People Inc Consolidated Return

“During may 2012, an amendment of certificate of incorporation (certificate) was filed with the state of new york department of state to change the name of western new york task force on prevention of mental retardation and developmental disabilities, inc. (wny) to person-centered services of western new york, inc. (pcswny). Wny was an inactive corporation controlled by the board of people inc. On the same date an additional certificate was filed to revise pcswny's purposes and powers. On july 18, 2012, people inc.'s board of directors approved the agency's membership in pcswny. Pcswny is comprised of people inc. And other participant agencies, with the purpose of assisting governmental and private agencies in connection with developmental disabilities and to further investigate the possible formation of a non-governmental regional developmental disabilities individual support and care organization (disco) pursuant to opwdd proposals. The people inc. And pcswny boards also agreed on this date that people inc. Would continue to provide services to pcswny to maintain its books and records through march 31, 2013, and to monitor pcswny's continued compliance with the requirements of section 501(c)(3) of the irc under people inc.'s group exemption ruling until such time as pcswny obtains its own 501(c)(3) ruling from the irs. Pcswny will file separate information returns for the year ended december 31, 2013. People inc. Finger lakes people inc. Signed a memorandum of understanding dated november 20, 2012 to become the sole member of depaul developmental services (depaul) effective january 1, 2013. The implementation agreement dated december 27, 2012 further defined the transition of the opwdd programs from depaul to people inc. In accordance with the agreement, people inc. Paid depaul the sum of $200,000 as a reimbursement payment. People inc. Also made an additional payment of $59,505 to depaul which represented a severance payment made to a terminated employee of depaul. These payments, totaling $259,505, were recorded as deposits under other assets in the agency's consolidated statement of financial position as of december 31, 2012. An amendment of certificate of incorporation was filed march 1, 2013 to change the corporation's name from depaul developmental services, inc. To people inc. Finger lakes. The transfer was accounted for in the consolidated financial statements during 2013. A gain (loss) on acquisition of ($624,986) was recorded for the year ended december 31, 2013 for the amount that the fair value of liabilities and cash paid by people inc. Exceeded the fair value of the assets. This is included in part xi - line 9.”

“People inc. Utilize their auditors to prepare a draft copy of the form 990 from information provided by the management of people inc. The board of directors has assigned authority to the board audit committee to review the draft 990, make suggestions or directives for adjustments, and recommend approval of a final form that meets their agreement. The draft is presented to management for their approval. The auditors also present the draft information returns to the audit committee of the board of directors and allow them to identify any issues, questions, or concerns they have with the form 990. The audit committee then votes on whether or not they believe the return is accurate and whether they will recommend that it be approved by the board of directors. A recommendation is made by the audit committee to the board of directors who are encouraged to review the information returns themselves or ask questions of the audit committee. The board will accept the recommendation of the board audit committee as approval and uthorization for the final 990 to be submitted and released. The ceo will then sign form 8879-eo to authorize the auditors to file the form 990 electronically on behalf of the organization.”

“People inc.'s conflict of interest policy has two parts to it. The first part states that employees may not receive or accept any payment, gift or other personal economic benefit of value from any person or entity that has or seeks to have a business relationship with people inc. In november/december an agency wide e-mail is sent out to reinforce this portion of the policy. The reminder states that if there is a gift given directly to the site/program/department the gift should be donated to the foundation or the agency. Employees are also directed to the corporate compliance officer to answer any questions from employees. The second part of the policy states that employees may not accept employment with an organization that has a relationship with people inc. Where the employee may gain financially or accept employment that will interfere with their employment at people inc. Employees are made aware that they must disclose any employment outside of people inc. That may create a conflict of interest. The entire policy is discussed at departmental meetings with the corporate compliance officer as well as reviewed at management training. The policy is contained in the employee handbook which all employees are able to access through the employee intranet. In addition, supervisors are asked to revisit this policy with their staff especially around the holidays.”

“People inc. Determines the compensation of the organization's president/ceo by having an independent contractor perform the following: 1) evaluate the current base salary for market competitiveness. 2) review the benefits and prerequisites provided. 3) develop recommendations for all components of the president/ceo's compensation. The board of directors then evaluates the recommendations from the third-party and votes on the recommendations provided. For senior staff and key employees, people inc. Determines their salary by using the following process: every three years the firm of the burke group, reviews the job responsibilites of the staff and does an industry comparison of duties, qualifications and the scope of the job. The completed report is used to adjust salaries on a year by year basis to meet the recommended ranges. Over the three year period, the outside salary evaluation comparison may be reviewed more frequently if there has been significant growth and/or change in responsibilities. Over a series of meetings, the ceo provides input into the pre-comparison data which includes job descriptions, organizational charts and a discussion of the position. The comparison report is then reviewed and discussed with the burke group consultant.”

“An annual report is produced yearly by the public affairs department. Copies are available to the public by request at no charge. Also, it is available on line through people inc.'s website.”

“The conflict of interest policy, governing documents, and financial statements are available upon request at no charge.”

“MUSEUM STORE SALES”

“Loss on acquisition related to people inc. Finger lakes -624,986.”

“The process has not changed from the prior year.”