2015-05-08T14:00:58-05:00 2014-06-30 251408703 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 990 2013-07-01 232935278 THE CHILDREN'S INSTITUTE OF PITTSBURGH CHIL 4124202400 1405 SHADY AVENUE PITTSBURGH PA 152171360 DAVID K MILES CHIEF EXECUTIVE OFFICER 4124202400 2015-05-05 1 SUSAN M KIRSCH P00341397 4122613644 2013 2016-02-25 16:41:14Z DAVID K MILES 1405 SHADY AVENUE PITTSBURGH PA 152171360 138691309 0 X WWW.AMAZINGKIDS.ORG X 1998 PA POST-ACUTE CARE PEDIATRIC SPECIALTY INPATIENT AND OUTPATIENT HOSPITAL SERVICES, APPROVED PRIVATE SCHOOL GRADES K-12 AND A SOCIAL SERVICE AGENCY PROVIDING INTENSIVE FAMILY SUPPORT, FOSTER CARE AND ADOPTION SERVICES. 24 22 710 245 11338 -43097 3297829 4548837 37602798 36436666 3667807 12994224 0 0 44568434 53979727 0 0 0 0 33465757 30329373 0 0 1189705 14918190 13717763 48383947 44047136 -3815513 9932591 155157588 167703028 48241929 39894454 106915659 127808574 X THE CHILDREN'S INSTITUTE OF PITTSBURGH IS DEDICATED TO IMPROVING QUALITY OF LIFE FOR CHILDREN, YOUNG PEOPLE AND THEIR FAMILIES BY PROVIDING A SPECIALIZED CONTINUUM OF SERVICES THAT ENABLES THEM TO REACH THEIR POTENTIAL. 1 0 38060364 36436666 THE CHILDREN'S INSTITUTE IS A LEADING CENTER FOR PEDIATRIC REHABILITATION, COMPLEX MEDICAL CARE, EDUCATION FOR CHILDREN WITH SPECIAL NEEDS AND FAMILY PLACEMENT, PRESERVATION, REUNIFICATION AND ENRICHMENT SERVICES. ESTABLISHED IN 1902, THE CHILDREN'S INSTITUTE IS AN INDEPENDENT, NONPROFIT, LICENSED ORGANIZATION IN PITTSBURGH DEDICATED TO IMPROVING THE QUALITY OF LIFE FOR CHILDREN, YOUNG PEOPLE AND THEIR FAMILIES BY PROVIDING A SPECIALIZED CONTINUUM OF SERVICES THAT ENABLES THEM TO MEET THEIR POTENTIAL. IT IS THE ONLY ORGANIZATION IN PENNSYLVANIA OFFERING A HOSPITAL, A SCHOOL AND A SOCIAL SERVICES AGENCY. THIS UNIQUE, COMPREHENSIVE APPROACH SETS THE ORGANIZATION APART. THE CHILDREN'S INSTITUTE PROVIDES PEDIATRIC REHABILITATION THROUGH THE HOSPITAL; EDUCATIONAL PROGRAMMING THROUGH THE DAY SCHOOL; AND ADOPTION AND FAMILY ENRICHMENT SERVICES THROUGH PROJECT STAR. IN FISCAL YEAR 2014, WE SERVED 6,886 CHILDREN AND THEIR FAMILIES AND PROVIDED $3,331,968 IN UNCOMPENSATED CARE. THE HOSPITAL AT THE CHILDREN'S INSTITUTE OF PITTSBURGH IS ONE OF THE NATION'S PREMIER PEDIATRIC REHABILITATION SPECIALTY HOSPITALS ATTRACTING PATIENTS FROM ACROSS THE COUNTRY AND OCCASIONALLY FROM AROUND THE WORLD. IT IS ACCREDITED BY THE COMMISSION FOR ACCREDITATION OF REHABILITATION FACILITIES (CARF) AND LICENSED BY THE PENNSYLVANIA DEPARTMENT OF HEALTH. IN FISCAL YEAR 2014, THE HOSPITAL PROVIDED INPATIENT AND OUTPATIENT SERVICES FOR 4,439 CHILDREN AND YOUNG ADULTS THROUGH COMPREHENSIVE, STATE-OF-THE-SCIENCE CARE. THE 62-BED INPATIENT UNIT AND OUTPATIENT PHYSICIAN AND THERAPY CLINIC PROVIDE THE MOST COMPREHENSIVE CARE IN THE REGION TO CHILDREN AND ADOLESCENTS WITH SPECIAL AND ORTHOPEDIC NEEDS INCLUDING BRAIN AND SPINAL INJURIES, FEEDING AND SWALLOWING DISORDERS, AND CONGENITAL ABNORMALITIES. THE CENTER FOR PRADER-WILLI SYNDROME IS ONE OF ONLY TWO INPATIENT PROGRAMS IN THE COUNTRY PROVIDING TREATMENT FOR THIS RARE GENETIC CONDITION. A CARE COORDINATION DEMONSTRATION PROJECT WAS LAUNCHED IN 2014 TO ASSIST FAMILIES IN COORDINATING HEALTH AND RELATED SERVICES FOR CHILDREN WITH MEDICAL COMPLEXITY. THE HOSPITAL IS THE ONLY CARF-ACCREDITED FREESTANDING PEDIATRIC SPECIALTY REHABILITATION HOSPITAL IN PENNSYLVANIA AND ONE OF ONLY FIVE IN THE NATION. IT IS ONE OF ONLY EIGHT FACILITIES IN THE COUNTRY WITH A CARF-ACCREDITED PEDIATRIC BRAIN INJURY PROGRAM. THE DAY SCHOOL, LONG REGARDED AS A NATIONAL LEADER IN THE EDUCATION OF CHILDREN WITH DISABILITIES, IS LICENSED BY THE PENNSYLVANIA DEPARTMENT OF EDUCATION AS AN APPROVED PRIVATE SCHOOL AND SERVES STUDENTS AGES FIVE TO 21 WHO ARE CHALLENGED BY COMPLEX NEUROLOGICAL DISABILITIES, INCLUDING AUTISM SPECTRUM DISORDERS. THE DAY SCHOOL IS ONE OF ONLY 23 SCHOOLS IN THE COUNTRY RECOGNIZED BY THE NATIONAL COMMISSION FOR ACCREDITATION OF SPECIAL EDUCATION SERVICES. IN FISCAL YEAR 2014, 194 CHILDREN FROM 68 SCHOOL DISTRICTS FROM NINE COUNTIES IN WESTERN PENNSYLVANIA WERE ENROLLED IN THE DAY SCHOOL.PROJECT STAR IS LICENSED BY THE PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE AS AN ADOPTION, FOSTER CARE AND PRIVATE CHILDREN AND YOUTH SOCIAL SERVICE AGENCY. PROJECT STAR WORKS TO HELP CHILDREN, PARTICULARLY THOSE WITH SPECIAL NEEDS, LIVE IN SAFE, NURTURING "FOREVER" FAMILIES. IN FISCAL YEAR 2014, 2,253 CLIENTS WERE SERVED THROUGH INTENSIVE FAMILY SUPPORT, FAMILY VISITATION AND REUNIFICATION, FAMILY RECRUITMENT, CHILD PLACEMENT THROUGH ADOPTION AND FOSTER CARE, MEDICAL FOSTER CARE AND ENRICHMENT PROGRAMMING. AS AN AFFILIATE MEMBER OF THE STATEWIDE ADOPTION NETWORK (SWAN), PROJECT STAR MAINTAINS CONTRACTS WITH LOCAL, STATEWIDE, AND OUT-OF-STATE COUNTIES IN THE AREAS OF PLACEMENT SERVICES AND FAMILY PRESERVATION/REUNIFICATION SERVICES.IN ADDITION TO PROVIDING DIRECT CARE SERVICES, ADVANCING KNOWLEDGE IN PEDIATRIC REHABILITATION, SPECIAL EDUCATION AND FAMILY PLACEMENT AND PRESERVATION IS A SIGNIFICANT ASPECT OF OUR MISSION. THAT IS WHY, UNLIKE MANY ORGANIZATIONS OF OUR SIZE, WE ENGAGE IN TRANSLATIONAL AND OUTCOMES RESEARCH. CURRENTLY THERE ARE NEARLY TWO DOZEN STUDIES IN THE PIPELINE FROM DESIGN, TO DATA COLLECTION, ANALYSIS AND COMPLETION. PRINCIPAL INVESTIGATORS ARE STAFF PROFESSIONALS COLLABORATING ACROSS A WIDE RANGE OF DISCIPLINES. THE STUDIES, WHICH INVOLVE NOT ONLY THE HOSPITAL, BUT THE DAY SCHOOL AND PROJECT STAR, INCLUDE: DEVELOPING WAYS TO REDUCE THE OCCURRENCE OF PRESSURE SORES IN PATIENTS WITH SPINAL CORD INJURIES; EXAMINING THE SWALLOWING FUNCTION IN PATIENTS WITH PRADER-WILLI SYNDROME; USING COLLABORATIVE ROBOT PLAY TO IMPROVE THE COMMUNICATION SKILLS OF STUDENTS WHO HAVE AUGMENTATIVE COMMUNICATION DEVICES; AND DETERMINING WHETHER, AND TO WHAT DEGREE, FAMILY VISITATION IS MORE PRODUCTIVE IN A HOMELIKE SETTING.BEYOND RESEARCH, MEMBERS OF THE STAFF OF THE CHILDREN'S INSTITUTE CONTINUALLY SHARE THEIR PROFESSIONAL EXPERTISE WITH COLLEAGUES IN THE REGION AND ACROSS THE COUNTRY, INCLUDING AT THE FOLLOWING CONFERENCES AND EVENTS: INTERNATIONAL SOCIETY FOR TECHNOLOGY IN EDUCATION ANNUAL CONFERENCE; INTERNATIONAL MEDICAL CONFERENCE FOR AUTISM RESEARCH; NATIONAL ASSOCIATION FOR SCHOOL PSYCHOLOGISTS, NATIONAL CONVENTION; NATIONAL ASSOCIATION OF LONG TERM HOSPITALS, PHYSICIAN TRAINING CONFERENCE; CHILDREN'S HOSPITAL ASSOCIATION LEADERSHIP CONFERENCE; AND HOSPITAL ASSOCIATION OF PENNSYLVANIA, AMONG OTHERS. PRESENTATIONS AT CONFERENCES AND MEETINGS, LEADERSHIP IN ORGANIZATIONS THAT ADVOCATE AND INFORM, AND TEACHING TOMORROW'S PROFESSIONALS ARE ALL ACTIVITIES THAT ULTIMATELY BENEFIT KIDS AND FAMILIES EVERYWHERE. FOR THOSE IN THE PITTSBURGH AREA, THERE ALSO IS THE OPPORTUNITY TO ATTEND GRAND ROUNDS, A MONTHLY CONTINUING EDUCATION PROGRAM. SIGNIFICANT BOARD PLACEMENTS INCLUDE:1. INSTITUTE OF MEDICINE'S (IOM'S) COMMITTEE ON THE BIOLOGICAL AND PSYCHOSOCIAL EFFECTS OF PEER VICTIMIZATION: LESSONS FOR BULLYING PREVENTION, CHAIR2. AMERICAN HOSPITAL ASSOCIATION REGIONAL POLICY BOARD, SPECIAL CONSTITUENCY SECTION FOR MATERNAL AND CHILD HEALTH, DELEGATE3. CHILDREN'S HOSPITAL ASSOCIATION, EDUCATION COUNCIL4. HOSPITAL COUNCIL OF WESTERN PA5. ABOARD'S AUTISM CONNECTION OF PA, PROFESSIONAL ADVISORY COUNCIL6. AMERICAN COLLEGE OF HEALTHCARE EXECUTIVES, WESTERN PA CHAPTER7. ASSOCIATION OF FUNDRAISING PROFESSIONALS, WESTERN PA CHAPTER PRESIDEMT8. PA EHEALTH INITIATIVE ORGANIZATION, BOARD CHAIR9. THE INTERNATIONAL PEDIATRIC REHABILITATION COLLABORATIVE, VICE CHAIR10. MEDICAL LIBRARY ASSOCIATION, SPECIAL LIBRARIES ASSOCIATION- PITTSBURGH CHAPTER, PROFESSIONAL RECRUITMENT AND RETENTION COMMITTEETHE CHILDREN'S INSTITUTE HOSTS AND SPONSORS A NUMBER OF PROGRAMS FOR THE COMMUNITY. BECAUSE THE CHILDREN AND FAMILIES WE SERVE HAVE SPECIAL NEEDS, WE TAKE EXTRA CARE TO HELP THEM THROUGH CHALLENGING TIMES. THE FAMILY ADVISORY COMMITTEE, WHICH IS COMPRISED OF PARENTS AND CAREGIVERS OF PATIENTS, STUDENTS AND PROJECT STAR CLIENTS, CONTINUES TO OFFER ESSENTIAL CAREGIVER INPUT TO INFORM OUR PROGRAMS AND SERVICES. ADDITIONALLY, WE OFFER SUMMER PROGRAMS FOR CHILDREN WITH SPECIAL NEEDS. ONE OF OUR MOST NOTABLE SUMMER PROGRAMS IS CAMP SUCCESS, WHICH IS DESIGNED TO HELP AT-RISK CHILDREN FACING HUGE BARRIERS INCLUDING NEURODEVELOPMENTAL DISABILITIES, ECONOMIC CHALLENGES, FOSTER CARE SITUATIONS AND HOMELESSNESS. CHILDREN CAN ATTEND THE CAMP WITH THEIR SIBLINGS AT NO COST. ANOTHER SUCCESSFUL SUMMER PROGRAM IS THE AMAZING BIKE CAMP, A PROGRAM OF "I CAN SHINE" THAT TEACHES CHILDREN WITH SPECIAL NEEDS HOW TO RIDE A BIKE WITHOUT TRAINING WHEELS.THE REACH OF THE CHILDREN'S INSTITUTE GOES FAR BEYOND ITS OWN WORK BY PROVIDING SUPPORT FOR OTHER LIKE-MINDED ORGANIZATIONS SEEKING TO IMPROVE OUR COMMUNITY. FOR EXAMPLE, THE CHILDREN'S INSTITUTE ALLOWS A NUMBER OF OTHER COMMUNITY ORGANIZATIONS TO USE OUR FACILITY SPACE FOR MEETINGS AND ACTIVITIES AT NO CHARGE. MOST SIGNIFICANTLY, THE CHILDREN'S INSTITUTE SERVES AS THE HOST AND FIDUCIARY AGENT FOR WOMEN FOR A HEALTHY ENVIRONMENT. THIS ORGANIZATION EDUCATES AND EMPOWERS WOMEN TO BE AMBASSADORS ABOUT ENVIRONMENTAL RISKS SO THAT THEY CAN MAKE HEALTHY CHOICES FOR THEMSELVES AND THEIR FAMILIES AND ADVOCATE FOR CHANGE FOR A BETTER TOMORROW FOR ALL.THE CHILDREN'S INSTITUTE'S RELATIVELY SMALL SIZE BELIES THE SCOPE AND IMPACT OF OUR WORK ON A REGIONAL, NATIONAL AND INTERNATIONAL LEVEL. OUR CLINICAL, EDUCATION AND FAMILY SUPPORT COMPONENTS ARE INEXTRICABLY RELATED, THEREBY PROVIDING AN UNDUPLICATED, COMPREHENSIVE NETWORK OF SERVICES UNLIKE ANY OTHER PROVIDER. FOR MORE THAN A CENTURY, WE HAVE CONTINUOUSLY EVOLVED TO MEET THE NEEDS OF CHILDREN AND YOUTH WITH SPECIAL NEEDS AND THEIR FAMILIES. BASED ON OUR UNWAVERING COMMITMENT TO THE CHILDREN WE SERVE, WE CONTINUE TO RESPOND NIMBLY TO EMERGING NEEDS - DEVELOPING NEW TREATMENTS, CREATING SOLUTIONS, PUBLISHING AND SHARING OUR KNOWLEDGE AND EXPERTISE IN ORDER TO MEET THE NEEDS IN THE COMMUNITY. 38060364 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 50 0 1 710 1 1 1 0 0 0 0 0 0 0 0 0 X 24 22 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 PA X X JODY MULVIHILL 4124202308 1405 SHADY AVENUE PITTSBURGH PA 152171350 MARSHALL L BALK MD BOARD MEMBER (ENTERED) 1.00 X 0 0 0 GREGORY B BENCKART BOARD MEMBER 1.00 X 0 0 0 ROMAYNE L BOTTI BOARD MEMBER (ENTERED) 1.00 X 0 0 0 SUSAN L BOYLE BOARD MEMBER (ENTERED) 1.00 X 0 0 0 CHRISTINA CARDOSO BOARD MEMBER 1.00 X 0 0 0 PATRICIA S CHESKO BOARD MEMBER 1.00 X 0 0 0 JOHN R DENNY BOARD MEMBER 2.00 X 0 0 0 SHAWN FOX BOARD MEMBER 1.00 X 0 0 0 HOLLY HATCHER-FRAZIER BOARD MEMBER 1.00 X 0 0 0 JOSEPH E IMBRIGLIA MD BOARD MEMBER 1.00 X 0 0 0 JONATHAN M KAMIN BOARD MEMBER 1.00 X 0 0 0 JAY KATARINCIC BOARD MEMBER 1.00 X 0 0 0 ELLEN P KESSLER BOARD MEMBER 1.00 X 0 0 0 JAMES MARCZAK BOARD MEMBER 1.00 X 0 0 0 ALLAN MACDOUGALL III BOARD MEMBER 1.00 X 0 0 0 F BROOKS ROBINSON JR BOARD MEMBER 1.00 X 0 0 0 SUSAN BAKER SHIPLEY BOARD MEMBER 1.00 X 0 0 0 NITA WADHWANI BOARD MEMBER 1.00 X 0 0 0 MICHAEL J HANNON CHAIRMAN 2.00 X X 0 0 0 J KEEFE ELLIS JR VICE CHAIRMAN 2.00 X X 0 0 0 PAMELA W GOLDEN VICE CHAIRMAN 2.00 X X 0 0 0 LISA C FAGAN SECRETARY 1.00 X X 0 0 0 CAROLYN D DURONIO TREASURER (EXITED 03/2014) 1.00 X X 0 0 0 MERRILL P STABILE TREASURER (EFFECTIVE 05/2014) 1.00 X X 0 0 0 DAVID K MILES PRESIDENT AND CEO 50.00 X X 279990 0 19588 JODY MULVIHILL VICE PRESIDENT OF FINANCE 45.00 X 157026 0 9784 STACEY VACCARO CHIEF OPERATING OFFICER 40.00 X 160599 0 19568 JANE TEITZ-KEIM VICE PRESIDENT OF OPERATIONS 45.00 X 204548 0 18215 MARYANNE HENDERSON MD CHIEF MEDICAL OFFICER 40.00 X 224895 0 34223 TIMOTHY J BITTNER VICE PRESIDENT OF OPERATIONS 40.00 X 178008 0 23085 CHERYL A FOGARTY CHIEF SCHOOL ADMINISTRATOR 40.00 X 169829 0 30638 BEVERLY FARINELLI CHIEF NURSING OFFICER 40.00 X 167471 0 8768 SHARON DOROGY CHIEF INFORMATION OFFICER 40.00 X 155379 0 16108 SCOTT FABER MD PHYSICIAN 40.00 X 179500 0 23254 GREGORY CHERPES MD PHYSICIAN 40.00 X 191621 0 10669 HOWARD FREMIER MD PHYSICIAN 40.00 X 189820 0 5784 HELENE CONWAY-LONG VICE PRESIDENT 40.00 X 168712 0 2087 RACHNA KAPOOR PHYSICIAN 40.00 X 143402 0 15134 2570800 0 236905 17 0 1 0 MORRISON MANAGEMENT PO BOX 102289 ATLANTA GA 30368 FOOD SERVICE 870086 CROTHALL 955 CHESTERBROOK BLVD SUITE 300 WAYNE PA 19087 HOUSEKEEPING SERVICES 827203 BUCHANAN INGERSOLL ROONEY 301 GRANT STREET OXFORD CENTRE PITTSBURGH PA 15219 ATTORNEY FEES 262251 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 ACCOUNTING & TAX CONSULTING 137105 MIZRAHI INC 650 SMITHFIELD STREET SUITE 1525 PITTSBURGH PA 15222 MARKETING SERVICES 129466 9 94673 4454164 115740 4548837 PATIENT CARE 900099 14071846 14071846 DAY SCHOOL 900099 12092713 12092713 MEDICARE/MEDICAID PMTS 900099 7427803 7427803 PROJECT STAR 900099 2783815 2783815 DEPARTMENTAL ACTIVITIES 900099 60489 60489 36436666 506703 11338 495365 97194103 5000 84682887 28695 12511216 -23695 12487521 12487521 53979727 36436666 11338 12982886 X 2281995 1875742 308217 98036 21077407 19708204 882979 486224 1397180 1290986 71248 34946 3905667 3608811 199168 97688 1667124 1540412 85014 41698 197288 37 197251 123555 8556 114999 73547 73547 5745458 4289798 1138560 317100 423287 1245 401092 20950 1338238 1220847 102587 14804 889859 771095 97125 21639 736285 611059 118285 6941 212094 208817 1224 2053 124043 101069 13185 9789 87163 36573 50590 3204843 2747230 428194 29419 454716 454716 MEMBERSHIP DUES 93221 25717 59086 8418 MISCELLANEOUS EXPENSES 14166 14166 44047136 38060364 4797067 1189705 2000 1900 6337050 6481030 487350 1187149 4547930 3026157 44213 45259 324331 416841 53472275 28313857 26641755 25158418 95678130 119023113 20938834 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44047136 PART X, LINE 2: INCOME TAXES - CI IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE IRC. ACCORDINGLY, NO PROVISION FOR TAXES HAS BEEN MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. CI IS ALSO EXEMPT FROM STATE INCOME TAX UNDER APPLICABLE STATE STATUTE. CI FOLLOWS THE CODIFICATION TOPIC ON INCOME TAXES. THE TOPIC PRESCRIBES A MINIMUM RECOGNITION THRESHOLD AND MEASUREMENT METHODOLOGY THAT A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN FINANCIAL STATEMENTS. CI'S STATEMENTS OF FINANCIAL POSITION AT JUNE 30, 2014 AND 2013 DO NOT INCLUDE ANY LIABILITIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS; FURTHER, CI HAS NO UNRECOGNIZED TAX BENEFITS. CI IS NO LONGER SUBJECT TO EXAMINATION OF ITS TAX RETURNS FOR YEARS BEFORE 2011. NO INTEREST AND PENALTIES WERE RECORDED IN OPERATING EXPENSES WITHIN THE STATEMENT OF OPERATIONS DURING THE YEARS ENDED JUNE 30, 2014 AND 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED GAIN ON PENSION BENEFIT PLAN COSTS 7,485,094. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE 773,923. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASSED FUNDRAISING EXPENSE 773,923. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 FOREIGN INVESTMENTS N/A 57306129 0 0 0 0 0 0 57306129 0 57306129 1 0 1 1 1 0 1 1 X 1 X 1 X 201.000000000000 1 1 0 1 1 12743 12743 0.00030 9418322 5746295 3672027 0.08340 1598546 1598546 11029611 7344841 3684770 0.08370 16882530 14930771 1951759 0.04430 537951 233182 304769 0.00690 313355 313355 0.00710 33213 33213 0.00080 17767049 15163953 2603096 0.05910 28796660 22508794 6287866 0.14280 0 59012 0 1598456 1598456 X 1 1 1 1 THE CHILDREN'S INSTITUTE OF PITTSBURGH 1405 SHADY AVENUE PITTSBURGH PA 15217 X X X THE CHILDREN'S INSTITUTE OF PITTSBURGH 1 1 X X X X X X X X X 11 1 0 1 X WWW.AMAZINGKIDS.ORG X X X X X X X X X 0 0 1 1 200.000000000000 1 201.000000000000 1 X X X X X X 1 1 X X X 1 0 0 X 0 0 THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 3: IN ORDER TO UNDERSTAND THE NEEDS OF THE COMMUNITY IT SERVES AND HOW TO BEST MEET THOSE NEEDS, THE BOARD, LEADERSHIP AND STAFF OF THE CHILDREN'S INSTITUTE ENGAGED IN A RIGOROUS 18-MONTH STRATEGIC DEVELOPMENT PROCESS IN 2011 AND 2012. TO IDENTIFY POTENTIAL GAPS IN SERVICE AND DETERMINE AN EFFECTIVE COURSE OF ACTION FOR THE FUTURE, THE ORGANIZATION CONDUCTED A THOROUGH ENVIRONMENTAL NEEDS ASSESSMENT AND A COMMUNITY NEEDS ASSESSMENT USING A MIXED METHODOLOGY. THIS INCLUDED A REVIEW OF THE CURRENT ENVIRONMENT, BOARD AND LEADERSHIP COUNCIL INTERVIEWS, STAFF INTERVIEWS AND FOCUS GROUPS, EXTERNAL STAKEHOLDER INTERVIEWS AND SURVEYS, DEMOGRAPHIC ANALYSIS OF SERVICE AREA, SECONDARY RESEARCH, AND COMPETITIVE ANALYSIS. THE CHILDREN'S INSTITUTE DESIGNED PARENT FORUMS TO EXAMINE KEY STRATEGIC QUESTIONS REGARDING CURRENT PROGRAMS, SERVICES AND POSITIONING OF THE CHILDREN'S INSTITUTE, INCLUDING AN OPPORTUNITY FOR PARTICIPANTS TO TALK ABOUT THEIR NEEDS. THE ORGANIZATION ALSO EXPANDED THE FAMILY INPUT PROCESS TO INCLUDE A PARENT SURVEY TO IDENTIFY POTENTIAL GAPS IN SERVICES WITHIN THE LOCAL COMMUNITY. RESPONDENTS COMPLETED AND RETURNED 450 SURVEYS. ADDITIONALLY, AN EXTERNAL CONSULTANT INTERVIEWED INDIVIDUALS FROM KEY STAKEHOLDER GROUPS (THE BOARD, LEADERSHIP COUNCIL, ELECTED OFFICIALS, FUNDERS, CASE MANAGERS, SCHOOL DISTRICTS, APPROVED PRIVATE SCHOOLS, REFERRAL CHANNELS AND MEDICAL ASSOCIATES) AND GATHERED THEIR INPUT REGARDING THE FUTURE DIRECTION AND PRIORITIES FOR EXISTING AS WELL AS POTENTIAL NEW PROGRAMS AND SERVICES. A DETAILED DESCRIPTION OF THE INPUT PROCESS, AS WELL AS THOSE PARTICIPATING IN THE PROCESS IS SET FORTH IN THE CHNA. SEE WWW.AMAZINGKIDS.ORG. THE RESULTS OF STAKEHOLDER INPUT CONFIRMED THE CHILDREN'S INSTITUTE'S INITIAL ASSUMPTIONS THAT COORDINATED CARE (MEDICAL HOME), BEHAVIORAL HEALTH SERVICES AND TRANSITIONAL SERVICES WERE NEEDED FOR CHILDREN AND YOUTH WITH SPECIAL NEEDS AND THEIR FAMILIES. IN RESPONSE TO THESE IDENTIFIED NEEDS, THE CHILDREN'S INSTITUTE DEVELOPED FOUR STRATEGIC INITIATIVES TO BE IMPLEMENTED OVER THE NEXT FOUR YEARS. THE CHNA WAS ADOPTED JUNE 14, 2012 BY THE BOARD OF DIRECTORS. THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 7: THE CHILDREN'S INSTITUTE CANNOT DIRECTLY ADDRESS EACH IDENTIFIED NEED FROM THE COMMUNITY HEALTH NEEDS ASSESSMENT BECAUSE OF FINANCIAL CONSIDERATIONS; THEREFORE THE ORGANIZATION ENGAGED IN A PRIORITIZATION PROCESS. BOARD MEMBERS AND THE LEADERSHIP TEAM OF THE CHILDREN'S INSTITUTE HELD A RETREAT TO REAFFIRM ITS MISSION AND VISION. THE RETREAT PROVIDED THE BOARD THE OPPORTUNITY TO DISCUSS AND BUILD CONSENSUS AROUND THE ELEMENTS OF THE FUTURE VISION FOR THE ORGANIZATION. THE BOARD AFFIRMED THE STRATEGIC DIRECTION OF THE CHILDREN'S INSTITUTE FOR THE FUTURE, RESPONDING TO THE KEY PRIORITY COMMUNITY NEEDS IDENTIFIED IN THE NEEDS ASSESSMENT. THE IDENTIFIED NEEDS AND GAPS RELATIVE TO THE HOSPITAL INCLUDED: 1. NEED TO DEVELOP A "MEDICAL HOME MODEL" THAT WOULD OFFER A SEAMLESS CONTINUUM OF CARE. 2. NEED TO AUGMENT THE CONTINUUM OF CARE WITH BEHAVIORAL HEALTH SERVICES. THE GROUP DISCUSSED AND PRIORITIZED AN OPERATIONAL DEFINITION OF SUSTAINABILITY AS WELL AS PARTNERSHIP CRITERIA. GOALS AND OBJECTIVES WERE IDENTIFIED AND AGREED UPON. BASED ON THE CHILDREN'S INSTITUTE'S LONG HISTORY AND EXPERIENCE IN SERVING CHILDREN WITH SPECIAL NEEDS, CONSUMER INPUT FROM PATIENT FAMILIES, COMMUNITY ASSESSMENTS REGARDING UNMET NEEDS, AND OTHER RESEARCH, THE ORGANIZATION WILL DEVELOP THE FOLLOWING INNOVATIVE PROGRAMS AND SERVICES TO MEET THE ARTICULATED NEEDS OF ITS TARGET POPULATION: 1. PROVIDE MEDICAL HOME SERVICES. 2. OFFER OUTPATIENT BEHAVIORAL HEALTH SERVICES TO AUGMENT THE CONTINUUM OF CARE. 3. DEVELOP A TRANSITIONAL PROGRAM FOR 18-25 YEAR OLDS. 4. ESTABLISH A TELEPRESENCE: TELEHEALTH, TELE-EDUCATION, TELEPRACTICE, TELEVISITATION. THE CHILDREN'S INSTITUTE OF PITTSBURGH PART V, SECTION B, LINE 12I: IN ADDITION TO THE FACTORS IDENTIFIED IN LINES 12A-H, THE ORGANIZATION ALSO EVALUATES WHETHER THE PATIENT HAS EXHAUSTED THEIR MEDICAL BENEFITS, RESIDES OUTSIDE OF THE UNITED STATES OR HAS MEDICAL EXPENSES THAT ARE BEING PAID FROM A TRUST FUND. PART I, LINE 3C: MEDICAL BENEFITS EXHAUSTEDPART I, LINE 3B AND PART V, LINE 11: IN DETERMINING FINANCIAL ASSISTANCE CHILDREN'S INSTITUTE APPLIES A SLIDING FPG SCALE IN CONNECTION WITH THE PROVISION OF DISCOUNTED CARE. THE SCALE BEGINS AT 201% OF THE FEDERAL POVERTY GUIDELINES AND EXTENDS TO 350% OF FEDERAL POVERTY GUIDELINES. IF THE PATIENT'S HOUSEHOLD DOES NOT MEET THE ELIGIBILITY GUIDELINES, THE PATIENT MAY QUALIFY BY DEMONSTRATING THAT MEDICAL EXPENSES AND/OR RELATED CATASTROPHIC EVENTS HAVE RESULTED IN A FINANCIAL BURDEN THAT THREATENS THE FINANCIAL WELL BEING OF THE PATIENT AND HIS/HER FAMILY. THE CHILDREN'S INSTITUTE MUST HAVE THE ABILITY TO VALIDATE THESE EXPENSES. PART III, LINE 2: ACTUAL WRITE OFF METHOD. PART III, LINE 3: CHILDREN'S INSTITUTE DOES NOT TREAT BAD DEBTS AS A COMMUNITY BENEFIT. PART III, LINE 4: SEE PAGE 10, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IN ATTACHED COPY OF AUDITED FINANCIAL STATEMENTS. PART III, LINE 8: THERE WAS NOT A SHORTFALL IN THE CURRENT YEAR. PART III, LINE 9B: ONCE THE FINANCIAL ASSISTANCE APPLICATION HAS BEEN PROCESSED, ALL APPLICABLE DISCOUNTS AND/OR FINANCIAL ASSISTANCE REDUCTIONS ARE POSTED IN ACCORDANCE WITH THE FINANCIAL ASSISTANCE AUTHORIZATION AND LIMITATION ON CHARGES PROCEDURE PRIOR TO SENDING AN INVOICE TO THE FAMILY FOR ANY REMAINING BALANCE. PART VI, LINE 2: DURING THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS, THE MANAGEMENT TEAM OF THE CHILDREN'S INSTITUTE IDENTIFIED COMMUNITY NEEDS. THE SERVICE NUMBERS, NUMBER OF REFERRALS AND WAIT LISTS FOR EACH PROGRAM WERE EVALUATED TO DETERMINE IF THERE WAS A DEMAND FOR THE SERVICES AND WHETHER OR NOT WE WERE SUFFICIENTLY MEETING THAT DEMAND. A CONSUMER ASSESSMENT WAS ALSO CONDUCTED, WHICH PROVIDED INSIGHT INTO WHO WAS CURRENTLY USING THE CHILDREN'S INSTITUTE'S SERVICES AND THE NEEDS OF THOSE CONSUMERS. EXTERNALLY, THE MANAGEMENT TEAM EVALUATED COMMUNITY NEEDS ASSESSMENT REPORTS COMPLETED BY OTHER ORGANIZATIONS AT BOTH THE LOCAL AND REGIONAL LEVEL TO GLEAN ADDITIONAL INSIGHT.TO FURTHER UNDERSTAND THE COMMUNITY'S RELATIONSHIP WITH THE CHILDREN'S INSTITUTE, AN AWARENESS STUDY WAS CONDUCTED IN AUGUST 2010. AN ONLINE SURVEY WAS SENT TO 3,131 INDIVIDUALS ASSOCIATED WITH THE ORGANIZATION AND 407 ONLINE SURVEYS WERE SENT TO MEMBERS OF A MAJOR ONLINE RESEARCH PANEL TARGETED BY ZIP CODE. WITH A 9.3 PERCENT RETURN, THERE WERE 331 SURVEYS COMPLETED. THE SURVEY RESPONSES PROVIDED INSIGHT INTO THE COMMUNITY'S PERCEPTIONS OF THE CHILDREN'S INSTITUTE AND THE SERVICES WE PROVIDE. THE NEEDS OF OUR CLIENT POPULATION AND REFERRAL SOURCES ARE RAPIDLY CHANGING. IN ORDER TO BETTER UNDERSTAND THIS EVOLUTION, OUR CHNA IMPLEMENTATION STRATEGY INCLUDES ONGOING CONVERSATIONS THROUGH OUR PARENTS PANEL MODEL (DRIVEN BY ACCREDIDATION REQUIREMENTS),COMMUNITY INVOLVEMENT IN STANDING COMMITTEES, AND IN REGULAR MEETINGS WITH REFERRAL SOURCES.SEE ATTACHED PDF FOR COMMUNITY HEALTH NEEDS ASSESSMENT IMPLEMENTATION CURRENT YEAR ACTIVITY. PART VI, LINE 3: ALL PATIENTS WITHOUT THE FINANCIAL RESOURCES TO PAY FOR SERVICES MAY APPLY FOR THE CHILDREN'S INSTITUTE OF PITTSBURGH'S (CI'S) FINANCIAL ASSISTANCE PROGRAM. APPLICATIONS MAY BE OFFERED/SUBMITTED PRIOR TO ADMISSION, AT THE TIME OF ADMISSION, DURING THE PATIENT'S STAY, AT THE TIME OF DISCHARGE, AND POST-DISCHARGE BY THE ADMISSIONS/AUTHORIZATION DEPARTMENT, PATIENT CARE MANAGERS OR PATIENT ACCOUNTING. TO APPLY, THE PATIENT MUST COMPLETE A DETERMINATION OF ELIGIBILITY FOR FINANCIAL ASSISTANCE FORM. FINANCIAL ELIGIBILITY IS BASED ON A MULTIPLE OF THE FEDERAL POVERTY GUIDELINES, INCOME AND FAMILY SIZE. THE RECOMMENDATION FOR APPROVAL FOR FINANCIAL ASSISTANCE CARE WILL BE BASED ON MEDICAL ASSISTANCE RECIPIENT STATUS AND CATASTROPHIC MEDICAL EXPENSES. THE PATIENT MAY ALSO QUALIFY BY DEMONSTRATING THAT MEDICAL EXPENSES AND/OR RELATED CATASTROPHIC EVENTS HAVE RESULTED IN A FINANCIAL BURDEN THAT THREATENS THE FINANCIAL WELL BEING OF THE PATIENT AND HIS/HER FAMILY. THE PATIENT ACCESS EMPLOYEE REVIEWS THE INSURANCE BENEFITS AND CALLS THE FAMILY AND EXPLAINS POTENTIAL ELIGIBILITY FOR MEDICAL ASSISTANCE OR CHARITY CARE.AN OVERVIEW OF THE FINANCIAL ASSISTANCE POLICY MAY BE FOUND ON THE CHILDREN'S INSTITUTE'S WEBSITE. PART VI, LINE 4: THE CHILDREN'S INSTITUTE SERVES CHILDREN WITH SPECIAL NEEDS AND THEIR FAMILIES. IN 2012, THE CHILDREN'S INSTITUTE SERVED 6,432 CHILDREN AND THEIR FAMILIES FROM WESTERN PENNSYLVANIA AND BEYOND. DEMOGRAPHICS OF CLIENTS SERVED INCLUDE: -GENDER: 60 PERCENT MALE AND 40 PERCENT FEMALE -AGE: RANGE WAS LESS THAN 1 YEAR THROUGH AGE 21, WITH AVERAGE AGE OF 9 YEARS (EXCEPTION IS PRADER-WILLI SYNDROME/BEHAVIORAL DISORDERS PROGRAM WHICH SERVES BOTH CHILDREN AND ADULTS)-94 PERCENT OF PROGRAM PARTICIPANTS WERE PENNSYLVANIA RESIDENTS, WITH THE REMAINING 6% COMING FROM 26 STATES AND CANADA; -51 PERCENT WERE ALLEGHENY COUNTY RESIDENTS, WITH WESTMORELAND, BEAVER, BUTLER AND WASHINGTON REPRESENTING THE MOST COMMON COUNTY OF RESIDENCE OF THE BALANCE.-30 PERCENT WERE RESIDENTS OF THE CITY OF PITTSBURGH.THE CHILDREN'S INSTITUTE IS ONE OF ONLY 20 FREE-STANDING PEDIATRIC REHABILITATION SPECIALTY HOSPITALS IN THE NATION; THEREFORE, PATIENTS OFTEN TRAVEL GREAT DISTANCES TO RECEIVE INPATIENT AND OUTPATIENT SERVICES. PATIENTS HAVE TRAVELED FROM AS FAR WEST AS CALIFORNIA AND EVEN FROM CANADA FOR INPATIENT SERVICES. FOR OUTPATIENTS SERVED, NUMEROUS OUTPATIENTS TRAVELED FROM RURAL AREAS OF PENNSYLVANIA, WEST VIRGINIA AND OHIO FOR SERVICES ON A REGULAR BASIS. IN ADDITION, OUR PRADER-WILLI SYNDROME PROGRAM - ONE OF OUR FIVE CENTERS OF EXCELLENCE - OFFERS THE ONLY INPATIENT TREATMENT FOR PRADER-WILLI SYNDROME IN THE WORLD. THE PROGRAM HAS TREATED PATIENTS NATIONALLY AS WELL AS INTERNATIONALLY FROM AS FAR AWAY AS SAUDI ARABIA. PART VI, LINE 5: THE ORGANIZATION'S BOARD OF DIRECTORS IS COMPRISED OF INDIVIDUALS WHO REPRESENT THE COMMUNITY. IN ACCORDANCE WITH THE ORGANIZATION'S ARTICLES OF INCORPORATION, ANY SURPLUS FUNDS ARE REINVESTED TO SUPPORT THE OPERATIONS OF THE ORGANIZATION. X 1 1 X X X X 0 0 0 0 0 0 0 1 0 DAVID K MILES PRESIDENT AND CEO 218369 0 48719 0 12902 0 0 0 19588 0 299578 0 0 0 JODY MULVIHILL VICE PRESIDENT OF FINANCE 138398 0 16806 0 1822 0 0 0 9784 0 166810 0 0 0 STACEY VACCARO CHIEF OPERATING OFFICER 138553 0 21793 0 253 0 0 0 19568 0 180167 0 0 0 JANE TEITZ-KEIM VICE PRESIDENT OF OPERATIONS 169634 0 33938 0 976 0 0 0 18215 0 222763 0 0 0 MARYANNE HENDERSON MD CHIEF MEDICAL OFFICER 193617 0 29506 0 1772 0 14781 0 19442 0 259118 0 0 0 TIMOTHY J BITTNER VICE PRESIDENT OF OPERATIONS 149200 0 27490 0 1318 0 0 0 23085 0 201093 0 0 0 CHERYL A FOGARTY CHIEF SCHOOL ADMINISTRATOR 146858 0 20992 0 1979 0 11473 0 19165 0 200467 0 0 0 BEVERLY FARINELLI CHIEF NURSING OFFICER 148862 0 18000 0 609 0 0 0 8768 0 176239 0 0 0 SHARON DOROGY CHIEF INFORMATION OFFICER 155379 0 0 0 0 0 0 0 16108 0 171487 0 0 0 SCOTT FABER MD PHYSICIAN 177886 0 0 0 1614 0 0 0 23254 0 202754 0 0 0 GREGORY CHERPES MD PHYSICIAN 191024 0 0 0 597 0 0 0 10669 0 202290 0 0 0 HOWARD FREMIER MD PHYSICIAN 188136 0 0 0 1684 0 3423 0 2361 0 195604 0 0 0 HELENE CONWAY-LONG VICE PRESIDENT 141778 0 25791 0 1143 0 0 0 2087 0 170799 0 0 0 RACHNA KAPOOR PHYSICIAN 143116 0 0 0 286 0 5771 0 9363 0 158536 0 0 0 PART I, LINE 1A THE CHIEF EXECUTIVE OFFICER HAS A MEMBERSHIP TO A SOCIAL CLUB IN THE REGION FOR WHICH THE ORGANIZATION PAYS DUES ON HIS BEHALF. BUSINESS AND PERSONAL USE ARE ACCOUNTED FOR IN ACCORDANCE WITH THE ORGANIZATION'S EXPENSE REIMBURSEMENT POLICY. THE VALUE OF ANY PERSONAL USE IS REPORTED AS COMPENSATION AND INCLUDED ON HIS FORM W-2. PART I, LINE 7 BONUS PAYMENTS WERE AWARDED DURING THE CALENDAR YEAR 2013. FORM 990, SCHEDULE J, PART II: CERTAIN INDIVIDUALS LISTED IN PART II ARE PARTICIPANTS IN THE ORGANIZATION'S DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE/DECREASE IN VALUE FOR EACH INDIVIDUAL IS NOT AVAILABLE DUE TO THE FACT THAT THE ACTUARIAL VALUE IS CALCULATED ON A PLAN LEVEL AND NOT AN INDIVIDUAL PARTICIPANT BASIS. A ALLEGHENY COUNTY HOSPITAL DEVELOPMENT 251327925 01728AB96 2005-06-22 15155000 FACILITY PURCHASE AND RENOVATION 0 0 0 B ALLEGHENY COUNTY HOSPITAL DEVELOPMENT 251327925 01728AC20 2005-06-22 10105000 FACILITY PURCHASE AND RENOVATION 0 0 0 A 15155000 144264 15010736 2008 0 0 1 1 B 10105000 96192 10008808 2008 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 1 1 0 0 0 0 B 1 1 0 0 0 0 A 0 B 0 SCHEDULE K SUPPLENTAL INFORMATION PLEASE NOTE FORM 8038 THAT WAS FILED IN CONNECTION WITH THIS TAX EXEMPT BOND FINANCING IMPROPERLY REPORTED THIS TRANSACTION AS A SINGLE ISSUANCE. THE INFORMATION SET FORTH ON SCHEDULE K CORRECTLY REFLECTS THE FINANCING TRANSACTIONS. PNC BANK BOARD CHAIRMAN 283838 SEE SCH O MICHAEL J. HANNON IS THE EXECUTIVE VICE PRESIDENT AND THE CHIEF CREDIT OFFICER OF PNC BANK. PNC BANK PROVIDES FINANCIAL SERVICES TO CHILDREN'S INSTITUTE. THIS TRANSACTION WAS REVIEWED IN ACCORDANCE WITH, AND COMPLIES WITH, THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. IN ADDITION, THE TRANSACTION WAS CONDUCTED AT FAIR MARKET VALUE. 0 X 0 N/A X 0 N/A X 3 91905 FAIR MARKET VALUE X 67 0 N/A X MISC GIFT CAR 306 23835 FAIR MARKET VALUE X MEDICAL EQUIP 9 0 N/A X TOYS & GAMES 541 0 N/A X MISCELLANEOUS 256 0 N/A 0 0 1 0 FORM 990, PART III, LINE 2 CARE COORDINATION PROGRAM DEVELOPED THROUGH GRANT FUNDING. THE GRANT PERIOD IS 2 YEARS. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL HAVE THE POWER TO TRANSACT ALL REGULAR BUSINESS OF THE CORPORATION DURING THE PERIOD BETWEEN THE MEETINGS OF THE BOARD OF DIRECTORS, SUBJECT TO ANY PRIOR LIMITATIONS IMPOSED BY THE BOARD OF DIRECTORS AND WITH THE UNDERSTANDING THAT ALL MATTERS OF MAJOR IMPORTANCE WILL BE REFERRED TO THE BOARD OF DIRECTORS FOR APPROVAL. MINUTES OF THE EXECUTIVE COMMITTEE MEETINGS AND REPORTS OF ITS ACTIONS SHALL BE SUBMITTED TO THE BOARD OF DIRECTORS AND ITS ACTIONS SHALL BE SUBJECT TO APPROVAL OR DISAPPROVAL AT THE NEXT REGULAR BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 11 THE CHILDREN'S INSTITUTE RECOGNIZES THAT AS PART OF THE BOARD OF DIRECTORS' GOVERNANCE ROLE, THEY SHOULD REVIEW THE IRS FORM 990. THE AFOREMENTIONED REVIEW HAS BEEN DELEGATED BY THE BOARD TO THE AUDIT COMMITTEE. THE CHILDREN'S INSTITUTE (CI) ALONG WITH CI'S CERTIFIED PUBLIC ACCOUNTING FIRM ARE RESPONSIBLE FOR THE TIMELY PREPARATION OF FORM 990. THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS REVIEWED THE COMPLETED FORM 990 IN ADVANCE OF AN AUDIT COMMITTEE MEETING TO ENABLE A DETAILED CONSCIENTIOUS REVIEW BY COMMITTEE MEMBERS. THE APPROPRIATE REPRESENTATIVES OF THE CERTIFIED PUBLIC ACCOUNTING FIRM AND CI'S VICE PRESIDENT OF FINANCE ADDRESSED QUESTIONS AND CONCERNS OF THE AUDIT COMMITTEE. AFTER INPUT FROM THE AUDIT COMMITTEE WAS APPROPRIATELY ADDRESSED, A COMPLETE COPY OF THE RETURN WAS PROVIDED TO EACH MEMBER OF THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C THE CHILDREN'S INSTITUTE HAS A CONFLICT OF INTEREST POLICY THAT IS INCLUDED IN THE CODE OF CONDUCT. THIS POLICY PROVIDES INFORMATION TO ALL DIRECTORS, OFFICERS, EMPLOYEES, PHYSICIANS AND VOLUNTEERS REGARDING REQUIREMENTS FOR DISCLOSURE AND THE SUBSEQUENT CORPORATE ACTION REQUIRED REGARDING SUCH TRANSACTIONS. CI, THROUGH ITS BOARD OF DIRECTORS, BELIEVES IT IS ESSENTIAL THAT ALL SUCH INDIVIDUALS FULLY AND COMPLETELY UNDERSTAND THE RESPONSIBILITIES THE INDIVIDUAL HAS REGARDING POTENTIAL CONFLICTS OF INTEREST. CI ALSO BELIEVES THAT IT IS VERY IMPORTANT THAT ALL SUCH INDIVIDUALS UNDERSTAND THE PROCEDURES UTILIZED BY CI IN DEALING WITH POTENTIAL CONFLICTS OF INTEREST. THIS POLICY IS INTENDED TO SUPPLEMENT BUT NOT REPLACE APPLICABLE PENNSYLVANIA STATE LAW GOVERNING CONFLICTS OF INTEREST APPLICABLE TO NONPROFIT AND CHARITABLE CORPORATIONS. TO THE EXTENT THAT THIS POLICY CONFLICTS WITH THE PROVISIONS OF APPLICABLE PENNSYLVANIA LAW GOVERNING CONFLICTS OF INTERESTS, THE APPLICABLE PROVISIONS OF PENNSYLVANIA LAW SHALL GOVERN AND CONTROL. EACH MEMBER OF THE GOVERNING BODY, EMPLOYEE AND VOLUNTEER HAS AN OBLIGATION TO EARN THE TRUST AND CONFIDENCE OF THE ORGANIZATION'S CLIENTS, THE COMMUNITY AND COLLEAGUES. ADHERENCE TO THE PRINCIPLES SET FORTH IN THIS POLICY AND THE RELATED DOCUMENTS REFERENCED HEREIN SHALL ASSIST EACH IN DOING SO. MEMBERS OF THE GOVERNING BODY, EMPLOYEES, AND VOLUNTEERS SHALL AVOID ALL CONFLICTS OF INTEREST AND THE APPEARANCE OF ANY CONFLICT OF INTEREST. A CONFLICT OF INTEREST OCCURS IN ANY SITUATION IN WHICH ONE IS POTENTIALLY NOT ABLE TO REMAIN IMPARTIAL OR MAINTAIN OBJECTIVITY IN CHOOSING BETWEEN THE INTERESTS OF THE ORGANIZATION AND ONE'S PERSONAL INTERESTS OR THE INTERESTS OF THIRD PARTIES. FORM 990, PART VI, SECTION B, LINE 15A THE CEO EVALUATION COMMITTEE OF THE BOARD OF DIRECTORS, WHICH IS COMPRISED OF TWO INDEPENDENT BOARD OFFICERS AND THREE INDEPENDENT BOARD MEMBERS AT LARGE, MEETS ANNUALLY IN JUNE TO REVIEW MR. MILES PERFORMANCE. DURING THE COURSE OF THE MEETING MR. MILES' BASE AND INCENTIVE COMPENSATION AWARDS ARE EVALUATED. A COST OF LIVING ADJUSTMENT MAY BE APPLIED TO THE BASE COMPENSATION. THE INCENTIVE COMPENSATION IS BASED ON THE GOALS THE CEO EVALUATION COMMITTEE HAS SET IN CONJUNCTION WITH THE BOARD OF DIRECTORS. PRIOR TO THE START OF THE NEXT FISCAL YEAR, THE CEO EVALUATION COMMITTEE MEETS WITH MR. MILES TO REVIEW HIS CURRENT YEAR PERFORMANCE AND TO ESTABLISH HIS GOALS AND COMPENSATION FOR THE NEXT FISCAL YEAR. IN ADDITION, AN INDEPENDENT THIRD PARTY CONDUCTED A COMPENSATION STUDY UTILIZING COMPARABLES AND FORMS 990 TO ESTABLISH MR. MILES' SALARY. MR. MILES IN CONJUNCTION WITH THE HUMAN RESOURCE DIRECTOR UTILIZES ANNUAL SALARY SURVEY DATA TO ESTABLISH THE BASE AND INCENTIVE COMPENSATION OF MS. MULVIHILL. MR. MILES REVIEWS BASE AND INCENTIVE COMPENSATION WITH THE CEO EVALUATION COMMITTEE AT THE ANNUAL JUNE MEETING. PRIOR TO THE START OF THE NEXT FISCAL YEAR, MR. MILES MEETS WITH MS. MULVIHILL TO REVIEW HER CURRENT YEAR PERFORMANCE AND TO ESTABLISH HER GOALS AND COMPENSATION FOR THE NEXT FISCAL YEAR. THIS PROCESS ALSO APPLIES TO KEY EMPLOYEES OF THE ORGANIZATION. INDUSTRY SALARY AND SURVEY DATA IS EVALUATED ANNUALLY BY THE VICE PRESIDENT OF HUMAN RESOURCES AND THE CHIEF EXECUTIVE OFFICER TO ESTABLISH AND EVALUATE SALARY LEVELS OF OFFICERS AND KEY EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 THE FORM 1023, APPLICATION FOR RECOGNITION OF EXEMPTION, IRS DETERMINATION LETTER AND FORMS 990 AND 990-T ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. THE CHILDREN'S INSTITUTE PREPARES AN ANNUAL REPORT THAT CONTAINS ITS SUMMARY FINANCIALS FOR PUBLIC DISTRIBUTION. THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION WILL BE PROVIDED UPON REQUEST. THE ORGANIZATION'S GOVERNING DOCUMENTS, INCLUDING THE BYLAWS, ARTICLES OF INCORPORATION AND CONFLICT OF INTEREST POLICIES, ARE NOT PUBLICLY AVAILABLE BUT ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G OTHER: PROGRAM SERVICE EXPENSES 4,289,798. MANAGEMENT AND GENERAL EXPENSES 1,138,560. FUNDRAISING EXPENSES 317,100. TOTAL EXPENSES 5,745,458. FORM 990, PART XI, LINE 9: CHANGES IN UNRECOGNIZED PENSION BENEFIT PLAN COSTS 7,485,094. FORM 990 PART XII, FINANCIAL STATEMENTS AND REPORTING: THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED BY AN INDEPENDENT ACCOUNTING FIRM. IN ADDITION, THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND ITS SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.