2023-04-25T12:52:14-05:00 2022-06-30 910189318 Moss Adams LLP 3121 W March Ln Ste 200 Stockton CA 952192367 990 2021-07-01 941650529 PRIDE Industries PRID 9167882100 10030 Foothills Boulevard Roseville CA 95747 Charles Sharp CFO 9167882100 2023-04-23 1 Charles Sharp 999009999 Qi Wen Liang P01270238 2099556100 2023-04-23 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z Jeffery Dern 10030 Foothills Boulevard Roseville CA 95747 278536084 0 X www.prideindustries.com X 1966 CA To create employment for people with disabilities. 15 14 6047 26 0 0 14532097 4688085 244255401 273231273 295323 546047 -2117857 -309862 256964964 278155543 7161328 87455 0 0 141472066 160365161 0 0 467143 85400809 103373657 234034203 263826273 22930761 14329270 136977179 159685406 88725118 96157824 48252061 63527582 X To create employment for people with disabilities. 0 0 217050130 87455 273231273 See Schedule OPRIDE Industries creates employment for people with disabilities. A nonprofit social enterprise, our company provides facilities operations and maintenance services, custodial services, professional administrative and management services, and staffing services to private and public organizations nationwide. We are the nation's leading employer of people with disabilities and share our expertise with other entities seeking to create an inclusive workforce. Our person-centered employment services include vocational training, on-the-job support, scholarships, and paid internships. In addition to helping people with disabilities, we also assist veterans, former foster youth, and trafficking survivors.PRIDE Industries maintains the maximum 3-year CARF accreditation. Our programs for people with disabilities are designed to build skills that lead to personal and professional growth as well as increased independence. Individual plans are designed around each person's personal strengths, abilities and goals. For the year ended June 30, 2022, PRIDE Industries and its affiliates employed and/or provided services to over 4,400 individuals with diverse intellectual, developmental, physical, sensory, or mental health disabilities. Our core programs are employment-focused centering around vocational training, individual preparation, and placement in supported community employment. As a nonprofit social enterprise, PRIDE Industries creates employment in its own business operations and in partnership with other organizations. More than 1,300 individuals with disabilities were employed on hundreds of commercial contracts. In addition to these, there were over 1,200 who worked with community employers in individual or group supported employment. More than 1,300 individuals with significant disabilities were employed on federal contract opportunities across the country providing a wide range of facilities services.28 at-risk youth and teens emancipating from foster care - members of a demographic which faces considerable obstacles to employment - were served through the Youth Services Program. The program provides marketable work experience, employment skills training, educational connections, and individualized support to help these individuals secure stable employment and build self-sufficient lives.Through community employment programs, PRIDE partners with businesses and government organizations to build a reliable workforce that adds value to the community and creates meaningful jobs for people with disabilities. PRIDE's services enable people with disabilities to overcome employment barriers and develop the skills they need to lead more independent lives. Donated funds provide assistive technologies, transportation, internships, training, job coaches, and other essential job accommodations. 217050130 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 193 0 1 6047 1 0 0 0 0 0 0 0 0 0 0 0 0 X 15 14 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 CA X Stephanie Goin 9167882100 10030 Foothills Blvd Roseville CA 957477102 Jeffery Dern President/CEO 18.00 22.00 X 745507 0 135895 Casey Blake Chief Operations Officer 18.00 22.00 X 440528 0 39486 Everett Crane Chief Financial Officer (Thru 04/22) 18.00 22.00 X 346007 0 26716 Leah Burdick Chief Growth Officer 40.00 0.00 X 298329 0 29638 Michael Laperche VP Risk Management 40.00 0.00 X 281509 0 18537 Tina Oliveira Chief HR Officer/Corp Sec. 18.00 22.00 X 252308 0 32326 Alan McMillan Chief Information Officer 40.00 0.00 X 235960 0 20548 Victor Wursten - Chief Rehabilitation Officer (Thru 12/21) 40.00 0.00 X 213500 0 23331 Donald Nelson VP Government Facility Services 40.00 0.00 X 224288 0 4259 Jack Jackman VP Contracts 40.00 0.00 X 211928 0 3696 Sharon Mendy VP Rehabilitation, Federal Contracts 40.00 0.00 X 191414 0 21410 Mary Flores Chief of Staff to COO 40.00 0.00 X 196927 0 14691 Matthew Durkovich - Capture Manager, Government Facility Services 40.00 0.00 X 180990 0 26790 Nadder Mirsepassi Board Member 1.00 1.00 X 14475 0 0 Bob Olsen Chairman of the Board 1.00 1.00 X X 0 0 0 Judson Riggs Vice Chairman of the Board 1.00 1.00 X X 0 0 0 Mike Snegg Board Treasurer 1.00 2.00 X X 0 0 0 Sandy Smoley Board Secretary 1.00 1.00 X X 0 0 0 Jim Barone Board Member 1.00 3.00 X 0 0 0 Ed Bonner Board Member 1.00 1.00 X 0 0 0 Dawn Clayton Board Member 1.00 1.00 X 0 0 0 Dorene Dominguez Board Member 1.00 1.00 X 0 0 0 Rob Lynch Board Member 1.00 1.00 X 0 0 0 Rick Maya Board Member (Thru 10/21) 1.00 1.00 X 0 0 0 Ronald J Mittelstaedt Board Member 1.00 1.00 X 0 0 0 Walter Payne Board Member 1.00 1.00 X 0 0 0 Marco Rodriguez Board Member (Eff 6/22) 1.00 1.00 X 0 0 0 H Rao Unnava Board Member 1.00 1.00 X 0 0 0 Larry Welch Board Member 1.00 1.00 X 0 0 0 3833670 0 397323 101 0 1 0 Solution One Industries Inc 412 North Gray Street Killeen TX 76541 Subcontractor 3059476 H&R Agri Power 4900 Eagle Way Hopkinsville KY 42240 Subcontractor 1871678 APTIM Federal Services LLC 1725 Duke Street Alexandria VA 22314 Subcontractor 1864718 Johnson Controls Inc PO Box 730068 Dallas TX 75373 Subcontractor 1153102 Scarborough & Associates Inc 580 Murray Road Dothan AL 36303 Subcontractor 882152 61 583798 4104287 145948 4688085 Facilities Services 310000 218944718 218944718 Program Fees 561300 20663264 20663264 Management Fee 900099 20536859 20536859 Manuf & Logistics Svcs 310000 13043011 13043011 Other 561300 43421 43421 273231273 34746 34746 327000 564842 318758 61783 8242 503059 511301 511301 Loss on Dissolution of CBA PCC 900099 -309862 -309862 -309862 278155543 273231273 0 236185 X 87455 87455 3164731 456543 2708188 122626887 105456998 16833260 336629 770481 595932 168269 6280 23777318 22292366 1461203 23749 10025744 8541714 1456820 27210 1826002 500 1825502 314415 314415 248200 91000 157200 36153427 31078929 5071213 3285 666730 278693 386665 1372 5512366 3997993 1503573 10800 6765595 1709892 5044577 11126 1041983 760810 273877 7296 868949 567775 300021 1153 30979 13829 14533 2617 1378936 816450 557533 4953 5358834 3941766 1414128 2940 2889767 254945 2634143 679 Direct Materials 28521726 28487356 33730 640 Vehicle Expense 3470541 3423629 46750 162 Workers Compensation 3316018 3170722 135071 10225 Legal Settlements & Res 2435573 2435573 2573616 1024833 1532756 16027 263826273 217050130 46309000 467143 15379860 878164 0 41916 34573434 33688968 744428 404726 1976628 2899461 63245229 41725632 25192556 21519597 7399342 9250759 7484119 7295701 44226812 83706114 136977179 159685406 49051860 47185823 1252892 1095527 34135583 43231469 4284783 4645005 88725118 96157824 X 48252061 63527582 48252061 63527582 136977179 159685406 14329270 -644664 1590915 0 X 0 1 X 1 1 1 X 196200602 197418196 201627990 222531367 220249380 1038027535 28617682 30703347 30868490 36256131 57669978 184115628 224818284 228121543 232496480 258787498 277919358 1222143163 10000 22759 39281 12152391 207144 12431575 9332537 11854029 12724659 15979266 14035091 63925582 9342537 11876788 12763940 28131657 14242235 76357157 1145786006 30658 216210 353795 14473 34746 649882 30658 216210 353795 14473 34746 649882 1875151 1875151 224848942 230212904 232850275 258801971 277954104 1224668196 0.93560 0.93460 0.00050 0.00050 X Schedule A, Part III, Line 12, Explanation of Other Income: Lease Termination - 2018 Amount: $ 1,875,151. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 248200 0 0 248200 0 Part II-B, Line 1: The organization paid two firms to lobby, educate, and inform on their behalf for legislation that directly affects the business and exempt purpose of the Company and its affiliates. 2306853 2306853 12186955 2782459 9404496 1008445 901834 106611 31085677 23697618 7388059 16657299 14343721 2313578 21519597 Restricted Cash 4570695 Deferred Compensation Investment 1081348 Deposits 574382 Related Organization Receivables 75289958 Other Assets 2189731 83706114 Capital Lease Obligations 3537875 Deferred Compensation 457 Plan 1081348 Deferred Rent 25782 4645005 X Part X, Line 2: In the event the Company had a tax position that was uncertain of being sustained, the Company would apply the minimum probability threshold specified in accounting guidance on income tax accounting to determine whether a financial statement liability or benefit should be recognized. There were no uncertain tax positions at June 30, 2022 and 2021. 1 Pride Industries One Inc 10030 Foothills Blvd Roseville CA 95747 911827109 501(c)(3) 58000 0 General Support 1 0 Part I, Line 2: Donations to domestic charitable organizations for general support. No monitoring of the use by the charitable organization is necessary. X X X X 1 1 0 1 0 1 0 1 0 Jeffery Dern President/CEO 500751 0 183700 0 61056 0 100302 0 35593 0 881402 0 18500 0 Casey Blake Chief Operations Officer 337781 0 61739 0 41008 0 18500 0 20986 0 480014 0 18500 0 Everett Crane Chief Financial Officer (Thru 04/22) 284462 0 60951 0 594 0 0 0 26716 0 372723 0 0 0 Leah Burdick Chief Growth Officer 249014 0 48325 0 990 0 0 0 29638 0 327967 0 0 0 Michael Laperche VP Risk Management 198671 0 80000 0 2838 0 0 0 18537 0 300046 0 0 0 Tina Oliveira Chief HR Officer/Corp Sec. 210274 0 37678 0 4356 0 0 0 32326 0 284634 0 0 0 Alan McMillan Chief Information Officer 190907 0 39660 0 5393 0 0 0 20548 0 256508 0 0 0 Victor Wursten - Chief Rehabilitation Officer (Thru 12/21) 170869 0 30155 0 12476 0 0 0 23331 0 236831 0 0 0 Donald Nelson VP Government Facility Services 173261 0 28697 0 22330 0 0 0 4259 0 228547 0 0 0 Jack Jackman VP Contracts 190674 0 18416 0 2838 0 1005 0 2691 0 215624 0 0 0 Sharon Mendy VP Rehabilitation, Federal Contracts 48981 0 0 0 142433 0 411 0 20999 0 212824 0 0 0 Mary Flores Chief of Staff to COO 177581 0 16508 0 2838 0 0 0 14691 0 211618 0 0 0 Matthew Durkovich - Capture Manager, Government Facility Service 168081 0 12249 0 660 0 0 0 26790 0 207780 0 0 0 Part I, Line 3 The Board's Compensation Committee retains the ultimate authority over all elements of compensation to ensure that the organizational purposes are appropriately serviced. The Board's Compensation Committee uses credible data sources, third-party compensation consultant review and an objective "arms-length" decision-making process, ensuring the integrity of the executive programs and consistency with the organization's overall mission. Part I, Lines 4a-b Sharon Mendy received a one-time compensation payment (the contents of which are subject to a confidentiality clause) of $125,000 which is included on Schedule J, Part II, Column B(iii). Key executives participate in a 457(f) retirement plan. Plan eligibility is determined upon approval by the Board of Directors of PRIDE Industries. During the calendar year ended December 31, 2021, contributions and distributions for the following key executives are as follows: Jeffery Dern - President/CEO: Contributions: None Distributions: $25,565 Casey Blake - Chief Operations Officer: Contributions: $18,500 Distributions: $18,670 The President/CEO participates in a nonqualified deferred compensation trust as provided for in his employment agreement approved by the Board of Directors. Contributions to the trust are made annually, each December, in an amount equal to 7.5% of the President/CEO's base salary. The trust is distributable upon the earlier of the President/CEO reaching age 65 or has a qualifying termination event. Certain forfeiture provisions exist in the agreement. During the Calendar year ended December 31, 2021, contributions totaling $60,552 were made covering both the 2020 and 2021 calendar years. In 2021, the President/CEO began participating in a long-term incentive compensation benefit. Amounts are approved by the Board's Compensation Committee annually ranging from 0% to 7.5% of the President/CEO's base salary based on both his and the Company's performance. The approved amounts are accrued annually and paid out in a lump sum once every five years, subject to continued employment. In 2021, an accrual of $39,750 was approved by the Compensation Committee and recorded as a liability. Part I, Line 5 Bonuses in the amount of $80,000 were paid to Michael Laperche, VP Risk Management, during calendar year 2021. The bonus payments are based on the net surplus of PRIDE's captive insurance subsidiary. At December 31, 2021, a $9,078 bonus was accrued and paid subsequently. Other than the bonus for the VP Risk Management, all other bonuses are discretionary, to reward employees' contributions to the success of the Company. The discretionary bonus pool is dependent on meeting revenue, net surplus, mission and other targets for the Company. The bonuses for the President/CEO and CFO were approved by the Compensation Committee of the Board of Directors of PRIDE Industries. All other bonuses were approved by the President/CEO. Part I, Line 6 See the disclosure for Line 5. Part I, Line 7 See the disclosure for Line 5. Deborah Ann Ziegler Michael Ziegler's Widow 987835 Death Benefit Payment and Medical Premium Payments 0 Schedule L, Part IV The former CEO of PRIDE Industries and PRIDE Industries One, Inc. passed away in May 2020, after leading the organization for 37 years. After his passing, a death benefit of $986,680 was paid during fiscal year June 30, 2022 to the widow of Michael Ziegler, as approved by the Board of Directors of PRIDE Industries and the expense was allocated between the two companies. In addition, PRIDE Industries reimbursed Deborah Ziegler for medical premiums paid during the year in the amount of $1,155. X Inherent Contribution 1 145948 Book Value 0 0 0 0 Part I, Column (b): The number of contributions are included in Column (B). Form 990, Part VI, Section A, line 8b Excluding the President/CEO and CFO compensation review and approval process, all sub-committee recommendations are referred to the board for official action. Form 990, Part VI, Section B, line 11b The accounting department consults with various departments in the compiling of the Form 990. In addition, a nationally recognized CPA firm consults on the preparation and review of the form. The CFO reviews and approves the data and completed form before providing it to the President/CEO and Board members for their review prior to filing. Form 990, Part VI, Section B, line 12c Board members and officers are required to complete an annual disclosure form identifying business interests, employment relationships and property interests, and those of related parties. The President/CEO and Board Chair review the disclosures for potential conflicts of interest and consult legal counsel as necessary. The Board Chair may ask involved individuals to recuse themselves during discussions on any matter related to a potential conflict. No director shall vote on any issue involving a financial or personal conflict of interest, or participate in decisions in matters directly involving related parties. All key employees, including officers, are required to participate in annual training on the organization's Code of Business Ethics, which includes a discussion of conflicts of interest. Training compliance is monitored by electronic acceptance and acknowledgement of the policies within the Company's electronic training platform. Form 990, Part VI, Section B, line 15 Salary surveys of benchmark jobs are used to determine wage ranges of key employees and executives. Market-available wage data, job performance, and current market conditions are used to determine appropriate compensation levels. The company contracts with a leading HR consulting firm to analyze the compensation of certain executives. The Board Compensation Committee of PRIDE Industries reviews surveys from similarly sized nonprofit and for-profit organizations, taking into account relative factors including revenues, employee counts and competitive market position. The Board's Compensation Committee reviews and approves compensation for the President/CEO and CFO. The CFO is excluded from involvement in the process. Form 990, Part VI, Section C, line 19 Audited financial statements, governing documents and conflict of interest policies are made available to the general public upon request. Form 990, Part IX, line 11g Source America Program Fees: Program service expenses 6,917,522. Management and general expenses 0. Fundraising expenses 0. Total expenses 6,917,522. Contract Disposal Services: Program service expenses 179,022. Management and general expenses 820. Fundraising expenses 11. Total expenses 179,853. Contract Labor: Program service expenses 648,328. Management and general expenses 94,162. Fundraising expenses 0. Total expenses 742,490. Subcontractor Expense: Program service expenses 22,891,839. Management and general expenses 374,346. Fundraising expenses 589. Total expenses 23,266,774. Consulting & Professional Fees: Program service expenses 442,218. Management and general expenses 4,601,885. Fundraising expenses 2,685. Total expenses 5,046,788. Form 990, Part VII, Part VIII, line 2c, and Schedule J: Starting with fiscal year 2022, PRIDE Industries is charging a management fee to affiliated companies. The management fee is disclosed on Part VIII, line 2c. Historically, individual costs were allocated to each entity, therefore compensation was shown allocated between PRIDE Industries and its related organizations on Part VII and Schedule J. Since PRIDE Industries is the common paymaster for its related organizations, compensation for all employees is disclosed as being paid by PRIDE Industries on Part VII and Schedule J. Form 990, Part XI, line 8: $1,590,915 Employee Retention Credit related to calendar year 2020 payroll expenses Social Enterprise Assurance Co LLC 1444 I Street NW Suite 950 Washington DC 20005 812863106 Insurance DC 5075894 14366432 PRIDE Industries Creative Business Assurance LLC 10030 Foothills Blvd Roseville CA 95747 832552600 Insurance DE 0 0 PRIDE Industries PRIDE Industries One Inc 10030 Foothills Blvd Roseville CA 95747 911827109 To create employment for people with disabilities CA 501(c)(3) Line 12a, I PRIDE Industries 1 PRIDE Government 10030 Foothills Blvd Roseville CA 95747 942446765 Helping people with disabilities prepare for employment CA 501(c)(3) Line 10 PRIDE Industries 1 Creative Business Assurance PCC 10030 Foothills Boulevard Roseville CA 95747 833293658 Insurance DC Pride Industries C 1.00000 1 PRIDE Federal 10030 Foothills Boulevard Roseville CA 95747 260226018 Building & landscape maintenance CA Pride Industries C 12004 201163 1.00000 1 0 1 0 0 0 0 0 0 0 1 0 1 0 1 1 1 1 1 1 PRIDE Industries One Inc B 58000 Book Value PRIDE Industries One Inc L 20537047 Book Value Creative Business Assurance PCC S 563920 Book Value Schedule R, Part I Creative Business Assurance LLC was dissolved June 27, 2022. Schedule R, Part IV Creative Business Assurance, PCC was dissolved June 24, 2022.