2016-11-08T11:56:32-06:00 2015-12-31 ERNST & YOUNG US LLP 800 YARD STREET SUITE 200 GRANDVIEW HEIGHTS OH 43212 990 2015-01-01 381983442 Altarum Institute % Douglas R Gilbert ALTA 7343024600 3520 Green Court Ann Arbor MI 48105 Douglas R Gilbert VP and Controller 7343024600 2016-11-08 true DIANE L BEAN P00104972 6142245678 2015 2017-02-10 21:41:12Z Lincoln T Smith 3520 Green Court Suite 300 Ann Arbor MI 48105 57620753 false X www.altarum.org X 1972 MI Altarum serves the public good by solving complex systems problems to improve human health, integrating research, technology, analysis and consulting skills. 9 8 289 0 79451 45907 10684372 19433544 48723532 37901282 10615 10638 475000 250000 59893519 57595464 9588 11260 0 0 35168168 34510796 0 0 319703 24275271 22135574 59453027 56657630 440492 937834 73701249 73080361 41829521 39920043 31871728 33160318 Altarum serves the public good by solving complex systems problems to improve human health, integrating research, technology, analysis, 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Gibson Trustee 4.0 1.0 X 22469 0 0 Mary Ousley Chairman Trustee 4.0 1.0 X 26750 0 0 Alonzo Plough Trustee 4.0 1.0 X 13500 0 0 Lincoln T Smith secretary President and CEO 40.0 5.0 X X 745947 0 743820 Alicia Torres treasurer Senior VP & CFO 40.0 5.0 X 370193 0 352789 James A Lee VP, Business Develop officer 40.0 0.0 X 363260 0 165361 Glen Greenlee VP, Group director 40.0 0.0 X 316813 0 103317 Daniel C Armijo VP, Group Director 40.0 0.0 X 343609 0 275558 Ryan Lay VP, Group Director 40.0 0.0 X 313565 0 261630 Katherine A Dimeo VP, Group Director 40.0 0.0 X 276598 0 151281 Steven J Towell VP, Corp Informatioin & Tech 40.0 0.0 X 235043 0 199248 Terry R Owens EFF 52615 VP 40.0 0.0 X 109583 0 128765 Douglas R Gilbert VP and Corporate Controller 40.0 5.0 X 274675 0 258057 Eric P Gelman Group Deputy Director 40.0 0.0 X 284265 0 80904 Karen Metscher THRU 82515 Practice Area Lead 40.0 0.0 X 235557 0 23942 Richard A Keller Center Director 40.0 0.0 X 187217 0 73431 Timothy P Borchert Group Deputy 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INTERCOMPANY RECEIVABLES 6334911 ASSETS IN ESCROW 5416 DEFER COMPENSATION PLAN ASSETS 744996 56019158 0 DEFERRED COMPENSATION LIABILITY 2386779 ENVIRONMENTAL ACCRUAL 3094 INTERCOMPANY LIABILITIES 11676437 14066310 X Schedule D, Part X, Line 2 FIN 48 (ASC 740) 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 2012 THROUGH 2015, THE YEARS WHICH REMAIN SUBJECT TO EXAMINATION AS OF DECEMBER 31, 2015. 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, 2015 OR 2014, AND IS NOT AWARE OF ANY CLAIMS FOR SUCH AMOUNTS BY FEDERAL, STATE OR LOCAL INCOME TAX AUTHORITIES. false Europe (Including Iceland and Greenland) 0 0 Program services Scientific Research 1638 East Asia and the Pacific 0 0 Program services Scientific Research 64453 Middle East and North Africa 0 0 Program services Scientific Research 6571 0 0 0 0 72662 72662 false false false false false false X X X X X true true false false false false false false false Lincoln T Smith secretary President and CEO 294191 0 450040 0 1716 0 730955 0 12865 0 1489767 0 450040 0 Alicia Torres treasurer Senior VP & CFO 184235 0 181752 0 4206 0 342350 0 10439 0 722982 0 181752 0 James A Lee VP, Business Develop officer 134719 0 202908 0 25633 0 152548 0 12813 0 528621 0 66212 0 Glen Greenlee VP, Group director 120236 0 177216 0 19361 0 94232 0 9085 0 420130 0 177216 0 Daniel C Armijo VP, Group Director 156386 0 154241 0 32982 0 263766 0 11792 0 619167 0 85865 0 Ryan Lay VP, Group Director 144235 0 166571 0 2759 0 249964 0 11666 0 575195 0 74913 0 Katherine A Dimeo VP, Group Director 171433 0 101871 0 3294 0 152185 0 -904 0 427879 0 71871 0 Steven J Towell VP, Corp Informatioin & Tech 128642 0 97426 0 8975 0 191111 0 8137 0 434291 0 97426 0 Terry R Owens EFF 52615 VP 98167 0 10000 0 1416 0 121932 0 6833 0 238348 0 0 0 Douglas R Gilbert VP and Corporate Controller 140891 0 123227 0 10557 0 249278 0 8779 0 532732 0 123227 0 Eric P Gelman Group Deputy Director 181334 0 90437 0 12494 0 81859 0 -955 0 365169 0 90437 0 Karen Metscher THRU 82515 Practice Area Lead 94842 0 32815 0 107900 0 21276 0 2666 0 259499 0 32815 0 Richard A Keller Center Director 143000 0 37696 0 6521 0 61719 0 11712 0 260648 0 37696 0 Timothy P Borchert Group Deputy Director 152474 0 87413 0 7856 0 162225 0 11318 0 421286 0 87413 0 JoaAnne Lynn Center Director 149494 0 55484 0 13289 0 104964 0 3859 0 327090 0 55484 0 SCHEDULE J, part I, line 4A IN 2015, DUE TO BUSINESS CONDITIONS, THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT: KAREN METSCHER $80,231 THE AMOUNT LISTED ABOVE HAs BEEN INCLUDED IN SCHEDULE J, PART II, COLUMN (III). SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ALTARUM INSTITUTE ADMINISTERS A SUPPLEMENTAL NONQUALIFIED IRC SECTION 457(F) PLAN FOR IS 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 2015 INCENTIVE COMPENSATION UNDER THE PLANS IN WHICH THEY QUALIFIED: LINCOLN T. SMITH $621,442 ALICIA TORRES $278,621 JAMES A. LEE $84,193 GLEN GREENLEE $28,150 DANIEL C. ARMIJO $231,481 RYAN LAY $168,895 KATHERINE A. DIMEO $115,968 STEVEN J. TOWELL $147,786 TERRY R. OWENS $105,562 DOUGLAS R. GILBERT $178,751 ERIC P. GELMAN $58,749 RICHARD A. KELLER $50,147 TIMOTHY P. BORCHERT $111,006 JOANNE LYNN $52,828 THE AMOUNTs LISTED ABOVE HAVE BEEN INCLUDED IN SCHEDULE J, PART II, COLUMN (C). PART VI, SECTION B., LINE 11B PROCESS USED TO REVIEW THE FORM 990 1. IRS FORM 990 IS PREPARED EXTERNALLY BY ALTARUMS 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 CONTROLLER. AS PART OF THE INFORMATION GATHERING PROCESS, THE CONTROLLER WORKS 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 COMMITTEE OF THE ALTARUM INSTITUTE BOARD OF TRUSTEES. THIS COMMITTEE HAS BEEN DESIGNATED BY THE BOARD TO REVIEW THE FORM 990 TO EITHER APPROVE AS WRITTEN OR MAKE SUGGESTED MODIFICATIONS, DRAWING UPON WHATEVER BOARD COMMITTEES OR INDIVIDUAL TRUSTEES IT DEEMS NECESSARY. 3. ONCE REVIEWED AND APPROVED FOR SUBMISSION, THE CHAIR OF THE AUDIT AND COMPENSATION COMMITTEE NOTIFIES THE CHIEF FINANCIAL OFFICER THAT THE FORM IS READY FOR SUBMISSION TO THE IRS. 4. THE CHIEF FINANCIAL OFFICER PROVIDES A COPY OF THE FORM 990 TO EACH BOARD MEMBER OF THE BOARD OF TRUSTEES PRIOR TO FILING 5. THE CHIEF FINANCIAL OFFICER INSTRUCTS THE EXTERNAL TAX ACCOUNTANTS TO FINALIZE THE IRS FORM 990 AND PRESENT IT FOR SIGNATURE AND FILING WITH THE IRS. 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 OFFICER MUST COMPLETE AND SUBMIT A DISCLOSURE FORM TO THE DIRECTOR OF LEGAL AFFAIRS. INCLUDED IN THE DISCLOSURE FORM IS ANY EMPLOYMENT, BOARD MEMBERSHIP, COMPENSATORY ARRANGEMENTS, MATERIAL INTERESTS, ETC. WITH OTHER ENTITIES. THE DIRECTOR OF LEGAL AFFAIRS 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 OFFICERS 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 OFFICER BECOMes AWARE OF THE POTENTIAL ALTARUM RELATIONSHIP). In the event of a POTENTIAL CONFLICT OF INTEREST OCCURRING, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS, AND THE DISINTERESTED BOARD MEMBERS (without 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. UPON A CONFLICT OF INTEREST OCCURRING THAT WAS NOT DISCLOSED, THE INTERESTED PERSON MUST EXPLAIN THE FAILURE TO DISCLOSE THE ALLEGED CONFLICT. AFTER HEARING THE EXPLANATION AND CONDUCTING ANY NECESSARY FURTHER INVESTIGATION, THE BOARD WILL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. PART VI, SECTION B., LINE 15 PROCESS FOR DETERMINING COMPENSATION THE ALTARUM INSTITUTE AUDIT AND COMPENSATION COMMITTEE MEETS EVERY YEAR FOR THE PURPOSE OF REVIEWING, DETERMINING AND APPROVING COMPENSATION FOR THE EXECUTIVE EMPLOYEES OF ALTARUM INSTITUTE. THE COMMITTEE MEETS IN FEBRUARY TO EVALUATE THE REASONABLENESS OF THE AMOUNT AND CONFORMITY WITH ALTARUM INSTITUTE POLICIES AND PRIOR COMMITTEE APPROVALS. REVIEW OF PRIOR YEAR TOTAL COMPENSATION ALSO OCCURS AT THE FEBRUARY MEETING. EXECUTIVE POSITIONS INCLUDED IN REVIEW ARE: 1. PRESIDENT & CEO 2. CHIEF FINANCIAL OFFICER 3. CHIEF HR OFFICER 4. GROUP OPERATIONS DIRECTOR(s) 5. CORPORATE CONTROLLER 6. CORPORATE INFORMATION SECURITY AND TECHNOLOGY OFFICER THE FOLLOWING INFORMATION IS CONSIDERED AS PART OF THE DETERMINATION OF COMPENSATION: 1. INDEPENDENT AND CURRENT SALARY SURVEY INFORMATION COMPILED BY MERCER EXECUTIVE DATABASE. 2. INDEPENDENT AND CURRENT SALARY SURVEY INFORMATION COMPILED BY TOWERS WATSON TOP MANAGEMENT REPORT. 3. INDEPENDENT AND CURRENT SALARY SURVEY INFORMATION COMPILED BY ECONOMIC RESEARCH INSTITUTE. 4. 10-FIRM NON PROFIT PEER GROUP SELECTED BY AUDIT AND COMPENSATION COMMITTEE. 5. REVIEW OF EMPLOYEE PERFORMANCE EVALUATION DATA SUMMARIZED BY THE PRESIDENT AND CEO. AFTER DISCUSSION, ASSUMING THERE ARE NO ISSUES WITH THE REASONALBENESS OF THE COMPENSATION AS DOCUMENTED IN THE RECORD, ALL MEMBERS OF THE AUDIT AND COMPENSATION COMMITTEE VOTE ON THE COMPENSATION PRESENTED. IF THE AUDIT AND COMPENSATION COMMITTEE APPROVES THE COMPENSATION PACKAGES AS PRESENTED AS REASONABLE AND IN CONFORMITY WITH ALTARUM INSTITUTE POLICIES, THE AUDIT AND COMPENSATION COMMITTEE SUBMITS THE COMPENSATION PROVISIONS OUTLINED FOR APPROVAL BY THE BOARD OF TRUSTEES. AFTER REVIEWING THE RECOMMENDATION OF THE AUDIT AND COMPENSATION COMMITTEE, THE BOARD OF TRUSTEES VOTE ON THE RECOMMENDATIONS. 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. FISHS EMPLOYER, FLETCHER SPAGHT, INC., REQUIRED HIM TO FORGO THE TRUSTEE FEES REPORTED IN PART VII, SECTION A IN ORDER TO SERVE ON ALTARUM INSTITUTES 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 XI, LINE 9 OTHER CHANGES IN NET ASSETS GAIN FROM SUBSIDIARIES $352,520 FORM 990, PART XII, LINE 3B REQUIRED AUDIT A-133 AUDIT COMPLETED FORM 990 PART IX LINE 11G DESCRIPTION:SUBCONTRACT FEES TOTAL FEES:11874630 Altarum Supporting Organization 3520 Green Court Suite 300 Ann Arbor MI 48105 383580694 Support Org MI 501(c)(3) 11 - Type I Altarum Inst false Altarum Asset Management Inc 3520 Green Court Suite 300 Ann Arbor MI 48105 383609582 Holding Co. MI Altarum Sup Org C Corp 48788 15708977 1.00000 true Health Systems Research Inc 3520 Green Court Suite 300 Ann Arbor MI 48105 521353811 Health Services DC Altarum Asset M C Corp 1711 1.00000 true KAI Research Inc 11300 Rockville Pike Suite 500 Rockville MD 20852 521285172 Health Services MD Altarum Asset M C Corp 4619337 6556418 1.00000 true Palladian Partners Inc 8484 Georgia Avenue Suite 400 Silver Spring MD 20910 521974660 Health Comm. MD Altarum Asset M C Corp 18816005 13366812 1.00000 true false false false false true false false false false false true true true false false false true false true Altarum Supporting Org k 813565 Cost Altarum Supporting Org q 541686 Cost Altarum Supporting Org s 1001426 Cost Altarum Supporting Org e 2000000 Cost Altarum Asset Mgmt q 57474 Cost KAI Research Inc k 283570 Cost KAI Research Inc l 831904 Cost KAI Research Inc m 180009 Cost KAI Research Inc q 104069 Cost Palladian Partners Inc l 2175353 Cost Palladian Partners Inc m 2920036 Cost Palladian Partners Inc q 1026038 Cost