2019-05-15T10:36:33-05:00 2018-12-31 271235638 MCM CPAS & ADVISORS LLP 462 S FOURTH ST SUITE 2600 LOUISVILLE KY 402023445 990 2018-01-01 610475284 GOODWILL INDUSTRIES OF KY INC GOOD 5022721700 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 AMY LUTTRELL PRESIDENT 5022721700 2019-04-23 1 REBECCA L PHILLIPS CPA P00024055 5027491900 2019-04-17 69.135.99.226 2019-04-23 13:48:59 ED P CC1BBD0C84F1D051367C4CBB95024B5471C4A276 136EA7FF918DAEC5C06C4E79C5D4F419F23741BB 2018 2019-02-21 02:37:17Z AMY LUTTRELL 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 64251639 0 X WWW.GOODWILLKY.ORG X 1923 KY TO HELP PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES ACHIEVE AND MAINTAIN EMPLOYMENT TO GAIN A BETTER QUALITY OF LIFE THROUGH JOB CREATION, PLACEMENT, AND OTHER TRAINING. 12 12 2746 1287 0 0 4746494 19505166 11082957 43399482 147679 832286 11230 222312 15988360 63959246 3075 126526 0 0 10122437 39548903 0 0 669017 4991403 18733242 15116915 58408671 871445 5550575 130328276 131407332 33029435 30690949 97298841 100716383 X GOODWILL'S MISSION IS TO HELP PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES ACHIEVE AND MAINTAIN EMPLOYMENT TO GAIN A BETTER QUALITY OF LIFE. 0 0 36722205 30000 35408489 GOODWILL INDUSTRIES OF KENTUCKY, INC.'S RETAIL PROGRAM HELPS PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES OBTAIN AND MAINTAIN EMPLOYMENT AT ONE OF ITS 65 STORES THROUGHOUT KENTUCKY BY PROVIDING EMPLOYMENT AND TRAINING OPPORTUNITIES. OVER 739 INDIVIDUALS WERE SERVED AND MORE THAN $9.2 MILLION WAS PAID IN MISSION-RELATED WAGES BY THE RETAIL PROGRAM. THE STORES SELL A VARIETY OF DONATED MERCHANDISE (DONATED BY THE GENERAL PUBLIC AND BUSINESSES) TO THE COMMUNITY AT DISCOUNTED PRICES TO DIVERT ITEMS FROM LOCAL LANDFILLS AND SUPPORT GOODWILL'S MISSION TO PUT KENTUCKIANS TO WORK. THE STORES GENERATED FUNDING TO SUPPORT EMPLOYMENT COUNSELING, EDUCATIONAL PROGRAMS, AND JOB TRAINING SERVICES THROUGH THE GOODWILL WORKS PROGRAM. DURING 2018, 1,147 PEOPLE WERE SERVED THROUGH THIS PROGRAM. 5949343 96526 2021369 GOODWILL INDUSTRIES OF KENTUCKY, INC.'S SPECIALIZED WORKFORCE DEVELOPMENT PROGRAMS DELIVERED JOB PLACEMENT AND RETENTION SERVICES, COUNSELING, SKILLS TRAINING, ASSESSMENTS, AND JOB COACHING TO PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES, ADVANCING THEIR VOCATIONAL OPPORTUNITIES, AND ASSISTING THEM IN OBTAINING AND MAINTAINING EMPLOYMENT. THESE SPECIALIZED PROGRAMS MADE 2,769 JOB PLACEMENTS, DELIVERED 10,301 SERVICES, AND PROVIDED INFORMATION AND SERVICE REFERRALS TO 1,273 PEOPLE WHO CONTACTED GOODWILL FOR ASSISTANCE. 1558026 1322593 GOODWILL INDUSTRIES OF KENTUCKY, INC., OPERATES TWO FULL-SERVICE STAFFING LOCATIONS IN KENTUCKY, HELPING PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES FIND TEMPORARY JOBS WITH THE ULTIMATE GOAL OF FULL-TIME EMPLOYMENT. THE PROGRAM, GOODWORKS STAFFFING, SERVES RECENT IMMIGRANTS, EX-OFFENDERS, AND PEOPLE WHO EXPERIENCE HOMELESSNESS OR HAVE DISABILITIES, LIMITED EDUCATION OR WORK HISTORY, OR OTHER DISADVANTAGES THAT AFFECT THEIR ABILITY TO OBTAIN AND MAINTAIN EMPLOYMENT. EMPLOYMENT AT GOODWORKS STAFFING ENABLES THESE INDIVIDUALS TO EARN WAGES, GAIN WORK EXPERIENCE, AND EXPERIENCE A VARIETY OF EMPLOYMENT OPPORTUNITIES. GOODWORKS STAFFING PROVIDED 131 SERVICES AND 131 PLACEMENTS WHILE PAYING OVER $569,000 IN MISSION-RELATED WAGES. 1408493 1411348 GOODWILL INDUSTRIES OF KENTUCKY, INC. (GOODWILL) EMPLOYS PERSONS TO PROVIDE JANITORIAL AND CUSTODIAL SERVICES UNDER CONTRACTS. THESE SERVICES ARE PERFORMED WITH A WORKFORCE COMPRISED OF MORE THAN 85% OF PERSONS WITH SIGNIFICANT DISABILITIES. THIS PROGRAM IS CONSISTENT WITH GOODWILL'S MISSION. THESE CONTRACTS EMPLOYED 29 PERSONS, AND PAID $621,638 IN MISSION-RELATED WAGES. 1064980 845707 GOODWILL INDUSTRIES OF KENTUCKY, INC. CARS TO WORK PROGRAM HELPS PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES OBTAIN AFFORDABLE TRANSPORTATION TO ACHIEVE AND MAINTAIN EMPLOYMENT. THE VEHICLES IN THE PROGRAM ARE USED VEHICLES, PURCHASED BY OR DONATED TO CARS TO WORK. THOSE VEHICLES THAT ARE NOT SUITABLE FOR USE DIRECTLY BY MISSION-RELATED CLIENTS FOR WORK COMMUTING PURPOSES ARE SOLD AT THE CARS TO WORK AUTO AUCTION. CARS TO WORK SELLS USED VEHICLES TO REFERRED, MISSION-RELATED CLIENTS AT PRICE BELOW NADA VALUE WITH A WARRANTY FOR THE DURATION OF THE LOAN AND REIMBURSES LOAN INTEREST AT THE END OF THE LOAN TERM. PARTICIPANTS IN THE PROGRAM MUST BE REFERRED BY A QUALIFIED SOCIAL SERVICE AGENCY. TRANSPORTATION HELPS THESE MISSION-RELATED CLIENTS KEEP THEIR CURRENT JOB OR OBTAIN BETTER EMPLOYMENT TO SIGNIFICANTLY INCREASE THEIR INCOME. FAMILIES ARE ALSO ENRICHED BY ACCESS TO TRANSPORTATION AS CLIENTS' CHILDREN MAY BE ABLE TO PARTICIPATE IN AFTER-SCHOOL ACTIVITIES, PERHAPS FOR THE FIRST TIME. IN ADDITION, CLIENTS HAVE THE OPPORTUNITY TO BUILD THEIR CREDIT RATING AND IMPROVE THEIR CREDIT SCORE. PROGRAM PARTICIPANTS ALSO HAVE ACCESS TO COUNSELING AND GUIDANCE TO HELP THEM PROPERLY BUDGET FOR AND MAINTAIN THEIR VEHICLE TO IMPROVE THEIR CHANCES FOR EMPLOYMENT SUCCESS. DURING 2018, 38 VEHICLES WERE PROVIDED TO PROGRAM PARTICIPANTS THROUGH THE CARS TO WORK PROGRAM. 92564 41466 GOODWILL INDUSTRIES OF KENTUCKY, INC. PROVIDES JOB OPPORTUNITIES AND TRAINING IN JANITORIAL SERVICES FOR PEOPLE WITH DISABILITIES OR OTHERDISADVANTAGES THROUGH COMMERCIAL CONTRACTS. 2434476 2348510 GOODWILL INDUSTRIES OF KENTUCKY, INC. SENIOR COMMUNITY EMPLOYMENT SERVICE PROGRAM (SCSEP) THROUGH A NATIONAL DEPARTMENT OF LABOR (DOL) GRANT IS DESIGNED TO LINK LOW-INCOME, OLDER WORKERS TO ON-THE-JOB TRAINING THAT CAN HELP THEM MOVE INTO PAID EMPLOYMENT. THROUGH SCSEP, GOODWILL MATCHES ELIGIBLE INDIVIDUALS AGE 55 AND OLDER WITH NONPROFITS OR PUBLIC AGENCIES FOR ON-THE-JOB TRAINING IN A PROFESSIONAL WORK ENVIRONMENT, PAID BY THE SCSEP PROGRAM. THE SCSEP PROGRAM MADE 260 JOB PLACEMENTS, AND PROVIDED 3,742 SERVICES, WHILE PAYING OVER $1,933,000 IN MISSION-RELATED WAGES. 5000513 4647031 49230087 1 0 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 126 0 1 2746 1 0 0 0 0 0 0 0 0 0 1 0 0 0 X 12 12 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X X MARK HOHMANN CFO 5022721700 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 DANIEL HALL CHAIRPERSON 1.00 X X 0 0 0 CHARLES J KANE VICE CHAIRPERSON 1.00 X X 0 0 0 JASON GRONECK SECRETARY 1.00 X X 0 0 0 JEANNA JONES TREASURER 1.00 X X 0 0 0 LINDA SCHOLLE COWAN IMMEDIATE PAST CHAIR 1.00 X 0 0 0 CHARLES F LAMBERT III BOARD MEMBER 1.00 X 0 0 0 DWIGHT L HAYGOOD JR BOARD MEMBER 1.00 X 0 0 0 TED SMITH BOARD MEMBER 1.00 X 0 0 0 WILLIAM STOUT BOARD MEMBER 1.00 X 0 0 0 DEBRA MURPHY BOARD MEMBER 1.00 X 0 0 0 DOUGLAS EDWARDS BOARD MEMBER 1.00 X 0 0 0 DWIGHT JOHNSON BOARD MEMBER 1.00 X 0 0 0 TOM KMIECIK BOARD MEMBER (TERM ENDED 9/30/18) 1.00 X 0 0 0 PAUL O'FLYNN BOARD MEMBER (TERM ENDED 7/31/18) 1.00 X 0 0 0 FAITH P MERCKE BOARD MEMBER (TERM ENDED 1/31/18) 1.00 X 0 0 0 AMY LUTTRELL PRESIDENT & CEO 40.00 X 392251 0 99484 MARK HOHMANN CHIEF FINANCIAL OFFICER 40.00 X 175595 0 11918 RENA SHARPE CHIEF OPERATING OFFICER 40.00 X 210337 0 20993 JOHN WADE END DATE 12718 VICE-PRESIDENT WEST RETAIL 40.00 X 39906 0 2657 JOSHUA PIERCEEND DATE 12718 VICE-PRESIDENT EAST RETAIL 40.00 X 12197 0 2202 LORI COLLINS END DATE 72418 VICE-PRESIDENT EAST PROG SERV 40.00 X 123816 0 17335 MARSHA BERRY VICE-PRESIDENT PROGRAM SERVICES 40.00 X 188093 0 23736 DAVID COBB VICE-PRESIDENT HUMAN RESOURCES & EXTERNAL AFFAIRS 40.00 X 205914 0 23821 JEFF GRAMMER DIRECTOR OF INFORMATION TE 40.00 X 115862 0 8551 PAUL FALKENSTEIN DIRECTOR OF LOGISTICS AND 40.00 X 120528 0 8456 TROY LANDOCH HR LEADER 40.00 X 109523 0 5407 LENNEA WOOTEN DIRECTOR WEST RETAIL 40.00 X 105082 0 25543 JOHN BARNETT DIRECTOR FACILITIES MANAGEMENT 40.00 X 102288 0 23194 1901392 0 273297 11 0 1 0 MIRANDA CONSTRUCTION LLC 828 SOUTH 6TH ST LOUISVILLE KY 40203 CONSTRUCTION/GENERAL CONTRACTING 1537193 ULTIMATE SOFTWARE PO BOX 930953 ATLANTA GA 311930953 HR INFORMATION SYSTEM/PR PROCESSING 533256 WORLDWIDE HAGERTY DBA KYK MARKETING & P 2600 CONSTANT COMMENT PLACE LOUISVILLE KY 40299 ADVERTISING BUYING & PR CONSULTING 123390 3 7750 695409 18802007 18312190 19505166 NET RETAIL STORES SALE 453310 35455881 35455881 WORKFORCE DEVELOPMENT 624310 4369727 4369727 CONTRACT REVENUE 561700 2775407 2775407 NET CAR SALES 453310 798467 798467 43399482 1067250 1067250 8000 0 8000 8000 8000 50 26 234988 24 -234988 -234964 -234964 104610 7750 57379 47231 47231 MISCELLANEOUS REVENUE 900099 167081 167081 167081 63959246 43399482 0 1054598 30000 30000 96526 96526 1550301 409987 1082880 57434 30714560 27112153 3437817 164590 589272 466347 114505 8420 3955935 3298938 641698 15299 2738835 2441493 281615 15727 93880 93880 52422 52422 12035 12035 76767 76767 1333395 929907 382271 21217 760206 261620 128805 369781 1617468 1359772 256481 1215 649539 397053 251760 726 6105277 5899865 203689 1723 1535365 1366822 160329 8214 676256 676256 3342691 2977538 363993 1160 MISCELLANEOUS 1066063 1023750 41642 671 IMPAIRMENT LOSS 603984 603984 EQUIPMENT RENTAL AND MA 319639 246025 73614 0 MEMBERSHIPS & DUES 209971 26345 183426 200 278284 209690 65954 2640 58408671 49230087 8509567 669017 4321256 5492597 2377481 2300816 734788 910650 735913 1411475 2664849 2664958 783869 929864 108710542 32708455 72098018 76002087 46262748 41350917 296030 290644 53324 53324 130328276 131407332 4483616 3841863 27998510 26262655 547309 586431 33029435 30690949 X 97119336 100537970 125570 124478 53935 53935 97298841 100716383 130328276 131407332 5550575 -2135317 2284 0 X X 0 1 X 1 1 1 X 7132566 17052649 18718984 4746494 19505166 67155859 7132566 17052649 18718984 4746494 19505166 67155859 67155859 149317 227750 346936 152759 1075250 1952012 26886 15933 69383 6180 167081 285463 69393334 178149015 0.96780 0.97990 X PART II, SHORT YEAR EXPLANATION: TO CHANGE THE FISCAL YEAR END TO A CALENDAR YEAR END 2017 WAS A SHORT YEAR. 0 1 0 0 0 0 0 0 1 7455 7455 0 PART II-B, LINE 1: DEVELOPMENT AND GENERATION OF SUPPORT FOR: 1) LEGISLATION DESIGNED TO FOSTER EMPLOYMENT OF PERSONS WITH DISABILITIES OR OTHER DISADVANTAGES AT THE STATE AND FEDERAL LEVELS OF GOVERNMENT. 2) LEGISLATION INCREASING SUPPORT FOR ADULT EDUCATIONAL OPPORTUNITIES IN KENTUCKY. 260310 20000000 -1425739 8552 18826019 258018 2292 260310 239752 29127 10861 258018 102091 172677 4131 39147 239752 104263 -3226 1054 102091 0.99640 0.00290 0.00070 1 0 1860990 21363003 23223993 57941141 16800403 41140738 16133424 12267553 3865871 11411984 3640499 7771485 76002087 L-T UI RESERVE 273731 DEFERRED COMPENSATION 312700 586431 X PART V, LINE 4: THE PERMANENT ENDOWMENT IS MADE UP OF TWO COMPONENTS. BOTH PROVIDE INVESTMENT GROWTH AND INCOME FUNDS THAT ARE TO BE USED TOWARDS 1) TUITION FOR SCHOLARSHIP ASSISTANCE FOR PERSONS WITH DISABILITIES; AND 2) OPERATIONAL NEEDS THAT ASSIST IN THE FULFILLMENT OF THE COMPANY'S MISSION. PART X, LINE 2: GOODWILL INDUSTRIES OF KENTUCKY, INC. AND SUBSIDIARIES ARE EXEMPT FROM INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. GOODWILL INDUSTRIES WORKS, LLC AND GOODWILL OF KENTUCKY TEMPORARY SERVICES, LLC ARE SINGLE-MEMBER LIMITED LIABILITY COMPANIES AND CONSIDERED DISREGARDED ENTITIES FOR TAX PURPOSES. GOODWILL RECOGNIZES UNCERTAIN INCOME TAX POSITIONS USING THE "MORE-LIKELY-THAN-NOT" APPROACH AS DEFINED IN THE ASC. NO LIABILITY FOR UNCERTAIN TAX POSITIONS HAS BEEN RECORDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. ART OF GOODWILL 112360 7750 104610 12484 17734 27161 112360 7750 104610 12484 17734 27161 57379 47231 0 PALMETTO GOODWILL 2150 EAGLE DR BLDG 100 NORTH CHARLESTON SC 29406 474183942 501(C)(3) 10000 HURRICANE RELIEF GOODWILL INDUSTRIES - BIG BEND 300 MABRY ST TALLAHASSEE FL 323043899 591279499 501(C)(3) 10000 HURRICANE RELIEF GOODWILL INDUSTRIES INTERNATIONAL PO BOX 791084 BALTIMORE MD 212791084 530196517 501(C)(3) 10000 CALIFORNIA WILD FIRES 3 0 CASH AWARDS FOR PERFECT PROGRAM ATTENDANCE AND EDUCATIONAL ACHIEVEMENT 116 25075 JOB SHADOWING 38 22393 REIMBURSE INTEREST PAYMENTS 20 2677 GOODWILL CLOTHING VOUCHERS FOR PROGRAM PARTICIPANTS 147 4473 PURCHASE PRICE PURCHASE OF CLOTHING, IDENTIFICATION CARDS, MEDICAL EXPENSES, DENTAL EXPENSES, AND PERSCRIPTION. HOUSING ASSISTANCE 47 6965 INVOICE RENT ASSISTANCE TO PROGRAM PARTICIPANTS UPON RECEIVING A JOB UNTIL PARTICIPANT BEGINS RECEIVING PAY CHECK. LEGAL ASSISTANCE 272 16673 INVOICE GOODWILL HOSTED EXPUNGEMENT CLINICS BY PROVIDING LEGAL AID ASSISTANCE TO PROGRAM PARTICIPANTS. THIS PROVIDED STEPS TO HELP PROGRAM PARTICIPANTS CLEAR THEIR RECORD, WHICH CAN BE A BARRIER TO EMPLOYMENT. CLOTHING, MEDICAL/PRESCRIPTION, GAS CARDS 20 1320 PURCHASE PRICE CLOTHING , TRANSPORTATION, MEDICAL EXPENSES, AND PRESCRIPTION ASSISTANCE TO SCSEP PARTICIPANTS. CLOTHING, WORK BOOTS, IDENTIFICATIONS 40 4109 PURCHASE PRICE CLOTHING, WORK BOOTS, IDENTIFICATION CARDS, ASSISTANCE WITH VEHICLE REPAIRS, AND UTILITIES TO PROGRAM PARTICIPANTS AND EMPLOYEES. LIFE LAUNCH PROGRAM-NEEDS BASED 126 6086 PURCHASE PRICE CLOTHING , IDENTIFICATION CARDS, MEDICAL EXPENSES, DENTAL EXPENSES, AND PRESCRIPTION ASSISTANCE TO LIFELAUNCH PARTICIPANTS. BUS PASSES 4113 6755 PURCHASE PRICE BUS PASSES TO REMOVE TRANSPORTATION BARRIERS FOR RECEIPENTS'S PARTICIPATION IN THE PROGRAM. X X X X X 1 1 0 0 0 1 0 0 0 AMY LUTTRELL PRESIDENT & CEO 324735 0 67516 0 0 0 88836 0 10648 0 491735 0 0 0 MARK HOHMANN CHIEF FINANCIAL OFFICER 171611 0 3984 0 0 0 8434 0 3484 0 187513 0 0 0 RENA SHARPE CHIEF OPERATING OFFICER 205230 0 5107 0 0 0 10115 0 10878 0 231330 0 0 0 MARSHA BERRY VICE-PRESIDENT PROGRAM SERVICES 180786 0 7307 0 0 0 8715 0 15021 0 211829 0 0 0 DAVID COBB VICE-PRESIDENT HUMAN RESOURCES & EXT 173282 0 32632 0 0 0 8691 0 15130 0 229735 0 0 0 PART I, LINES 4A-B GOODWILL OF KENTUCKY PROVIDED SEVERANCE PAYMENTS DURING THE YEAR TO THE FOLLOWING INDIVIDUALS: - $35,458 TO LORI COLLINS - $16,180 TO JOHN R. WADE - $13,240 TO JOSHUA PIERCE GOODWILL OF KENTUCKY OFFERS A SUPPLEMENTAL RETIREMENT PLAN TO CERTAIN EXECUTIVES OF THE ORGANIZATION. THE VALUE OF THE PLAN IS DETERMINED ANNUALLY BASED UPON A COMBINATION OF EMPLOYER CONTRIBUTIONS AND AN ANALYSIS OF THE PLAN. AMY LUTTRELL, PRESIDENT & CEO, PARTICIPATED IN THIS PLAN DURING 2018. THE CHANGE IN THE PLAN VALUE FOR MS. LUTTRELL WAS $73,128.180 PART I, LINE 6 GOODWILL INDUSTRIES OF KENTUCKY, INC. HAS AN INCENTIVE COMPENSATION PLAN WHICH IS PART OF THE OVERALL COMPENSATION PROGRAM. THE GOAL OF THE PLAN IS TO FOCUS ECONOMIC INCENTIVES ON PROGRAM RESULTS AND THE AREAS IN WHICH GOODWILL OPERATES PROGRAMS. THE PLAN FOCUSES ON ACHIEVING THE ORGANIZATION'S MISSION AND THE ECONOMIC STABILITY OF THE COMPANY. OFFICER PARTICIPANTS MAY EARN UP TO 20% ABOVE THEIR BASE PAY BY MEETING SIX ESTABLISHED CRITERIA RELATED TO: MISSION WAGES, PLACEMENTS OF PERSONS WITH DISABILITIES OR OTHER DISADVANTAGES, AGENCY ECONOMIC STABILITY, THE DONATED GOODS PROGRAM SUCCESS, DIVISION (AREAS OF PARTICIPANTS' RESPONSIBILITY) ECONOMIC SUCCESS, AND MAINTENANCE OF PROPERTIES AND EQUIPMENT. THE AGENCY ECONOMIC STABILITY AND DIVISION SUCCESS ENTAILS MEETING FISCAL YEAR NET EARNING GOALS/BUDGET AMOUNTS WHICH INCLUDES GOODWILL INDUSTRIES WORKS, LLC'S NET EARNINGS GOAL/BUDGET AMOUNTS. A CITY OF LYNDON KENTUCKY 610662393 2013-12-19 35265000 REFUNDING OF 2007 AND 2010 BONDS 0 0 0 A 9002345 35265000 35265000 2013 1 0 1 1 A 0 0 0 0 0 0 1 A 0 0 0 1 1 0 0 0 1 A 1 X 17513723 FMV X 1016 798467 FMV 1 0 0 1 PART I, LINE 32B: GOODWILL INDUSTRIES OF KY, INC WILL OCCASIONALLY USE INDEPENDENT THIRD PARTY AUCTION HOUSES TO SELL SURPLUS DONATED VEHICLES. FORM 990, PART VI, SECTION B, LINE 11B UPON COMPLETION OF THE DRAFT FORM 990 RETURN, THE DOCUMENT, ALL ATTACHED SCHEDULES, AND ACCOMPANYING EXPLANATION SHEETS ARE PRESENTED TO THE GOODWILL INDUSTRIES OF KENTUCKY AUDIT COMMITTEE FOR REVIEW AND APPROVAL. ELECTRONIC COPIES ARE SENT AHEAD OF THE MEETING. AFTER OBTAINING THE AUDIT COMMITTEE'S APPROVAL, AN ELECTRONIC COPY IS THEN E-MAILED TO THE GOODWILL INDUSTRIES OF KENTUCKY, INC. BOARD OF DIRECTORS PRIOR TO THE FORM 990 BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, GOODWILL INDUSTRIES OF KENTUCKY, INC. ASKS ITS OFFICERS AND DIRECTORS TO COMPLETE A QUESTIONNAIRE WHICH DEFINES AND DESCRIBES THE COMPANY'S CONFLICTS OF INTEREST POLICY AND ASKS IF THERE WERE BUSINESS TRANSACTIONS THAT HAVE OCCURRED OR PERSONAL RELATIONSHIPS WHICH CAUSE A CONFLICT. THE COMPANY ALSO HAS AN ANONYMOUS TIP LINE THAT CAN BE USED FOR PERSONS TO REPORT SUSPECTED CONFLICTS THAT WOULD VIOLATE COMPANY POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS OF GOODWILL INDUSTRIES OF KENTUCKY, INC. HAS A COMPENSATION PHILOSOPHY THAT IS REVIEWED ANNUALY AND USED TO GUIDE COMPENSATION DECISIONS. THE BOARD INITIATES THE REBUTTABLE PRESUMPTION PROCESS FOR COMPENSATION BY ANNUALLY REVIEWING THE COMPENSATION FOR THE PRESIDENT/CEO AND OTHER DISQUALIFIED POSITIONS. THE EXECUTIVE COMMITTEE ENGAGES AN OUTSIDE CONSULTANT TO PROVIDE COMPARITIVE DATA. THE COMMITTEE THEN PRESENTS ITS RECOMMENDATIONS FOR THE CEO'S COMPENSATION AND THE COMPENSATION LIMITS OF OTHER DISQUALIFIED POSITIONS TO THE FULL BOARD OF DIRECTORS FOR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 IN AN EFFORT TO MAKE ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC, GOODWILL INDUSTRIES OF KENTUCKY, INC. PLACES THE 990 TAX RETURN AND ANNUAL REPORT ON ITS WEBSITE. THE ANNUAL REPORT IS ALSO BROADLY DISTRIBUTED IN COMMUNITIES IN WHICH THE COMPANY OPERATES. GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE PROVIDED TO THOSE WHO REQUEST THEM. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT PROCESS FOR THE AUDIT DURING THE CALENDAR YEAR. GOODWILL INDUSTRIES WORKSLLC 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 753157787 MISSION EMPLOYMENT KY 0 10337 GOODWILL INDUSTRIES OF KY INC GOODWILL TEMPORARY SERVICES OF KENTUCKY LLC 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 611316311 MISSION EMPLOYMENT KY 0 10138 GOODWILL INDUSTRIES OF KY INC