2013-11-15T10:59:59-06:00 2012-12-31 133842744 MBAF CPAS LLC 440 PARK AVENUE SOUTH - 5TH FL NEW YORK NY 10016 990 2012-01-01 200043817 EHS I INC EHSI 2129777622 55 CLARK STREET BROOKLYN NY 11201 JEFFREY LYNFORD 2129777622 2013-11-13 1 P00236664 2125761400 2012 2016-03-07 17:11:31Z JEFFREY LYNFORD 55 CLARK STREET BROOKLYN NY 11201 14033930 0 X WWW.STUDENTHOUSING.ORG X 2003 NY THE EHS MISSION IS A LIVING CONCEPT, PROVIDING SAFE, AFFORDABLE AND QUALITY HOUSING FOR STUDENTS FROM ACROSS AMERICA AND AROUND THE WORLD. 4 0 0 0 0 0 0 0 13627591 14001770 44 50 547 32110 13628182 14033930 0 0 0 0 679770 719987 0 0 0 11538404 11577566 12218174 12297553 1410008 1736377 11417976 13058255 1451573 1355475 9966403 11702780 THE EHS MISSION IS A LIVING CONCEPT, PROVIDING SAFE, AFFORDABLE AND QUALITY HOUSING FOR STUDENTS FROM ACROSS AMERICA AND AROUND THE WORLD. 0 0 11699083 14033880 TO ACQUIRE BY LEASE OR OTHERWISE, MAINTAIN AND OPERATE IN PRIME NEIGHBORHOODS QUALITY, SAFE, STATE OF THE ART, AFFORDABLE, RESIDENTIAL FACILITIES FOR STUDENTS AND TEACHERS OF EDUCATIONAL INSTITUTIONS. EHS I, INC. ALSO COORDINATES A STUDENT LIFE SOCIAL CALENDAR WHICH PROMOTES STUDENT ACTIVITIES WITHIN THE COMMUNITY. 11699083 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 1 0 0 1 23 0 1 0 0 0 0 0 0 0 0 0 0 0 X 4 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X JOSEPH LA VACCA 2129777622 55 CLARK STREET BROOKLYN NY 11201 JOHN SHEEHAN 1.00 6.00 X 3571 21429 0 MICHAEL LERNER 1.00 6.00 X 5571 33429 0 JAMES BARNES 1.00 6.00 X 5071 30429 0 CHARLES LEE 1.00 6.00 X 5286 31714 0 JOAN CEAR 1.00 6.00 X 2714 16286 0 GEORGE SCOTT 3.50 31.50 X 66869 601821 74108 JOSEPH LA VACCA 6.00 29.00 X 24135 117835 25601 JEFFREY LYNFORD 2.50 32.50 X 5528 68174 0 FAYE BEAN 7.00 28.00 X 30271 121082 30345 CHRISTY CHATFIELD 7.00 28.00 X 28999 115997 35522 JESSICA VAN GINNEKEN SILLARO 7.00 28.00 X 22867 91465 23035 ADAM B KAUFMAN 7.00 28.00 X 28014 112059 23035 KEVIN GROSS 7.00 28.00 X 21381 85525 12805 250277 1447245 224451 0 0 1 0 ALLIED BARTON SECURITY SERVICE PO BOX 828854 PHILADELPHIA PA 19182 SECURITY SERVICE 189609 BUSY BEE CLEANING SVC 87-18 87TH STREET STE 2R WOODHAVEN NY 11421 CLEANING SERVICE 133954 2 HOUSING AND DORMITORY 721310 14001770 14001770 14001770 50 50 OTHER REVENUE 900099 32110 32110 32110 14033930 14033880 0 50 136382 136382 512033 213646 298387 32835 32835 38737 38737 10406 10406 71796 69762 2034 15052 15052 14165 14165 732 732 10803625 10803625 567 567 17340 17340 151667 151667 91794 91794 REPAIRS AND MAINTENANCE 285066 282980 2086 STUDENT LIFE ACTIVITIES 85609 85609 MISCELLANEOUS 29747 29747 12297553 11699083 598470 0 99698 625170 482928 261675 2060590 1729650 482587 330940 10352763 11840470 11417976 13058255 118617 56340 1021213 1038545 227005 150850 84738 109740 1451573 1355475 X 9966403 11702780 9966403 11702780 11417976 13058255 1736377 0 X X 0 1 X 1 0 590260 413720 176540 1470330 1315930 154400 330940 SECURITY DEPOSITS 392550 DUE FROM RELATED ENTITIES 11447920 11840470 DUE TO RELATED ENTITIES 109740 109740 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ACCOUNTING STANDARD FOR UNCERTAINTY IN INCOME TAXES PRESCRIBES A MINIMUM RECOGNITION THRESHOLD AND MEASUREMENT METHODOLOGY THAT A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. IT ALSO PROVIDES GUIDANCE FOR DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE, AND TRANSITION. THE ORGANIZATION IS SUBJECT TO REGULAR AUDIT BY TAX AUTHORITIES. IN ASSESSING THE REALIZABILITY OF TAX BENEFITS, MANAGEMENT CONSIDERS WHETHER IT IS MORE LIKELY THAN NOT THAT SOME PORTION OR ALL OF ANY TAX POSITION WILL NOT BE REALIZED. THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR THE POSITIONS TAKEN ON ITS TAX RETURNS. NONETHELESS, THE AMOUNTS ULTIMATELY PAID, IF ANY, UPON RESOLUTION OF THE ISSUES RAISED BY THE TAXING AUTHORITIES MAY DIFFER MATERIALLY FROM THE AMOUNTS ACCRUED FOR EACH YEAR. MANAGEMENT BELIEVES THAT ITS TAX-EXEMPT STATUS WOULD BE SUSTAINED UPON EXAMINATION. WHEN APPLICABLE, THE ORGANIZATION WOULD CLASSIFY INTEREST AND PENALTIES ON UNDERPAYMENTS OF INCOME TAX AS ADMINISTRATION EXPENSE. THE ORGANIZATION FILES INFORMATIONAL TAX RETURNS IN THE UNITED STATES FEDERAL AND NEW YORK STATE JURISDICTIONS. WITH FEW EXCEPTIONS, THE ORGANIZATION IS NO LONGER SUBJECT TO U.S. FEDERAL, STATE, OR LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. X X X X X 0 0 0 GEORGE SCOTT 66869 601821 0 0 0 0 0 17000 0 57108 66869 675929 0 0 JOSEPH LA VACCA 24135 117835 0 0 0 0 0 7079 0 18522 24135 143436 0 0 FAYE BEAN 28871 115482 1400 5600 0 0 0 17000 0 13345 30271 151427 0 0 CHRISTY CHATFIELD 28999 115997 0 0 0 0 0 17000 0 18522 28999 151519 0 0 ADAM B KAUFMAN 17832 71329 10182 40730 0 0 0 17000 0 6035 28014 135094 0 0 PART I, LINE 3 A COMPLETE COMPREHENSIVE REVIEW OF THE EHS PRESIDENT'S SALARY WAS CONDUCTED BY AN OUTSIDE, INDEPENDENT AGENCY, TOWERS PERRIN, WHICH WAS ADOPTED BY THE BOARD OF DIRECTORS. LOCAL SURVEYS, SUCH AS CRAIN'S NEW YORK BUSINESS, AND CHAMBER OF COMMERCE ARE UTILIZED WHEN DETERMINING SALARIES AND BENEFITS TO OTHER OFFICERS AND KEY EMPLOYEES. THIS PROCESS HAS NOT CHANGED FROM LAST YEAR. SUPPLEMENTAL INFORMATION PART III FOR COMMISSION PURPOSES, THE COMMISSIONS PAID TO THE MARKETING TEAM ARE DERIVED FROM THE TOTAL REVENUES FOR EHS ENTITIES AS DOCUMENTED IN THE MARKETING INCENTIVE TEAM BONUS PLAN. THIS PLAN WAS TERMINATED IN 2012. YUN SUK SCOTT SPOUSE OF PRESIDENT 1230729 PROVIDES INTERNET, TELEPHONE AND CABLE SERVICES BASED ON A COMPETITVE BID PROCESS. 0 FORM 990, PART VI, SECTION B, LINE 11 THE 990 WAS APPROVED BY THE AUDIT COMMITTEE, A SUB-COMMITTEE OF THE BOARD OF DIRECTORS, WHICH CONSISTS OF THE CHAIR OF THE AUDIT COMMITTEE AND TWO OTHER BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD TAKES THIS POLICY EXTREMELY SERIOUSLY; IT IS REVIEWED IN DEPTH EACH YEAR BY THE ENTIRE BOARD OF DIRECTORS AND OFFICERS WITH LEGAL COUNSEL. (SEE THE LAST PARAGRAPH OF SCHEDULE O REGARDING THE INVESTIGATION BY THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK). FORM 990, PART VI, SECTION B, LINE 15 A COMPLETE COMPREHENSIVE REVIEW OF THE EHS PRESIDENT'S SALARY WAS CONDUCTED BY AN OUTSIDE, INDEPENDENT AGENCY, TOWERS PERRIN, WHICH WAS ADOPTED BY THE BOARD OF DIRECTORS. LOCAL SURVEYS, SUCH AS CRAIN'S NEW YORK BUSINESS, AND CHAMBER OF COMMERCE ARE UTILIZED WHEN DETERMINING SALARIES AND BENEFITS TO OTHER OFFICERS AND KEY EMPLOYEES. THIS PROCESS HAS NOT CHANGED FROM LAST YEAR. FORM 990, PART VI, SECTION C, LINE 19 COPIES OF THE ANNUAL FINANCIALS AND OTHER GOVERNING DOCUMENTS ARE SENT TO THE STATE OF NEW YORK, NEW YORK STATE BOND COMMISSION, AND THE BOARD OF DIRECTORS. COPIES ARE ON FILE AND AVAILABLE UPON REQUEST. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FORM 990, PART XII, SECTION 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. ON JANUARY 1, 2010, EHS, INC. CONTRACTED WITH ADP TOTAL SOURCE FOR THEIR HUMAN RESOURCES/PAYROLL SERVICES. AS SUCH, ALL EMPLOYEES OF EHS BECAME PART OF ADP'S PROFESSIONAL EMPLOYER ORGANIZATION (PEO) GROUP. FOR W-2 PURPOSES, ADP IS LISTED AS THE EMPLOYER OF ALL EHS EMPLOYEES. EHS, INC. IS THE SOLE ENTITY THAT PAYS THE EMPLOYEES OF ALL THE RELATED/CONTROLLING ENTITIES. ALLOCATIONS ARE MADE FROM EHS TO THESE ENTITIES, BASED ON ACTUAL TIME WORKED BY EACH EMPLOYEE WHEN KNOWN, OR BY AN ALLOCATION OF MANAGEMENT SALARIES BASED UPON THE ESTIMATED TIME WORKED THROUGH THE YEAR ON THESE ENTITIES. HOURS OF BOARD MEMBERS ARE BASED UPON THE QUARTERLY AND MONTHLY MEETINGS AND INTERACTIONS WITH WHICH THE MEMBERS INTERACT WITH MANAGEMENT AS IT RELATES TO A PARTICULAR BUILDING. IN OCTOBER 2012, THE ORGANIZATION'S BOARD OF DIRECTORS TERMINATED THE EMPLOYMENT CONTRACT IT HAD PREVIOUSLY ENTERED INTO WITH THE EXISTING PRESIDENT, AND, IN NOVEMBER 2012 THE ORGANIZATION RETAINED A NEW EXECUTIVE TO FILL THIS POSITION. IN DECEMBER 2012, THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK (OAG) CONCLUDED IT'S INVESTIGATION OF THE ORGANIZATION AND ENTERED INTO ASSURANCE OF DISCONTINUANCE (AOD) WITH THE ORGANIZATION, ITS FORMER PRESIDENT AND ITS BOARD OF DIRECTORS. THE AOD REQUIRED THE FORMER PRESIDENT TO CONTRIBUTE $2,500,000, FORMER BOARD MEMBERS TO CONTRIBUTE $1,000,000 AND THE ORGANIZATION TO CONTRIBUTE $2,000,000 IN RESCISSIONARY BENEFITS RESULTING FROM THE CANCELLATION OF THE EXISTING CABLE AGREEMENT ENTERED INTO WITH A COMPANY OWNED BY THE SPOUSE OF THE FORMER PRESIDENT. THE TOTAL AMOUNT CONTRIBUTED PURSUANT TO THE AOD AMOUNTED TO $5,500,000. THESE FUNDS ARE TO BE USED AS FOLLOWS; (A) $200,000 IN OAG EXPENSES, (B) $1,500,000 FOR REFUNDS TO STUDENTS, AND (C) $3,800,000 FOR DORMITORY IMPROVEMENTS SCHEDULED TO OCCUR IN 2013 AND 2014. IN ADDITION AND PURSUANT TO THE AOD, THE ORGANIZATION AGREED TO TAKE IMMEDIATE STEPS TO REPLACE THE BOARD OF DIRECTORS WITH NEW DIRECTORS AND TO THE AMEND ITS BY-LAWS TO INCLUDE NEW PROVISIONS RELATING TO CONFLICTS OF INTEREST, INTERESTED PARTY TRANSACTIONS, THE STRUCTURE AND COMPENSATION OF BOARD COMMITTEES AND EXECUTIVE COMPENSATION. ALL OF THESE ACTIONS WERE COMPLETED IN 2013 AFTER APPROVAL BY THE OAG, WITH THE EXCEPTION OF THE DORMITORY IMPROVEMENTS WHICH WILL OCCUR IN 2014. A COPY OF THE AOD IS AVAILABLE UPON REQUEST. EHS INC 55 CLARK STREET BROOKLYN NY 11201 133411159 PROVIDING SAFE, AFFORDABLE STUDENT HOUSING FACILITIES THROUGHOUT NYC NY 501(C)(3) 9 N/A 0 EHS II INC 55 CLARK STREET BROOKLYN NY 11201 200108370 PROVIDING SAFE, AFFORDABLE STUDENT HOUSING FACILITIES THROUGHOUT NYC NY 501(C)(2) EHS INC 1 EHS III INC 55 CLARK STREET BROOKLYN NY 11201 200236647 PROVIDING SAFE, AFFORDABLE STUDENT HOUSING FACILITIES THROUGHOUT NYC NY 501(C)(2) EHS INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1 EHS INC R 7410214 TO COVER OPERATING EXPENSES EHS II INC R 665010 TO COVER OPERATING EXPENSES EHS INC S 6960020 TO COVER OPERATING EXPENSES EHS II INC S 2291769 TO COVER OPERATING EXPENSES EHS INC O 3551498 ALLOCATION OF HRS WORKED AT BLDGS EHS II INC O 750015 ALLOCATION OF HRS WORKED AT BLDGS