Criterion Child Enrichment Inc

“Criterion child enrichment, inc. ("criterion") has engaged human services management corporation, inc. ("hsmc") to provide management and other services. Please see below for a complete description of the services provided by hsmc.”

“Board minutes are maintained and approved for each board of directors meeting. The organization does not have committees with authority to act on behalf of the board of directors.”

“The board of directors accepts and approves a final copy of form 990 before it is filed.”

“All officers and directors of the organization are required to annually complete and sign a conflict of interest form disclosing any potential interests that could give rise to conflicts. The conflict of interest forms are accepted and approved by the board of directors. Board members abstain from the approval of any transactions in which they have a conflict of interest. Such transactions must be approved by an affirmative vote of a majority of disinterested directors.”

“The organization's audited financial statements are available to the public via the websites of certain state regulatory agencies as well as upon request. Other documents are available upon request.”

“Direct care consulting: program service expenses 273,236. Management and general expenses 0. Fundraising expenses 0. Total expenses 273,236. Third-party billing services: program service expenses 914,108. Management and general expenses 0. Fundraising expenses 0. Total expenses 914,108. Insurance coordination services: program service expenses 712,115. Management and general expenses 0. Fundraising expenses 0. Total expenses 712,115. Employee benefit consulting: program service expenses 0. Management and general expenses 9,307. Fundraising expenses 0. Total expenses 9,307. Temporary staffing: program service expenses 150,968. Management and general expenses 0. Fundraising expenses 0. Total expenses 150,968. Other professional services & consulting: program service expenses 83,402. Management and general expenses 2,388. Fundraising expenses 0. Total expenses 85,790. Program administrative support fee - it services: program service expenses 135,406. Management and general expenses 1,491. Fundraising expenses 0. Total expenses 136,897. Program administrative support fee - recruiting: program service expenses 102,863. Management and general expenses 1,132. Fundraising expenses 0. Total expenses 103,995. Program administrative support fee - credentialing: program service expenses 75,139. Management and general expenses 0. Fundraising expenses 0. Total expenses 75,139. Program administrative support fee - social media: program service expenses 1,678. Management and general expenses 19. Fundraising expenses 0. Total expenses 1,697. Information technology consulting: program service expenses 0. Management and general expenses 13,106. Fundraising expenses 0. Total expenses 13,106. Production analyst services: program service expenses 37,597. Management and general expenses 0. Fundraising expenses 0. Total expenses 37,597. Payroll processing services: program service expenses 63,730. Management and general expenses 702. Fundraising expenses 0. Total expenses 64,432. Advertising & marketing services: program service expenses 15,690. Management and general expenses 0. Fundraising expenses 0. Total expenses 15,690.”

“Gain on interest rate swap agreement 1,012,756. Building impariment loss -854,348. Abandoned leasehold improvements -55,586. Investment loss (incl. Net real/unrealized losses) - deferred compensation -7,534. Change in value of deferred compensation liability 7,534. Limited partnerships- invest. Inc. (increase investment income on form 990) -683.”

“Finance the purchase real estate, construction of new facilities and certain costs of issuance, and refinance of a 2003 bond issue and certain other indebtedness.”

“Criterion has executed an agreement with human services management corporation, inc. ("hsmc"). Hsmc is a massachusetts corporation that provides shared business services, personnel, and equipment, which enables smaller providers access to technology beyond their financial capacity, and larger providers economy of scale savings in business and development services. As of january 1, 2020, the agreement provides for a five-year term. The agreement will automatically renew for another five-year term unless either party provides at least a one-year notice of non-renewal, or the arrangement is terminated as provided for in the agreement. Criterion's founder/director/ president/treasurer is also the founder/ director /president/ treasurer/stockholder of hsmc and does not receive compensation from hsmc in connection with services provided by hsmc to criterion. Management and program administrative support fees for financial, development, information technology, recruitment, human resources, facility management, marketing, social media coordination, and credentialing services are 6.5% of certain of criterion's gross budgeted operating revenues. Payments are due on the first day of each month. If actual revenues have exceeded the amount budgeted at the close of the fiscal year, criterion shall pay hsmc an amount equal to 7% of the actual operating revenues in excess of the gross budgeted operating revenues. Although not required by the management agreement, it has been the practice of hsmc to rebate to criterion an amount equal to criterion's share of hsmc's estimated profit related to the fees criterion pays hsmc, which is determined by criterion's pro rata share of hsmc's management and program administrative support fees. Management and program administrative support fees, third party billing services and special project services totaled $3,052,878 (this amount includes $1,238,594 of management/program administrative support fees, $914,108 of third party billing services and $900,176 of special project services) for the year ended june 30, 2022. Hsmc billed criterion for third-party billing and special project services at its actual cost of salary and fringe benefits and an allocation of actual occupancy and overhead expenses related to these services. These fees were net of $50,579 that hsmc rebated to criterion during the year ended june 30, 2022. Criterion has executed a lease agreement with granite park professional offices llc ("granite park") for office space. Hsmc also executed a lease agreement with granite park for office space at the same location and shares a portion of its space with criterion. Criterion entered into an agreement with hsmc in connection with the shared space under which it reimburses hsmc, at cost, for its pro rata share of rent and operating costs related to the shared space. Criterion paid $10,071, at cost, to hsmc under the shared space agreement during the year ended june 30, 2022. Criterion also reimbursed hsmc $514,283 for operating expenses incurred by hsmc on behalf of criterion during the year ended june 30, 2022. Hsmc billed criterion for these amounts at its cost. The founder/director/president/treasurer of criterion is also the founder/ director/ president/ treasurer of evergreen center, inc. ("evergreen"). Criterion rented storage space from evergreen on an at-will basis. Criterion paid $4,212, at cost, for the use of this space during the year ended june 30, 2022. In addition, criterion sold a motor vehicle to evergreen for $36,000 during the year ended june 30, 2022. The founder/director/president/treasurer of criterion is also the founder/ director/ president/ treasurer/stockholder of beacon aba services, inc. ("beacon"). Criterion purchased behavioral consultation, training services and child assessments at cost from beacon that totaled $6,804 for the year ended june 30, 2022. During the year ended june 30, 2022, criterion also reimbursed beacon for certain expenses paid by beacon on beha”