2014-02-14T14:43:28-06:00 2013-06-30 KPMG LLP 191 West Nationwide Blvd Ste 500 Columbus OH 432152568 990 2012-07-01 201255734 JobsOhio Beverage System % KEVIN A GIANGOLA SECRETARY JOBS 6142246446 41 South High Street Suite 1500 Columbus OH 432156104 John Minor 6142246446 2014-02-10 true 6142492300 2012 2015-11-30 17:44:51Z John Minor 41 South High St Suite 1500 Columbus OH 432156104 363507446 false X N/A X 2004 OH To lessen the burdens of government of the state of Ohio by carrying on job creation activities, providing grants to JobsOhio and carrying out the functions of Chapter 4313, Ohio Revised Code. 5 3 4 3 0 11318539 3098756 0 0 875 12949 0 153694670 11319414 156806375 7265750 187258351 0 0 712570 357647 0 0 0 1486134 99989523 9464454 287605521 1854960 -130799146 3181005 1508750612 1061328 1637430081 2119677 -128679469 X To lessen the burdens of government of the state of Ohio by carrying on job creation activities, providing grants to JobsOhio, and carrying out the functions of Chapter 4313, Ohio Revised Code. true true 65878929 153694670 Operation of spirituous liquor franchise to lessen the burdens of government. 187258351 187258351 Restrictive Grants JobsOhio: Restrictive grants to JobsOhio to support JobsOhio's economic development activities. 2500147 Advertising and Promotion: Provide professional sales and marketing services to the Ohio Department of Development (now the Ohio Development Services Agency) in support of its economic development activities. 255637427 true true false false false false false false false false false false false false true false true false false false false false false false false false false true false true true true false true false false false false false false false false false false false false true false true false true 10 0 true 4 true false false false false false false false false false false X 5 3 true false true false true true false true false true false true true true true false false false false false X X KEVIN A GIANGOLA SECRETARY 6142246446 TREASURER 41 S HIGH ST Columbus OH 43215 John Minor 1.0 40.0 X X 0 223109 8108 James A Boland 1.0 1.0 X X 0 0 0 Kevin A Giangola 1.0 40.0 X X 0 121607 3646 Betty Montgomery 1.0 X 0 0 0 David Wilhelm 1.0 X 0 0 0 Mark Kvamme 1.0 40.0 X X 0 0 0 Kristi Tanner 1.0 40.0 X X 0 166270 433 Joe Hamrock 1.0 X 0 0 0 Edward Burghard 1.0 X 23041 0 0 Marlon J Cheatham 40.0 X 136955 0 37632 Kristina K Clouse 40.0 X 112743 0 25167 Matthew J Cybulski 40.0 X 106028 0 5665 Nathan Green 40.0 X 117520 0 0 496287 510986 80651 4 false true false Fechtor Advertising 145 North High Street Ste 500 COLUMBUS OH 43215 Advertising 1378281 Blue City Studios 1665 Saunders WOOSTER OH 44691 Software 206538 Wired Campaigns LLC 449 Easton Way 2nd Fl COLUMBUS OH 43219 Advertise/Promotion 104979 Salesforcecom PO Box 203141 DALLAS TX 75320 Software 158889 4 2828756 270000 3098756 0 12949 12949 0 0 0 0 0 0 0 0 360395741 206701071 153694670 153694670 0 156806375 153694670 12949 X 187258351 187258351 0 0 0 0 0 268990 268990 36023 36023 33133 33133 19501 19501 165748 165748 62485 62485 705012 705012 0 0 0 496009 493474 2535 1361587 1361587 32907 32907 311093 290952 20141 0 0 0 0 5000 5000 23782695 23782695 0 23288712 22998734 289978 91603 91603 COMMISSION EXPENSE 19573325 19573325 LIQUOR GALLONAGE TAX 16681574 16681574 VOLUNTARY GRANT REPAYMENT 6961261 6961261 SERVICE FEES 6351300 6351300 119212 8132 111080 287605521 255637427 31968094 0 2834091 32847595 0 53901191 304362 0 21105 415078 0 0 0 0 0 0 0 50659701 21447 3508307 0 0 0 0 0 0 0 0 1367418740 0 0 3181005 1508750612 130976 42885068 0 0 930352 0 0 471599462 0 0 0 0 0 1122531589 0 0 0 413962 1061328 1637430081 X 2119677 -128679469 0 0 0 0 2119677 -128679469 3181005 1508750612 -130799146 X false true X false false X 3454233 2917349 3171655 11318539 3098756 23960532 360395741 360395741 0 0 0 3454233 2917349 3171655 11318539 363494497 384356273 0 0 0 384356273 15296 2 875 12949 29122 0 15296 2 875 12949 29122 0 0 3469529 2917349 3171657 11319414 363507446 384385395 0.99992 0.00000 0.00008 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 DUE TO JOBSOHIO 413962 413962 360395741 360395741 -203589366 -203589366 156806375 491194887 203589366 203589366 287605521 287605521 Part XI, Line 4b Reported in Nonoperating revenues (expenses) net in audited financial statements: Government Grants 2,828,756 Other Contributions 270,000 Other Investment Income 12,949 Reported as Cost of Sale in audited financial statements (206,701,071) ----------- Total (203,589,366) =========== Part XII, Line 2d Reported in Nonoperating revenues (expenses) net in audited financial statements: Government Grants (2,828,756) Other Contributions (270,000) Other Investment Income (12,949) Reported as Cost of Sale in audited financial statements 206,701,071 ----------- Total 203,589,366 =========== true JobsOhio 41 South High Street Suite 1500 Columbus OH 43215 452798687 501(c)(4) 187178930 Cash Economic Development Ohio Economic Development Association 17 South High Street Columbus OH 43215 202105810 501(c)(6) 79421 cash Economic Development 2 SCHEDULE I, PART I, LINE 2 GRANTS ISSUED BY JOBS DURING THE TAX YEAR WERE ISSUED TO JOBSOHIO AND RESTRICTED TO USE FOR THE LAWFUL PURPOSES FOR WHICH JOBSOHIO WAS ESTABLISHED: PROMOTION OF ECONOMIC DEVELOPMENT, JOB CREATION, JOB RETENTION, JOB TRAINING, AND THE RECRUITMENT OF BUSINESS TO THE STATE OF OHIO. TWO OF THE THREE MEMBERS OF THE JOBS BOARD OF DIRECTORS ARE OFFICERS OF JOBSOHIO AND ARE IN A POSITION TO CONSTANTLY MONITOR THE USE OF GRANT FUNDS BY JOBSOHIO. IN ADDITION, ACCOUNTING STAFF PERFORMING WORK ON BEHALF OF JOBS WORK WITH JOBSOHIO ACCOUNTING STAFF AND ARE IN A POSITION TO CONTINUALLY EVALUATE COMPLIANCE BY JOBSOHIO WITH THE RESTRICTIONS APPLICABLE TO THE GRANTS AT ISSUE. false false false false false false false false false John Minor 0 223109 0 0 0 0 0 0 0 8171 0 231280 0 0 Marlon J Cheatham 136955 0 0 0 0 0 0 0 37700 0 174655 0 0 0 Kristi Tanner 0 166270 0 0 0 0 0 0 0 466 0 166736 0 0 A JobsOhio Beverage System on behalf of Ohio 201255734 47770VAK6 2013-02-01 464453357 Economic Development false true false A 0 0 464453357 0 0 163462028 1530754 0 0 11542929 0 241808 2017 true true false true A false false false false 1.00000 1.00000 false false false true A false true false false 0 false 0 true true A true Jobs Ohio Beverage System, on behalf of the State of Ohio Part II Line 3 The proceeds of the bonds are financing numerous projects, the last of which is expected to be completed by June 30, 2017. Form 990, Part III, Lines 2 and 3 JobsOhio Beverage System (JOBS) underwent a fundamental change in its business model in 2013. On February 1, 2013, JOBS entered into a Franchise and Transfer Agreement (Transfer Agreement) with JobsOhio, the Ohio Department of Commerce, Division of Liquor Control, and the Ohio Office of Budget and Management, under which JOBS purchased from the State a 25-year exclusive franchise for the sale of spirituous liquor throughout the state of Ohio. Pursuant to the Transfer Agreement, JOBS receives all gross revenue from the distribution, merchandising, and sale of spirituous liquor in the state of Ohio. In addition, certain assets of the existing State liquor enterprise were transferred to JOBS. Under the terms of the Transfer Agreement, the State retained certain statutory, merchandising, and regulatory functions with respect to the sale of spirituous liquor. In return, JOBS paid to the State total consideration of approximately $1,415,000,000 and committed to deferred payments to the State based upon profits from the sale of spirituous liquor by JOBS. JOBS also contemporaneously contracted with the Ohio Department of Commerce for the continued operation and management of the liquor enterprise under an Operations Services Agreement (Services Agreement). To finance the franchise purchase, JOBS issued $1,510,685,000 of special obligation revenue bonds on February 1,2013. Form 990, Part VI, Line 2 Mark Kvamme , a Director and Chairman of the Board of JOBS, and Kristi Tanner, a Director and Secretary/Treasurer of JOBS, were simultaneously employed by JobsOhio, Mr. Kvamme as a Director, President and Chief Investment Officer and Ms. Tanner as a Managing Director, a key employee. John Minor, a Director and Executive Director of JOBS, and Kevin Giangola, a Director and Secretary/Treasurer of JOBS, were simultaneously employed by JobsOhio, Mr. Minor as Director, President and Chief Investment Officer, and Mr. Giangola as Chief Financial Officer. Form 990, Part VI, Line 4 Amendments to the Articles of Incorporation of the JobsOhio Beverage System (then known as the Ohio Business Development Coalition), were filed with the Ohio Secretary of State on January 11, 2013. These amendments effected the following changes to the Articles of Incorporation: Article III, Purposes, was amended to limit the activities of the Corporation to specified purposes, primarily comprised of accepting the transfer of an enterprise acquisition project, operating the project as specified in the amended Article, expending the proceeds of the financing of the project, and making grants to JobsOhio. Article VI, Board of Directors, added to the Articles provisions addressing: Authority of the Board; Number, election, and removal of directors; Conflicts of interest; Required votes; Independent directors; and Separateness of the Corporation. Article VII, Private Foundation Provisions, added to the Articles provisions to apply in the event the Corporation is ever classified as a private foundation under Section 509(a) of the Code. Article VIII, Dissolution, amends existing dissolution provisions by addressing with greater specificity the circumstances under which dissolution of the Corporation might occur, procedures upon dissolution, and distribution of assets. Article IX, Miscellaneous, adds to the Articles specifications as to the effective date of amendments and the authority of the member to amend the Articles. Form 990, Part VI, Lines 6 and 7a As specified in the Articles of Incorporation, JOBS is a membership organization. The sole member of the corporation is JobsOhio, a non-profit corporation formed under Chapters 1702 and 187 of the Ohio Revised Code. JobsOhio is a 501(c)(4) organization formed to promote economic development, job creation, job retention, job training, and the recruitment of business to the state of Ohio. Form 990, Part VI, Line 9 Mark Kvamme 448 West Nationwide Boulevard Columbus, OH 43215 Joe Hamrock 801 East 86th Avenue Merrillville, IN 46410 Edward Burghard 6669 Miami Woods Dr. Loveland, OH 45140 David Wilhelm 0 East Circle Drive, Suite 143 Athens, OH 45701 Form 990, Part VI, Line 11b THE FORM 990 IS SUBMITTED TO THE SECRETARY AND TREASURER FOR REVIEW. SUBSEQUENT TO HIS APPROVAL, IT IS SUBMITTED TO THE EXECUTIVE DIRECTOR FOR REVIEW AND APPROVAL. COPIES OF THE FORM 990 ARE PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW PRIOR TO FILING THE RETURN. ADDITIONALLY, JOBSOHIO EMPLOYS KPMG TO REVIEW THE RETURN AND PROVIDE GUIDANCE IN IDENTIFYING ERRORS IN THE RETURN SUBMISSION AND FEEDBACK ON QUANTITATIVE AND QUALITATIVE RESPONSES. Form 990, Part VI, Line 12c ANNUAL DISCLOSURE: ANNUALLY, EACH DIRECTOR, PRINCIPAL OFFICER, AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY; HAS READ AND UNDERSTANDS THE POLICY; HAS AGREED TO COMPLY WITH THE POLICY; AND, UNDERSTANDS THAT THE CORPORATION IS A TAX-EXEMPT ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. PERIODIC REVIEWS: TO ENSURE THAT THE CORPORATION OPERATES IN A MANNER CONSISTENT WITH ITS NONPROFIT PURPOSES AND THAT IT DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS STATUS AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX, PERIODIC REVIEWS SHALL BE CONDUCTED. THE PERIODIC REVIEWS SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: 1.WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE AND ARE THE RESULT OF ARM'S LENGTH BARGAINING. 2.WHETHER PARTNERSHIP AND JOINT VENTURE ARRANGEMENTS OF THE CORPORATION CONFORM TO WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE PAYMENTS FOR GOODS AND SERVICES, FURTHER THE CORPORATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT. 3.WHETHER AGREEMENTS WITH VENDORS, SERVICE PROVIDERS AND OTHER THIRD PARTIES FURTHER THE CORPORATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT. DUTY TO DISCLOSE: IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF HIS OR HER FINANCIAL INTEREST AND MUST BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS: AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE SHALL LEAVE THE BOARD OR COMMITTEE MEETINGS WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. IF NO CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON MAY PARTICIPATE IN A DISCUSSION OF AND VOTE ON THE TRANSACTION OR ARRANGEMENT IN QUESTION. IF A CONFLICT OF INTEREST DOES EXIST, THE PROCEDURES DETAILED BELOW SHALL BE FOLLOWED. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST: 1.AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. 2.THE CHAIRMAN OF THE BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. 3.AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER THE CORPORATION CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. 4.IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE CORPORATION'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE CORPORATION AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. Form 990, Part VI, Line 19 THE CORPORATION'S ARTICLES OF INCORPORATION ARE FILED WITH THE OFFICE OF THE OHIO SECRETARY OF STATE AND ARE A MATTER OF PUBLIC RECORD AVAILABLE ONLINE. THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. Form 990, Part IX, Line 24c Payments received from the State after July 5, 2011 include $6,961,000 net of deferred revenues, in grants and support for marketing and economic development. As of June 30, JOBS voluntarily returned to the State all support and grant funds provided by the State since July 5, 2011, the day on which JobsOhio was incorporated. The total amount returned to the State was $7,200,000. Form 990, Part IX, Line 11c Part IX, Line 11c, Accounting, comprises expenses incurred for accounting services; auditing; and payments to a public accounting firm for technical assistance and consulting services in the development and implementation of an accounting system to support accounting and financial reporting functions of the liquor enterprise by JobsOhio Beverage System. JobsOhio 41 S High Street Suite 1500 Columbus OH 432156104 452798687 Econ Develop OH 501(c)(4) false false true false false false false false false false false true false true true true false false false false JobsOhio b 187178930 cash JobsOhio k 80578 cost JobsOhio m 578645 cash