2013-06-25T11:32:58-05:00 2012-06-30 113266576 GRASSI & CO CPA'S PC 50 JERICHO QUADRANGLE JERICHO NY 11753 990 2011-07-01 112030172 YOUNG ADULT INSTITUTE INC YOUN 2125637474 460 WEST 34TH STREET NEW YORK NY 10001 STEPHEN E FREEMAN 2125637474 2013-06-24 1 DAVID ROTTKAMP P01303468 5162563500 2011 2016-02-25 16:41:14Z X STEPHEN E FREEMAN 460 WEST 34TH STREET NEW YORK NY 10001 183362902 0 X WWW.YAI.ORG X 1957 NY "THE MISSION OF OUR ORGANIZATION IS TO HELP INDIVIDUALS WITH A VARIETY OF DISABILITIES ACHIEVE THE MOST INDEPENDENT AND PRODUCTIVE LIFE POSSIBLE.TO ACHIEVE THIS AIM, WE OFFER SERVICES COVERING THE ENTIRE LIFE SPAN AND EMPLOY A DIVERSE RANGE OF THERAPISTS, TEACHERS, CAREGIVERS, JOB COACHES, HEALTH CARE PROFESSIONALS, ADMINISTRATORS AND EXPERT PROVIDERS.OUR PROGRAM, RESIDENCES, AND CLINICS ARE DESIGNED AND OPERATED TO MEET THE NEEDS OF THE PEOPLE WE SERVE IN THE MOST RESPONSIVE, ACCOUNTABLE AND EFFECTIVE MANNER POSSIBLE.WHILE WE STRIVE CONSTANTLY TO IMPROVE AND EVOLVE OUR OFFERINGS AND OUR ORGANIZATION, OUR FOCUS ON THIS CORE MISSION IS UNWAVERING." 19 19 3429 0 0 0 3991593 3011580 197360203 179808323 70951 83038 -368183 -278217 201054564 182624724 0 0 0 0 119109161 116771301 0 0 1356417 75975233 63659719 195084394 180431020 5970170 2193704 115172335 117853044 103582756 104069761 11589579 13783283 X SEE SCHEDULE 0 0 0 68970451 79320132 CLINICAL PROGRAMS - PROVIDE PROGRAMS THAT AID IN THE DEVELOPMENT OF FUNDAMENTAL SKILLS IN COMMUNICATION, PERSONAL CARE, TRAVEL/MOBILITY, AND SENSORY INTEGRATION THAT ARE TAILORED TO MEET SPECIAL NEEDS OF PERSONS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES. 83441902 93614170 RESIDENTIAL SERVICES - PROVIDE PROGRAMS THAT OFFER ADULTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES LIVING ARRANGEMENTS IN THE COMMUNITY, PROMOTING SELF-RELIANT COMMUNITY INCLUSION WITH 24 HOUR ASSISTANCE AND SUPERVISION, AS NEEDED, SOCIALIZATION AND LIFE SKILL TRAINING. 4622909 3521901 HOME HEALTHCARE - PROVIDES THE INTELLECTUALLY DEVELOPMENTALLY DISABLED, WITH SKILLED NURSING; PHYSICAL, OCCUPATIONAL, SPEECH AND LANGUAGE THERAPY; MEDICAL SOCIAL WORK; AND PARAPROFESSIONAL AIDE SERVICES IN THE RECIPIENT'S HOME. 3689449 3352120 EMPLOYMENT SERVICES - PROVIDE JOB TRAINING AND JOB PLACEMENT, INCLUDING SCREENING AND ASSESSMENT; FOLLOW UP AND SUPPORTED EMPLOYMENT WITH ON-THE-JOB COACHING AND SUPERVISION FOR INDIVIDUALS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES. 3689449 3352120 160724711 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 274 0 1 3429 1 0 0 0 0 0 1 1 0 0 0 0 X 19 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X SANJAY DUTT 2122736100 460 WEST 34TH STREET NEW YORK NY 10001 ELIOT P GREEN ESQ 1.00 X X 0 0 0 SHELDON F KWIAT 1.00 X X 0 0 0 THEODORE SHAPIRO 1.00 X X 0 0 0 DIANA MING SUNG 1.00 X X 0 0 0 PETER BLANCK PHD JD 1.00 X 0 0 0 JENNIFER GEILING 1.00 X 0 0 0 CHARLES M DOMBECK 1.00 X 0 0 0 JEFFERY A MORDOS 1.00 X 0 0 0 DAVID B STAFFORD 1.00 X 0 0 0 LEWIS LINDENBERG ESQ 1.00 X 0 0 0 MIMI MENDELSON 1.00 X 0 0 0 JEFFREY LIEBERMAN ESQ 1.00 X 0 0 0 LEE CHAIKIN 1.00 X 0 0 0 GEORGE CONTES ESQ 1.00 X 0 0 0 ROBERT DEAN ELLIS ESQ 1.00 X 0 0 0 KEVIN HOGAN 1.00 X 0 0 0 JANE LEVINE 1.00 X 0 0 0 JOHN RUFER 1.00 X 0 0 0 RICHARD PAUL ROSENBAUM 1.00 X 0 0 0 PHILIP LEVY 40.00 X 513471 0 43415 STEPHEN FREEMAN 40.00 X 502449 0 58363 THOMAS DERN 40.00 X 463050 0 54792 KAREN WEGMANN 40.00 X 390617 0 40655 PAUL SMOLLER 40.00 X 273652 0 51646 DAVID KAUFMAN MD 40.00 X 265571 0 1630 CHARLES CARTWRIGHT MD 40.00 X 251454 0 5140 MARCO DAMIANI 40.00 X 242429 0 40487 MATTHEW STURIALE 40.00 X 236170 0 38606 3138863 0 334734 64 0 1 0 THE INTERAGENCY COUNCIL OF DEVELOPMENTAL 150 WEST 30TH STREET NEW YORK NY 10001 BUS TRANSPORTATION 6566258 WHITE PLAINS BUS COMPANY 14 FISHER LANE WHITE PLAINS NY 10603 BUS TRANSPORTATION 1618954 ARNOLD & PORTER LLP 399 PARK AVE NEW YORK NY 10022 LAW FIRM 1498669 SUFFOLK TRANSPORTATION SERVICE 10 MOFFIT BLVD BAYSHORE NY 11706 BUS TRANSPORTATION 956468 WILOU TRANSIT SERVICES INC 904 LYMAN AVE PEEKSILL NY 10566 BUS TRANSPORTATION 653753 30 1649016 1362564 3011580 RESIDENTIAL SERVICES 623990 93614170 93614170 CLINICAL SERVICES 621400 79320132 79320132 HOME HEALTH CARE 621610 3521901 3521901 EMPLOYMENT INITIATIVE 900099 3352120 3352120 179808323 83038 83038 459961 1649016 738178 -278217 -278217 182624724 179808323 0 -195179 724791 724791 86407060 79087676 6994000 325384 5151083 4744937 388560 17586 15653461 14374367 1227572 51522 8834906 8038083 767994 28829 1905308 70931 1834377 392954 18224 374730 5853785 4154969 1327999 370817 3925 3925 2876360 1915808 690428 270124 1099210 501208 598002 12267145 11146214 882887 238044 12006268 11924379 77474 4415 312705 214654 94451 3600 2460493 1740272 720221 4232474 3880650 309653 42171 1749184 1473287 275897 STATE PAID DAY HAB/HCE 8476026 8476026 GROSS FACILITY TAX 2158903 2158903 FOOD 2157155 2097533 59622 HOUSEHOLD SUPPLIES 1618111 1509768 108343 4089713 3196822 892891 180431020 160724711 18349892 1356417 2490720 7323106 18556773 23275659 36865011 28856229 9214757 7734067 86704029 48876449 39949751 37827580 8445323 12836403 115172335 117853044 23875429 15217877 18309654 15688542 37341739 37317767 24055934 35845575 103582756 104069761 X 11536102 13729806 53477 53477 11589579 13783283 115172335 117853044 2193704 0 X X 0 1 1 X 0 X 1338703 2836463 2372256 3991593 3011580 13550595 161873905 170141420 166167352 197360203 179808323 875351203 163212608 172977883 168539608 201351796 182819903 888901798 0 0 0 888901798 264168 103106 78181 70951 83038 599444 264168 103106 78181 70951 83038 599444 918383 730684 682066 2331133 164395159 173811673 169299855 201422747 182902941 891832375 0.99670 0.99520 0.00070 0.00110 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 736182 1846139 1825049 757272 0 9900761 9900761 51350589 29175864 22174725 14387082 11888197 2498885 4833919 4014134 819785 6231678 3798254 2433424 37827580 BOND ISSUANCE COSTS 2933251 OTHER ASSETS 283250 ASSETS LIMITED TO USE 4408832 DEFERRED CHARGES 5211070 12836403 DUE TO NEW YORK STATE 22432909 OTHER LIABILITIES 13412666 35845575 182624724 180431020 2193704 2193704 182624724 0 182624724 0 182624724 180431020 0 180431020 0 180431020 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: YAI HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PERIOD ENDING JUNE 30, 2009 AND SUBSEQUENT PERIODS REMAIN SUBJECT TO EXAMINATION BY APPLICABLE TAXING AUTHORITIES. PART IV, LINE 2B: CONSUMER BANK ACCOUNTS ARE MAINTAINED BY THE INDIVIDUAL PROGRAMS WHERE THE CONSUMER RESIDES. EACH CONSUMER HAS A BANK LEDGER AND AN IN-HOUSE LEDGER. THE BANK LEDGER RECORDS ALL THE DEPOSITS AND WITHDRAWALS THAT TAKE PLACE IN THE ACCOUNT. THE IN-HOUSE LEDGER PROVIDES THE DETAIL ON HOW CONSUMER SPENDS MONEY THAT IS WITHDRAWAN FROM THEIR ACCOUNT. 0GALA 641609 398480 243129 116787 67700 CENTRAL PARK CHALLENGE 1184730 1184730 367517 5 282638 65806 216832 186174 2108977 1649016 459961 116787 621391 738178 -278217 X X X X X X 0 0 0 0 0 0 0 1 0 PHILIP LEVY 386446 0 120000 0 7025 0 21913 0 21502 0 556886 0 0 0 STEPHEN FREEMAN 327250 0 110000 0 65199 0 38685 0 19678 0 560812 0 0 0 THOMAS DERN 325190 0 80000 0 57860 0 35208 0 19584 0 517842 0 0 0 KAREN WEGMANN 252323 0 51015 0 87279 0 31552 0 9103 0 431272 0 0 0 PAUL SMOLLER 186319 0 21855 0 65478 0 32517 0 19129 0 325298 0 0 0 DAVID KAUFMAN MD 261317 0 4254 0 0 0 993 0 637 0 267201 0 0 0 CHARLES CARTWRIGHT MD 247200 0 4254 0 0 0 4537 0 603 0 256594 0 0 0 MARCO DAMIANI 185000 0 15355 0 42074 0 21433 0 19054 0 282916 0 0 0 MATTHEW STURIALE 160000 0 13355 0 62815 0 29874 0 8732 0 274776 0 0 0 PART I, LINE 7 THE AGENCY SET BASE PAY AND TOTAL PAY (I.E., INCLUDING "INCENTIVE" OR "AT RISK" COMPENSATION) GENERALLY WITH REFERENCE TO THE 75TH PERCENTILE OF COMPARABLE ORGANIZATIONS. THE AGENCY HISTORICALLY MAINTAINED AN INCENTIVE COMPENSATION PROGRAM THAT PAID VARIABLE COMPENSATION IF BOTH THE AGENCY AND THE EXECUTIVE MET QUALITY OF CARE, PROGRAM, FINANCIAL AND SIMILAR GOALS ESTABLISHED AT THE BEGINNING OF THE YEAR BY AN EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES PRIOR TO THE COMPENSATION AWARD. NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 64971C2E3 2004-08-19 3162184 TO FINANCE THE PURCHASE AND RENO 0 0 0 COUNTY OF WESTCHESTER INDUSTRIAL DEVELOPMENT A 521294265 957368FT5 2004-08-19 1217279 TO FINANCE THE PURCHASE AND RENO 0 0 0 COUNTY OF WESTCHESTER INDUSTRIAL DEVELOPMENT A 521294265 957368GE7 2005-03-23 3160000 TO FINANCE THE PURCHASE AND RENO 0 0 0 NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 649710AE0 2006-03-01 1872309 TO FINANCE THE PURCHASE AND RENO 0 0 0 3162184 316000 63244 2782941 2004 0 0 1 1 1217279 121000 24336 1071933 2004 0 0 1 1 3160000 316000 63200 2780800 2005 0 0 1 1 1872309 137059 37446 1697804 2006 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 SCHEDULE K, PART I, BOND ISSUES: (A) ISSUER NAME: NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: COUNTY OF WESTCHESTER INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE: TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: COUNTRY OF WESTCHESTER INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NASSAU COUNTY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: COUNTY OF WESTCHESTER INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NASSAU COUNTY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT AGENCY (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. (A) ISSUER NAME: DORMITORY AUTHORITY OF THE STATE OF NEW YORK (F) DESCRIPTION OF PURPOSE:TO FINANCE THE PURCHASE AND RENOVATION OF PROPERTY. NASSAU COUNTY INDUSTRIAL DEVELOPMENT AGENCY 112559657 631657HW6 2006-03-01 1025131 TO FINANCE THE PURCHASE AND RENO 0 0 0 NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 649710AT7 2006-06-15 6175000 TO FINANCE THE PURCHASE AND RENO 0 0 0 SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT A 112584714 864768MG8 2006-06-15 1195000 TO FINANCE THE PURCHASE AND RENO 0 0 0 COUNTY OF WESTCHESTER INDUSTRIAL DEVELOPMENT A 521294265 957368GN7 2006-06-15 3555000 TO FINANCE THE PURCHASE AND RENO 0 0 0 1025131 102500 20503 902128 2006 0 0 1 1 6175000 432294 2906098 123500 2713108 2006 0 1 1 1 1195000 119500 23900 1051600 2006 0 0 1 1 3555000 355500 71100 3128400 2006 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 NASSAU COUNTY INDUSTRIAL DEVELOPMENT AGENCY 112559657 631657JH7 2006-06-15 1550000 TO FINANCE THE PURCHASE AND RENO 0 0 0 NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 649710BL3 2007-02-22 1630290 TO FINANCE THE PURCHASE AND RENO 0 0 0 NEW YORK CITY INDUSTRIAL DEVELOPMENT AGENCY 132906040 649438EY0 2007-11-07 1885000 TO FINANCE THE PURCHASE AND RENO 0 0 0 SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT A 112584714 864768NY8 2007-11-07 990000 TO FINANCE THE PURCHASE AND RENO 0 0 0 1550000 155000 1193523 31000 170477 2006 0 1 1 1 1630290 109474 32606 170477 2007 0 0 1 1 1885000 166204 37700 1681096 2007 0 0 1 1 990000 87290 19800 882910 2007 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0.00000 0.00000 0.00000 1 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 DORMITORY AUTHORITY OF THE STATE OF NEW YORK 146000293 649905S31 2010-06-30 13087712 TO FINANCE THE PURCHASE AND RENO 0 0 0 13087712 492000 261754 12333958 2010 0 0 1 1 0 0 0 0 0.00000 0.00000 0.00000 1 1 0 0 0 0 0 JOEL LEVY FORMER CEO SEE PART V 0 DANIEL DERN FAMILY OF COO 70334 EMPLOYMENT 0 MARC DERN FAMILY OF COO 29303 EMPLOYMENT 0 RESPONSE TO PART I(B): JOEL LEVY, YAI'S FORMER CEO, IS A PARTICIPANT IN A NONQUALIFIED DEFERRED COMPENSATION PLAN (SERP), A PORTION OF WHICH REMAINS UNPAID. DURING THE FISCAL YEAR ENDED JUNE 30, 2012, YAI WAS ADVISED BY AN INDEPENDENT COMPENSATION CONSULTANT THAT PAYMENT OF THE OUTSTANDING BALANCE OF THE SERP WOULD CAUSE LEVY'S COMPENSATION TO EXCEED A REASONABLE AMOUNT, AND FURTHER ADVISED THAT THE PRESENT VALUE OF THE SERP IN EXCESS OF WHAT IS REASONABLE IS MORE THAN $10 MILLION. UPON RECEIVING SUCH ADVICE, YAI ASKED LEVY TO ACCEPT A REDUCED SERP BENEFIT THAT WOULD CONSTITUTE REASONABLE COMPENSATION. LEVY REFUSED AND ON APRIL 30, 2013, LEVY FILED A LAWSUIT TO COMPEL YAI TO PAY THE ENTIRE SERP AMOUNT, INCLUDING THE PORTION THAT EXCEEDS REASONABLE COMPENSATION, ALL OF WHICH LEVY ASSERTS IS VESTED AND PAYABLE. THE PORTION OF THE SERP THAT EXCEEDS REASONABLE COMPENSATION IS MORE THAN $10 MILLION, AND THIS CONSTITUTES AN EXCESS BENEFIT TRANSACTION. NO ORGANIZATION MANAGERS APPROVED THE PROVISION OF THE SERP BENEFIT TO LEVY KNOWING THAT A PORTION OF THE BENEFIT EXCEEDED REASONABLE COMPENSATION. FORM 990, PART IV, LINE 25B THE RESPONSE WAS CHANGED AS PER THE AMENDED RETURN TO A YES RESPONSE FORM 990, PART VI, SECTION B, LINE 11 YAI EXECUTIVE MANAGEMENT WORKS WITH THE AUDIT FIRM AND OUTSIDE COUNSEL TO PREPARE THE DRAFT 990 FOR BOARD REVIEW. A COPY OF THE COMPLETED FORM 990 IS PRESENTED TO THE BOARD MEMBERS IN ADVANCE OF A TELEPHONIC OR REGULAR MEETING OF THE BOARD. THE BOARD MEMBERS ARE AFFORDED THE OPPORTUNITY TO ASK QUESTIONS AND REQUEST CHANGES (IF THERE ARE PERCEIVED FACTUAL INACCURACIES). THE FINAL FORM 990 IS APPROVED AS PRESENTED OR, IF APPLICABLE, AS CHANGED, BY A MAJORITY VOTE OF THE MEMBERS PRESENT AT THE MEETING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS EACH OFFICER, DIRECTOR, TRUSTEE, AND KEY EMPLOYEE COMPLETES A CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRE. AN AMENDED FORM MUST BE FILED IN THE EVENT OF A MATERIAL CHANGE OF CIRCUMSTANCES. THE COMPLETED FORM SHALL BE REVIEWED BY THE CHIEF FINANCIAL OFFICER AND THE CHIEF COMPLIANCE OFFICER AND ANY OTHER STAFF, AS NECESSARY, TO DISCERN IF THERE MAY BE A CONFLICT OF INTEREST IN THE CONDUCT OF AGENCY BUSINESS OR THAT MAY CREATE AN APPEARANCE OF INVOLVING A CONFLICT OF INTEREST. THE CHIEF COMPLIANCE OFFICER SHALL REPORT TO THE BOARD AT LEAST ANNUALLY ON ANY DISCLOSED CONFLICT OF INTEREST. IN THE EVENT THERE IS A CONFLICT OF INTEREST, PURSUANT TO THE CONFLICT OF INTEREST POLICY, THE PERSON WHO HAS THE CONFLICT RECUSES HIMSELF/HERSELF FROM ANY DECISION AND DOES NOT PARTICIPATE IN ANY CONFLICT OF INTEREST DECISION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD HAS ADOPTED A COMPENSATION POLICY (THE "POLICY") FOR COVERED INDIVIDUALS. PURSUANT TO THE POLICY, AN EXECUTIVE COMPENSATION COMMITTEE ("ECC") OF INDEPENDENT DIRECTORS WAS ESTABLISHED TO REVIEW THE COMPENSATION OF ALL EMPLOYEES SPECIFIED AS HAVING A SUBSTANTIAL INFLUENCE OVER THE AGENCY AND WHO RECEIVE REMUNERATION FROM THE AGENCY, INCLUDING THE AGENCY'S SENIOR EXECUTIVES. THE ECC IS ADVISED BY INDEPENDENT COMPENSATION CONSULTANTS AND SEPARATELY RETAINED COUNSEL, WHO OPINE TO THE ECC THAT THE LEVEL OF COMPENSATION PAID AND THE PROCESS BY WHICH COMPENSATION IS ESTABLISHED MEET APPLICABLE IRS REASONABLENESS AND "SAFE HARBOR" STANDARDS. "INTERMEDIATE SANCTIONS" RULES. THE OUTSIDE COMPENSATION CONSULTANTS AND COUNSEL PROVIDE DATA ON COMPENSATION PROVIDED AT COMPARABLE ORGANIZATIONS TO ENSURE THAT THE AGENCY PAYS ONLY REASONABLE COMPENSATION, AND DOES NOT COMPENSATE IN EXCESS OF MARKET NORMS. THE ECC MAKES RECOMMENDATIONS TO THE FULL BOARD. THE ECC'S DECISIONS ARE SUBJECT TO APPROVAL BY THE FULL BOARD PRIOR TO IMPLEMENTATION. IN RESPONSE TO VARIOUS ECONOMIC CHALLENGES, THE BOARD HAS SUBSTANTIALLY REVISED THE AGENCY'S EXECUTIVE MANAGEMENT COMPENSATION POLICIES AND PRACTICES, INCLUDING THE AGENCY'S WRITTEN COMPENSATION PHILOSOPHY AND POLICY. FORM 990, PART VI, SECTION C, LINE 19 INFORMATION IS AVAILABLE UPON REQUEST FORM 990, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. SCHEDULE K, PART 1, COLUMN (C) CUSIP# A. 64971C 2E3, 64971C 2FO B. 957368 FT5, 957368 FU2 C. 957368 GE7, 957368 GF4, 957368 GG2 D. 649710 AE0, 649710 AF7, 649710 AG5, 649710 AH3, 649710 AJ9 E. 631657 HW6, 631657 HX4, 631657 HY2, 631657 HZ9, 631657 JA1, 631657 JB0, 631657 JC8 F. 649710 AT7, 649710 AU4, 649710 AV2, 649710 AW0, 649710 AX8, 649710 AY6, 649710 AZ3, 649710 BA7, 649710 BB5 G. 864768 MG8, 864768 MH6, 864768 MJ2, 864768 MK9, 864768 ML7, 864768 MM5, 864768 MN3, 864768 MP8 H. 957368 GN7, 957368 GP2, 957368 GQ0, 957368 GR8, 957368 GS6, 957368 GT4, 957368 GU1, 957368 GV9 I. 631657 JH7, 631657 JJ3, 631657 JK0, 631657 JL8, 631657 JM6, 631657 JN4, 631657 JP9, 631657 JQ7 J. 649710 BL3, 649710 BM1, 649710 BN9, 649710 BP4, 649710 BQ2, 649710 BR0, 649710 BS8, 649710 BT6, 649710 BU3 K. 649438 EY0, 649438 EZ7, 649438 FA1, 649738 FB9, 649738 FC7 L. 864768 NY8, 864768 NZ5, 864768 PA8, 864768 PB6, 864768 PC4, 864768 PD2, 864768 PE0, 864768 PF7, 864768 PG5 M. 649905 S31, 649905 S49, 649905 S56, 649905 S64, 649905 S72, 649905 S80, 649905 S98, 64990 T22, 649905 T30, 649905 T89, 649905 T48, 649905 T55, 649905 T63 YOUNG ADULT INTSTITUTE, INC. (YAI) WAS ORGANIZED AND INCOPORATED IN 1957 UNDER THE NOT-FOR-PROFIT CORPORATION LAW OF NEW YORK STATE. YAI HAS BEEN GRANTED EXEMPTION FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. YAI SERVES PEOPLE OF ALL AGES WITH DEVELOPMENTAL AND LEARING DISABILITIES, FROM INFANTS THROUGH THE ELDERLY, IN A VARIETY COMMUNITY SETTINGS AND AT HOME THROUGH STATE-OF-THE-ART PROGRAMS THAT HELP TO BUILD SKILLS, EXPAND OPPORTUNITIES, AND SUPPORT COMMUNITY LIVING THROUGHOUT THE NEW YORK METROPOLITAN AREA, WESTCHESTER, AND LONG ISLAND. YAI IS A HIGHLY ACCLAIMED PROFESSIONAL ORGANIZATION WITH A NATIONAL IMPACT. THROUGH OUR TRAINING INSTITUTE, ANNUAL INTERNATIONAL CONFERENCE, DEVELOPMENT OF INNOVATIVE TRAINING MATERIALS, RESEARCH AND PUBLICATIONS, YAI PROMOTES THE PROFESSIONAL DEVELOPMENT OF STAFF IN OUR FIELD, WHICH ENHANCES THE LIVES OF CONSUMERS AND THEIR FAMILIES. THROUGH THESE AND OTHER ADVOCACY EFFORTS, WE ELEVATE THE PUBLIC'S AWARENESS OF THE ABILITIES, NEEDS AND RIGHTS OF INDIVIDUALS WITH DISABILITIES. YAI PROGRAMS INCLUDE: RESIDENTIAL SERVICES DAY SERVICES EMPLOYMENT TRAINING AND PLACEMENT FAMILY SUPPORT SERVICES AND RECREATION MENTAL HEALTH AND REHABILITATION CERTIFIED HOME HEALTH CARE CAMPING AND TRAVEL YAI'S MORE THAN 269 PROGRAMS AND DIRECT SERVICES BENEFIT MORE THAN 9,000 INDIVIDUALS AND THEIR FAMILIES DAILY IN 10 COUNTIES THROUGHOUT THE NEW YORK CITY METROPOLITAN AREA. SCHEDULE L PART I AND PART V: THE RETURN IS BEING AMENDED DUE TO A CHANGE IN PART I WHICH LISTS THE APPROPRIATE INDIVIDUAL WHO RECEIVED THE EXCESS BENEFIT AND DUE TO A CHANGE IN PART V, WHICH EXPLAINS THE TRANSACTION. SEE THE REVISED SCHEDULE L.