2016-05-16T10:46:29-05:00 2015-06-30 550486667 ARNETT CARBIS TOOTHMAN LLP 5700 CORPORATE DRIVE STE 650 PITTSBURGH PA 15237 990 2014-07-01 251021794 PASSAVANT MEMORIAL HOMES PASS 4128201010 100 PASSAVANT WAY PITTSBURGH PA 15238 ROBERT DOUGHERTY CFO 4128201010 2016-05-05 1 JEFFREY J PETRELL CPA P00138808 4126356270 2016-04-27 2014 2016-08-17 19:52:53Z RICK SENFT 100 PASSAVANT WAY PITTSBURGH PA 15238 68515151 0 X HTTP://WWW.PASSAVANT.ORG X 1895 PA PASSAVANT MEMORIAL HOMES, INC. IS A PRIVATE, NON-PROFIT HUMAN SERVICES ORGANIZATION WHOSE MISSION IS TO EMPOWER PEOPLE WITH DISABILITIES TO LIVE IN THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY SUPPORTS WHILE PROMOTING CHOICE AND INDEPENDENCE. 10 10 1614 101 0 0 158302 50662 66797585 67719550 -64241 -72478 656753 739230 67548399 68436964 0 0 0 0 42930321 45385840 0 0 889 22601643 21000787 65531964 66386627 2016435 2050337 34197041 38330819 25500950 27814848 8696091 10515971 PASSAVANT MEMORIAL HOMES, INC. IS A PRIVATE, NON-PROFIT HUMAN SERVICES ORGANIZATION WHOSE MISSION IS TO EMPOWER PEOPLE WITH DISABILITIES TO LIVE IN THE COMMUNITY BY PROVIDING THE HIGHEST QUALITY SUPPORTS WHILE PROMOTING CHOICE AND INDEPENDENCE. 0 0 56574041 68430263 PASSAVANT MEMORIAL HOMES, INC. PRESENTLY PROVIDES A FULL RANGE OF COMPREHENSIVE SUPPORT PROGRAMS TO OVER 1,000 CHILDREN, ADULTS AND SENIORS WITH INTELLECTUAL DISABILITIES AND BEHAVIORAL HEALTH SUPPORT NEEDS. SERVICES INCLUDE RESIDENTIAL, CHILDREN'S PROGRAMS, FAMILY LIVING, VOCATIONAL PROGRAMS, OLDER ADULT DAY CARE, HOME AND COMMUNITY BASED PROGRAMS, SUPPORTED LIVING/HOUSING, TRIAGE NURSING SERVICES, AND LONG TERM STRUCTURED RESIDENCES.FOR MORE INFORMATION, PLEASE VISIT WWW.PASSAVANT.ORG. 56574041 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 245 0 1 1614 1 0 0 0 0 0 0 0 0 X 10 10 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 PA X ROBERT L DOUGHERTY 4128201010 100 PASSAVANT WAY PITTSBURGH PA 15238 X JACK WADDELL CHAIRMAN 1.00 X X 0 0 0 MARY ANN BOLLAND VICE CHAIRMAN 1.00 X X 0 0 0 SUSAN ABRAMOWICH BOARD MEMBER 1.00 X 0 0 0 FRANK BAKER BOARD MEMBER 1.00 X 0 0 0 DAVID CALIGUIRI BOARD MEMBER 1.00 X 0 0 0 MATT HAFF BOARD MEMBER 1.00 X 0 0 0 JOSEPH O'DONNELL BOARD MEMBER 1.00 X 0 0 0 HAZEL SHEFFIELD BOARD MEMBER 1.00 X 0 0 0 LARRY VOGEL BOARD MEMBER 1.00 X 0 0 0 JOHN O'KEEFE BOARD MEMBER 1.00 X 0 0 0 KRISTIN HARTZELL BOARD MEMBER 1.00 X 0 0 0 PATRICK DEMICO COO AND VICE PRESIDENT 1.00 40.00 X 0 735759 68995 JOHN DOLLMAN ASSISTANT CFO 1.00 40.00 X 0 98633 16891 ROBERT DOUGHERTY CFO & CO-TREASURER 1.00 40.00 X 0 45167 8317 JOHN EYTH CFO & CO-TREASURER 1.00 40.00 X 0 91887 852 CAROL GRANT VP OF OPERATIONS & CO-TREASURER 1.00 40.00 X 0 163904 10313 GREG HERSHBERGER COO AND VICE PRESIDENT 1.00 40.00 X 0 305994 35178 LAWRENCE KUSHIK VP OF ADMIN & CO-SECRETARY 1.00 40.00 X 0 150374 26452 RICK SENFT CEO AND PRESIDENT 1.00 40.00 X 0 1259926 133333 BRENDA WYMAN VP OF BUSINESS OPER. & CO-SECRETARY 1.00 40.00 X 0 135691 25948 KEVIN FRIEL FORMER CFO & CO-TREASURER 0.00 0.00 X 0 110318 13316 0 3097653 339595 0 1 1 0 FOX ROTHSCHILD LLP 625 LIBERTY AVE PITTSBURGH PA 15222 LEGAL SERVICES 1341907 BUD BEHLING LEASING INC PO BOX 642109 PITTSBURGH PA 15264 VEHICLE LEASING 679664 HORIZON INFORMATION SYSTEMS 435 NAPOLEON PLACE JOHNSTOWN PA 15901 IT SERVICES 440124 BDO HEINZ 57 CENTER 339 6TH AVE PITTSBURGH PA 15222 AUDIT SERVICES 361197 MORET CONSTRUCTION 700 GREENSBURG RD NEW KENSINGTON PA 15068 CONSTRUCTION 311905 16 50662 50662 PROGRAM REVENUE 624100 65631590 65631590 ROOM & BOARD 624100 2087960 2087960 67719550 5709 5709 28517 0 28517 28517 28517 78187 -78187 -78187 -78187 FOOD STAMP REVENUE 624100 400552 400552 MISCELLANEOUS REVENUE 624100 282876 282876 TRANSPORTATION REVENUE 624100 27285 27285 710713 68436964 68430263 0 -43961 36078885 35683041 395844 121865 117969 3896 6364816 6245260 119556 2820274 2789470 30804 6214254 6214254 351861 351861 5216919 4483708 733211 430883 391974 38909 321168 23561 297607 38584 38584 1489508 1349583 139925 2374776 2176833 197943 758342 501554 256788 598742 512850 85892 386890 386890 FOOD 1274821 1272147 2674 REPAIRS & MAINTENANCE 762238 479533 282705 TREATMENT SERVICES 281202 281202 PRE EMPLOYMENT & STAFF 125314 60088 65226 375285 166684 207712 889 66386627 56574041 9811697 889 62259 60556 586352 140104 19728748 25109314 167134 262342 27950982 15978377 12326834 11972605 1226240 111582 99474 674316 34197041 38330819 4224244 2782929 19315224 22333294 1961482 2698625 25500950 27814848 X 8696091 10515971 8696091 10515971 34197041 38330819 X 2050337 10002 39514 -279973 X X 0 1 X 1 0 X 109070 219187 68721 143302 50662 590942 43304605 43025998 56022014 66797585 67719550 276869752 43413675 43245185 56090735 66940887 67770212 277460694 0 0 0 277460694 96817 95434 70191 76114 34226 372782 96817 95434 70191 76114 34226 372782 808079 1220400 204717 592483 710713 3536392 44318571 44561019 56365643 67609484 68515151 281369868 0.98610 0.98460 0.00130 0.00180 X 6337302 6337302 18319011 14865741 3453270 325301 56929 268372 2969368 1055707 1913661 11972605 DUE TO RESIDENTS 92988 OTHER ACCRUED EXPENSES 125616 ACCRUED WORKER'S COMPENSATION CLAIMS 1700000 FMV - INTEREST RATE SWAP 780021 2698625 X 68486480 10002 39514 49516 68436964 0 68436964 66386627 0 66386627 0 66386627 PART X, LINE 2: THE ORGANIZATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES ON ITS EXEMPT INCOME UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE. THE ORGANIZATION FOLLOWS THE GUIDANCE FOR ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN A CORPORATION'S FINANCIAL STATEMENTS THAT PRESCRIBES 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 HAS BEEN MET. THE GUIDANCE ALSO ADDRESSES DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, AND DISCLOSURE. MANAGEMENT HAS DETERMINED THAT THIS GUIDANCE HAD NO MATERIAL EFFECT ON THE FINANCIAL STATEMENTS. THE ORGANIZATION'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN GENERAL AND ADMINISTRATIVE EXPENSES. THERE WERE NO INTEREST OR PENALTIES RECOGNIZED ON THE STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS AS A RESULT OF THIS GUIDANCE. GENERALLY, TAX RETURNS FOR YEARS ENDED JUNE 30, 2012, AND THEREAFTER REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. 0 1 0 0 0 0 1 0 0 PATRICK DEMICO COO AND VICE PRESIDENT 0 341796 0 76519 0 317444 0 52470 0 16525 0 804754 0 0 CAROL GRANT VP OF OPERATIONS & CO-TREASURER 0 160064 0 3840 0 0 0 2121 0 8192 0 174217 0 0 GREG HERSHBERGER COO AND VICE PRESIDENT 0 274963 0 31031 0 0 0 10226 0 24952 0 341172 0 0 LAWRENCE KUSHIK VP OF ADMIN & CO-SECRETARY 0 147618 0 2756 0 0 0 4419 0 22033 0 176826 0 0 RICK SENFT CEO AND PRESIDENT 0 569839 0 109561 0 580526 0 111300 0 22033 0 1393259 0 0 BRENDA WYMAN VP OF BUSINESS OPER. & CO-SECRETARY 0 133241 0 2450 0 0 0 3915 0 22033 0 161639 0 0 KEVIN FRIEL FORMER CFO & CO-TREASURER 0 110318 0 0 0 0 0 2919 0 10397 0 123634 0 0 PART I, LINE 3 THE COMPENSATION FOR THE CEO IS PAID BY PASSAVANT DEVELOPMENT CORPORATION. PASSAVANT DEVELOPMENT CORPORATION USES THE FOLLOWING METHODS TO ESTABLISH THE COMPENSATION OF THE CEO TO ENSURE THE COMPANY IS IN ACCORDANCE WITH IRS GUIDELINES: -COMPENSATION COMMITTEE -INDEPENDENT COMPENSATION CONSULTANT -COMPENSATION SURVEY OR STUDY -APPROVAL BY THE EXECUTIVE COMMITTEE AND THE FULL BOARD OF DIRECTORS PART I, LINE 4B PASSAVANT DEVELOPMENT CORPORATION, A RELATED FOR-PROFIT CORPORATION, CONTRIBUTED TO A SERP PLAN FOR THE FOLLOWING INDIVIDUALS: RICK SENFT - $111,300 PATRICK DEMICO - $52,470 PART I, LINE 6 BONUSES ARE BASED ON INDIVIDUAL PERFORMANCE TARGETS AND THE OPERATIONS OF PASSAVANT DEVELOPMENT CORPORATION. THE BONUSES ARE APPROVED BY THE FULL BOARD OF DIRECTORS. PART II: THE CHIEF EXECUTIVE OFFICER AND PRESIDENT HAD TO MAKE A MANDATORY WITHDRAWAL OF THE AGGREGATE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FUNDS/PENSION CONTRIBUTIONS FOR 3 YEARS, COVERING CALENDAR YEARS OF 2011, 2012, AND 2013 WHICH WAS COMPLETED IN JANUARY 2014. ADDITIONALLY, THE STANDARD ANNUAL SUPPLEMENTAL RETIREMENT PLAN CONTRIBUTION WAS DEPOSITED IN JANUARY 2014. THIS ACCOUNTS FOR ALL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN COMPENSATION INDICATED ON PAGE 2, COLUMNS B III AND C. FORM 990, PART VI, SECTION A, LINE 3 MANAGEMENT SERVICES ARE PROVIDED BY PASSAVANT DEVELOPMENT CORPORATION (A FOR-PROFIT SUBSIDIARY). PRINCIPLE SERVICES PROVIDED INCLUDE ADMINISTRATIVE, FINANCIAL, AND HUMAN RESOURCES. FORM 990, PART VI, SECTION B, LINE 11 THE PASSAVANT MEMORIAL HOMES 990 REVIEW AND SUBMISSION WILL FOLLOW THE PROCESS OUTLINED IN THE PASSAVANT MEMORIAL HOMES 990 POLICY. 1. THE PASSAVANT MEMORIAL HOMES MANAGEMENT TEAM WILL COMPLETE A FIRST DRAFT OF THE 990. 2. THE DRAFT 990 WILL BE SUBMITTED TO PASSAVANT MEMORIAL HOMES' INDEPENDENT AUDITORS FOR REVIEW AND THE PASSAVANT MEMORIAL HOMES MANAGEMENT TEAM WILL THEN MAKE ALL RECOMMENDED CHANGES. 3. ONCE THE DRAFT 990 IS APPROVED BY THE INDEPENDENT AUDITORS IT WILL BE SUBMITTED TO PASSAVANT MEMORIAL HOMES' LEGAL COUNSEL FOR REVIEW AND ENDORSEMENT. FOLLOWING REVIEW FROM LEGAL COUNSEL, THE PASSAVANT MEMORIAL HOMES MANAGEMENT TEAM WILL THEN MAKE ALL ADDITIONAL RECOMMENDED REVISIONS. 4. PASSAVANT MEMORIAL HOMES' LEGAL COUNSEL WILL THEN PRESENT THE FINAL 990 DRAFT TO THE FULL BOARD OF DIRECTORS FOR APPROVAL. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORED AND ENFORCED COMPLIANCE WITH THE CONFLICT OF INTEREST AND DISCLOSURE STATEMENT BY HAVING BOARD MEMBERS COMPLETE IT ANNUALLY. IF AN INTERESTED PERSON HAS A CONFLICT, HE OR SHE RECUSES THEMSELVES FROM VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION FOR THE CEO AND OTHER KEY EMPLOYEES IS PAID BY PASSAVANT DEVELOPMENT CORPORATION. PASSAVANT DEVELOPMENT CORPORATION USES INDEPENDENT SALARY STUDIES BY AN INDEPENDENT CONSULTANT, PRESENTATION TO BOARD, BOARD DELIBERATIONS, AND BOARD APPROVAL. ADDITIONALLY, BOARD OF DIRECTORS POLICY STATES THAT NO EMPLOYEE IS TO RECEIVE A TOTAL COMPENSATION OF MORE THAN THE 75TH PERCENTILE OF THE COMPENSATION ANALYST'S RECOMMENDED SALARY, BENEFITS AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. ALL OFFICERS AND KEY EMPLOYEES ARE EMPLOYED BY PASSAVANT DEVELOPMENT CORPORATION. THE TOTAL COMPENSATION FOR EACH EMPLOYEE LISTED IS ALLOCATED ACROSS 16 SUBSIDIARIES AND AFFILIATES, IN ACCORDANCE WITH A COMPREHENSIVE ALLOCATION PLAN APPROVED BY THE INDEPENDENT AUDITORS AND ADOPTED BY THE BOARD OF DIRECTORS. THE COMPREHENSIVE ALLOCATION PLAN IS REVIEWED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AND FORM 1023 AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 AT THIS TIME, THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC. FORM 990, PART VII ALL OFFICERS AND KEY EMPLOYEES ARE EMPLOYED BY PASSAVANT DEVELOPMENT CORPORATION. THE TOTAL COMPENSATION FOR EACH EMPLOYEE LISTED IS ALLOCATED ACROSS 16 SUBSIDIARIES AND AFFILIATES, IN ACCORDANCE WITH A COMPREHENSIVE ALLOCATION PLAN APPROVED BY THE INDEPENDENT AUDITORS AND ADOPTED BY THE BOARD OF DIRECTORS. THE COMPREHENSIVE ALLOCATION PLAN IS REVIEWED ANNUALLY. THE CEO AND PRESIDENT AND COO AND VICE PRESIDENT HAD TO MAKE A MANDATORY WITHDRAWAL OF THE AGGREGATE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FUNDS/PENSION CONTRIBUTIONS FOR 3 YEARS COVERING CALENDAR YEARS OF 2011, 2012, AND 2013 WHICH WAS COMPLETED IN JANUARY 2014. ADDITIONALLY, THE STANDARD ANNUAL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN CONTRIBUTION WAS DEPOSITED IN JANUARY 2014. THIS ACCOUNTS FOR ALL SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN COMPENSATION. FOR OFFICERS PATRICK DEMICO, KEVIN FRIEL AND JOHN EYTH, THE REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS AND THE ESTIMATED AMOUNT OF OTHER COMPENSATION FROM THE ORGANIZATION AND RELATED ORGANIZATIONS PERTAINS TO THEIR EMPLOYMENT DURING THE FOLLOWING TIME PERIODS: PATRICK DEMICO: 1/1/2014-9/30/2014 KEVIN FRIEL: 1/1/2014-5/23/2014 JOHN EYTH: 4/21/2014-10/27/2014 FOR OFFICER ROBERT DOUGHERTY, THE REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS AND THE ESTIMATED AMOUNT OF OTHER COMPENSATION FROM THE ORGANIZATION AND RELATED ORGANIZATIONS PERTAINS ONLY TO THE TIME PERIOD: 9/2/2014 (DATE OF HIRE) - 12/31/2014. FORM 990, PART XI, LINE 9: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP -279,973. FORM 990, PART XII, LINE 2C: PASSAVANT MEMORIAL HOMES HAS AN AUDIT COMMITTEE THAT IS RESPONSIBLE FOR OVERSEEING THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. ARTICLES FROM ANNUAL REPORT STRENGTHENING PARTNERSHIPS THROUGH POSITIVE CHANGE IT IS WITH GREAT PRIDE THAT I AM ABLE TO REPORT ON ANOTHER SUCCESSFUL YEAR OF POSITIVE PROGRESS AND INDIVIDUAL ACHIEVEMENTS ACCOMPLISHED THROUGH THE STEADFAST SUPPORT OF OUR STAFF AND BUSINESS PARTNERS. PASSAVANT MEMORIAL HOMES FAMILY OF SERVICES STRIVES TO PROVIDE QUALITY AND EXCELLENCE THROUGH A COMPREHENSIVE RANGE OF SUPPORT SERVICES DEDICATED TO EMPOWERING THE INDIVIDUALS THAT WE ARE PRIVILEGED TO SERVE. OUR COMMITMENT TO QUALITY, COUPLED WITH OUR WILLINGNESS TO EMBRACE NEW OPPORTUNITIES HAS ONCE AGAIN ALLOWED US TO FURTHER EXPAND AND MEET THE NEEDS OF AN INCREASINGLY GREATER NUMBER OF INDIVIDUALS WITH INTELLECTUAL DISABILITIES. DESPITE A CALENDAR YEAR THAT INCLUDED A NUMBER OF CHALLENGES AND OBSTACLES, WITH CHANGES IN THE COMMONWEALTH'S LEADERSHIP AND DISRUPTIONS TO FUNDING STREAMS, THE ORGANIZATION HAS DEMONSTRATED CONTINUED RESOLVE, AND ENTERS 2016 IN A POSITION OF SIGNIFICANT STRENGTH. THROUGHOUT THE YEAR, PASSAVANT MEMORIAL HOMES (PMH) HAS CONTINUED TO WORK CLOSELY WITH THE PENNSYLVANIA DEPARTMENT OF HUMAN SERVICES AND MULTIPLE SUPPORTS COORDINATION ORGANIZATIONS TO PROVIDE RESIDENTIAL SUPPORTS AND SERVICES TO 21 NEW INDIVIDUALS WITH INTELLECTUAL DISABILITIES. PMH IS NOW SERVING INDIVIDUALS IN EIGHT NEW RESIDENTIAL LOCATIONS ACROSS WESTERN PENNSYLVANIA AND HAS SUCCESSFULLY TRANSITIONED TWO INDIVIDUALS FROM STATE CENTERS INTO A COMMUNITY SETTING THROUGH THE BENJAMIN LITIGATION INITIATIVE. THIS EXPANSION IS EVIDENCE OF OUR ORGANIZATION'S LONG-STANDING RELATIONSHIP WITH NANCY THALER, RETURNING DEPUTY SECRETARY OF THE OFFICE OF DEVELOPMENTAL PROGRAMS (ODP), AND THE RELATIONSHIPS THAT THE PMH SOCIAL SERVICES AND PROGRAM DEPARTMENTS HAVE DEVELOPED WITH GOVERNING AND SUPPORTS AGENCIES, AS WELL AS THE REPUTATION THAT PMH HAS ESTABLISHED AMONG PROVIDER ORGANIZATIONS FOR QUALITY DRIVEN CARE. THE PMH SOCIAL SERVICES DEPARTMENT CONTINUES TO DELIVER OUTREACH AND SUPPORT TO INDIVIDUALS, FAMILIES, AND STAFF THROUGH ONGOING COMMUNICATION WITH OTHER AGENCIES, EXTERNAL SUPPORTS, AND INTERNAL DEPARTMENTS IN ORDER TO PROVIDE COORDINATED CARE ACROSS A MULTIDISCIPLINARY SYSTEM. THE DEPARTMENT ALSO PROVIDES WEEKLY INDIVIDUAL THERAPY, GROUP THERAPY ENTITLED 'HELPING HEARTS,' BEREAVEMENT SUPPORT, AND NOW BEHAVIORAL SPECIALIST SERVICES. THESE VALUABLE SERVICES CONTINUE TO ENHANCE THE LEVEL OF CARE THAT INDIVIDUALS AT PASSAVANT MEMORIAL HOMES RECEIVE, WITH THE GOAL BEING TO INCREASE AWARENESS AND EXPRESSION OF EMOTIONS, DEVELOP SOCIAL SKILLS, IDENTIFY SUPPORT SYSTEMS, INCREASE SELF-ESTEEM AND IDENTIFY SELF-STRENGTHS. IN ADDITION TO CONTINUED GROWTH IN OUR CORE BUSINESS, WE HAVE ALSO EXPERIENCED A SIGNIFICANT EXPANSION IN THE SERVICES PROVIDED THROUGH THE PASSAVANT DEVELOPMENT CORPORATION (PDC) PHARMACIES, WITH THE TOTAL NUMBER OF PRESCRIPTIONS FILLED INCREASING BY 8%. THIS GROWTH IS DEMONSTRATIVE OF THE INNOVATIVE AND SPECIALIZED SERVICES THAT OUR FOUR PHARMACY LOCATIONS ARE ABLE TO PROVIDE TO OVER 119 AGENCIES. PDC PHARMACY'S KNOWLEDGEABLE STAFF TAILOR PRESCRIPTION LABELING, PACKAGING, DISPENSING AND DELIVERY TO MEET THE SPECIFIC MEDICATION ADMINISTRATION REQUIREMENTS ACROSS THE DISABILITIES COMMUNITY. OUR COMMITMENT TO DEVELOPING EFFICIENCIES FOR OUR CUSTOMERS WAS EXEMPLIFIED THROUGH THE IDENTIFICATION OF GREAT OAK PHARMACY IN KANSAS CITY, MO TO BE A BETA TESTER FOR A PAPER-FREE PHARMACY MANAGEMENT AND OPERATIONS SOFTWARE. THE CUSTOMER IMPROVEMENTS GARNERED THROUGH THIS SYSTEM WILL NOW BE REPLICATED ACROSS THE REMAINING PDC PHARMACY LOCATIONS. A NUMBER OF OTHER PROCESSES WERE IMPLEMENTED TO OPTIMIZE WORKFLOW AT EACH PDC PHARMACY LOCATION. ENHANCED INVENTORY MANAGEMENT CONTROLS WERE PUT IN PLACE TO ALLOW FOR MORE ACCURATE ON-HAND QUANTITIES AND LOWER OVERALL INVENTORY VALUES. AN ORDER TRACKING SOFTWARE WAS CREATED TO ALLOW OUR CUSTOMERS TO MORE EASILY ORGANIZE AND MANAGE ORDERS FROM PHYSICIANS, AND ALL FOUR OF OUR LOCATIONS NOW PROVIDE CUSTOMERS WITH A PORTAL FOR REORDERING, COMMUNICATING AND ACCESSING VALUABLE MEDICAL RECORDS FOR THEIR INDIVIDUALS. ALL OF THESE OFFERINGS IMPROVE THE CUSTOMER EXPERIENCE AND ENABLE OUR LOCATIONS TO MAINTAIN AN AVERAGE MEDICATION ERROR RATE THAT IS FAR BELOW THE INDUSTRY STANDARD. THE LIFE ENRICHMENT TRUST (LET) CONTINUES TO EXPERIENCE ACCELERATED GROWTH THROUGH THE CULTIVATION OF ITS RELATIONSHIPS WITH VARIOUS FINANCIAL INSTITUTIONS AND MASS TORT SETTLEMENT FIRMS. LET'S ARRAY OF TRUST SERVICES ALLOWS FOR THE PROTECTION AND PRESERVATION OF AN INDIVIDUAL'S ELIGIBILITY TO RECEIVE GOVERNMENT BENEFITS, WHILE ENABLING FAMILIES AND INDIVIDUALS TO PLAN FOR THEIR LOVED ONES' FINANCIAL FUTURE. THE LET GEOGRAPHICAL FOOTPRINT ALSO EXPANDED SIGNIFICANTLY DURING THIS FISCAL YEAR, WITH LET HAVING NOW ESTABLISHED POOLED TRUST ACCOUNTS FOR OVER 1,800 INDIVIDUALS ACROSS THIRTY-SEVEN STATES. FURTHER EVIDENCE OF THE DEMAND FOR, AND VALUE OF LET'S SERVICES IS THE NEWLY FORMED LIFE ENRICHMENT TRUST OF NEW JERSEY, INC. (LET OF NJ), A NEW ENTITY THAT WILL ENABLE US TO PROVIDE OUR FULL RANGE OF TRUST SERVICES TO FAMILIES AND INDIVIDUALS THAT RESIDE WITHIN THE STATE OF NEW JERSEY. ANOTHER ONE OF THE PASSAVANT MEMORIAL HOMES FAMILY OF SERVICES THAT HAS ACHIEVED SIGNIFICANT MILESTONES IS ACCESSIBLE DENTAL SERVICES (ADS). ADS DELIVERS SPECIALIZED, QUALITY DENTAL CARE TO 2,473 INDIVIDUALS WITH DISABILITIES ACROSS THE COMMONWEALTH. PREVENTATIVE DENTISTRY AND RESTORATIVE TREATMENT IS MADE AVAILABLE THROUGH ADS AT SIX DIFFERENT OFFICE LOCATIONS WITHIN WESTERN PENNSYLVANIA, ALONG WITH OUR MOBILE DENTAL UNIT THAT TRAVELS TO OUTLYING REGIONS TO ENSURE THAT EVEN INDIVIDUALS WITH DISABILITIES FROM THE MOST REMOTE AND RURAL AREAS HAVE ACCESS TO THE COMPASSIONATE DENTAL CARE THAT THEY DESERVE. ADS WAS ABLE TO REACH AN AGREEMENT WITH ONE OF THE REGIONAL INSURANCE CARRIERS IN THE EASTERN PART OF THE COMMONWEALTH TO ONCE AGAIN MEET THE NEEDS OF FAMILIES AND INDIVIDUALS FROM SULLIVAN COUNTY, PENNSYLVANIA. THIS SPEAKS TO THE DEDICATION OF THE ADS PROFESSIONAL TEAM AND THEIR ABILITY TO EXPERTLY ADDRESS THE NEEDS OF THIS POPULATION. OUTSIDE OF THE DIRECT SERVICES AND SUPPORTS THAT PASSAVANT MEMORIAL HOMES IS ABLE TO PROVIDE FOR OUR INDIVIDUALS, IT IS ALSO THE MISSION OF THE ORGANIZATION TO ADVOCATE FOR THE INCLUSION OF INDIVIDUALS WITH INTELLECTUAL DISABILITIES WITHIN THE COMMUNITY, AND PROVIDE OPPORTUNITIES FOR EDUCATION AND INTEGRATION. IN THAT REGARD, THIS PAST YEAR HAS BEEN OUR MOST IMPACTFUL YET, WITH THE PASSAVANT MEMORIAL HOMES FOUNDATION (PMHF) HOSTING THE INAUGURAL BENEFIT BASH. IN ADDITION TO THE PMHF ANNUAL GOLF OUTING AND THE JAMIE ELLENBERGER SCHOLARSHIP THAT PMHF OFFERS EVERY YEAR, THIS FUN NEW EVENT WAS A RESOUNDING SUCCESS, WITH EXCELLENT PARTICIPATION AND SUPPORT FROM PASSAVANT CONSUMERS, STAFF AND BUSINESS PARTNERS. I AM TRULY GRATEFUL TO ALL WHO SUPPORT OUR MISSION AND ENABLE US TO PROVIDE COMPASSIONATE CARE TO ALL OF THE INDIVIDUALS WHO BENEFIT FROM OUR "FAMILY OF SERVICES." I WOULD LIKE TO EXPRESS MY DEEPEST GRATITUDE TO THE DEDICATED BOARD OF DIRECTORS WHO PROVIDE GUIDANCE AND OVERSIGHT THAT ALLOWS US TO CONTINUE TO POSITIVELY IMPACT THOUSANDS OF LIVES THROUGHOUT ALL OF OUR SERVICE OFFERINGS. OUR FOCUS REMAINS ON PROVIDING THE HIGHEST QUALITY SERVICES AND PROMOTING INDIVIDUAL ACHIEVEMENT. I THANK YOU FOR YOUR INTEREST IN OUR ORGANIZATION AND FOR ALL THAT YOU DO TO ASSIST US IN MEETING THESE OBJECTIVES AS WE STRIVE TO EXCEED INDIVIDUAL AND FAMILY EXPECTATIONS. MAY GOD'S BLESSINGS BE WITH YOU. - RICK D. SENFT, CEO AND PRESIDENT ARTICLES FROM ANNUAL REPORT ADVANCING THE MISSION THROUGH INDIVIDUAL ACHIEVEMENTS AS 2015 COMES TO A CLOSE, I AM PLEASED TO HAVE THE OPPORTUNITY TO THANK EACH OF YOU WHO CONTINUE TO SUPPORT THE MISSION OF THE PASSAVANT MEMORIAL HOMES FAMILY OF SERVICES. THIS HAS BEEN A BANNER YEAR, AND WE CONTINUE TO PROVIDE QUALITY SUPPORTS TO INDIVIDUALS AND FAMILIES THROUGH OUR MANY SERVICE OFFERINGS. I HAVE THE UNIQUE OPPORTUNITY TO SEE THIS WELL-OILED MACHINE AT WORK, AND CAN REPORT THAT THE ORGANIZATION BENEFITS EACH DAY FROM THE EXCEPTIONAL EXECUTIVE LEADERSHIP OF RICK D. SENFT, CHIEF EXECUTIVE OFFICER AND PRESIDENT, AND HIS DEDICATED MANAGEMENT TEAM WHO ADVANCE INITIATIVES THAT NOT ONLY STRENGTHEN THE BONDS WITH OUR BUSINESS PARTNERS, BUT ARE ALSO DEDICATED TO SUPPORTING THE INDIVIDUAL ACHIEVEMENTS OF THOSE WE SERVE. I AM CONTINUALLY INSPIRED BY THE COMMITMENT OF EACH OF OUR EXECUTIVES, MANAGERS AND STAFF. NO CHALLENGE TOO GREAT, NO TASK TOO SMALL. EACH INDIVIDUAL HAS A DREAM, AND WITH PURPOSE WE ENDEAVOR TO PROVIDE THE SUPPORT NEEDED TO ACHIEVE THAT GOAL. SOME FALL SHORT, BUT EACH INDIVIDUAL IS ENRICHED BY THE OPPORTUNITY. OUR FOCUS CONTINUES TO BE ON THE DEVELOPMENT OF CREATIVE SOLUTIONS FOR EACH INDIVIDUAL TO REALIZE THEIR DREAMS. WE ARE BLESSED TO HAVE THE VISION OF EXTRAORDINARY LEADERSHIP TO PLOT OUR COURSE AND A TEAM OF PROFESSIONAL MANAGEMENT STAFF WHO IMPLEMENT THESE INITIATIVES AND NAVIGATE THE DAILY CHALLENGES TO ENSURE PERSONAL SUCCESS FOR INDIVIDUALS AND FAMILIES. OUR MANY OFFERINGS PROVIDE OPPORTUNITIES FOR SUCCESS AND ACHIEVEMENTS FOR THOSE WE SUPPORT THROUGH THE PARENT CORPORATION, PASSAVANT MEMORIAL HOMES AND THE SUBSIDIARY AND AFFILIATE ORGANIZATIONS OF PDC PHARMACY, LIFE ENRICHMENT TRUST, ACCESSIBLE DENTAL SERVICES, INVIVASPAN HEALTH, PASSAVANT MEMORIAL HOMES FOUNDATION, AND THE NEWEST MEMBER OF THE FAMILY, THE LIFE ENRICHMENT TRUST OF NEW JERSEY. IN 2014 WE CRESTED THE $100 MILLION MARK WITH OUR CONSOLIDATED OPERATING BUDGETS. WE HAVE CONTINUED WITH STEADY GROWTH IN 2015, EXCEEDING $107 MILLION IN OPERATING REVENUE AND REACHING OVER 10,500 LIVES THROUGH THE CONTINUED IMPLEMENTATION OF INNOVATIVE SUPPORTS AND SERVICES. WE NOW SERVE INDIVIDUALS RESIDING IN 37 STATES ACROSS OUR GREAT NATION. WE WILL CONTINUE TO ADVANCE OUR MISSION THROUGH THE PROVISION OF INNOVATIVE SERVICES AND WITH THE SUPPORT AND ASSISTANCE OF OUR VALUED BUSINESS PARTNERS. THE SCOPE AND DEPTH OF THE PASSAVANT MEMORIAL HOMES FAMILY OF SERVICES HAS ALLOWED US TO MAKE A POSITIVE IMPACT IN THE MANY LIVES WE TOUCH. THROUGH THE PROVISION OF QUALITY SUPPORTS WE HAVE WITNESSED PROFOUND INDIVIDUAL ACCOMPLISHMENTS AND ARE PLEASED TO REPORT GREAT SATISFACTION BY THOSE IN SERVICE AND THEIR FAMILIES. AS I TAKE THE REINS AS BOARD CHAIR OF THIS DYNAMIC ORGANIZATION, I AM LEFT FEELING THAT I HAVE VERY BIG SHOES TO FILL, WITH JACK WADDELL HAVING SERVED AS BOARD CHAIR FOR THE PREVIOUS 12 YEARS. FURTHER, JACK HAS SERVED ON THE BOARD OF THIS GREAT ORGANIZATION FOR A TOTAL OF 33 YEARS. HE HAS BEEN A CONSTANT DRIVING FORCE AND MENTOR FOR ALL THOSE WHO HAVE MADE THE COMMITMENT TO BOARD SERVICE, DEMONSTRATING STRENGTH AND RESOLVE TO ENSURE THE BEST CARE AND OPPORTUNITIES ARE PRESENTED TO EVERY INDIVIDUAL THROUGH EACH OF THE MANY OFFERINGS ACROSS THE ORGANIZATION. AS I LOOK AHEAD, I KNOW THAT I HAVE A MONUMENTAL TASK AHEAD OF ME AS WELL AS A TREMENDOUS LEGACY TO HONOR. I APPRECIATE ALL THAT HE HAS DONE TO LEAD ME AND MY FELLOW BOARD MEMBERS OVER THE YEARS, AND TAKE COMFORT IN KNOWING THAT JACK REMAINS AVAILABLE TO ASSIST IN THE GUIDANCE AND SUPPORT TO EACH OF THE BOARD MEMBERS. HE HAS BEEN AN EXCEPTIONAL ROLE MODEL FOR ME, ONE I HOPE TO EMULATE AND HONOR AS I TAKE ON THE BOARD CHAIR RESPONSIBILITIES. DURING THIS, MY FIRST YEAR IN A LEADERSHIP ROLE FOR PASSAVANT MEMORIAL HOMES BOARD OF DIRECTORS, I AM HONORED TO BE PROVIDING YOU WITH THIS ANNUAL MESSAGE. OUR SERVICE ORGANIZATION IS 120 YEARS YOUNG AND I GET A PROFOUND SENSE THAT WE ARE JUST GETTING STARTED. I THANK EACH OF YOU WHO TAKE INTEREST IN OUR MISSION AND CONTINUE TO SUPPORT OUR WORK. I WISH TO THANK EACH OF MY COLLEAGUES ON THE VARIOUS BOARDS OF PASSAVANT MEMORIAL HOMES FAMILY OF SERVICES WHO SERVE THROUGH GOVERNANCE ROLES, KEEPING THE INDIVIDUALS AND THEIR FAMILIES FOREMOST IN ALL THAT WE DO. I WANT TO RECOGNIZE AND EXTEND TREMENDOUS GRATITUDE FOR THE REMARKABLE EXECUTIVE LEADERSHIP OF RICK D. SENFT, CEO AND PRESIDENT, THE COMMITMENT OF THE MANAGEMENT TEAM TO IMPLEMENT HIS VISION, AND THE EXCEPTIONAL TEAM OF EMPLOYEES WHO CONSISTENTLY WORK TO FULFILL OUR MISSION. THANK YOU AND MAY GOD BLESS YOU ALWAYS, - HAZEL SHEFFIELD, BOARD CHAIR PASSAVANT MEMORIAL HOMES SELF-INSURED WC TRUST 100 PASSAVANT WAY PITTSBURGH PA 15238 251768224 TO FUND THE WORKERS COMPENSATION TRUST PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT HOUSING INITIATIVES I 100 PASSAVANT WAY PITTSBURGH PA 15238 251891795 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT HOUSING INITIATIVES II 100 PASSAVANT WAY PITTSBURGH PA 15238 251891797 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT HOUSING INITIATIVES III 100 PASSAVANT WAY PITTSBURGH PA 15238 251891798 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 THE LIFE ENRICHMENT TRUST INC 100 PASSAVANT WAY PITTSBURGH PA 15238 300223116 TO LEGALLY PRESERVE ASSETS FOR DISABLED INDIVIDUALS PA 501(C)(3) LINE 11A, I PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES I INC 100 PASSAVANT WAY PITTSBURGH PA 15238 200672805 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES II INC 100 PASSAVANT WAY PITTSBURGH PA 15238 200672875 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES III INC 100 PASSAVANT WAY PITTSBURGH PA 15238 200672915 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES V INC 100 PASSAVANT WAY PITTSBURGH PA 15238 202340470 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES VI 100 PASSAVANT WAY PITTSBURGH PA 15238 202340513 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES VII 100 PASSAVANT WAY PITTSBURGH PA 15238 208205630 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES VIII INC 100 PASSAVANT WAY PITTSBURGH PA 15238 208207234 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES IX 100 PASSAVANT WAY PITTSBURGH PA 15238 261631009 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES FOUNDATION 100 PASSAVANT WAY PITTSBURGH PA 15238 251869155 FUNDRAISING FOR OPERATIONS OF PASSAVANT MEMORIAL HOMES PA 501(C)(3) LINE 7 PASSAVANT MEMORIAL HOMES INC 1 ACCESSIBLE DENTAL SERVICES INC 100 PASSAVANT WAY PITTSBURGH PA 15238 262432726 PROVIDE DENTAL CARE FOR INDIVIDUALS WITH DISABILITIES PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT MEMORIAL HOMES X INC 100 PASSAVANT WAY PITTSBURGH PA 15238 264399316 TO DEVELOP AND OPERATE REAL ESTATE TO HOUSE MH/MR CONSUMERS PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 INVIVASPAN HEALTH INC 100 PASSAVANT WAY PITTSBURGH PA 15238 454279696 PROVIDE HEALTH CARE FOR INDIVIDUALS WITH DISABILITIES PA 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 LIFE ENRICHMENT TRUST OF NEW JERSEY INC 100 PASSAVANT WAY PITTSBURGH PA 15238 473942494 TO LEGALLY PRESERVE ASSETS FOR DISABLED INDIVIDUALS NJ 501(C)(3) LINE 9 PASSAVANT MEMORIAL HOMES INC 1 PASSAVANT DEVELOPMENT CORPORATION 100 PASSAVANT WAY PITTSBURGH PA 15238 232950006 BUSINESS SERVICES PA PASSAVANT MEMORIAL HOMES INC C -674519 2145906 1.00000 1 PDC PHARMACY COLORADO INC 100 PASSAVANT WAY PITTSBURGH PA 15238 270450590 SALES OF PHARMACOLOGICALS PA PASSAVANT MEMORIAL HOMES INC C -336269 1045682 1.00000 1 VALLEY PRESCRIPTION SERVICES INC 100 PASSAVANT WAY PITTSBURGH PA 15238 431495148 SALES OF PHARMACOLOGICALS PA PASSAVANT MEMORIAL HOMES INC C -520096 4427569 1.00000 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 PASSAVANT DEVELOPMENT CORPORATION J 28529 FMV PASSAVANT DEVELOPMENT CORPORATION P 6214254 FMV