2018-03-16T14:16:12-05:00 2016-12-31 BDO USA LLP 100 PARK AVENUE NEW YORK NY 100175001 990 2016-01-01 132875743 STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT CORPORATION % MILTON A DERIENZO STRU 2124730255 22 CORTLANDT STREET 33RD FLOOR NEW YORK NY 10007 MILTON A DERIENZO CFO 3476493083 2018-03-14 true Paul Hammerschmidt P01384178 2128858000 100.37.250.162 26308920180755000008 2018-03-16 P D01122C7D7AE77111100C81253157AB3E9B57B1E A24F609FCCA88A60844EA56223D8C041BF48CC74 2016 2021-01-29 14:40:06Z SEEDCO Milton A DeRienzo 311 East 175th St bronx NY 10457 6065767 false X www.seedco.org X 1976 DE TO ADVANCE ECONOMIC OPPORTUNITY FOR PEOPLE, BUSINESSES AND COMMUNITIES IN NEED. 10 10 105 12 0 0 10373258 5834328 82730 82190 2169 184 232909 149065 10691066 6065767 4847947 1622747 0 0 5963188 4077224 0 0 248607 3917184 2757789 14728319 8457760 -4037253 -2391993 2952171 1565609 1769380 2774811 1182791 -1209202 X STRUCTURED EMPLOYMENT ECONOMIC DEVELOPMENT CORPORATION'S (SEEDCO) MISSION IS TO ADVANCE ECONOMIC OPPORTUNITY FOR PEOPLE, BUSINESSES, AND COMMUNITIES IN NEED. AS SUCH, SEEDCO DESIGNS AND IMPLEMENTS INNOVATIVE PROGRAMS AND SERVICES THAT BENEFIT WORKERS, FAMILIES, AND BUSINESSES ACROSS THE COUNTRY. EACH YEAR, SEEDCO SUPPORTS COMMUNITIES THROUGH TWO CORE PROGRAM PORTFOLIOS: 1) WORKFORCE DEVELOPMENT 2) WORK AND FAMILY SUPPORTS SEEDCO OPERATES AS BOTH A DIRECT SERVICES PROVIDER AND AN INTERMEDIARY ORGANIZATION, HELPING COMMUNITY-BASED ORGANIZATIONS EXPAND OUTREACH AND SECURE FUNDING. false true 3044704 796680 0 WORKFORCE DEVELOPMENT - USING A LONG-TERM CAREER CASE MANAGEMENT MODEL, SEEDCO PROVIDES CAREER COUNSELING AND JOB-READINESS TRAINING AND JOB PLACEMENT SERVICES TO HELP INDIVIDUALS WITH BARRIERS TO EMPLOYMENT OBTAIN, RETAIN AND ADVANCE IN JOBS. SEEDCO'S WORKFORCE DEVELOPMENT PROGRAMS PROVIDE A BROAD RANGE OF JOB SEEKERS AND WORKERS WITH PATHS TO SUCCESS THAT BEGIN WITH JOB PLACEMENT AND MOVE ON TO JOB RETENTION AND CAREER ADVANCEMENT. WE TAILOR THESE SERVICES SO THEY MEET THE NEEDS OF HARD-TO-SERVE POPULATIONS INCLUDING NON-CUSTODIAL PARENTS, OUT-OF-SCHOOL YOUTH, AND INDIVIDUALS WITH A HISTORY OF CRIMINAL JUSTICE INVOLVEMENT. 2375241 826067 82190 WORK AND FAMILY SUPPORTS - SEEDCO HELPS LOW-INCOME FAMILIES SUCCESSFULLY ENROLL IN BENEFITS AND ASSISTANCE PROGRAMS, AND MOVE TOWARDS SELF-SUFFICIENCY. EVEN WHEN EMPLOYED, MANY WORKERS EARN WAGES THAT ARE TOO LOW TO SUPPORT THEMSELVES AND THEIR FAMILIES. SEEDCO'S EARNBENEFITS ONLINE TECHNOLOGY SCREENS LOW-INCOME HOUSEHOLDS TO ASCERTAIN ELIGIBILITY FOR PUBLIC AND PRIVATE INCOME SUPPORT. THIS HELPS HOUSEHOLDS GAIN ACCESS TO MUCH-NEED BENEFITS. SEEDCO USES TECHNOLOGY AND CASE MANAGEMENT SERVICES TO CONNECT WORKERS AND THEIR FAMILIES TO THE FULL RANGE OF BENEFITS INCLUDING AFFORDABLE HEALTH INSURANCE, THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP, FORMERLY FOOD STAMPS), ENERGY ASSISTANCE, TAX CREDITS AND OTHER VITAL SUPPORTS. 5419945 true true false false false false false false false false true false false true true true false true false false false false false false false false false true true true false false false false false false false false false false false false false true false false false true 32 0 true 105 true false false false false false false false false false false X 10 10 false false false false false false false true true false true true true true true true true true false false false AR CO DE DC FL GA KS KY MD MI MN MS NJ NY NC TN VA X MILTON A DERIENZO 3476493083 311 EAST 175TH STREET BRONX NY 10457 PAUL R FRANKE III CHAIRPERSON 1.0 0.0 X X 0 0 0 Lilliam Barrios-Paoli Vice Chair 1.0 0.0 X X 0 0 0 SANDRA L PHILLIPS SECRETARY 1.0 0.0 X X 0 0 0 WALTER MACK TREASURER 1.0 0.0 X X 0 0 0 PETER Budetti BOARD MEMBER 1.0 0.0 X 0 0 0 HOWARD A CHERNICK BOARD MEMBER 1.0 0.0 X 0 0 0 DORA HUGHES BOARD MEMBER 1.0 0.0 X 0 0 0 GEORGE A PRUITT BOARD MEMBER 1.0 0.0 X 0 0 0 LIZANNE STEPHENSON BOARD MEMBER 1.0 0.0 X 0 0 0 HERMAN STRICKLAND BOARD MEMBER 1.0 0.0 X 0 0 0 BARBARA DWYER GUNN CEO/PRESIDENT (THRU 12/31/16) 35.0 0.0 X 182838 0 9882 MATTHEW LOCURTO CFO (THRU 1/1/16) 35.0 0.0 X 9588 0 29 HOWARD ZUKOF THRU 93016 Interim Controller 35.0 0.0 X 45950 0 949 KRISTEN CUTFORTH GENERAL COUNSEL 35.0 0.0 X 157296 0 30412 KEITH RASMUSSEN VICE PRESIDENT 35.0 0.0 X 156419 0 7046 TARA COLTON SENIOR VICE PRESIDENT PROGRAMS 35.0 0.0 X 142438 0 23160 694529 0 71478 4 false true false 0 5603787 230541 5834328 PROGRAM AND PROCESSING FEES 900099 82190 82190 82190 184 184 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 401(A) FORFEITURE 900099 56545 56545 MISCELLANEOUS INCOME 900099 92520 92520 149065 6065767 82190 0 149249 1572247 1572247 50500 50500 0 0 249236 204023 45213 0 3113915 2106508 852788 154619 53172 33857 16441 2874 404451 274263 110728 19460 256450 174183 70042 12225 0 49899 49899 206559 206559 0 0 0 614358 168958 438580 6820 0 135775 97599 38132 44 216168 148033 68135 0 960105 463172 446208 50725 78655 75411 3244 0 24217 24217 20464 20464 0 1631 1631 200278 200278 RECRUITMENT & TEMP PERSONNEL 161550 12654 148896 DUES & SUBSCRIPTIONS 16895 8809 6331 1755 BAD DEBT EXPENSE 10067 10067 BOARD EXPENSES 6494 6494 54674 5511 49078 85 8457760 5419945 2789208 248607 249812 434462 466404 43730 1783182 690701 66338 71207 0 0 0 0 0 0 0 0 150183 77837 21841 5466 3055 16375 0 0 0 0 0 0 0 0 233197 231297 2952171 1565609 854053 1740205 0 0 276373 347401 0 0 0 0 0 0 463954 326259 0 0 175000 360946 1769380 2774811 X 725976 -1377192 456815 167990 0 0 1182791 -1209202 2952171 1565609 -2391993 X false true X true true true X 31804565 19738088 17344930 10373258 5834328 85095169 0 0 31804565 19738088 17344930 10373258 5834328 85095169 0 85095169 256 5038 6449 2169 184 14096 0 1621246 1362260 1017244 232909 149065 4382724 89491989 684955 0.95087 0.94857 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 21841 5466 16375 16375 SECURITY DEPOSIT 231297 231297 0 REFUNDABLE CONTRACT ADVANCES 360946 360946 X 6247430 181663 181663 6065767 6065767 8639423 181663 181663 8457760 8457760 PART X, LINE 2: UNDER ACCOUNTING STANDARDS CODIFICATION ("ASC") 740, "INCOME TAXES", AN ORGANIZATION MUST RECOGNIZE THE FINANCIAL STATEMENT EFFECTS OF A TAX POSITION TAKEN FOR TAX RETURN PURPOSES WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL NOT BE SUSTAINED UPON EXAMINATION. SEEDCO (THE "REPORTING ORGANIZATION") DOES NOT BELIEVE THERE ARE ANY MATERIAL UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, HAS NOT RECOGNIZED ANY LIABILITY FOR UNRECOGNIZED TAX POSITIONS. THE REPORTING ORGANIZATION HAS FILED INTERNAL REVENUE SERVICE FORM 990, AS REQUIRED, AND ALL OTHER APPLICABLE RETURNS IN JURISDICTIONS WHEN IT IS REQUIRED. FOR THE YEAR ENDED DECEMBER 31, 2016, THERE WAS NO INTEREST OR PENALTIES RECORDED OR INCLUDED IN THE FINANCIAL STATEMENTS. MANAGEMENT BELIEVES THAT THE ORGANIZATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2013. true Strive Inc 240 E 123rd St New York NY 10035 133255679 501(c)3 355587 Workforce BronxWorks Inc 60 East Tremont Bronx NY 10453 133254484 501(c)3 333502 Workforce Eastern Shore Area Health Education Center Inc 814 Chesapeake Drive Cambridge MD 21613 521987075 501(c)3 282619 Work & Family Triangle Health Alliance PO Box 797 Elkton MD 21921 010789341 137754 Work & Family Associated Catholic Charities 1966 Greenspring Drive Timoninum MD 21093 520591538 501(c)3 53801 Work & Family Council of People's Organization Inc 1081 Coney Island Ave Brooklyn NY 11230 753046891 501(c)3 52481 Work & Family Job Opportunities Task Force 111 Water St Baltimore MD 21202 522278450 501(c)3 48206 Work & Family Anne Arundel County 1 Harry S Truman St Annapolis MD 21404 526000878 45750 Work & Family Chinese-American Planning Council 150 Elizabeth St New York NY 10012 136202692 501(c)3 43242 Work & Family Bon Secours Community Works 26 North Fulton St Baltimore MD 21223 521732800 501(c)3 36908 Work & Family The Food Bank for New York City 39 Broadway 10th Fl New York NY 10006 133179546 501(c)3 29587 Work & Family St Nicks Alliance 2 Kingsland Ave Brooklyn NY 11211 510192170 501(c)3 28142 Work & Family Urban Upbound 12-11 40th Ave Long Island City NY 11101 861096987 501(c)3 24162 Work & Family The Center of Help Inc 1906 Forest Dr Annapolis MD 21401 522282782 501(c)3 16969 Work & Family Chesapeake Multi-Cultural Resource Center PO Box 1990 Easton MD 21601 460893377 501(c)3 12943 Work & Family Spring Creek Health Cooperative 304 West Pine St Colquitt GA 39837 300187514 501(c)3 10991 Work & Family Memphis Area Legal Services 109 N Main St Memphis TN 38103 620841436 501(c)3 10418 Work & Family Hosea Feed the Hungry and Homeless 1035 Donnelly Ave SW Atlanta GA 30310 581340903 501(c)3 8731 Work & Family Community College Of Baltimore County 800 South Rolling Rd Baltimore MD 21228 521977456 8223 Work & Family Cypress Hills Local Development Corp 625 Jamaica Ave Brooklyn NY 11208 112683663 501(c)3 7599 Work & Family United Jewish Organizations of Williamsburg & Nort 32 Penn Street Brooklyn NY 11249 112728233 501(c)3 7338 Workforce Porter-Leath (Children's Bureau Inc) 868 N Manassas St Memphis TN 38107 581409385 501(c)3 6294 Work & Family Hampden Family Center 1104 W 36th St Baltimore MD 21211 521911153 501(c)3 6000 Work & Family 20 3 PARTICIPANT TRANSPORTATION - NY WORKFORCE PROG. 3850 31375 MARKET VALUE TRANS. SUBSIDIES PARTICIPANT INCENTIVES FOR NY WORKFORCE PROGRAMS 830 16250 PARTICIPANT TRANSPORTATION - TN WORKFORCE PROG. 135 2875 MARKET VALUE TRANS. SUBSIDIES PART I, LINE 2: SEEDCO MONITORS GRANTS TO RECIPIENTS THROUGH A COMBINATION OF FINANCIAL REPORTS, WRITTEN REPORTS, AND/OR SITE VISITS, DEPENDING ON THE PROGRAM THROUGH WHICH THE ORGANIZATION IS FUNDED. SEEDCO ALSO REVIEWS AUDITED FINANCIAL STATEMENTS AND OMB A-133 REPORTS OF GRANTEES, IF APPLICABLE, AND FOLLOWS UP ON FINDINGS WITH RECIPIENTS WHO HAVE MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES IN THEIR INTERNAL CONTROLS TO EXAMINE THEIR CORRECTIVE ACTION PLANS. X false false false false false false false false false BARBARA DWYER GUNN CEO/PRESIDENT (THRU 12/31/16) 182838 0 0 0 0 0 7081 0 2801 0 192720 0 0 0 KRISTEN CUTFORTH GENERAL COUNSEL 157296 0 0 0 0 0 6400 0 24012 0 187708 0 0 0 KEITH RASMUSSEN VICE PRESIDENT 156419 0 0 0 0 0 6248 0 798 0 163465 0 0 0 TARA COLTON SENIOR VICE PRESIDENT PROGRAMS 142438 0 0 0 0 0 497 0 22663 0 165598 0 0 0 FORM 990, PART III, LINE 3: For the year ended 31, 2016, Seedco reported a decrease in net assets of approximately $2.4 million and has experienced deteriorating liquidity. In response to Seedcos financial condition, management has executed a turnaround plan in 2016 with four key elements: (1) Significant reductions in administrative costs through an administrative services agreement with Acacia Network, Inc.; (2) Closure of programs that had limited financial viability; (3) Expansion of Seedcos proprietary EarnBenefits Online technology and (4) New business development with funding from both public and private funders. FORM 990, PART VI, SECTION B, LINE 11B: FORM 990 IS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S FINANCIAL DEPARTMENT. DRAFT FORM 990 IS REVIEWED BY THE ORGANIZATION'S CFO AND THEN PROVIDED TO ALL MEMBERS OF THE BOARD OF DIRECTORS IN DRAFT VIA ELECTRONIC MAIL, WITH AN OPPORTUNITY FOR THEM TO COMMENT OR MAKE INQUIRY BEFORE IT IS FILED WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C: THE GENERAL COUNSEL SERVES AS AN ADVISOR TO DIRECTORS AND KEY EMPLOYEES REGARDING POTENTIAL CONFLICTS, BOTH DURING THE ANNUAL RECERTIFICATION PROCESS AND AS THEY ARISE. AS NECESSARY, THE GENERAL COUNSEL BRINGS MATTERS PERTAINING TO KEY EMPLOYEES, OFFICERS, AND DIRECTORS TO THE PRESIDENT FOR DISCUSSION WITH THE BOARD; ADVISES WHEN DIRECTORS MUST REMOVE THEMSELVES FROM VOTING ON ORGANIZATION MATTERS; AND, WITH THE PRESIDENT, MAKES DETERMINATIONS ON MATTERS PERTAINING TO POTENTIAL CONFLICTS CONCERNING STAFF MEMBERS WHO ARE NOT KEY EMPLOYEES. FORM 990, PART VI, SECTION B, LINE 15A: BARBARA GUNN, THE CHIEF EXECUTIVE OFFICER AND PRESIDENT OF SEEDCO, ENTERED INTO A BOARD APPROVED EMPLOYMENT CONTRACT ON MARCH 29, 2010. THIS AGREEMENT STIPULATED THAT MS. GUNN BE PAID AN INITIAL BASE COMPENSATION AMOUNT OF $345,000. THE CONTRACT HAD AN INITIAL TERM OF THREE YEARS WITH SUCCESSIVE ONE-YEAR PERIODS OF EXTENSION OPTIONS WHICH RENEW AUTOMATICALLY UNLESS TERMINATED BY EITHER PARTY IN WRITING. IN MARCH OF 2012, MS. GUNN VOLUNTARY REDUCED HER ANNUAL BASE SALARY TO $284,000. IN MARCH 2013, HER SALARY WAS INCREASED TO $300,000 AT THE DISCRETION OF THE SEEDCO BOARD OF DIRECTORS. IN DECEMBER OF 2013, THE 2014 SEEDCO OPERATING BUDGET WAS APPROVED BY THE BOARD OF DIRECTORS AND INCLUDED A 3% SALARY INCREASE TO ALL STAFF HIRED ON OR BEFORE SEPTEMBER 30, 2013. THIS ACTION INCREASED MS. GUNN'S BASE ANNUAL BASE SALARY TO $309,000. THE SEEDCO BOARD OF DIRECTORS HAS ELECTED TO NOT TERMINATE THE EXTENSION OPTIONS THAT COMMENCED ON MARCH 30, 2013, MARCH 30, 2014 AND MARCH 30, 2015. IN CALENDAR YEAR 2015, MS. GUNNS ANNUAL BASE SALARY WAS $325,796. AS DETAILED IN SEEDCOS 2015 AUDITED FINANCIAL STATEMENTS ISSUED BY BDO, FOR THE YEAR ENDED DECEMBER 31, 2015, SEEDCO REPORTED A DECREASE IN NET ASSETS OF APPROXIMATELY $4 MILLION AND EXPERIENCED DETERIORATING LIQUIDITY. DUE TO SEEDCOS FINANCIAL CONDITION, MS. GUNN VOLUNTARILY REDUCED HER SALARY TO $140,000 EFFECTIVE JANUARY 15, 2016. HER SALARY WAS THEN INCREASED TO $200,000 EFFECTIVE JULY 1, 2016. HER EFFECTIVE BASE SALARY AS REPORTED ON HER 2016 W-2 WAS $182,837.39. MS. GUNN RETIRED FROM HER POSITION ON DECEMBER 31, 2016. 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. REASONABLE CAUSE EXPLANATION FOR A LATE-FILED RETURN: SEEDCO USED ALL ORDINARY BUSINESS CARE AND PRUDENCE TO MEET ITS FEDERAL TAX OBLIGATIONS IN FILING THE 2016 990 BUT WAS NEVERTHELESS UNABLE TO DO SO. Seedco used all ordinary business care and prudence to meet its federal tax obligations in filing the 2016 990 but was nevertheless unable to do so. The delay was due to a SIGNIFICANT TRANSITION IN SEEDCOS ACCOUNTING OPERATIONS AND FISCAL STAFF. IN JULY 2016, SEEDCO ENTERED INTO AN ADMINISTRATIVE SERVICES AGREEMENT WITH ACACIA NETWORK, INC. ("ACACIA") TO OUTSOURCE CERTAIN SERVICES THAT RESULTED IN SIZABLE DECREASES IN BOTH ADMINISTRATIVE PERSONNEL AND NON-PERSONNEL COSTS. ACACIA IS A VERY LARGE HEALTH AND HUMAN SERVICES AGENCY, WITH A 2016 OPERATING BUDGET OF MORE THAN $300 MILLION. AFTER MORE THAN A YEAR OF THE ADMINISTRATIVE SERVICES AGREEMENT, ON SEPTEMBER 6, 2017, SEEDCO COMPLETED A FORMAL AFFILIATION WITH ACACIA. AS A RESULT OF THE ADMINISTRATIVE SERVICES AGREEMENT AND NOW THE FORMAL AFFILIATION, SEEDCO HAS SIGNIFICANTLY REDUCED ITS MANAGEMENT AND GENERAL COSTS AND LEVERAGES ACACIAS PURCHASING POWER AND ECONOMIES OF SCALE. ACACIA NOW MANAGES SEEDCOS HUMAN RESOURCES, INFORMATION TECHNOLOGY, FISCAL AND PAYROLL SYSTEMS. HOWEVER, THE TRANSITION FROM SEEDCOS ACCOUNTING SYSTEM (FINANCIAL EDGE) TO ACACIAS ACCOUNTING SYSTEM (FUND EZ) CAUSED SIGNIFICANT DELAYS IN THE PREPARATION OF ALL MATERIALS FOR THE 2016 AUDIT. IN ESSENCE, SEEDCO HAD 9 MONTHS OF RECORDS IN ONE SYSTEM (FINANCIAL EDGE) AND 3 MONTHS OF RECORDS IN A SECOND SYSTEM (FUND EZ). IN ADDITION TO CHANGING ACCOUNTING SYSTEMS MID-WAY THROUGH THE YEAR, SEEDCO ALSO CHANGED ITS PAYROLL SYSTEM, SHIFTING FROM ADP TOTAL SOURCE, WHICH WAS USED FOR THE FIRST 9 MONTHS OF THE YEAR, TO ADP WORKFORCE NOW, WHICH WAS USED FOR THE FINAL 3 MONTHS OF THE YEAR. WHILE BOTH PAYROLL SYSTEMS ARE UNDER THE ADP UMBRELLA, THE SYSTEMS ARE NOT INTEGRATED WITHIN THE ADP DATABASE. LASTLY, AS SEEDCO COMPLETED THE TRANSITION TO ACACIAS SYSTEM, THERE WAS SIGNIFICANT TRANSITION AMONG THE FINANCIAL STAFF, CAUSING ADDITIONAL DELAYS. WE ARE EXTREMELY CONFIDENT THIS DELAY IN FILING THE 2016 990 WAS AN ISOLATED EVENT, AS SEEDCOS OPERATIONS HAVE BEEN FULLY INTEGRATED INTO ACACIAS OPERATIONS FOR THE ENTIRETY OF THE 2017 CALENDAR YEAR AND WILL CONTINUE TO BE INTEGRATED GOING FORWARD. CONTINUE TO BE INTEGRATED GOING FORWARD. NON-PROFIT ASSISTANCE CORPORATION 22 CORTLANDT STREET 33RD FLOOR NEW YORK NY 10007 133952047 DEVELOPMENT NY 501(C)(3) 10 false false false false false false false false false false false false false true true false false false false