Educational Housing Services Inc.

“Form 990 provided to governing body the form 990 for 2015 was provided to the full board at the september 2016 board meeting for review and comment. Approval via board vote of the form 990 is required prior to filing the report to the irs.”

“Conflict of interest policy ehs' conflict of interest policy requires the filing by all board members and senior officers of the organization of annual conflicts disclosure statement. These are reviewed by the audit committee quarterly for any conflict. In december 2014, dennis r. Irvin was appointed to the board and he provided the conflict of interest disclosure at the june 2015 board meeting. In december 2012, the office of the attorney general of the state of new york ("oag") concluded its investigation of the organization and entered into an assurance of discontinuance ("aod") with the organization, its former ceo and president, and its former board of directors. The aod set forth specific findings and prospective relief whereby the organization would receive monetary compensation from funds set aside by the oag and funded by the former ceo and president and former board of directors and benefit from the rescinding of a contract with a service provider entered into by the former management of the organization. The net monetary relief pursuant to the aod totaling $5.3 million was to be applied by the organization for the benefit of the organization's student residents in the form of rebates totaling up to $1.5 million and capital expenditures of not less than $3.8 million to upgrade the rooms and amenities the organization provides to its student residents. The organization utilized an independent third party vendor to administer the rebate disbursement process. The rebate disbursement process involved identifying and communicating (through email and first class mail) with students who were residents during the years 2012 and 2013 and eligible for receiving the rebates linked to their period of their stay. For the year 2012, $505,037 was paid out to 4,758 students. For the year 2013, $495,012 was paid out to 5,032 students. This amounted to $1,000,049 which represented 67% of the amount of $1.5 million set aside by the aod to cover the issuance of rebates disbursed to eligible and verified students. The period for receiving rebates as per the aod has ended. Therefore, pursuant to arrangements made with the oag, the balance of $499,951 is to be utilized by the organization for additional dormitory improvements in its residences. Over the period from 2012-2015, the organization has upgraded several residences with improved wi-fi equipment and internet services, security cameras, new furniture, state of the art cooking facilities, and upgraded common area space at a cost of approximately $3.3 million. The organization has approximately $979,000 remaining from the aod funds, which amount will be used for upgrading rooms and amenities, new flooring and bathroom renovations among its residences during 2016-2017 consistent with the terms of the aod.”

“COMPENSATION POLICY 990 Part VI-LINE 15A: IN DECEMBER 2012, THE ORGANIZATION, WITH THE APPROVAL OF THE OFFICE OF THE ATTORNEY GENERAL OF THE STATE OF NEW YORK AND AFTER REVIEWING A REPORT FROM FERGUSON PARTNERS, AN OUTSIDE SEARCH AND EMPLOYMENT CONSULTANCY, ON APPROPRIATE COMPENSATION FOR CHIEF EXECUTIVES OF NON-PROFITS, ENTERED INTO A THREE YEAR EMPLOYMENT AGREEMENT WITH THE ORGANIZATION'S NEW PRESIDENT AND CEO. THIS AGREEMENT WAS DUE TO EXPIRE IN NOVEMBER 2015. IN JULY 2015, THE ORGANIZATION, WITH REVIEW AND APPROVAL OF THE GOVERNANCE, FINANCE AND COMPENSATION COMMITTEE AND INPUT FROM OUTSIDE COMPENSATION CONSULTANTS GRANT THORNTON, LLP, EXTENDED THE EMPLOYMENT CONTRACT OF ITS PRESIDENT FOR AN ADDITIONAL TERM OF FIVE YEARS ENDING NOVEMBER 11, 2020. IN ADDITION, THE BOARD APPROVED A ONE TIME SALARY INCREASE OF 7% EFFECTIVE NOVEMBER 12, 2015. PART VI - LINE 15B In 2014 THE ORGANIZATION ENGAGED GRANT THORNTON LLP TO REVIEW OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION TO PROVIDE THE BOARD WITH A DETERMINATION OF COMPENSATION FOR THOSE EMPLOYEES. AS A RESULT, THE ORGANIZATION INCREASED THE COMPENSATION IN 2014 AND BEGAN NEGOTIATING CONTRACTS WITH THE SENIOR VP OF MARKETING AND THE SENIOR VP OF STUDENT LIFE. THESE CONTRACTS WERE FINALIZED IN 2015. FOR 2015, ALL EMPLOYEES RECEIVED A MID YEAR 3% RAISE BUT OTHERWISE NO COMPENSATION DECISIONS WERE MADE FOR ANY OTHER OFFICER OR KEY EMPLOYEES OF THE ORGANIZATION. IN SEPTEMBER 2015, THE ORGANIZATION HIRED RAMALINGAM GANESH TO BE THE CHIEF FINANCIAL OFFICER. BEFORE AGREEING ON COMPENSATION FOR MR. GANESH, THE ORGANIZATION CONSULTED WITH GRANT THORNTON LLP FOR APPROPRIATE COMPENSATION FOR CHIEF FINANCIAL OFFICERS OF SIMILAR SIZE AS THE ORGANIZATION. IN ADDITION, THE GOVERNANCE, FINANCE AND COMPENSATION COMMITTEE APPROVED THE HIRING OF MR. GANESH.”

“Documents available for public inspection 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. The process has not changed from prior year.”

“Payroll ehs, inc. (ehs) contracts with adp total source for their human resources/payroll services. As such, all employees of ehs are a part of adp's professional employer organization (peo) group. For w-2 purposes, adp is listed as the employer of all ehs employees. Ehs 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 including regular interactions with management in person and telephonically as it relates to a particular entity.”

“Due to early adoption of fasb issued asu 2015-03 (subtopic 835-30) imputation of interest - simplifying the presentation of debt issuance costs, the bond issuance costs in 2014 were reclassed to tax exempt bond liabilities.”