2020-11-12T11:28:23-06:00 2020-06-30 251622758 MAHER DUESSEL CPAS 503 MARTINDALE STREET SUITE 600 PITTSBURGH PA 15212 990 2019-07-01 251642318 AADVANTAGE INC AADV 7247453010 470 JOHNSON ROAD SUITE 200 WASHINGTON PA 15301 KENNETH R PEPPERNEY PRESIDENT 7247453010 2020-11-12 1 JEFFREY W KENT P01342557 4125355500 209.170.230.42 2020-11-12 11:28:19 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A3AB32173C7A69D3BBEBCC9548A53DE897A3C8FF 2019 2021-01-29 14:40:06Z EDWARD PICCHIARINI 470 JOHNSON ROAD SUITE 200 WASHINGTON PA 15301 3857051 0 X ARCHUMANSERVICES.ORG X 1991 PA AADVANTAGE, INC. IS THE PARENT ORGANIZATION PROVIDING HUMAN RESOURCES MANAGEMENT, FISCAL MANAGEMENT, AND INFORMATION TECHNOLOGY MANAGEMENT TO AFFILIATE ORGANIZATIONS WHICH PROMOTE THE INCLUSION OF DEVELOPMENTALLY CHALLENGED CITIZENS IN EVERYDAY COMMUNITY LIFE AND TEACH INDIVIDUALS SKILLS SO THAT THEY MAY LIVE AND WORK IN THE COMMUNITY. 6 6 23 8 0 0 100000 0 3304670 3856974 52 71 675 6 3405397 3857051 0 0 0 0 2456775 3386707 0 0 0 817892 440267 3274667 3826974 130730 30077 459988 1464033 277074 1251042 182914 212991 X AADVANTAGE, INC. IS THE PARENT ORGANIZATION PROVIDING HUMAN RESOURCES MANAGEMENT, FISCAL MANAGEMENT, AND INFORMATION TECHNOLOGY MANAGEMENT TO AFFILIATE ORGANIZATIONS WHICH PROMOTE THE INCLUSION OF DEVELOPMENTALLY CHALLENGED CITIZENS IN EVERYDAY COMMUNITY LIFE AND TEACH INDIVIDUALS SKILLS SO THAT THEY MAY LIVE AND WORK IN THE COMMUNITY. 0 0 2550691 3856976 PROVIDED HUMAN RESOURCES MANAGEMENT, FISCAL MANAGEMENT, AND INFORMATION TECHNOLOGY MANAGEMENT TO TWO AFFILIATED 501(C)(3) NON-PROFIT ORGANIZATIONS, PLUS ONE AFFILIATED FOR-PROFIT CORPORATION. EACH ENTITY PROMOTES THE INCLUSION OF DEVELOPMENTALLY CHALLENGED CITIZENS IN EVERYDAY LIFE AND TEACHES INDIVIDUALS SKILLS SO THAT THEY MAY LIVE AND WORK IN THE COMMUNITY. 2550691 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 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 1 0 0 0 1 9 0 23 1 0 0 0 0 0 0 0 0 0 0 0 0 X 6 6 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X JOHN EYTH 7247453010 470 JOHNSON ROAD SUITE 200 WASHINGTON PA 15301 KENNETH R PEPPERNEY PRESIDENT 2.00 X X 0 0 0 AMY PARE VICE PRESIDENT (UNTIL SEPTEMBER) 2.00 X X 0 0 0 TIMOTHY PAWOL VICE PRESIDENT (UNTIL MAY 2020) 2.00 X X 0 0 0 ROBERT CHUEY TREASURER 2.00 X X 0 0 0 MARCELLE SCOTT SECRETARY 2.00 X 0 0 0 DR SARAH KOHL DIRECTOR 2.00 X 0 0 0 MARGARET URBAS DIRECTOR 2.00 X 0 0 0 GLEN COMER DIRECTOR 2.00 X 0 0 0 EDWARD PICCHIARINI CEO 40.00 X 351460 0 21847 JOSEPH SCRIP CAO 40.00 X 267499 0 23588 JOHN EYTH CFO 40.00 X 185960 0 9630 804919 0 55065 3 0 1 0 K&L GATES LLP PO BOX BOSTON MA 02284 LEGAL SERVICES 201454 1 0 MGMT SERVICES-ARC HUMA 624410 3799727 3799727 MGMT SERVICES-GREENE A 624410 30000 30000 MGMT SERVICES-ARC OF W 624410 14026 14026 MGMT SERVICES-LIFE MAN 624410 13221 13221 3856974 71 71 MISCELLANEOUS INCOME 900099 6 6 6 3857051 3856980 0 71 868705 860018 8687 1000000 1000000 1246808 1246808 162312 162312 108882 108882 126424 126424 11091 11091 43011 43011 13575 13575 9860 9860 20145 20145 109416 1151 108265 12495 12495 4978 4978 43395 21579 21816 EQUIPMENT RENTAL AND MA 20155 20155 FOOD AND SUPPLIES 14980 14980 MISCELLANEOUS 7084 7084 DUES AND SUBSCRIPTIONS 1783 1783 1875 1875 3826974 2550691 1276283 0 139182 190361 309594 1267439 39343 33110 11212 6233 459988 1464033 277074 251042 0 1000000 277074 1251042 X 182914 212991 182914 212991 459988 1464033 30077 0 X X 0 1 X 1 0 X X 2 ARC HUMAN SERVICES INC 251663522 7 1 0 0 THE ARC WASHINGTON COUNTY INC 800448633 7 1 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 X 1 1 PART VI, SECTION E, LINE 3A: APPOINT/ELECT OFFICERS FOR EACH SUPPORTED ORGANIZATION PRUSUANT TO THE BYLAWS OF EACH SUPPORTED ORGANIZATION, AADVANTAGE, INC. HAS THE POWER TO ELECT AND REMOVE ALL OF THE DIRECTORS AND OFFICERS OF EACH SUPPORTED ORGANIZATION. PART IV, SECTION E, LINE 3B: AADVANTAGE, INC. EXERCISES A SUBSTANTIAL DEGREE OF DIRECTION OVER POLICIES, PROGRAMS, AND ACTIVITIES OF EACH OF ITS SUPPORTED ORGANIZATIONS THROUGH ITS POWER TO ELECT AND REMOVE ALL DIRECTORS AND OFFICERS, APPROVE ANNUAL BUDGETS, AND CREATE CERTAIN UNBUDGETED EXPENDITURES, AND TO APPROVE FUNDAMENTAL CHANGE TRANSACTIONS, AND THROUGH ITS PROVISIONS OF MANAGEMENT SERVICES, STRATEGIC PLANNING, AND SYSTEM-WIDE POLICIES TO ITS SUPPORTED ORGANIZATION. 39343 33110 6233 6233 LEGAL SETTLEMENT 1000000 1000000 PART X, LINE 1: IN JUNE 2018, THE FORMER CHIEF EXECUTIVE OFICER OF AADVANTAGE, INC. FILED A CIVIL COMPLAINT AGAINST AADVANTAGE, INC. ALLEGING BREACH OF CONTRACT. THE TWO PARTIES ENGAGED IN SETTLEMENT DISCUSSIONS, WITH AN AGREEMENT REACHED IN JULY 2020. THE TOTAL SETTLEMENT TO THE FORMER CHIEF EXECUTIVE OFFICER OF AADVANTAGE, INC. IS $1,150,000. OF THE TOTAL SETTLEMENT AMOUNT, AADVANTAGE, INC. IS PAYING $1,000,000 AND THE INSURANCE CARRIER $150,000. LEGAL SETTLEMENT EXPENSE REFLECTED IN PART IX - STATEMENT OF FUNCTIONAL EXPENSES, LINE 6 IS $1,000,000. THE LIABILITY OF $1,000,000 IS REFLECTED IN PART X - BALANCE SHEET, LINE 25 - OTHER LIABILITIES. X X X 0 0 0 0 0 0 0 1 0 EDWARD PICCHIARINI CEO 350000 0 1460 0 0 0 0 0 21847 0 373307 0 0 0 JOSEPH SCRIP CAO 266039 0 1460 0 0 0 0 0 23588 0 291087 0 0 0 JOHN EYTH CFO 184500 0 1460 0 0 0 0 0 9630 0 195590 0 0 0 PART I, LINE 7 DURING 2019, EDWARD PICCHIARINI. CEO OF AADVANTAGE,INC. RECEIVED NON-FIXED PAYMENT BONUSES OF $1,460, JOSEPH SCRIP, CAO OF AADVANTAGE, INC. RECEIVED NON-FIXED PAYMENT BONUSES OF $1,460, AND JOHN EYTH, CFO OF AADVANTAGE, INC. RECEIVED NON-FIXED PAYMENT BONUSES OF $1,460. THE BONUSES WERE AWARDED BY AADVANTAGE, INC. TO ALL ELIGIBLE STAFF, INCLUDING THE CEO, CAO, AND CFO, BASED ON THE STATUS OF FULL TIME OR PART TIME EMPLOYMENT. THE BONUSES WERE AWARDED BASED ON THE PERFORMANCE OF THE ORGANIZATION CONSIDERING BOTH FINANCIAL GROWTH AND ACCOMPLISHMENTS. FORM 990, PART VI, SECTION B, LINE 11B A COPY OF THE FORM 990 WAS SUPPLIED TO ALL BOARD MEMBERS FOR REVIEW AND DISCUSSION PRIOR TO SIGNING AND SUBMISSION OF THE FORM. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION FOLLOWS A CONFLICT OF INTEREST POLICY ("POLICY") THAT APPLIES TO DIRECTORS, OFFICERS, EXECUTIVE EMPLOYEES, AND OTHER EMPLOYEES DETERMINED TO EXERCISE SUBSTANTIAL INFLUENCE OVER THE OPERATIONS OF THE ORGANIZATION ("COVERED PERSONS"). PER THE POLICY, NO COVERED PERSONS MAY ENGAGE IN ANY TRANSACTION OR ARRANGEMENT OR UNDERTAKE POSITIONS WITH OTHER ORGANIZATIONS THAT INVOLVE A CONFLICT OF INTEREST, EXCEPT IN COMPLIANCE WITH THE POLICY. EVERY COVERED PERSON IS REQUIRED TO DISCLOSE ALL ACTUAL AND POTENTIAL CONFLICTS THROUGH AN ANNUAL WRITTEN DISCLOSURE STATEMENT AND AS MATTERS INVOLVING AN ACTUAL OR POTENTIAL CONFLICT ARISE. THE BOARD WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION OR ARRANGEMENT GIVING RISE TO THE POTENTIAL CONFLICT TO DETERMINE WHETHER THEY INVOLVED ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION OR ARRANGEMENT. A COVERED PERSON WHO HAS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH THE BOARD OF DIRECTORS OR A COMMITTEE IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE A PRESENTATION TO THE BOARD OR COMMITTEE TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. SUBJECT TO THE LIMITATION DESCRIBED BELOW, THE ORGANIZATION MAY ENTER INTO A TRANSACTION OR ARRANGEMENT IN WHICH A COVERED PERSON HAS AN ACTUAL CONFLICT OF INTEREST IF A MAJORITY OF DIRECTORS WHO HAVE NO INTEREST IN THE TRANSACTION OR ARRANGEMENT APPROVE THE TRANSACTION OR ARRANGEMENT AT A BOARD OR COMMITTEE MEETING AFTER DETERMINING THAT THE TRANSACTION OR ARRANGEMENT IS FAIR AND REASONABLE TO THE ORGANIZATION, ANY COVERED PERSON WHO HAS A CONFLICT WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING SUCH TRANSACTION OR ARRANGEMENT (EXCEPT THAT THE COVERED PERSON MAY APPEAR AT A MEETING TO ANSWER QUESTIONS), AND IF THE TRANSACTION OR ARRANGEMENT INVOLVES COMPENSATION OR OTHER FINANCIAL BENEFIT TO THE COVERED PERSON, THE BOARD RELIES ON APPROPRIATE COMPARABILITY DATA TO DETERMINE REASONABLENESS. THE ORGANIZATION WILL DOCUMENT THE FOREGOING IN THE MINUTES OF THE BOARD AND COMMITTEE MEETINGS, AS APPLICABLE. NOTWITHSTANDING THE FOREGOING, THE POLICY PROHIBITS THE ORGANIZATION FROM ENTERING INTO ANY TRANSACTION PROVIDING FOR THE PAYMENT OF COMPENSATION BY THE ORGANIZATION OR ITS AFFILIATES TO A DIRECTOR OF THE ORGANIZATION OR ITS AFFILIATES, HIS/HER SPOUSE, OR AN ENTITY 35% CONTROLLED BY THE DIRECTOR OR HIS/HER SPOUSE. EACH COVERED PERSON MUST SIGN A STATEMENT ACKNOWLEDGING THAT HE OR SHE HAS RECEIVED A COPY OF THE POLICY, HAS READ AND UNDERSTANDS IT, AND HAS AGREED TO COMPLY WITH IT. IF THE BOARD OF DIRECTORS HAS REASONABLE CAUSE TO BELIEVE THAT A COVERED PERSON HAS FAILED TO COMPLY WITH THE POLICY, THE BOARD MAY COUNSEL THE COVERED PERSON REGARDING SUCH FAILURE AND, IF THE ISSUE IS NOT RESOLVED TO THE BOARD'S SATISFACTION, MAY CONSIDER ADDITIONAL CORRECTIVE ACTION, AS APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS HIRED A CONSULTANT TO CONDUCT A COMPENSATION STUDY FOR MANAGEMENT POSITIONS. A FEW YEARS AGO, THE COMPARABILITY DATA OF THE AREA AND INDUSTRY, AS PROVIDED IN THE COMPENSATION STUDY, WAS UTILIZED IN THE REVIEW OF THE COMPENSATION OF MANAGEMENT POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST STATEMENTS ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. ARC HUMAN SERVICES 470 JOHNSON ROAD SUITE 200 WASHINGTON PA 15301 251663522 SEE PART VII PA 501C LINE 7 AADVANTAGE INC 1 THE ARC WASHINGTON COUNTY INC 470 JOHNSON ROAD SUITE 200 WASHINGTON PA 15301 800448633 SEE PART VII PA 501C LINE 7 AADVANTAGE INC 1 LIFE MANAGEMENT CONSULTANTS INC 561 WALLACE RUN ROAD BEAVER FALLS PA 15010 251370753 COM. LIVING PA ARC HS C 15520 861728 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 ARC HUMAN SERVICES INC L 3799727 THE ARC WASHINGTON COUNTY INC L 14025 PART II LINE 3 IDENTIFICATION OF TAX-EXEMPT ORGANIZATIONS NAME OF RELATED ORGANIZATION: ARC HUMAN SERVICES, INC. PRIMARY ACTIVITY: PROVIDE RESEDENTIAL, VOCATIONAL, AND COMMUNITY BASED SERVICES TO INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES PART II LINE 3 IDENTIFICATION OF RELATED TAX EXEMPT ORGANIZATIONS NAME OF RELATED ORGANIZATION: THE ARC WASHINGTON COUNTY, INC. PRIMARY ACTIVITY: PROVIDE ADVOCACY, ASSISTANCE AND ACCESSIBILITY IN RECEIVING SERVICES FOR INDIVIDUALS WITH DISABILITIES AND THEIR FAMILIES.