2024-05-02T13:57:26-05:00 2023-06-30 910189318 Moss Adams LLP 3121 W March Ln Ste 200 Stockton CA 952192367 990 2022-07-01 941650529 PRIDE Industries PRID 9167882100 10030 Foothills Boulevard Roseville CA 95747 Charles Sharp CFO 9167882100 2024-04-30 1 Charles Sharp 999009999 1 Qi Wen Liang P01270238 2099556100 2024-04-30 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Jeffery Dern 10030 Foothills Boulevard Roseville CA 95747 280900778 0 X www.prideindustries.com X 1966 CA To create employment for people with disabilities. 15 15 6134 15 0 0 4688085 1072775 273231273 278105985 546047 654273 -309862 0 278155543 279833033 87455 12418643 0 0 160365161 162709559 0 0 440677 103373657 106353600 263826273 281481802 14329270 -1648769 159685406 160493603 96157824 97708087 63527582 62785516 X To create employment for people with disabilities. 1 0 242146971 12418643 278105985 See Schedule OPRIDE Industries creates employment for people with disabilities. A nonprofit social enterprise, our company provides facilities operations and maintenance services, custodial services, contract manufacturing, supply chain management, and packaging and fulfillment services to private and public organizations nationwide. We are the nation's leading employer of people with disabilities and share our expertise with other entities seeking to create an inclusive workforce. Our customized employment services include vocational training, on-the-job support, scholarships, and paid internships. In addition to helping people with disabilities, we also assist veterans, former foster youth, and trafficking survivors. PRIDE Industries maintains the maximum 3-year CARF accreditation. Our programs for people with disabilities are designed to build skills that lead to personal and professional growth as well as increased independence. Individual plans are designed around each person's personal strengths, abilities and goals. For the year ended June 30, 2023, PRIDE Industries and its affiliates employed and/or provided services to over 7,000 individuals with diverse intellectual, developmental, physical, sensory, or mental health disabilities. Our core programs are employment-focused centering around vocational training, individual preparation, and placement in supported community employment. As a nonprofit social enterprise, PRIDE Industries creates jobs in its own businesses and in partnership with others. More than 600 individuals with disabilities were employed on hundreds of commercial contracts. In addition to these, there were over 240 who worked with community employers in individual or group supported employment. More than 1,000 individuals with significant disabilities were employed on federal contract opportunities across the country providing a wide range of facilities services.The employment services arm of PRIDE, Workforce Inclusion, has expanded PRIDE's reach to serve more people with disabilities, both within PRIDE's operations and with our business partners in the community. Beginning in 2023, PRIDE offers three new programs. First, a new Community Integration Program offering employment training and access to a wide variety of employment tracks. It is a customized program with each person's unique employment training and employment goals in mind. PRIDE Industries also launched a new pre-employment services program thanks to a federal award of $500,000 for graduating high school students in rural areas. And, in collaboration with The Michael Ziegler PRIDE Industries Foundation, PRIDE Industries launched YES!, a new Youth Employment Services program. The YES! program offers training and employment services for transition-aged youth 16-25 years of age in Sacramento and Placer counties. The YES! Program services include vocational and soft-skills training, job search guidance, employment placement, transportation, employee liaison services, on-the-job coaching, mentoring, counseling, continuing education, paid internships, independent living instruction, personal safety training, relationship building, interpersonal communication, and recovery education. To date, PRIDE Industries has helped launch the careers of 32 youths with disabilities, 38 opportunity youths, six unhoused youths, and one refugee for a total of 77 youths placed into employment since the program launch. Through community employment programs, PRIDE partners with businesses to build a reliable workforce that adds value to the community and creates meaningful jobs for people with disabilities. PRIDE's services enable people with disabilities to overcome employment barriers and develop the skills they need to lead more independent lives. Donated funds provide assistive technologies, transportation, internships, training, job coaches, and other essential job accommodations. 242146971 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 207 0 1 6134 1 0 0 0 0 0 0 0 0 0 0 0 0 X 15 15 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X Stephanie Goin 9167882100 10030 Foothills Blvd Roseville CA 957477102 Jeffery Dern President/CEO 18.00 22.00 X 536341 0 71710 Peter Berghuis Former Key Employee 0.00 0.00 X 475000 0 0 Casey Blake - Chief Operations Officer (Thru 02/23) 18.00 22.00 X 386303 0 24314 Leah Burdick Chief Growth Officer 40.00 0.00 X 256222 0 24486 Jennifer Luebke Chief Workforce Inclusion Officer 40.00 0.00 X 229977 0 20236 Tina Oliveira Chief HR Officer/Corp Sec. 18.00 22.00 X 213363 0 30304 Alan McMillan Chief Information Officer 40.00 0.00 X 209480 0 21325 Michael Laperche VP Risk Management 40.00 0.00 X 204619 0 20915 Timothy Young VP of Talent Management 40.00 0.00 X 207713 0 5503 Donald Nelson VP Government Facility Services 40.00 0.00 X 201169 0 3949 Jack Jackman VP Contracts 40.00 0.00 X 197043 0 2302 Stephanie Goin - VP of Accounting & Financial Reporting 40.00 0.00 X 186603 0 12367 Charles Sharp Chief Financial Officer (Eff 09/22) 18.00 22.00 X 154373 0 28622 Everett Crane Former Chief Financial Officer 18.00 22.00 X 108344 0 3435 Bob Olsen Chairman of the Board 1.00 1.00 X X 0 0 0 Judson Riggs Vice Chairman of the Board 1.00 1.00 X X 0 0 0 Mike Snegg Board Treasurer 1.00 3.00 X X 0 0 0 Sandy Smoley Board Secretary 1.00 1.00 X X 0 0 0 Jim Barone Board Member 1.00 3.00 X 0 0 0 Ed Bonner Board Member 1.00 1.00 X 0 0 0 Dawn Clayton Board Member 1.00 1.00 X 0 0 0 Dorene Dominguez Board Member 1.00 1.00 X 0 0 0 Rob Lynch Board Member 1.00 1.00 X 0 0 0 Ronald J Mittelstaedt Board Member 1.00 1.00 X 0 0 0 Nadder Mirsepassi Board Member 1.00 1.00 X 0 0 0 Walter Payne Board Member 1.00 1.00 X 0 0 0 Marco Rodriguez Board Member 1.00 1.00 X 0 0 0 H Rao Unnava Board Member 1.00 1.00 X 0 0 0 Larry Welch Board Member 1.00 1.00 X 0 0 0 3566550 0 269468 112 1 1 0 Solution One Industries Inc 412 North Gray Street Killeen TX 76541 Subcontractor 3040364 APTIM Federal Services LLC 1725 Duke Street Alexandria VA 22314 Subcontractor 1988403 Tower Engineering Inc 2821 Lackland Road Suite 340 Fort Worth TX 76116 Subcontractor 1067808 Smith's Inc of Dothan 488 Ross Clark Circle Dothan AL 36303 Subcontractor 998570 Nadel Residential & Comm Inc 1990 S Bundy Dr Ste 400 Los Angeles CA 90025 Subcontractor 971976 70 563211 509564 1072775 Facilities Services 310000 226650875 226650875 Program Fees 561300 20275051 20275051 Management Fee 900099 19762167 19762167 Manuf & Logistics Svcs 310000 11400786 11400786 Other 561300 17106 17106 278105985 110957 110957 1028174 582887 1052701 15044 -24527 567843 543316 543316 279833033 278105985 0 654273 X 12418643 12418643 2785700 267549 2518151 124344568 108547358 15514546 282664 1247137 890544 349563 7030 24104191 22223528 1861285 19378 10227963 8785612 1419279 23072 1747214 1747214 296940 296940 249200 249200 42394569 39545304 2839815 9450 359365 127510 213077 18778 5284580 3943495 1330891 10194 6855251 1951401 4858320 45530 495919 281844 207685 6390 1000224 748743 251001 480 25082 13621 11171 290 2390343 1430283 955077 4983 4414256 3353779 1057811 2666 3050255 342223 2707366 666 Direct Materials 29201568 29201262 306 Vehicle Expense 3524858 3503356 21351 151 Workers Compensation 3219919 3172994 46387 538 Employee Recruiting & T 1893841 1103985 785704 4152 -49784 293937 -347680 3959 281481802 242146971 38894154 440677 878164 369996 41916 31356 33688968 41471010 404726 173241 2899461 3845781 44431447 27411225 21519597 17020222 9250759 8593468 333039 323521 7295701 7107282 83373075 81557726 159685406 160493603 47185823 44182462 1095527 710188 43231469 46579393 4645005 6236044 96157824 97708087 X 63527582 62785516 63527582 62785516 159685406 160493603 -1648769 261474 645229 0 X 0 1 X 1 1 1 X 197418196 201627990 222531367 220249380 222668953 1064495886 30703347 30868490 36256131 57669978 56509807 212007753 228121543 232496480 258787498 277919358 279178760 1276503639 22759 39281 12152391 207144 73689 12495264 11854029 12724659 15979266 14035091 13315658 67908703 11876788 12763940 28131657 14242235 13389347 80403967 1196099672 216210 353795 14473 34746 110957 730181 216210 353795 14473 34746 110957 730181 1875151 1875151 230212904 232850275 258801971 277954104 279289717 1279108971 0.93510 0.93560 0.00060 0.00050 X Schedule A, Part III, Line 12, Explanation of Other Income: Lease Termination - 2018 Amount: $ 1,875,151. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 249200 0 0 249200 0 Part II-B, Line 1: The organization paid two firms to lobby, educate, and inform on their behalf for legislation that directly affects the business and exempt purpose of the Company and its affiliates. 333039 15000 -21477 3041 323521 290828 31600 13875 3264 333039 206505 700 86074 2451 290828 213553 16000 -20876 2173 206504 176654 32250 5162 514 213552 0.00000 1.00000 0.00000 1 0 2306853 2306853 12179784 3177159 9002625 720998 653051 67947 27140923 21586636 5554287 2082889 1994379 88510 17020222 Restricted Cash 6848932 Deferred Compensation Investment 1053121 Deposits 497476 Related Organization Receivables 65722154 Other Assets 2281897 ROU Assets 5154146 81557726 Capital Lease Obligations 3708954 Deferred Compensation 457 Plan 1053121 Operating Lease Obligation 1473969 6236044 X Part V, Line 4: PRIDE intends to use the funds held within the endowment fund to advance its mission of creating employment opportunity for people with disabilities. Part X, Line 2: In the event the Company had a tax position that was uncertain of being sustained, the Company would apply the minimum probability threshold specified in accounting guidance on income tax accounting to determine whether a financial statement liability or benefit should be recognized. There were no uncertain tax positions at June 30, 2023 and 2022. 1 Pride Industries One Inc 10030 Foothills Blvd Roseville CA 95747 911827109 501(c)(3) 12337990 0 General Support Greater Sacramento Economic Council 400 Capitol Mall 2520 Sacramento CA 95814 465517841 501(c)(3) 50000 0 General Support 2 0 Part I, Line 2: During fiscal year 2023, PRIDE Industries made a grant to PRIDE Industries One for general support, which was approved by the Finance Committee. Since PRIDE and PRIDE One are related organizations that share officers and employees, it is not necessary for PRIDE Industries to monitor the use of the grant. X X X X 1 1 0 0 0 1 0 1 0 Jeffery Dern President/CEO 501631 0 0 0 34710 0 39750 0 31960 0 608051 0 0 0 Peter Berghuis Former Key Employee 25334 0 0 0 449666 0 0 0 0 0 475000 0 0 0 Casey Blake - Chief Operations Officer (Thru 02/23) 342925 0 0 0 43378 0 18500 0 5814 0 410617 0 18522 0 Leah Burdick Chief Growth Officer 254897 0 0 0 1325 0 0 0 24486 0 280708 0 0 0 Jennifer Luebke Chief Workforce Inclusion Officer 199330 0 0 0 30647 0 0 0 20236 0 250213 0 0 0 Tina Oliveira Chief HR Officer/Corp Sec. 210274 0 0 0 3089 0 0 0 30304 0 243667 0 0 0 Alan McMillan Chief Information Officer 202181 0 0 0 7299 0 0 0 21325 0 230805 0 0 0 Michael Laperche VP Risk Management 193642 0 9078 0 1899 0 0 0 20915 0 225534 0 0 0 Timothy Young VP of Talent Management 206713 0 0 0 1000 0 2500 0 3003 0 213216 0 0 0 Donald Nelson VP Government Facility Services 178847 0 0 0 22322 0 0 0 3949 0 205118 0 0 0 Jack Jackman VP Contracts 195278 0 0 0 1765 0 0 0 2302 0 199345 0 0 0 Stephanie Goin - VP of Accounting & Financial Reporting 179718 0 0 0 6885 0 0 0 12367 0 198970 0 0 0 Charles Sharp Chief Financial Officer (Eff 09/22) 93906 0 60000 0 467 0 1904 0 26718 0 182995 0 0 0 Everett Crane Former Chief Financial Officer 103181 0 0 0 5163 0 0 0 3435 0 111779 0 0 0 Part I, Line 3 The Board's Compensation Committee retains the ultimate authority over all elements of compensation to ensure that the organizational purposes are appropriately serviced. The Board's Compensation Committee uses credible data sources, third-party compensation consultant review and an objective "arms-length" decision-making process, ensuring the integrity of the executive programs and consistency with the organization's overall mission. Part I, Lines 4a-b Peter Berghuis received a one-time compensation payment (the contents of which are subject to a confidentiality clause) of $449,666 which is included in Schedule J, Part II, Column B(iii). Key executives participate in a 457(f) retirement plan. Plan eligibility is determined upon approval by the Board of Directors of PRIDE Industries. During the calendar year ended December 31, 2022, contributions and distributions for the following key executives are as follows: Jeffery Dern President/CEO: Contributions: None Distributions: None Casey Blake - Chief Operations Officer: Contributions: $18,500 Distributions: $18,522 The President/CEO participates in a nonqualified deferred compensation trust as provided for in his employment agreement approved by the Board of Directors. Contributions to the trust are made annually, each December, in an amount equal to 7.5% of the President/CEO's base salary. The trust is distributable upon the earlier of the President/CEO reaching age 65 or has a qualifying termination event. Certain forfeiture provisions exist in the agreement. During the Calendar year ended December 31, 2022, a contribution of $39,750 was made. In 2021, the President/CEO began participating in a long-term incentive compensation benefit. Amounts are approved by the Board's Compensation Committee annually ranging from 0% to 7.5% of the President/CEO's base salary based on both his and the Company's performance. The approved amounts are accrued annually and paid out in a lump sum once every five years, subject to continued employment. During calendar year ended December 31, 2022, no accural was approved by the Compensation Committee. Part I, Line 6 Accrued calendar year 2021 bonus in the amount of $9,078 was paid to Michael Laperche, VP Risk Management, during calendar year 2022. However, the bonus was reversed and recorded as receivable due to the final results of PRIDE's captive. The bonus accrual is based on the net surplus of PRIDE's captive insurance subsidiary. At December 31, 2022, a $13,258 bonus was accrued and paid subsequently. Part I, Line 7 In 2022, a one-time compensation payment of $60,000 was approved and paid to the current CFO, Charles Sharp upon his acceptance of the CFO position. Form 990, Part III, line 2 See the disclosure for Part III, line 4a Form 990, Part VI, Section B, line 11b The accounting department consults with various departments in the compiling of the Form 990. In addition, a nationally recognized CPA firm consults on the preparation and review of the form. The CFO reviews and approves the data and completed form before providing it to the President/CEO and Board members for their review prior to filing. Form 990, Part VI, Section B, line 12c Board members and officers are required to complete an annual disclosure form identifying business interests, employment relationships and property interests, and those of related parties. The President/CEO and Board Chair review the disclosures for potential conflicts of interest and consult legal counsel as necessary. The Board Chair may ask involved individuals to recuse themselves during discussions on any matter related to a potential conflict. No director shall vote on any issue involving a financial or personal conflict of interest, or participate in decisions in matters directly involving related parties. All key employees, including officers, are required to participate in annual training on the organization's Code of Business Ethics, which includes a discussion of conflicts of interest. Training compliance is monitored by electronic acceptance and acknowledgement of the policies within the Company's electronic training platform. Form 990, Part VI, Section B, line 15 Salary surveys of benchmark jobs are used to determine wage ranges of key employees and executives. Market-available wage data, job performance, and current market conditions are used to determine appropriate compensation levels. The company contracts with a leading HR consulting firm to analyze the compensation of certain executives. The Board Compensation Committee of PRIDE Industries reviews surveys from similarly sized nonprofit and for-profit organizations, taking into account relative factors including revenues, employee counts and competitive market position. The Board's Compensation Committee reviews and approves compensation for the President/CEO and CFO. The CFO is excluded from involvement in the process. Form 990, Part VI, Section C, line 19 Audited financial statements, governing documents and conflict of interest policies are made available to the general public upon request. Form 990, Part IX, line 11g Source America Program Fees: Program service expenses 6,967,308. Management and general expenses 0. Fundraising expenses 0. Total expenses 6,967,308. Contract Disposal Services: Program service expenses 403,081. Management and general expenses 0. Fundraising expenses 35. Total expenses 403,116. Contract Labor: Program service expenses 752,032. Management and general expenses 0. Fundraising expenses 0. Total expenses 752,032. Subcontractor Expense: Program service expenses 30,862,676. Management and general expenses 406,781. Fundraising expenses 3,703. Total expenses 31,273,160. Consulting & Professional Fees: Program service expenses 560,207. Management and general expenses 2,433,034. Fundraising expenses 5,712. Total expenses 2,998,953. Form 990, Part XI, line 8: $645,229 Employee Retention Credit related to calendar year 2021 payroll expenses Social Enterprise Assurance Co LLC 1444 I Street NW Suite 950 Washington DC 20005 812863106 Insurance DC 5478000 15740644 PRIDE Industries PRIDE Industries One Inc 10030 Foothills Blvd Roseville CA 95747 911827109 To create employment for people with disabilities CA 501(c)(3) Line 12a, I PRIDE Industries 1 PRIDE Government 10030 Foothills Blvd Roseville CA 95747 942446765 Helping people with disabilities prepare for employment CA 501(c)(3) Line 10 PRIDE Industries 1 PRIDE Federal 10030 Foothills Boulevard Roseville CA 95747 260226018 Building & landscape maintenance CA Pride Industries C 111593 1.00000 1 0 1 0 0 0 0 0 0 0 1 0 1 0 1 1 1 1 1 1 PRIDE Industries One Inc B 12337990 Book Value PRIDE Industries One Inc L 19761876 Book Value