Marc Community Resources Inc.

“and Part VII, Line 16. Mr. Jay Roundy of P2 Performance Plus, LLC was brought in as a consultant to help integrate related organizations, Marc Community Resources MCR and Partners in Recovery PIR. While delivering these integration services, Mr. Roundy was selected to fulfill the role of Interim CEO for the period October 2018 through May 2019, until a new CEO could be in place. P2 Performance Plus, LLC was paid 85,000 by MCR and 30,000 by Partners in Recovery for the 2018 calendar year for organization-wide leadership training, integration consulting, and Interim CEO services. As Mr. Roundy is one of the principal member-managers of P2 Performance Plus, LLC, all compensation paid by MCR and PIR to P2 Performance Plus, LLC was received by Mr. Roundy as flow-through compensation. Mr. Roundy received a total of 115,000 for services in this capacity during the calendar year from all related entities.”

“Copies of the 990 and all related schedules are sent to the Board of Directors for review after being reviewed and approved by the audit committee. Any questions the Board might have are directed back to the Chief Financial Officer. The 990 is then discussed at a full board meeting and approved by the Board of Directors.”

“Enforcing agency policy on conflicts of interest is the responsibility of Marc Community Resources audit committee. This committee dedicates one meeting per year to 1 Ensure all conflict of interest statements have been received, 2 Ensure conflicts are fully understood and implications discussed and disposition agreed upon, 3 Ensure that board members with conflicts, if any, follow policy with respect to voting on matters that they may have a conflict with, and 4 Recommend enhancements to existing forms, policies, and training related to conflicts of interest.”

“Each year the Board approves performance goals for the CEO based primarily on the Board approved strategic plan. At the end of the year, the board chair completes a performance evaluation. In addition to the performance evaluation, the board is provided data from the most recent GuideStar Compensation Study and/or credible surveys/studies. The board is provided a five year historical wage analysis that breaks down all the components of comprehensive compensation. Periodically, the organization contracts with an independent organization to conduct a formal compensation study to provide the board with benchmark data and provide independent assurances that compensation is reasonable based on IRS guidelines. Finally, the board is provided the breakdown of comprehensive compensation to all officers and key employees that report directly to the CEO. The board convenes to approve compensation that is appropriately comparable per IRS guidelines and consistent with the performance evaluations.”

“The Organization will provide in a timely manner, copies of all policies, procedures, annual financial audits and Forms 990 when requested in writing or in person.”

“Ms. Shar Najafi-Piper has hired as CEO of Marc Community Resources and Partners in Recovery as of May 2019. She was not employed or compensated by the organization during the calendar year 2018, and as such, no compensation is listed on the Form 990 Part 7 for Ms. Shar Najafi-Piper.”

“Program Service Expenses 6,091,478, Grants and allocations 0, Revenue 5,965,784 Day Programs Community Day Services CDS Programs served 185 members. CDS programs help keep the family unit intact by allowing parents to work while son or daughter participates in meaningful day activities that focus on living skills, socialization and community integration. 100 of individuals served were satisfied with services and 98 of service participants expressed that services met or exceeded their expectations. CDS programs are integrated into the community 68 of the time. Villages served 188 members. The Villages have been successful in assisting members in their personal recovery process through an integrated services package in which members are provided with opportunities to be actively involved in determining their learning, working and recreational activities.”

“Program Service Expenses 1,742,232, Grants and allocations 0, Revenue 1,860,578 Outpatient clinic. Marc Community Resources served 2,137 individuals in its Florian outpatient treatment Center and scored over 95 on all measures of consumer, family and funding source satisfaction surveys. In FY 2019, the 2 psychiatric Nurse Practitioners were successfully transitioned to the Gateway Campus.”

“Program Service Expenses 116,313, Grants and allocations 10,000, Revenue 149,253 Other Housing. Marc Community Resources received homes from the City of Mesa associated with the Federal Neighborhood Stabilization Project. These homes are rented out to qualifying low income tenants.”

“Program Service Expenses 0, Grants and allocations 0, Revenue 821,882 Revenue from cost reimbursements and technical agreements with subsidiaries that are under the common control of Marc Community Resources. The related reimbursed expenses are reported as Administrative expenses on the statement of functional expenses, in agreement with the audited financial statements. Additionally, Marc Community Resources utilizes its infrastructure in-place to offer minor maintenance projects to similarly situated 501 c3 organizations.”

“Column A beginning balance, for Line 12 Other Investment - other securities and Line 15 Other Assets, was adjusted to reflect a 24,823 investment reclassified from Other Assets to Other Investment - other securities.”

“Column A beginning balance, Line 17 Accounts Payable and Line 25 Other Liabilities, was adjusted to reclassify related-party liabilities from Line 17, Accounts Payable, to Line 25, Other Liabilities Related parties.”

“608,031 Unrealized loss on the swap to fix variable interest debt.”

“Prior period adjustment 528,712 Audit adjustments for fiscal year 9-30-2018 were made after the tax return was filed, correcting Investments - program related, Intangible assets - Goodwill, and Deferred Revenue.”

“Other Change in Net Assets 71,820 1,487 K-1 passthrough net loss a tax-to-book adjustment, and 73,307 difference between bad debt accrued and write offs.”

“The board of directors has a Risk and Audit Committee that is tasked to oversee the consolidated financial statement audit and select the independent auditor.”