Sax 2020 Year in Review

2020 – 2021

To our valued clients and friends of the firm, As Managing Partner of Sax and on behalf of all firm members, we extend our best to you and your loved ones and hope you’re well and prosperous. As we settle into 2021, we’d like to present a look back at Sax in an unprecedented year with our Year in Review.

2020 was not lacking headlines. With continuous information released on the state and federal levels on relief programs, loan forgiveness, tax updates and more, our firm stayed on top of it all to provide superior advisory services to those we serve. In addition, Sax received recognition by way of various accolades that validated our work and client focus.

2020 was also not a year to stand still. The investment in our technology infrastructure allowed us to successfully navigate remote working without interruption and operate at full capacity during the pandemic. Between the move of our headquarters of 36 years to a new state-of-the-art campus in Parsippany, NJ, our technology joint venture, our enhancements to multiple practices, and our successful extended busy season, Sax was able to demonstrate progress within great disruption.

We are deeply proud of our team members and what we were able to accomplish under hardships and uncertainties. Our firm rose to the occasion when we needed to quickly adapt and evolve, while remaining steadfast in our commitment to our clients and culture. It is an honor to work alongside so many individuals who thrive on a job-well-done, and it is a privilege to serve clients in our wide capacity.

Whether it be our families, or our businesses, or our ways of life, the COVID-19 pandemic has touched us all. Looking back at our challenges, we recognize all that we are thankful for — like our clients, co-workers, professional relationships, and support systems. Together we are working through this, and it is together we move forward.

We are very optimistic about our future and look forward to continuing to support our clients in reaching their goals as their trusted advisors. We are grateful for the continued confidence in us.

Wishing you and yours good health, happiness and prosperity this year,

Joseph A. Damiano Managing Partner

2020 AT A GLANCE TABLE OF CONTENTS

3

38

OFFICES

178

PARTNERS

STAFF

(FTEs)

1-2 The Sax DNA 3-4 Key Management 5-6 Accolades and Achievements 7-8 Rising Leadership

and Exiting Partners

1,411,000,000

$

ASSETS UNDER MANAGEMENT

48,012,000

$

REVENUE

9-10 Internal Enhancements 11-12 Leadership in Disruption

207,000 CHARGE HOURS

13-14 A Company

That Cares 15-16 A Culture of Support

636

7,863

ISSUED FINANCIAL STATEMENTS

TAX RETURNS

60,000

$

RAISED FOR ST. JOSEPH'S CHILDREN'S HOSPITAL

2020 – 2021

For lasting relevance and impact, we continue to transform for the future, but our Vision, Mission and Core Values remain unchanged. Our unwavering commitment to our clients, our people, our knowledge and our high performance has been the foundation of our success for 65 years.

OUR VISION is to achieve exceptional growth opportunities for our clients, for our people and for our firm by striving to be a Top 75 firm by the year 2022.

OUR CORE VALUES RESPECT We treat each other with respect and dignity; encouraging cooperation and teamwork

INTEGRITY

OUR MISSION is to be our clients’ #1 advisor by understanding their Vision and providing solutions that exceed expectations to assure their success. We are dedicated to continually building a great firm that attracts, develops, excites and retains exceptional people.

We are honest and ethical in everything we do

COMMITMENT We will meet our core commitments 100% of the time

EXCELLENCE We are passionate about the pursuit of excellence in everything we do

We do the right thing for our clients. We do the right thing for our firm.

We do the right thing for our people.

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SAX 2020 YEAR IN REVIEW

ASPIRATIONAL STATEMENT We will cultivate a collaborative culture by fostering knowledge transfer, defining roles and building a skillset to drive client engagement, enhance the client experience and become our clients’ #1 advisor.

SAX 2020 YEAR IN REVIEW

2

2020 – 2021

MANAGING PARTNER JOSEPH A. DAMIANO, CPA

FIRM ADMINISTRATOR VIRGINIA DENNERLEIN, SHRM-CP PARTNER-IN-CHARGE OF QUALITY CONTROL JEFFREY HOLT, CPA

EXECUTIVE BOARD STUART BERGER, CPA

PRACTICE LEADERS

JOSHUA CHANANIE, CPA

CONSTRUCTION ERMAL LUZAJ, CPA, MBA

JOSEPH A. DAMIANO, CPA ERMAL LUZAJ,

CPA, MBA

JOSEPH SHANNON, CPA/ABV, CVA, CFE KYLE R. STAWICKI, ChFC®

OFFICE PARTNERS-IN-CHARGE PARSIPPANY NJ JOSEPH A. DAMIANO, CPA PENNINGTON NJ GUY MCPHAIL CFP®, CPA/PFS NEW YORK CITY W. MICHAEL CURRY, CPA, CCIFP

FIRM OPERATIONS CHIEF MARKETING OFFICER JOHN MURPHY CHIEF OPERATING OFFICER MICHAEL ROLLS DIRECTOR OF HUMAN RESOURCES SHARON BLEIBTREU, PHR

HEALTHCARE SUSAN E. REED,

CPA, CFP®

MANUFACTURING & DISTRIBUTION JOSHUA CHANANIE, CPA NOT-FOR-PROFIT TODD W. POLYNIAK, CPA PROFESSIONAL SERVICES JENNIFER L. MOROZ, CPA REAL ESTATE JOSEPH SHANNON, CPA/ABV, CVA, CFE S2 TECHNOLOGY SOLUTIONS JOHN MURPHY SAX WEALTH ADVISORS KYLE R. STAWICKI, ChFC®

SERVICE LEADERS ACCOUNTING + AUDITING JEFFREY HOLT, CPA EMPLOYEE BENEFIT PLAN AUDITS JENNIFER L. MOROZ, CPA FAMILY OFFICE STUART BERGER, CPA

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SAX 2020 YEAR IN REVIEW

HR CONSULTING SHARON BLEIBTREU, PHR NEW LEASE ACCOUNTING JASON BOROFSKY, CPA, MBA TAX SHIVANI JAIN,

CPA, MST

TRANSACTION ADVISORY TODD W. POLYNIAK, CPA TRUSTS & ESTATES LAWRENCE M. GRADZKI, CPA JD, LLM JOY MATAK, JD, LLM VALUATION, FORENSIC & LITIGATION MEGAN SARTOR, CPA, ABV, CFF

RISK MANAGEMENT COMMITTEE STUART BERGER, CPA W. MICHAEL CURRY, CPA, CCIFP JOSEPH A. DAMIANO,

CPA

VIRGINIA DENNERLEIN, SHRM-CP CHRIS GAFFNEY, CPA, MST JEFFREY HOLT,

CPA

JOY MATAK, JD, LLM MICHAEL ROLLS

COVID-19 RECOVERY TASK FORCE JOSHUA CHANANIE, CPA STEPHEN J. EHRENBERG, CPA, MBT TODD W. POLYNIAK, CPA JOSEPH SHANNON, CPA/ABV, CVA, CFE ANGELO STRAFACE, CPA

SAX 2020 YEAR IN REVIEW

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2020 – 2021

Sax continues to strengthen its reputation and foothold in the field of accounting, tax and advisory – gaining recognition nationwide and a standout record as trusted advisors to clients.

This year was no exception with the firm and team members receiving the following noteworthy accomplishments:

SAX LLP Named to INSIDE Public Accounting’s list of the Best of the Best Firms in the nation, made up of top performers in the profession.

Recognized on the list of America’s Best Tax and Accounting Firms by Forbes.

RANKED #98

on INSIDE Public Accounting’s prestigious Top 100 list of accounting firms in the country.

RANKED by NJBIZ on their list

13

#

of Top New Jersey Accounting Firms.

on NJBIZ’s list of the Top 250 Privately Held Companies, moving up 10 spots since last year.

RANKED

98

#

on Construction Executive’s list of the Top 50 Construction Accounting Firms in the nation.

RANKED

23

#

RANKED #98

on Accounting Today’s prestigious Top 100 list of accounting firms in the country.

RANKED

19

#

on Accounting Today’s list of Top Mid-Atlantic Firms.

Chosen by CIANJ as a Champion of Good Works due to ongoing commitment to St. Joseph’s Children’s Hospital and surrounding communities.

SAX WEALTH ADVISORS Please click here to reference important disclosure information regarding this award.

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SAX 2020 YEAR IN REVIEW

RANKED on the “Wealth Magnet” list of the

29

#

Top 150 Firms by Assets Under Management by Accounting Today, making “The Billion Dollar Club”.

TEAM MEMBER ACHIEVEMENTS • KATHLEEN ALEXANDER, CPA, MST, CFE was named an Ovation Award winner by the NJCPA in the category of IMPACT for exemplary efforts and stellar achievements advancing New Jersey’s accounting profession.

• JOSHUA CHANANIE, CPA was named to Sax’s Executive Board with his term effective 2020.

• W. MICHAEL CURRY, CPA, CCIFP was named a Board member for the NYC Chapter of the Construction Financial Management Association (CFMA) and now serves on the Board of Directors for both the NJ and NYC chapters of the CFMA. • JOSEPH A. DAMIANO, CPA was named to NJBIZ’s Accounting Power 50 list which names the most influential men and women in the profession that keep the state’s businesses on track.

• CANDY GORDON-GEANOULES, CPA was named Vice President Treasurer of the Builders Association of Northern NJ. • ELENA KLARBERG, CPA was named an Ovation Award winner by the NJCPA in the WOMAN TO WATCH category, which applauds her growth and success in the industry and recognizes her leadership, contributions and commitment to fostering the success of her colleagues.

• MELISSA L. O’SHEA, CPA was named President of the New Jersey Surety Association.

• MELISSA L. O’SHEA, CPA was a recipient of the Professional Women in Construction’s 40 Under 40 Outstanding Women in Construction Award.

• KATHLEEN M. RUTCH, CPA was selected for inclusion on Crain’s 3rd annual Notable Women in Accounting & Consulting list for New York City.

• MEGAN SARTOR, CPA, ABV, CFF was named an Ovation Award winner by the NJCPA in the WOMAN TO WATCH category, which applauds her growth and success in the industry and recognizes her leadership, contributions and commitment to fostering the success of her colleagues.

• KYLE R. STAWICKI, ChFC® was named to Sax’s Executive Board with his term effective 2021.

Congratulations to the following Sax team members who passed their CPA exams in 2020: • LISA MELA • DANIEL LUBAT • MATHEW J. GIORDANO

SAX 2020 YEAR IN REVIEW

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2020 – 2021

The following Sax team members were promoted to the levels of Manager and above for their demonstrated work ethic, client commitment, leadership and results delivered.

We look forward to witnessing their continued professional success moving forward.

ADAM APIDOPOULOS

MANI GUPTA, CPA

JENNIFER HAN, CPA

promoted to

promoted to

promoted to

A&A Manager

Senior Tax Manager

Tax Manager

ELENA KLARBERG, CPA

LISA MELA, CPA, MST

JOSEPH SAVERINO, CPA, MBA

7

promoted to

promoted to

promoted to

A&A Manager

Senior Tax Manager

A&A Manager

SAX 2020 YEAR IN REVIEW

In 2020, we said goodbye to two Partners of the firm who have been essential in shaping Sax into the strong and successful firm it is today. These Partners exemplified excellence in every sense of the word, and have set the bar high for what true business advisors look like.

Sax thanks them for all their contributions and dedication to the advancement of Sax.

MARC BLUMENTHAL, CPA Marc Blumenthal was a Partner at Sax for more than 35 years and has served as a member of the firm’s Executive Committee, Compensation Committee, Head of the Tax Department, Partner-in-Charge of Marketing and Business Development, and Founder of the Financial Managers Forum (now CFO Focus). He has been the epitome of what a trusted advisor to clients looks like. He specialized in tax and advisory services for closely held businesses with extensive experience working with business owners in the areas of succession planning, sales and acquisitions, strategic planning, mergers and acquisitions and business organizational consulting.

STEVEN KAPLAN, CPA Steven Kaplan has been a Partner with Sax for more than 35 years, and previously managed the Firm’s Trusts & Estates Practice. During his tenure, Steve helped develop Sax’s Tax Department into an entity that is well respected by the community for its expertise. Steve has specialized in the development and implementation of sophisticated estate and income tax planning techniques and was actively involved in corporate, individual, fiduciary and estate planning tax matters of varying complexity on behalf of clients. Using his accounting and legal backgrounds, he has greatly helped clients mitigate their tax burdens through sound advice and ideas. In retirement, Steven will continue to serve as trustee of many trusts and is looking forward to spending time with his wife and spending his winters in warm and sunny Vietnam.

SAX 2020 YEAR IN REVIEW

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2020 – 2021

NEW HEADQUARTERS-OF-THE-FUTURE In 2020, Sax took its workplace into the future with a move of the firm’s flagship office of 36 years in Clifton, NJ to a new state-of-the-art facility in Parsippany, NJ called, LATITUDE. Sax has paid close attention to the ever-changing needs of employees and clients as it continues to expand and evolve. The new office brings Sax’s capabilities to the next level and strengthens the firm for the future.

LATITUDE is designed to transcend the traditional work routine and provides Sax with worldclass services and amenities that will help to attract the next generation of professional talent.

Combined with the building’s innovative design, one can’t help but feel productive and the positive energy from working there. Sax looks forward to hosting an Open Office event for clients and friends of the firm in the near future.

TECHNOLOGY INFRASTRUCTURE Sax upgraded the firm’s technology infrastructure, equipping team members with the tools and resources to work fully remote with zero disruption to clients and productivity. This addressed an immediate need with the swift shift in norms, while also an important investment in the firm’s future.

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SAX 2020 YEAR IN REVIEW

TECHNOLOGY OFFERINGS TO CLIENTS With the current pandemic, it's clear how important technology is in driving a business forward. Sax partnered with Safari Solutions, a well-established technology provider, to increase support to clients with enhanced technology service offerings.

The joint venture resulted in S2 Technology Solutions and enables Sax to further help businesses to increase efficiencies, productivity and protect business capabilities.

QUALITY CONTROL Sax continued to grow the sophistication of its Accounting & Auditing Practice with the addition of Jeffrey Holt, CPA. In his capacity as Partner-in-Charge of Quality Control, Jeff will monitor Sax’s compliance with professional standards for conducting high-quality audits with competence, integrity, objectivity and independence.

Jeff will coordinate internal firm inspections and Sax’s external peer review, in addition to developing the training curriculum and conducting seminars on accounting and auditing topics for the firm’s professionals.

TRUSTS & ESTATES Sax welcomed Joy Matak, JD, LLM as Partner in the Tax Department and Co-Practice Leader of Trusts and Estates to further strengthen the firm’s depth of expertise and the value provided to generations of high-net-worth individuals and families. Joy brings over 20 years of diversified experience as a wealth transfer strategist with an extensive background in recommending and implementing advantageous tax strategies for multi-generational wealth families, owners of closely-held businesses, and high-net-worth individuals including complex trust and estate planning.

SAX 2020 YEAR IN REVIEW 10

2020 – 2021

Sax strives to be strong in unstable times, and informed amidst uncertainty so we can stand as trusted advisors to our clients. Through unprecedented challenges, Sax has provided clients, business owners, the banking community, high-net-worth individuals and financial managers with on-going guidance, and built out the necessary service offerings to address their pains and needs.

INFORMATIONAL WEBINARS We’ve been operating in unchartered territory since early 2020. Since then, Sax has hosted over 130 internal and external facing webinars designed to disseminate important information on matters that mean the most to our businesses. Over 15,000 registrants have leaned on Sax to provide meaningful information on topics that include, but are not limited to: • Tax updates, provisions and incentives • “Recovery Updates” on loan programs and forgiveness strategies • Staying the Course in Wealth Management • Transformation Through Technology • What Re-Entry into the Workplace Looks Like • A Look Inside a Hospital's Frontlines • “Pandemic’s Impact” series on topics such as exit planning, estate planning and private equity transactions

COVID-19 RESOURCE CENTER (RC) Since the start of the pandemic, new information continues to be released from the local and federal levels, and Sax’s Resource Center was developed to house important updates and relevant information to our states and businesses on an on-going basis. The RC now holds over 50 informational webinars, and an abundance of content on relief programs, business resources, tax alerts, etc., and serves as an up-to-date archive of information so individuals and businesses can stay in the know and adequately prepare their company for recovery.

Enter the Resource Center Here.

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SAX 2020 YEAR IN REVIEW

RECOVERY TASK FORCE Sax’s Recovery Task Force was created to support clients through a disruptive pandemic and position their company to regain strength. The Task Force works to consistently relay vital information, resources and on-going guidance to businesses and individuals, and has held over 45 webinars on COVID-19 loan programs, forgiveness strategies, tax considerations and more.

Sax’s Recovery Task Force has built out specific advisory services to address the needs of the business community throughout the pandemic. The firm helps clients to secure funding through the various state and federal relief programs, and help obtain forgiveness by ensuring proper documentation, compliance with program guidelines, and through service offerings such as a Paycheck Protection Program (PPP) Forgiveness Tool to assist with the forgiveness application.

JOSH CHANANIE

STEPHEN J. EHRENBERG

TODD W. POLYNIAK

JOSEPH SHANNON

Partner

Partner

Partner

Partner

CPA

MELISSA BOLLINGER Senior Associate

CPA, MBT

CPA

JULIA GOLDSHLAG

MATTHEW GOLDSTEIN

Senior Associate

Senior Associate

CPA

CPA

CPA/ABV, CVA, CFE

AMANDA MALKO Senior Associate

ANGELO STRAFACE CPA

Senior Manager

SAX 2020 YEAR IN REVIEW 12

2020 – 2021

Sax strives to use its strength to pick up others. We work to foster a culture of giving by matching funds for charities, coordinating fundraisers, facilitating donation drives and offering a PTO day to team members to use for volunteering in the communities where we live and work.

Here are a few highlights from our year of giving:

OVER $60,000 RAISED FOR ST. JOSEPH’S CHILDREN’S HOSPITAL Sax is a Corporate Champion of St. Joseph’s Children’s Hospital in Paterson, NJ and the largest financial contributor to their Child Life Department which works to provide quality-of-life programs for their pediatric patients dealing with illness, treatment and hospitalization.

Since 2012, Sax has facilitated a 4 MILER run/walk event with 100% of funds raised going directly to the Children’s Hospital. Due to the pandemic, the event went virtual in 2020 and garnered unwavering support despite the change in format. Through the generous support of event participants, sponsors, and donors, Sax’s 2020 virtual 4 MILER event raised over $60,000 for the Child Life Department. That brings our cumulative total raised for the pediatric patients of St. Joseph’s to over $595,000 since the 4 MILER’s inception!

MAKING STRIDES AGAINST BREAST CANCER For years, Sax has supported the fight against breast cancer through group marches and internal fundraisers. Although we were unable to march in 2020 due to the pandemic, the firm held a virtual raffle where team members donated baskets of goodies to be raffled off for the cause. 16 baskets were donated by team members and over $1,500 was raised for the American Cancer Society.

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COMPANY CLEAN-UP OF OUR COMMUNITIES Sax’s Green Committee is dedicated to promoting waste reduction, recycling and sustainability in our workplace and in our neighborhoods.

In 2020, we held a firm-wide Volunteer Day, where employees were encouraged to take a day and dedicate it to cleaning up our neighborhoods. Team members hit their streets, parks, schools, woods and streams in large numbers to collect garbage, plant flowers and improve their natural surroundings.

SAX 2020 YEAR IN REVIEW 14

2020 – 2021

At Sax, we emphasize the importance of finding fulfillment and success in our roles inside and outside of the firm, and work to cultivate a culture that helps our team members excel in both their personal and professional lives.

SAX P.O.W.E.R. The mission of Sax’s Professional Organization of Women for Empowerment and Results (P.O.W.E.R.) group is to support women employees, embrace inclusiveness and collectively address a woman’s role in the evolving business environment. The group focuses on their Four Pillars: Professional Development, Networking, Community Outreach and Support.

THE NEW NORM With the shift to working remote in 2020, Sax team members quickly adjusted to working with their “new co-workers" daily. Work environments were reinvented, and routines adjusted. We are grateful for the individuals and families that support our team members every day, and by extension, the firm. Here are a few snapshots of our “new co-workers” and workspaces in our new remote world:

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Congratulations 2020 VIRTUAL PARTNER RETREAT

to our team members who had new additions to their family in 2020:

Michelle Van Soest

Anthony Michael

Natalie Alvarez

Savannah

January 18

February 2

Gregg Munn

Adam Holzberg

Cortland Marvin

Brody Grayson

April Kushner

Lisa Mela

Alivia

Juliet Lynne

Adam Feldman

Carolyn Conforti

Aaron Joshua

Carter Timothy

INTERNAL TRAINING & MENTORSHIP Sax works to foster a culture of support within the firm by leveraging mentorship programs and facilitating on-going internal trainings so team members can leverage the expertise of the firm’s subject matter experts. Sax assigns a performance manager to each team member to provide leadership, coaching, training and feedback to help ensure their success. Sax also holds an annual Pathway to Success Program to provide team members with the professional tools to help them reach their career goals.

February 12

May 20

August 27

March 26

August 8

November 3

SAX 2020 YEAR IN REVIEW 16