2019-05-13T13:16:00-05:00 2018-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 191037341 990 2017-07-01 232216041 GOOD SHEPHERD REHABILITATION NETWORK GOOD 6107763228 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 RONALD J PETULA SVP OF FINANCE & CFO 6107763228 2019-05-01 1 JULIUS C GREEN CPA P00350393 2159720701 96.89.178.154 2019-05-01 10:57:06 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 D55C9BF7EA9CC92FF5CD8A3B56631CEAE08BA54E 2017 2019-02-21 02:37:17Z RONALD J PETULA GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 105899000 0 X WWW.GOODSHEPHERDREHAB.ORG X 1908 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 21 18 346 314 543091 170700 5403983 6157947 37061944 40940200 16720274 18759681 2519065 1574878 61705266 67432706 3091616 5148140 0 0 23258354 23862308 28800 31200 2609266 20705453 23088118 47084223 52129766 14621043 15302940 365663342 382134312 165929260 161174871 199734082 220959441 X MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION. 0 0 30099349 5148140 40940200 GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), BASED IN ALLENTOWN, PENNSYLVANIA, IS A NATIONALLY RECOGNIZED REHABILITATION LEADER, OFFERING A CONTINUUM OF CARE FOR PEOPLE WITH PHYSICAL AND COGNITIVE DISABILITIES AND SPECIALIZING IN ASSISTIVE AND REHABILITATION TECHNOLOGY. SPECIALIZED INPATIENT AND OUTPATIENT POST-ACUTE CARE PROGRAMS OFFERED BY GSRN INCLUDE: STROKE, ORTHOPEDICS, BRAIN INJURY, SPINE AND JOINT PAIN, SPINAL CORD INJURY, PEDIATRICS, MULTIPLE SCLEROSIS, AND AMPUTATION. GOOD SHEPHERD OPERATES: 34 OUTPATIENT SITES; 4 INPATIENT SITES; A LONG-TERM ACUTE CARE HOSPITAL; 2 LONG-TERM CARE HOMES FOR PEOPLE WITH SEVERE DISABILITIES; AND AN INDEPENDENT LIVING FACILITY. GOOD SHEPHERD ALSO IS THE MAJORITY OWNER OF A JOINT VENTURE WITH PENN MEDICINE IN PHILADELPHIA, PENNSYLVANIA. GOOD SHEPHERD PENN PARTNERS ("GSPP") PROVIDES THE PHILADELPHIA REGION WITH A CONTINUUM OF POST-ACUTE CARE THAT INCLUDES INPATIENT AND OUTPATIENT REHABILITATION AND LONG-TERM ACUTE CARE. TWENTY (20) GSPP PENN THERAPY & FITNESS LOCATIONS PROVIDE OUTPATIENT REHABILITATION SERVICES THROUGHOUT THE GREATER PHILADELPHIA AREA, WHILE PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY SERVICES ARE PROVIDED WITHIN PENN MEDICINE'S THREE ACUTE-CARE HOSPITALS. GSRN WAS FOUNDED IN 1908 WHEN THE REV. JOHN AND ESTELLA RAKER INVITED A DISABLED ORPHAN NAMED VIOLA INTO THEIR ALLENTOWN, PENNSYLVANIA HOME. GSRN IS AFFILIATED WITH THE EVANGELICAL LUTHERAN CHURCH IN AMERICA AND PROVIDES REHABILITATION SERVICES AT MORE THAN 70 LOCATIONS IN 9 EASTERN PENNSYLVANIA COUNTIES. GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GSRN IS THE PARENT ORGANIZATION OF 5 TAX-EXEMPT AFFILIATES THAT OFFER MANY LEVELS OF REHABILITATION CARE. GSRN IS ALSO THE PARENT ORGANIZATION OF ONE TAXABLE AFFILIATE THAT IS A SELF-INSURANCE COMPANY. AS THE PARENT ORGANIZATION, GSRN OPERATES ALL CORPORATE ADMINISTRATIVE FUNCTIONS FOR THE GOOD SHEPHERD AFFILIATES, INCLUDING BUT NOT LIMITED TO ADMINISTRATION, DIETARY, FINANCE, FUNDRAISING, HUMAN RESOURCES, INFORMATION SYSTEMS, MAINTENANCE, MARKETING AND PASTORAL CARE. 30099349 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 1 X 392 0 1 346 1 1 1 0 0 0 0 0 0 0 0 0 X 21 18 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA FL MN X RONALD J PETULA SVP OF FINANCE 6107763228 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 18103 X GARY R SCHMIDT CHAIR 0.65 1.95 X X 0 0 0 F MARK GUMZ VICE CHAIR 0.25 0.75 X X 0 0 0 LAURIE STEWART TREASURER 0.25 0.75 X X 0 0 0 JOHN C RICHTER SECRETARY 0.25 0.75 X X 0 0 0 JOHN KRISTEL PRESIDENT/CEO 30.50 29.50 X X 696105 0 31237 DAVID G DECAMPLI CHAIR (UNTIL 9/17) 0.65 1.95 X X 0 0 0 ALVARO DIAZ TRUSTEE 0.25 0.75 X 0 0 0 SANDRA BODNYK TRUSTEE 0.25 0.75 X 0 0 0 PAUL EMRICK TRUSTEE 0.25 0.75 X 0 0 0 JAAN PETER NAKTIN MD TRUSTEE 0.25 0.75 X 0 0 0 DONALD SNYDER TRUSTEE 0.25 0.75 X 0 0 0 JAN S HELLER TRUSTEE 0.25 0.75 X 0 0 0 JONATHAN WARNER TRUSTEE 0.25 0.75 X 0 0 0 JAMES J DALEY MO TRUSTEE 1.00 59.00 X 0 187493 15097 STEVEN MORRISON TRUSTEE 0.25 0.75 X 0 0 0 PETER D QUINN TRUSTEE 0.25 0.75 X 0 0 0 TINA RICHARDSON TRUSTEE 0.25 0.75 X 0 0 0 MAURA TOPPER TRUSTEE 0.25 0.75 X 0 0 0 THOMAS LYNCH TRUSTEE 0.25 0.75 X 0 0 0 PAMELA DECAMPLI TRUSTEE 0.25 0.75 X 0 0 0 POLLY BESTE TRUSTEE 0.25 0.75 X 0 0 0 DAVID FESSLER TRUSTEE 0.25 0.75 X 0 0 0 ELSBETH G HAYMON TRUSTEE (UNTIL 9/17) 0.25 0.75 X 0 0 0 SANDRA JARVA WEISS ESQ TRUSTEE (UNTIL 9/17) 0.25 0.75 X 0 0 0 DANIEL J WILSON PHD TRUSTEE (UNTIL 9/17) 0.25 0.75 X 0 0 0 MIKE CIRBA CIO 36.50 23.50 X 185566 0 10201 RONALD J PETULA SVP & CFO 30.50 29.50 X 313122 0 13936 SAMUEL A MIRANDA JR SVP & CNO 10.00 50.00 X 279161 0 25264 FRANK J HYLAND EXECUTIVE DIRECTOR GSRN 40.00 X 239901 0 8341 MICHAEL A BONNER SVP STRATEGIC PLNG/BUSDEV 40.00 X 206869 0 15680 DAVID F LYONS VP DEVELOPMENT 40.00 X 169851 0 26827 GEORGINE A OLEXA VP LEGAL AFFAIRS 40.00 X 167512 0 14925 KRISTEN M MELAN ADMIN DIRECTOR HUMAN RESOURCES 40.00 X 151863 0 7063 2409950 187493 168571 24 0 1 0 METZ CULINARY MANAGEMENT TWO WOODLAND DRIVE DALLAS PA 18612 DIETARY / FOOD SERVICES 2000031 MEDMATICA CONSULTING 18 BARRINGTON LANE CHESTER LANE PA 19425 CONSULTANTS 1111843 HEALTHCARE PERFORMANCE GROUP PO BOX 588 SPRING HILLS KS 66083 CONSULTANTS 796876 ULTIMATE SOFTWARE GROUP PO BOX 930953 ATLANTA GA 31193 SUBSCRIPTION FEES (PAYROLL) 694900 ACKLEY SWEENEY ADVERTISING INC 9 NORTH 4TH STREET EMMAUS PA 18049 ADVERTISING 633767 19 6157947 318670 6157947 MANAGEMENT FEES 561000 40940200 40940200 40940200 4555178 4555178 155208 289677 -134469 -134469 -134469 52381120 38176617 14204503 14204503 14204503 EXPENSE REIMBURSEMENT 900099 1076316 1076316 MANAGEMENT SERVICES 900099 543091 543091 CLUBHOUSE REVENUE 621500 71282 71282 18658 18658 1709347 67432706 40940200 543091 19791468 X 5148140 5148140 2073630 804256 1269374 17427483 8630339 7798108 999036 629903 378138 222225 29540 2459471 1363907 986698 108866 1271821 665723 543210 62888 236852 236852 116800 116800 31200 31200 542369 542369 10104063 4374889 5471389 257785 982323 982323 1977391 1214292 430172 332927 1422352 1273852 148500 209676 75493 127576 6607 3894985 3894985 1589857 1563707 26150 137380 137380 UBIT TAX 137696 137696 CORPORATE ALLOCATIONS 683363 22128 661235 REPAIRS & MAINTENANCE 424148 423168 980 DUES & SUBSCRIPTIONS 223824 93401 124776 5647 405039 172931 144723 87385 52129766 30099349 19421151 2609266 45402519 40969839 691088 452435 943771 654676 953521 429184 51260890 25547427 22013811 25713463 113180270 143518612 161467045 149537291 21011317 20858812 365663342 382134312 7697332 9223394 102828906 100512483 1652116 55403022 49786878 165929260 161174871 X 154662188 175538492 13308548 13030672 31763346 32390277 199734082 220959441 365663342 382134312 X 15302940 -1621380 7543799 X X 0 1 X 1 0 X 6568155 6084660 4883660 5403983 6157947 29098405 6568155 6084660 4883660 5403983 6157947 29098405 29098405 6690029 13720745 13430221 6918278 4555178 45314451 245390 264363 133621 168420 90348 902142 1189466 1223057 1197183 1958491 1094974 6663171 81978169 200735180 0.35500 0.33810 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER REVENUES - 2013 AMOUNT: $ 34,484. 2014 AMOUNT: $ 19,732. 2015 AMOUNT: $ 13,005. 2016 AMOUNT: $ 4,102. 2017 AMOUNT: $ 12,898. EXPENSE REIMBURSEMENT - 2013 AMOUNT: $ 1,150,457. 2014 AMOUNT: $ 1,133,294. 2015 AMOUNT: $ 1,115,191. 2016 AMOUNT: $ 1,096,557. 2017 AMOUNT: $ 1,076,316. TRANSPORTATION - 2013 AMOUNT: $ 4,525. 2014 AMOUNT: $ 1,630. CLUBHOUSE REVENUE - 2014 AMOUNT: $ 68,401. 2015 AMOUNT: $ 68,987. 2016 AMOUNT: $ 69,782. 2017 AMOUNT: $ 0. CENTER VALLEY LAND REVENUE - 2016 AMOUNT: $ 5,760. 2017 AMOUNT: $ 5,760. INSURANCE REIMBURSEMENTS - 2016 AMOUNT: $ 782,290. 24819057 722026 1620257 1222724 25938616 22505243 365453 3129411 1181050 24819057 22889082 1275753 -504390 1155202 22505243 23846677 157199 -29205 1085589 22889082 21857579 357470 2655570 1023942 23846677 0.06000 0.94000 0.00000 0 0 9321875 9321875 6413686 3634513 2779173 453647 200314 253333 25181115 21204460 3976655 9890567 508140 9382427 25713463 49575192 C ALTERNATIVE INVESTMENTS, AT COST 17684108 C ALTERNATIVE INVESTMENTS, ABSOLUTE RETURN 82277991 F 149537291 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 12141781 BENEFICIAL INTEREST IN CHARITABLE REMAINDER TRUSTS 7075706 DEFERRED FINANCING COSTS, NET 1524731 DUE FROM AFFILIATE 116594 20858812 CHARITABLE GIFT ANNUITIES 1345412 WORKERS' COMPENSATION 1955148 ANNUITIES PAYABLE 53304 DEFINED CONTRIBUTION PLAN LIABILITY 812518 AMOUNTS DUE TO AFFILIATES 43223223 DERIVATIVE FINANCIAL INSTRUMENT 2397273 49786878 X 67043707 -1621380 1853290 231910 66811797 620909 620909 67432706 46264516 289677 289677 45974839 6154927 6154927 52129766 PART V, LINE 4: GOOD SHEPHERD'S ENDOWMENTS PROVIDE INCOME IN PERPETUITY FOR PROGRAMS AND SERVICES, INCLUDING: RESEARCH, TECHNOLOGY, PEDIATRICS, LONG TERM CARE OPERATIONS AND RECREATION, EDUCATION, GENERAL AND NEUROREHABILITATION PROGRAMS, AND FOR THE GENERAL SUPPORT OF GOOD SHEPHERD'S OPERATIONS. PART X, LINE 2: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 5,139,623. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 1,314,891. PENSION LIABILITY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 1,267,170. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -102,235. VALUATION LOSS, BENEFICIAL INTEREST IN PERPETUAL TRUSTS -95,095. OTHER CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 19,445. INVESTMENT MANAGEMENT FEES NETTED TO INCOME ON F/S -542,369. GRANTS TO OTHER ORGANIZATIONS NETTED ON F/S -5,148,140. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -289,677. GOOD SHEPHERD DEVELOPMENT LLC REVENUES 910,586. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 289,677. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT MANAGEMENT FEES NETTED TO INCOME ON F/S 542,369. GOOD SHEPHERD DEVELOPMENT LLC EXPENSES 464,418. GRANTS TO OTHER ORGANIZATIONS NETTED ON F/S 5,148,140. X X X X X 1 SCHULTZ AND WILLIAMS 325 CHESTNUT STREET SUITE 700 PHILADELPHIA PA 19106 DIRECT MAIL CONSULTING 0 0 31200 -31200 31200 -31200 PA FL MN SCHEDULE G, PART I, LINE 2B, COLUMN (V) THE TOTAL AMOUNT PAID TO SCHULTZ AND WILLIAMS FOR FISCAL YEAR JUNE 30, 2018 WAS $31,200. THE $31,200 REPORTED IN SCHEDULE G, PART I RELATES TO DIRECT MAIL CONSULTING. THE AMOUNT OF CONTRIBUTIONS RECEIVED AS A RESULT OF THIS CONSULTING COULD NOT BE EASILY DETERMINED. 1 GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 232215800 501(C)(3) 1263473 0 N/A N/A CHARITABLE ACTIVITIES GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 231371947 501(C)(3) 3884667 0 N/A N/A CHARITABLE ACTIVITIES 2 0 PART I, LINE 2: ALL RECIPIENTS ARE AFFILIATED TAX-EXEMPT ORGANIZATIONS. GSRN SERVES AS THE PARENT ENTITY AND IS AWARE OF THE OPERATIONS AND USE OF FUNDS RECEIVED. X X X X X 0 0 0 0 0 0 0 1 0 JOHN KRISTEL PRESIDENT/CEO 560242 0 135863 0 0 0 14400 0 16837 0 727342 0 0 0 JAMES J DALEY MO TRUSTEE 0 177406 0 10087 0 0 0 1263 0 13834 0 202590 0 0 MIKE CIRBA CIO 174154 0 11412 0 0 0 9255 0 946 0 195767 0 0 0 RONALD J PETULA SVP & CFO 279047 0 34075 0 0 0 2110 0 11826 0 327058 0 0 0 SAMUEL A MIRANDA JR SVP & CNO 249112 0 30049 0 0 0 15329 0 9935 0 304425 0 0 0 FRANK J HYLAND EXECUTIVE DIRECTOR GSRN 219201 0 20700 0 0 0 1617 0 6724 0 248242 0 0 0 MICHAEL A BONNER SVP STRATEGIC PLNG/BUSDEV 184425 0 22444 0 0 0 14692 0 988 0 222549 0 0 0 DAVID F LYONS VP DEVELOPMENT 163230 0 6621 0 0 0 10899 0 15928 0 196678 0 0 0 GEORGINE A OLEXA VP LEGAL AFFAIRS 158482 0 9030 0 0 0 8489 0 6436 0 182437 0 0 0 KRISTEN M MELAN ADMIN DIRECTOR HUMAN RESOURCES 121226 0 30637 0 0 0 5656 0 1407 0 158926 0 0 0 PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2018, A PERFORMANCE PAYMENT WAS ACHIEVED. THE ACTUAL PAYMENT OCCURS IN SEPTEMBER OF THE FOLLOWING FISCAL YEAR. THIS IS NOT GUARANTEED EACH YEAR. A LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RCE8 2012-12-20 32511568 SEE PART VI 0 0 0 B LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RAZ3 2011-12-01 34840000 SEE PART VI 0 0 0 C LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RDA5 2016-06-16 45275609 SEE PART VI 0 0 0 A 1880000 32511568 495514 4050059 27968861 2015 0 1 1 1 B 9440000 34840000 34840000 2011 1 0 1 1 C 45275609 717240 44558369 2016 0 1 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 1 0 0 0 1 1 B 0 0 1 0 1 1 MERRILL LYNCH CAPITAL SERVICES 24.500000000000 0 0 0 0 1 C 0 0 0 1 0 0 0 0 1 A 1 B 1 C 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: LEHIGH COUNTY GENERAL PURPOSE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 12/20/2017 ISSUER NAME: LEHIGH COUNTY GENERAL PURPOSE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 04/01/2018 PART I, COLUMN F: DESCRIPTION OF PURPOSE: BOND ISSUE A: ADVANCE REFUNDING OF 2004 BONDS, CAPITAL PROJECTS, AND ISSUANCE COSTS BOND ISSUE B: TO REFUND THE 2007B AND 2008A BONDS BOND ISSUE C: PROVIDE FUNDS TO BE USED FOR ADVANCE REFUNDING OF SERIES A OF 2007 BONDS AND PAYMENT OF ISSUANCE COSTS OF THE 2016 BONDS PART IV LINE 6A: THE ESCROW FUND HAS BEEN INVESTED BEYOND THE TEMPORARY PERIOD BUT AT A YIELD BELOW THE YIELD OF THE BONDS. X 8 318670 CLOSING PRICE 0 1 1 PART I, COLUMN (B): THE NUMBER OF CONTRIBUTIONS IN COLUMN B REPRESENTS THE NUMBER OF CONTRIBUTORS. PART I, LINE 32B: GOOD SHEPHERD REHABILIATION NETWORK ("GSRN") USES A THIRD PARTY TO SELL STOCK THAT IS RECEIVED AS A GIFT. GSRN HAS ACCOUNT ESTABLISHED WITH MERRILL LYNCH, ALLENTOWN TO RECEIVE STOCK GIFTS. GSRN THEN AUTHORIZES THE MERRILL LYNCH BROKER TO SELL THE SHARES AND DEPOSIT PROCEEDS IN THE ACCOUNT WHENEVER A GIFT OF STOCK IS MADE. FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE GOOD SHEPHERD REHABILITATION NETWORK'S ("GSRN") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSRN ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A TWO-THIRDS OF THE ORGANIZATION'S TRUSTEES SHALL BE ELECTED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S BYLAWS MAY BE ALTERED, AMENDED, OR REPEALED BY THE BOARD. IN ADDITION, THE AMENDMENT SHALL BE APPROVED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA BEFORE TAKING EFFECT. FORM 990, PART VI, SECTION B, LINE 11B THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS IS PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND THE SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) DELEGATE RESPONSIBILITY FOR ADHERENCE TO ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES / COMPENSATION COMMITTEE OF THE BOARD (THE COMMITTEE). THE COMMITTEE IS PERMITTED TO ENGAGE EXTERNAL RESOURCES AS NECESSARY TO EDUCATE THEM ON NEW LEGAL OR REGULATORY GUIDELINES, MARKET TRENDS AND TO SUPPORT DELIBERATIONS AND DECISION MAKING RELATED TO EXECUTIVE COMPENSATION. THE COMMITTEE SELECTED AND UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, MERCER- A MARSH & MCCLENNAN COMPANY, (THE CONSULTANT) AS A RESOURCE TO ASSIST WITH DECISIONS RELATED TO EXECUTIVE COMPENSATION. IN ACCORDANCE WITH THE COMMITTEE'S ANNUAL WORK PLAN, THE COMMITTEE REVIEWED AT THE JUNE 2018 MEETING THE FOLLOWING: MERCER (US), INC. CERTIFIES THAT IT (1) IS A COMPENSATION CONSULTING FIRM, (2) PERFORMS COMPENSATION VALUATION STUDIES OF THIS TYPE ON A REGULAR BASIS, AND (3) IS QUALIFIED TO PERFORM THE VALUATIONS OF THE TYPE OF PROPERTY OR SERVICES INVOLVED. DURING MERCER'S REVIEW OF EXECUTIVE COMPENSATION, IT WAS FOUND IN THEIR OPINION TO BE FAIR, REASONABLE AND MARKET APPROPRIATE BASED ON THEIR ANALYSIS OF COMPETITIVE COMPENSATION AND BENEFIT PRACTICES FOR FUNCTIONALLY COMPARABLE POSITIONS IN SIMILARLY SITUATED ORGANIZATIONS. ALL OF THE COMPENSATION MEETINGS ARE FORMALLY DOCUMENTED CONSISTENT WITH BEST GOVERNANCE PRACTICES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND POLICIES ARE AVAILABLE UPON REQUEST. FORM 990, PART VI, LINE 1: THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRS OF ALL THE BOARD COMMITTEES AS WELL AS THE CHAIR AND VICE CHAIR OF THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE CAN ACT ON BEHALF OF THE BOARD OF TRUSTEES IN MOST CASES. ANY FUNDAMENTAL CHANGES WILL GO TO THE FULL BOARD. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 4,374,889. MANAGEMENT AND GENERAL EXPENSES 5,471,389. FUNDRAISING EXPENSES 257,785. TOTAL EXPENSES 10,104,063. FORM 990, PART XI, LINE 9: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 5,139,623. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 1,314,891. PENSION LIABILITY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 1,267,170. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -102,235. VALUATION LOSS, BENEFICIAL INTEREST IN PERPETUAL TRUSTS -95,095. OTHER CHANGES IN TEMPORARILY RESTRICTED NET ASSETS 19,445. FORM 990, PART XI, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. GOOD SHEPHERD GROUP LLC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 201289638 REHABILITATION PRODUCT DEVELOPMENT PA 0 0 GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD DEVELOPMENT LLC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 474366219 DEVELOP, OWN & MANAGE BUSINESSES AND SERVICES RELATED TO GSRN'S MISSION PA 464418 38925569 GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232215800 OPERATES TWO SKILLED NURSING FACILITIES FOR THE SEVERELY DISABLED PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 1 GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233073390 PROVIDES INDEPENDENT LIVING APTS FOR DISABLED, LOW-INCOME ADULTS PA 501(C)(3) LINE 10 GOOD SHEPHERD REHABILITATION NETWORK 1 PHILADELPHIA POST-ACUTE PARTNERS LLC 1800 LOMBARD STREET PHILADELPHIA PA 19146 208283421 OPERATES INPATIENT REHAB HOSP, ACUTE CARE HOSP & 8 OUTPATIENT FACILITIES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 1 THE ALLENTOWN SPECIALTY HOSPITAL INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233009874 PROVIDES INPATIENT SVCS THROUGH OPERATION OF A LONG-TERM ACUTE CARE HOSP PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 1 THE GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 231371947 PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT REHABILITATION SERVICES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 1 GOOD SHEPHERD RECIPROCAL RISK RENTENTION GROUP 7301 RIVERS AVENUE SUITE 230 NORTH CHARLESTON SC 29406 204065112 RISK RETENTION GROUP SC GOOD SHEPHERD REHABILITATION NETWORK C 9144334 1.00000 1 0 1 1 0 0 1 0 0 1 0 0 1 0 0 1 0 1 1 1 GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC R 1943776 COST GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC B 1263473 COST GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC L 10163866 COST GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC Q 2163237 COST GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP R 1710146 COST GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP S 704604 COST PHILADELPHIA POST-ACUTE PARTNERS LLC L 613876 COST PHILADELPHIA POST-ACUTE PARTNERS LLC Q 20985870 COST PHILADELPHIA POST-ACUTE PARTNERS LLC F 1875300 COST THE ALLENTOWN SPECIALTY HOSPITAL INC Q 4463223 COST THE ALLENTOWN SPECIALTY HOSPITAL INC R 1094670 COST THE ALLENTOWN SPECIALTY HOSPITAL INC L 4425103 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL L 33843394 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL I 113287 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL R 45076706 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL Q 14838889 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL O 15381553 COST THE GOOD SHEPHERD REHABILITATION HOSPITAL B 3884667 COST GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP Q 750000 COST