2019-11-15T09:56:32-06:00 2018-12-31 383635706 REHMANN ROBSON LLC 555 BRIARWOOD CIRCLE STE 300 ANN ARBOR MI 48108 990 2018-01-01 381983442 ALTARUM INSTITUTE ALTA 7343024600 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 DAVID ROBERTSON CFO 7343024600 2019-11-12 1 ADAM P WILLIAMS CPA P00641847 7347612005 2019-11-11 96.80.202.145 2019-11-12 06:33:28 ES P CAF5774A219D2C2538AAF20404ACA0A1BE6EAF40 B941F22BEA561FF69DE925A2E354ECD1D009F20F 2018 2020-03-31 21:24:44Z LINCOLN T SMITH 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 52321231 0 X WWW.ALTARUM.ORG X 1972 MI CREATE AND IMPLEMENT SOLUTIONS TO ADVANCE HEALTH AMONG VULNERABLE AND PUBLICLY INSURED POPULATIONS 8 7 309 0 51308 0 19457251 18906559 37413041 31289476 49194 421146 -26666 75071 56892820 50692252 30000 25000 0 0 34603046 29762863 0 0 1725945 24656111 21088413 59289157 50876276 -2396337 -184024 65452862 67414210 25109268 23548177 40343594 43866033 X ALTARUM SERVES THE PUBLIC GOOD BY SOLVING COMPLEX SYSTEMS PROBLEMS TOIMPROVE HUMAN HEALTH, INTEGRATING RESEARCH, TECHNOLOGY, ANALYSIS, ANDCONSULTING SKILLS. 1 0 30817481 25000 31276534 ALTARUM INSTITUTE'S ACTIVITIES PRIMARILY CONSIST OF RESEARCH FOR THE SUSTAINABLE WELL-BEING OF SOCIETY. FOUR OF ALTARUM'S 2018 MAJOR PROGRAMS INCLUDE:1. MDHHS DATA HUB: PROVIDE SERVICES AND SUPPORT TO THE MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES (MDHHS) TO IMPROVE THE FLOW OF DATA FROM MICHIGAN'S HEALTHCARE PROVIDERS INTO STATE PUBLIC HEALTH SYSTEMS AND BETWEEN STATE PUBLIC HEALTH SYSTEMS AND THE FEDERAL GOVERNMENT. THESE SYSTEMS INCLUDE THE MICHIGAN DISEASE SURVEILLANCE SYSTEM AND THE MICHIGAN SYNDROMIC SURVEILLANCE SYSTEM (AMONG OTHERS) WHICH EXIST TO TRACK CHANGES IN POPULATION HEALTH AND DETECT UNUSUAL OUTBREAKS OF ILLNESS, POTENTIAL PUBLIC HEALTH THREATS AND EMERGENCIES.2. MORE LA SMILES: AS A KEY COMPONENT OF CALIFORNIA'S MEDI-CAL 2020 GOAL, THIS DENTAL TRANSFORMATION INITIATIVE IS IMPLEMENTING INNOVATIVE SOLUTIONS TO IMPROVE ORAL HEALTH ACCESS FOR THE 500,000 LOS ANGELES COUNTY CHILDREN WITH MEDI-CAL/DENTI-CAL COVERAGE. IMPLEMENTED SOLUTIONS INCLUDE ENABLING REFERRAL TECHNOLOGY, DIRECT MEDICAL AND DENTAL PROVIDER EDUCATION AND TECHNICAL ASSISTANCE, AND ORAL HEALTH RESOURCES AND SERVICES. 3. MEANINGFUL USE TECHNICAL ASSISTANCE: DELIVER ON THE GROUND PHYSICIAN EDUCATION, OUTREACH AND TECHNICAL ASSISTANCE TO MEDICAID-ELIGIBLE PROFESSIONALS ACROSS THE STATE OF MICHIGAN. THIS SUPPORT FOCUSES ON ADOPTING AND USING HEALTH INFORMATION TECHNOLOGY TO IMPROVE POPULATION HEALTH AND MEET THE REGULATORY REQUIREMENTS OF THE CENTERS FOR MEDICARE AND MEDICAID SERVICES' MEANINGFUL USE PROGRAM.4. QUALITY PAYMENT PROGRAM SMALL RURAL AND UNDERSERVED SUPPORT CONTRACTOR (QPP-SURS): PROVIDE TECHNICAL ASSISTANCE AND SUPPORT TO MERIT BASED INCENTIVE PAYMENT SYSTEM (MIPS) ELIGIBLE PROVIDERS IN SMALL, RURAL OR UNDERSERVED PRACTICES ACROSS A SEVEN-STATE REGION FOR THEIR PARTICIPATION IN THE CMS QUALITY PAYMENT PROGRAM (QPP). ASSISTANCE INCLUDES PROGRAM EDUCATION, MIPS READINESS ASSESSMENTS, PROGRAM ELIGIBILITY, SUPPORT FOR USING CERTIFIED EHR TECHNOLOGY, ADVICE ON SELECTION OF MIPS MEASURES AND ACTIVITIES TO REPORT, AND HELP SUBMITTING DATA TO CMS. ASSISTANCE IS DELIVERED TO PRACTICES AND INDIVIDUAL PROVIDERS THROUGH AN INTERACTIVE WEB PORTAL, LIVE CHAT, PHONE SUPPORT, WEBINARS, AND EMAIL CORRESPONDENCE. 30817481 1 1 0 1 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 108 0 1 309 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 8 7 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X SANDRA ZIEBOLD 7343024600 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 X KAREN ALDRIDGE-EASON TRUSTEE 4.00 1.00 X 31500 0 0 RONALD J GARDHOUSE VICE CHAIRMAN TRUSTEE 4.00 1.00 X 43000 0 0 GERALD CROAN TRUSTEE 4.00 1.00 X 40500 0 0 GUY FISH TRUSTEE 4.00 1.00 X 42500 0 0 ROSEMARY GIBSON CHAIRMAN TRUSTEE 4.00 1.00 X 58000 0 0 JENNIE CHIN HANSEN TRUSTEE 4.00 1.00 X 31500 0 0 JOSEPH FIFER TRUSTEE 4.00 1.00 X 34000 0 0 LINCOLN SMITH PRESIDENT AND CEO 40.00 0.00 X X 1007191 0 663806 KATHERINE DIMEO VP 40.00 0.00 X 338334 0 332836 SHEENA GILL SVP, CAO, GC 40.00 0.00 X 415131 0 278425 STEVEN TOWELL END 11518 FORMER OFFICER 40.00 0.00 X 293049 0 127833 DANIEL ARMIJO SVP & COO 40.00 0.00 X 783274 0 438546 ALICIA TORRES END 8618 FORMER OFFICER 40.00 0.00 X 760041 0 31286 TRACY LAWYER ASST. SECRETARY 40.00 0.00 X 222884 0 105808 DAVID ROBERTSON BEG 81618 VP & CFO 40.00 0.00 X 127926 0 124504 ERIC GELMAN GROUP DEPUTY DIRECTOR 40.00 0.00 X 214932 0 1265 GLEN GREENLEE VP, CHANGE MGMT 40.00 0.00 X 193370 0 9936 DORCAS LYNN CENTER DIRECTOR 40.00 0.00 X 269744 0 30101 RICHARD KELLER CENTER DIRECTOR 40.00 0.00 X 216793 0 79247 DOUGLAS EMERY CENTER DIRECTOR 40.00 0.00 X 216779 0 44051 DOUGLAS GILBERT END 83117 FORMER OFFICER 0.00 0.00 X 329135 0 0 JAMES LEE END 123117 FORMER OFFICER 0.00 0.00 X 272378 0 27553 FRANCOIS DE BRANTES END 31618 FORMER OFFICER 0.00 0.00 X 294935 0 4556 6236896 0 2299753 92 1 1 0 FEDERAL ADVISORY PARTNERS 3100 CLARENDON BLVD SUITE 1400 ARLINGTON VA 22201 SCIENTIFIC/TECHNICAL SERVICES 5885297 IPSOS PUBLIC AFFAIRS 2020 K STREET NW SUITE 410 WASHINGTON DC 20006 SCIENTIFIC/TECHNICAL SERVICES 1796943 MICHIGAN MEDICAL ADVANTAGE 101 N MAIN STREET SUITE 430 ANN ARBOR MI 48104 SCIENTIFIC/TECHNICAL SERVICES 1061527 MICHIGAN PUBLIC HEALTH INSTITUTE 2436 WOODLAKE CIRCLE SUITE 340 OKEMOS MI 48864 SCIENTIFIC/TECHNICAL SERVICES 477887 NORTHWESTERN UNIVERSITY 750 N LAKE SHORE DR CHICAGO IL 60611 SCIENTIFIC/TECHNICAL SERVICES 351748 22 16202696 2703863 18906559 CONTRACT REVENUE 541900 28308563 28295621 12942 LICENSE REVENUE 541900 2980913 2980913 31289476 391996 391996 2277 2277 876535 803760 72775 72775 38366 34409 854369 825219 29150 29150 29150 MISCELLANEOUS 541900 19 19 19 50692252 31276534 51308 457851 X 25000 25000 5119665 3119811 1822234 177620 18942227 11542978 6742075 657174 1023039 623417 364129 35493 2820105 1718510 1003755 97840 1857827 1132119 661253 64455 106886 106886 202684 202684 9957 9957 13134502 8003876 4674943 455683 3216508 1960070 1144846 111592 1634541 996054 581779 56708 676162 412038 240665 23459 125882 76710 44805 4367 304186 304186 862711 525717 307063 29931 138391 84333 49257 4801 BAD DEBT 477018 477018 TRAINING & RELOCATION 113016 68869 40226 3921 OTHER 83628 50961 29766 2901 GIFTS & CONTRIBUTIONS 2341 0 2341 50876276 30817481 18332850 1725945 300 301 3357270 5018379 0 0 7839047 9821607 0 0 0 0 0 0 0 0 1432121 1344089 30329136 17593426 13268341 12735710 6319057 5067698 23603568 27568394 0 0 1362744 1362744 8270414 4495288 65452862 67414210 11489353 10746473 0 0 2054864 3122380 0 0 0 0 8659374 7704208 0 0 2905677 1975116 25109268 23548177 X 40343594 43866033 0 0 0 0 40343594 43866033 65452862 67414210 X -184024 -426158 300653 3831968 X 0 1 X 1 1 1 X 10684372 19433544 24298403 19457251 18906559 92780129 46649808 35587810 34170317 37360435 31276534 185044904 57334180 55021354 58468720 56817686 50183093 277825033 0 27274651 20357017 17435314 23584765 15635718 104287465 27274651 20357017 17435314 23584765 15635718 104287465 173537568 10615 10638 6135 53208 394273 474869 45907 58080 32177 51851 188015 10615 56545 64215 85385 446124 662884 18758 19 18777 57344795 55077899 58532935 56921829 50629236 278506694 0.62310 0.59630 0.00240 0.00090 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: ADMINISTRATIVE SERVICES - 2017 AMOUNT: $ 18,758. MISCELLANEOUS - 2018 AMOUNT: $ 19. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 9957 0 0 9957 0 SCHEDULE C, PART II, LINE 1B & 1G LOBBYING ACTIVITY DESCRIPTION ALTARUM MET WITH AND/OR SUBMITTED INFORMATION TO STAFF MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES AND/OR THE U.S. SENATE PERTAINING TO THE FOLLOWING TOPIC: LONG-TERM CARE AND AGING ISSUES. 1596660 1596660 16981694 8353104 8628590 799718 595910 203808 10951064 8644412 2306652 12735710 INVESTMENT IN FCAM SUBSIDIARIES 27568394 C 27568394 INTERCOMPANY RECEIVABLES 3452044 DEFERRED COMPENSATION PLAN ASSETS 1043244 4495288 INTERCOMPANY PAYABLE 66842 DEFERRED COMPENSATION LIABILITY 1908274 1975116 X PART X, LINE 2: ASC 740-10 (FKA FIN 48) FOOTNOTE THE INSTITUTE ANALYZES ITS INCOME TAX FILING POSITIONS IN THE FEDERAL, STATE, AND LOCAL JURISDICTIONS WHERE IT IS REQUIRED TO FILE INCOME TAX RETURNS, AS WELL AS ALL OPEN TAX YEARS IN THESE JURISDICTIONS, TO IDENTIFY POTENTIAL UNCERTAIN TAX POSITIONS. THE INSTITUTE TREATS INTEREST AND PENALTIES ATTRIBUTABLE TO INCOME TAXES, AND REFLECTS ANY CHARGES FOR SUCH, TO THE EXTENT THEY ARISE, AS A COMPONENT OF ITS INCOME TAX EXPENSE. THE INSTITUTE HAS EVALUATED ITS INCOME TAX FILING POSITIONS FOR FISCAL YEARS 2015 THROUGH 2018, THE YEARS WHICH REMAIN SUBJECT TO EXAMINATION AS OF DECEMBER 31, 2018. THE INSTITUTE CONCLUDED THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE INSTITUTE'S CONSOLIDATED FINANCIAL STATEMENTS. THE INSTITUTE DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS ("UTB") (E.G. TAX DEDUCTIONS, EXCLUSIONS, OR CREDITS CLAIMED OR EXPECTED TO BE CLAIMED) TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. THE INSTITUTE DOES NOT HAVE ANY AMOUNTS ACCRUED FOR INTEREST AND PENALTIES RELATED TO UTBS AT DECEMBER 31, 2018 OR 2017 AND IS NOT AWARE OF ANY CLAIMS FOR SUCH AMOUNTS BY FEDERAL, STATE OR LOCAL INCOME TAX AUTHORITIES. SCHEDULE D ALTARUM INSTITUTE ADOPTED THE PROVISIONS OF ASC 740 (FKA FIN 48) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007, AS REQUIRED. ALTARUM INSTITUTE'S SHARE OF THE CONSOLIDATED FINANCIAL STATEMENT PROVISION FOR ASC 740 (FKA FIN 48) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 WAS ZERO. EUROPE 0 0 PROGRAM SERVICES SCIENTIFIC RESEARCH 3801 NORTH AMERICA 0 1 PROGRAM SERVICES SCIENTIFIC RESEARCH 219632 NORTH AMERICA 0 0 PROGRAM SERVICES SCIENTIFIC RESEARCH 1531 0 1 0 0 0 1 224964 0 224964 0 0 0 0 0 0 1 MICHIGAN THEATER FOUNDATION INC 603 EAST LIBERTY ST ANN ARBOR MI 48104 382269013 501(C)(3) 10000 CORPORATE SPONSORSHIP UNIVERSITY MUSICAL SOCIETY 881 N UNIVERSTIRY AVE ANN ARBOR MI 48109 381545881 501(C)(3) 10000 CORPORATE SPONSORSHIP NATIONAL NETWORK OF DEPRESSION CENTERS 2350 GREEN ROAD SUITE 191 ANN ARBOR MI 48105 800270977 501(C)(3) 5000 CORPORATE SPONSORSHIP 3 SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS ALTARUM INSTITUTE IS COMMITTED TO A PROGRAM OF PHILANTHROPY THAT SUPPORTS OUR LOCAL COMMUNITIES. THROUGH OUR CHARITABLE CONTRIBUTIONS PROGRAM, WE SUPPORT AND ENCOURAGE EMPLOYEE INVOLVEMENT IN THE LOCAL COMMUNITY IN ADDITION TO INSTITUTE SUPPORT THAT ALIGNS WITH OUR MISSION. AS EMPLOYEE PARTICIPATION IS PARAMOUNT TO THE SUCCESS OF THIS PROGRAM, A LOCAL CHARITABLE CONTRIBUTION COMMITTEE HAS BEEN ESTABLISHED AT EACH MAJOR OFFICE. WITH THE ASSISTANCE OF HUMAN RESOURCES, COMMITTEE MEMBERS DEVELOP TIMELINES, HOST QUARTERLY MEETINGS, REVIEW PROPOSALS, AND DISBURSE AWARDS BASED ON SPECIFIC CRITERIA. THE VISION IS TO EMPOWER AND ENCOURAGE EMPLOYEE PARTICIPANTS TO DEVELOP A GREATER SENSE OF MORALE THAT EXPANDS INTO COMMUNITY LEADERSHIP. X X X X X 1 1 0 0 0 0 0 0 0 LINCOLN SMITH PRESIDENT AND CEO 394733 0 599020 0 13438 0 642154 0 21652 0 1670997 0 487347 0 KATHERINE DIMEO VP 203667 0 131751 0 2916 0 329221 0 3615 0 671170 0 94116 0 SHEENA GILL SVP, CAO, GC 250000 0 162053 0 3078 0 261839 0 16586 0 693556 0 162053 0 STEVEN TOWELL END 11518 FORMER OFFICER 159500 0 135873 0 -2324 0 104454 0 23379 0 420882 0 105822 0 DANIEL ARMIJO SVP & COO 245000 0 541454 0 -3180 0 416743 0 21802 0 1221819 0 473054 0 ALICIA TORRES END 8618 FORMER OFFICER 172546 0 314284 0 273211 0 15821 0 15465 0 791327 0 281800 0 TRACY LAWYER ASST. SECRETARY 164813 0 51425 0 6646 0 95947 0 9861 0 328692 0 57888 0 DAVID ROBERTSON BEG 81618 VP & CFO 131309 0 0 0 -3383 0 105893 0 18611 0 252430 0 0 0 ERIC GELMAN GROUP DEPUTY DIRECTOR 25307 0 0 0 189625 0 1265 0 0 0 216197 0 91931 0 GLEN GREENLEE VP, CHANGE MGMT 74917 0 19345 0 99108 0 5700 0 4236 0 203306 0 114519 0 DORCAS LYNN CENTER DIRECTOR 210833 0 42130 0 16781 0 18272 0 11829 0 299845 0 57630 0 RICHARD KELLER CENTER DIRECTOR 163333 0 47764 0 5696 0 53562 0 25685 0 296040 0 60264 0 DOUGLAS EMERY CENTER DIRECTOR 218633 0 0 0 -1854 0 20581 0 23470 0 260830 0 0 0 DOUGLAS GILBERT END 83117 FORMER OFFICER 0 0 0 0 329135 0 0 0 0 0 329135 0 0 0 JAMES LEE END 123117 FORMER OFFICER 47098 0 227793 0 -2513 0 13740 0 13813 0 299931 0 177847 0 FRANCOIS DE BRANTES END 31618 FORMER OFFICER 83630 0 184609 0 26696 0 4208 0 348 0 299491 0 199442 0 SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENT ALTARUM INSTITUTE ISSUED THE FOLLOWING SEVERANCE PAYMENT IN 2018 AS A RESULT OF TERMINATION OF EMPLOYMENT: ALICIA TORRES $240,273 ERIC GELMAN $ 96,999 GLEN GREENLEE $ 4,836 DOUGLAS GILBERT $329,135 FRANCOIS DE BRANTES $195,496 SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ALTARUM INSTITUTE ADMINISTERS A SUPPLEMENTAL NONQUALIFIED IRC SECTION 457(F) PLAN FOR ITS SENIOR EXECUTIVES AND ANOTHER SUCH PLAN FOR MIDDLE MANAGEMENT. THESE IRC SECTION 457(F) PLANS PROVIDE SPECIFIC TIME DEFERRALS OF INCENTIVE COMPENSATION FOR THESE EMPLOYEES. THE FOLLOWING INDIVIDUALS DEFERRED THE LISTED AMOUNTS OF 2018 INCENTIVE COMPENSATION UNDER THE PLANS IN WHICH THEY QUALIFIED: LINCOLN SMITH $737,127 KATHERINE DIMEO $298,500 JAMES LEE $0 FRANCOIS DE BRANTES $0 SHEENA GILL $312,000 DOUGLAS GILBERT $0 STEVEN TOWELL $75,000 DANIEL ARMIJO $375,000 DAVID ROBERTSON $90,000 ALICIA TORRES $0 TRACY LAWYER $70,500 ERIC GELMAN $0 GLEN GREENLEE $0 JOANN LYNN $5,000 RICHARD KELLER $42,286 DOUGLAS EMERY $0 FORM 990, PART III, LINE 2 PLEASE SEE THE DETAILED DESCRIPTION FOR FORM 990, PART III, LINE 4. FORM 990, PART VI, SECTION B, LINE 11B PROCESS USED TO REVIEW THE FORM 990 1. IRS FORM 990 IS PREPARED EXTERNALLY BY ALTARUM'S TAX ACCOUNTING FIRM. THE PROCESS IS MANAGED BY THE OFFICE OF THE CHIEF FINANCIAL OFFICER. WITH APPROPRIATE GUIDANCE FROM THE TAX ACCOUNTANTS, INFORMATION GATHERING AND REPORTING IS PRIMARILY CONDUCTED BY THE CHIEF FINANCIAL OFFICER AND FINANCIAL REPORTING & ANALYSIS MANAGER. AS PART OF THE INFORMATION GATHERING PROCESS, THE CHIEF FINANCIAL OFFICER AND FINANCIAL REPORTING & ANALYSIS MANAGER WORK WITH ALTARUM INSTITUTE OFFICERS AND OTHER MANAGERS AS NECESSARY. 2. THE CHIEF FINANCIAL OFFICER PRESENTS THE COMPLETED DRAFT FORM 990 TO THE AUDIT AND COMPENSATION WORKING GROUP OF THE ALTARUM INSTITUTE BOARD OF TRUSTEES. THIS WORKING GROUP HAS BEEN DESIGNATED BY THE BOARD TO REVIEW THE FORM 990 TO EITHER RECOMMEND TO THE BOARD FOR APPROVAL AS WRITTEN OR MAKE SUGGESTED MODIFICATIONS, DRAWING UPON OTHER INDIVIDUAL TRUSTEES IT DEEMS NECESSARY. 3. ONCE REVIEWED AND READY FOR BOARD REVIEW, THE WORKING GROUP PRESENTS THE FORM 990 TO EACH INDIVIDUAL TRUSTEE OF THE BOARD OF TRUSTEES FOR REVIEW AND APPROVAL. 4. ONCE REVIEWED AND APPROVED BY THE BOARD OF TRUSTEES FOR SUBMISSION, THE CHIEF FINANCIAL OFFICER IS NOTIFIED THAT THE FORM IS READY FOR SUBMISSION TO THE IRS. 5. THE CHIEF FINANCIAL OFFICER INSTRUCTS THE EXTERNAL TAX ACCOUNTANTS TO FINALIZE THE IRS FORM 990 AND PRESENT IT FOR SIGNATURE AND ELECTRONIC FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY ANNUALLY, EACH MEMBER OF THE BOARD OF TRUSTEES AND EVERY EXECUTIVE MUST COMPLETE AND SUBMIT A DISCLOSURE FORM TO THE ASSISTANT SECRETARY (AND DIRECTOR OF LEGAL AND COMPLIANCE). INCLUDED IN THE DISCLOSURE FORM IS ANY EMPLOYMENT, BOARD MEMBERSHIP, COMPENSATORY ARRANGEMENTS, MATERIAL INTERESTS, ETC. WITH OTHER ENTITIES. THE ASSISTANT SECRETARY INPUTS ALL OF THE INFORMATION INTO A DATABASE SO THAT MATERIAL TRANSACTIONS CAN BE CHECKED AGAINST ALL OF THE DATA PROVIDED IN THE DISCLOSURE FORMS. ALSO, PURSUANT TO POLICY, THE BOARD MEMBERS AND EXECUTIVES HAVE TO DISCLOSE ANY INTERESTS IN OR RELATIONSHIP WITH AN ENTITY THAT ALTARUM IS PURSUING A TRANSACTION WITH (AT THE TIME OF THE BOARD MEMBER OR EXECUTIVE BECOMING AWARE OF THE POTENTIAL ALTARUM RELATIONSHIP). UPON THE IDENTIFICATION OF A POTENTIAL CONFLICT OF INTEREST, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS, AND THE DISINTERESTED BOARD MEMBERS (IN THE ABSENCE OF THE INTERESTED PERSON) DISCUSS AND VOTE UPON WHETHER OR NOT AN ACTUAL CONFLICT OF INTEREST EXISTS. IF A CONFLICT OF INTEREST EXISTS, THEN ALTERNATIVE TRANSACTIONS OR ARRANGEMENTS WILL BE SOUGHT OUT AND CONSIDERED. IF NO ALTERNATIVE TRANSACTION IS SUITABLE, THE DISINTERESTED MEMBERS OF THE BOARD DETERMINE WHETHER OR NOT THE CONFLICTED TRANSACTION IS IN ALTARUM'S BEST INTERESTS AND DETERMINE IF THE TERMS OF THE TRANSACTION ARE FAIR AND REASONABLE, WITHOUT THE PARTICIPATION OR VOTE BY THE PARTY INVOLVED IN THE CONFLICT OF INTEREST. UPON A CONFLICT OF INTEREST OCCURRING THAT WAS NOT DISCLOSED, THE INTERESTED PERSON MUST EXPLAIN THE FAILURE TO DISCLOSE THE ALLEGED CONFLICT. AFTER CONSIDERING THE EXPLANATION AND CONDUCTING ANY NECESSARY FURTHER INVESTIGATION, THE BOARD WILL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION THE ALTARUM INSTITUTE AUDIT AND COMPENSATION COMMITTEE MET IN THE FIRST QUARTER FOR THE PURPOSE OF REVIEWING, DETERMINING AND RECOMMENDING COMPENSATION FOR THE NON-PRESIDENT AND CEO EXECUTIVES OF ALTARUM INSTITUTE, ALL IN CONSULTATION WITH AN INDEPENDENT COMPENSATION CONSULTANT. THE COMMITTEE EVALUATES THE REASONABLENESS OF THE AMOUNT AND CONFORMITY WITH ALTARUM INSTITUTE POLICIES AND PRIOR APPROVALS. REVIEW OF PRIOR YEAR TOTAL COMPENSATION ALSO OCCURS AT THE FIRST QUARTER MEETING. THE COMMITTEE PROVIDES ITS RECOMMENDATIONS TO THE BOARD OF TRUSTEES FOR FINAL REVIEW AND DETERMINATION (VIA APPROVAL OR ENDORSEMENT, AS THE CASE MAY BE). EXECUTIVE POSITIONS INCLUDED IN THE AUDIT AND COMPENSATION COMMITTEE REVIEW ARE: 1. CHIEF FINANCIAL OFFICER 2. ALL OTHER EXECUTIVES OF THE ORGANIZATION THE FOLLOWING INFORMATION IS CONSIDERED AS PART OF THE DETERMINATION OF COMPENSATION: 1. CURRENT SALARY SURVEY INFORMATION COMPILED BY INDEPENDENT FIRMS: MERCER, TOWERS WATSON, PRM AND GUIDESTAR. 2. INDEPENDENT MARKET COMPENSATION DATA REPORT PREPARED BY AN INDEPENDENT COMPENSATION CONSULTANT (FY18, PEARL MEYER). 3. 13-FIRM NON PROFIT PEER GROUP SELECTED BY THE AUDIT AND COMPENSATION COMMITTEE. 4. REVIEW OF EMPLOYEE PERFORMANCE EVALUATION DATA SUMMARIZED BY THE PRESIDENT AND CEO, FOR ALL NON-PRESIDENT AND CEO EXECUTIVES. FOR THE NON-PRESIDENT AND CEO EXECUTIVES, AFTER DISCUSSION, ALL MEMBERS OF THE AUDIT AND COMPENSATION VOTE ON THE COMPENSATION RECOMMENDED AND PRESENTED. IF THE COMMITTEE APPROVES THE COMPENSATION PACKAGES AS PRESENTED AS REASONABLE AND IN CONFORMITY WITH ALTARUM INSTITUTE POLICIES, THEN THE COMPENSATION COMMITTEE SUBMITS THE COMPENSATION PROVISIONS OUTLINED FOR ENDORSEMENT BY THE BOARD OF TRUSTEES. AFTER REVIEWING THE COMPENSATION PROVISIONS APPROVED BY THE COMPENSATION COMMITTEE, THE BOARD OF TRUSTEES VOTE ON THE RECOMMENDATIONS. FOR THE PRESIDENT AND CEO, THE SAME INFORMATION IS CONSIDERED BY THE BOARD OF TRUSTEES FOR DETERMINATION OF COMPENSATION, AND IS DONE IN CONSULTATION WITH THE INDEPENDENT COMPENSATION CONSULTANT. THE BOARD REVIEWS AND EVALUATES THE PRESIDENT AND CEO'S PERFORMANCE, AND DETERMINES AND APPROVES THE COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 PROCESS FOR MAKING DOCUMENTS AVAILABLE TO THE PUBLIC: ALL AVAILABLE UPON REQUEST FORM 990, PART VII, SECTION A MR. FISH'S EMPLOYER, FLETCHER SPAGHT, INC., REQUIRED HIM TO FORGO THE TRUSTEE FEES REPORTED IN PART VII, SECTION A IN ORDER TO SERVE ON ALTARUM INSTITUTE'S BOARD. FLETCHER SPAGHT, INC. HAS DONE BUSINESS WITH ALTARUM INSTITUTE IN THE PAST, AND ITS CONFLICT OF INTEREST POLICY PROHIBITED MR. FISH FROM RECEIVING ANY TRUSTEE FEES DIRECTLY IF HE WANTED TO SERVE ON THE ALTARUM INSTITUTE BOARD. MR. FISH ENTERED INTO AN AGREEMENT WITH ALTARUM INSTITUTE WHEREBY HE DIRECTED THAT THE TRUSTEE FEES BE PAID DIRECTLY TO FLETCHER SPAGHT, INC. INSTEAD. FOR PURPOSES OF FULL DISCLOSURE, THE FEES ARE REPORTED IN PART VII, SECTION A AS IF PAID TO HIM DIRECTLY. FORM 990, PART IX, LINE 11G SUBCONTRACT FEES: PROGRAM SERVICE EXPENSES 7,634,193. MANAGEMENT AND GENERAL EXPENSES 4,459,015. FUNDRAISING EXPENSES 434,636. TOTAL EXPENSES 12,527,844. CONSULTING: PROGRAM SERVICE EXPENSES 312,048. MANAGEMENT AND GENERAL EXPENSES 182,263. FUNDRAISING EXPENSES 17,766. TOTAL EXPENSES 512,077. WORK ORDER LABOR: PROGRAM SERVICE EXPENSES 54,222. MANAGEMENT AND GENERAL EXPENSES 31,672. FUNDRAISING EXPENSES 3,087. TOTAL EXPENSES 88,981. HONARARI/INCENTIVES: PROGRAM SERVICE EXPENSES 3,413. MANAGEMENT AND GENERAL EXPENSES 1,993. FUNDRAISING EXPENSES 194. TOTAL EXPENSES 5,600. FORM 990, PART XI, LINE 9: INCOME FROM SUBSIDIARIES 3,831,968. FORM 990, PART XII, LINE 3B REQUIRED AUDIT SINGLE AUDIT COMPLETED IN ACCORDANCE WITH UNIFORM GUIDANCE FEDERAL CONSULTING ASSET MANAGEMENT INC 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 383609582 HOLDING CO. MI N/A C 3831968 20993518 1.00000 1 KAI RESEARCH INC 11300 ROCKVILLE PIKE SUITE 500 ROCKVILLE MD 20852 521485172 HEALTH SERVICES MD FCAM C -1243062 1941794 1.00000 1 PALLADIAN PARTNERS INC 8484 GEORGIA AVENUE SUITE 400 SILVER SPRING MD 20910 521974660 HEALTH COMMUNICATION SERVICES MD FCAM C 728847 16288602 1.00000 1 PAYFORMANCE SOLUTIONS INC 321 NORTH CLARK STREET SUITE 500 CHICAGO IL 60654 821173573 SOFTWARE TECHNOLOGY IL FCAM C -2563935 388307 1.00000 1 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 1 0 0 FEDERAL CONSULTING ASSET MANAGEMENT Q 530156 COST KAI RESEARCH INC A 48064 COST KAI RESEARCH INC K 80568 COST KAI RESEARCH INC L 488981 COST KAI RESEARCH INC M 23398 COST KAI RESEARCH INC P 67466 COST KAI RESEARCH INC Q 2344450 COST PALLADIAN PARTNERS INC L 46667 COST PALLADIAN PARTNERS INC M 88980 COST PALLADIAN PARTNERS INC P 41266 COST PALLADIAN PARTNERS INC Q 3334805 COST PAYFORMANCE SOLUTIONS INC M 2483 COST PAYFORMANCE SOLUTIONS INC Q 50791 COST