Drafting Business Plans

(1)

V For!)

990 Return of Organization Exempt from Income Tax

OMB No

,545-0047

' Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code -0o

(except black lung benefit trust or private foundation) _{Open to Public}

Department of the Treasury ~ _I_nspection

Internal Fevenue Service The organization may have to use a copy of this return to satisfy state reporting requirements

A For the 2003 calendar ear, or tax year beginning 7/01 , 2003, and ending 6/30 , 2004

B Check d applicable D Employer Identification Number

Address change `XIRSlabele

Key Service

Systems, Inc . 06-1259340

or print 270 F

_armingt

on Avenue #220 E Telephone number

Name change or type

See

Farmington, CT 06032

_{(860) 409-7350}

Initial return specific

instruc- _Accounting

Final return boos F method . Cash ~ Accrual

Amended return Other (specify) "

Application pending " Section 501(CX3) organizations and 4947(a)(1) nonexempt H and I aye not applicable to section 527 organizations

charitable trusts must attach a completed Schedule A _{H (a) is}_{this a group return (or affihates7} _~_{vas X~ No} (Form 990 or 990-E~ .

H (b) N 'Yes, enter number oi affiliates "'

G Web site:" www .keys tonehumanservices .or /ke /ke h _{H (C) Are all affiliates included} _~_Yes _~ No

J Organization type fir No,' attach a list See instructions )

(check only one) ~ X 501(c) 3 '4 (insert no) 4947(a)(1) or 527

K Check here ~ if the organization's gross receipts are normally not more than H (d) Is this a separate return _{organization covered by a group ruling}filed by an 7

Yes X No

$25,000 The organization need not file a return with the IRS, but if the organization

received a Form 990 Package in the mail, it should file a return without financial data I Group Exemption Number

Some states require a complete return . _{M Check 1, X if the organization is not required} L Gross receipts Add lines 6b, 8b, 9b, and lOb to line 12 ~ 9,535,453 . to attach Schedule B (Form 990, 990-EZ, or 990 PF)

rt I Revenue, Expenses, and Chan ges in Net Assets or Fund Balances (s 1 Contributions, gifts, grants, and similar amounts received

a Direct public support 1 a

b Indirect public support 1 b

c Government contributions (grants) 1 c d Total (add lines _{1 a through 1 c) (cash ~} ₇

_{, 3 9 3}

_{. noncash}

_$

2 Program service revenue including government fees and contracts (from Part VII, line 93) 3 Membership dues and assessments

4 Interest on savings and temporary cash investments 5 Dividends and interest from securities

6a Gross rents 6a

b Less rental expenses 6b

c Net rental income or (loss) (subtract line 6b from line 6a) 7 Other investment income (describe

169 . 644 . 217,849 . 9,535,161 . 8,052,242 . 1,348,233 . 3,664 . 9,404,139 . 131,022 . 608,804 . 739, 826 . Form 990 (2003) 5 6c (B) Other 8d e

n

w

R (a? E

8a Gross amount from sales of assets other

than inventory 8a

b Less cost or other basis and sales expenses 8b

c Gain or (loss) (attach schedule) 8c

d Net gain or (loss) (combine line 8c, columns (A) and (B)l

.F~ial events and activities (attach schedule) If any amount is from gaming, check her

-- 9

i Spe

RE E

a Grbss revenue (not including $ of contributions

reported on line la) 9a 936 .

WIN lb},es~d~ect expenses other than fundraising expenses c ~Je~ ncome or (loss) from special events (subtract line 9b from line 9a) 9b Statement 1 9c 292 .

13

BAA For Paperwork Reduction Act Notice, see the separate instructions . TEEA0107L 10/03103 -J

'o c0

Instruct

7,393 .

-~-' 10a Gross sales of inventory, less returns and allowances l0a

k,lu Cbl~qss,cost of goods sold 10b

c ross profif or (loss) from sales of inventory (attach schedule) (subtract line lOb from line l0a) 11 Other revenue (from Part VII, line 103)

12 Total revenue (add lines l d, 2, 3, 4, 5, 6c, 7 . 8d, 9c, lOc, and 11) E 13 Program services (from line 44, column (B))

X 14 Management and general (from line 44, column (C)) P

E 15 Fundraising (from line 44, column (D)) N

5 16 Payments to affiliates (attach schedule) E

S 17 Total expenses (add lines 16 and 44, column (A))

A 18 Excess or (deficit) for the year (subtract line 17 from line 12)

E S 19 Net assets or fund balances at beginning of year (from line 73, column (A)) r T 20 Other changes in net assets or fund balances (attach explanation)

S 21 Net assets or fund balances at end of ear (combine lines 18, 19, and 20)

10c 11

7,393 . 9,309,106 .

(2)

Form 990 (2003) Key Service Systems, Inc . 06-1259340 Page z a1 Part IIT' Statement of Functional Ex enses All organizations must complete column (A) Columns (B), (C), and (D) are

required for section 501(c)(3) and 4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others

Do not include amounts reported on line (B) Program (C) Management

6b, Sb, 9b, )0b, or 16 of Part 1 (A) Total services and general (D) Fundraising 22 Grants and allocations (att sch)

(cash $

non-cash $ ) 22

23 Specific assistance to individuals (att sch) 23 24 Benefits paid to or for members (att sch) 24

25 Compensation of officers, directors, etc 25 426,388 . 146,709 . 279,679 . 26 Other salaries and wages 26 5, 224,442 . 4, 989, 771 . 239, 671 . , 27 Pension plan contributions 27

28 Other employee benefits 28 530, 659 . 486, 152 . 99, 507 .

29 Payroll taxes 29 413,207 . 375, 596 . 37, 611 .

30 Professional fundraising tees 30

31 Accounting fees 31 25,000 . 25, 000 .

32 Legal fees 32 11,567 . 11, 567 .

33 Supplies 33 148, 119 . 78,615 . 65, 840 . 3,664 .

34 Telephone 34 87 685 . 71,248 . 16, 437 .

35 Postage and shipping 35 8,414 . 477 . 7, 937 .

36 Occupancy 36 268, 655 . 161, 054 . 107, 601 .

37 Equipment rental and maintenance 37 214,073 . 189,377 . 29, 696 .

38 Printing and publications 38

39 Travel 39 202,627 . 195, 071 . 7,556 .

40 Conferences, conventions, and meetings 40

41 Interest 41 228,298 . 225, 535 . 2, 763 .

42 Depreciation, depletion, etc (attach schedule) 42 291,969 . 261,576 . 30, 393, 43 Other expenses not covered above (itemize)

a See Statement 2 43a 1,323,036 . 871,061 . 451, 975 .

b 43b

c 43c:

d 43 d

e 43e

44 Total functional expenses (add lines 22 43) Organizations completing columns (B) - (D),

carry these totals to lines l3-15 44 9, 404, 139 . 8, 052, 242 . 1, 348, 233 . 3,664 . Joint Costs. Check ~F1 if you are following SOP 98-2

Are any point costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? -F] Yes X No If 'Yes,' enter (i) the aggregate amount of these point costs $ , (ii) the amount allocated to Program services

$ , (iii) the amount allocated to Management and general $ , and (iv) the amount allocated to Fundraising $

Par* III Statamnnf of Prnnram Car%iira Arrnmnlichmantc

What is the organization's primary exempt purposes ~ See Statement 3 - - - Program Service Expenses All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of ~Req~~~ed for 501(c)(3) aid (4) organizations and clients served, publications issued etc Discuss achievements that are not measurable (Section 501(c)(3) & (4) organ- 4947(a)(1) trusts, bit izations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants & allocations to others ) optional for others ~

a See Statement -4

---(Grants and allocations $ )

b

c ---

(Grants and allocations $ )

d

8,052,292 . and allocations $ e Other pi f Total of BAA ram services

i line 44, column (B), Program serve TEEA0102L 10i03103

Service E 0-1

8,052,242 .

(3)

TEEA0103L 10101i03

i Form 990 (2003) Key Service Systems, Inc . 06-1259340 Page 3

Part IV- Balance Sheets (see Instructions)

Note: ,Where required, attached schedules and amounts within the description (A) (B)

column should be for end-of-year amounts only Beginning of year End of year

45 Cash - non-interest -bearing 91,442 . 45 311,097 .

46 Savings and temporary cash investments 226, 989 . 46 4,533 .

47a Accounts receivable 47a 1, 135, 180 .

b Less allowance for doubtful accounts 47b 77,114 . U8,038 . 47c 1, 058, 066 .

48a Pledges receivable 48a

b Less allowance for doubtful accounts 48b 48c

49 Grants receivable 49

50 Receivables from officers, directors, trustees, and key

s employees (attach schedule) 50

E 51 a Other notes & loans receivable (attach sch) 51 a T

s b Less allowance for doubtful accounts 51 b 51 c

52 Inventories for sale or use 52

53 Prepaid expenses and deferred charges 101,154 . 53 45,958 .

54 Investments - securities (attach schedule) ~~ Cost ~ FMV 54

55a Investments - land, buildings, & equipment basis 55a b Less accumulated deprecation

(attach schedule) 55b 55c

56 Investments - other (attach schedule) 56

57a Land, buildings, and equipment basis 57a 4, 830, 053 .

b Less accumulated deprecation ---

(attach schedule) Statement 5 57b 1, 493, 405 . 3, 440, 683 . 57c 3, 336, 648 .

58 Other assets (describe -- See Statement 6 ) 49,261 . 58 41,125 .

59 Total assets (add lines 45 through 58) (must equal line 74) 4,787, 567 . 59 4,797 , 427 .

60 Accounts payable and accrued expenses 584, 789 . 60 782, 400 .

61 Grants payable 61

n _s 62 Deferred revenue 8, 035 . 62 22,768 .

i 63 Loans from officers, directors, trustees, and key employees (attach schedule) 63 L

i 64a Tax-exempt bond liabilities (attach schedule) See Statement 7 1,929, 696 . 64a 1,903,994 . T

i b Mortgages and other notes payable (attach schedule) See Statement 8 1,614, 747 . 64b 1,255, 075 . E

s 65 Other liabilities (describe 1, See Statement 9 ) 41,496 . 65 93,364 .

66 Total liabilities (add lines 60 through 65) 4,178, 763 . 66 4,057, 601 .

Organizations that follow SFAS 117, check here ~ U and complete lines 67 N _{through 69 and lines 73 and 74}

67 Unrestricted 589, 414 . 67 720, 436 .

68 Temporarily restricted 19, 390 . 68 19,390 .

69 Permanently restricted 69

R Organizations that do not follow SFAS 117, check here ~ ~ and complete lines F 70 through 74

70 Capital stock, trust principal, or current funds 70

71 Paid-in or capital surplus, or land, building, and equipment fund 71 s

72 Retained earnings, endowment, accumulated income, or other funds 72

A

73 Total net assets or fund balances (add lines 67 through 69 or lines 70 through --

72, column (A) must equal line 19, column (B) must equal line 21) 608,804 . 73 739, 826 . 74 Total liabilities and net assets/fund balances (add lines 66 and 73) r--4,387,567 . 74 4,79-7,423 . Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization in such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments BAA

(4)

TEEA0104L 10102/03

`~ Form 990 (2003) Key Service S stems, Inc . 06-1259340 Page a

Part IV-A Reconciliation of Revenue per Audited Part IV-B Reconciliation of Expenses per Audited

Financial Statements with Revenue Financial Statements with Expenses

per Return (See instructions ) per Return

a Total revenue, gains, and other support a Total expenses and losses per audited

per audited financial statements ~ a 9, 535, 453 . financial statements ~ a 9,404,431 . b Amounts included on line a but b Amounts included on line a but not

not on line 12, Form 990 on line 17 Form 990

(1) Net unrealized (1) Donated serv- _

gains on ices and use

investments $ of facilities $

(2) Donated serv- - (2) Prior year adjust

ices and use ments reported on

of facilities $ line 20, Form 990 $

1

(3) Recoveries of prior (3) Losses reported on

year grants $ line 20, Farm 990 $

(4) Other (specify) (4) Other (specify)

--- ---

See Stm 10 . $ 292 . See Stmt 11 $ 292 . ._-

Add amounts on lines (1) through (4) 1" b 292 . Add amounts on lines (1) through (4) ~ b 292 .

c Line a minus line b ~ c 9,535,161 . c Line a minus line b ~ c 9, 404, 139 .

d Amounts included on line 12, d Amounts included on line 17,

Form 990 but not on line a : Form 990 but not on line a:

(1) Investment expenses - - (1) Investment expenses

not included on line not included on line -

6b, Form 990 $ 6b, Form 990 $

(2) Other (specify)

1 (2) Other (specify)

Add amounts on lines (1) and (2) ~ d Add amounts on lines (1) and (2) ~ d e Total revenue per line 12, Form e Total expenses per line 17, Form

990 (line c plus line d) ~ e 9,535,161 . 990 (line c plus line d) ~ e 9, 404, 139 . Part V List of Officers, Directors, Trustees, and Ke Em to ees (List each one even if not compensated, see instructions )

(B) Title and average hours (C) Compensation (D) Contributions to (E) Expense (A) Name and address per week devoted _{to position} (if not paid, _{enter -0-)} _{plans and deferred}employee benefit account and other _allowances

compensation See Statement 12 --- 426,388 . 14,124 . 0 . --- --- --- --- --- --- --- --- --- ---

75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your organization and all related organizations, of which more than

$10,000 was provided by the related organizations? See. Statement 13 1111~ XYes ~No If 'Yes,' attach schedule - see instructions

(5)

5

h I( section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85i to its reasonable estimate of

dues allocable to nondeductible lobbying and political expenditures for the following tax year? 85h N ~A 86 501(c)(7) organizations Enter a Initiation fees and capital contributions included on

line 12 86a N/A

b Gross receipts, included on line 12, for public use of club facilities 86b l N/A 87 501(c)(12) organizations Enter a Gross income from members or shareholders 87a N/A -

TEEA0105L 12123103

Form 960 (2003) Key Service Systems, Inc . 06-1259340 Page

Part VI Other Information (See instructions ) Yes No

76 Did the organization engage m any activity not previously reported to the IRS If 'Yes,' - --

attach a detailed description of each activity 76 X

77 Were any changes made in the organizing or goveininy documents but not reported to the IRS Tl X If 'Yes,' attach a conformed copy of the changes

78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this returns 78a ' X

b If 'Yes,' has it filed a tax return on Form 990-T for this years 78b N A

79 Was there a liquidation, dissolution, termination, or substantial contraction during the

years If 'Yes,' attach a statement 79 I ~I X

80a Is the organization related (other than by association with a statewide or nationwide organization) through common

membership, governing bodies, trustees, officers, etc, to any other exempt or nonexempt organization? 80a X b If 'Yes,' enter the name of the organization ~ See Statement 14

and check whether it is X exempt or ~nonexempt _(J 81 a Enter direct and indirect political expenditures. See line 81 instructions 81 . 1 0 .

b Did the organization file Form 1120-POL for this years 81 b X

82 a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at

-substantially less than fair rental values 82a X

b If 'Yes,' you may indicate the value of these items here Do not include this amount as

revenue in Part I or as an expense in Part II (See instructions in Part III ) 82b N/A

83a Did the organization comply with the public inspection requirements for returns and exemption applications 83a X b Did the organization comply with the disclosure requirements relating to quid pro quo contributions 83b X 84a Did the organization solicit any contributions or gifts that were not tax deductibles 84a X

b If 'Yes,' did the orq~anization include with every solicitation an express statement that such contributions or gifts were

-not tax deductible 84b N A

85 501(c)(4), (5), or (6) organizations a Were substantially all dues nondeductible by members 85a N A b Did the organization make only in-house lobbying expenditures of $2,000 or less 85b N A

If 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year

c Dues, assessments, and similar amounts from members 85c N/A

d Section 162(e) lobbying and political expenditures 85d N/A

e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices 85e N/A f Taxable amount of lobbying and political expenditures (line 85d less 85e) 85f N/A

g Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? 85g N A

bGross income from other sources (Do not net amounts due or paid to other sources

against amounts due or received from them ) 87b N/A -J

88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301 7701-2 and 301 7701-3?

If 'Yes,' complete Part IX 88 X

89a 501(c)(3) organizations Enter Amount of tax imposed on the organization during the year under

section 4911 ~ 0 . , section 4912 ~ 0 . , section 4955 ~ 0 . 1

b 501(c)(3) and 501(c)(4) organizations Did the organization engage in any section 4958 excess benefit transaction during the year or did ii become aware of an excess benefit transaction from a prior years If 'Yes,' attach a statement

explaining each transaction I 89b1 I X

c Enter Amount of tax imposed on the organization managers or disqualified persons during the

year under sections 4912, 4955, and 4958 ~ 0 .

d Enter Amount of tax on line 89c, above, reimbursed by the organization ~ 0 .

90a List the slates with which a copy of this return is filed , Connecticut

b Number of employees employed in the pay period that includes March 12, 2003 (See instructions ) 90b 0 91 The books are m care of - Mark E . KovitCh, CFO Telephone number 1, (860)409-7350

Located at' 270 Farminqton Avenue, Suite 220 -_----_---___--_-_ZiP+4- 06032 92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 m lieu of Form 1041- Check here N/A

and enter the amount of tax-exempt interest received or accrued during the tax year ~I 92 I N/A

(6)

~Form 940 (2003) Key- Service Systems, Inc . 06-1259340 Page 6 Part VII Analysis of Income- Producin Activities (see instructions )

Unrelated business income Excluded by section 512, 513, or 514

Note: Enter gross amounts unless _(A) _(B) _(C) _(D) _{Related (o~exempt}

otherwise indicated _{Business code} _Amount _{Exclusion cede} _Amount _{function income}

9s Program service revenue

a Connecticut - DCF 463,397 .

b Connecticut - DMR 7,108,885 .

c Connecticut - DSS 867,181 .

d Third Party Contracts 869,643 .

e

f Medicare/Medicaid payments g Fees & contracts from government agencies 94 Membership dues and assessments

95 Interest on sarongs & temporary cash mvmnts 14 169 .

96 Dividends & interest from securities 97 Net rental income or (loss) from real estate

a debt-financed property b not debt-financed properly 98 Net rental income or (loss) from pers prop 99 Other investment income

100 Gain or (loss) from sales of assets other than inventory

101 Net income or (loss) from special events 1 644 . 102 Gross profit or (loss) from sales of inventory

103 Other revenue a - `

b Change in Acct . Est . 217,849 .

c d e

104 Subtotal (add columns (B), (D), and (E)) 813 . 1 9,526,955 .

105 Total (add line 104, columns (B), (D), and (E)} 111. 9,527,768 .

Note: Line )05 plus line Id, Part l, should equal the amount on line 12, Part I

Part VIII Relationshi p of Activities to the Accomplishment of Exempt Purposes (see instructions

Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes)

Taxable Subsidiar

Part IX I In

instructions (D) Total income

Re

Name, address, and EIN of corporation, Percentage of partnership, or disregarded entity ownership interest

(E) End-of year assets Nature of activates 0 0 0 0 A 0 0

Part X Information Regarding Transfers Associated with Personal Benefit Contracts a Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract

b Did the organization, during the year, pay premiums, directly or ind

Note : If 'Yes' to (b), (ale Form 8870 and Form 4720 see instructions) Under penalties of perlury I declare that I have examined this return including a true correc nd complete Declaration of preparer (other than officer) is based

Please

10. _~

' I'

Sign Signature of officer

Here

_00'

instructions )

n Yes n No

Pall Preparers

Pre-

Signature

pargC S Firms name (or Key S

ervice

Sys

tems

, Inc .

i Se yours d self

V employed) mo-

270 Farmington Avenue, Suite

Only _Z

_I

Pre~ and

Farmin

g

ton, CT 06032 BAA

and Disregarded Entities (C)

(7)

Organization Exempt Under

Section 501(c)(3)

(Except Private Foundation) and Section 501(e), 5010, 501(k), 501(n), or Section 4947(a)(1) Nonexempt Charitable Trust Supplementary Information - (See separate instructions .)

MUST be completed by the above organizations and attached to their Form 990 or 990-EZ.

2003

Department of the Treasury Internal Revenue Service

106-1259340

icers, Directors, and Trustees J Compensation of the Five Highest Paid Employees Other

(See instructions List each one If there are none, enter 'None ') (a) Name and address of each (b) Title and average

employee paid more hours per week

than $50,000 devoted to position

(c) Compensation ~ (d) Contributions

to em to ee benefit I _{plans and deferred}P Y account and other ~e~ Expense allowances compensation

Olive Striffolino Service Dir-KNS

Farming ton, CT 06032 37 .5 74,143 . 1,671 .

Joyce_Lewis _---__---_-- Service Dir-B23

Farmington, CT 06032 37 .5 65,253 . 1,216 .

MaEy!~eth 0'Neill Service Dir-IFS

Farmington, CT 06032 _{37 .5} 58,724 . 4,297 .

Karen Lavariere RN

Farmington, CT 06032 ₄₀ 69,455 . 571 .

Ca m e Howell RN

Farmin gton, CT 06032 40 55,165 . 1,183 .

Total number of other employees paid

over $50,000 W 3

Part II Compensation of the Five Highest Paid Independent Contractors for Professional Services (See instructions List each one (whether individuals or firms) If there are none, enter 'None ')

0 .

(a) Name and address of each independent contractor paid more than $50,000 (b) Type of service (c) Compensation New Boston Exchange _-_-_----

270 Farmington Ave, Farmington, CT 06032

Coloration for Independent Living Real ty-Inc_----_

30 Jordan Lane, Wethersfield, CT 06129 CLA Housing Rental I 187,785 .

Schedule A (Form 990 or 990-EZ) 2003

S bULE A

CHE

(Form 990 or 990-EZ) OMB No 1545 0047

0 .

0 . 0 . 0 . Office Rental I 92,367 .

Total number of others receiving over $50,000 for professional services

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ. TEEA0401L 08/28/03

(8)

Schedule A (Form 990 or 990~EZ) 2003 Key Service Systems, Inc . 06-1259340

Part I11 ,Statements About Activities (See instructions Yes No

- X --X X X X X X X

e Transfer of any part of its income or assets 2e

3a Do you make grants for scholarships, fellowships, student loans, etc (If 'Yes,' attach an

explanation of how you determine that recipients qualify to receive payments ) 3a

b Do you have a section 403(b) annuity plan for your employees 3b

4 Did you maintain any separate account for participating donors where donors have the right to provide advice

on the use or distribution of funds 4

Part IV Reason for Non-Private Foundation Status (See instructions

Provide the following information about the supported organizations (See instructions )

(b) Line number from above (a) Name(s) of supported organization(s)

1 During the year, has the organization attempted to influence national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendums If 'Yes,' enter the total expenses paid

or incurred in connection with the lobbying activities I.- $ 2, 500 . (Must equal amounts on line 38, Part VI-A, or line i of Part VI-B )

Organizations that made an election under section 501(h) by fling Form 5768 must complete Part VI -A Other organizations checking 'Yes,' must complete Part VI-B AND attach a statement giving a detailed description of the

lobbying activities

2 During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any substantial contributors, trustees, directors, officers, creators, key employees, or members of their families, or with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or principal beneficiary (If the answer to any question is 'Yes,' attach a detailed statement explaining the transactions )

a Sale, exchange, or leasing of property I 2a

b Lending of money or other extension of credits I 2b

c Furnishing of goods, services, or faalities7 I 2c

d Payment of compensation (or payment or reimbursement of expenses if more than $1 ,000) 1 2d X

The organization is not a private foundation because it is (Please check only ONE applicable box ) 5 A church, convention of churches, or association of churches Section 170(b)(1)(A)(i) 6 A school Section 170(b)(1)(A)(ii) (Also complete Part V )

7 A hospital or a cooperative hospital service organization Section 170(b)(1)(A)(iii) 8 A Federal, state, or local government or governmental unit Section 170(b)(1)(A)(v)

9 u A medical research organization operated in conjunction with a hospital Section 170(b)(1)(A)(ui) Enter the hospital's name, city, and state

10 1-1 An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 170(b)(1)(A)(iv) _{(Also complete the Support Schedule in Part IV-A )} 11a F]An organization that normally receives a substantial part of its support from a governmental unit or from the general public _{Section 170(b)(1)(A)(vi) (Also complete the Support Schedule in Part IV A )}

11 b ~ A community trust Section 170(b)(1)(A)(vQ (Also complete the Support Schedule in Part IV-A )

12 X~ An organization that normally receives (1) more than 33-113% of its support from contributions, membership fees, and gross receipts from activities related to its charitable, etc, functions - subject to certain exceptions, and (2) no more than 33113% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975 See section 509(a)(2) (Also complete the Support Schedule in Part IV-A )

13 F]An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations _{described in. (1) lines 5 through 12 above, or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2) (See} section 509(a)(3) )

14 n An organization organized and operated to test for public safely Section 509(a)(4) (See instructions )

(9)

Schedule A (Form 990 or 990-EZ) 2003 Key Service Sy stems, Inc . 06-1259340 Page 3 Part IV-A Support Schedule (Complete only if you checked a box on line 10, 11, or 12 ) Use cash method of accounting.

Note: You ma' use the worksheet in the instructions for converting from the accrual to the cash method of accounting

Calendar year (or fiscal year (a) (b) (c) (d) (e)

beginning m) 10. 2002 2001 2000 1999 Total

15 Gifts, grants, and contributions received (Do not include

unusual grants See line 28 ) 8, 372 . 5,849 . 1,000 . 15,221 .

16 Membership fees received 17 Gross receipts from admissions,

merchandise sold or services performed, or furnishing of facilities in any activity

that is related to the organization's

charitable, etc, purpose 8, 883, 069 . 7,894, 198 . 6, 662, 448 . 5, 410, 762 . 28, 850, 477 . 18 Gross income from interest, dividends,

amounts received from payments on securities loans (section 512(a)(5)), rents, royalties, and unrelated business taxable income (less section 511 taxes) from businesses acquired by the organ-

ization after tune 30, 1975 898 . 567 . 1,276 . 1,567 . 4,308 .

19 Net income from unrelated business activities not included in line 18 20 Tax revenues levied for the

organization's benefit and either paid to it or expended on its behalf

21 The value of services or facilities furnished to the organization by a governmental unit without charge Do not include the value of services or facilities generally furnished to the public without charge 22 Other income Attach a

schedule Do not include gain or (loss) from sale of capital assets

23 Total of lines 15 through 22 8, 892, 339 . 7,900, 614 . 6, 664,724 . 5, 412, 329 . 28, 870, 006 .

24 Line 23 minus line 17 9,270 . 6,416 . 1 2,276 . 1 1,567 . 19,529 .

25 Enter 1% of line 23 88,923 . 79, 006 . 66, 647 . 54,123 .

26 Organizations described on lines 10 or 11 : a Enter 2% of amount in column (e), line 24 N/A ~ 26a

b Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental unit or publicly - supported organization) whose total gifts for 1999 through 2002 exceeded the amount shown in line 26a Do not file this list with your --- --- -

return Enter the total of all these excess amounts ~ 26b

c Total support for section 509(a)(1) test Enter line 24, column (e) ~ 26c

d Add Amounts from column (e) for lines 18 19

22 26 b 26d

e Public support (line 26c minus line 26d total) ~ 26e

f Public support percentage (line 26e (numerator) divided by line 26c (denominator)) ~ 26f a 27 Organizations described on line 12:

a For amounts included m lines 15, 16, and 17 that were received from a 'disqualified person,' prepare a list for your records to show the name of, and total amounts received in each year from, each 'disqualified person ' Do not file this list with your return. Enter the sum of such amounts for each year

(2002) 0 . (2001) 0 . (2000) 0 . (1999) 0 .

b For any amount included in line 17 that was received from each person (other than 'disqualified persons'), prepare a list for your records to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000 (Include in the list organizations described in lines 5 through 1 1 , as well as individuals ) Do not file this list with your return . After computing the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these differences (the excess amounts) for each year

(2002) --- 0- (2001)---0- (2000)--- 0- (1999)---0c Add Amounts from column (e) for lines 15 15,221 . 16

17 28,850,477 . 20 21 27c 28, 865, 698 .

d Add Line 27a total 0 . and line 27b total 0 . 27d 0 .

e Public support (line 27c total minus line 27d total) " 27e 28,865,698 .

f Total support for section 509(a)(2) test Enter amount from line 23, column (e) ~ 27f 28,870,006 .

g Public support percentage (line 27e (numerator) divided by line 27f (denominator)) ~ 27 99 .99 $ h Investment income percentage (line 18, column (e) (numerator) divided by line 27f (denominator)) ~I 27hi 0 . 01 0 28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 1999 through 2002, prepare a

list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief description of the nature of the grant Do not file this list with your return . Do not include these grants in line 15

(10)

29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws,

other governing instrument, or in a resolution of its governing body 29

30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, I catalogues, and other written communications with the public dealing wish student admissions . programs, -- -- ---

and scholarships 30

h Other extracurricular activities 33h

If you answered 'Yes' to any of the above, please explain (If you need more space, attach a separate statement ) --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 34a 34b 35 or 990-EZ) 35 Does the organization certify that it has complied with the applicable requirements of

sections 4 01 through 4 05 of Rev Proc 75-50, 1975-2 C B 587, covering racial nondiscrimination If 'No,' attach an explanation

TEEA0404L 08128/03 Schedule A (Form

BAA

Schedule A (Form 990 or 990-EZ) 2003 Key Service Systems, Inc . 06-1259340 Page 4

Part V. ' Private School Questionnaire (see instructions )

(To be completed ONLY by schools that checked the box on line 6 in Pan IV) _N/A

Yes No

31 Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during

the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that - - --

makes the policy known to all parts of the general community it serves 31

If 'Yes,' please describe, if 'No,' please explain (If you need more space, attach a separate statement )

--- --- --- --- 32 Does the organization maintain the following

a Records indicating the racial composition of the student body, faculty, and administrative staffs 32a b Records documenting that scholarships and other financial assistance are awarded on a racially

nondiscriminatory basis 32b

c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing

with student admissions, programs, and scholarships 32c

d Copies of all material used by the organization or on its behalf to solicit contributions? 32d If you answered 'No' to any of the above, please explain (If you need more space, attach a separate statement )

--- 33 Does the organization discriminate by race in any way with respect to

a Students' rights or privileges I 33a

b Admissions policies 1 33

c Employment of faculty or administrative staffs 1 33

d Scholarships or other financial assistance 1 33

e Educational policies L33 e

f Use of facilities? I 33f

g Athletic programs 33

34a Does the organization receive any financial aid or assistance from a governmental agency b Has the organization's right to such aid ever been revoked or suspended

(11)

TEEAO405L 08/28103

Part VI-A Lobbying Expenditures by Electing Public Charities (See instructions {To be completed ONLY by an eligible organization chat filed Form 5768)

Check :- a if the organization belongs to an affiliated group Check ~ b if you checked 'a' and 'limited control' provisions apply

Limits on Lobbying Expenditures 9 Affiliated group _{To be completed}

(The term 'expenditures' means amounts paid or incurred ) totals for ALL electing _{organizations} 36 Total lobbying expenditures to influence public opinion (grassroots lobbying) 36 2,500 .

37 Total lobbying expenditures to influence a legislative body (direct lobbying) 37

38 Total lobbying expenditures (add lines 36 and 37) 38 0 . 2,500 .

39 Other exempt purpose expenditures 39 9, 401, 639 .

40 Total exempt purpose expenditures (add lines 38 and 39) 40 0 . 9, 404, 139 .

41 Lobbying nontaxable amount Enter the amount from the following table - If the amount on line 40 is - The lobbying nontaxable amount is - Not over $500,000 20% of the amount on line 40

Over $500,000 but not aver $1,000,000 $100,000 plus 15% of the excess over $500,000

Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1,000,000 41 620,207 . Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000

Over $17,000,000 $1,000,000 --

42 Grassroots nontaxable amount (enter 25% of line 41) 42 155,052 .

43 Subtract line 42 from line 36 Enter ~0- if line 42 is more than line 36 43 0 . 0 . 44 Subtract line 41 from line 38 Enter -0- if line 41 is more than line 38 44 0 . 0 .

Caution : If there is an amount on either line 43 or line 44, you must file Form 4720 ~ -~ 4 -Year Averaging Period Under Section 501(h)

(Some organizations that made a section 501(h) election do not have to complete all of the five columns below See the instructions for lines 45 through 50 )

Lobbying Expenditures During 4 -Year Averaging Period

Calendar year (a) (b) (c) (d) (e)

(or fiscal year ₂₀₀₃ ₂₀₀₂ ₂₀₀₁ ₂₀₀₀ _Total

beginning m) 45 Lobbying nontaxable

amount 620,207 . 591,522 . 543,064 . 1,754,793 . _

46 Lobbying ceiling amount

(150% of line 45(e)) - 2, 632, 190 .

47 Total lobbying

expenditures 2,500 . 1,959 . 2,000 . 6,459 .

48 Grassroots non-

taxable amount 155,052 . 147,881 . 135, 766 . 438, 699 .

49 Grassroots ceiling amount

(150% of line 48(e)) 658,049 .

50 Grassroots lobbying

expenditures 2,500 . 1 1,959 . 1 2,000 . 1 6, 459 .

Part VI-B - Lobbying Activity by Nonelectinq Public Charities

(For reporting only by organizations that did not complete Part VI-A) (See instructions ) _N/A During the year did the organization attempt to influence national, state or local legislation, including any

attempt to influence public opinion on a legislative matter or referendum, through the use of Yes No Amount a Volunteers

b Paid staff or management (Include compensation in expenses reported on lines c through h.) c Media advertisements

d Mailings to members, legislators, or the public e Publications, or published or broadcast statements f Grants to other organizations for lobbying purposes

g Direct contact with legislators, their staffs, government officials, or a legislative body h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means i Total lobbying expenditures (add lines c through h.)

If 'Yes' to any of the above, also attach a statement giving a detailed description of the lobbying activities

(12)

52a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations

described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527 - n Yes M No

BAA TEEA0406L 09/05/03 Schedule A (Form 990 or 990 EZ) 2003

Part VII Information Regarding Transfers To and Transactions and Relationships With Noncharitable

Exempt Organizations (see instructions)

51 Did the reporting organization directly or indirectly engage in any of the following with any other organization described it section 501 (c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations

a Transfers from the reporting organization to a noncharitable exempt organization of Yes No

(i)Cash 51 a (i) X

a (ii) X (H)Other assets

b Other transactions

(Q Sales or exchanges of assets with a nonchantable exempt organization b (i) X

(ii)Purchases of assets from a noncharitable exempt organization b (ii) X

(iu)Rental of facilities, equipment, or other assets b (iii) X

(iv) Reimbursement arrangements b (iv) X

b (v) X

(v)Loans or loan guarantees

(vi)Performance of services or membership or fundraising solicitations b (vi) X

c Sharing of facilities, equipment, mailing lists, other assets, or paid employees ~ c I ~X d If the answer to any of the above is 'Yes,' complete the following schedule Column (b) should always show the fair market value of

the gnods, other assets, or services given by the reporiin organization If the organization received less than fair market value in an transaction or sharing arrangement, show in column ~d) the value of the goods, other assets, or services received

(a) (b) (c) (d)

Line no Amount involved Name of noncharitable exempt organization Description of transfers, transactions, and sharing arrangements N/

(13)

Key Service Systems, Inc.

Client 9000

06-12593401

Statement 2

Form 990, Part II, Line 43

Other Expenses

41,800 . 2,500 . 22,322 . 167,777 . 749 . 49,127 . 2,366 . 81,134 . 29,966 . 42,133 . 7,705 . 16,740 . 141,039 . 13,749 . 138,477 . 357, 972 . 74,830 . 1,668 . 2,971 . 24,981 . 9,749 . 88,932 . 4,349 . $ 871,061 . $ 451, 975 . $ 0 .

Statement 3

Form 990 , Part III

Organization's Primary Exempt Purpose

Community Living Arrangements (CLA) Division provides two services, CLA and Day programs . CLA which are group homes in suburban settings providing a structured home environment with intensive support for people who have developmental

2003

Federal Statements

Page 1

5/10/05 03 15PM

Statement 1

Form 990, Part I, Line 9

Net Income (Loss) from Special Events

Less Less Net

Gross Contri- Gross Direct Income

Special Events _Receipts butions Revenue Expenses (Loss)

Key Players Event 936 . 0 . 936 . 292 . 644 .

Total $ 936 . $ 0 . $ 936 . $ 292 . $ 644 . (A) Total Ancillary services 44,300 . Family subsidy 22,322 . Food 168,526 .

Help Wanted Advertisements 51,493 .

Household 81,134 .

Insurance 72,099 .

Library and Membership 24,445 .

Motor vehicle operations 154,788 .

Purchased Personnel 496,449 . Recreational activities 76,498 . Respite services 2,971 . Staff Development 34,730 . Utilities 93,281 . Total $ 1323036 .

(B)

(C)

(D)

Program Management

Services & General Fundraising

Key Service Systems, Inc primary exempt purpose is to act as a change agent for people with disabilities, creating opportunities that encourage growth and

meaningful life choices while assisting persons in finding home, health, friends, work, and presence in their communities .

Statement 4

Form 990, Part III, Line a

Statement of Program Service Accomplishments

Program

Grants and

Service

(14)

Grants and Allocations

5,699,746 .

Self-Determination is a program of individually developed support services determined by the individual and the family to achieve optimal integration in the community . These services may be as few as an hour per week or up to a

2003

Federal Statements

Client 9000

Key Service Systems, Inc.

5110105

Statement 4 (continued)

Form 990, Part III, Line a

Statement of Program Service Accomplishments

disabilities or mentally ill . Typically serving three to

six individuals, each home is unique, reflecting the

lifestyles and interests of the people who live there . The goal is for each individual to achieve physical and social integration in the community while maximizing their

potential to lead an independent, productive and meaningful life . This is achieved through development of personal relationships, enhancement of daily living skills and encouragement of each individual to speak for themselves . The CLA's supports 47 individuals at average rate of $313 .71 per person per day .

Day Programs include a variety of community experiences and opportunities such as volunteer work, sports, recreational events, and other activities that allow participants to experience and enjoy adult leisure activities in the

community . For people who require therapeutic services and

support, specialized services and therapies are provided . The Day Programs support 8 individuals at average rate of $77 .71 per person per day .

Individual and Family Support (IFS) Division provides Supported Living, Supported Homes, Self-Determination, and DCF programs . Supported Living is semi-independent

apartment settings providing support tailored to individual

needs in environments that meet personal preferences . The

program's goal is to provide supports that will maximize the individual's independence and ability to make choices

concerning life . Assistance is available in areas such as activities of daily living, scheduling medical appointments and care, locating safe and affordable housing,

transportation, and community inclusion . Apartments are located in the greater Hartford, Waterbury, and New London areas of Connecticut . The Supported Living program supports 23 individuals . The support can range from 24 hours a day to 3 hour a day at rates ranging from $548 .10 to $52 .14 per person per day, respectively .

Supported Homes is a community-based program that operates in a family setting for adults with mental retardation,

providing intensive case management . The individuals served live in a licensed family care home or with their biological family . The program's goal is to help the individual acquire skills and assist them in becoming active in the daily life of the family and community . The host family actively participates in teaching the individual with a disability self care, social and communication skills as well as providing a good home . For these services, the family receives financial reimbursement . Key Service Systems, Inc . supports 4 licensed family settings .

Page 2

06-1259340 03 15PM Program Service Expenses

(15)

Key Nursing Services is a program of comprehensive nursing services specializing in supporting people with

developmental disabilities . Key Nursing Services has

agreements with over 13 similar organizations to provide nursing services for developmental disabled individuals . Our highly skilled, specially trained nurses are available to supervise the direct care employees of agencies that operate residential or vocational programs . An additional service is RN on-call, which provides after hour phone

consultation to the same organizations . 299,871 .

$ 0 . $8,052,242 .

2003

Federal Statements

Page 3

Client 9000

Key Service Systems, Inc .

06-1259340

5/10105 03 15PM

Statement 4 (continued) Form 990, Part III, Line a

Statement of Program Service Accomplishments

Program

Grants and Service

Description Allocations Expenses

twenty-four hour per day support program . An individual may

purchase services in a variety of areas of support such as : staff to assist with Activities of Daily Living (ADL) skills, transportation (handicap and non- handicap accessible), behavioral support, medical, community

activities/integration, locating a job, or finding a place

to live . Individuals interview staff for their own direct

care positions . (The individual receiving the supports chooses people to assist in moving towards complete independence .) The planning with the individual is completely Person Centered and a formal planning tool is used in all team strategizing . The concept of Self

Determination is one in which the individual charts their own destiny and is empowered to choose their own direction . Key Service Systems, Inc . has agreements with 15 individuals to provide Self-Determination services .

DCF Programs are divided into two groups, Youth Transition

and In-Home Support . Youth Transition serves individuals

between the ages of 16 through 21, who reside in

community-based apartments with intensive direct support staff intervention . Services provided include assistance and teaching of ADL skills, maintaining good health, support with education and vocational training . Intense structure is provided during this time of transition to adulthood to enable each individual to reach their maximum potential . Adolescents learn the skills necessary in life to gain their independence and maintain their responsibilities in order to thrive in their adult years . In-Home Support is a

community-based program that provides a family setting to DCF youths to age 21 . The DCF Programs assist 12

individuals . 1,781,819 .

Birth to Three is an early intervention program for children diagnosed with a significant developmental delay that

provides an individual service team of special educators and occupational, speech, and physical therapists that develop and implement a plan of service and support for each child and his or her family . Key Service Systems, Inc provides Birth to Three services to an average of 45 children per

(16)

Key Service Systems, Inc .

Client 9000

06-1259340

5110105 03 15PM

Statement 5

Form 990, Part IV, Line 57

Land, Buildings, and Equipment

Accum . Book

Category Basis Deprec . Value

$ 175, 991 . 49,384 . 51,258 . 1,941,413 . 398,818 . 769, 784 . $ 3,336,648 . $ 459,070 . 135,364 . 211,744 . 2,548,503 . 705, 188 . 769,784 . $ 4,830,053 . $ 1,493,405 .

Statement 7

Form 990, Part IV, Line 64a

Tax-Exempt Bond Liabilities

Purpose of Issue :

Third Party Information : Issue Date :

Original Issue Amount : Bond Retirement Date : Project Completion Date : Outstanding Issue Amount : Mortgage Information :

Mortg . Maturity Date : Interest Rate :

Repayment Terms : Security Provided :

Group Home Mortgage

CT Housing Finance Authority 9/12/2000 421,159 . 10/01/2030 9/12/2000

10/01/2030

6 .63

$3,047 .97 per month Real Estate

Purpose of Issue :

Group Home Mortgage

Third Party Information : CT Housing Finance Authority

Issue Date : 1/01/2003

Original Issue Amount : 370,829 .

Bond Retirement Date : 1101/2033

Project Completion Date : 1/01/2003

Outstanding Issue Amount : 363, 989 .

2003

Federal Statements

Page 4

Automobiles / Transportation Equipment Furniture and Fixtures

Machinery and Equipment Buildings

Improvements Land

Total

Statement 6

Form 990, Part IV, Line 58

Other Assets

Benefical Interest-Keystone Partnership Net Intangible Assets

Security Deposits

283,079 86,380 160,486 607,090 356,370

Purpose of Issue :

Group Home Mortgage

Bond Retirement Date : 10/01/2030

Outstanding Issue Amount :

$ 19,390 . 8, 638 . 13,097 . Total S 41,125 . Balance Due 402,713 .

361, 878 .

(17)

Mortgages Payable Balance Due

Corp . for Independent Living $ 222,386 .

Corp . for Independent Living 171,771 .

Total Mortgages $ 906,671 .

2003 ,

Federal Statements

Page 5

Client 9000 Key Service Systems, Inc. 06-1259340

5/10/05 03 15PM

Statement 7 (continued)

Form 990, Part IV, Line 64a

Tax-Exempt Bond Liabilities

Balance Due Mortgage Information :

Mortg . Maturity Date : 1/01/2033

Interest Rate : 5 .75

Repayment Terms : $2,473 .08 per month

Security Provided : Real Estate

Purpose of Issue : Group Home Mortgage

Project Completion Date : 1/0112003

Outstanding Issue Amount : $ 486,647 .

Mortgage Information :

Purpose of Issue : Group Home Mortgage

Outstanding Issue Amount : 288,767 .

Mortgage Information :

Repayment Terms : $1,962 per month

Total $ 1, 903, 994 .

Statement 8

Form 990, Part IV, Line 64b

(18)

Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due :

68,823 .

2003

Client 9000 5/10/05

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due : Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration : Original Amount : Balance Due : Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due :

Federal Statements

Page 6

Key Service Systems, Inc. 06-1259340

03 15PM

Firstar Equipment Finance 3/01/2001 1/26/2005 $980 .50 per month 12 .15% Vehicle Vehicle Loan Vehicle 37,885 . 6,595 . Ford Motor Credit

1/01/2001 12/28/2004 $929 .32 per month 11 .100 Vehicle Vehicle Loan Vehicle 35,891 . 5,402 . Ford Motor Credit

6/11/2001 6/11/2005 $931 .05 per month 6 .900 Vehicle Vehicle Loan Vehicle 38,956 . 10,765 . Fleet Bank 9/30/2001 9/28/2005 $4,767 .52 per month 5 .73% Equipment Equipment Loan Equipment 203,759 .

(19)

Lender's Name : Ford Motor Credit

Date of Note : 12/31/2002

Maturity Date : 12/31/2005

Repayment Terms : $542 .07 per month

Security Provided : Vehicle

Purpose of Loan : Vehicle Loan

Desc . of Consideration : Vehicle

Original Amount : 17,301 .

Balance Due : _$ _{9,166 .}

2003 ,

Federal Statements

_{Page 7}

Client 9000

Key Service Systems, Inc.

_06-1259340

5i i 0105 _{03 15PM}

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable

Balance Due : _$ _{5,680 .}

Balance Due : _$ _{Z~q2p .}

Lender's Name : Toyota Motor Credit Corp .

(20)

Lender's Name : State of Connecticut

Interest Rate : 6 .00%

Security Provided : Generator, Waterford, CT

Purpose of Loan : Emergency Generator

Desc . of Consideration : Generator

Balance Due : $ 6,480 .

2003 ,

Federal Statements

Page 8

Client 9000 Key Service Systems, Inc. 06-1 259340

5/10/05 03 15PM

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable

Lender's Name : Fleet Bank

Security Provided : Equipment

Purpose of Loan : Equipment Loan

Desc . of Consideration : Equipment

Security Provided : Driveway, Canton, CT

Purpose of Loan : New Driveway

Desc . of Consideration : Driveway

Security Provided : Kitchen, Plainville, CT

Purpose of Loan : New Kitchen

Desc . of Consideration : Kitchen

(21)

Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due : 23,628 .

2003

Client 9000 5/10/05

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due : Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due : Lender's Name : Date of Note : Maturity Date : Repayment Terms : Interest Rate : Security Provided : Purpose of Loan : Desc . of Consideration Original Amount : Balance Due :

Federal Statements

Page 9

Key Service Systems, Inc. 06-1259340

03 15PM State of Connecticut 9/30/2002 10/01/2006 $155 .86 per month 6 .00%

Generator, East Hartford, CT Emergency Generator Generator

6,620 .

4,063 . State of Connecticut 6/01/2003 6/01/2023 $103 .97 per month 6 .00%

Siding, East Hartford, CT Siding a house Siding 14,450 . 14,125 . State of Connecticut 6/01/2003 6/01/2013 $241 .60 per month 6 .00%

Roof & Windows, E . Hartford, CT New Roof & Windows for house Roof & Windows

21,650 .

20,107 . Toyota Motor Credit Corp .

6/06/2009 6/06/2007 $728 .91 per month 6 .750 Vehicle Vehicle Loan Vehicle 23,628 .

(22)

.

11

2003 ,

Federal Statements

Page 10

Client 9000 Key Service Systems, Inc. 06-1259340

5/10105 03 15PM

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable

Lender's Name : Honda Financial Services

Lender's Name : Chrysler Financial

Lender's Name : Honda Financial Services

(23)

Security Provided : Kitchen Floor, Wolcott, CT

Purpose of Loan : Kitchen Floor for House

Desc . of Consideration : Kitchen Floor

Total Other Notes Payable $ 348,404 .

Total 1,255,075 .

2003 ,

Federal Statements

Page 11

Client 9000 Key Service Systems, Inc . 06-?259340

5110105 03 15PM

Statement 8 (continued)

Form 990, Part IV, Line 64b

Mortgages and Other Notes Payable

Other Notes Payable

Lender's Name : Fleet Bank

Repayment Terms : $723 .41

Security Provided : Equipment

Purpose of Loan : Equipment Loan

Desc . of Consideration : Equipment

Security Provided : Generator, Canton, CT

Purpose of Loan : New Generator for House

Desc . of Consideration : Generator

(24)

Key Service Systems, Inc.

$ 292 .

Total $ 292 .

Special Event Expenses

Bob Gaul Secretary & Dir 0 . 0 . 0 .

310 North Second Street 3 hours

Harrisburg, PA 17101

2003 ,

Client 9000

5110105

Statement 9

Form 990, Part IV, Line 65

Other Liabilities

Lines of Credit

Statement 10

Form 990, Part IV-A, Line b(4)

Other Amounts

Special Event Expenses

Statement 11

Form 990, Part IV-B, Line b(4)

Other Amounts

Federal Statements

Page 12

06-1259340

03 15PM $ 93,364 . Total $ 93,364 . $ 292 . Total $ 292 .

Statement 12

Form 990, Part V

List of Officers, Directors, Trustees, and Key Employees

Title and Contri- Expense

Average Hours Compen- bution to Account/

Name and Address Per Week Devoted sation EBP & DC Other

Margarita Diaz Director $ 0 . $ 0 . $ 0 .

270 Farmington Ave, Suite 220 .5 hours

Farmington, CT 06032

Tracy Kralik Chairman 0 . 0 . 0 .

270 Farmington Ave ., Suite 220 .5 hours

Sheri Atinuke Sogunro Director 0 . 0 . 0 .

Dennis W. Felty President & Dir 0 . 0 . 0 .

(25)

2003 ,

Federal Statements

Page 13

Client 9000

Key Service Systems, Inc .

06-1259340

5110/05 03 15PM

Statement 12 (continued)

Form 990, Part V

List of Officers, Directors, Trustees, and Key Employees

Title and Contri- Expense

Average Hours Compen- bution to Account/

Name and Address Per Week Devoted sation EBP & DC Other

Roger W . Burns, CPA Treasurer & Dir $ 0 . $ 0 . $ 0 .

Harrisburg, PA 17101

Lars Guldager, Ph . D . Director 0 . 0 . 0 .

Greg Damato

270 Farmington Ave, Suite 220

Farmington, CT 06032

Charles DeHart

270 Farmington Ave ., Suite 220 Farmington, CT 06032

Mark W . Ratter

Loriann Ferrero

Mark E . Kovitch, CPA

Scott A . Roskosky

Total $ 926,388 . $ 14,124 . $ 0 .

Contrib- Expense

Name and Compen- tion to Account\

Related Organization sation EBP & DC Other

Dennis W . Felty

Keystone Human Services (stmt . 16) $ 224,183 . $ 40,036 . $ 0

Bob Gaul

Keystone Human Services (stmt . 16) 120,642 . 21,441 . 0 .

Roger W . Burns, CPA

Keystone Human Services (stmt . 16) 129,440 . 20,037 . 0 .

=4 Vice President 65,289 . 1,021 . 0 . 37 .5 hours Corp . Counsel 0 . 0 . 0 . .5 hours CEO 119,679 . 899 . 0 . 37 .5 hours Vice President 90,297 . 3,900 . 0 . 37 .5 hours CFO 69,703 . 4,152 . 0 . 37 .5 hours Vice President 81,420 . 4,152 . 0 . 37 .5 hours