Innovative Services Inc.

“The organization contracted with community management initiative, inc. ("cmi") during the tax year to perform certain day-to-day administrative services and select management operations and was led by allen ray. Allen ray's duties places him as the top management official of the organization and he is reported as such on form 990, part vii. Allen ray was compensated by cmi for the 2020 tax year. The contractual amount between cmi and the organization includes salary for allen ray, but the amount of salary cannot be easily separated from the amounts paid for services provided to the organization. The information used to determine the fees the organization paid to cmi include a fair market value of $468,000 for this role.”

“Richard bahr was recruited and employed by community management initiative, inc. ("cmi"). Isi contracted with cmi to provide management and administrative support services pursuant to a management agreement dated december 5, 2017. Mr. Bahr was an independent contractor of isi providing chief operating officer services to isi from november 1, 2008 until his engagement was terminated by isi on august 16, 2018. We learned that richard bahr, former chief operating officer contractor at isi, was charged with theft in violation of section 943.20(1)(b) of the wisconsin statutes (brown county case no. 2020cf000700, state of wisconsin vs. Richard william bahr). It is our understanding that mr. Bahr plead guilty to this crime and was sentenced on may 20, 2021 and the amount of restitution and court costs is $397,191.00. Steps have been taken to ensure effective oversight and administration of its business, employees, and management, including: 1) the board also implemented additional measures to ensure increased visibility within its organizations to contracts and expenditures by independent contractors such as mr. Bahr and employees. 2) as of august 1, 2021, isi is no longer contracted with cmi. It was determined by the board that it would be in the best interest of the business, employees and clients to become a stand-alone wisconsin lead non-profit organization. 3) isi applied for 501(c)(3) tax-exempt status with the internal revenue service. Isi formerly operated under the umbrella of foundation for the elderly, inc., a 501(c)(3) tax-exempt organization. 4) isi elected five (5) new directors to its board that are wisconsin based with extensive non-profit board experience and business qualifications. These qualified independent directors will ensure strong leadership and continuity of the organization and its board. Dr. James price, the former chairman of the board, has resigned, along with the two other board members whose tenure dated back to 2018 and prior. 5) isi has updated its conflict-of-interest policy as well as other internal policies to reflect proper oversight and include additional checks and balances. 6) our external auditors, baker tilly, have completed their audit through december 31, 2020, and we have issued those audited statements.”

“Distributed to members of board to review. If there are questions, the controller addresses each one on an individual basis. If issues or disagreements arise, a conference call is scheduled for the board to review.”

“Annually reviewed by board of directors and management.”

“The organization has contracted with cmi to perform ceo and other various administrative positions. The board approves the fees. The top management official is not compensated by the organization.”

“All documents are available upon request.”

“Transfer in from my innovative services, inc. 132,627.”

“The board selects and engages the independent accountant. The controller assumes the daily oversight responsibility of the audit. The ceo then reviewed the audit and results with the independent accountant.”