ACI Annual Report Fiscal Year 2011 Table of Contents CEO/Assistant Director‘s Letter ............................................ 3 The Organization Mission Statement, Vision and Core Values........................... 4 About Us ................................................................................ 5 Organizational Chart .............................................................. 6 The Year in Review Benefit to the State ................................................................ 7 Source of Business ............................................................... 8 ACI Business Operations ...................................................... 8 Labor Contracts Owned & Operated Pioneer Institute, Better Government Award ......................... 8 ACI Business Operations, continued ..................................... 9 Financial Performance Summary .......................................... 10 Inmate Wages & Deductions ................................................. 11 Quality Program .................................................................... 12 Recognition Awards .............................................................. 13 The Financial Report ACI Financial Statements ...................................................... 14-17 In Closing Contacts ................................................................................ 18 Testimonials .......................................................................... 19 This page intentionally left blank Annual Report FY 2011 Page 2 of 19 ARIZONA CORRECTIONAL INDUSTRIES A n n u a l R e p o r t – F Y 2 0 1 1 Dear Director Ryan: In the past two annual reports, we reflected on the continuing impact of the recession and difficulties that many businesses face in a weak economy that is slow to recover. Despite these challenges, I am pleased to report that fiscal year 2011 was another year of solid accomplishments with record revenue and strong earnings. ACI‘s sales increased by 3.1% to $34,137,476 and net income was $2,840,576. We continue to strive to keep inmates employed while providing them the opportunity to gain marketable job skills. In FY 2011, inmates worked a grand total of 3,508,321 hours. A total of 2,041 inmates were employed full or part-time at Fiscal Year End, which represents a 21% improvement over FY 2010. Inmate deductions totaled $2,607,111 which includes room and board, family support, court ordered restitution, and victim‘s compensation. During the past fiscal year ACI continued to focus on quality improvement. In April 2011, six senior managers earned a Purdue University Lean Six-Sigma Green Belt Certification. As we carry the tools learned back to the operating units, quality will continue to be the foundation for future growth at ACI. Once again the Arizona State University WP Carey School of Business, Seidman Research Institute study, estimated the economic impact of ACI to the State of Arizona. This year the economic impact to the state was $197,441,000, and resulted in the creation of 2,093 jobs in the private sector. During a time when unemployment hovers around 9%, adding jobs to the State of Arizona is a major accomplishment. ACI‘s staff has grown to 142 full-time, and 3 part-time employees. Included in this number are 71 Industry Program Specialists (IPS) that support the Arizona Department of Corrections in maintaining the high security and safety standards that ADC requires. ACI fully covers the costs of security for work programs, which also reduces the number of Correctional Officers paid for by ADC. In closing, we sincerely appreciate your leadership and support as ACI staff endeavor to achieve the Arizona Department of Corrections (ADC) mission. Sincerely, William Branson CEO/Assistant Director Annual Report FY 2011 Page 3 of 19 Mission Statement To create opportunities for inmates to develop marketable job skills, civility and good work habits through successful enterprises that produce quality products and services for our customers. 5 Year Vision $50m in Revenue $4m Net Income 4,000 Inmate Jobs Core Values Who We Are:  We are a unique self-funded business within the Arizona Department of Corrections.  We are Honest, Hardworking, and Dependable.  We have the Highest Ethical Standards and we always seek to do the right thing.  We enjoy our work and celebrate our achievements. What We Do:  We employ inmates so they can learn and be productive.  We provide a safe and secure environment for all of our workers.  We strive to constantly improve.  We are accountable for our actions, our team.  We make a difference EVERY DAY. How We Do It:  We provide a positive learning experience for all of our workers.  We balance our home and business life.  Our quality is the best – if we find out it‘s not, we fix it. If someone does it better, we learn from their ideas.  Everyone is passionately involved in making the customer happy. Annual Report FY 2011 Page 4 of 19 About Us History The utilization of inmate work crews is recorded as far back as 1908 when inmate labor was utilized to build the Florence Prison. Arizona Correctional Industries was created by the Arizona Legislature in 1969, operating under the acronym "ARCOR" (Arizona Correctional) until 1987, and received appropriated funds to support its operations. In 1987, ARCOR was renamed Arizona Correctional Industries (ACI). Four years later, in 1991, the funding was discontinued and ACI‘s business enterprise became a financially self-sufficient division of the Arizona Department of Corrections (ADC); operating entirely without taxpayer funding. ACI Today There are several critical areas that contribute to our growth and profitability: safety, social responsibility, inmate training, quality products and services, and strong financial performance, as well as the positive impact on the State of Arizona‘s economy. In FY 2011, ACI managed 15 Owned & Operated shops (including bakery, metal fabrication, printing, signage, furniture, etc), and 21 Private Sector Partnerships (providing services for industries for agriculture, in-bound call centers, etc.); inmates provided more than 3.5 million man-hours to these inmate work programs. ACI continues to seek opportunities through Owned & Operated businesses and Private Sector Partnerships to provide labor and services to fill a void not being met by free-world labor or as an alternative to outsourcing the labor to foreign countries. Annual Report FY 2011 Page 5 of 19 The Organizational Chart Asst Director CEO General Manager CFO VP, East Region Accounting Sr. VP Operations VP, Central Region VP, West Region Quality & Training VP, Labor Contracts (2) Purchasing Douglas Sewing AgriBusiness Farm Perryville Sewing Information Technology Bakery License Plates Florence Sewing Material Management Sign Shop Transportation Small Business Center Mattress Industrial Yard Installation ADC Sales & Retail Perryville Graphic Arts Customer Service Commodity Products Wood Metal Refurb Metal Fabrication Annual Report FY 2011 Page 6 of 19 Private Sector Labor Contracts VP, Sales Sales Benefit to the State Economy The constructive use of inmate time and labor has a direct and positive impact on the State of Arizona budget. The employment of state workers through ACI‘s program, as well as the employment of inmates, contributes to our communities. Inmate wage deductions go to the state general fund, victim and court restitution, and family support. As the State of Arizona faces budget challenges and high unemployment rates, ACI provides a steady source of revenue and new job opportunities for Arizona businesses. These contributions come from two areas: actual raw materials and services that ACI purchases from Arizona businesses and consumer expenditures generated as a result of ACI related employment. According to the Arizona State University, WP Carey School of Business, Seidman Research Institute, the financial contribution ACI made to the State‘s economy in FY 2011 was $197,441,000. More significant is the creation of an estimated 2,093 jobs for the State of Arizona. The real impact of the Correctional Industries Partnership with the Private Sector is difficult to estimate due to the lack of public information on privately held companies; therefore, the estimates by the WP Carey School of Business are made utilizing available data. Additionally, reports indicate that Correctional Industry programs such as ACI, have the greatest impact on reducing recidivism. The Arizona Prosecuting Attorneys‘ Advisory Council report titled: PRISONERS IN ARIZONA, A Profile of the Inmate Population, March 2010, authored by Dr. Daryl Fischer states: ―Among the programs evaluated, Arizona Correctional Industries (ACI) proved to be the most effective reducing recidivism by 31.6%.‖ Over time, the impact of reducing recidivism is substantial when considering the average cost of housing an inmate is $60.73* per day. With a median sentence of 2.5 years the average cost savings could be as much as $55,428 per inmate. One of ACI‘s longest existing private sector labor programs, Televerde, began in 1995 with 5 female inmates. This program has expanded to four locations and currently employs 198 female inmates at the Perryville Prison in Goodyear, Arizona. Televerde offers a program called TOPS, Televerde Out-Placement Services, for the inmates that work in their call centers. Utilizing volunteers, TOPS is a program that is designed to facilitate a holistic approach to reintegration with a focus on professional employment and a reduction in recidivism. It helps them prepare resumes, learn job interviewing skills, how to dress professionally, and how to access other useful resources to assist them upon release. “We believe that skills and education are the great equalizers and that no matter where a person started, with a thirst for knowledge and higher education, they can climb higher. To that end, we train, educate and employ a group of disenfranchised women who have a genuine desire to change the course of their lives for the better.” Jim Hooker CEO, Televerde Since the program began, 1,075 female inmates have worked inside the Prison for Televerde; 898 have been released from prison and of those 83.5% have not returned. Because of the intensive training and work experience the females gain while incarcerated, Televerde has transitioned 109 ex-offenders to a wide variety of job classifications at their corporate office. In addition, Televerde Endowment for New Scholars (TENS) offers scholarship opportunities for female ex-offenders to achieve life goals through higher education. Partnerships, like Televerde, helps reduce the cost of incarceration and also benefits Arizona by providing new skilled workers paying taxes and contributing to the economy. * ADC Planning, Budget and Research Annual Report FY 2011 Page 7 of 19 Source of Business ACI has two revenue sources: Labor Contracts and Owned and Operated businesses. Labor Contracts accounted for 49.0% of ACI‘s Total Revenue, and 67.5% of ACI‘s Net Income. Equally important, the Labor Contracts resulted in 63.8% of the Total Inmate Hours worked. The second source of revenue is ACI‘s Owned and Operated businesses. Owned and Operated was 51.0% of Total Revenue, and 32.5% of ACI‘s Net Income. The Inmate Hours worked for the Owned and Operated businesses was 36.2% of the Total Hours worked. Additionally, ACI tracks sales by type of customer. The seven key categories are: the Department of Corrections, Arizona State Agencies, Canteen, Municipalities, Education (Schools, Colleges, and Universities), Labor Contracts, and General/Miscellaneous (private sector, not Labor Contracts). The chart below shows the sector percentage of sales for the last fiscal year. ACI Runner-up for the Pioneer Institute, Better Government Competition The Better Government Competition (BGC) seeks out and rewards the most innovative public policy ideas from government, the private sector, and individuals. Developed in 1991, the Pioneer MISC 8% Fiscal Year 2011 Source of Business ADC 12% Institute Competition provides a public forum for the very best in CANTEEN 14% citizen ‗know-how‘. The Competition identifies promising new ideas as LABOR CONTRACTS 50% AZ STATE AGENCIES 14% EDUCATION 1% MUNICIPALITIES 1% well as tested reforms that improve state and local government. This year marks the 20th annual competition focused on state and ACI Business Operations local "budget busters" — those The ACI Labor Contract Division (LCD) manages 21 Private Sector Contracts, one (1) Prison Industry Enhancement Certification Program (PIECP) that permits interstate commerce, and one (1) Inter-Government Agreement (IGA). The IGA program is with the Arizona Motor Vehicle Department where ACI inmates staff ―level one‖ call centers for MVD to assist with general information calls. Other partnerships include semi-truck and trailer refurbishing, agricultural, business to business call centers, trailer manufacturing, modular building construction, auto detailing, and food processing. Prison labor is well-suited for high volume, repetitive work that requires an understanding of current quality processes and high levels of customer service. The majority of the jobs with the private sector partners are jobs that are typically outsourced to foreign countries. Annual Report FY 2011 Page 8 of 19 programs that unsustainably and are in growing need of dramatic change. With more than 200 applicants, ACI was honored to be recognized as one of four runners-up. have an Arizona As a runner up, we opportunity Correctional to share Industries Partnering with the Private Sector program, as well as receive a $1000 award. ACI Business Operations, continued The Owned and Operated shops consist of 12 different business operations that ACI manages throughout the entire product lifecycle. This includes design, manufacturing, marketing and sales, delivery and set-up. ACI offers a wide variety of products, from the well-known license plate manufacturing, to baked goods, inmate clothing, mattresses and bedding supplies. ACI also partners with James Edwards Furniture and Dauphin Seating to provide quality office furniture. Citizens bring old furniture and heirlooms to ACI for refurbishing and reupholstery, and ACI‘s print shop employs 36 inmates from the Perryville complex – the largest female operated print shop in the state. ACI‘s farm covers nearly 900 acres producing primarily alfalfa for local dairy‘s and the outlying community. The metal fabrication shop is an example of a high quality operation that practices lean six-sigma principles. Inmate Hours Year FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 10 Year Totals Owned and Operated 1,248,528 1,254,699 1,168,490 1,172,375 1,192,268 1,225,345 1,079,624 1,194,080 1,116,874 1,270,606 11,922,890 Labor Contracts 1,097,889 1,146,920 1,378,807 1,655,446 1,958,735 1,786,868 2,133,452 2,146,895 2,079,732 2,237,715 17,622,459 Total 2,346,417 2,401,619 2,547,297 2,827,821 3,151,003 3,012,213 3,213,076 3,340,975 3,196,606 3,508,321 29,545,349 “We take on a burden when we put a man behind walls, and that burden is to give him a chance to change. If we deny him that, we deny his status as a human being, and to deny that is to diminish our own humanity and plant the seeds of future anguish for ourselves.” Former Chief Justice Warren E. Burger U.S. Supreme Court Annual Report FY 2011 Page 9 of 19 Financial Performance Summary Sales and Gross Profit Overview $39,500,000 Sales Gross Profit Dollars $31,750,000 $24,000,000 $16,250,000 $8,500,000 $750,000 Sales and Gross Profit - Labor Contracts Dollars $20,500,000 Sales Gross Profit $15,500,000 $10,500,000 $5,500,000 $500,000 Sales and Gross Profit - Owned and Operated Dollars $24,500,000 Sales Gross Profit $18,500,000 $12,500,000 $6,500,000 $500,000 Funds Transferred and Net Income Dollars $5,850,000 Funds Transferred $4,350,000 $2,850,000 $1,350,000 $(150,000) Annual Report FY 2011 Page 10 of 19 Net Income Inmate Wages and Deductions In fiscal year 2011 inmates earned $8,899,767 in wages. The chart below shows the total wages paid to ACI inmates over the last ten fiscal years; a noteworthy $62 million. Inmate Wages Earned $9,000,000 Dollars $7,000,000 $5,000,000 $3,000,000 $1,000,000 Inmate wages offset the tax burden of room and board and contribute to the General Fund. In Fiscal Year 2011, inmate deductions to the General Fund were more than 2.4 million dollars. Over the past ten fiscal years, the General Fund has received $16.7 million through inmate deductions. Below, the chart reflects contributions to the General Fund for Room and Board. Inmate Room and Board Deductions $2,750,000 Dollars $2,250,000 $1,750,000 $1,250,000 $750,000 $250,000 During the current fiscal year other inmate deductions supported the Victim‘s Compensation Fund ($16,384), Dependent Support ($57,091), Court Ordered Restitution ($99,864), Alcohol Abuse and Treatment Fund ($69,390), Transition Fee ($375,076), Miscellaneous Deductions such as disciplinary restitution ($38,607), as well as inmates paying Arizona State and Federal Income Tax for PIECP Programs ($18,673). Additionally, qualified deductions go to the inmate‘s personal retention fund; a fund made available to the inmate for emergency situations while incarcerated and given to them in its entirety upon release as a foundation for their future. This is in addition to any personal savings that the inmate earned. Annual Report FY 2011 Page 11 of 19 ACI Quality Program Arizona Correctional Industries, an Arizona Quality Alliance Showcase Winner for Quality Programs, continues to make great strides in maintaining a quality program that meets industry standards while persistently seeking opportunities to improve, expand and aggressively achieve exceptional quality objectives as a correctional industry. ACI‘s Quality Program tracks several quality factors, such as Customer Satisfaction, Product Inspection, Product Rework, Returned Material Authorizations (RMA‘s), Daily Open and On-Time Reports and Manufacturing Performance Data. The information collected is instrumental in gauging successes, identifying trends and driving opportunities for continuous process improvements. Exceeding our customer‘s expectations through quality services and products is an essential part of our success. The 2011 Fiscal Year Customer Satisfaction Results reflect an overall approval rate of 99.53% and an average weighted rating of 9.38 (scale of 1 to 10; 10 being the best): FY 2011 Customer Satisfaction Trends Approval Scores 100% Approval Weighted Rating 75% 50% 25% 0% 10 8 6 4 2 0 Monthly customer surveys resulted in an overall approval rate of 99.53%. The average weighted rating was 9.38 for customer satisfaction on a scale of 1 to 10 (10 being the best). As a member of the Arizona Quality Alliance (AQA), ACI applied and was approved for participation in a mentorship program with the Intel Corporation that began in January 2010 and concluded in January 2011. The Intel Corporate Quality group‘s ―Skills-based Volunteering‖ Program comprised of Intel Quality employees were matched with our organization based upon their experience, skill sets, and certifications. These volunteers provided mentoring and assisted with training in quality skills and accomplishment of quality objectives. The Intel/AQA Mentoring Project focused on improving ACI‘s Requests for Costs of Manufacture (RCOM) by reducing the time required to provide quotes for non-standard products and reduce processing time for Returned Material Authorizations (RMA). Additionally, Intel provided training that helped ACI build upon and add to our Quality Toolbox. To compliment and add to our education on Quality, six executive team members: Dale Beatty, CFO; Glen Davis, Sr. VP, Operations; William Foster, VP, Central Region; Gregg Hillebrand, VP, Western Region; Alan Wesley, VP, Eastern Region; and Alexandra Benlein, Quality & Training Manager received certification from Purdue University for their Lean Six Sigma Green Belts. Projects have been initiated and we are excited to see the results of applying these principles throughout our organization. Annual Report FY 2011 Page 12 of 19 Fiscal Year 2011 ACI Recognition Awards Employee of the Year Michael Moreno Top Quality Performer Central Region Annual Report FY 2011 Page 13 of 19 DEPARTMENT OF CORRECTIONS ARIZONA CORRECTIONAL INDUSTRIES FINANCIAL STATEMENTS (unaudited) Year Ended June 30, 2011 Annual Report FY 2011 Page 14 of 19 Financial Statements, Year Ended June 30, 2011 (unaudited) STATEMENT ON NET ASSETS - ENTERPRISE FUND 2011 Assets Current Assets Noncurrent Assets Total Assets $ Liabilities Current Liabilities Long Term Liabilities Invested in Capital Assets (Net of Related Debt) Unrestricted Total Net Assets $ 10,957,011 3,207,710 14,164,721 2010 $ 9,631,187 3,365,607 12,996,794 1,508,894 19,866 2,743,069 130,041 3,077,822 9,558,127 12,635,949 3,137,159 6,986,514 10,123,673 $ STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET 2011 Sales Cost of Goods Sold Gross Profit $ Operating Expenses Selling General and Administrative Total Operating Expenses Operating Income 34,137,476 27,443,813 6,693,663 2010 $ 33,098,919 26,142,277 6,956,642 852,658 2,981,598 3,834,256 2,859,407 805,452 2,691,912 3,497,364 3,459,278 8,744 (3,199) (24,376) (18,831) 29,526 (1,617) (37,067) (9,158) 2,840,576 3,450,120 Transfers out to other state funds (328,300) (5,555,556) Increase (decrease) in net assets 2,512,276 (2,105,436) 10,123,673 12,229,109 Nonoperating Revenue (Expenses) Investment Income Net Gain (Loss) on Disposal of Equipment Interest Expense Net Nonoperating Revenues (Expenses) Net Income Total net assets, July 1 Total net assets, June 30 $ Annual Report FY 2011 Page 15 of 19 12,635,949 $ 10,123,673 STATEMENT OF CASH FLOWS - ENTERPRISE FUND 2011 Net cash used for operating activities Net cash provided (used) for noncapital financing activities Net cash provided (used) for capital and related financing activities Net cash provided (used) by investing activities $ 2,389,483 (328,300) 2010 $ 2,005,937 (5,555,556) (480,563) 8,744 (488,646) 29,526 Net increase (decrease) in cash and cash equivalents 1,589,364 (4,008,740) Cash and cash equivalents, July 1 1,774,596 5,783,336 Cash and cash equivalents, June 30 $ 3,363,960 $ 1,774,596 RECONCILATION OF OPERATING INCOME TO NET CASH PROVIDIED (USED) FOR OPERATING ACTIVITES 2011 Operating income $ Adjustment to reconcile operating income to net cash provided (used) for operating activities Depreciation Net changes in assets and liabilities Net cash provided (used) for operating activities Annual Report FY 2011 Page 16 of 19 $ 2,859,407 2010 $ 3,459,278 522,850 511,655 (992,774) (1,964,996) 2,389,483 $ 2,005,937 SCHEDULE OF FIXED ASSET AND ACCUMULATED DEPRECIATION 2010 SCHEDULE OF FIXED ASSETS Land Land Improvements Building Building Improvements Equipment Construction in Progress Totals $ 692,438 240,438 804,012 948,977 7,843,239 111,880 10,640,984 SCHEDULE OF ACCUMULATED DEPRECIATION Land Improvements 239,850 Building 430,475 Building Improvements 522,801 Equipment 6,082,251 Totals $ 7,275,377 Property, Plant, Equipment, Net $ 3,365,607 INCREASE DECREASE $ 692,438 240,438 788,649 1,141,635 7,471,266 10,334,426 $ 282 16,784 36,339 618,105 671,510 $ 239,685 443,984 533,845 5,909,202 7,126,716 $ 181,326 $ 3,207,710 $ 15,363 41,982 619,107 176,384 852,836 $ 117 30,293 47,383 445,056 522,849 $ 23,429 $ 234,640 247,134 64,504 546,278 2011 SCHEDULE OF CAPITAL LEASE AND ACCUMULATED DEPRECIATION 2010 SCHEDULE OF LEASED ASSETS Land Land Improvements Building Building Improvements Equipment Construction in progress Totals $ 439,985 439,985 SCHEDULE OF ACCUMULATED DEPRECIATION Land Improvements Building Building Improvements Equipment 206,243 Totals $ 206,243 Leased Assets, Net $ 233,742 INCREASE $ - DECREASE $ - 2011 $ 439,985 439,985 $ 54,998 54,998 $ - $ 261,241 261,241 $ 54,998 $ - $ 178,744 Annual Report FY 2011 Page 17 of 19 ACI Arizona Correctional Industries 3701 West Cambridge Avenue Phoenix, AZ 85009 Phone: (602) 272-7600 www.aci.az.gov Executive/Management Team: William Branson CEO/Assistant Director bbranson@azcorrections.gov Brian Radecki Dale Beatty, CPA Glen Davis General Manager bradecki@azcorrections.gov Chief Financial Officer dbeatty@azcorrections.gov Sr. VP Labor Contracts & Marketing/Sales gdavis2@azcorrections.gov Gregg Hillebrand William Foster Alan Wesley VP Western Region ghillebr@azcorrections.gov VP Central Region bfoster@azcorrections.gov VP Eastern Region awesley@azcorrections.gov Richard Selapack VP Labor Contracts rselapac@azcorrections.gov Eric Cole Alexandra Benlein VP Labor Contracts ecole@azcorrections.gov Quality and Training Manager abenlein1@azcorrections.gov Vicki Fitzpatrick Malinda Strom Thomas Brown Procurement Manager vfitzpat@azcorrections.gov ESA/HR Liaison, Administration mstrom@azcorrections.gov Customer Service Manager tbrown@azcorrections.gov Jennifer Davis Rick Kahn Rick Brodeur ADC Sales jdavis@azcorrections.gov VP Sales Manager rkahn@azcorrections.gov Controller rbrodeur1@azcorrections.gov Annual Report FY 2011 Page 18 of 19 Testimonials: Why We Do What We Do Arizona Correctional Industries was instrumental in maintaining my mental well being while incarcerated. I started the program on the cotton crew and moved into a position in the Information Technology department. Working at ACI afforded me the opportunity to learn valuable new skills and share the skills I already knew with others. ACI demanded no less than a professional attitude which helped ease the transition back into the working environment. The staff at ACI was supportive of my training and challenged me to learn as much as possible. I have taken the skills I learned at ACI and applied them towards a career. I was released from prison two years ago and can proudly say that as a direct result of the skills I learned working for Arizona Correctional Industries while incarcerated, I am successfully supporting myself and my two children. To all the staff of Arizona Correctional Industries: I would like to take this time to thank all of you for the skills I learned while at ACI during my incarceration. In addition, it is the confidence and encouragement that I received while working at ACI that I continue to feel empowered with. I am pleased to say that I am now a successful woman working and contributing to society. Without my participation in the ACI program, I do not think I would be where I am today. I hope this program continues to prosper and help others as it helped me. Jody E. Audrey M. Arizona Correctional Industries provided me with the opportunity to practice my job skills, learn new ones, find confidence in my work abilities by achieving goals and daily tasks, and to live a structured routine. I was able to take all of this with me and implement it into my new life, and I have four years of continued success. The ACI work program and its staff provided an invaluable resource and helped me to achieve success and for that I will always be grateful. Thanks to all, Just a quick note to let you know that I am doing well and staying very busy. I have a job that I love that comes very easy to me thanks to all of the training that I received at ACI. I can’t tell you how grateful I am for having been a part of this program where I could learn the skills that I am now using on a daily basis. Thanks to ACI I have the confidence to meet the challenges that I face every day, and know that without this opportunity none of it would have been possible. I thank the staff of ACI for sharing their skill, time, and patience with me and hope that the program continues to provide opportunities for other inmates. Sincerely, Lori M. Mary R. My name is Richard J. and I am an ex-offender. I served 8.5 years in the Arizona Department of Corrections. During my incarceration I was assigned to the Lewis complex, being housed at the Barchey, Bachman and Sunrise Units. I was very fortunate to gain employment within the ACI work program starting in 2005 while at the Barchey Unit. I worked at Swift where I was a mechanic. In 2007 I transferred to Bachman Unit where I continued my employment with CME. In 2008 I was granted outside clearance and was moved to Sunrise Unit where I was immediately assigned to work at Hickman’s for 2½ years as a member of the maintenance team in the Pullet and Lay Houses until my release in January 2011. Very simply stated, the opportunity to hold an ACI job during my incarceration has given me the opportunity for future success in my life. I learned new marketable skills while keeping busy using knowledge and expertise I had from work before prison. The money I earned, that was set aside on my retention fund, was there for me to get the items necessary for successful reintegration to society once I was released. In the 2½ years I worked at Hickman’s I earned the respect of my supervisors, which led to my being offered a full time position with the company upon my release. I am now 7 months into my career with Hickman’s as a civilian. I have a place to live, a job that I truly enjoy that I go to 5 days a week, good friends, and an unlimited future. Richard J. Annual Report FY 2011 Page 19 of 19 Bakery Semi - Truck and Trailer Refurbishing Labor Contracts Sewing Douglas Metal Fabrication Sewing Perryville Commodity Products Mattress Agricultural Wood Metal Refurbishing Business to Business Call Centers Labor Contracts Small Business Center Wood Metal Refurbishing Farm Florence Trailer Manufacturing Modular Building Construction Sewing Perryville Wood Metal Refurbishing Auto Detailing Labor Contracts Sign Shop Farm Sign Shop Farm Metal Fabrication Sewing Douglas Labor Contracts Agricultural Print Shop Bakery MVD In - Bound Call Center Food Processing Small Business Center Semi - Truck and Trailer Refurbishing Metal Fabrication Bakery Small Business Center Farm Business to Business Call Centers Sign Shop Florence Mattress Labor Contracts Bakery Trailer Manufacturing Sewing Douglas License Plates Metal Fabrication Sewing Perryville Farm Commodity Products Mattress Farm Labor Contracts Small Business Center Sign Shop Bakery Food Processing Bakery Wood Metal Refurbishing Sewing Florence Modular Building Construction Auto Detailing Sign Shop MVD In - Bound Call Center Farm Florence Bakery License Plates Business To Business Call Centers Sign Shop Metal Fabrication Auto Detailing Sigh Shop Bakery Farm Print Shop Bakery Florence Mattress Food Processing Small Business Center ACI Arizona Correctional Industries www.aci.az.gov Printed With Pride By The ACI Graphic Arts Division ASPC Perryville, Goodyear, AZ