See a Social Security Number? Say Something! Report Privacy Problems to https://public.resource.org/privacy Or call the IRS Identity Theft Hotline at 1-800-908-4490 63400 07/12/2006 3 24 PM pm 990 Return of Organization Exempt From Income Tax Under s?ct?lon 501(c). 527, or 494T(a)(1) of the Internal Revenue Code (except black lung benefit trust ort?rivate foundation) Department of the Treasury Internal Revenue Sewice The organization may have to use a copy of is return to satisfy state reporting requuements OMB No 1545-0047 2005 Open to Pubitc Inspection A For the 2005 calendar year, or tax year beginning . and endI_ng Employer Identification no 76-0336160 Check if applicable Heals: Name of organization Address change rife] of Name change print or DAYSTAR RESIDENTIAL INC . '1 Initial return See El Final return Amended return Application pending type. P.O. BOX 307 Number and street (or 0 box if mail is not delivered to street address) Room/sune Telephone number 979?299-3222 Specific Instruc- City or town. state or country. and ZIP 4 bone. LAKE JACKSON TX 7 7 5 6 6 Accounting method Cash El Accrual Other(speCity) WebSIte. . Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable trusts must attach a completed Schedule A (Form 990 or 990-EZ) H(a) Organization type (check only ong 501(c)( Check here if the organization's gross receipts are normally not more than 525.000 The organization need not ?le a return With the IRS. but if the organization chooses to ?le a return. be sure to ?le a complete return Some states require a complete return. 3 {(insen noL or 527 Are all af?liates included? (If attach a list See instr Is this a group return for af?liates?? H(b) If ?Yes." enter number of af?liates H(d) Is this a separate return ?led by an organization covered by a group ruling? I Group Exemption Number Check El if the organization is not reqmred and are not applicable to section 527 organizations Gross receipts Add lines 6b. 8b. 9b. and 10b to line attach (Form 990, 990-EZ, or 990-PF) janl RevenueJ Expenses, and Chajges in Net Assets or Fund Balances (See the instructions. 1 Contributions. gifts. grants, and Similar amounts received a Direct public support 1a Indirect public support 1b 5-3 Government contributions (grants) 1c ?3 Total (add lines 1a through 10) (cash noncash 1d 0 4 2 Program serwce revenue including government fees and contracts (from Part VII. line 93Membership dues and assessments 3 2?35? 4 Interest on savings and temporary cash investments 4 5 Diwdends and interest from securities 5 6B 6a Gross rents 6a :32? Less rental expenses 6b Z: Net rental income or (loss) (subtract line 6b from line 6a) 66 7 Other investment income (describe . 7 8a Gross amount from sales of assets other (A) Securities (BL Other than inventory 8a Less cost or other basis and sales expenses 8b Gain or (loss) (attach schedule) 8c Net gain or (loss) (combine line So. columns (A) and 8d 9 Spec:a events and activmes (attach schedule) If any amount is from gaming. check here a Gross revenue (not including of contributions reported on line 1a) 9a Less direct expenses other than fundraismg expenses 9b Net income or (loss) from speCIal events (subtract line 9b from line 9a) QC 103 Gross sales of inventory. less returns and allowances 10a Less cost of goods sold 10b Gross pro?t or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) 10c 11 Other revenue (from Part VII. line 103Total revenue (add lines 1d.2. 3,4. 5. 6c.7.8d. 9c, 10cProgram serwces (from line 44, column Management and general (from line 44. column Fundraismg (from line 44. column REC EIVED 15 If, 16 Payments to af?liates (attach schedule) 16 17 Total expenses (add lanes 16 and 44. column (Excess or (de?cn) for the year (subtract line 17 from line 12Net assets or fund balances at beginning of year (from line 73. column (All Other changes in net assets or fund balances (attach explanationNet assets or fund balances at end of year (combine lines 18For Privacy Act and Papenivork Reduction Act Notice, see the separate Form 990 (2005) 2? BAYSTAR RESIDENTIAL INC . Page 2 Part II Statement of All organizations must complete column (A) Columns (B). (C). and (D) are requrred for section 501(c)(3) and (4) Functional Expenses organizations and section nonexempt charitable trusts but optional for others (See the Instructions Do not include amounts reported on-line Program (C) Management 6b, 8b, 9b, 10b, or 16 of Part I. semces and genera' 22 Grants and allocations (attach schedule) I (cash 3 22 If this amount includes foreign grants, check here I I 23 Specr?c to indiwduals (attach schedule) 23 24 Bene?ts paid to or for members (attach schedule) 24 .. A .122 25 Compensation of of?cers. directors. etc 25 26 Othersalariesandwages 26 2,745,713 2,560,774 85,939 27 Pensnon plan contributions 27 28 Other employee bene?Payrolltaxes 29 241,214 233,251 7,953 30 Professnonal fundratsung fees 30 31 Accounting fees 8, adv services 31 140, 145 140: 145 32 Legalfees 32 35,537 36,537 33 Supplies 33 30,183 30,183 34 Telephone 34 63,822 20,341 43,481 35 Postage and shipping 35 36 Occupancy 36 37 Equtpment rental and maintenance 37 38 Printing and publications 38 39 Travel 8, automob?e, gas, 01'] 39 118,752 103,931 14,821 40 Conferences, conventions. and meetings 40 41 Interest 41 25,921 25,921 42 Deprecratlon. depletion. etc (attach scheduleOther expenses not covered above (itemize) 3 SEE STATEMENT 1 43a 2,927,649 2,363,915 563,734 43b Total functional expenses. Add lines 22 through 43 (Organizations completing columns carry these totals to lines 13-15) 44 6,361,270 5,474,907 886,363 0 Joint Costs. Check If you are followmg SOP 98-2 Are any Jetnt costs from a combined educational campaign and fundraisrng solicrtatron reported in (B) Program servrces'? Yes No If ?Yes,? enter the aggregate amount of these )omt costs . (it) the amount allocated to Program sennces . We amount allocated to Management and general . and (iv) the amount allocated to Form 990 (2005) DAA 63400 07/12/2006 3 24 PM Form 990 (2005) DAYSTAR RESIDENTIAL INC . Part Statement of Prog?m Service Accomplishments (See the instructions.) Form 990 is available for public Inspection arid. for some people. serves as the primary or sole somce 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 the organization's programs and accomplishments Page 3 What is the organization's primary exempt purpose? SEE STATEMENT 2 All organizations must describe their exempt purpose achievements in a clear and conCIse manner State the number of clients served. publications issued. etc Discuss achievements that are not measurable (Section 501(c)(3) and (4) Program Sewice Expenses (ReqUired for 501(c)(3) 8. (4) orgs . 8. 4947(a)(1) trusts. but optional for organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others others a @ants and allocations lfthis amount includes foreign grants. check here (gems and allocations If this amount includes foreign grants. check here (grants and allocations if this amount includes fareign grants. check here @ants and allocations If this amount includes foreign grants. check here Other program sewices (attach schedule) SEE STMT 3 (grants and allocations If this amount includes foreign grants. check here 5 47 4 9 7 Total of Program Service Expenses (should equal line 44. column (B). Program sewices) 5 4 74 9 07 DAA Form 990 (2005) 63400 07/1 212008 3 24 PM Form 990 (2005) DAYSTAR RESIDENTIAL INC . Page 4 Part IV Balance Sheets (See the instructions.) Note: Where requnred. 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-tnterest-bearing Savmgs and temporary cash Investments 46 47a Accounts receivable 47a 6 3 4 3 12 Less allowance for doubtful accounts 47b 48a Pledges receivable 48a Less allowance for doubtful accounts 48b 48c 49 Grants receivable 49 50 Receivables from of?cers. directors, trustees. and key employees (attach schedule) 50 51a Other notes and loans receivable (attach schedule) 51a Less allowance for doubtful accounts 51b 51c 52 inventories for sale or use 52 53 Prepaid expenses and deferred charges 53 54 Investments-securities Cost [3 FMV w54 55a Investments-land. and equnpment basns 55a Less accumulated deprecnation (attach schedule) 55b 55c 56 Investments-other (attach schedule) 56 57a Land. bUIldings. and equment baSIs 57a 13 1 3 1 9 Less accumulated deprecration (attach schedule) SEE STATEMENT Other assets (describe 5 SEE STATEMENT Total assets (must equal line 74) Add lines 45 through Accounts payable and accrued expenses Grants payable 61 62 Deferred revenue 62 63 Loans from of?cers, directors. trustees. and key employees (attach 3 schedule) 63 64a Tax-exempt bond liabilities (attach schedule) 64a Mortgages and other notes payable (attach schedule) SEE WORKSHEET Other SEE STATEMENT Total liabilities. Add lines 60 through Organlzatlons that follow SFAS 117, check here and complete lines 67 through 69 and lines 73 and 74 67 Unrestricted 67 68 Temporarily restricted 68 69 Permanently restricted 69 '2 Organizations that do not follow SFAS 117. check here and LE complete lines 70 through 74 8 70 Capital stock. trust pnncupal. or current funds 70 12 71 Paid-In or capital surplus, or land. bquIng, and equnpment fund 71 3 72 Retained earnings. endowment, accumulated income, or other funds 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 21Total liabilities and net assetslfund balances. Add lines DAA Form 990 (2005) 63400 07/12/2006 3 24 PM Form 990 (2005) DAYSTAR RESIDENTIAL INC . Page 5 Part Reconciliation of Revenue per Audited Financial Statements With Revenue per Return (See the Instructions.) a Total revenue. gains. and other support per audited ?nancial statements Amounts Included on Me a but not on Part I. line 12 1 Net unrealized gains on Investments b1 2 Donated serwces and use of facnlmes b2 3 Recoveries of prior year grants b3 4 Other (specrfy) SEE STMT Add lines b1 through b4 1 5 7 3 3 Subtract line from line Amounts Included on Part 1. line 12. but not on lune a: 1 investment expenses not Included on Part 1. line 6b d1 2 Other (specnfy) d2 Add lines d1 and d2 Total revenue (Part l. line 12) Add lines and Reconciliation of Expenses per Audited Financial Statements With Expenses per Return a Total expenses and losses per audited ?nancial statements Amounts Included on line a but not Part I, line 17 1 Donated servaces and use of faculties b1 2 Prior year adjustments reported on Part I. line 20 b2 3 Losses reported on Part I, line 20 b3 4 Other (specnfy) SEE STMT Add lines b1 through b4 1 5 7 3 3 Subtract line from line Amounts Included on Part I. line 17, but not on line a: Investment expenses not Included on Part I. line 6b d1 2 Other (specrfy) d2 Add lines d1 and d2 Total expenses (Part I. line 17). Add lines and P311 V-A Current Officers, Directors, Trustees, and Key Employees (List each person who was an of?cer. director. trustee. or key employee at any time during the year even If they were not compensated (See the Instructions to (A) Name and address Txfeingeeg?fggig nag-2337273; a?f??gigr?ggl?er ROBERT ASHLEY 2 0 0 9 LAMAR RICHMOND TX 1 0 0 0 MONETTE GRAFKE VI CE PRES DI DALLAS TX 1 0 0 0 KELLY LACKEY 9 12 OLEANDER LAKE JACKSON DAA Form 990 (2005) 63400 07/12/2006 3 25 PM Form 990 (2005) DAYSTAR RESIDENTIAL INC . Page 6 Part V-A Current Officers, Directors, Trustees. and Key Employees (continued) Yes No 75a Enter the total number of of?cers. directors. and-trustees permitted to vote on organization busmess at board meetings 5 3 Are any of?cers, directors. trustees. or key employees listed in Form 990. Part V-A. or highest compensated employees listed in Schedule A. Part I. or highest compensated professional and other independent contractors listed in Schedule A. Part or related to each other through family or busmess relationships? If "Yes." attach a statement that identi?es the individuals and explains the relationship(s) 75b Do any of?cers. directors. trustees. or key employees listed in Form 990. Part V-A. or highest compensated employees listed in Schedule A. Part I. or highest compensated professmnal and other independent contractors listed in Schedule A. Part II-A or receive compensation from any other organizations. whether i tax exempt or taxable. that are related to this organization through common or common control? 75c Note. Related organizations include section 509(a)(3) supporting organizations If "Yes." attach a statement that identi?es the indiVIduals. explains the relationship between this organization and the other organization(s). and describes the compensation arrangements, including amounts paid to each indiwdual by each related organization Does the organization have a written con?ict of interest policy? 75d Part V-B Former Officers. Directors. Trustees. and Key Employees That Received Compensation or Other Benefits (If any former of?cer. director. trustee. or key employee received compensation or other bene?ts (described below) during the year. list that person below and enter the amount of compensation or other bene?ts in the appropriate column See the instructions (D) Contrib to em toyee (E) Expense (A) Name and address (B) Loans and Advances (C) Compensation benefit plans de erred account and other compensation plans allowances Part VI Other Information (See the instructions.) Yes No 76 Did the organization engage in any actiwty not prewously reported to the If "Yes." attach a detailed description of each activity 76 77 Were any changes made in the organizing or governing documents but not reported to the 77 If "Yes." attach a conformed copy of the changes. 783 Did the organization have unrelated busmess gross income of $1 .000 or more during the year covered by this return? 783 If "Yes." has it ?led a tax return on Form 990-T for this year? 78b 79 Was there a liqUIdation. dissolution. termination. or substantial contraction during the year? If "Yes." attach a statement 79 80a Is the organization related (other than by assomation with a stateWIde or nationWIde organization) through common membership. governing bodies. trustees. of?cers. etc . to any other exempt or nonexempt organization'7 80a If ?Yes." enter the name of the organization and check whether it is exempt or nonexempt 81a Enter direct and indirect political expenditures. (See line 81 instructions 81a Did the organization ?le Form 1120-POL for this year?? . . . 81b DAA Form 990 (2005) 63400 07/19/2006 11 49 AM Form 990 (2005) DAYSTAR RESIDENTIAL INC . Page 7 PartVl Other Information (continuedIto-?man DAA Did the organization receive donated serVIces or the use of materials. eqUIpment. or at no charge or at substantially less than fair rental value? 82a 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 It (See Instructions In Part I 82b I Did the organizatIon comply With the public Inspection reqUIrements for returns and exemption applications? 833 Did the organization comply With the disclosure reqmrements relating to qUId pro quo contributions? 83b Did the organization sohcrt any contributions or gifts that were not tax deductible? 843 If "Yes." did the organization Include With every so ICItatIon an express statement that such contributions or gifts were not tax deductible? A 84b 501(c)(4). (5). or (6) organizations a Were substantially all dues nondeductible by members? 85a Did the organization make only In-house lobbying expenditures of $2.000 or less? 85b 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 Dues, assessments. and Similar amounts from members 85c Section 162(e) lobbying and political expenditures 85d Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices 85o Taxable amount of lobbying and political expenditures (line 85d less 85e) 85f Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? 859 If section 6033(e)(1)(A) dues notices were sent. does the organization agree to add the amount on line 85f to Its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the followmg tax year? 85h 501(c)(7) orgs Enter a Initiation fees and capital contributions Included on line 12 86a Gross receipts. included on line 12. for public use of club faculties 86b 501(c)(12) orgs Enter 3 Gross Income from members or shareholders 87a Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them 87b 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 7701-37 If ?Yes." complete Part Ix as X. 501(c)(3) organizations Enter Amount of tax imposed on the organization during the year under section 4911 0 section 4912 0 . section 4955 0 501(c)(3) and 501(c)(4) orgs Did the organization engage In any section 4958 excess bene?t transaction during the year or did It become aware of an excess bene?t transaction from a prior year? If "Yes." attach a statement explaining each transaction See attachment 10a and 10b 89b Enter Amount of tax imposed on the organization managers or disquali?ed persons during the year sections 4912. 4955. and 4958 Enter Amount of tax on line 89c, above. reimbursed by the organization List the states With which a copy of this return Is ?led NONE Number of employees employed In the pay period that Includes March 12, 2005 (See Instructions I 90b I 8 1 The books are In care of INVESTMENTS INC . Telephone 122 WEST WAY 0 Located at LAKE JACKSONany time during the calendar year. did the organization have an Interest in or 3 Signature or other authority over a ?nanCIal account In a foreign country (such as a bank account. securities account. or other ?nancial Yes No account)? 91b If Yes." enter the name of the foreign country CO See the Instructions for exceptions and ?ling requirements for Form TD 90-22 1. Report of Foreign Bank and FinanCIal Accounts At any time during the calendar year. did the organization maintain an of?ce outSIde of the United States? 91c If "Yes." enter the name of the foreign c0untry Section 4947(a)(1) nonexempt charitable trusts ?ling Form 990 In lieu of Form 1041- Check here and enter the am0unt of tax-exempt Interest received or accrued during the tax year FI 92 I Form 990 (2005) 5333361 (25238313 25 BAYSTAR RES IDENTIAL INC 76-0336160 Part Analysis of Income-Producing Activities (See the instructions.) Page 8 Note: Enter gross amounts unless otherwuse Unrelat ed busmess income Exclude by sec 512, 513. or 514 (E) indicated 93 Program service revenue' (A) Busmess code Ait??lm C) Related or I D) Exc u5ion Amount exempt function code income RESIDENTIAL EDUCATIONAL 5.584, 642 SERVICES MEDICAID REVENUE 125, 810 Medicare/Medicaid payments Fees and contracts from government agenCies 94 Membership dues and assessments 95 Interest on savmgs and temporary cash investments 96 Diwdends and interest from securities 97 Net rental income or (loss) from real estate a debt-?nanced pr0perty not debt-?nanced property 98 Net rental income or (loss) from personal property 99 Other investment Income 100 Gain or (loss) from sales of assets other than inventory 101 Net income or (loss) from speCIaI events 102 Gross pro?t or (loss) from sales of inventory 103 Other revenue: a MISCELLANEOUS INCOME 8,008 104 Subtotal (add columns (8), (D). and 0 5,718,460 105 Total (add line 104. columns (B). (D). and Note: Line 105 plus line 1d. Part I. should equal the amount on line 12LPart I. Part Relationship of Activities to the Accomplishment of Exempt Purposes (See the instructions.) Line No. Explain how each actiwty 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 prowding funds for such purposes) 5,718,460 SEE STATEMENT 9 Peg fX Information Regarding Taxable Subsidiaries and Disregarded Entities (See the instructions.) Name. address. anglAlglN of corporation. Perce?age of Nature ??mtivities Totalggcome End-o?year partnership. or disregarded entity ownership interest assets A ia?x . Information RegardinLTransfers Associated with Personal Benefit Contracts @e the instructions.) (21) Did the organization. during the year, receive any funds. directly or indirectly. to pay premiums on a personal bene?t contract? Yes No Did the organization. during the year. pay premiums. directly or indirectly, on a personal bene?t contract? Yes No Note: If "Yes" to ?le Form 8870 and Form 4720 (see instructions). Under penalties of perjury. I declare that have examined this return. including accompanying schedules and statements. and to the best of my knowledge and belief. is tru . correct. and eclaration of preparer (other than of?cer) is based on alt information of which preparer has any knowledge I) Please 4/01.? 5 Sign Signature of icer Date Here LL 5 KL ray mmer- TMW Type or print name and Preparers SSN or PTIN Paid Preparers Date 'f (See Gen Instr W) I signature Lemployed Preparer - - use only Firm's name (or yours . EIN if self-employed). Phone address. and ZIP 4 . no DAA Form 990 (2005) 63400 07(12/2006 3 25 PM SCHEDULE A (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Sewice Organization Exempt Under Section 501(c)(3) (Except Private Foundation) and Section 501(e), 501(f), 501(k), 501(n), or 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 OMB No 1545-0047 2005 Name Of the organization DAYSTAR RESIDENTIAL INC . Employer Identification number Part I Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees _LSee page 1 of the instructions. List each one. If there are none, enter "None.") (3) Name and address of each employee paid more Title and average hours Contrib to Expense than $50,000 per week devoted to posnion Comp 5236222 acg?gvnta?cggher JAVIER HOUSTON 17915 RIDGETOP DR 77090 4 93,816 0 0 SCOTT CODON ANGLETON PROGRAM DIRECTOR 329 TRAILRIDE 77515 50 70,391 0 0 LARRY PHILLIPS HOUSTON DIRECT CARE 11707 TEANECK 77089 84 60,292 0 0 MARVIN MANNING HOUSTON DIRECT CARE 803 SEACLIFF DR 77062 84 58,750 0 0 ANTONIO BRINKLEY HOUSTON DC - SUPERVISOR 5216 GILSON 77007 97 57,650 0 0 Total number of other employees paid over $50,000 3 Part "-11 Compensation of the Five Highest Paid Independent Contractors for Professional Services JSee page 2 of the instructions. List each one (whether individuals or firms). If there are none, enter "None Name and address of each independent contractor paid more than $50,000 Type of sewice Compensation NONE Total number of others receiving over $50,000 for professmnal services 0 Part Compensation of the Five Highest Paid Independent Contractors for Other Services (List each contractor who performed services other than professional services, whether individuals or firms. If there are none, enter "None." See page 2 of the instructions.) Name and address of each independent contractor paid more than $50,000 Type oI sen/ice Compensation NONE Total number of other contractors receivmg over $50,000 for other serVices For Paperwork Reduction Act Notice. see the Instructions for Form 990 and Form 990-EZ. DAA Schedule A (Form 990 or 990-EZ) 2005 63400 07(12/2006 3 25 PM Schedule A (Form 990 or 990-EZ) 2005 DAYSTAR RESIDENTIAL INC . Page 2 Part Statements About Activities (See page 2 of the instructions.) Yes No 1 During the year, has the organization attempted to in?uence national. state. or local legislation. including any attempt to in?uence public opinion on a legislative matter or referendum? If "Yes." enter the total expenses paid or incurred in connection With the lobbying actiVIties 5 (Must equal amounts on line 38. Part VI-A, or line i of Part VI-B 1 Organizations that made an election under section 501(h) by ?ling Form 5768 must complete Part Other Organizations checking "Yes" must complete Part AND attach a statement giVing a detailed description of the lobbying actwuties 2 During the year. has the organization. either directly or indirectly. engaged in any of the followmg acts With any substantial contributors. trustees. directors. of?cers. creators. key employees. or members of their families. or With any taxable organization With which any such person is affiliated as an of?cer. director. trustee. majority owner. or bene?CIary7 (If the answer to any question is "Yes," attach a detailed statement explaining the transactions a Sale, exchange. or leaSing of property? Za Lending of money or other exten5ion of credit? 2b Furnishing of goods. serVices. or fac?ities?? 2c Payment of compensation (or payment or reimbursement of expenses if more than $1.000)? 2d 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 Do you have a section 403(b) annUIty plan for your employees? 3b During the year. did the organization receive a contribution of quali?ed real property interest under section 3c 4a Did you maintain any separate account for partiupating donors where donors have the right to provude adwce on the use or distribution of funds? 4a Do you prowde credit counseling. debt management. credit repair, or debt negotiation services? 4b Part IV Reason for Non-Private Foundation Status (See pages 3 through 6 of the instructions.) The organization is not a private foundation because it (Please check only ONE applicable box 5 14H DAA A church. convention of churches. or assoaation of churches Section A school Section 170(b)(1)(A)(ii) (Also complete Part A hospital or a cooperative hospital serVIce organization Section A Federal. state. or local government or governmental unit Section A medical research organization operated in With a hospital Section Enter the hospital's name, city, and state An organization operated for the bene?t of a college or univer5ity owned or operated by a governmental unit Section 170(b)(1)(A)(iv) (Also complete the Support Schedule in Part IV-A.) An organization that normally receives a substantial part of its support from a governmental unit or from the general public Section (Also complete the Support Schedule in Part A community trust Section 170(b)(1)(A)(vi) (Also complete the Support Schedule in Part An organization that normally receives 1) more than 33 113% of its support from contributions. membership fees, and gross receipts from actiwties related to its charitable. etc.. functions-subject to certain exceptions. and (2) no more than 33 1l3% of its support from gross investment income and unrelated busmess taxable income (less section 511 tax) from busmesses acqwred by the organization after June 30. 1975 See section 509(a)(2) (Also complete the Support Schedule in Part An organization that is not controlled by any disquali?ed 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) Check the box that describes the type of supporting org?zatlon. Type 1 Type 2 Type 3 Provude the followmg information about the supported organizations (See page 6 of the instructions Line number Name(s) of supported organization(s) from above An organization organized and operated to test for public safety Section 509(a)(4) (See page 6 of the instructions Schedule A (Form 990 or 990-EZ) 2005 63400 07/12/2006 3 25 PM Schedule 990 or 990-52) 2005 DAYSTAR RESIDENTIAL INC . Pag? Part MIA Support Schedule (Complete only if you checked a box on lIne 10. 11. or 12 Use cash method of accounting. Note: You may use the worksheet In the Instructions for convertIng from the accrual to the cash method of accountIn Calendar year (or fIchyear beginning In) 2004 2003 2002 2001 Total 15 GM. grants. and contrIbutIons recered (Do not Include unusual grants See km 28) . . 0 16 Membership tees received 0 17 Gross receIpts from admISSIons. merchandlse sold or servrces performed. or furnIshIng of faCIlItIes in any that Is related to the 710541138 719381887 815491810 7141381095 3019801930 18 Gross Income from Interest. dwidends. amounts recered from payments on loans (section rents, royalties, and unrelated busmess taxable Income (less sectIon 511 taxes) from busmesses achIred by the organIzatIon after June 30. 1975 0 19 Net Income from unrelated busmess not Included In Ime 18 0 20 Tax revenues lewed for the organIzatIon's bene?t and eIther paId to It or expended on its behalf 0 21 The value of serVIces or facalItIes furnIshed to the organIzatIon by a governmental unIt wnhout charge Do not Include the value of servrces or facrlItIes generally furnIshed to the publIc wnhout c?ge 0 22 Other Income Attach a schedule 00 not Include gaIn or (loss) from sale of modal assets 0 23 Totalofhnes151hrough22 '7 054 138 7 938, 887 8, 549, 810 7 438, 095 30, 980 930 24 LIne 23 minus km 17 . 0 25 Enter1%ofllne23 70,541 79,389 85,498 74,381 26 Organizatlons described on lines 10 or 11: a Enter 2% of amount In column Me 24 5 26a 0 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 for 2001 through 2004 exceeded the amount shown In lIne 26a Do not file this list with your return. Enter the total of all these excess amounts 26b 0 Total support for section 509(a)(1) test. Enter line 24. column 5 [26? Add Amounts from column for Mes 18 19 22 26!) 26d PubIIc support ?me 26c mInus IIne 26d total) 26e Public support percentage (llne 26e (numerator) divided by line 26c (denominator)) 26f 2? Organizations described on line 12: a For amounts Included In lInes 15. 16. and 17 that were recered from a "disqualI?ed person." prepare a list for your records to show the name of. and total amounts recered In each year from. each "dIsqualI?ed person Do not file this list with your return. Enter the sum of such amounts for each year (2004) 0 (2003) 0 (2002) 0 (2001) 0 For any amount Included In MM 17 that was recered from each person (other than "dIsqualI?ed persons"). prepare a list for your records to show the name of. and amount recered for each year, that was more than the larger the amount on Me 25 for the year or of (1) (2) $5.000 (Include In the organIzatIons described In lines 5 through 11b. as well as IndIVlduaIS Do not flle this list with your return. After computIng the dIfference between the amount recered and the larger amount described In (1) or (2). enter the sum of these differences (the excess amounts) for each year (2004) 6,344,158 (2003) 7,180,428 (2002) 7,567,960 (2001) 6,563,337 0 Add Amounts from column for ?ms 15 16 17 30,980,930 20 21 27c 30,980,930 Add Lme27atotal andlIneZTbtotal 27, 555, 883 27d 27: 655: 883 PublIc support (line 270 total minus lme 27d totalTotal Support for sectIon 509(a)(2) test Enter amount from lIne 23. column Public support percentage (line 27e (numerator) divided by line 27f (denominatorInvestment Income percentageZUine 18. column (numerator) divided by line 27f (denominator)) 27h 28 Unusual Grants: For an organIzatIon descrIbed In Me 10. 11. or 12 that recered any unusual grants durIng 2001 through 2004. DM 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 of the nature of the grant. Do not file this list with your return. Do not Include these In line 15 Schedule A (Form 990 or 990-EZ) 2005 63400 O7l12/2006 3 25 PM Schedule A (Form 990 or 990-52) 2005 DAYSTAR RESIDENTIAL INC . 7 6 Part Private School Questionnaire (See page 7 of the instructions.) (To be completed ONLY by schools that checked the box on line 6 in Part IV) ?0336160 Page4 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? Does the organization include a statement of its raCIally nondiscriminatory policy toward students in all its brochures. catalogues, and other written communications With the public dealing With student admi55ions. programs. and scholarships? Has the organization its raCIally nondiscriminatory policy through newspaper or broadcast media during the period of solimtation for students. or during the registration period if it has no sohcntation program. in a way that makes the policy known to all parts of the general community it serves? If "Yes." please describe. if please explain (If you need more space, attach a separate statement Does the organization maintain the followmg. Records indicating the meal composmon of the student body. faculty. and administrative staff? Records documenting that scholarships and other ?nanCIal assistance are awarded on a racially nondiscriminatory b35is'7 Copies of all catalogues. brochures. announcements. and other written communications to the public dealing With student programs. and scholarships? Copies of all material used by the organization or on its behalf to what contributions? If you answered "No" to any of the above. please explain (If you need more space. attach a separate statement Does the organization discriminate by race in any way With respect to Students' rights or priwleges7 Admiss10ns Employment of faculty or administrative staff? Scholarships or other ?nanCIal assmtance? Educational poliCIes?7 Use of faculties" Athletic programs? Other extracurricular actiVIties'7 If you answered "Yes" to any of the above. please explain (If you need more space. attach a separate statement Does the organization receive any finanCIal aid or assustance from a governmental agency? Has the organization's right to such aid ever been revoked or suspended? if you answered "Yes" to either 34a or b. please explain usung an attached statement Does the organization certify that it has complied With the applicable reqwrements of sections 4 01 through 4 05 of Rev Proc 75-50. 1975-2 58?. covering racial nondiscrimination? If attach an explanation DAA Schedule A (Form 990 or 990-EZ) 2005 63400 07/12/2006 3 25 PM Schedule A (Form 990 or 990-EZ) 2005 DAYSTAR RESIDENTIAL Lobbying Expenditures by Electing Public Charities (See page 9 of the instructions (To be completed ONLY 0v an eligible organization that filed Form 5768) Check a if the organization belongs to an af?liated group Part INC . 76-0336160 A Check ij if you checked and "limited control" apply: Page 5 Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred Af?liated group totals To be completed for ALL electing organizations Total lobbying expenditures to in?uence public opinion (grassroots lobbying) Total lobbying expenditures to in?uence a legislative body (direct lobbying) Total lobbying expenditures (add lines 36 and 37) Other exempt purpose expenditures Total exempt purpose expenditures (add ltnes 38 and 39) Lobbying nontaxable amount Enter the amount from the followmg table- If the amount on line 40 ls- The nontaxable amount is- Not over $500,000 Over $500,000 but not over $1,000,000 Over $1,000,000 but not over $1,500,000 20% of the amount on line 40 $100,000 plus 15% of the excess Over $500,000 5175.000 plus 10% of the excess over $1,000,000 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 Grassroots nontaxable amount (enter 25% of line 41) Subtract line 42 from line 36 Enter -0- if line 42 is more than line 36 Subtract line 41 from line 38 Enter -0- if line 41 is more than line 38 Caution: If there is an amount on either line 43 or line 44, you must ?le 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 ?ve columns below See the instructions for lines 45 through 50 on pagg 11 of the instructions Lobbying Expenditures During 4-Year Averaging Period Calendar year (or fiscal year In) 2005 2004 (C) 2003 2002 (at Total 45 Lobbyinmontaxable amount 46 Lobbying ceiling amount (150% of line 45(e)) 47 Total lobbying expenditures 48 Grassroots nontaxable amount 49 Grassroots ceiling amount (150% of line 48(e)) 50 Grassroots lobbying expenditures Part VliB Lobbying Activity by Nonelecting Public Charities (For reporting only_by organizations that did not complete Part (See page 11 of the instructions.) A During the year. did the organization attempt to influence national, state or local legislation, including any attempt to in?uence public opinion on a legislative matter or referendum, through the use of DAA Volunteers Paid staff or management (Include compensation in expenses reported on lines through Media advertisements Mailings to members, legislators, or the public Publications, or published or broadcast statements Grants to other organizations for lobbying purposes Direct contact legislators, their staffs, government of?Cials, or a legislative body Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means Total lobbying expenditures (Add lines through If "Yes" to any of the above, also attach a statement giVinga detailed description of the lobbying actIVIties Yes No Amount Schedule A (Form 990 or 990-EZ) 2005 63400 07/1212006 3 25 PM Schedule A (Form 990 or 99052) 2005 DAYSTAR RESIDENTIAL INC . Page 6 Part VII Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exemgt Organizations (See page 12 of the instructior? 51 Did the reporting organization directly or indirectly engage in any of the following With any other organization described in 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 (1) Cash 51am (ii) Other assets a(ii) Other transactions. Sales or exchanges of assets With a noncharitable exempt organization b(l) (ii) Purchases of assets from a noncharitable exempt organization b(ii) Rental of faculties. eqmpment, or other assets (iv) Reimbursement arrangements mm Loans or loan guarantees (vi) Performance of services or membership or fundraismg soIICitations b(w) Sharing of eqUipment. mailing lists. other assets, or paid employees 6 If the answer to any of the above is "Yes." complete the followmg schedule Column should always show the fair market value of the goods. other assets. or sewices given by the reporting organization If the organization received less than fair market value in any transaction or show in column the value of the other assets or sewices received (C) Line no Amount involved Name of noncharitable exempt organization Description of transfers. transactions. and sharing arrangements A 52a Is the organization directly or indirectly af?liated 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'? Yes IE No lf"Yes the schedule' (6) Name of organization Type of organization Description of relationship A DAA Schedule A (Form 990 or 990-EZ) 2005 63400 07l12/2006 3 25 PM Forms Mortgages and Other Notes Payable 990 I 990-PF 2005 For calendar year 2005. or tax year and ending Name Employer Identi?catlon Number DAYSTAR RESIDENTIAL, INC. 76-0336160 FORM 990 PART IV. LINE 64B ADDITIONAL INFORMATION Name of lender Relationship to disquali?ed person UNION PLANTERS BANK A REGIONS BANK A Onglnal amount Maturity Interest borrowed Date of loan date Repayment terms rate (1) 350,000 5/28/04 5/28/05 INT PAID 6.250 a) 350,000 5/28/05 5/01/06 INT PAID 8.250 (Security provrded by borrower Purpose of loan (1) ACCOUNTS RECEIVABLES EXTENSION OF CREDIT Q) ACCOUNTS RECEIVABLE EXTENSION OF CREDIT O) (M O) (N w) G) Balance due at Balance due at ConSIderatIon furnished by lender beginning of year end of year 300 000 350 000 300 000 350 000 63400 DAYSTAR RESIDENTIAL, INC. 76-0336160 Federal Statements FYE: 12/31/2005 7/12/2006 3:24 PM Statement 1 - Form 990. Part II. Line 43 - Other Functional Expenses Total Program Fund- Description Expenses Service General Raising EXPENSES CONTRACTED SERVICES PROFESSIONAL MEDICAL 377,826 264,919 112,907 DIRECT CARE 723,082 723,082 ADMIN, CLERICAL MAINT 368,169 368,169 MEDICAL EXPENSE 56,192 56,192 FOOD 417,494 417,494 SUPPLIES 34,222 34,222 CLOTHES 15,544 15,544 STAFF DEVELOPMENT 5,508 5,508 CLIENT EXPENSE ENTERTAINMEN 15,895 15,895 RENT EXPENSE 523,927 506,548 17,379 MAINTENANCE REPAIRS 138,917 128,994 9,923 UTILITIES 86,494 71,036 15,458 LICENSES AND FEES 1,485 1,485 OTHER INSURANCE 413 413 OTHER EXPENSES 6,397 6,397 OFFICE EXPENSES 26,812 26,812 INSURANCE 34,655 32,548 2,107 MEMBERSHIP DUES 1,746 1,746 MEALS ENTERTAINMENT 1,976 1,976 ADP PROCESSING FEE 14,276 13,829 447 PERSONAL CARE SUPPLIES 25,895 25,895 HOUSEKEEPING SUPPLIES 50,724 50,724 TOTAL 2,927,649 2,363,915 563,734 63400 DAYSTAR RESIDENTIAL, INC. 7/12/2006 3:24 PM 76-0336160 Federal Statements FYE: 12/31/2005 Statement 2 - Form 990. Part - Organization's Primary Exempt Purpose TO PROVIDE EDUCATIONAL AND RESIDENTIAL SERVICES TO PHYSICALLY AND MENTALLY HANDICAPPED INDIVIDUALS. Statement 3 - Form 990. Part Line - Other Program Services Description THE ORGANIZATION WAS ABLE TO PROVIDE RESIDENTIAL AND EDUCATIONAL SERVICES, BEHAVIORAL, AND SPEECH THERAPY DEPENDING ON INDIVIDUAL NEEDS TO 100-200 MENTALLY AND EMOTIONALLY HANDICAPPED PERSONS. 2-3 63400 DAYSTAR RESIDENTIAL, INC. 7/12/2006 3:24 PM 76-0336160 Federal Statements FYE: 12/31/2005 Statement 4 - Form 990, Part IV, Line 57 - LandI Buildings, and Eguigment Desc?ption Beginning Accum End of Accum of Year Deprec Year Deprec 13,319 13,131 13,319 13,294 TOTAL 13,319 13,131 5 13,319 13,294 Statement 5 - Form 990, Part IV, Line 58 - Other Assets Beginning End of Desc?p?on onear Year ACCTS REC ALVIN ISD ACCTS REC - RELATED COMPANIES ACCTS REC - EMPLOYEES 1,557 376 ACCTS REC - OTHER 319,598 TOTAL 321,155 376 Statement 6 - Form 990. Part IV, Line 65 - Other Liabilities Beginning End of Description of Year Year ACCTS PAYABLE RELATED ACCTS PAYABLE - OTHER 525,004 681,556 TOTAL 525,004 681,556 4-6 63400 DAYSTAR RESIDENTIAL, INC. 7/12/2006 3:24 PM res-0336160 Federal Statements FYE: 12/31/2005 Statement 7 - Form 990, Part - Other Revenue Included on Financial Statements Description Amount NETTED EXPENSE REIMBURSEMENT INCOME AGAINST THE RELATED 15,733 EXPENSE TOTAL 15,73 3 Statement 8 - Form 990, Part - Other Exgenses Included on Financial Statements Description Amount NETTED EXPENSE REIMBURSEMENT INCOME AGAINST THE RELATED 15,733 EXPENSE TOTAL 5 7 3 3 7-8 63400 DAYSTAR RESIDENTIAL, INC. 7/12/2006 3:24 PM 76-0336160 Federal Statements FYE: 12/31/2005 Statement 9 - Form 990, Part - Relationship of Activities Line No. Description 93A THE EDUCATIONAL AND RESIDENTIAL SERVICES ARE ESSENTIAL TO THE BEHAVIORAL AND EMOTIONAL DEVELOPMENT OF THE PHYSICALLY AND MENTALLY HANDICAPPED INDIVIDUALS SO THEY MAY BE ABLE TO FUNCTION MORE INDEPENDENTLY AND DEAL WITH THEIR HANDICAPPING CONDITIONS 93C THE EDUCATIONAL AND RESIDENTIAL SERVICES ARE ESSENTIAL TO THE BEHAVIORAL AND EMOTIONAL DEVELOPMENT OF THE PHYSICALLY AND MENTALLY HANDICAPPED INDIVIDUALS SO THEY MAY BE ABLE TO FUNCTION MORE INDEPENDENTLY AND DEAL WITH THEIR HANDICAPPING CONDITIONS