2017-06-05T08:53:52-05:00 2016-12-31 410746749 CLIFTONLARSONALLEN LLP 220 SOUTH SIXTH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2016-01-01 411801498 MDI COMMERCIAL SERVICES MDIC 6519998200 3501 BROADWAY ST NE NO 100 MINNEAPOLIS MN 55413 MARVIN HANNON CFO 6519998200 2017-05-31 1 AMY HENDLEY P01300654 6123764500 67.137.57.251 2017-05-31 13:42:57 CD P EB5B0B88F5DF23A80CA306F7B03D11E28B72914C C75C06011B73D6F66A85DAF7D5BEDF01E370C5C1 2016 2021-01-29 14:40:06Z PETER MCDERMOTT 3501 BROADWAY ST NE NO 100 MINNEAPOLIS MN 55413 25269434 0 X WWW.MDI.ORG X 1994 MN SERVE PEOPLE WITH DISABILITIES BY OFFERING INCLUSIVE EMPLOYMENT OPPORTUNITIES AND SERVICES. 11 11 128 34 0 0 0 0 32413282 25269434 0 0 0 0 32413282 25269434 0 0 0 0 4451412 4749415 0 0 0 21840665 17582438 26292077 22331853 6121205 2937581 4289496 5293594 15792882 13859399 -11503386 -8565805 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 19018555 0 25269434 IN 2016, MDI AND ITS AFFILIATES EMPLOYED OVER 500 EMPLOYEES AND CONTRACT WORKERS OF WHICH APPROXIMATELY 50% ARE PEOPLE 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. 19018555 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 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 0 128 1 0 0 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 0 0 0 MN X MARVIN HANNON 6519998200 3501 BROADWAY STREET NE SUITE 100 MINNEAPOLIS MN 55413 KEITH OLSON BOARD CHAIR 1.00 3.00 X X 0 0 0 ELLEN HOEG BOARD VICE CHAIR 1.00 3.00 X X 0 0 0 JOHN LEMAY TREASURER 1.00 3.00 X X 0 0 0 PHIL BAKKEN DIRECTOR 1.00 3.00 X 0 0 0 BRYAN ETHRIDGE DIRECTOR 1.00 3.00 X 0 0 0 RICK HARDING DIRECTOR 1.00 3.00 X 0 0 0 JILL HESSELROTH DIRECTOR 1.00 3.00 X 0 0 0 MARY KAY JACOBSON DIRECTOR 1.00 3.00 X 0 0 0 FRED KLIETZ DIRECTOR 1.00 3.00 X 0 0 0 LEONARD ROTHLISBERGER DIRECTOR 1.00 3.00 X 0 0 0 NICHOLAS WILKIE DIRECTOR 1.00 3.00 X 0 0 0 PETER MCDERMOTT PRESIDENT & CEO 1.00 52.00 X 0 239281 25151 RODNEY L WOOD VP OPERATIONS 1.00 52.00 X 0 180794 15124 BARBARA MAJERUS VP SALES 1.00 52.00 X 0 130727 31971 MARVIN HANNON CFO 1.00 52.00 X 0 129636 4540 0 680438 76786 0 0 1 0 MINNESOTA DIVERSIFIED INDUSTRIES INC 3501 BROADWAY ST NE SUITE 100 MINNEAPOLIS MN 55413 MANAGEMENT SERVICES 3313298 EXPRESS SERVICES INC 414 WEST SUPERIOR ST SUITE 411 DULUTH MN 55802 TEMP AGENCY PROVIDING TEMPORARY LABOR 1183339 ALWAYS THERE STAFFING 3131 1ST AVENUE SUITE B HIBBING MN 55746 TEMP AGENCY PROVIDING TEMPORARY LABOR 711581 CASE STAFFING SOLUTIONS 6900 SHADY OAK ROAD SUITE 250 EDEN PRAIRIE MN 55344 TEMP AGENCY PROVIDING TEMPORARY LABOR 225729 4 MANUFACTURING SERVICES 310000 25269434 25269434 25269434 25269434 25269434 0 0 X 3762071 3762071 747577 747577 239767 239767 3313298 3313298 2311254 2311254 19968 19968 1269668 1269668 36844 36844 664452 664452 COST OF GOODS SOLD 9376620 9376620 SUPPLIES 399642 399642 MISCELLANEOUS 164966 164966 EQUIPMENT RENTAL 25726 25726 22331853 19018555 3313298 0 632727 944965 1311605 1358909 11619476 8629756 2345164 2989720 4289496 5293594 15792882 13859399 15792882 13859399 X -11503386 -8565805 -11503386 -8565805 4289496 5293594 2937581 0 X 0 1 X 1 0 X X 1 MDI GOVERNMENT SERVICES 411801370 7 1 19018555 0 1 19018555 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 433525 226424 207101 11185951 8403332 2782619 2989720 INTERCOMPANY PAYABLE 13859399 13859399 X PART X, LINE 2: MDI COMMERCIAL SERVICES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, MDI COMMERCIAL 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 0 0 0 0 0 0 0 0 PETER MCDERMOTT PRESIDENT & CEO 0 210820 0 26775 0 1686 0 7091 0 18060 0 264432 0 0 RODNEY L WOOD VP OPERATIONS 0 159323 0 20250 0 1221 0 5488 0 9636 0 195918 0 0 BARBARA MAJERUS VP SALES 0 93311 0 36645 0 771 0 3942 0 28029 0 162698 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. THE EXECUTIVE COMMITTEE OF THE BOARD IS RESPONSIBLE FOR DETERMINING COMPENSATION OF OFFICERS AND KEY EMPLOYEES. THE PROCESS INCLUDES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISIONS. THIS PROCESS WAS MOST RECENTLY UNDERTAKEN IN MARCH 2016. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION MDI COMMERCIAL SERVICES IS ONE OF FOUR RELATED NONPROFIT CORPORATIONS, WHICH ALSO INCLUDE MINNESOTA DIVERSIFIED INDUSTRIES, INC.; MDI GOVERNMENT 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 4A, 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 1,000 BY THE END OF FY2019. 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 HAS 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 GOVERNMENT SERVICES, AND MDI HIRED HANDS, ALL RELATED ORGANIZATIONS, ARE ALSO ELECTED TO THE BOARD OF DIRECTORS OF MDI COMMERCIAL SERVICES. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT COPY OF THE FORM 990 WILL BE REVIEWED BY THE FINANCE COMMITTEE AND SUBMITTED FOR REVIEW AND APPROVAL TO THE BOARD OF DIRECTORS PRIOR TO 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 2,139,247. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,139,247. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 172,007. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 172,007. 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 12B, II N/A 0 MDI GOVERNMENT SERVICES 3501 BROADWAY ST NE STE 100 MINNEAPOLIS MN 55413 411801370 DEVELOPMENT & JOB OPPORTUNITIES FOR PEOPLE WITH DISABILITIES MN 501(C)(3) LINE 7 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 10 MINNESOTA DIVERSIFIED INDUSTRIES INC 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 1 1 1 1