job options inc. annual report 2009

©20

10 Jo

b O

ptio

ns, I

nc. 0

6/10

providing optionsopportunity • self-sufficiency • pride

providing real jobsfor capable people

2009 annual report

on our CoverDennis Morell and Rosamaria Santana have found inspiration in their daily lives through employment with Job Options.

ContentSProviding Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Profile: Rosamaria Santana . . . . . . . . . . . . . . . . . . . . . . . 2-3Profile: Dennis Morell . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5Our Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Report to the Community . . . . . . . . . . . . . . . . . . . . . . . . . . 7

finanCiaL report Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . 8Statements of Financial Position . . . . . . . . . . . . . . . . . . . . 9 Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Liabilities and Net Assets . . . . . . . . . . . . . . . . . . . . . . 9Statements of Activities and Changes in Net Assets . . .10Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . .11Statements of Functional Expenses 2009 . . . . . . . . . . . .12Statements of Functional Expenses 2008 . . . . . . . . . . . .13Notes to Financial Statements . . . . . . . . . . . . . . . . . . . 14-15Management and Board of Directors . . . . . . . . . . . . . . . .16Our Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Our Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

| Job Options 2009 Annual Report

Since our founding in 1987, Job Options Inc. (JOI) has built its reputation through

our ability to demonstrate that individuals with disabilities can provide quality service

for government and commercial customers. As a result of our success, we have

employed over 4,000 individuals with disabilities who contribute to JOI’s success and

live a more self-sufficient life from the work they perform. This report profiles two of

our most valued employees, Rosamaria Santana and Dennis Morell, who exemplify

our company values of quality and integrity.

In providing meaningful employment to these individuals, we are able to give our

customers a valued service as well. Job Options’ ability to deliver a high degree

of customer satisfaction comes from the dedicated performance of our workers,

overseen by our staff of supervisory personnel. We offer consistent employee

productivity and maintain the highest service standards while continuing to give

our customers cost-effective labor solutions.

As we move into the next decade, JOI will continue to grow through its traditional

channels, by partnering with other large and small defense contractors and through

further growth in the commercial industry.

The satisfaction, pride and overwhelming feeling of self-sufficiency that our

employees gain go far beyond the monetary compensation that they earn. Without

question, our employees develop pride in their capabilities, and gain a greater sense

of self-worth as they pursue opportunities for new challenges that enhance their lives.

ith a substantial increase in our financial standing over the previous year, Job Options has expanded its mission of providing real jobs for capable people.


“...I must work. I need the challenge and stimulation.”

ith a college degree in science from the Institute of Biological Sciences at Universidad Autonoma de Guadalajara, Rosamaria Santana assumed she could easily obtain a job after she became a U.S. citizen, despite her disability. Sending

resumes to large and small biotech firms throughout San Diego bore no fruit. Rosamaria estimates she sent “hundreds” of resumes…and when one would eventually result in an interview, unfortunately it never resulted in a job offer. “I’m a college graduate, I owned my own scientific laboratory, and I must work. I need the challenge and stimulation.” For nearly seven years Rosamaria persisted, but without success.

In 2008, Rosamaria visited the Department of Rehabilitation and was referred to Job Options, where she interviewed for a Customer Service Representative position for the SENTRI Enrollment Office located at the Otay Mesa Port–of–Entry. There she met with Job Options manager Gladis Jarquin, who was impressed with her abilities and terrific sense of humor. Rosemaria again waited patiently for a call. After two days, Gladis phoned to tell her, “You’re hired!” Gladis recently told us “Rosamaria is one of the strongest employees at our site. She adds tremendous positive energy to our office.”

Rosamaria’s job as a Customer Service Representative involves assisting the many customers enrolled, or interested in enrolling, in this popular federal government program allowing trusted travelers to cross the borders through designated lanes. This involves significant face-to-face customer contact as well as being able to effectively handle a high volume of phone calls in the office’s Scheduling Department. Rosamaria has received numerous compliments regarding her exceptional customer service skills. The warmth of her personality is evident in the manner she handles each customer.

Rosamaria bubbles with enthusiasm and warm humor. She is a gregarious woman who loves weekend visits with her family, as her husband does the grilling and roasting while their three grown children and granddaughter gather around to talk, laugh and eat. But, as Rosamaria states, “Now I have a second family at SENTRI”—we all work as a team, pulling together. Just like a family.”

Rosamaria has been awarded several “Extra Mile” certificates that Job Options management staff awards to employees who perform at an exceptional level. She has been recognized for having a perfect attendance and punctuality record—she’s never been late or missed a day of work since starting at SENTRI!

“I have been disabled all my life—but my mother never gave me any privileges when I was little. I did the same work as my siblings, with no special treatment. I wondered why she did that…but it made me strong. She gave me more than I realized. Every day I thank my mom, Gladis, the staff at SENTRI and Job Options for giving me this life–changing opportunity.”


Job Options 2009 Annual Report | Page 2

•Weemploy22individualswhoprocess borderpassapplications

•SENTRIisconsideredthe"model"enrollmentcenter

•Over60,000customersservedannually

•Bilingualskillsarerequired

•JOISENTRIstaffsuccessfullyobtained ISOcertificationin2009

JOB OPTIONS aT SENTRI: OTaY MESa

roSaMaria SantanaOTAY MESA SENTRI OFFICE

“Now I have a second

family at SENTRI –

we work as a team,

pulling together.

Just like a family.”

Page 3 | Job Options 2009 Annual Report


denniS MoreLLCAMP PENDLETON MESS HALL

“I was amazed at how quickly Job Options found me a position—

working at Camp Pendleton. I’ve been here since 2004,

and it’s been transformative. What an opportunity!”


As a drummer at Morningside High School in Inglewood, California, Dennis Morell excelled, becoming first chair in the school band. An enthusiastic and optimistic individual, Dennis was bound for success. Following graduation, Dennis became a professional

musician when he joined the group Fair Befall, opening for acts such as Three Dog Night, Moby Grape and Steppenwolf.

After college, Dennis gave up performing for a career as a sales rep for textiles and the flooring industry, servicing the San Diego region. Dennis worked successfully with architects and designers and created a comfortable life for himself, his wife and daughter.

Unfortunately, illness put an end to his 22-year career. “I love to work,” Dennis said recently. “You don’t want to sit around doing nothing.” Despite many attempts to find employment, Dennis was without a job from 1990 to 1997. He didn’t give up, and ultimately entered a work-incentive vocational program through the Department of Rehabilitation. It was there that Dennis learned about JOI and their programs that place disabled individuals in meaningful work situations. He was hired in 2004 to work at one of Camp Pendleton’s mess halls.

“I appreciate all the people I work with at Camp Pendleton,” exclaimed Dennis. “I am always thinking about those who put their life on the line. So my work at Camp Pendleton is to help the Marines and Navy. The least I could do is something to help them in my small way. And also, what I do contributes to my family, my self–esteem and my life overall.”

“It changed my life for the better and I feel blessed to have employment once again.”

With his wife Martha and their four daughters and four grandchildren, Dennis often spends his time away from work with friends and family camping at Santee Lake and fishing. “I love to fish,” says Dennis. “When we camp, it’s up to me to catch dinner!”

Dennis’s other pursuits include visiting museums with Martha and spending a lot of time on the Internet, learning about the world. Dennis is a member of the band at the Lighthouse Christian Church in Oceanside, where he plays the drums. He feels his life now has brought him the joy he thought he had lost when his illness struck.

“Job Options gave me a wonderful opportunity, Dennis reflected. “I have joy in my life again. It’s because of Job Options.”

“And it gets him out of the house!” added Martha, with a smile.

•Weemploy186individualsatfivemess hallsundercontractwithSODEXO

•Serve3.1millionmealsannually

•Positionsheld:managers,supervisors, cashiers,scullery

•Weemploy270peoplethroughoutthebase

•JOI'sFoodServiceDivisionhasISO certification

•Contractsgenerate$10milliondollars annually

JOB OPTIONS aT CaMP PENDLETON



partnerSHipS for BuSineSS deveLopMent

To enhance our growth beyond the Ability One (A1) Program, Job Options (JOI) has begun partnerships with small businesses, minority-owned businesses and those owned by disabled veterans. We are aggressively pursuing federal contracts that are set aside for these businesses. In these partnerships, we are the subcontractor, providing mentoring and support based on our experience and expertise. Our first project began in October 2009 when VetsUSA, LLC (a disabled veteran-owned firm) won a $1 million annual custodial contract with Customs and Border Protection to clean 16 separate CBP facilities throughout San Diego County.

HoSpitaL environMentaL (HouSeKeepinG) ServiCeS

This is a market where the A1 Program has only a minimal presence. Consequently, it is being targeted for growth by NISH (National Industries for the Severely Handicapped), the national not-for-profit that markets and oversees the A1 program. We are well positioned to take advantage of this initiative due to our extensive experience, having provided hospital environmental and housekeeping services for over 10 years at the Naval Medical Center Balboa and the Veterans Administration Medical (VA) Center in La Jolla.

We’ve enhanced our management team in Hospital Environmental Services by hiring Nazar Masry to oversee this Division. Nazar comes to us from Kaiser Permanente. Growth in this segment has been strong; our contract with the VA in La Jolla was recently expanded by 30%. In March 2010, we were selected by NISH South to be the provider of Hospital Environmental Services (HES) for Martin Army Hospital at Fort Benning, Georgia. The contract begins in November 2010, expanding our operations into the Southeastern U.S. and giving us a presence on a major Army base.

CoMMiSSary CoSt reduCtion

Last year JOI undertook an aggressive campaign to increase productivity and reduce costs in response to our commissary contracts being cut approximately 10% (or $1 million annually). We exceeded our goals in this endeavor.

Laundry pLant ModerniZation

We completed a modernization and renovation of our Chula Vista laundry plant in November 2009. We re-equipped the plant with a $1.3 million-dollar tunnel-washing and drying system and overhead rail system. The renovation doubles our capacity at the Chula Vista Plant. Although there was loss of some commercial business during the year, largely due to the effects of the recession, we are engaged in an aggressive campaign to increase business for our two facilities.

BuSineSS innovaton aWard

Job Options is proud to have been selected by NISH as the national winner of the 2009 Business Innovation Award for AbilityOne. This award recognizes the innovations we have implemented in our role as the prime contractor on 15 NAVFAC custodial contracts throughout the Southwest. These practices, which include automation and a computerized database providing more objective real-time performance data, resulted in cost reductions that will save the Navy over $300,000 annually. This is the second time in the last five years that we have won this award—and we are the only not-for- profit in the A1 program to have won this award twice!

We believe the investments that we have made, and the business development programs that we have initiated, will enable us to continue to increase employment opportunities for individuals with disabilities.

Our Accomplishments

Despite the impact of the economic downturn that reduced our commercial business, we were able to grow in Fiscal 08–09 as revenues increased to $37.3 million. By creating programs to increase efficiencies and productivity using best-industry practices, the result has been a net contribution record of $818,000. Below are details on how we are reinvesting these profits in our businesses to provide further opportunities for people with disabilities to gain meaningful employment.


In 2006–2007, we reorganized our Custodial Division into three separate groups: Hospital Environmental Services, NAVFAC and Base Custodial to more effectively service our customers. This resulted in JOI having seven Divisions: Food Service, Professional–Administrative Services, Laundry, and Commissary in addition to the three mentioned above.

We believe JOI is poised to continue substantial growth in the near term as we pursue selected commercial opportunities and expansion in the AbilityOne Program.

JOb OptIOns DIvIsIOnAl Revenue

6601

5150

9513

6195

8754

Food Service(18%)

Custodial(14%)

Commissary(25%)

1155Admin(3%)

Laundry(17%)

Hospital(23%)

Job Options is a San Diego-based not-for-profit organization whose primary mission is to provide meaningful employment for people with disabilities. We meet this goal by employing individuals in basic services such as janitorial, food service, laundry, hospital environmental services, commissary-inventory management and shelf-stocking services to government and commercial customers. Most of our employment opportunities are with various agencies within the federal government and are offered under the provisions of AbilityOne, formerly known as the Javits-Wagner-O’Day program. AbilityOne enables certain federal government contracts to be set aside for firms that primarily employ individuals with disabilities. Under this legislation, people with disabilities must work a minimum of 75% of the direct labor hours expended under these contracts.

We currently have long-term contracts with the U.S. Department of Defense, General Services Administration, Veterans Administration, Homeland Security (U.S. Customs and Border Protection) and the U.S. Postal Service. Our largest customer is the Department of Defense, with a substantial presence at many of the Navy and Marine Corps bases throughout Southern California. Approximately 90% of our current employees work in federal government facilities, with the remaining 10% in the commercial sector.

JOI is now in its 21st year of operation. Over the past ten years, our annual rate of growth has been over 17%. This growth resulted in JOI generating revenue of over $37 million in fiscal 2008–2009. To meet the requirements of our contracts, JOI currently employs over 800 people, the majority of whom have a physical, psychological, developmental or emotional disability.

JOI is entirely self-funded through the contract revenue we receive from various governmental and commercial entities. We do not depend on any gifts or grants to fund our operations. Therefore, we have an ongoing responsibility to operate within budget.

0

200

400

600

97 98 99 00 01 02 03 04 05 06 07

EMPL

OYE

ES

08 09 0

97 98 99 00 01 02 03 04 05 06 07 08 09

800

2009: numbeR Of JOb OptIOns emplOyees

MILL

ION

S

97/9898/99

0

10

20

30

40

99/0000/01

01/0202/03

03/0404/05

05/0606/07

07/0808/09

JOb OptIOns Revenue

Report to the Community


independent auditor’S report

fINaNCIaL REPORT

To the Board of DirectorsJob Options, Inc.

We have audited the accompanying statements of financial position of Job Options, Inc., a California Not-for-Profit Corporation (the “Organization”) as of September 30, 2009 and 2008, and the related statements of activities, changes in net assets, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of the Organization’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Job Options, Inc., a California Not-for-profit Corporation as of September 30, 2009 and 2008, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

MCLEAN, ROTHERHAM & CO., CPAs San Diego, CaliforniaJanuary 14, 2010

Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . 9Statements of Activities and Changes in Net Assets . . . . . . 10Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . 11Statements of Functional Expenses 2009 . . . . . . . . . . . . . . 12Statements of Functional Expenses 2008 . . . . . . . . . . . . . . 13Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 14


The accompanying notes are an integral part of these financial statements

Job options, inc. A CALIFORNIA NOT-FOR-PROFIT CORPORATION

StateMentS of finanCiaL poSition

AssEts 2009 2008

CURRENT ASSETSCash and cash equivalents $ 997,693 $ 873,465 Inventory 178,867 207,280 Contracts receivable 6,994,807 6,388,310Prepaid expense 96,584 93,447

Total Current Assets 8,267,951 7,562,502

PROPERTY AND EQUIPMENTEquipment 3,610,400 3,548,276 Furniture and fixtures 5,352 6,321Leasehold improvements 315,755 296,455 Building 1,322,048 1,322,048Land 100,539 100,539Automobiles 351,712 351,212Less: Accumulated depreciation (2,527,552) (2,264,566)

Net Property and Equipment 3,182,254 3,360,285

NON-CURRENT ASSETSConstruction in process 240,435 –Deposits 117,415 97,366

Total Assets $ 11,808,055 $ 11,020,153

CURRENT LIABILITIESAccounts payable and other liabilities $ 2,342,742 $ 2,101,648 Accrued payroll and payroll related expenses 1,497,442 1,554,614 Notes payable, current 406,978 369,617

Total Current Liabilities 4,247,162 4,025,879

NOTES PAYABLE, NET OF CURRENT PORTION 1,941,134 2,192,925

Total Liabilities 6,188,296 6,218,804

NET ASSETS – UNRESTRICTED 5,619,759 4,801,349

Total Liabilities and Net Assets $ 11,808,055 $ 11,020,153

SEPTEMBER 30, 2009 AND 2008



A CALIFORNIA NOT-FOR-PROFIT CORPORATION Job options, inc.

FOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

StateMentS of aCtivitieS and CHanGeS in net aSSetS

2009 2008 REVENUE

Contract revenue $ 37,568,589 $ 36,569,591 Interest and investment income 15,357 40,474

Total Revenue 37,583,946 36,610,065

DIRECT EXPENSEEmployee salaries $ 15,502,673 $ 15,331,335Employee benefits 6,802,524 6,731,759 Subcontractor services 5,475,606 4,837,201 General supplies 1,091,070 1,148,965 NISH commission 1,244,003 1,156,326 Utilities 536,279 768,028 Depreciation 431,333 400,991 Equipment cost 524,808 429,353 Outside Services 178,593 335,083 Travel 64,840 304,846 Bank services and interest 119,615 118,687 Insurance 128,182 133,234 Facility rents 146,395 152,631 Bad debt expense 110,291 366,036Professional fees 7,498 1,415Telephone 69,362 86,953 Office expense 55,256 64,232Building maintenance 44,253 16,237 Licenses and tax 12,614 10,250 Staff development 5,691 8,091 Dues and subscriptions 294 280

Total Direct Expense 32,551,180 32,401,933

ADMINISTRATIVE EXPENSE 4,214,356 3,832,152

Total Expense 36,765,536 36,234,085

Change in Unrestricted Net Assets 818,410 375,980

NET ASSETS AT BEGINNING OF YEAR 4,801,349 4,425,369

NET ASSETS AT END OF YEAR $ 5,619,759 $ 4,801,349



A CALIFORNIA NOT-FOR-PROFIT CORPORATION

StateMentS of CaSH fLoWSFOR THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008

Job options, inc.

2009 2008

CASH FLOW FROM OPERATING ACTIVITIES:Excess of revenues over expenses $ 818,410 $ 375,980Add charges to revenue not requiring use of cash:Depreciation 432,905 402,435Adjustments to reconcile excess of revenue overexpenses to net cash flow from operating activities (Increase)/decrease in contracts and accounts receivable (606,497) (973,290) (Increase)/decrease in inventory 28,413 43,667 (Increase)/decrease in prepaid expense (3,137) 18,840 (Increase)/decrease in deposits (20,049) 11,436 Increase/(decrease) in accounts payable and other liabilities 183,922 464,489

Net cash (used) by operating activities 833,967 343,557

CASH FLOW FROM INVESTING ACTIVITIES: Acquisition of property and equipment (268,030) (411,957) Construction in process (240,435) – Disposal of equipment 13,156 3,007

Net cash (used) by investing activities (495,309) (408,950)

CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from additional notes payable 177,148 423,805 Principal payments on notes payable (391,578) (372,989)

Net cash provided by financing activities (214,430) 50,816

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 124,228 (14,577)

CASH AND CASH EQUIVALENTS BEGINNING OF YEAR 873,465 888,042

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 997,693 $ 873,465 SUPPLEMENTAL INFORMATION

Interest paid $ 1,910,122 $ 190,085




StateMentS of funCtionaL expenSeS 2009FOR THE YEAR ENDED SEPTEMBER 30, 2009

Job options, inc.

TOTAL PROGRAMSERVICE

MANAGEMENTAND GENERAL

2009

Employee salaries $ 15,526,673 $ 15,502,673 $ 24,000Employee benefits and other employee expense 6,794,723 6,802,524 (7,801)Management fee 3,918,456 – 3,918,456Sub-contractor services 5,475,606 5,475,606 –General supplies 1,091,429 1,091,070 359NISH and other commissions 1,244,003 1,244,003 –Utilities 536,279 536,279 –Depreciation 432,905 431,333 1,572Equipment costs 560,854 524,808 36,046Outside services 180,566 178,593 1,973Travel and entertainment 65,016 64,840 176Rent 146,395 146,395 -Insurance 212,886 128,182 84,704Bank services and interest 190,122 119,615 70,507Professional fees 29,352 7,498 21,854Bad debt expense 110,291 110,291 –Loss on disposal of assets 13,006 – 13,006Telephone 69,418 69,362 56Office expense 58,254 55,256 2,998Settlements 38,000 – 38,000Building maintenance 44,253 44,253 –Licenses and taxes 20,324 12,614 7,710Staff development 5,691 5,691 –Dues and subscriptions 1,034 294 740

Totals $ 36,765,536 $ 32,551,180 $ 4,214,356




StateMentS of funCtionaL expenSeS 2008FOR THE YEAR ENDED SEPTEMBER 30, 2008

Job options, inc.

2008

TOTAL PROGRAMSERVICE

MANAGEMENTAND GENERAL

Employee salaries $ 15,355,698 $ 15,331,335 $ 24,363Employee benefits 6,686,818 6,731,759 (44,941) Management Fee 3,639,579 – 3,639,579Sub-contractor services 4,837,201 4,837,201 – General supplies 1,153,912 1,148,448 5,464 NISH and other commissions 1,156,326 1,156,326 – Utilities 768,028 768,028 – Depreciation 402,435 400,991 1,444Equipment leases and rents 265,995 239,623 26,372Other business services 335,280 335,083 197 Travel 304,922 304,846 76 Insurance 205,325 133,234 72,091 Equipment repair and maintenance 178,282 176,654 1,628Bank services and interest 190,085 118,687 71,398 Facility rents 152,631 152,631 – Professional fees 9,869 1,415 8,454 Bad debt expense 366,036 366,036 – Telephone 92,893 86,953 5,940 Food and paper goods 517 517 – Printing and postage 26,362 22,457 3,905 Office supplies 42,910 41,775 1,135Building maintenance 16,237 16,237 – Licenses and taxes 17,459 10,250 7,209Staff development 8,091 8,091 –Minor equipment 13,076 13,076 – Marketing 990 – 990Dues and subscriptions 7,128 280 6,848

Totals $ 36,234,085 $ 32,401,933 $ 3,832,152


NOTES TO fINaNCIaL STaTEMENTSnote 1 – nature of BuSineSSJob Options, Inc. (the “Organization”) contracts with federal agencies and private companies to provide a variety of services, including janito-rial, grounds maintenance, shelf stocking and laundry throughout South-ern California. Work is performed primarily under time and material and negotiated price contracts. The workforce consists principally of capable individuals with severe mental, physical or psychological disabilities. On-the-job training and continued support is provided to assist employees in reaching their fullest potential. The Organization works closely with the Department of Rehabilitation and other nonprofit agencies that assist in-dividuals with disabilities and currently employs over 800 individuals.

note 2 – SuMMary of SiGnifiCant aCCountinG poLiCieS

basis of AccountingThe Organization utilizes the accrual method of accounting for financial statement reporting. Under this method, revenue is recognized when earned and expenses are recognized when incurred.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

cash and cash EquivalentsCash equivalents consist of short-term highly liquid investments that are readily converted to cash with an original maturity of three months or less.

The Organization’s cash equivalents include $124,279 invested in the Dreyfus Government Prime Cash Management Fund for which the average maturity cannot exceed 60 days.

Fair ValueThe carrying amounts reported in the statements of financial position for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their immediate short-term maturity.

Depreciation and Fixed AssetsThe Organization capitalizes all fixed asset acquisitions and major improvements with a cost basis of $1000 or more with a determinable life greater than one year at the acquisition cost. Replacement, maintenance and repairs, which do not improve or extend the life of the respective asset, are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Amortization expense and accumulated amortization have been included in depreciation expense and accumulated depreciation, respectively.

short-term investmentsIn accordance with accounting principles generally accepted in the United States of America, the Organization accounts for its short-term investments with a readily determinable market value by recording and reporting those investments at fair value. Information about the income earned from short-term investments is discussed in Note 3.

Retirement plansThe Organization offers a non-contributory 403-B savings plan. The plan allows eligible employees to defer up to the maximum allowed under appropriate laws governing the plan selected.

The Organization has two departments, NMC and Food Service, which are covered under union contracts for health and welfare and pension benefits. Contributions for these benefits are carried in employee benefits. Employees in other divisions are paid $.90 per hour as part of the mandated health and welfare benefit. Additional contributions of varying amounts for health and welfare are paid to outside administrators. These contributions are also carried in employee benefits.

income taxes The Organization is a nonprofit Corporation exempt from income taxes, except for unrelated business income, under Internal Revenue Code Section 501 (C)(3). Unrelated business activities do not result in significant taxable income.

Functional ExpensesThe costs of providing the Organization’s programs have been summarized on a functional basis in these financial statements. Based on management’s estimates, costs have been allocated between programs and supporting services as they relate to those functions.

contracts Receivable and Accounts ReceivableContracts receivable consists of balances due for services provided pursuant to written and verbal contracts with various public and private agencies. Generally accepted accounting principles in the United States of America require that an allowance for doubtful accounts be established for accounts receivable. It is the Organizations’ policy to evaluate the collectability of receivables on a regular and ongoing basis, if deemed necessary, an adjustment to the allowance for bad debt account is recorded. Accordingly, contracts and accounts receivable are shown net of an allowance for doubtful accounts.

basis of presentationAccounting principles generally accepted in the United States of America require that the Organization present information about its financial posi-tion and activities in three classes of net assets: unrestricted, temporarily restricted and permanently restricted. In these reporting periods, the Organization had only unrestricted net assets.

The Organization reports contributions as restricted if they are received with donor stipulations that limit the use of the donated asset. When a donor-imposed restriction expires, that is, when the time restriction expires, or the purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets. When restrictions on contributions are satisfied in the same period as the receipt of the contribution, the Organization reports both the revenue and the related expense in the unrestricted net assets.

Administrative ExpenseAdministrative expense shown on the statement of activities reflects all costs associated with administration/management and general. Based on management’s estimates, administrative costs have been allocated be-tween programs and supporting services as they relate to those functions as reflected in the statements of functional expense.

note 3 – SHort-terM inveStMentSShort-term investment income was comprised of interest and dividends in the amount of $15,357 and $40,474 for the years ended September 30, 2009 and 2008, respectively.

note 4 – ConCentration of Credit riSKThe Organization, at various times during the year, may maintain cash bal-ances in excess of the FDIC limit in a high-quality financial institution. The FDIC limit is currently $250,000 for interest bearing accounts and unlimited for non interest bearing accounts through June 30. 2010. As of September 30, 2009, the Organization’s operating account was $1,058,058 of which $124,279 is maintained in a Dreyfus Government Prime Cash Management Fund which is not covered by FDIC.

note 5 – reLated partieS – MentaL HeaLtH SySteMS, inC.Beginning in the year ended September 30, 1994, Mental Health Systems, Inc. (MHS) assisted in establishing Job Options, Inc. (JOI), as a non-profit entity administering vocational rehabilitation programs for MHS. Although JOI is no longer administering vocational rehabilitation programs for MHS, they have entered into other business transactions since that time.

As of September 30, 2009 and 2008, the Organization had the following outstanding liabilities and lease commitments with MHS:

The Organization has entered into an operating lease agreement with MHS for laundry equipment. The lease commenced December 15, 1997, and matures December 15, 2012. Monthly lease payments decrease annually in years one through eight and become fixed in years nine through fifteen.


Monthly lease payments during the year ended September 30, 2009, and September 30, 2008, were $1,800. Total lease payments during the years ended September 30, 2009 and 2008, were $21,600 and $21,600, respectively. Aggregate future lease payment liabilities are $8,998 for the year ending September 30, 2010. Organization has the ability to cancel lease with thirty days notice. The Organization would then incur a penalty of three months rent.

The Organization has entered into a second operating lease agreement with MHS for laundry equipment. The lease commenced February 1, 1998, and matures February 1, 2013 and requires monthly lease payments of $885. Total lease payments during each of the years ended September 30, 2009, and 2008 were $10,620. Aggregate future lease payment liabilities were $4,426 for the year ending September 30, 2010. Organization has the ability to cancel lease with thirty days notice. The Organization would then incur a penalty of three months rent.

note 6 – reLated party – BeHavioraL ManaGeMent SySteMS, inC.The Organization has entered into an agreement with Behavioral Manage-ment Systems, Inc. (BMS) as of April 1, 2004. BMS is a for-profit entity which has been organized to provide administrative services to the Organi-zation. Officers of Job Options, Inc. are also officers of BMS. Management fees were $3,918,456 for the year ended September 30, 2009.

note 7 – operatinG LeaSe CoMMitMentSThe Organization has entered into various operating lease agreements for equipment, vehicles and office space. The leases expire at various dates throughout the years ending September 30, 2012.

Future minimum payments, by year and in the aggregate, under non-cancelable operating leases with initial or remaining terms of one year or more consisted of the following as of September 30:

Years ending September 30,

2010 $ 484,847

2011 319,443

2012 324,168

2013 189,098

2014 and thereafter 144,534

$ 1,462,090

note 8 – noteS payaBLeNotes payable consist of the following:

The Organization has entered in a non-cancelable lease with Associated Bank in the amount of $500,000 for the purchase of laundry equipment, effective interest at 7.85%, 60 monthly payments of $10,102, with a $1 buy-out at lease maturity date of January 23, 2009. The balance as of September 30, 2009 and 2008 was $0 and $39,757, respectively.

The Organization had available a revolving line of credit from NCB Development Corporation that was reduced from $1,000,000 to $582,500. The interest rate started at 8.25% and will fluctuate at 3.5% over the weekly average yield of US Treasury Securities. Principal and interest in the amount of $4,867 will be paid monthly with any accrued interest and principal balance due in full on the maturity date of April 1, 2016. The balance as of September 30, 2009 and September 30, 2008 was $543,441 and $555,827, respectively.

The Organization entered into a capital lease with Celtic Leasing during the year ended September 30, 2007. The agreement allowed for the purchase of equipment up to $367,822. As of September 30, 2009, the principal balance was $253,197. The effective interest rate as of September 30, 2009 was 6.94%

The Organization entered into a capital lease with Celtic Leasing during the year ended September 30, 2008. Additional equipment was purchased in the amount of $189,083. As of September 30, 2009, the principal balance was $189,083. The effective interest rate as of September 30, 2009 was 7.68%.

In 2004 the Organization entered into a construction loan agreement with NCB Development Corporation in the amount of $181,571 for the construction of a facility. During the year ended September 30, 2005, additional proceeds of $503,429 were added to the loan. During the year ended September 30, 2007 additional proceeds of $433,906 were added to the loan. The balance as of September 30, 2009 and 2008 was $1,016,791 and $1,042,419, respectively. Effective interest rate is 8.375% through 4/7/11 at which point the rate will fluctuate at 3.5% over the weekly average yield of US Treasury Securities. The loan will mature March 27, 2016.

During the year ended September 30, 2005, the Organization entered into an equipment loan agreement with NCB in the amount of $500,000. Additional proceeds of $196,720 were added to the loan. The interest rate is the NCB Commercial Loan Base Rate which is currently 6.22%. This loan will mature October 1, 2010. The balance as of September 30, 2009 and 2008 was $195,625 and $363,087, respectively.

The Organization entered a lease/purchase agreement with Wirth Business Credit for equipment that will be theirs at the termination of the lease. Payments are $4,692 and are for 48 months. Interest is 12%. The balance as of September 30, 2009 is $152,951.

The Organization has various car loans outstanding with maturities through 2013. The balance in these loans was $18,548 and $23,250 as of September 30, 2009 and 2008, respectively.

Aggregate future maturities of long-term debt are as follows:

Years ending September 30;

2010 $ 406,978

2011 264,686

2012 214,060

2013 98,679

2014 60,208

Thereafter 1,303,501

Total 2,348,112

Less current portion 406,978

Long-term debt $ 1,941,134

note 9 – aSSetS aCQuired via CapitaL LeaSeIncluded in fixed assets are $688,696 of assets that have been acquired via a capital lease agreement at September 30, 2005. There are two separate lease agreements; each requires a $1 buy-out at the completion of the lease term. As of September 30, 2009 and 2008, amortization expense, which has been included in depreciation expense, was $18,449 and $44,278, respectively.

note 10 – HeaLtH and WeLfare Money purCHaSe penSion pLanIncluded in accounts payable and other liabilities as of September 30, 2009 and 2008, were $240,322 and $248,770, respectively, due to various trusts for health and welfare pensions. Included in employee benefits expense were $3,410,554 and $3,467,456, of health and welfare benefits for the years ended September 30, 2009 and 2008, respectively.

note 11 – ContraCtS and aCCountS reCeivaBLe – aLLoWanCe for douBtfuL aCCountSConsistent with generally accepted accounting principles in the Unit-ed States of America, contracts receivable as of September 30, 2009 and 2008, are shown net of an allowance for doubtful accounts in the amount of $159,134 and $280,000, respectively. The Organization re-corded bad debt of $110,291 and $366,036 for the years ended Sep-tember 30, 2009 and 2008, respectively.


2009 NISH National Business Innovation Award

2008 NISH Board Award for Performance Excellence – Randy Williams

2007 NISH Award for Outstanding Performance

2006 NAVFAC SW FEAD San Diego Safety Award – Facilities Maintenance Category, Janitorial Services for Naval Medical Center

2006 NISH National Business Innovation Award

2006 Grassroots Excellence Award for Governmental Relations

2005 NISH National William Usdane Award – James Bandy

2004 Fastest Growing Company Award – San Diego Business Journal

2002 NISH National Evilyne Villines Award – Jim Smith

ManaGeMent

William r. Mead, ph.d.Chief Executive Officer [email protected]

Bill eastwood, MaChief Administrative Officer [email protected]

Jeffrey JohnsonChief Operating Officer [email protected]

Char HealyChief Financial Officer [email protected]

doug BakerFood Service Division Manager [email protected]

management and board of Directors

Our Awards

The quality of service we deliver to our customers is a result of our employees’ ability to get the job done efficiently, professionally and with pride. Job Options and its employees have been the recipients of many awards and accolades through the years.

Margaret ann penãNAVFAC Division Manager Custodial Division Manager [email protected]

Gladis JarquinAdministrative Services Division Manager/Safety Officer [email protected]

peg dalyNavfac Contract Manager [email protected]

Joe ryanLaundry Division Manager [email protected]

nasar MasryHospital Environmental Services Division Manager [email protected]

Carol WhiteleyCommissary Division Manager [email protected]

valorie SeidlHuman Resources Director [email protected]

Juan agundisInformation Technology Director [email protected]

Steve CredlePTS Administrator and Purchasing [email protected]

richard CarrilloDirector of Contracts Governmental Relations [email protected]

Board of direCtorS

Celia Ballesterospatrick o’Sullivan

dr. richard Skay

verlyn Soderstrom

Bruce Whitcomb, Chairman richard Woodaman


adMiniStrative ServiCeS

Bilingual Services Customer Service Data Entry Office Support Project Management Word Processing

BuiLdinG and CuStodiaL ServiCeS

Carpet Cleaning and Bonneting Common Area Cleaning Floor Maintenance Food Preparation Area Cleaning Furniture and Office Cleaning Restroom Cleaning, Sanitizing and Re-Supply Waste Container Maintenance Window Cleaning Vacuuming and Dusting

CoMMiSSary and WareHouSinG

Forklift Handling Inventory – Tracking, Management and Order Writing Material Management and Logistics Shelf-Stocking Truck Loading and Unloading

GroundS/LandSCape MaintenanCe

Beds Maintenance Lawn Care – Planting, Trimming, Weeding and Watering Irrigation Systems Street Sweeping

Concept and Design by STUDIO 2055 | Photography by Richard Dowdy | studio2055.com

HoSpitaL environMentaL ServiCeS

Clinic, Pharmacy and Laboratory Cleaning Exam/Treatment Room Cleaning Labor and Delivery Room Cleaning Medical Waste Transfer and Disposal Office/Administrative Cleaning Operating and Emergency Room Cleaning Patient Room Cleaning

HoSpitaLity and food ServiCeS

Cashiers Cooking and Baking Food Ordering Food Service Budget Development Inventory Procurement Kitchen Cleaning Menu Planning Plate, Silverware Bar Replenishment Pot Washing Restaurant Area Cleaning Scullery Self-serve Bar Replenishment Silverware and Table Setting Replenishment Table Busing and Cleaning

Linen and Laundry ServiCeS

Amenities Bed Linens and Terry Dust Control (mats, wet mops, dust mops) Flat Work, Finishing, Dry Cleaning Folding Item Rental and COG Pick-up and Delivery Table Linens and Napkins Uniforms

As your valued partner, Job Options plays a key role in providing services in a wide range of areas to business and government.

Our services

JOI employees pictured left to right (inside front cover and page 1): Steve Credle, Mayra Vella, Adolfo VisCarra, Particia Cruz, James Bandy

Corporate offiCe

3465 Camino Del Rio SouthSuite 300San Diego, CA 92108Phone: 619-688-1784Fax: 619-688-9884

Laundry pLant

Chula Vista Plant2248 Main Street, Suite 10Chula Vista, CA 91911Phone: 619-575-7627Fax: 619-424-8768

Laundry pLant

San Bernardino Plant1110 S. Washington AvenueSan Bernardino, CA 92408Phone: 909-386-0342Fax: 909-890-4673

food ServiCeS

560 Greenbrier Drive Suite 103Oceanside, CA 92054Phone: 760-547-2480Fax: 760-547-2485

©20

10 Jo

b O

ptio

ns, I

nc. 0

6/10

providing real jobsfor capable people

job options inc. annual report 2009

Documents

job options ability

job offer

rosamaria santana

financial statements

contentsproviding options

report profiles

quality service

valued employees