2015-08-11T03:01:57-00:00 2014-09-30 990 2013-10-01 150589832 SRC Inc SRCI 3154528000 7502 Round Pond Road North Syracuse NY 13212 Philip Fazio Executive VP Finance CFO 3154528811 2015-08-11 false 2013 2016-04-25 22:37:26Z Phil Fazio 7502 Round Pond Road North Syracuse NY 13212 142747317 false X www.srcinc.com X 1957 NY SRC, Inc. is a Scientific RD Company that provides innovative solutions to the US Government and other selected markets through advances in science, technology public involvement, leadership, and academic partnerships. 9 4 1013 1365452 -49029 0 131845136 124610527 15156778 12670742 6229950 5466048 153231864 142747317 0 0 108237028 99425325 0 0 42470781 37923274 150707809 137348599 2524055 5398718 292750829 300162447 31787359 33962183 260963470 266200264 Help keep America safe and strong by protecting its people, environment, and way of life. We will do this by focusing on our customers needs and emerging threats, through the innovative application of science, technology, and information to solve problems of national significance. false false 111260284 124610527 Expenses arising in connection with Scientific Research and Development services provided mainly to the Federal Government in the areas of Defense, Environment, and Intelligence. 111260284 true false false true false false false false false false true false true false true true false true false true true false false false false false false false false true true false false false false false false false true true true false false false false true true true true false false true 133 0 true 1013 true true true false false false false false false false false false X 9 4 true false false false false false false true true false false true true true true true true true true false NY CA X Philip Fazio 3154528811 7502 Round Pond Road North Syracuse NY 13212 Robert U Roberts Trustee 001.00 X X 63167 0 1265 M Catherine Richardson Chairperson 001.00 X 45000 0 0 Thomas Triscari Vice Chairperson 001.00 001.00 X 43500 11000 0 Patricia Civil Trustee 001.00 X 42500 0 0 Frank Saus Trustee 001.00 X 40000 0 0 Allen Naples Trustee 001.00 X 41667 0 0 Lawrence Sala Trustee 001.00 X 39000 0 0 Donald Kerrick Trustee 001.00 X 36500 0 0 F William Smullen III Trustee 001.00 X 36500 0 0 Paul G Tremont President 040.00 X X 602953 0 77116 Philip Fazio Executive VP, Finance Chief Financial Officer 040.00 X 407528 0 60552 James F Holland Executive Vice President, Enterprise Services 040.00 X 374313 0 56348 Robert P Lane Executive Vice President, General Counsel 040.00 X 371432 0 47285 Anthony J Albanese Executive VP Defense Environmental Solutions 040.00 X X 376970 0 47266 Joseph T Lauko Executive VP Intelligence Information Systems 040.00 040.00 X 347613 0 49250 Kevin Hair Executive VP, Strategy Business Development 040.00 X 269051 0 27051 Pauline C Fuller Former Executive VP, Chief Risk Officer 040.00 X X 1051979 0 42368 Thomas A Wilson Vice President Product Accounts 040.00 X 317893 0 33775 David L Sprague AVP Contracts 040.00 X 224975 0 36390 Joseph Davies AVP Operational Finance 040.00 X 34531 236981 35930 James R Periard AVP Business Development 040.00 X 255265 0 38481 Gregory Czarnomski Sensitive Activity Integrator 040.00 X 250529 0 20607 Joseph Kauffman Sensitive Activity Integrator 040.00 X 247724 0 20014 Richard Wells AVP Information Technology 040.00 X X 239768 0 38626 5760358 247981 632324 332 true true false Defense Point Security LLC 110 Compass Cove Stafford VA 22554 Security Consultants 912150 MI Technologies LLC 1125 Satellite Blvd Suite 100 Suwanee GA 30024 Systems Subcontractor 598000 Lyteworx Automation Systems LLC POBox 116999 Atlanta GA 30368 Surveillance Intelligence 464360 Bond Schoeneck & King One Lincoln Center Syracuse NY 13202 Legal Consultants 336550 Ernst & Young LLP 100 Madison Street Suite 1900 Syracuse NY 13202 Accounting/Auditing Services 289332 14 Defense and Environmental Solutions 541700 62693344 61804250 889094 Intelligence Information Systems 541700 61917183 61800485 116698 124610527 12670742 12670742 5106137 5106137 Miscellaneous Income 812900 359911 251 359660 359911 142747317 123604986 1365452 17776879 0 0 0 0 3590487 3590487 0 66341821 55875236 10466585 7301276 5841021 1460255 16469784 14359175 2110609 5721957 4577566 1144391 0 340417 91416 249001 187503 187503 249731 249731 0 1866964 1277922 589042 243236 157555 85681 671744 553472 118272 1554831 1297163 257668 0 3259834 2719611 540223 2694961 2437190 257771 0 452089 166385 285704 21838 21838 0 4709389 3924392 784997 802414 542157 260257 Materials Deferred Costs 4896304 4896304 Subcontractors 9230345 9230345 Repair Maintenance 1040018 867665 172353 Income / Property Taxes 1281871 1270169 11702 4419785 1175540 3244245 137348599 111260284 26088315 0 3600 3100 14007900 15938577 28471966 24898494 153468 1439172 870789 660734 80703593 40522284 42478013 40181309 181568582 193509886 18117552 18197135 7078959 5334040 292750829 300162447 5600372 8108532 18065000 17165000 8121987 8688651 31787359 33962183 X 260963470 266200264 260963470 266200264 292750829 300162447 X 5398718 -161924 X false true X true true true X 0 0.00000 70920353 81354634 85403748 81408341 74966387 394053463 51005982 59506143 54013438 49206368 47978688 261710619 121926335 140860777 139417186 130614709 122945075 655764082 655764082 34280795 72519506 38135211 20993539 17776879 183705930 145208 145208 34426003 72519506 38135211 20993539 17776879 183851138 0 567 117 251 935 156352338 213380850 177552514 151608248 140722205 839616155 0.78100 0.77220 0.21900 0.22780 X Part III Line 12 Columnb 2010 - Other revenue consists of Miscellaneous Income 567. Part III Line 12 Columnc 2011 - Other revenue consists of Miscellaneous Income 117. Part III Line 12 Columne 2013 - Other revenue consists of Miscellaneous Income 251. false true false false false false true 249731 false false 249731 false false II-B b,g Throughout the year, a few members of SRC, Inc.s staff may have direct contact with legislators, their staff, or other Government officials relating to our primary Department of Defense systems. SRC, Inc. also contracts with outside consultants that lobby on behalf of our primary programs. The total costs incurred in the current year were 249,731. false 793857 793857 38996215 7897810 31098405 3875274 2985531 889743 26320096 21881707 4438389 10718151 7757236 2960915 40181309 Financial derivatives and other financial products Closely-held equity interests Tax Deferred Section 457 Plan Assets 927327 F Investment in For-Profit Subsidiary 17267808 F Investment in For-Profit Subsidiary 2000 F 18197135 Federal income taxes Employee Benefits Withheld Accrued 592689 Tax Deferred Section 457 Plan Liability 927327 Billings in Excess of Costs 2035953 Vacation Accrual 3935572 Income Taxes Payable 1197110 8688651 X 142030779 -716538 -716538 142747317 142747317 136632061 136632061 716538 716538 137348599 X 2 The provisions of ASC 740, Income Taxes, provide recognition criteria and a related measurement model for tax positions taken by the Company. In accordance with ASC 740, a tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not likelihood of greater than 50, based on technical merits, that the position would be sustained upon examination. Tax positions that meet the more-likely-than-not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50 likely of being realized upon settlement. No liability for uncertain tax positions was recorded by the Company at September 30, 2014 and 2013. XI 2d Other - Miscellaneous expense items reported as expense on Form 990 716,538. XI 4b Other - Miscellaneous expense items reported as expense on Form 990 716,538. East Asia and the Pacific 8 Program Services U.S. Government Contract Support 68474 Europe 24 Program Services Contract Support Conferences 255635 Middle East and North Africa 5 Program Services U.S. Government Contract Support 34874 North America 13 Program Services Contract Support Conferences 30854 Central America and the Caribbean 3 Program Services U.S. Government Contract Support 25528 South Asia 13 Program Services U.S. Government Contract Support 442602 66 66 857967 857967 false false false false false false Part I Line 3 SRC, Inc. does not maintain any offices in any foreign country. The activities disclosed in Part I, Line 3 represent costs associated with various employee trips to the identified regions. The primary activities conducted on these trips is to provide contract support as required by the U.S. Government and other customers. Additional activities include project planning, business development and attending conferences. X X X true true X X X true true false true true true true false false Robert U Roberts Trustee 63167 1265 64432 Paul G Tremont President 396992 203639 2322 58614 18502 680069 Philip Fazio Executive VP, Finance Chief Financial Officer 277580 127626 2322 40923 19630 468081 James F Holland Executive Vice President, Enterprise Services 258480 114047 1786 37959 18389 430661 Robert P Lane Executive Vice President, General Counsel 251889 115979 3564 37210 10075 418717 Anthony J Albanese Executive VP Defense Environmental Solutions 274400 100248 2322 37702 9564 424236 Joseph T Lauko Executive VP Intelligence Information Systems 259833 86970 810 35142 14107 396862 Kevin Hair Executive VP, Strategy Business Development 210833 57178 1040 27051 296102 Thomas A Wilson Vice President Product Accounts 246131 69501 2261 25500 8275 351668 David L Sprague AVP Contracts 182956 40348 1672 22693 13697 261366 Joseph Davies AVP Operational Finance 34217 176833 58552 315 1596 4930 21437 9564 49026 258418 James R Periard AVP Business Development 209704 44517 1044 25500 12981 293746 Gregory Czarnomski Sensitive Activity Integrator 222473 27875 181 15996 4610 271135 Joseph Kauffman Sensitive Activity Integrator 218494 29091 140 15367 4648 267740 Richard Wells AVP Information Technology 187480 51681 607 24518 14107 278393 Pauline C Fuller Former Executive VP, Chief Risk Officer 198522 102498 750959 25500 16868 1094347 Part I Line 1a The Company may Charter a plane for a trip that requies a group of employees to travel to a specific location. An officer, key employee or one of the five highest paid employees could be part of that group. A Charter will only be booked if it results in lower cost than commercial flights at standard coach fares for all in the group. Officers, key employees and the five highest paid employees may fly first class if and only if a free upgrade is used, no coach or business class accommodations are reasonably available, there is a documented medical need, or the person is traveling on an excessively long foreign trip. Part I Line 1a The company may provide travel for companions for required Company related functions. The cost of such travel is included in the officer, key employee, or five highest paid employees compensation. Part I Line 1a The Company provides certain taxable fringe benefits that are grossed-up for payroll reporting. The full value of these benefits has been included in the officer, key employee, or five highest paid employees compensation. Part I Line 4a November 2013 Pauline C. Fuller resigned from the Company. As part of her separation agreement the Company paid Ms. Fuller severance in the amount of 750,000. All amounts have been disclosed on Schedule J, Part II. Part I Line 4b The Company provides a Section 457f non-qualified deferred compensation plan for the Officers. The plan is funded entirely by the Company and contributions are held in investment funds with a local investment bank. The Company has ownership of the plan assets until the participant has a distributable event. The Company made contributions of 96,101 to the plan in calendar year 2013. Part I Line 5a The Company provides various incentive compensation plans of which all of the officers, key employees and some of the five highest paid compensated employees participate in. The incentive compentsation plans are a balance score card approach of which one of the metrics of the calclation is based on revenues. Part I Line 5b Similiar to the Companys various incentive compensation plans, the related Organization SRCTec, Inc. provides various incentive compensation plans of which the officer disclosed participated in. The incentive compentsation plans are a balance score card approach of which one of the metrics of the calclation is based on revenues. Part I Line 6a The Company provides various incentive compensation plans of which all of the officers, key employees and some of the five highest paid compensated employees participate in. The incentive compentsation plans are a balance score card approach of which one of the metrics of the calclation is based on net earnings. Part I Line 6b Similiar to the Companys various incentive compensation plans, the related Organization SRCTec, Inc. provides various incentive compensation plans of which the officer disclosed participated in. The incentive compentsation plans are a balance score card approach of which one of the metrics of the calclation is based on net earnings. A Onondaga County Industrial Development Agency 161093714 682747GM6 2005-12-14 17835000 Acquire property, construct and equip new facility false false false A 17835000 610220 17224780 false false true true A false true false false 0.01040 0.01040 true false A false false true false true false false false false A false Part I Line A 2005 Series Onondaga County Industrial Development Agency Bonds. Bonds are payable in quarterly installments commencing 12/1/07 through 12/1/31. Payments of princopal plus interest at a variable rate determined on a weekly basis using SIFMA index plus 0.450.04 at 9/30/14 plus 0.05. Obligation is collateralized by a letter of credit. Allen J Naples Trustee 1006654 See Part V false Lawerence Sala Trustee 555 See Part V false Anthony J Albanese Former Officer 94872 See Part V false Philip Fazio Officer 73720 See Part V false Pauline C Fuller Former Officer 30742 See Part V false Part IV Line 1 Allen Naples, a member of the Board of Trustees, is the Regional President of MT Bank. SRC, Inc. uses MT Bank for their commercial banking needs. All transactions with MT Bank have occurred at arms length and are at fair market value. Mr. Naples recuses himself from any Board votes concerning MT Bank related transactions. Total fees paid to MT Bank were 1,006,654 for the current fiscal year. Part IV Line 2 Lawrence Sala, a member of the Board of Trustees, is the President CEO of Anaren, Inc. SRC, Inc. has entered into a number of contractual relationships with Anaren, Inc. during the current fiscal year. All transactions with Anaren, Inc. have occurred at arms length and are at fair market value. Mr. Sala recuses himself from any Board votes concerning Anaren, Inc.s related transactions. Total fees paid to Anaren, Inc. were 555 for the current fiscal year. Part IV Line 3 Two family members of Anthony J. Albanese, a Former Officer of SRC, Inc. serve as employees of the organization and received compensation during the year. Compensation paid to Anthonys son was 93,828 and compensation paid to Anthonys daughter was 1,044 in the current fiscal year. Part IV Line 4 A family member of Philip Fazio, an Officer of SRC, Inc. serves as an employee of the organization and received compensation during the year. Compensation paid to Philips son was 73,720 in the current fiscal year. Part IV Line 5 A family member of Pauline Fuller, a Former Officer of SRC, Inc. serves as an employee of the organization and received compensation during the year. Compensation paid to Paulines daughter was 30,742 in the current fiscal year. Form 990, Part VI, Section A, Line 2 Business Relationships between Officers, Directors, Trustees and Key Employees Robert U Roberts, Chairperson of SRC, Inc.s Board of Trustees was a member of the Board of Directors of Anaren, Inc. until February 2014. Two other members of SRCs Board of Trustees, Patricia Civil and Lawrence Sala are members of Anaren, Inc.s Board of Directors. In addition, Lawrence Sala is the President CEO of Anaren, Inc. Form 990, Part VI, Section A, Line 2 Business Relationships between Officers, Directors, Trustees and Key Employees M. Catherine Richardson, Chairperson of SRC, Inc.s Board of Trustees is a current member of the Regional Advisory Board at MT Bank. One member of SRC s Board of Trustees, Allen J. Naples is the Regional President of MT Bank. Form 990, Part VI, Section B, Line 11b Process used to review Form 990 The Form 990 of SRC, Inc. is prepared by the Finance staff and provided to senior management for review prior to filing. The Form 990 is also reviewed by the Audit Committee of SRC, Inc.s Board of Trustees and a copy is provided to all members of SRC, Inc.s Board of Trustees prior to filing. All questions and comments by senior management and the Board of Trustees were addressed prior to filing. In addition a training session on the Redesigned Form 990 was conducted by PricewaterhouseCoopers, LLP for the benefit of senior management and the Audit Committee of the Board of Trustees. Form 990, Part VI, Section B, Line 12c Written Conflict of Interest Policy Conflict of Interest disclosure statements are completed annually by all members of the Board of Trustees, Officers, and Key employees of SRC, Inc. Once the disclosure statements have been collected, the statements are reviewed by members of the legal office. All reported potential conflicts of interest are evaluated and discussed among the parties. Board of Trustee members, Officers, and Key employees are required to disclose a conflict of interest and recues themselves from voting on or otherwise discharging their duties with respect to any matter involving the conflict which comes before the Board or prior to entering into any contract or transaction involving the conflict. Form 990, Part VI, Section B, Line 15b Process for Determining Compensation The Compensation for all Officers of SRC, Inc. is recommended by the Personnel and Compensation Committee of the Board and approved by the Board of Trustees. The Personnel and Compensation Committee members are all outside Board of Trustee members. Human Resources is responsible for providing to the Personnel and Compensation Committee a reasonable compensation study which is conducted by an unrelated third party on an annual basis. A comparability study is also conducted to aid in determining the Key employees salaries. The Officers of SRC are responsible for reviewing and approving the compensation of the Key Employees of SRC, Inc. Form 990, Part VI, Section B, Line 16b Joint Venture Policy SRC, Inc. has adopted a written policy requiring the organization to evaluate all potential participation in joint venture arrangements under applicable federal tax law and has procedures in place to safeguard the organizations exempt status with respect to potential arrangements. SRC, Inc. did not invest in, contribute assets to or participate in a joint venture or similar arrangement with any entity during the current year. Form 990, Part VI, Section C, Line 19 Public Inspection of Form 990 and Governing Documents SRC, Inc. makes its Form 1023 and Form 990 available for public inspection upon request. SRC, Inc.s governing documents, conflict of interest policy and audited financial statements are not routinely made available to the general public. Form 990, Part XI, Line 9 Reconciliation of Net Assets - Other Changes in net assets or fund balances Decrease in Postretirement benefits adjustment 161,924. Syracuse Research LLC 7502 Round Pond Road North Syracuse NY 13212 300560841 Holding Company NY SRC Inc SRC Cyber LLC 7502 Round Pond Road North Syracuse NY 13212 463464086 Cybersecurity NY SRC Ventures Inc SRC Acumen LLC 7502 Round Pond Road North Syracuse NY 13212 463442483 Assay RD NY SRC Ventures Inc SRC Shadowstripe Technologies LLC 7502 Round Pond Road North Syracuse NY 13212 463453426 RD NY SRC Ventures Inc Gryphon Sensors LLC 7502 Round Pond Road North Syracuse NY 13212 471485488 RD NY SRC Ventures Inc SRCTec Inc 5801 East Taft Road North Syracuse NY 13212 204641594 Manufacturing NY SRC Inc C Corp 10877679 99961433 1.00000 true SRC Ventures Inc 7502 Round Pond Road North Syracuse NY 13212 800946320 Holding Company NY SRC Inc C Corp -656607 9957 1.00000 true true false false false false true true true false false false true true true false true true true false SRCTec Inc a 5106137 Book Value SRCTec Inc f 7000000 Book Value SRCTec Inc g Book Value SRCTec Inc h 487064 Book Value SRCTec Inc l 21742480 Book Value SRC Ventures Inc l 343017 Book Value SRCTec Inc m 1118732 Book Value SRCTec Inc n Book Value SRCTec Inc p 46681 Book Value SRCTec Inc q 1031438 Book Value SRC Ventures Inc q 73141 Book Value SRC Ventures Inc r 200000 Book Value Part V Line 1g When business needs arise, the Companies may sell assets to each other. All sales are done at net-book-value. There were no sales transactions identified from SRC to SRCTec, Inc. or SRC Ventures, Inc. in the current year. Part V Line 1n SRCTec, Inc. provides office space for one of the support services groups that are all employees of SRC, Inc. There is no charge between Companies for the use of this office space.