2026-03-30T13:34:40+00:00 2025-06-30 350921680 CROWE LLP 400 Capitol Mall Suite 1400 Sacramento CA 958144498 990 2024-07-01 131624000 Federation Employment and Guidance Service Inc FEDE 2123668400 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 Judith Pincus Plan Administrator 2026-03-30 true true Conrad Davis P00096450 9164411000 2026-03-30 2024 2025-03-06 01:10:19Z Judith Pincus 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 109242 false X N/A X 1934 NY FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") IS A NOT-FOR-PROFIT HEALTH AND HUMAN SERVICES ORGANIZATION WHICH UNTIL MAY 2015 PROVIDED A BROAD RANGE OF (CONTINUED IN SCHEDULE O) X 0 0 3 0 0 0 0 168 145 17284 109097 17452 109242 0 0 526130 432395 0 0 470029 412119 996159 844514 -978707 -735272 990180 268590 25183880 25197562 -24193700 -24928972 FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") IS A NOT-FOR-PROFIT HEALTH AND HUMAN SERVICES ORGANIZATION WHICH UNTIL MAY 2015 PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY (CONTINUED IN SCHEDULE O) false false 578965 0 0 ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. SHORTLY PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED, PURSUANT TO COURT ORDER, ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS WHO ASSUMED THE OPERATIONS FOR THE DEBTOR'S FORMER PROGRAMS. IN ORDER TO PREVENT THE DISLOCATION OF ITS FORMER CLIENTS, FEGS SUBSEQUENTLY LEASED ITS FACILITIES, PURSUANT TO COURT ORDER, TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES COULD BE COMPLETED AND APPROVED BY THE COURT. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED THE DEBTOR'S PLAN. THE DEBTOR'S PLAN BECAME EFFECTIVE ON MARCH 1, 2018. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED WITH THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF PRIOR SALES OF THE DEBTOR'S ASSETS, TO BE DISTRIBUTED TO THE DEBTOR'S CREDITORS AS PROVIDED UNDER THE BANKRUPTCY CODE AND AS FURTHER DESCRIBED IN THE DEBTOR'S PLAN. THE CONFIRMATION ORDER APPROVED THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS WHICH IS COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS, AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF THE DEBTOR'S FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER THE DEBTOR'S CHARITABLE PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO THE DEBTOR'S FORMER RESIDENTIAL CLIENTS. THE CONFIRMATION ORDER ALSO APPROVED THE PRIVATE SALE OF THE DEBTOR'S MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF THE DEBTOR AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. FEGS REALIZED $109,097 IN PROGRAM REVENUE THAT HAS BEEN RECLASSED TO PART VIII, LINE 11A DURING THE CURRENT TAX YEAR. THE EXPENSES REFLECTED IN PART III CONSIST OF EXPENSES INCURRED IN THE WIND-UP OF THE DEBTOR'S OPERATIONS, THE IMPLEMENTATION OF THE DEBTOR'S PLAN OF LIQUIDATION PURSUANT TO THE CONFIRMATION ORDER, AND ADMINISTRATION OF THE HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS UNTIL THE TRANSFER OF THE DEBTOR'S INTERESTS IN THE REMAINING THREE HOUSING CORPORATIONS CAN OCCUR. 578965 true false false false false false false false false false false false false false true false false false false false false false false false false false false false false true false false false false false false false false false false false false false true false true true true false false true 3 0 true 3 true false false false false false false false false false false false false X 0 0 false false false false false false false false false false false false true true true true true true false false false false NY X Judith Pincus CO FEGS 2123668400 2 PARK AVENUE 20TH FLOOR NEW YORK NY 10016 JUDITH PINCUS CHIEF WIND-DOWN OFFICER, PLAN ADMINISTRATOR 16.5 4.5 X 138874 0 36537 138874 0 36537 1 false true false GARFUNKEL WILD PC 900 Stewart Avenue 4th Floor Garden City NY 11530 BANKRUPTCY PROF. FEES 188017 1 0 0 0 0 0 0 145 145 0 0 0 0 Miscellaneous Income 900099 109097 109097 0 0 0 0 109097 109242 0 0 109242 260991 260991 20516 20516 129275 129275 21613 21613 44402 44402 190672 190672 30475 0 30475 0 898 898 7141 7141 54771 54771 10865 10865 24233 24233 Custodian Fees 44778 44778 U.S Trustee Fees 3884 3884 0 0 0 0 844514 578965 265549 0 202023 233741 783910 29010 0 0 0 0 186 2226 0 0 0 0 0 0 4061 3613 990180 268590 20476210 20516406 0 0 3652568 3652568 1055102 1028588 25183880 25197562 X -24193700 -24928972 -24193700 -24928972 990180 268590 -735272 0 X false false false X X 1 US Bankruptcy Court for the Eastern District of New York 000000000 6 false 0 0 1 0 0 false false false false false false false false false false false false false false false true false Schedule A, Part I, Line 12 JUSTIFICATION FOR SUPPORTING ORGANIZATION ESTABLISHED IN 1934, FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") WAS A NOT-FOR-PROFIT HEALTH AND HUMAN SERVICES ORGANIZATION WHICH UNTIL MAY 2015 PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY IN THE AREAS OF BEHAVIORAL, HEALTH, INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT / WORKFORCE, EDUCATION, YOUTH AND FAMILY SERVICES. FEGS ALSO ADMINISTERED COMPLEX RESIDENTIAL AND SUPPORT PROGRAMS FOR THE INTELLECTUALLY AND DEVELOPMENTALLY DISABLED AND A COMPREHENSIVE PORTFOLIO OF BEHAVIOR TREATMENT AND RESIDENTIAL PROGRAMS FOR THE MENTALLY ILL IN THE METROPOLITAN NEW YORK AND LONG ISLAND AREA. AT ITS PEAK, THE DEBTOR OPERATED A NETWORK OF OVER 350 PROGRAMS AND EMPLOYED APPROXIMATELY 2200 HIGHLY SKILLED PROFESSIONALS. THE DEBTOR'S OPERATIONS WERE OVERSEEN AND SUBSTANTIALLY FUNDED BY NEW YORK STATE THROUGH THE NEW YORK STATE OFFICE OF MENTAL HEALTH ("OMH") AND THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES ("OPWDD") AND NEW YORK CITY THROUGH THE NEW YORK CITY HUMAN RESOURCES ADMINISTRATION ("HRA"), DEPARTMENT OF EDUCATION ("DOE") AND THE DEPARTMENT OF YOUTH AND COMMUNITY DEVELOPMENT ("DYCD"). THE DEBTOR ALSO SPONSORED A DIVERSE PORTFOLIO OF HOUSING AND RESIDENTIAL ENVIRONMENTS WHICH SUPPORTED THE HOUSING NEEDS OF THE HOMELESS, MENTALLY ILL, THOSE WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, LOW INCOME INDIVIDUALS, SENIORS AND OTHERS WITH DISABILITIES. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS; AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND THE CONFIRMATION ORDER. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOCABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO AMOUNT, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED GENERAL UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. THE PLAN ALSO PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FOLLOWING THE EFFECTIVE DATE, AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.1 OF THE PLAN AND NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF ITS CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. (CONTINUED IN NEXT FOOTNOTE) Schedule A, Part I, Line 12 JUSTIFICATION FOR SUPPORTING ORGANIZATION PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. SINCE THE PETITION DATE, FEGS HAS FILED WITH THE COURT ITS MONTHLY OPERATING REPORT ("MOR") WHICH IS AVAILABLE FOR REVIEW. SINCE THE EFFECTIVE DATE, FEGS HAS FILED WITH THE COURT ITS OPERATING REPORT ON A QUARTERLY BASIS ("QOR") AND WHICH IS ALSO AVAILABLE FOR REVIEW. AS INDICATED ABOVE, FEGS HAS TRANSFERRED ITS PROGRAMS AND ASSETS UNDER THE SUPERVISION OF THE BANKRUPTCY COURT. AT THIS POINT IN THE WIND-DOWN PROCESS, FEGS IS NO LONGER RECEIVING SUFFICIENT CONTRIBUTIONS, PROGRAM SERVICE REVENUES, GOVERNMENT GRANTS, OR OTHER TRADITIONAL SUPPORT (33% SUPPORT TESTTO TECHNICALLY QUALIFY AS A "PUBLICLY SUPPORTED ENTITY" UNDER SECTION 509(A)(1) OF THE INTERNAL REVENUE CODE ("IRC"), ALTHOUGH IT IS STILL IN THE PROCESS OF WINDING DOWN ITS OPERATIONS AS A NON-PROFIT ORGANIZATION AS BEFORE. GIVEN THE LIMITED AND FIXED OPTIONS OF THE REASONS FOR PUBLIC CHARITY STATUS IN SCHEDULE A, FEGS' PUBLIC CHARITY STATUS IS NOW BEING CONSIDERED THAT OF A SUPPORTING ORGANIZATION UNDER IRC SECTION 509(A)(3) UNDER THE DIRECT CONTROL AND SUPERVISION OF THE BANKRUPTCY COURT. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, MOR, QOR, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Schedule A, Part IV, Section A, Line 1 SUPPORTED ORGS LISTED BY NAME PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. SINCE THE PETITION DATE, FEGS HAS FILED WITH THE COURT ITS MONTHLY OPERATING REPORT ("MOR") WHICH IS AVAILABLE FOR REVIEW. SINCE THE EFFECTIVE DATE, FEGS HAS FILED WITH THE COURT ITS OPERATING REPORT ON A QUARTERLY BASIS ("QOR") AND WHICH IS ALSO AVAILABLE FOR REVIEW. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, MOR, QOR, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Schedule A, Part IV, Section A, Line 5a ADDED, SUBSTITUTED, OR REMOVED SUP. ORG. BEGINNING IN TAX YEAR 2020 AND INCLUDING THE CURRENT YEAR (FOR THE YEAR ENDING JUNE 30, 2025), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") LISTED THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK AS ITS SUPPORTED ORGANIZATION. THE REASONS AND AUTHORITY FOR THIS ACTION ARE PROVIDED IN THE NARRATIVE FOR SCHEDULE A, PART I, LINE 12. Schedule A, Part IV, Section A, Line 1 Supported Orgs Listed By Name ESTABLISHED IN 1934, FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") WAS A NOT-FOR-PROFIT HEALTH AND HUMAN SERVICES ORGANIZATION WHICH UNTIL MAY 2015 PROVIDED A BROAD RANGE OF HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY IN THE AREAS OF BEHAVIORAL, HEALTH, INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT / WORKFORCE, EDUCATION, YOUTH AND FAMILY SERVICES. FEGS ALSO ADMINISTERED COMPLEX RESIDENTIAL AND SUPPORT PROGRAMS FOR THE INTELLECTUALLY AND DEVELOPMENTALLY DISABLED AND A COMPREHENSIVE PORTFOLIO OF BEHAVIOR TREATMENT AND RESIDENTIAL PROGRAMS FOR THE MENTALLY ILL IN THE METROPOLITAN NEW YORK AND LONG ISLAND AREA. AT ITS PEAK, THE DEBTOR OPERATED A NETWORK OF OVER 350 PROGRAMS AND EMPLOYED APPROXIMATELY 2200 HIGHLY SKILLED PROFESSIONALS. THE DEBTOR'S OPERATIONS WERE OVERSEEN AND SUBSTANTIALLY FUNDED BY NEW YORK STATE THROUGH THE NEW YORK STATE OFFICE OF MENTAL HEALTH ("OMH") AND THE OFFICE FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES ("OPWDD") AND NEW YORK CITY THROUGH THE NEW YORK CITY HUMAN RESOURCES ADMINISTRATION ("HRA"), DEPARTMENT OF EDUCATION ("DOE") AND THE DEPARTMENT OF YOUTH AND COMMUNITY DEVELOPMENT ("DYCD"). THE DEBTOR ALSO SPONSORED A DIVERSE PORTFOLIO OF HOUSING AND RESIDENTIAL ENVIRONMENTS WHICH SUPPORTED THE HOUSING NEEDS OF THE HOMELESS, MENTALLY ILL, THOSE WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, LOW INCOME INDIVIDUALS, SENIORS AND OTHERS WITH DISABILITIES. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS; AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND THE CONFIRMATION ORDER. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. ON MAY 5, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO AMOUNT, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED GENERAL UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. THE PLAN ALSO PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FOLLOWING THE EFFECTIVE DATE, AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.1 OF THE PLAN AND NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF ITS CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. (CONTINUED IN NEXT FOOTNOTE) Federal Income Taxes ACCRUED SALARIES AND VACATION PAYABLE 1028588 1028588 Schedule D, Part X OTHER LIABILITIES LIABILITY BALANCE SHEET ACCOUNT BALANCES ARE REFLECTED AT AMOUNTS STATED BY FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") AT HISTORICAL COST WHICH MAY HAVE BEEN SUBSEQUENTLY ADJUSTED THROUGH THE BANKRUPTCY PROCESS. IN ADDITION, THE DEBTOR HAS INCURRED AND WILL CONTINUE TO INCUR ADDITIONAL LIABILITIES AS A RESULT OF THE FILING OF THE BANKRUPTCY PETITION AND IN THE WIND-DOWN OF ITS BUSINESS. IN ADDITION, CERTAIN LIABILITIES REFLECTED IN FEGS' BALANCE SHEET MAY BE SUBJECT TO FURTHER ADJUSTMENT THROUGH THE BANKRUPTCY PROCESS. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE DISCLOSURE STATEMENT CONTAINS AN ANALYSIS OF THE CLAIMS ASSERTED AGAINST THE DEBTOR AND IS A MORE ACCURATE ESTIMATE OF THE DEBTOR'S LIABILITIES THAN IS PRESENTED IN THE DEBTOR'S FINANCIAL STATEMENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE ACQUIRING SERVICE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE ON MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGAITON CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71071 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER, THE TRUST AGREEMENT, AND OTHER PLEADINGS AND DOCUMENTS FILED WITH THE COURT AND PERTAINING TO THE DEBTOR'S CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. false false false false false false false false false JUDITH PINCUS CHIEF WIND-DOWN OFFICER, PLAN ADMINISTRATOR 137687 0 0 0 1187 0 4356 0 32181 0 175411 0 0 0 Schedule J, Part II, Column (C) Retirement and Other Deferred Compensation Does not reflect cash payment but annual increase in the actuarial value of participant's pension plan. Schedule J, Part II, Column (D) Nontaxable benefits Amounts represent Taxpayer's premium contributions to employee group medical and dental plan. SEE STATEMENT ATTACHED false false false false Schedule N, Part II SALE, EXCHANGE, DISPOSAL OF, OR TRANSFER MORE THAN 25% OF NET ASSETS DURING THE CURRENT TAX YEAR, THE DEBTOR DISPOSED OF OR TRANSFERRED MORE THAN 25% OF ITS NET ASSETS IN FURTHERENCE OF ITS LIQUIDATION PLAN AS APPROVED BY THE BANKRUPTCY COURT. SPECIFICALLY, THE DEBTOR DISPOSED OF OR TRANSFERRED MORE THAN 25% OF ITS NET ASSETS IN THE CONTINUED WIND-UP OF ITS OPERATION AND IN THE DISPOSITION OF ITS REMAINING NET ASSETS AND INTERESTS INCLUDING ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS. EXPENSES INCURRED BY THE DEBTOR IN THE WIND-UP OF ITS OPERATIONS, INCLUDING THOSE INCURRED BY THE OPERATIONS OF THE THREE REMAINING HOUSING CORPORATIONS, RESULTED IN THE DEBTOR INCURRING A DECREASE OF ITS NET ASSETS OF MORE THAN 25% DURING ITS CURRENT TAX YEAR. ADDITIONAL BACKGROUND IS AS FOLLOWS: AS BACKGROUND, ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR, THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, THE DEBTOR CONTINUED TO OPERATE ITS BUSINESS AND MANAGE ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. SHORTLY PRIOR TO THE PETITION DATE, THE DEBTOR STARTED TRANSFERRING ITS PROGRAMS TO OTHER SERVICE PROVIDERS. BY MAY 31, 2015, THE DEBTOR HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT ORGANIZATIONS PURSUANT TO COURT ORDER. THE DEBTOR SUBSEQUENTLY LEASED ITS FACILITIES TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OR ASSIGNMENT OF ITS FACILITIES CAN BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE DISCLOSURE STATEMENT PROVIDES A DETAILED DESCRIPTION OF THE AMOUNTS EXPECTED TO BE REALIZED BY FEGS FROM THE SALE OF ITS REMAINING ASSETS, INCLUDING ITS REAL ESTATE. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGAITON CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part I, Line 1 organization's mission or most significant activities HEALTH AND SOCIAL SERVICES TO MORE THAN 120,000 INDIVIDUALS ANNUALLY IN THE AREAS OF BEHAVIORAL, HEALTH, INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT / WORKFORCE, EDUCATION, YOUTH AND FAMILY SERVICES. FEGS ALSO ADMINISTERED COMPLEX RESIDENTIAL AND SUPPORT PROGRAMS FOR THE INTELLECTUALLY AND DEVELOPMENTALLY DISABLED AND A COMPREHENSIVE PORTFOLIO OF BEHAVIOR TREATMENT AND RESIDENTIAL PROGRAMS FOR THE MENTALLY ILL. AT ITS PEAK, FEGS OPERATED A NETWORK OF OVER 350 PROGRAMS LOCATED THROUGHOUT THE METROPOLITAN NEW YORK AND LONG ISLAND AREAS. FEGS' MISSION IS TO HELP EACH PERSON ACHIEVE GREATER PERSONAL AND ECONOMIC INDEPENDENCE AT WORK, HOME, SCHOOL, AND IN THE COMMUNITY. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS; AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND THE CONFIRMATION ORDER. FOLLOWING THE EFFECTIVE DATE AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES SET FORTH IN §12.1 OF THE PLAN AND NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. ON MAY 5, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO AMOUNTS, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. THE PLAN ALSO PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. SINCE CONFIRMATION OF FEGS' PLAN OF REORGANIZATION, FEGS' ACTIVITIES CONSISTS OF WINDING-UP ITS OPERATIONS. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. SINCE THE PETITION DATE, FEGS HAS FILED WITH THE COURT ITS MONTHLY OPERATING REPORT ("MOR") WHICH IS AVAILABLE FOR REVIEW. SINCE THE EFFECTIVE DATE, FEGS HAS FILED ITS OPERATING REPORT ON A QUARTERLY BASIS ("QOR") AND WHICH IS ALSO AVAILABLE FOR REVIEW. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, MOR, QOR, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part I, Line 5 Bankruptcy Distribution to Former Employees FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR, THE "TAXPAYER") AS DESCRIBED IN GREATER DETAIL BELOW, IS THE SUBJECT OF A CHAPTER 11 BANKRUPTCY CASE THAT WAS CONFIRMED PURSUANT TO AN ORDER ENTERED BY THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK. DURING THE CALENDAR YEAR ENDING DECEMBER 31, 2024, FEGS EMPLOYED 3 INDIVIDUALS WHO EACH RECEIVED A 2024 FORM W-2, WAGE AND TAX STATEMENTS AND WHOSE WAGES WERE REPORTED ON THE 2024 FORM W-3, TRANSMITTAL OF WAGE AND TAX STATEMENTS. FEGS TERMINATED TWO OF THESE INDIVIDUALS FROM EMPLOYMENT WITH FEGS ON MAY 17, 2025. Form 990, Part III, Line 1 Organization's mission IN THE AREAS OF BEHAVIORAL HEALTH, INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, HOUSING, HOME CARE, EMPLOYMENT/WORKFORCE, EDUCATION, YOUTH AND FAMILY SERVICES. FEGS ALSO ADMINISTERED COMPLEX RESIDENTIAL AND SUPPORT PROGRAMS FOR THE INTELLECTUALLY AND DEVELOPMENTALLY DISABLED AND A COMPREHENSIVE PORTFOLIO OF BEHAVIORAL TREATMENT AND RESIDENTIAL PROGRAMS FOR THE MENTALLY ILL. AT ITS PEAK, FEGS OPERATED A NETWORK OF OVER 350 PROGRAMS LOCATED THROUGHOUT THE METROPOLITAN NEW YORK AND LONG ISLAND AREAS. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. PURSUANT TO THE CONFIRMATION ORDER, THE COURT AUTHORIZED FEGS TO CONSUMMATE THE PRIVATE SALES OF ITS REMAINING ASSETS TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS WHO TOOK OVER THE OPERATION OF THE DEBTOR'S PROGRAMS. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE BENEFIT OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITORS. PURSUANT TO THE PLAN, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR AND ROBERT N. MICHAELSON WAS APPOINTED THE TRUSTEE FOR THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. ON MAY 5, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO THE AMOUNT, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 15a PROCESS TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL HISTORICALLY, THE COMPENSATION OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC.'S ("FEGS," THE "DEBTOR, THE "TAXPAYER") CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, EXECUTIVE MANAGEMENT, AND ALL KEY EMPLOYEES WAS REVIEWED BY THE EXECUTIVE COMPENSATION COMMITTEE OF FEGS' BOARD AND THEN REVIEWED BY THE EXECUTIVE COMMITTEE WHO WAS RESPONSIBLE FOR FINAL APPROVAL OF THE COMPENSATION. THE EXECUTIVE COMMITTEE'S DECISION OF THE FINAL APPROVED COMPENSATION WAS REPORTED TO THE FULL BOARD OF DIRECTORS. IN DETERMINING THE REASONABLENESS OF COMPENSATION FOR THESE EMPLOYEES, THE EXECUTIVE COMPENSATION COMMITTEE AND THE EXECUTIVE COMMITTEE RELIED ON THE INDEPENDENT REVIEW OF COMPENSATION OF COMPARABLE ORGANIZATIONS BY AN INDEPENDENT AND RECOGNIZED COMPENSATION FIRM IN ADDITION TO OTHER RELEVANT ORGANIZATIONAL MATERIALS AND COMPENSATION DATA. THIS PROCESS WAS LAST UNDERTAKEN IN 2014 WHEN FEGS ENGAGED AN INDEPENDENT COMPENSATION FIRM TO PERFORM A COMPENSATION STUDY AND PRIOR TO THE PETITION DATE. ON MARCH 18, 2015 (THE "PETITION DATE"), FEGS FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"), CHAPTER 11 CASE NO. 15-71074 (REG). SHORTLY PRIOR TO AND AFTER THE FILING OF ITS VOLUNTARY PETITION FOR CHAPTER 11 RELIEF, FEGS' CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, ITS EXECUTIVE MANAGEMENT AND MANY OF ITS KEY EMPLOYEES RESIGNED OR WERE TERMINATED. PURSUANT TO THE TERMS OF AN EMPLOYMENT AGREEMENT DATED JULY 15, 2015 (THE "AGREEMENT") ONE OF FEGS' FORMER KEY EMPLOYEES WAS PROMOTED TO THE NEWLY CREATED POSITION OF CHIEF WIND-DOWN OFFICER. THE AGREEMENT, INCLUDING THE CHIEF WIND-DOWN OFFICER'S SALARY AND BONUS, WAS NEGOTIATED BETWEEN THAT INDIVIDUAL AND THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS, WAS APPROVED BY FEGS' BOARD, AND WAS REPORTED TO THE BANKRUPTCY COURT. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT APPROVED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN"). PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED AS THE PLAN ADMINISTRATOR. THE PLAN ADMINISTRATOR'S SALARY AND BONUS WAS NEGOTIATED BETWEEN THAT INDIVIDUAL AND THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS AND APPROVED BY THE COURT. Form 990, Part VI, Line 15b PROCESS TO ESTABLISH COMPENSATION OF OTHER EMPLOYEES AS ITS REMAINING EMPLOYEES ASSUME GREATER RESPONSIBILITIES AND INCREASED WORKLOADS THE DEBTOR HAS INCREASED EMPLOYEES' BASE SALARY COMPENSATION. THAT SAID, NO EMPLOYEES RECEIVED INCREASES TO THEIR BASE SALARIES DURING THE CURRENT TAX YEAR ENDING JUNE, 30 2025. Form 990, Part VI, Line 1a (Also Part I, Line 3) Governing Body and Management ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN") WITH THE COURT. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018, THE "EFFECTIVE DATE" [DOCKET NO. 1056]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). THE PLAN PROVIDES IN PERTINENT PART THAT ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FOLLOWING THE EFFECTIVE DATE AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES SET FORTH IN §12.1 OF THE PLAN AND NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSES AS SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 8a Documentation of meetings held by governing body ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN") WITH THE COURT. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018, the "effective date" [DOCKET NO. 1056]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATIONS OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. THROUGH THE EFFECTIVE DATE (MARCH 1, 2018), THE BOARD OF DIRECTORS MEETINGS AND ALL ACTIONS TAKEN BY THE BOARD AND COMMITTEES WERE CONTEMPORANEOUSLY DOCUMENTED. Following the effective date and as provided for under the plan, the court retains exclusive jurisdiction of the debtor's case for the purposes as set forth in §12.1 of the plan and non-exclusive jurisdiction of the debtor's case for the purposes as set forth in §12.2 of the plan. See confirmation order paragraph 34. accordingly, FEGS has complied with the requirements that it contemporaneously document the actions undertaken during the current year. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 8b Documentation of meetings held by committees of governing body ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN") WITH THE COURT. THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS (THE "HOUSING CORPORATION INTERESTS") IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. THE PLAN BECAME EFFECTIVE MARCH 1, 2018, the "effective date" [DOCKET NO. 1056]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATIONS OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. THROUGH THE EFFECTIVE DATE (MARCH 1, 2018), THE BOARD OF DIRECTORS MEETINGS AND ALL ACTIONS TAKEN BY THE BOARD AND COMMITTEES WERE CONTEMPORANEOUSLY DOCUMENTED. Following the effective date and as provided for under the plan, the court retains exclusive jurisdiction of the debtor's case for the purposes as set forth in §12.1 of the plan and non-exclusive jurisdiction of the debtor's case for the purposes as set forth in §12.2 of the plan. See confirmation order paragraph 34. accordingly, FEGS has complied with the requirements that it contemporaneously document the actions undertaken during the current year. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 11b Review of form 990 by governing body ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS (THE "HOUSING CORPORATION INTERESTS") WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. FEGS HAS PROVIDED A COMPLETE COPY OF THIS FORM 990 TO THE PLAN ADMINISTRATOR. Form 990, Part VI, Line 12c Conflict of interest policy ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS THE "DEBTOR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"), CHAPTER 11 CASE NO. 15-71074 (REG). SUBSEQUENTLY, PURSUANT TO AN ORDER OF THE COURT ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN"). THE CONFIRMATION ORDER PROVIDES IN PERTINENT PART THAT "ON THE EFFECTIVE DATE, THE MEMBERS OF THE DEBTOR'S BOARD OF TRUSTEES SHALL BE DEEMED TO HAVE RESIGNED THEREFROM, AND SHALL BE RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF THE DEBTOR BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR IN ACCORDANCE WITH THE PLAN." SEE CONFIRMATION ORDER, PARA. 12, P. 13 [DOCKET NO. 1050]. PURSUANT TO THE CONFIRMATION ORDER, JUDITH PINCUS WAS APPOINTED AS THE PLAN ADMINISTRATOR. SEE CONFIRMATION ORDER PARA. 4, P. 10 [DOCKET NO. 1050]. THE "EFFECTIVE DATE" OCCURRED ON MARCH 1, 2018 [DOCKET NO. 1056]. PRIOR TO THE PLAN'S EFFECTIVE DATE, ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES WERE REQUIRED TO REVIEW THE ORGANIZATION'S CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS AND COMPLETE AND SIGN A DISCLOSURE QUESTIONNAIRE REPRESENTING THAT THEY HAVE REVIEWED THE POLICY AND HAVE REPORTED ANY POTENTIAL CONFLICTS THAT MAY EXIST. ANY DISCLOSED CONFLICT WAS REVIEWED BY THE LEGAL COMMITTEE AND EXECUTIVE COMMITTEE OF THE BOARD AND, FOLLOWING THEIR REVIEW OF THE MATTER, THEY EITHER MADE DETERMINATIONS ON THE MATTER, OR REFERRED APPROPRIATE MATTERS TO THE FULL BOARD OF DIRECTORS. DURING THE PERIOD AFTER THE EFFECTIVE DATE, THE PLAN ADMINISTRATOR REVIEWED FEGS' CONFLICT OF INTEREST POLICY AND SIGNED A DISCLOSURE QUESTIONNAIRE STATING THAT SHE HAD REVIEWED THE POLICY AND DID NOT HAVE ANY POTENTIAL CONFLICTS OF INTEREST. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part VI, Line 19 Required documents available to the public GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. SINCE MARCH 18, 2015 (THE "PETITION DATE") AND THROUGH FEBRUARY 28, 2018, THE TAXPAYER HAS FILED WITH THE UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK ITS MONTHLY OPERATING REPORT ("MOR") WHICH IS ALSO AVAILABLE FOR REVIEW. PURSUANT TO AN ORDER ENTERED FEBRUARY 6, 2018 (THE "CONFIRMATION ORDER"), THE COURT APPROVED THE DEBTOR'S THIRD AMENDED PLAN OF LIQUIDATION (THE "PLAN") [DOCKET NO. 1050]. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. SINCE MARCH 1, 2018, THE TAXPAYER HAS FILED ITS OPERATING REPORTS WITH THE COURT ON A QUARTERLY BASIS ("QOR") AND WHICH ARE ALSO AVAILABLE FOR REVIEW. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71074 (REG). THE PLAN, CONFIRMATION ORDER AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE INCLUDING THE MONTHLY AND QUARTERLY OPERATING REPORTS FILED BY FEGS CAN BE REVIEWED AT HTTPS://ECF.NYEB.USCOURTS.GOV/. Form 990, Part X, Column (B) End of Year Balance Sheet WITH RESPECT TO FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC.'S ("FEGS," THE "DEBTOR, THE "TAXPAYER") ASSET BALANCE SHEET ACCOUNTS, CASH AND INVESTMENT ASSET ACCOUNT BALANCES ARE REFLECTED AT FAIR MARKET VALUE, ACCOUNTS RECEIVABLE IS REFLECTED AT ESTIMATED NET REALIZABLE VALUE AND THE OTHER BALANCE SHEET ASSET ACCOUNT BALANCES AT HISTORICAL COST. WITH RESPECT TO ACCOUNTS RECEIVABLE, THE DEBTOR HAS REVIEWED THIS ASSET ACCOUNT AND HAS WRITTEN-OFF RECEIVABLES THAT THE DEBTOR BELIEVES WILL NOT BE COLLECTED. WITH RESPECT TO LAND, BUILDINGS, LEASEHOLD IMPROVEMENTS AND EQUIPMENT, THE DEBTOR COMPLETED THE SALE OF THESE ASSETS DURING A PRIOR TAX YEAR (6/30/2019) AND ACCORDINGLY, THE BEGINNING AND END OF YEAR BALANCE OF THIS ASSET ACCOUNT IS $0. LIABILITY BALANCE SHEET ACCOUNT BALANCES ARE REFLECTED AT AMOUNTS STATED BY FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") AT HISTORICAL COST WHICH MAY HAVE BEEN SUBSEQUENTLY ADJUSTED THROUGH THE BANKRUPTCY PROCESS. IN ADDITION, THE DEBTOR HAS INCURRED AND WILL CONTINUE TO INCUR ADDITIONAL LIABILITIES AS A RESULT OF THE FILING OF THE BANKRUPTCY PETITION AND IN THE WIND-DOWN OF ITS BUSINESS. IN ADDITION, CERTAIN LIABILITIES REFLECTED IN FEGS' BALANCE SHEET MAY BE SUBJECT TO FURTHER ADJUSTMENT THROUGH THE BANKRUPTCY PROCESS. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, (THE "PROGRAM PROPERTIES"), TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS (THE "PROVIDERS"). THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO A FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN AND AUTHORIZED THE PLAN'S IMPLEMENTATION. SPECIFICALLY, THE COURT AUTHORIZED THE DEBTOR AND/OR THE PLAN ADMINISTRATOR, AS APPLICABLE, TO TAKE ANY AND ALL ACTIONS NECESSARY TO (1) CONSUMMATE THE PRIVATE SALE OF THE DEBTOR'S PROGRAM PROPERTIES TO THE ACQUIRING SERVICE PROVIDERS AND (2) CONSUMMATE THE PRIVATE SALE OF THE HOUSING CORPORATION INTERESTS. THE CONFIRMATION ORDER ALSO CONFIRMED THE APPOINTMENT OF JUDITH PINCUS AS THE PLAN ADMINISTRATOR AND AUTHORIZED MS. PINCUS TO IMPLEMENT THE PLAN IN A MANNER CONSISTENT WITH THE TERMS AND CONDITIONS AS SET FORTH IN THE PLAN AND CONFIRMATION ORDER. THE PLAN BECAME EFFECTIVE ON MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE PURPOSE OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITOR. PURSUANT TO THE CONFIRMATION ORDER AND CREDITOR TRUST AGREEMENT, ROBERT N. MICHAELSON WAS APPOINTED TRUSTEE OF THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGAITON CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. THE TAXPAYER'S CHAPTER 11 CASE NUMBER IS 15-71071 (REG). FEGS' DISCLOSURE STATEMENT, PLAN AND THE CONFIRMATION ORDER, THE TRUST AGREEMENT, AND OTHER PLEADINGS AND DOCUMENTS FILED WITH THE COURT AND PERTAINING TO THE DEBTOR'S CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part XI, Line 8 PRIOR PERIOD ADJUSTMENT ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR, THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. PURSUANT TO THE CONFIRMATION ORDER, THE COURT AUTHORIZED FEGS TO CONSUMMATE THE PRIVATE SALES OF ITS REMAINING ASSETS TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS WHO TOOK OVER THE OPERATION OF THE DEBTOR'S PROGRAMS. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FOLLOWING THE EFFECTIVE DATE, AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSE SET FORTH IN §12.1 OF THE PLAN AND THE NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSE SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE BENEFIT OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITORS. PURSUANT TO THE PLAN, ROBERT N. MICHAELSON WAS APPOINTED THE TRUSTEE FOR THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO THE AMOUNT, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part XI, Line 9 Changes in Fund Balances ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS," THE "DEBTOR, THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK (THE "COURT"). DURING THE PENDENCY OF ITS CHAPTER 11 CASE, FEGS OPERATED ITS BUSINESS AND MANAGED ITS AFFAIRS AS A DEBTOR-IN-POSSESSION. PRIOR TO THE PETITION DATE, FEGS ANNOUNCED THAT IT PLANNED TO TRANSFER ITS CHARITABLE PURPOSE PROGRAMS TO OTHER NOT-FOR-PROFIT SERVICE PROVIDERS. BY MAY 31, 2015, FEGS HAD SUCCESSFULLY TRANSFERRED ITS CHARITABLE PURPOSE PROGRAMS TO OTHER EXEMPT NOT-FOR-PROFIT ORGANIZATIONS. PURSUANT TO COURT ORDER, FEGS SUBSEQUENTLY LEASED ITS REAL ESTATE TO THE ACQUIRING SERVICE PROVIDERS UNTIL A SALE OF ITS REAL ESTATE COULD BE COMPLETED AND APPROVED BY THE COURT. ON OCTOBER 6, 2017, FEGS FILED WITH THE COURT ITS DISCLOSURE STATEMENT AND PLAN OF LIQUIDATION (COLLECTIVELY, THE "PLAN"). THE PLAN PROVIDES A MEANS BY WHICH THE REMAINING ASSETS OF THE DEBTOR'S REAL ESTATE PORTFOLIO AND OTHER REMAINING ASSETS WILL BE LIQUIDATED. THE PLAN FURTHER PROVIDES THAT THE PROCEEDS OF SUCH LIQUIDATION, TOGETHER WITH THE PROCEEDS OF THE PRIOR SALES OF THE DEBTOR'S ASSETS, WILL BE DISTRIBUTED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE, AND SETS FORTH THE TREATMENT OF ALL CLAIMS AGAINST THE DEBTOR. THE PLAN PROPOSES THE PRIVATE SALE OF SUBSTANTIALLY ALL OF THE REMAINING REAL ESTATE ASSETS - COMPRISED LARGELY OF GROUP HOMES, COOPERATIVE APARTMENTS AND COMMUNITY RESIDENCE FACILITIES HOUSING MANY OF ITS FORMER CLIENTS, TO THE NOT-FOR-PROFIT EXEMPT ORGANIZATIONS WHO TOOK OVER FEGS' PROGRAMS AND CONTINUE TO PROVIDE SERVICES TO FEGS' FORMER RESIDENTIAL CLIENTS. THE PLAN ALSO PROVIDES FOR THE PRIVATE SALE OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS IN FOUR HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS (THE "HOUSING CORPORATION INTERESTS"). THESE PRIVATE SALES WILL SERVE TO CONTINUE THE CHARITABLE MISSION OF FEGS AND TO ENSURE THE CONTINUED RESIDENCE AND CARE OF ITS FORMER CLIENTS. ON FEBRUARY 6, 2018, PURSUANT TO THE FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER CONFIRMING THIRD AMENDED PLAN OF LIQUIDATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE OF FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. D/B/A FEGS [DOCKET NO. 1050] (THE "CONFIRMATION ORDER"), THE COURT CONFIRMED FEGS' PLAN. PURSUANT TO THE CONFIRMATION ORDER, THE COURT AUTHORIZED FEGS TO CONSUMMATE THE PRIVATE SALES OF ITS REMAINING ASSETS TO THE EXEMPT ORGANIZATION SERVICE PROVIDERS WHO TOOK OVER THE OPERATION OF THE DEBTOR'S PROGRAMS. THE PLAN BECAME EFFECTIVE MARCH 1, 2018 [DOCKET NO. 1056]. PURSUANT TO THE PLAN, JUDITH PINCUS WAS APPOINTED PLAN ADMINISTRATOR. THE PLAN PROVIDES IN PERTINENT PART, THAT THE PLAN ADMINISTRATOR IS TO ACT FOR FEGS IN A FIDUCIARY CAPACITY AS APPLICABLE TO A BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE PLAN. SEE PLAN §5.11(B). UNDER THE PLAN, ON THE EFFECTIVE DATE, THE MEMBERS OF FEGS' BOARD OF DIRECTORS WERE DEEMED TO HAVE RESIGNED THEIR POSITIONS AS DIRECTORS AND RELIEVED OF ALL FURTHER RESPONSIBILITIES, WITH THE OPERATION OF FEGS BECOMING THE RESPONSIBILITY OF THE PLAN ADMINISTRATOR. SEE PLAN §5.10. FOLLOWING THE EFFECTIVE DATE, AND AS PROVIDED FOR UNDER THE PLAN, THE COURT RETAINS EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSE SET FORTH IN §12.1 OF THE PLAN AND THE NON-EXCLUSIVE JURISDICTION OF THE DEBTOR'S CASE FOR THE PURPOSE SET FORTH IN §12.2 OF THE PLAN. SEE CONFIRMATION ORDER, PARAGRAPH 34. PURSUANT TO THE PLAN, A CREDITOR TRUST WAS ALSO CREATED FOR THE BENEFIT OF PURSUING CERTAIN LITIGATION CLAIMS FOR THE BENEFIT OF UNSECURED CREDITORS. THE CREDITOR TRUST WAS FUNDED BY FEGS WITH CASH AND THE ASSIGNMENT OF LITIGATION CLAIMS CONSISTING OF PREFERENCE CLAIMS, CLAIMS HELD BY FEGS AGAINST TWO OF ITS FORMER OFFICERS AND CLAIMS HELD BY FEGS AGAINST ITS FORMER AUDITORS. PURSUANT TO THE PLAN, ROBERT N. MICHAELSON WAS APPOINTED THE TRUSTEE FOR THE CREDITOR TRUST. IN ADDITION TO AND SEPARATE FROM THE CREDITOR TRUST, THE PLAN ALSO REQUIRED THAT THE PLAN ADMINISTRATOR ESTABLISH A DISPUTED CLAIMS RESERVE, THE FEGS DISPUTED CLAIMS RESERVE DOF, TO PROVIDE A VEHICLE FOR THE PAYMENT OF DISPUTED GENERAL UNSECURED CLAIMS IF AND WHEN THEY BECAME ALLOWED CLAIMS. UNDER THE PLAN, THE FEGS DISPUTED CLAIMS RESERVE DOF RECEIVED THE DISPUTED GENERAL UNSECURED CREDITORS' PRO RATA SHARE OF THE CREDITOR TRUST INTERESTS ON THE DATE THAT THE TAXPAYER TRANSFERRED THE CREDITOR TRUST ASSETS (WHICH CONSISTED OF CASH AND LITIGATION CLAIMS) TO THE CREDITOR TRUST. BECAUSE AS OF THE EFFECTIVE DATE NO DETERMINATION HAD BEEN MADE AS TO WHETHER A CLAIM FILED AS A GENERAL UNSECURED CLAIM WAS ALLOWED, ALL OF THE CREDITOR TRUST INTERESTS WERE TRANSFERRED TO THE FEGS DISPUTED CLAIMS RESERVE DOF. AS OF JUNE 30, 2021, THE CREDITOR TRUST HAD COMPLETED THE MONETIZATION OF ITS ASSETS (WHICH CONSISTED PRIMARILY OF THE LITIGATION CLAIMS) AND HAD TRANSFERRED ALL OF ITS ASSETS (AFTER PAYMENT OF CERTAIN, BUT NOT ALL, ALLOWABLE EXPENSES) TO THE FEGS DISPUTED CLAIMS RESERVE DOF. IN MARCH, 2022, THE FEGS DISPUTED CLAIMS RESERVE DOF MADE ITS FIRST DISTRIBUTION TO HOLDERS OF ALLOWED GENERAL UNSECURED CLAIMS. UPON COMPLETION OF THE FIXING OF GENERAL UNSECURED CLAIMS AND A DETERMINATION AS TO THE AMOUNT, IF ANY, AVAILABLE FOR DISTRIBUTION TO CREDITORS HOLDING ALLOWED UNSECURED CLAIMS, A SECOND AND FINAL DISTRIBUTION MAY POSSIBLY OCCUR. DURING THE CURRENT TAX YEAR AND PURSUANT TO THE BANKRUPTCY COURT'S ORDERS INCLUDING THE CONFIRMATION ORDER, THE DEBTOR CONTINUED THE PROCESS OF WINDING-UP ITS OPERATIONS AND IMPLEMENTING THE TERMS OF THE PLAN AS APPROVED BY THE COURT INCLUDING THE DISPOSAL OF ITS REMAINING ASSETS AND INTERESTS. AT THE END OF THE CURRENT TAX YEAR (JUNE 30, 2025), THE DEBTOR CONTINUED TO HOLD MEMBERSHIP OR SPONSORSHIP INTERESTS IN THREE REMAINING HOUSING CORPORATIONS WHOSE PROPERTIES HOUSE PHYSICALLY AND DEVELOPMENTALLY DISABLED CLIENTS. PURSUANT TO AN AGREEMENT ENTITLED "SUBSTITUTION OF MEMBERSHIP AGREEMENT (TANYA II, FORSYTH AND ROMBOUTS)" (THE "AGREEMENT"), DATED APRIL 1, 2024, FEGS AGREED TO TRANSFER THE ENTIRETY OF ITS MEMBERSHIP OR SPONSORSHIP INTERESTS IN THE THREE REMAINING HOUSING CORPORATIONS TO ANOTHER NEW YORK NOT-FOR-PROFIT ORGANIZATION WHICH WILL CONTINUE TO PROVIDE CONSISTENT SERVICES TO THE THREE HOUSING CORPORATIONS' CLIENTS. THE AGREEMENT PROVIDES IN PERTINENT PART, AND THE TRANSACTION REQUIRES, THAT THE TRANSFER OF FEGS' MEMBERSHIP OR SPONSORSHIP INTERESTS TO THE NEW YORK NOT-FOR-PROFIT CORPORTATION (THE "SUCCESSOR SPONSOR") IS CONTINGENT UPON THE REQUIRED CONSENTS ("REQUIRED CONSENTS") OF CERTAIN GOVERNMENT REGULATORY AGENCIES ("REGULATORY AGENCIES"), INCLUDING BUT NOT LIMITED TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), THE NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL AND THE CITY OF NEW YORK DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ("HPD"). AS OF THE DATE OF THE FILING OF THIS FORM 990, ALL OF THE REQUIRED DOCUMENTS HAVE BEEN SUBMITTED TO OBTAIN THE REQUIRED CONSENTS. FEGS IS WORKING WITH THE PROPOSED SUCCESSOR SPONSOR WITH THE EXPECTATION OF OBTAINING THE REQUIRED CONSENTS IN THE NEAR TERM. FEGS' CHAPTER 11 CASE NUMBER IS 15-71074 (REG). FEGS' DISCLOSURE STATEMENT, PLAN, CONFIRMATION ORDER, CREDITOR TRUST AGREEMENT, AND THE OTHER PLEADINGS FILED IN FEGS' CHAPTER 11 CASE ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV. Form 990, Part XII, Line 3b REASON ORGANIZATION DID NOT UNDERGO REQUIRED AUDIT ON MARCH 18, 2015 (THE "PETITION DATE"), FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, INC. ("FEGS", THE "DEBTOR", OR THE "TAXPAYER") FILED A VOLUNTARY PETITION FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK, CASE NO. 15-71074 (REG). AS A RESULT OF THE BANKRUPTCY FILING, THE TAXPAYER DID NOT UNDERGO AN A133 AUDIT. THAT SAID, SINCE MARCH 18, 2015 THROUGH FEBRUARY 28, 2018, THE TAXPAYER HAS FILED MONTHLY OPERATING REPORTS ("MOR") WITH THE COURT AND FROM MARCH 1, 2018 THROUGH THE CURRENT PERIOD, QUARTERLY OPERATING REPORTS ("QOR") WHICH REFLECT ITS FINANCIAL ACTIVITY. THE TAXPAYER'S MONTHLY OPERATING REPORTS AND QUARTERLY OPERATING REPORTS ARE AVAILABLE FOR REVIEW AT HTTPS://ECF.NYEB.USCOURTS.GOV/. NYSD FORSYTH HDFC INC (184(F0) 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133985586 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true NYSD HDFC INC AKA TANYA TOWERS II (174(F)) 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133581374 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true NYSD ROMBOUTS HDFC INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133807673 HSNG FOR INDIVS WHO ARE DEAF, DEAF-BLIND, DISABLED AND/OR OF LOW INCOME MEANS NY 501(c)(3) 10 FEGS true HR DYNAMICS INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133930869 Inactive NY FEGS C Corporation 0 0 1 true ALLSECTOR TECHNOLOGY GROUP INC 2 PARK AVE 2OTH FLOOR NEW YORK NY 10016 134024753 Inactive NY FEGS C Corporation 0 0 0.95 true STAFF RESOURCES INC 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 133948926 Inactive NY FEGS C Corporation 0 0 1 true FEGS HOLDING CORP 2 PARK AVE 20TH FLOOR NEW YORK NY 10016 132972009 DORMANT NY FEGS C Corporation 0 0 1 true false false false false false false false false false false false false false false false true false false false NYSD ROMBOUTS HDFC INC P 125118 FMV NYSD HDFC INC AKA TANYA TOWERS II (174(F)) P 149716 FMV NYSD FORSYTH HDFC INC P 73147 FMV