2016-11-07T16:15:03-06:00 2016-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2015-07-01 231352284 INGLIS HOUSE INGL 2158785600 2600 BELMONT AVENUE PHILADELPHIA PA 19131 KEVIN KELLY CFO 2158785600 2016-11-07 1 JULIUS C GREEN CPA P00350393 2159720701 2015 2017-02-10 21:41:12Z KEVIN KELLY 2600 BELMONT AVENUE PHILADELPHIA PA 19131 55912427 0 X WWW.INGLIS.ORG X 1877 PA OPERATION OF A NURSING FACILITY FOR PEOPLE WITH SEVERE PHYSICAL DISABILITIES. 4 4 715 1558 0 0 1871529 871249 43341247 39469402 11533647 6880751 300459 196529 57046882 47417931 1518 4941 0 0 32172096 33139922 0 0 0 22083724 20012394 54257338 53157257 2789544 -5739326 153029186 131486393 45414826 40873615 107614360 90612778 X INGLIS' MISSION IS TO ENABLE PEOPLE WITH DISABILITIES - AND THOSE WHO CARE FOR THEM - TO ACHIEVE THEIR GOALS AND LIVE LIFE TO THE FULLEST. 0 0 43099532 4941 39469402 INGLIS' MISSION IS TO ENABLE PEOPLE WITH DISABILITIES - AND THOSE WHO CARE FOR THEM - TO ACHIEVE THEIR GOALS AND LIVE LIFE TO THE FULLEST. THIS MISSION IS ACCOMPLISHED THROUGH A RANGE OF PROGRAMS, FACILITIES AND STRATEGIC INITIATIVES DESIGNED TO EMPOWER ADULTS (AGES 18 AND OLDER) WITH SEVERE PHYSICAL DISABILITIES. THE INGLIS ORGANIZATION GREW OUT OF THE WORK OF INGLIS HOUSE, A PUBLIC CHARITY FOUNDED IN 1877 TO PROVIDE LONG-TERM, REHABILITATIVE MEDICAL AND NURSING CARE FOR PEOPLE WITH PHYSICAL DISABILITIES. TODAY, INGLIS IS A NATIONAL LEADER IN PROVIDING COMPREHENSIVE CARE AND SERVICES FOR PEOPLE WITH PARALYSIS, MULTIPLE SCLEROSIS, CEREBRAL PALSY, SPINAL CORD AND OTHER NEUROLOGICAL DISORDERS. INGLIS SUPPORTS ITS CONSUMERS WITH 24-HOUR CARE AT INGLIS HOUSE, A 252-BED SKILLED NURSING FACILITY; ACROSS THE REGION THROUGH 301 ACCESSIBLE APARTMENTS IN SOUTHEASTERN PA AND SOUTHERN NJ; AND IN THE COMMUNITY THROUGH CARE MANAGEMENT, ADULT DAY, EMPLOYMENT SERVICES PROGRAMS AND ADAPTED TECHNOLOGY TRAINING.DURING FY 2016, INGLIS SERVED OVER 1,000 PEOPLE DIRECTLY, AND MANY MORE INDIRECTLY THROUGH ACCESSIBLE HOUSING, COMMUNITY SUPPORT SERVICES, ITS WEBSITE, WWW.INGLIS.ORG, THE INGLIS AWARDS IN CONTINUING EXCELLENCE PROGRAM AND OTHER OUTREACH ACTIVITIES.PROGRAM/SERVICES ACCOMPLISHMENTS:INGLIS HOUSE OFFERS ITS 252 ADULT RESIDENTS A FULL RANGE OF PHYSICAL, OCCUPATIONAL AND SPEECH THERAPIES; SOCIAL ENRICHMENT PROGRAMS INCLUDING COMPUTER AND EDUCATION PROGRAMS, EMPLOYMENT OPPORTUNITIES AND RELIGIOUS PROGRAMS IN A VIBRANT COMMUNITY CHARACTERIZED BY DIGNITY AND RESPECT. THE AVERAGE AGE IS 44 FOR MALE RESIDENTS AND 55 FOR FEMALE RESIDENTS. THE AVERAGE LENGTH OF STAY IS 10.99 YEARS. INGLIS HAS BEEN NAMED A CENTER FOR THE PROMOTION OF EXCELLENCE IN LONG TERM CARE BY THE NATIONAL MULTIPLE SCLEROSIS SOCIETY. ONLY NINE OTHER ORGANIZATIONS IN THE US HAVE EARNED THIS DESIGNATION.ACCOMPLISHMENTS INCLUDE:THE COMPLETION OF A MULTI-YEAR STRATEGIC INITIATIVE (WHICH BEGAN IN FY2011) TO TRANSFORM INGLIS HOUSE FROM AN INSTITUTIONAL MODEL TO SMALLER "NEIGHBORHOODS," ADAPTING PERSON-CENTERED CARE BEST PRACTICES TO SERVE OUR COMMUNITY. IN FY 2016, WE ESTABLISHED ALL SIX NEIGHBORHOODS AND 81 PERCENT OF STAFF COMPLETED PERSON FIRST TRAINING, WHICH PROVIDES A BEHAVIORAL FOUNDATION FOR THIS CARE MODEL. EACH HAS BEEN STAFFED WITH A CLINICAL LEADER TO OVERSEE THE HEALTH CARE OF RESIDENTS, AND A LIFE LEADER WHO COORDINATES NON-CLINICAL, DAY-TO-DAY ACTIVITIES. NEIGHBORHOOD LEADERS ARE BUILDING PARTNERSHIPS WITH KEY DEPARTMENTS, SUCH AS DIETARY, RESIDENT SERVICES, THERAPY AND OTHERS, ON HOW THEY CAN BEST WORK TOGETHER IN SUPPORT OF NEIGHBORHOOD LIFE. ALSO, NEIGHBORHOOD HOMEMAKERS WERE RECRUITED, INTERVIEWED, AND SELECTED FROM INTERNAL STAFF TO JOIN THE NEIGHBORHOOD LEADERSHIP TEAM.NEIGHBORHOOD HALLWAY AND DINING SOLARIUM IMPROVEMENTS HAVE BEEN COMPLETED, WITH RESIDENTS AND STAFF OF EACH NEIGHBORHOOD CONTRIBUTING TO RENOVATION DECISIONS. WE ELIMINATED AN OUTMODED TRAY LINE DELIVERY SYSTEM AND PANTRIES HAVE ALSO BEEN INSTALLED, ENSURING THAT SNACKS ARE AVAILABLE ON THE UNIT AROUND-THE-CLOCK, SEVEN-DAYS-A-WEEK. BREAKFAST IS BEING PREPARED TO ORDER IN TWO NEIGHBORHOODS, AND WILL EXPAND TO OTHER NEIGHBORHOODS.OUR NEW WELLNESS & REHABILITATION CENTER, COMPLETED DURING THE PREVIOUS FISCAL YEAR, IS TREMENDOUSLY POPULAR WITH RESIDENTS. SEVENTY PERCENT PARTICIPATE IN OUR RESTORATIVE PROGRAMS AND/OR USE THE CARDIOVASCULAR AND STRENGTH TRAINING EQUIPMENT. THIS YEAR, THE CENTER OFFERED WEEKLY GROUPS TO EDUCATE RESIDENTS ON HEALTHY EATING HABITS, AND A COOKBOOK CONTAINING HEALTHY RECIPES WAS CREATED AND SOLD TO THE INGLIS COMMUNITY. THE DEPARTMENT ALSO COLLABORATED WITH NEIGHBORHOOD LEADERS TO PRESENT BIWEEKLY COOKING GROUPS. A HIGH INTENSITY INTERVAL TRAINING PROGRAM WAS INITIATED BY A MEMBER OF OUR PHYSICAL THERAPY STAFF IN CONJUNCTION WITH OUR STAFF PHYSIATRIST AND IS NOW IN ITS SIXTH EIGHT-WEEK CYCLE. ELEVEN RESIDENTS PARTICIPATE IN THIS INTENSIVE EXERCISE PROGRAM TO IMPROVE THEIR ENDURANCE AND CARDIAC HEALTH. RESIDENTS REPORT LESS FATIGUE WHEN COMPLETING TASKS SUCH AS WATERING PLANTS, REACHING INTO WASHING MACHINES OR FOLDING LAUNDRY. THE INGLIS ADAPTED TECHNOLOGY PROGRAM (ATP) PROVIDES A VITAL CONNECTION FOR INGLIS RESIDENTS AND ADULT DAY CLIENTS TO ACCESS TECHNOLOGY FOR EDUCATIONAL, RECREATIONAL AND SOCIAL PURPOSES. IN FY 2016, MORE THAN 50% OF INGLIS RESIDENTS USED THE COMPUTER LAB REGULARLY, WITH TECHNOLOGY PERSONNEL PROVIDING AN AVERAGE OF 2,679 HOURS OF SERVICE IN THE LAB. IN ADDITION, 111 RESIDENTS RECEIVED IN-ROOM TECHNOLOGY SUPPORT FOR THEIR PERSONAL DEVICES. THE DEPARTMENT IS SOUGHT OUT TO PROVIDE ADAPTED TECHNOLOGY EDUCATION AND HANDS ON EXPERIENCE TO SUPPORT THE EDUCATION OF OCCUPATIONAL, PHYSICAL, SPEECH AND RECREATION THERAPISTS AS WELL AS MEDICAL AND NURSING STUDENTS AT DREXEL UNIVERSITY, TEMPLE UNIVERSITY, PHILADELPHIA UNIVERSITY, HARCUM COLLEGE, UNIVERSITY OF THE SCIENCES, UNIVERSITY OF PENNSYLVANIA, PENNSYLVANIA COLLEGE OF OSTEOPATHIC MEDICINE AND THOMAS JEFFERSON UNIVERSITY.THE COMMUNITY COMPUTING PROGRAM MAINTAINS FUNDING FROM THE PEW CHARITABLE TRUSTS FOR THE FIFTH YEAR OF COMPUTER ACCESS ASSESSMENT AND TRAINING TO PEOPLE WITH DISABILITIES LIVING IN THE COMMUNITY. WE HAVE PARTNERED WITH THE LIBRARY FOR THE BLIND AND PHYSICALLY DISABLED, MAGEE REHAB, ALS FOUNDATION, MDA/ALS HOPE FOUNDATION, HELP USA (AN ORGANIZATION THAT PROVIDES SUPPORTIVE SERVICES TO HELP PEOPLE BECOME AND REMAIN INDEPENDENT), PATF (PENNSYLVANIA ASSISTIVE TECHNOLOGY FOUNDATION), AND OTHERS TO PROVIDE THIS SERVICE. WE CONTINUE TO NETWORK AND FORM PARTNERSHIPS WITH OTHER TRI-STATE ORGANIZATIONS THAT SERVE THE DISABLED COMMUNITY. OUR E-LIBRARY, ESTABLISHED WITH DONOR FUNDS TWO YEARS AGO, CONTINUES TO BE A POPULAR RESOURCE WHERE RESIDENTS CAN USE THEIR ADAPTED TECHNOLOGY DEVICES TO ACCESS ON-LINE BOOKS ON ONE OF THREE DEDICATED COMPUTERS. INGLIS UPGRADED ITS ON-CAMPUS WI-FI, PROVIDING RESIDENTS WITH RELIABLE INTERNET ACCESS WITH WHICH TO MAINTAIN SOCIAL CONTACTS, SHOP, PURSUE EDUCATIONAL ACTIVITIES AND MORE. FUNDS FOR THIS PROJECT WERE PROVIDED BY THE 2015 INGLIS GOLF OUTING.SIXTEEN ADDITIONAL INGLIS RESIDENTS COMPLETED PEERS TRAINING (PENNSYLVANIA'S EMPOWERED EXPERT RESIDENTS) AND NOW SERVE AS OMBUDSMEN FOR FELLOW RESIDENTS IN THE STATE'S PIONEERING PROGRAM. THE INGLIS COMMUNITY IS SUPPORTED BY AN ACTIVE NETWORK OF VOLUNTEERS INCLUDING MANY REGIONAL COLLEGE AND UNIVERSITY STUDENTS, FAITH-BASED GROUPS AND DEDICATED INDIVIDUALS WHO PROVIDE PROGRAMMATIC SUPPORT AND ENCOURAGEMENT TO RESIDENTS. IN FY'16 VOLUNTEERS PROVIDED OVER 22,347 HOURS, AN AVERAGE OF 1862.25 HOURS PER MONTH. THE INGLIS COMMUNITY REENTRY PROGRAM HELPS RESIDENTS PREPARE TO LIVE INDEPENDENTLY IN THE COMMUNITY. THE PROGRAM PROVIDES PRACTICAL EXPERIENCES THAT TRAIN RESIDENTS IN THE SKILLS THEY NEED TO LEAD SAFE AND SUCCESSFUL INDEPENDENT LIVES. IN FY 2016, INGLIS HELPED FIVE INDIVIDUALS TO REALIZE THE DREAM OF LIVING INDEPENDENTLY IN THEIR OWN ACCESSIBLE APARTMENT, IN ADDITION TO PREPARING 28 INGLIS HOUSE RESIDENTS TO MOVE TO INGLIS GARDENS AT BELMONT APARTMENTS. 43099532 1 1 0 0 0 0 0 0 1 1 1 1 0 1 1 1 0 1 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 108 0 1 715 1 0 0 0 0 0 1 1 0 0 0 0 X 4 4 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 PA X KEVIN KELLY CFO 2158785600 2600 BELMONT AVENUE PHILADELPHIA PA 19131 X LAUREN DEBRUICKER CHAIR 0.10 1.60 X X 0 0 0 WON SHIN VICE CHAIR 0.10 1.50 X X 0 0 0 THOMAS SIBSON TREASURER 0.10 1.60 X X 0 0 0 THEODORE ROBB DIRECTOR (RESIGNED JUNE '16) 0.10 1.60 X 0 0 0 JIM LOGUE SECRETARY 0.10 1.50 X X 0 0 0 GAVIN KERR PRESIDENT & CEO 2.00 38.00 X 0 524811 28263 KEVIN KELLY VP, CHIEF FINANCIAL OFFICER 2.00 38.00 X 0 238045 27257 LEA FRONTINO VP, INNOVATION & STRATEGIC PROJECTS 6.00 34.00 X 0 190493 10540 BETTY MARMON VP, DEVELOPMENT & EXTERNAL AFFAIRS 1.00 39.00 X 0 172019 24789 CHERYL WHITFIELD VP, HUMAN RESOURCES 2.00 38.00 X 0 187292 9846 HAROLD STRAWBRIDGE DIRECTOR OF INNOVATION 0.10 40.00 X 0 136465 19717 KAREN VOEGELE VP, CHIEF INTEGRITY OFFICER 2.00 38.00 X 0 140207 8161 WILLIAM GRIM CO-EXECUTIVE DIRECTOR/ADMIMISTRATOR 40.00 0.00 X 167711 0 8953 MARJORIE HARDING CO-EXECUTIVE DIRECTOR & DON 40.00 0.00 X 141194 0 14458 SANDRA FRANCIS REGULATORY MENTOR 40.00 0.00 X 126542 0 7455 435447 1589332 159439 5 0 1 0 FLATIRON BUILDING COMPANY 5189-91 RIDGE AVENUE PHILADELPHIA PA 19128 GENERAL CONTRACTOR 2419293 SODEXO INC PO BOX 905374 CHARLOTTE NC 28290 FOOD SERVICE & HOUSEKEEPING 447794 HCSC LAUNDRY INC PO BOX 25092 LEHIGH VALLEY PA 18002 LAUNDRY SERVICE 407339 GOSHEN MECHANICAL 640 SYNDER AVENUE UNIT A WEST CHESTER PA 19382 GENERAL CONTRACTOR 327050 GREYCOURT 607 COLLEGE AVENUE PITTSBURGH PA 15232 MONEY MANAGER 314157 11 122160 749089 5322 871249 NET RESIDENT SERVICE REVENUE 623000 36404737 36404737 PA NURSING HOME ASSESSMENT 623000 2505672 2505672 DAY VISITOR REVENUE 623000 538993 538993 MANAGEMENT FEES 623000 20000 20000 39469402 2923451 2923451 94248 177924 -83676 -83676 -83676 12237674 8280374 3957300 3957300 3957300 61580 122160 36198 25382 25382 CATERING INCOME 623000 139773 139773 CAFETERIA INCOME 623000 82045 82045 REBATES/REFUNDS 900099 33005 33005 254823 47417931 39469402 0 7077280 4941 4941 23800979 22654848 1146131 1583853 1507409 76444 5958564 5644182 314382 1796526 1712835 83691 19762 19762 61641 61641 227821 227821 2733883 2153011 580872 1413 93 1320 2125583 1728426 397157 596155 482569 113586 392709 390082 2627 20677 17767 2910 1216036 1216036 2296259 2296259 705689 12411 693278 SUPPORT SERVICES FEE 6096965 6096965 DIETARY COSTS 1474493 1474493 PA NURSING HOME ASSESS. 809678 809678 MEDICAL SUPPLIES 540142 540142 693488 454350 239138 53157257 43099532 10057725 0 14022 14166 1107212 2911951 30025 133400 6293019 5529549 95277 103214 1135854 775300 71266681 55190483 14710969 16076198 99177915 76758671 8833168 6585949 21631725 22597995 153029186 131486393 5656253 5931497 23500000 23500000 418009 429901 15840564 11012217 45414826 40873615 X 58090819 44487902 8385565 7056515 41137976 39068361 107614360 90612778 153029186 131486393 X -5739326 -7362215 -3900041 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 129050095 -2623534 23061487 162062 103203012 131298374 1973630 4000000 221909 129050095 116687592 18356526 3500042 245702 131298374 45235371 342739 -1955619 4420427 48042918 24713292 224302 -3507473 23805250 45235371 0.62200 0.31540 0.06260 1 0 1352478 1352478 59089245 46244999 12844246 9206187 8207570 998617 1618771 737914 880857 16076198 ALTERNATIVE INVESTMENTS 6585949 F 6585949 THIRD-PARTY PAYOR SETTLEMENTS, MEDICAL ASSISTANCE 387682 ESCROWED ASSETS AND OTHER ASSETS 138950 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 19858395 DEFERRED FINANCING COSTS 27237 DUE FROM AFFILIATES 2166361 457 PLAN 19370 22597995 DERIVATIVE FINANCIAL INSTRUMENT 775412 ACCRUED PENSION BENEFITS EXPENSE 10236805 11012217 X 36099214 -7362215 -4132803 -11495018 47594232 -176301 -176301 47417931 53100796 176301 176301 52924495 232762 232762 53157257 PART IV, LINE 2B: RESIDENT TRUST FUNDS ARE CUSTODIAL ACCOUNTS FOR RESIDENTS. INDIVIDUAL ACCOUNTS ARE SET UP FOR EACH RESIDENT THROUGH THE RESIDENT FUND MANAGEMENT SYSTEM (RFMS) WHICH ALLOWS THE RESIDENTS TO PERFORM BANKING ACTIVITIES. ADDITIONALLY, RESIDENT INCOME FROM SOCIAL SECURITY OR PENSIONS IS DIRECTLY DEPOSITED TO RESIDENT ACCOUNTS THROUGH RFMS. PART V, LINE 4: THE HOUSE'S ENDOWMENTS CONSIST OF VARIOUS FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. ITS ENDOWMENTS ARE DONOR RESTRICTED AND BOARD-DESIGNATED ENDOWMENT FUNDS. AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING NET ASSETS DESIGNATED BY THE BOARD OF DIRECTORS AS ENDOWMENT FUNDS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. INVESTMENT RETURNS ON ENDOWMENT FUNDS ARE SPENT IN ACCORDANCE WITH THE SPECIFICATIONS OF THE DONOR RESTRICTIONS AND IN ACCORDANCE WITH THE POLICIES ESTABLISHED BY THE BOARD OF DIRECTORS. IN PRIOR YEARS, THE PORTION OF ENDOWMENT FUNDS THAT WAS BOARD-DESIGNATED WAS NOT REPORTED ON SCHEDULE D. THIS ACCOUNTS FOR THE DIFFERENCE IN THE ENDING BALANCE IN COLUMN (C) AND THE BEGINNING BALANCE IN COLUMN (B), LINE 1 OF SCHEDULE D, PART V. PART X, LINE 2: INGLIS HOUSE ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES USING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD IS MET. MANAGEMENT DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2016 OR 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: VALUATION LOSS, BENEFICIAL INTEREST IN PERPETUAL TRUSTS -1,180,344. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENT 965,392. PENSION LIABILITY ADJUSTMENT -3,685,089. NET TRANSFER TO AFFILIATE -4,941. INVESTMENT FEES -227,821. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING INCOME 1,056. OTHER INCOME 567. RENTAL EXPENSES -177,924. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING INCOME -1,056. OTHER INCOME -567. RENTAL EXPENSES 177,924. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET TRANSFER TO AFFILIATE 4,941. INVESTMENT FEES 227,821. CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 6585949 0 0 0 0 0 0 6585949 0 6585949 0 0 1 0 0 0 GOLF OUTING 183740 122160 61580 34336 1862 183740 122160 61580 34336 1862 36198 25382 1 0 0 0 0 0 0 1 0 GAVIN KERR PRESIDENT & CEO 0 409942 0 113000 0 1869 0 12639 0 15624 0 553074 0 0 KEVIN KELLY VP, CHIEF FINANCIAL OFFICER 0 236537 0 0 0 1508 0 7504 0 19753 0 265302 0 0 LEA FRONTINO VP, INNOVATION & STRATEGIC PROJECTS 0 189817 0 0 0 676 0 5614 0 4926 0 201033 0 0 BETTY MARMON VP, DEVELOPMENT & EXTERNAL AFFAIRS 0 170241 0 0 0 1778 0 5415 0 19374 0 196808 0 0 CHERYL WHITFIELD VP, HUMAN RESOURCES 0 186938 0 0 0 354 0 5573 0 4273 0 197138 0 0 HAROLD STRAWBRIDGE DIRECTOR OF INNOVATION 0 135765 0 0 0 700 0 4313 0 15404 0 156182 0 0 WILLIAM GRIM CO-EXECUTIVE DIRECTOR/ADMIMISTRATOR 166173 0 0 0 1538 0 4895 0 4058 0 176664 0 0 0 MARJORIE HARDING CO-EXECUTIVE DIRECTOR & DON 140829 0 0 0 365 0 4369 0 10089 0 155652 0 0 0 PART I, LINE 3 COMPENSATION POLICY OF RELATED ORGANIZATION: THE PARENT ORGANIZATION, INGLIS FOUNDATION, RETAINS AN EXTERNAL FIRM TO CONDUCT MARKET STUDIES AND MAKE RECOMMENDATIONS FOR COMPENSATION. EXECUTIVE COMPENSATION IS EVALUATED ANNUALLY AND THE FINDINGS ARE PRESENTED TO THE BOARD OF TRUSTEES FOR APPROVAL OF COMPENSATION PACKAGE. AN ANNUAL BENCHMARK IS CONDUCTED FOR EXECUTIVE COMPENSATION AND FOR ANY POSITION THAT IS IN HIGH DEMAND, AND AN EXTERNAL FIRM PROVIDES OVERALL TRENDS FOR THE YEAR. COMPENSATION HAS BEEN REVIEWED IN 2016. THE ORGANIZATION USES THIS POLICY TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT/CEO: COMPENSATION COMMITTEE, WRITTEN EMPLOYMENT CONTRACT, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, FORM 990 OF OTHER ORGANIZATIONS, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4A MARJORIE HARDING BEGAN RECEIVING SEVERANCE PAYMENTS BEGINNING JUNE 27, 2015 AND WILL STOP RECEIVING SEVERANCE PAYMENTS ON JUNE 24, 2016. PART I, LINE 7 PRESIDENT & CEO GAVIN KERR RECEIVES A DISCRETIONARY BONUS BASED ON THE ACHIEVEMENT OF CERTAIN METRICS BASED ON ACHIEVEMENT OF BOTH OPERATIONAL AND STRATEGIC GOALS. ACHIEVEMENT OF OPERATIONAL GOALS IS BASED ON MEETING CERTAIN OBJECTIVE PILLAR MEASURES (METRICS). ACHIEVEMENT OF STRATEGIC INITIATIVES IS SUBJECTIVE. THE ORGANIZATION'S BOARD OF TRUSTEES EVALUATES AND APPROVES COMPENSATION AND BONUS DECISIONS FOR THE PRESIDENT & CEO. FORM 990, PART VI, SECTION A, LINE 1 THERE SHALL BE AN EXECUTIVE COMMITTEE OF THE CORPORATION WHICH SHALL CONSIST OF THE OFFICERS OF THE CORPORATION. THIS COMMITTEE SHALL, WHENEVER IN ITS JUDGMENT IT APPEARS NECESSARY, ACT FOR THE CORPORATION BETWEEN MEETINGS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 6 INGLIS FOUNDATION, A PENNSYLVANIA NON-PROFIT CORPORATION, IS THE SOLE MEMBER OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER SHALL HAVE ALL POWERS, RIGHTS AND AUTHORITY VESTED IN VOTING MEMBERS OF A PENNSYLVANIA NON-PROFIT CORPORATION INCLUDING THE POWER TO ELECT, APPOINT AND REMOVE DIRECTORS AND OFFICERS OF THE CORPORATION. THE OFFICERS OF THE CORPORATION SHALL BE ELECTED BY THE MEMBER AT ITS ANNUAL MEETING. WITH THE EXCEPTION OF THE CEO, THE OFFICERS OF THE CORPORATION SHALL BE DIRECTORS. EACH OFFICER SHALL HOLD OFFICE UNTIL A SUCCESSOR SHALL HAVE BEEN DULY ELECTED AND QUALIFIED. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBER SHALL HAVE ALL POWERS, RIGHTS AND AUTHORITY VESTED IN VOTING MEMBERS OF A PENNSYLVANIA NON-PROFIT CORPORATION INCLUDING THE FOLLOWING: (A) THE POWER TO AMEND THE CORPORATION'S ARTICLES OF INCORPORATION AND BYLAWS, (B) THE POWER TO ELECT, APPOINT AND REMOVE DIRECTORS AND OFFICERS OF THE CORPORATION, (C) THE POWER TO INCUR INDEBTEDNESS, AND (D) THE POWER TO SELL OR TRANSFER ITS ASSETS OTHER THAN IN THE ORDINARY COURSE OF BUSINESS. THE MEMBER SHALL HAVE THE AUTHORITY TO TAKE THE ACTIONS SET FORTH IN THE MEMBER'S BYLAWS WITH RESPECT TO THE CORPORATION, IN ADDITION TO ALL MATTERS REQUIRED BY THE PENNSYLVANIA NONPROFIT CORPORATION LAW ("PANPCL") OR THE CORPORATION'S ARTICLES OF INCORPORATION OR BY OTHER PROVISIONS OF THESE BYLAWS WHICH REQUIRE APPROVAL BY THE MEMBER. ANY INCONSISTENCIES BETWEEN THESE BYLAWS AND THOSE OF THE MEMBER SHALL BE RESOLVED IN FAVOR OF THE BYLAWS OF THE MEMBER. FORM 990, PART VI, SECTION B, LINE 11 THE PREPARED 990 IS INITIALLY REVIEWED BY INTERNAL FINANCE PERSONNEL. ONCE THE FORM 990 IS APPROVED BY MANAGEMENT, THE AUDIT COMMITTEE AND EACH MEMBER OF THE BOARD OF DIRECTORS RECEIVE COPIES TO REVIEW PRIOR TO BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES OF INGLIS FOUNDATION AND RELATED ENTITIES MUST ENSURE THAT CUSTOMER CARE AND BUSINESS ACTIVITIES ARE CONDUCTED IN AN OBJECTIVE MANNER AND ARE NOT MOTIVATED BY DESIRE FOR PERSONAL OR FINANCIAL GAIN. ALL EMPLOYEES ARE REQUIRED TO DISCLOSE ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST TO HIS OR HER MANAGER, HUMAN RESOURCES OR THE CHIEF ETHICS AND COMPLIANCE OFFICER FOR APPROPRIATE DETERMINATION AND RESOLUTION. IN ADDITION, ALL DIRECTORS, OFFICERS, MEMBERS OF COMMITTEES WITH BOARD-DELEGATED POWERS AND ALL SENIOR MANAGERS MUST COMPLETE A CONFLICT OF INTEREST AFFIRMATION OF COMPLIANCE AND DISCLOSURE STATEMENT UPON HIRING, ON AN ANNUAL BASIS, AND WHEN A POTENTIAL CONFLICT OF INTEREST ARISES. THE FOUNDATION'S COMMITTEE ON THE BOARD HAS RESPONSIBILITY FOR REVIEWING THE DISCLOSURE STATEMENTS AND ENFORCING THE POLICY. IF A CONFLICT IS DEEMED TO BE PRESENT BY THE COMMITTEE ON THE BOARD, ONLY DISINTERESTED BOARD MEMBERS MAY PARTICIPATE IN A VOTE OF THE PROPOSED TRANSACTION. FAMILY AND BUSINESS RELATIONSHIPS ARE EXPRESSLY MENTIONED IN THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE PARENT ORGANIZATION, INGLIS FOUNDATION, RETAINS AN EXTERNAL FIRM TO CONDUCT MARKET STUDIES AND MAKE RECOMMENDATIONS FOR COMPENSATION, TAKING INTO CONSIDERATION FAIR MARKET VALUE FOR THE INDUSTRY. NON-UNION, NON-EXECUTIVE ROLES ARE EVALUATED EVERY 2-3 YEARS BASED ON MARKET FLUCTUATIONS OR DEMAND. EXECUTIVE COMPENSATION IS EVALUATED ANNUALLY AND THE FINDINGS ARE PRESENTED TO THE "COMMITTEE ON THE BOARD" FOR APPROVAL OF COMPENSATION PACKAGE. THE FOUNDATION'S "COMMITTEE ON THE BOARD" IS A SUBCOMMITTEE OF THE BOARD THAT IS RESPONSIBLE FOR COMPENSATION REVIEW, AND THE DECISIONS REGARDING COMPENSATION ARE DOCUMENTED IN COMMITTEE MEETING MINUTES. AN ANNUAL BENCHMARK IS CONDUCTED FOR EXECUTIVE COMPENSATION AND FOR ANY POSITION THAT IS IN HIGH DEMAND, AND AN EXTERNAL FIRM PROVIDES OVERALL TRENDS FOR THE YEAR. COMPENSATION HAS BEEN REVIEWED IN 2016. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, LINE 1A BOARD MEETINGS INGLIS HOUSE HAS ONE BOARD MEETING PER YEAR WHICH LASTS ABOUT 10 MINUTES. FORM 990, PART XI, LINE 9: VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS -1,180,344. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENT 965,392. PENSION LIABILITY ADJUSTMENT -3,685,089. FORM 990, PART IV, LINE 24 INGLIS HOUSE IS NOT REQUIRED TO FILE SCHEDULE K FOR ITS TAX-EXEMPT BONDS SINCE THE BONDS WERE ISSUED BEFORE JANUARY 1, 2003. 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