2023-07-10T10:23:54-05:00 2022-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2022-01-01 411801498 MDI COMMERCIAL SERVICES MDIC 6519998200 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 MARVIN HANNON CFO 6519998200 2023-06-29 1 MARVIN HANNON 999009999 0 MACKENZIE MCNAUGHTON P02025805 6123764500 2023-06-29 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z ERIC BLACK 3501 BROADWAY ST NE 100 MINNEAPOLIS MN 55413 28006063 0 X WWW.MDI.ORG X 1994 MN SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. 10 10 168 10 0 0 0 0 20998249 28006063 0 0 0 0 20998249 28006063 0 0 0 0 6556570 6801255 0 0 0 13726411 18132900 20282981 24934155 715268 3071908 12235145 16804376 13442530 14939853 -1207385 1864523 X MDI'S VISION IS MEANINGFUL EMPLOYMENT OPPORTUNITIES FOR ALL PEOPLE WITH DISABILITIES AND IS SUPPORTED THROUGH OUR MISSION TO SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. REFER TO SCHEDULE O FOR ADDITIONAL DETAIL. 0 0 22780339 0 28006063 IN 2022, MDI AND ITS AFFILIATES EMPLOYED 439 EMPLOYEES AND CONTRACT WORKERS WHICH INCLUDED APPROXIMATELY 43% OF THE WORKFORCE WITH DISABILITIES. MDI HAS FACILITIES IN MINNEAPOLIS, GRAND RAPIDS, HIBBING AND COHASSET, MINNESOTA. ALL EMPLOYEES EARN AT LEAST MINIMUM WAGE AND RECEIVE FULL BENEFITS. PEOPLE WITH AND WITHOUT DISABILITIES WORK SIDE-BY-SIDE PROVIDING THE BEST POSSIBLE PRODUCTS AND SERVICES FOR OUR BUSINESS-TO-BUSINESS CUSTOMERS. MDI'S EMPLOYMENT SERVICES PROVIDE JOB TRAINING AND COACHING AT MDI OR JOB PLACEMENT IN THE COMMUNITY. MDI'S TRAINING AND DEVELOPMENT PROGRAM PROVIDES ONGOING SUPPORT AND SERVICES RESULTING IN THE INDIVIDUALIZED DEVELOPMENT AND ADVANCEMENT OF ALL EMPLOYEES, WITH AND WITHOUT DISABILITIES. MDI OFFERS PLACEMENT SERVICES PRIMARILY IN THE GRAND RAPIDS AND HIBBING AREAS. THIS PROGRAM PARTNERS WITH STATE AND COUNTY REFERRAL AGENCIES TO PROVIDE EMPLOYMENT AND OPPORTUNITIES FOR PEOPLE WITH DISABILITIES. 22780339 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 168 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 1 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X X MARVIN HANNON 6519998200 3501 BROADWAY STREET NE SUITE 100 MINNEAPOLIS MN 55413 MIKE RAICH CHAIR 0.45 3.55 X X 0 0 0 ELAINE RASMUSSEN TREASURER & FINANCE CHAIR 0.45 3.55 X X 0 0 0 STEVE GLIENKE DIRECTOR 0.45 2.05 X 0 0 0 RHONDA GRAVES DIRECTOR 0.45 2.05 X 0 0 0 JILL HESSELROTH DIRECTOR 0.45 2.55 X 0 0 0 ELLEN HOEG DIRECTOR 0.45 2.05 X 0 0 0 MEGAN KELIN DIRECTOR 0.45 2.05 X 0 0 0 FRED KLIETZ DIRECTOR 0.45 2.55 X 0 0 0 JONATHAN PALMER DIRECTOR 0.45 2.05 X 0 0 0 NICK WILKIE DIRECTOR 0.45 2.55 X 0 0 0 ERIC BLACK PRESIDENT & CEO 12.00 43.00 X 0 288261 11745 RODNEY WOOD CHIEF OPERATING OFFICER 10.00 46.00 X 0 190092 28109 BARBARA MAJERUS VP SALES 19.00 36.00 X 0 207378 18239 MARVIN HANNON CHIEF FINANCIAL OFFICER 10.00 45.00 X 0 145198 4627 MARGARET MCQUILLAN PORTER DIRECTOR OF DEVELOPMENT 4.00 46.00 X 0 114722 14479 TODD WITHERILL DIRECTOR OF OPERATIONS 14.00 41.00 X 0 121754 13579 ROBERT GREEN CHANNEL MANAGER 35.00 10.00 X 0 114829 11883 JEANNE EGLINTON DIRECTOR OF EMPLOYMENT SERVICES 5.00 45.00 X 0 114981 26327 LAURA SCHARTZ DIRECTOR OF HUMAN RESOURCES 10.00 45.00 X 0 112947 34518 0 1410162 163506 0 0 1 0 MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE SUITE 100 MINNEAPOLIS MN 55413 MANAGEMENT SERVICES 2153816 THE DPI GROUP 4950 NE MARTIN LUTHER KING JR BLVD PORTLAND OR 97211 TEMPORARY LABOR 483847 EXPRESS SERVICES INC 102 NORTHEAST 3RD STREET SUITE 100 GRAND RAPIDS MN 55744 TEMPORARY LABOR 400471 3 MANUFACTURING SERVICES 310000 28006063 28006063 28006063 28006063 28006063 0 0 X 5445676 5445676 977117 977117 378462 378462 2153816 2153816 2747213 2747213 10638 10638 33014 33014 3645 3645 1837668 1837668 22927 22927 930516 930516 COST OF GOODS SOLD 9207989 9207989 SUPPLIES 853411 853411 MISCELLANEOUS 332063 332063 24934155 22780339 2153816 0 1895968 1813260 2892366 2768189 18838260 13356249 3682399 5482011 3764412 6740916 12235145 16804376 13442530 14939853 13442530 14939853 X -1207385 1864523 -1207385 1864523 12235145 16804376 3071908 0 X X 0 1 X 1 0 X X 1 MDI GOVERNMENT SERVICES 411801370 7 1 0 22780339 1 0 22780339 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1045035 532854 512181 17793225 12823395 4969830 5482011 INTERCOMPANY RECEIVABLE 6740916 6740916 INTERCOMPANY PAYABLE 14939853 14939853 X PART X, LINE 2: MDI COMMERCIAL SERVICES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, MDI COMMERCIAL SERVICES IS SUBJECT TO INCOME TAX ON CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THEIR TAX-EXEMPT PURPOSE AS NET UNRELATED BUSINESS INCOME. THE ORGANIZATION REVIEWS INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN INCOME TAX RETURNS TO DETERMINE IF THERE ARE ANY INCOME TAX UNCERTAINTIES. THE ORGANIZATION RECOGNIZES TAX BENEFITS FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITIONS. THE ORGANIZATION HAS IDENTIFIED NO INCOME TAX UNCERTAINTIES. 0 1 0 1 0 0 1 1 0 ERIC BLACK PRESIDENT & CEO 0 229701 0 57500 0 1060 0 7265 0 4480 0 300006 0 0 BARBARA MAJERUS VP SALES 0 142669 0 63545 0 1164 0 5522 0 12717 0 225617 0 0 RODNEY WOOD CHIEF OPERATING OFFICER 0 188438 0 0 0 1654 0 5877 0 22232 0 218201 0 0 PART I, LINE 3 THE ORGANIZATION RELIED ON A RELATED ORGANIZATION TO DETERMINE THE COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER. THE RELATED ORGANIZATION USED THE FOLLOWING METHODS TO DETERMINE THE COMPENSATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B ERIC BLACK $7,265 RODNEY WOOD $5,877 BARBARA MAJERUS $5,522 MARVIN HANNON $4,291 PART I, LINE 5 BARBARA MAJERUS, VP OF SALES, RECEIVED COMPENSATION IN 2022 FOR COMMERCIAL SALES GROWTH THAT OCCURRED IN 2021 FROM MDI COMMERCIAL SERVICES, A RELATED ORGANIZATION. IN ADDITION, MS. MAJERUS ACCRUED INCENTIVE COMPENSATION FOR 2022 COMMERCIAL SALES GROWTH FROM MDI COMMERCIAL SERVICES THAT WILL BE PAID OUT IN 2023. PART I, LINE 6 ALL EMPLOYEES, INCLUDING OFFICERS AND HIGHEST COMPENSATED EMPLOYEES, PARTICIPATED IN A DISCRETIONARY BONUS PROGRAM APPROVED BY THE BOARD OF DIRECTORS. THE DISCRETIONARY BONUS PROGRAM WAS BASED ON TWO COMPONENTS: (1) SEMI-ANNUAL FINANCIAL PERFORMANCE AND (2) MISSION ACHIEVEMENT BASED ON THE NUMBER OF EMPLOYEES EMPLOYED WITH DISABILITIES. THE FIRST HALF YEAR DISCRETIONARY BONUS FOR 2022 WAS NOT ACHIEVED. THE SECOND HALF YEAR DISCRETIONARY BONUS FOR 2022 WAS ACHIEVED, ACCRUED AND APPROVED BY THE BOARD OF DIRECTORS IN 2022 AND PAID OUT IN 2023. PART I, LINE 7 ERIC BLACK, PRESIDENT & CEO, IS ELIGBLE TO RECEIVE AN ANNUAL DISCRETIONARY BONUS OF 25% OF BASE SALARY BASED ON JOB AND COMPANY PERFORMANCE. MR. BLACK DID RECEIVED COMPENSATION IN 2022 FOR JOB AND COMPANY PERFORMACE RELATING TO 2021. MR. BLACK'S 2022 DISCRETIONARY BONUS WAS REVIEWED WITH THE EXECUTIVE COMMITTEE, ACCRUED AND APPORVED BY BOARD CHAIR IN 2022 AND PAID OUT IN 2023. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION MDI COMMERCIAL SERVICES IS ONE OF FOUR RELATED NONPROFIT CORPORATIONS, WHICH ALSO INCLUDE MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI GOVERNMENT SERVICES; AND MDI HIRED HANDS. THESE NONPROFIT CORPORATIONS WORK TOGETHER TO SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. THE ORGANIZATIONS FILE SEPARATE FORM 990'S WITH THE IRS EACH YEAR. THE SEPARATE FORM 990'S EACH PRESENT ONLY A PIECE OF THE ORGANIZATIONS' PROGRAMS, AND SHOULD BE VIEWED IN CONJUNCTION WITH ONE ANOTHER TO UNDERSTAND THE ACTUAL OPERATIONS AS A WHOLE. WE RECOMMEND THAT THE READER OF THE FORM 990'S ALSO REVIEW THE CONSOLIDATED FINANCIAL STATEMENTS OF MDI, INC. AND AFFILIATES, WHICH PROVIDE THE MOST MEANINGFUL FINANCIAL REPRESENTATION OF THE ORGANIZATIONS. THE FINANCIAL STATEMENTS ARE POSTED ON OUR WEBSITE, WWW.MDI.ORG, AND ARE AVAILABLE UPON REQUEST. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: MDI IS A SOCIAL ENTERPRISE OPERATING WITH A WORKFORCE OF BOTH INDIVIDUALS WITH DISABILITIES AND WITHOUT DISABILITIES. INDIVIDUALS WITH DISABILITIES DEVELOP SKILLS WITH SUPPORT AND TRAINING, GAINING WORK EXPERIENCE WHILE EARNING COMPETITIVE WAGES AND BENEFITS. PLACEMENT OR ADVANCEMENT OF THESE INDIVIDUALS WITH DISABILITIES IN MEANINGFUL COMPETITIVE EMPLOYMENT INSIDE OR OUTSIDE OF THE COMPANY IS INHERENT IN OUR MISSION. MDI ALSO OFFERS WORK AND TRAINING PROGRAMS FOR SCHOOLS, COUNTY AND REHABILITATION AGENCIES IN THE COMMUNITY. MDI'S VISION IS TO GROW THE NUMBER OF JOBS FOR INDIVIDUALS WITH AND WITHOUT DISABILITIES. IN 2022, UNIFIED WORK WAS LAUNCHED AS A MEANS TO CREATE A SYSTEM THAT NOT ONLY PROVIDES EDUCATION AND SUPPORT TO PEOPLE WITH DISABILITIES BUT ALSO TO SUPPORT BUSINESSES SO THEY BETTER UNDERSTANDS AND CAN SUCCESSFULLY EMPLOY AND RETAIN EMPLOYEES WITH DISABILITIES. THERE ARE FIVE CATEGORIES FOR THE UNIFIED WORK PROGRAM: 1) TRAINING PROVIDED EITHER IN PERSON OR VIA ZOOM TO PEOPLE WITH DISABILITIES AND PEOPLE WHO HAVE OTHER BARRIERS TO EMPLOYMENT. 2) CREATION OF AN ONLINE LEARNING PLATFORM SO PEOPLE WITH DISABILITIES MAY HAVE ACCESS TO THIS TRAINING ANYTIME ALMOST ANYWHERE. 3) VIRTUAL REALITYEXPERIENCES THAT ALLOW PEOPLE WITH DISABILITIES TO GET A VIRTUAL EXPERINECE OF VARIOUS JOBS. 4) STE(A)M CLASSES TO GIVE PEOPLE WITH DISABILITIES GREATER ACCESS TO STE(A)M TYPE JOBS AND EXPERIENCES. 5) CONSULTING FOR BUSINESSES TO GIVE THEM THE EXPERTISE NEEDED TO SUCESSFULLY HIRE AND RETAIN EMPLOYEES WITH DISABILITIES, INCLUDING TRAINING AND ESTABLISHMENTOF INTERNSHIPS FOR THE BUSINESS. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR OF THE BOARD, VICE CHAIR, TREASURER AND PAST CHAIR. THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE POWERS OF THE BOARD OF DIRECTORS IF ACTION IS REQUIRED BETWEEN MEETINGS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 2 ALL DIRECTORS AND OFFICERS HAVE A BUSINESS RELATIONSHIP. THE BUSINESS RELATIONSHIP IS AN EMPLOYER/EMPLOYEE RELATIONSHIP AT MINNESOTA DIVERSIFIED INDUSTRIES, INC, A RELATED 501(C)(3) TAX EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE DIRECTORS ELECTED TO THE BOARD OF DIRECTORS OF MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI GOVERNMENT SERVICES; AND MDI HIRED HANDS, ALL RELATED ORGANIZATIONS, ARE ALSO ELECTED TO THE BOARD OF DIRECTORS OF MDI COMMERCIAL SERVICES. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF FORM 990 WILL BE REVIEWED AND APPROVED BY THE FINANCE & AUDIT COMMITTEE, WHICH WILL REPORT SIGNIFICANT ITEMS TO THE BOARD. THE FULL 990 IS ALSO MADE AVAILABLE TO THE BOARD BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY IS BROUGHT TO THE ATTENTION OF THE BOARD OF DIRECTORS AT LEAST ANNUALLY AT A REGULAR MEETING AND RECORDED IN THE MINUTES OF SUCH MEETING. BOARD MEMBERS HAVE SPECIFICALLY AGREED TO DISCLOSURE OF ANY POTENTIAL CONFLICT OF INTEREST RELATING TO THE SUBJECT MATTER OF A MEETING OF THE BOARD OF DIRECTORS OR A COMMITTEE ON WHICH THEY SERVE, AND WITHDRAWAL FROM SUCH MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE SUBJECT MATTER THAT RESULTS IN THE POTENTIAL CONFLICT OF INTEREST. ADDITIONALLY, EACH BOARD MEMBER SIGNS A CONFLICT OF INTEREST STATEMENT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE BOARD IS RESPONSIBLE FOR DETERMINING COMPENSATION OF OFFICERS AND KEY EMPLOYEES. THE PROCESS INCLUDES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISIONS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN 2022. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G TEMPORARY STAFFING: PROGRAM SERVICE EXPENSES 2,747,213. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,747,213. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 410941924 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 12C, III-FI N/A 0 MDI GOVERNMENT SERVICES 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411801370 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 7 MINNESOTA DIVERSIFIED INDUSTRIES INC 0 MDI HIRED HANDS 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411587363 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 11 MINNESOTA DIVERSIFIED INDUSTRIES INC 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1