2020-05-22T08:06:51-05:00 2019-12-31 410746749 CLIFTONLARSONALLEN LLP 220 S 6TH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2019-01-01 411801370 MDI GOVERNMENT SERVICES MDIG 6519998200 3501 BROADWAY ST NE NO 100 MINNEAPOLIS MN 55413 MARVIN HANNON CFO 6519998200 2020-05-20 1 SARAH REICHLING P01587996 6123764500 2020-05-20 73.88.14.17 2020-05-20 12:59:37 CD P 556679616493003E6E17937C0791D09847FC9451 4EE7C9E627F42A7CD7DF52C4159FC5AA2038216D 2019 2021-01-29 14:40:06Z PETER MCDERMOTT 3501 BROADWAY ST NE NO 100 MINNEAPOLIS MN 55413 6745678 0 X WWW.MDI.ORG X 1994 MN SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. 12 12 101 39 0 0 5835397 6745678 0 0 0 0 0 0 5835397 6745678 0 0 0 0 2019486 2702057 0 0 0 3844388 4962845 5863874 7664902 -28477 -919224 23218940 22299716 0 0 23218940 22299716 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 5195880 0 0 IN 2019 MDI AND ITS AFFILIATES EMPLOYED OVER 436 EMPLOYEES AND CONTRACT WORKERS WHICH INCLUDED APPROXIMATELY 45% OF THE WORKFORCE WITH DISABILITIES. MDI HAS FACILITIES IN THE TWIN CITIES, 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. 5195880 1 1 0 0 0 0 0 0 0 0 1 0 0 1 0 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 0 101 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 12 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 0 0 0 MN X X MARVIN HANNON 6519998200 3501 BROADWAY STREET NE STE 100 MINNEAPOLIS MN 55413 PETER MCDERMOTT PRESIDENT & CEO 1.00 52.00 X 0 236862 10835 RODNEY L WOOD VP OPERATIONS 1.00 52.00 X 0 180832 17698 BARBARA MAJERUS VP SALES 1.00 52.00 X 0 148247 28297 MARVIN HANNON CHIEF FINANCIAL OFFICER 1.00 52.00 X 0 133550 4319 MARGARET MCQUILLAN PORTER DIRECTOR OF DEVELOPMENT 1.00 44.00 X 0 104969 9921 ROBERT GREEN CHANNEL MANAGER 3.00 42.00 X 0 103619 353 TODD WITHERILL DIRECTOR OF OPERATIONS 1.00 52.00 X 0 100732 606 ELLEN HOEG CHAIR 1.00 4.00 X X 0 0 0 JILL HESSELROTH VICE CHAIR 1.00 4.00 X X 0 0 0 KEITH OLSON TREASURER & FINANCE CHAIR 1.00 4.00 X X 0 0 0 PHIL BAKKEN DIRECTOR 1.00 3.00 X 0 0 0 RHONDA GRAVES DIRECTOR 1.00 3.00 X 0 0 0 MARY KAY JACOBSON DIRECTOR 1.00 3.50 X 0 0 0 FRED KLIETZ DIRECTOR 1.00 3.00 X 0 0 0 JOHN LEMAY DIRECTOR 1.00 3.00 X 0 0 0 JONATHAN PALMER DIRECTOR 1.00 3.50 X 0 0 0 MICHAEL RAICH DIRECTOR 1.00 3.00 X 0 0 0 ELAINE RASMUSSEN DIRECTOR 1.00 3.00 X 0 0 0 NICHOLAS WILKIE DIRECTOR 1.00 3.00 X 0 0 0 TOM KELLER BOARD MEMBER EMERITUS 0.10 0.10 X 0 0 0 RACHEL WOBSCHALL BOARD MEMBER EMERITUS 0.50 0.50 X 0 0 0 0 1008811 72029 0 0 1 0 MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE SUITE 100 MINNEAPOLIS MN 55413 MANAGEMENT SERVICES 2469022 EXPRESS SERVICES INC 414 WEST SUPERIOR ST SUITE 411 DULUTH MN 55802 TEMP AGENCY PROVIDING TEMPORARY LABOR 550559 THE DPI GROUP 4950 NE MARTIN LUTHER KING JR BLVD PORTLAND OR 97211 TEMP AGENCY PROVIDING TEMPORARY LABOR 527900 ALWAYS THERE STAFFING INC 3131 1ST AVENUE SUITE B HIBBING MN 55746 TEMP AGENCY PROVIDING TEMPORARY LABOR 384039 4 6745678 6745678 6745678 0 0 0 X 2019887 2019887 30230 30230 505875 505875 146065 146065 2469022 2469022 1133075 1133075 20522 20522 178805 178805 8768 8768 152382 152382 30 30 COST OF GOODS SOLD 771860 771860 SOURCE AMERICA FEES 224408 224408 EQUIPMENT RENTAL 3973 3973 7664902 5195880 2469022 0 2613622 860825 172048 258749 2990957 2801071 234466 189886 20198804 20990256 23218940 22299716 0 0 X 23218940 22299716 23218940 22299716 23218940 22299716 -919224 0 X X 0 1 X 1 0 X 11202757 10791580 4682368 5835397 6745678 39257780 11202757 10791580 4682368 5835397 6745678 39257780 39257780 39257780 1.00000 1.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 338284 284333 53951 2652673 2516738 135935 189886 INTERCOMPANY RECEIVABLE 20990256 20990256 X PART X, LINE 2: MDI GOVERNMENT SERVICES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, MDI GOVERNMENT 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 0 1 0 1 0 0 PETER MCDERMOTT PRESIDENT & CEO 0 228472 0 6786 0 1604 0 6615 0 4220 0 247697 0 0 RODNEY L WOOD VP OPERATIONS 0 174061 0 5193 0 1578 0 5515 0 12183 0 198530 0 0 BARBARA MAJERUS VP SALES 0 126749 0 20620 0 878 0 4719 0 23578 0 176544 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 PETER MCDERMOTT $6,615 ROD WOOD $5,515 BARBARA MAJERUS $4,719 MARVIN HANNON $3,966 PART I, LINE 5 BARBARA MAJERUS, VP OF SALES, RECEIVED COMPENSATION IN 2019 FOR COMMERCIAL SALES GROWTH THAT OCCURRED IN 2018 FROM MDI COMMERCIAL SERVICES, A RELATED ORGANIZATION. IN ADDITION, MS. MAJERUS ACCRUED INCENTIVE COMPENSATION FOR 2019 COMMERCIAL SALES GROWTH FROM MDI COMMERCIAL SERVICES, A RELATED ORGANIZATION THAT WILL BE PAID OUT IN 2020. 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 OF MINNESOTA DIVERSIFIED INDUSTRIES, INC., A RELATED ORGANIZATION: (1) SEMI-ANNUAL FINANCIAL PERFORMANCE AND (2) MISSION ACHIEVEMENT BASED ON THE NUMBER OF EMPLOYEES EMPLOYED WITH DISABILITIES. THE SECOND HALF YEAR DISCRETIONARY BONUS FOR 2018 WAS ACCRUED IN 2018 BUT WAS APPROVED BY THE BOARD OF DIRECTORS AND PAID OUT IN 2019. THE FIRST HALF YEAR DISCRETIONARY BONUS FOR 2019 WAS APPROVED BY THE BOARD OF DIRECTORS AND PAID OUT IN 2019. THE SECOND HALF DISCRETIONARY BONUS FOR 2019 WAS ACCRUED IN 2019 AND APPROVED BY THE BOARD OF DIRECTORS TO BE PAID OUT IN 2020. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: MDI GOVERNMENT SERVICES IS ONE OF FOUR RELATED NONPROFIT CORPORATIONS, WHICH ALSO INCLUDE MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI COMMERCIAL 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 1, 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 TO 600 BY THE END OF FY2021. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR OF THE BOARD, VICE CHAIR, TREASURER AND PAST CHAIR. THE EXECUTIVE COMMITTEE SHALL HAVE ALL OF 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 7A THE DIRECTORS ELECTED TO THE BOARD OF DIRECTORS OF MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI COMMERCIAL SERVICES; AND MDI HIRED HANDS, ALL RELATED ORGANIZATIONS, ARE ALSO ELECTED TO THE BOARD OF DIRECTORS OF MDI GOVERNMENT SERVICES. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF FORM 990 WILL BE REVIEWED AND APPROVED BY THE FINANCE 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 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 1,133,075. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,133,075. FORM 990, PART XII, LINE 2C THE ORGANIZATION HAS NOT CHANGED ITS OVERSIGHT PROCESS SINCE 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 COMMERCIAL SERVICES 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411801498 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 12C, III-FI 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