ROBERT O LEHRMAN DIRECTOR 1.0 X 0 0 0 M JOSEPH LEVIN DIRECTOR 1.0 X 0 0 0 HOWARD M LIEBMAN DIRECTOR 2.0 X 0 0 0 NANCY LOCKER DIRECTOR 1.0 X 0 0 0 MICHAEL S PRESTON DIRECTOR 2.0 X 0 0 0 PATRICIA B SILVERSTEIN DIRECTOR 2.0 X 0 0 0 JOSEPH STEIN JR DIRECTOR 2.0 X 0 0 0 BURTON M STRAUSS JR DIRECTOR 2.0 X 0 0 0 TARA WALPERT LEVY DIRECTOR 1.0 X 0 0 0 DAVID E WOLKOFF DIRECTOR 1.0 X 0 0 0 THOMAS A BLUMBERG DIRECTOR 2.0 X 0 0 0 MARTIN I BRESLER DIRECTOR 2.0 X 0 0 0 EDWARD A BRILL DIRECTOR 1.0 X 0 0 0 JUDITH PINCUS CHIEF WIND-DOWN OFFICER-ADMIN 35.0 X 268915 0 1553 MICHAEL H KIRSHNER CONTROLLER / VICE PRESIDENT 35.0 X 233451 0 34161 BRADLEY E CHASE Administrative Manager 35.0 X 129944 0 17116 Kathy Moy Hardware/Software Senior Specialist 35.0 0.0 X 143576 0 27130 Andrew Slutsky Director, Sr./HR 35.0 X 114174 0 26574 890060 0 106534 5 true true true GARFUNKEL WILD PC 111 Great Neck Rd Great Neck NY 11021 BANKRUPTCY PROF. FEES 1003179 CROWE HORWATH LLP 488 Madison Ave 1200 New York NY 10022 BANKRUPTCY PROF. FEES 855182 PACHULSKI STANG ZIEHL & JONES 919 N Market St 1700 Wilmington DE 19801 BANKRUPTCY PROF. FEES 548357 SEYFARTH SHAW LLP 620 Eighth Avenue New York NY 10018 BANKRUPTCY PROF. FEES 361604 ALVEREZ & MARSAL 600 Madison Avenue 8th Floor New York NY 10022 BANKRUPTCY PROF. FEES 229259 6 31813 31813 PROGRAM SERVICE REVENUE 900099 27418 27418 0 0 0 0 27418 15089 15089 1911319 1299208 612111 0 612111 612111 13926513 6880345 0 7046168 7046168 7046168 Medical Record Fees & Other 900099 3593 3593 0 0 0 0 3593 7736192 31011 0 7673368 493384 419376 74008 1589447 1351030 238417 151706 150299 1407 321973 273677 48296 2057381 2057381 818449 818449 372484 224838 147646 0 2126 2126 1891 1891 828193 828193 274676 274676 1288125 1288125 329070 329070 Record Storage & Retrieval 100825 100825 Records Custodian 109182 109182 Bad Debt Expense 3047854 3047854 Trustee Fees 20875 20875 32321 32321 0 0 11839962 8454358 3385604 0 18387442 22849544 9319436 4507602 0 0 0 4468488 4649418 34514500 25754104 16928866 8760396 1840631 1839073 18170 0 3240861 2408233 54203894 45014266 31060600 29283209 13704486 13464486 6934780 6776574 23722627 20830536 75422493 70354805 X -30759816 -34884784 7572781 7575809 1968436 1968436 -21218599 -25340539 54203894 45014266 -4103770 -18170 0 X false false false X 106837451 102733184 63290253 114244 31813 273006945 0 0 106837451 102733184 63290253 114244 31813 273006945 0 273006945 1491260 1193717 240401 3504468 1926408 8356254 27050 27050 838680 2027768 0 53125 3593 2923166 284313415 353054706 0.9602 0.9710 X Schedule A, Part II, Line 10 Other Income DESCRIPTION - INSURANCE PROCEEDS - HURRICANE SANDY, COLUMN A - 838680.0, COLUMN B - 2027768.0, COLUMN C - , COLUMN D - , COLUMN E - , COLUMN F - 2866448.0; DESCRIPTION - OTHER INCOME, COLUMN A - , COLUMN B - , COLUMN C - , COLUMN D - 53125.0, COLUMN E - 3593.0, COLUMN F - 56718.0; RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 2094583 0 0 0 0 0 2094583 1968436 0 263938 0 137791 0 2094583 1685936 282500 25640 0 25640 0 1968436 0.0 0.94 0.06 false false 1512103 1512103 31078989 24314888 6764101 265152 248024 17128 1658256 1191192 467064 8760396 OTHER ASSETS 2408233 2408233 ACCRUED SALARIES AND VACATION PAYABLE 4026462 ALLOWANCE FOR THIRD PARTY ADJUSTMENTS CONSTRUCTION ADVANCES 2509909 CONTRACT ADVANCES 12199321 LIABILITY FOR DEFERRED COMPENSATION 2094844 20830536 Schedule D, Part VI Fixed Assets WITH RESPECT TO FEGS' 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 SUCH AS LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS AND EQUIPMENT, 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 ADJUSTED ITS BALANCE SHEET ACCOUNTS TO REFLECT THE DISPOSITION OF THOSE ASSETS BY THE DEBTOR WHICH OCCURRED DURING THE CURRENT TAX YEAR. AS PREVIOUSLY STATED, THE DEBTOR TRANSFERRED ITS EXEMPT PURPOSE PROGRAMS TO OTHER EXEMPT CHARITABLE ORGANIZATIONS ON OR PRIOR TO MAY 31, 2015. THE DEBTOR IS IN THE PROCESS OF SELLING AND TRANSFERRING ITS REMAINING REAL ESTATE INTERESTS (BUILDINGS AND LEASEHOLD INTERESTS) TO THOSE EXEMPT PURPOSE ORGANIZATIONS, OR SUCH OTHER ENTITIES, AS MAY BE APPROVED BY COURT ORDER. 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 WHICH CONTINUE TO HOUSE MANY OF ITS FORMER CLIENTS, WHO RECEIVED TREATMENT AND CARE FROM FEGS (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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER 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 FEGS AT HISTORICAL COST. THAT SAID, THE AMOUNTS REFLECTED BY FEGS IN ITS LIABILITY ACCOUNTS FOR ACCOUNTS PAYABLE, BONDS AND 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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER 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 PURSUANT TO COURT ORDER, TO EITHER DISTRIBUTE THE FUNDS TO FEGS OR TRANSFER THE FUNDS TO OTHER CHARITABLE ORGANIZATIONS THAT HAVE A SIMILAR CHARITABLE MISSION. X X X X X false false false false false false false true false JUDITH PINCUS CHIEF WIND-DOWN OFFICER-ADMIN 250228 0 17500 0 1187 0 1345 0 208 0 270468 0 0 0 MICHAEL H KIRSHNER CONTROLLER / VICE PRESIDENT 214463 0 17938 0 1050 0 7848 0 26313 0 267612 0 0 0 Kathy Moy Hardware/Software Senior Specialist 143576 0 0 0 0 0 0 0 27130 0 170706 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. Schedule J, Part I, Line 7 Non-fixed payments The Controller received a key employee retention payment. A DORMITORY AUTHORITY OF THE STATE OF NEW YORK 146000293 649905T55 2010-06-30 786587 ACQUISITION, CONSTRUCTION & EQUIPPING OF FACILITY false false true B NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 649438GK8 2008-01-30 2820000 ACQUISITION, CONSTRUCTION & EQUIPPING OF FACILITY false false true C SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT AGENCY 112584714 864768SE7 2008-01-30 1610000 ACQUISITION, CONSTRUCTION & EQUIPPING OF FACILITY false false true D DORMITORY AUTHORITY OF THE STATE OF NEW YORK 146000293 649906TX2 2012-03-29 1848795 ACQUISITION, CONSTRUCTION & EQUIPPING OF FACILITY false false true A 330000 786587 29537 15732 666321 2010 false false true true B 1215000 2820000 212054 56400 2551546 2007 false false true true C 940000 1610000 121066 32200 1456734 2007 false false true true D 625000 1848795 113971 36976 1697848 2012 false false true true A false false false false 0.0 false false false B false false false false 0.0 false false false C false false false false 0.0 false false false D false false false false 0.0 false false false A false true false false false false false B false true false false false false false C false true false false false false false D false true false false false false false A false B false C false D false Schedule K, Part II, Line 4 Federation Employment and Guidance Service, Inc.'s ("FEGS" or the "Debtor") mission has been to serve New York City and Long Island residents with developmental disabilities as a 501(c)(3) voluntary provider. The Debtor's tax-exempt financed facilities are used solely as residential homes for individuals with developmental disabilities. FEGS' MISSION HAS BEEN TO SERVE NEW YORK CITY AND LONG ISLAND RESIDENTS WITH DEVELOPMENTAL DISABILITIES AS A 501(C)(3) VOLUNTARY PROVIDER. THE DEBTOR'S TAX-EXEMPT FINANCED FACILITIES ARE USED SOLELY AS RESIDENTIAL HOMES FOR INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES. Schedule K, Part IV, Line 2c Part I BONDS B & C ARBITRAGE REBATE REPORT WAS COMPLETED 4/25/2013 WITH RESULTS THAT NO REBATE WAS DUE. FEGS HAS CONTRACTED TO HAVE ARBITRAGE REBATE REPORTS COMPLETED AS REQUIRED BY SECTION 148 THROUGH IAC AND MCM FOR IDA SERIES 2008 A&B. Schedule K, Part IV, Line 2c Part I BOND A Arbitrage Rebate REPORT COMPLETED BY DASNY, DATE UNAVAILABLE, NO REBATE DUE. Schedule K, Part VI SUPPLEMENTAL INFORMATION 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"). SINCE THE PETITION DATE, FEGS HAS CONTINUED TO OPERATE ITS BUSINESS AND MANAGE 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 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 WHICH CONTINUE TO HOUSE MANY OF ITS FORMER CLIENTS, WHO RECEIVED TREATMENT AND CARE FROM FEGS (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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Schedule K, Part IV, Line 2c Part I Cont'd BONDS A&B Arbitrage Rebate Report reports completed by DASNY, dates unavailable, no rebates due. A DORMITORY AUTHORITY OF THE STATE OF NEW YORK 146000293 64983MEV6 2007-04-24 6095200 ACQUISITION, CONSTRUCTION & EQUIPPING OF FACILITY false false true A 1218569 6095200 25148 6070052 2007 false false true true A false false false false 0.0 false false false A false true false false false false false A false Form 990, Part III, Line 1 Organization's mission THE DEBTOR CONTINUES TO OPERATE AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY IN THE AREAS OF HEALTH, DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT/WORK FORCE, EDUCATION, YOUTH AND FAMILY SERVICES. AT ITS PEAK, FEGS OPERATED A NETWORK OF PROGRAMS AT OVER 350 LOCATIONS THROUGHOUT THE METROPOLITAN NEW YORK AND LONG ISLAND AREAS. 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, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS. 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. DURING THE CURRENT TAX YEAR, THE DEBTOR LEASED ITS FACILITIES TO THOSE CHARITABLE TAX EXEMPT ORGANIZATIONS THAT ACQUIRED THE DEBTOR'S PROGRAMS AND CONTINUED THE PROCESS OF WINDING-DOWN ITS OPERATIONS. Form 990, Part III, Line 3 Significant changes in program services 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"). 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 ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS. PURSUANT TO COURT ORDER, THE DEBTOR IS SUBSEQUENTLY LEASING ITS FACILITIES TO THE ACQUIRING SERVICE PROVIDERS, WHO ALSO QUALIFY AS CHARITABLE EXEMPT ORGANIZATIONS, UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES IS COMPLETED. THE SALE OR ASSIGNMENT OF FEGS' FACILITIES IS SUBJECT TO COURT APPROVAL. DURING THE CURRENT TAX YEAR, THE DEBTOR LEASED ITS FACILITIES TO THOSE CHARITABLE TAX EXEMPT ORGANIZATIONS THAT ACQUIRED THE DEBTOR'S PROGRAMS AND CONTINUED THE PROCESS OF WINDING-DOWN ITS OPERATIONS. 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 WHICH CONTINUE TO HOUSE MANY OF ITS FORMER CLIENTS, WHO RECEIVED TREATMENT AND CARE FROM FEGS (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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part IV, Line 31 Liquidate, Terminate, Dissolve or Cease 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"). THE DEBTOR CONTINUES 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 IS SUBSEQUENTLY LEASING ITS FACILITIES TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES CAN BE COMPLETED AND APPROVED BY THE COURT. DURING THE RETURN TAX YEAR, THE DEBTOR LEASED ITS FACILITIES TO THOSE CHARITABLE TAX EXEMPT ORGANIZATIONS THAT ACQUIRED THE DEBTOR'S PROGRAMS AND CONTINUED THE PROCESS OF WINDING-DOWN ITS OPERATIONS. THE DEBTOR DID NOT LIQUIDATE, DISSOLVE OR CEASE OPERATIONS DURING THE RETURN TAX YEAR. 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 WHICH CONTINUE TO HOUSE MANY OF ITS FORMER CLIENTS, WHO RECEIVED TREATMENT AND CARE FROM FEGS (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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER 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 IS RESPONSIBLE FOR FINAL APPROVAL OF THE COMPENSATION. THE EXECUTIVE COMMITTEE'S DECISION OF THE FINAL APPROVED COMPENSATION IS 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. 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 AND WAS APPROVED BY FEGS' BOARD. 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 11b Review of form 990 by governing body 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. SEE NOTICE OF (I) OCCURRENCE OF EFFECTIVE DATE OF PLAN; (II) SUPPLEMENTAL ADMINISTRATIVE CLAIMS BAR DATE; (III) PROFESSIONAL FEE CLAIMS BAR DATE; AND (IV) BAR DATE FOR PROOFS OF CLAIM RELATING TO EXECUTORY CONTRACTS REJECTED PURSUANT TO THE PLAN [DOCKET NO. 1056]. PRIOR TO THE FILING OF THIS FORM 990, THE PLAN ADMINISTRATOR REVIEWED THE FORM 990 WITH THE PREPARER AND AFTER SUCH REVIEW SIGNED AND FILED THE RETURN. Form 990, Part VI, Line 12c Conflict of interest policy TO MONITOR AND ENFORCE THE CONFLICT OF INTEREST POLICY, ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE 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 IS REVIEWED BY THE LEGAL COMMITTEE AND EXECUTIVE COMMITTEE OF THE BOARD AND, FOLLOWING THEIR REVIEW OF THE MATTER, THEY MAY MAKE DETERMINATIONS ON THE MATTER, OR REFER APPROPRIATE MATTERS TO THE FULL BOARD OF DIRECTORS. 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"), 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. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). THE TAXPAYER'S MOR 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 IX, Line 11g OTHER FEES FOR SERVICES DEBTOR'S CONSULTANTS - (C) MANAGEMENT AND GENERAL EXPENSES -$ 55,468 CREDITOR'S COMMITTEE'S CONSULTANTS- (C) MANAGEMENT AND GENERAL EXPENSES - $ 83,902 TEMPORARY HELP (B) PROGRAM SERVICE EXPENSES - $ 224,838 OTHER CONSULTANTS (C) MANAGEMENT AND GENERAL EXPENSES - $ 8,276 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 SUCH AS LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS AND EQUIPMENT, 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 HAS ADJUSTED ITS BALANCE SHEET ACCOUNTS TO REFLECT THE DISPOSITION OF THOSE ASSETS BY THE DEBTOR WHICH OCCURRED DURING THE CURRENT TAX YEAR. UNLESS OTHERWISE NOTED, THE AMOUNTS REFLECTED FOR LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS, EQUIPMENT AND OTHER ASSETS MAY BE OVERSTATED AND DO NOT NECESSARILY REFLECT WHAT MIGHT BE REALIZED FROM THE SALE OR OTHER DISPOSITION OF THAT ASSET CLASS OR WHAT IS ACTUALLY COLLECTIBLE. 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, BONDS AND 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 WHICH CONTINUE TO HOUSE MANY OF ITS FORMER CLIENTS, WHO RECEIVED TREATMENT AND CARE FROM FEGS (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. FEGS THRICE SUBSEQUENTLY AMENDED THE DISCLOSURE STATEMENT AND PLAN WITH SUCH AMENDED DISCLOSURE STATEMENTS AND PLANS BEING FILED WITH THE COURT ON NOVEMBER 14, 2017, NOVEMBER 29, 2017, AND DECEMBER 19, 2017, RESPECTIVELY. 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 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 TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part XII, Line 3b REASON ORGANIZATION DID NOT UNDERGO REQUIRED AUDIT ON MARCH 18, 2015 (THE "PETITION DATE"), 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, THE TAXPAYER HAS FILED MONTHLY OPERATING REPORTS ("MOR") WITH THE COURT WHICH REFLECT ITS FINANCIAL ACTIVITY. THE TAXPAYER'S MONTHLY OPERATING REPORTS ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV/ FEGS HOME ATTENDANT SERVICES INC 424 EAST 147TH STREET BRONX NY 10455 133161675 HOME CARE SERVICES TO ELDERLY OR DISABLED INDIVIDUALS NY 501(c)(3) 9 FEGS true FEGS HOME CARE SERVICES INC 424 EAST 147TH STREET BRONX NY 10455 133896296 HOME CARE SERVICES TO ELDERLY OR DISABLED INDIVIDUALS NY 501(c)(3) 9 FEGS true JEWISH CARE SERVICES OF LONG ISLAND INC 424 EAST 147TH STREET BRONX NY 10455 112417269 HOMEMAKER SERVICES FOR SINGLE PARENT FAMILIES NY 501(c)(3) 9 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) 9 FEGS true TANYA TOWERS INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133098744 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 9 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) 9 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) 9 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) 9 FEGS true FEGS PROCARE HEALTH SERVICES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 462472592 MEDICAL CLINIC SERVICES NY 501(c)(3) 9 FEGS true HR DYNAMICS INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133930869 A HUMAN RESOURCE COMPANY (Dormant) NY FEGS C Corporation 0 0 1 true ALLSECTOR TECHNOLOGY GROUP INC 2 PARK AVE 2OTH FLOOR NEW YORK NY 10016 134024753 A FULL SERVICE IT CONSULTING AND SYSTEM INTEGRATION COMPANY (Dormant) NY FEGS C Corporation 0 0 0.95 true STAFF RESOURCES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133948926 A STAFFING RESOURCE COMPANY (DORMANT) 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 true false false false false false false false false false false false true false false false true false false FEGS HOME ATTENDANT SERVICES INC Q 77031 BASED ON ACTUAL CHARGES