2018-02-14T10:25:53-06:00 2017-09-30 271235638 MCM CPAS & ADVISORS LLP 462 S FOURTH ST SUITE 2600 LOUISVILLE KY 402023445 990 2016-10-01 610475284 GOODWILL INDUSTRIES OF KY INC GOOD 5022721700 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 AMY LUTTRELL PRESIDENT 5022721700 2018-02-12 1 REBECCA L PHILLIPS CPA P00024055 5027491900 128.136.148.166 2018-02-12 20:00:23 ES P 04866BC0F964F537206C876F89202DEA3ACDA43A 8FE1E978E28DDEB0D31E26BD26EE2BD711FC9390 2016 2021-01-29 14:40:06Z AMY LUTTRELL 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 77836955 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. 14 14 2345 1099 0 0 17052649 18718984 39281084 41989830 102879 142263 43533 91463 56480145 60942540 70492 45075 0 0 33926317 36214420 0 0 769907 16571981 18045328 50568790 54304823 5911355 6637717 125400131 130674265 35471566 34089386 89928565 96584879 X GOODWILL'S MISSION IS TO HELP PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES ACHIEVE AND MAINTAIN EMPLOYMENT TO GAIN A BETTER QUALITY OF LIFE. 1 0 35646750 25000 34318669 GOODWILL INDUSTRIES OF KENTUCKY, INC.'S RETAIL PROGRAM HELPS PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES OBTAIN AND MAINTAIN EMPLOYMENT AT ONE OF ITS 64 STORES THROUGHOUT KENTUCKY BY PROVIDING EMPLOYMENT AND TRAINING OPPORTUNITIES. OVER 727 INDIVIDUALS WERE SERVED AND MORE THAN $10.3 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 COMMUNITY EMPLOYMENT PROGRAM. DURING FY 2017, 630 PEOPLE WERE SERVED THROUGH THIS PROGRAM. 4046213 20075 1457464 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. IN FY 2017, THESE SPECIALIZED PROGRAMS MADE 2,293 JOB PLACEMENTS, DELIVERED 4,568 SERVICES, AND PROVIDED INFORMATION AND SERVICE REFERRALS TO 13,519 PEOPLE WHO CONTACTED GOODWILL FOR ASSISTANCE 2660829 2461456 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, GTS STAFFING, 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 GTS STAFFING ENABLES THESE INDIVIDUALS TO EARN WAGES, GAIN WORK EXPERIENCE, AND EXPERIENCE A VARIETY OF EMPLOYMENT OPPORTUNITIES. GTS STAFFING PROVIDED 1,136 SERVICES AND 1,051 PLACEMENTS. 437 OF THESE PLACEMENTS WERE IN PROGRAMS OF GOODWILL INDUSTRIES OF KENTUCKY, INC. IN ADDITION, GTS STAFFING HELPED MOVE 59 INDIVIDUALS FROM TEMPORARY EMPLOYMENT TO PERMANENT POSITIONS WHILE PAYING OVER $1.9 MILLION IN MISSION-RELATED WAGES. 1396797 1408026 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 42 PERSONS, SERVED 45PERSONS, AND PAID $474,596 IN MISSION-RELATED WAGES. 759711 687699 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. 237 PEOPLE WERE SERVED BY THE CARS TO WORK PROGRAM AND 42 VEHICLES WERE PROVIDED TO PROGRAM PARTICIPANTS. 253178 63527 GOODWILL INDUSTRIES OF KENTUCKY, INC. PROVIDED JOB OPPORTUNITIES AND TRAINING FOR PERSONS WITH DISABILITIES OR OTHER DISADVANTAGES THROUGH ITS GOODSHRED SECURE DOCUMENT DESTRUCTION PROGRAM, WHICH EMPLOYED 3 PEOPLE AND PAID $11,234 IN MISSION-RELATED WAGES. 76497 43285 GOODWILL INDUSTRIES OF KENTUCKY, INC. PROVIDES JOB OPPORTUNITIES AND TRAINING IN JANITORIAL SERVICES FOR PEOPLE WITH DISABILITIES OR OTHER DISADVANTAGES THROUGH COMMERCIAL CONTRACTS. 1605768 1549704 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. IN FY 2017, THE SCSEP PROGRAM MADE 21 JOB PLACEMENTS, AND PROVOIVED 325 SERVICES, WHILE PAYING OVER $1.2 MILLION IN MISSION-RELATED WAGES. 4091951 3752241 46445743 1 0 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 1 110 0 1 2345 1 0 0 0 0 0 0 0 0 0 1 0 X 14 14 0 0 1 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 CHARLES F LAMBERT III IMMEDIATE PAST CHAIR 1.00 X 0 0 0 LINDA SCHOLLE COWAN CHAIRPERSON 1.00 X X 0 0 0 EMILY LEDFORD LAWRENCE -END 012017 SECOND VICE CHAIRPERSON 1.00 X 0 0 0 JEANNA JONES TREASURER 1.00 X X 0 0 0 ELLIE KERSTETTER - END 012017 SECRETARY 1.00 X X 0 0 0 JASON GRONECK SECRETARY 1.00 X X 0 0 0 DANIEL HALL FIRST VICE CHAIR 1.00 X 0 0 0 DWIGHT L HAYGOOD JR BOARD MEMBER 1.00 X 0 0 0 JEFFREY V MCGOWAN - END 012017 BOARD MEMBER 1.00 X 0 0 0 FAITH P MERCKE BOARD MEMBER 1.00 X 0 0 0 RON SANTELLA - END 012017 BOARD MEMBER 1.00 X 0 0 0 TED SMITH BOARD MEMBER 1.00 X 0 0 0 CHARLES J KANE BOARD MEMBER 1.00 X 0 0 0 WILLIAM STOUT BOARD MEMBER 1.00 X 0 0 0 TOM KMIECIK-START 012017 BOARD MEMBER 1.00 X 0 0 0 PAUL O'FLYNN-START 012017 BOARD MEMBER 1.00 X 0 0 0 DEBBIE MURPHY-START 042017 BOARD MEMBER 1.00 X 0 0 0 DOUGLAS EDWARDS-START 042017 BOARD MEMBER 1.00 X 0 0 0 AMY LUTTRELL PRESIDENT & CEO 40.00 X 338268 0 84393 MARK HOHMANN CHIEF FINANCIAL OFFICER 40.00 X 104029 0 1240 LORI COLLINS VICE-PRESIDENT EAST PROGRAM SERVICES 40.00 X 136951 0 12044 RENA SHARPE - START 022017 CHIEF OPERATING OFFICER 40.00 X 0 0 0 MARSHA BERRY VICE-PRESIDENT WEST PROGRAM SERVICES 40.00 X 190617 0 26076 DAVID COBB VICE-PRESIDENT HUMAN RESOURCES & EXTERNAL AFFAIRS 40.00 X 186160 0 25391 JOSHUA PIERCE VICE-PRESIDENT EAST RETAIL 40.00 X 120188 0 17450 JOHN WADE VICE-PRESIDENT WEST RETAIL 40.00 X 185804 0 20305 KRISTEL FITZGERALD - END 042017 VICE-PRESIDENT SPECIAL PROJECTS 40.00 X 113698 0 28035 VICKI BUDD DIRECTOR OF HUMAN RESOURCES & ORGANIZATIONAL CULTU 40.00 X 126497 0 10155 JEFF GRAMMER DIRECTOR OF INFORMATION TECHNOLOGY 40.00 X 119097 0 9442 PAUL FALKENSTEIN DIRECTOR OF LOGISTICS AND TRANSPORTAION 40.00 X 100681 0 7351 1721990 0 241882 11 0 1 0 DEREK ENGINEERING INC 2800 CONSTANT COMMENT PLACE LOUISVILLE KY 40299 CONSTRUCTION/GENERAL CONTRACTING 971820 MIRANDA CONSTRUCTION LLC 828 SOUTH 6TH ST LOUISVILLE KY 40203 CONSTRUCTION/GENERAL CONTRACTING 694005 WORLDWIDE HAGERTY DBA KYK MARKETING & P 2600 CONSTANT COMMENT PLACE LOUISVILLE KY 40299 ADVERTISING BUYING & PR CONSULTING 432509 ULTIMATE SOFTWARE PO BOX 930953 ATLANTA GA 311930953 HR INFORMATION SYSTEM/PR PROCESSING 388808 NESCO RESOURCE PO BOX 901372 CLEVELAND OH 44190 TEMPORARY LABOR 302223 9 640037 18078947 17799963 18718984 NET SALES FROM RETAIL 453310 34878098 34878098 WORKFORCE DEVELOPMENT 624310 5475255 5475255 CONTRACT REVENUE 561700 1514838 1514838 NET SALES FROM CAR SAL 453310 121639 121639 41989830 324856 324856 22080 0 22080 22080 22080 16183282 528540 16238153 656262 -54871 -127722 -182593 -182593 MISCELLANEOUS REVENUE 900099 69383 69383 69383 60942540 41989830 0 233726 25000 25000 20075 20075 1795729 872155 871890 51684 27862754 24511514 3221631 129609 486804 391602 91913 3289 3514070 3025189 472070 16811 2555063 2269658 271019 14386 154647 154647 85743 85743 21045 21045 1375 1375 1183284 924500 251261 7523 787814 186759 164960 436095 1813645 1619469 186350 7826 559962 375441 184521 5965612 5788964 176648 1363561 1209975 147094 6492 497605 497605 3144412 2813831 330581 MISCELLANEOUS 1722830 1573620 126520 22690 EQUIPMENT RENTAL AND MA 313462 223888 89184 390 MEMBERSHIPS & DUES 198047 13830 183942 275 SPECIFIC ASSISTANCE 161675 44146 44749 72780 70609 58522 12030 57 54304823 46445743 7089173 769907 26735931 16200052 5818747 2527142 195816 572301 769078 719895 2147937 2461778 580526 692294 100336402 28932400 71432776 71404002 17300514 35749912 365482 293565 53324 53324 125400131 130674265 4815773 5177569 30162830 28432473 492963 479344 35471566 34089386 X 89596572 96430361 101688 100583 230305 53935 89928565 96584879 125400131 130674265 6637717 18597 0 X X 0 1 X 1 1 1 X 5620135 7537195 7132566 17052649 18718984 56061529 5620135 7537195 7132566 17052649 18718984 56061529 56061529 117653 123204 149317 227750 346936 964860 22156 16268 26886 15933 69383 150626 57177015 148328675 0.98050 0.97420 X 0 1 0 0 0 0 0 0 1 28915 28915 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 REGULATING DONATED CLOTHING BOXES AT THE LOCAL LEVEL OF GOVERNMENT. 3) LEGISLATION INCREASING SUPPORT FOR ADULT EDUCATIONAL OPPORTUNITIES IN KENTUCKY. 239752 29127 10861 258018 102091 172677 4131 39147 239752 104263 -3226 1054 102091 89220 7543 7500 104263 89271 25 -76 89220 0.72870 0.20900 0.06230 1 0 2464974 20974338 23439312 53293311 15866541 37426770 3249251 1814645 1434606 14879802 11251214 3628588 5474726 5474726 71404002 L-T UI RESERVE 307736 DEFERRED COMPENSATION 171608 479344 X 61089219 18597 1735 20332 61068887 1375 -127722 -126347 60942540 54432905 1735 127722 129457 54303448 1375 1375 54304823 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. IS 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. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS -127,722. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS 127,722. 1 GOODWILL INDUSTRIES INTERNATIONAL 15810 INDIANOLA DRIVE ROCKVILLE MD 20855 530196517 501(C)(3) 15000 GOODWILL HURRICANE HARVEY FUND GOODWILL INDUSTRIES INTERNATIONAL 15810 INDIANOLA DRIVE ROCKVILLE MD 20855 530196517 501(C)(3) 10000 GOODWILL HURRICANE IRMA FUND 2 0 CASH AWARDS FOR PERFECT PROGRAM ATTENDANCE AND EDUCATIONAL ACHIEVEMENT (LESS THAN $480 PER RECIPIENT) 119 20075 PART I, LINE 2: MONETARY AWARDS ARE GIVEN FOR PERFECT PROGRAM ATTENDANCE AND EDUCATIONAL ACHIEVEMENT (I.E. GED, CNA CERTIFICATION, ETC.) FOR RECIPIENTS' PARTICIPATION IN THE PROGRAM. X X X X X 0 1 0 0 0 1 0 0 0 AMY LUTTRELL PRESIDENT & CEO 291196 0 47072 0 0 0 73921 0 10472 0 422661 0 0 0 MARSHA BERRY VICE-PRESIDENT WEST PROGRAM SERVICES 175882 0 14735 0 0 0 10380 0 15696 0 216693 0 0 0 DAVID COBB VICE-PRESIDENT HUMAN RESOURCES & EXT 163852 0 22308 0 0 0 10632 0 14759 0 211551 0 0 0 JOHN WADE VICE-PRESIDENT WEST RETAIL 162638 0 23166 0 0 0 10543 0 9762 0 206109 0 0 0 PART I, LINE 4B 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 2016. THE CHANGE IN THE PLAN VALUE FOR MS. LUTTRELL WAS $61,385. 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 OBTAINING 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 6832527 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 ESTHER SOUDER DAUGHTER OF CEO 37958 WAGES 0 X 440215 FMV X 16793688 FMV X 1013 566060 FMV 0 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 III, LINE 2 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. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION MADE SIGNIFICANT CHANGES TO ITS BYLAWS DURING THE TAX YEAR TO ELIMINATE DUPLICATION AND OUTDATED PROVISIONS, TO CONFORM TO KENTUCKY LAW AND CURRENT PRACTICES AND TO UPDATE TERM LIMITS AND DUTIES OF THE BOARD OF DIRECTORS. 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 PROCESS HAS NOT CHANGED FROM PRIOR YEAR. THE AUDIT IS PRESENTED TO THE AUDIT COMMITTEE FOR FULL REVIEW AND ACCEPTANCE. THE AUDIT COMMITTEE REPORTS TO THE BOARD OF DIRECTORS THE RESULTS OF THE AUDIT AND THE BOARD ACCEPTS THE FINAL AUDIT. THE SELECTION OF THE INDEPENDENT ACCOUNTING FIRM IS CONDUCTED THROUGH THE AUDIT COMMITTEE. GOODWILL INDUSTRIES WORKSLLC 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 753157787 MISSION EMPLOYMENT KY 0 10247 GOODWILL INDUSTRIES OF KY INC GOODWILL TEMPORARY SERVICES OF KENTUCKY LLC 1325 SOUTH FOURTH STREET LOUISVILLE KY 40208 611316311 MISSION EMPLOYMENT KY 0 10000 GOODWILL INDUSTRIES OF KY INC