2015-10-07T09:25:05-05:00 2014-12-31 560747981 DIXON HUGHES GOODMAN LLP 111 ROCKVILLE PIKE 6TH FLOOR ROCKVILLE MD 20850 990 2014-01-01 521346603 THE HSC FOUNDATION HSCF 2024541220 2013 H STREET NW NO 300 WASHINGTON DC 20006 RAY VICKS SR VP FINANCE 2024541220 2015-09-25 1 AARON COHEN P01782580 2404033700 2015-09-25 2014 2016-03-07 17:11:31Z THOMAS CHAPMAN 2013 H STREET NW STE 300 WASHINGTON DC 20006 17453910 0 X WWW.HSCFOUNDATION.ORG X 1984 DC TO FACILITATE ACCESS TO HEALTH CARE SERVICES FOR INDIVIDUALS WITH SPECIAL NEEDS AND THEIR FAMILIES THROUGH SUPPORT OF HSC PEDIATRIC CTR, HSCSN & HSC HOME CARE WHILE CONDUCTING PROJECTS WITH GOVT & OTHER ORGS 15 14 232 0 68432 9727 58027 98393 6940277 8910217 7008283 8433164 46619 -41452 14053206 17400322 947272 719605 0 0 7341049 9269656 0 0 0 3528084 3756475 11816405 13745736 2236801 3654586 184599954 155830237 63123577 45963935 121476377 109866302 X TO FACILITATE ACCESS TO HEALTH CARE SERVICES FOR INDIVIDUALS WITH SPECIAL NEEDS AND THEIR FAMILIES THROUGH SUPPORT OF HSC PEDIATRIC CTR, HSCSN & HSC HOME CARE WHILE CONDUCTING PROJECTS WITH THE GOVERNMENT AND OTHER NON-PROFIT ORGANIZATIONS. 0 0 1215132 701555 THE HSC FOUNDATION PARTICIPATED, FUNDED, OR LED ACTIVITIES RELATED TO COALITION BUILDING AND COMMUNITY HEALTH IMPROVEMENT ACTIVITIES. EXAMPLES OF THOSE ACTIVITIES INCLUDED:- GREW THE NATIONAL YOUTH TRANSITIONS COLLABORATIVE TO 47 LOCAL, REGIONAL AND NATIONAL ORGANIZATIONS- PROVIDED MORE THAN 10 SPONSORSHIPS FOR DISABILITY EVENTS- EXECUTED A MEMORANDUM OF UNDERSTANDING WITH THE U.S. DEPARTMENT OF EDUCATION'S OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES TO SUPPORT COLLABORATIVE PROGRAMMING AND INFORMATION SHARING- RELEASED A PROFILE OF AMERICAN VOTERS WITH DISABILITIES AS THE FIRST PRODUCT OF THE YOUTH TRANSITIONS COLLABORATIVE; RECEIVED NATIONAL MEDIA COVERAGE- SUCCESSFULLY RE-LAUNCHED THE NATIONAL VETERANS CENTER WITH A NEW PARTNER, STUDENT VETERANS OF AMERICA- LAUNCHED NATIONAL YOUTH TRANSITIONS COLLABORATIVE'S E-ENVIRONMENT THAT INCLUDES AN ACCESSIBLE WEB SITE, ONLINE SPACE RESERVATION SYSTEM AND SOCIAL MEDIA PLATFORMS- PARTNERED WITH MITSUBISHI ELECTRIC AMERICA FOUNDATION TO CREATE THE NATIONAL YOUTH TRANSITIONS CONFERENCE SUPPORT FUND FOR THE PURPOSE OF SUPPORTING AND ADDRESSING YOUTH PARTICIPATION IN CONFERENCES, SEMINARS AND MEETINGS - CONVENED A ROUNDTABLE ON THE MENTAL HEALTH AND TRANSITION ISSUES FACED BY STUDENT VETERANS WITH DISABILITIES; PUBLISHED THE FINDINGS AND HOSTED A NATIONAL WEBINAR IN COLLABORATION WITH THE NATIONAL VETERANS CENTER AND GEORGE WASHINGTON UNIVERSITY 4563129 8910217 HSC HOME CARE, LLC, A DISREGARDED ENTITY OF THE ORGANIZATION, OFFERS SKILLED NURSING SERVICES, HOME HEALTH AIDE AND PERSONAL CARE AID SERVICES, RESPITE CARE, REHABILITATIVE THERAPIES, LICENSED CLINICAL SOCIAL WORKERS, WELL MOM AND BABY VISITS, INTERMITTENT INTRAVENOUS SERVICES, CLIENT FAMILY, CAREGIVER, AND PATIENT EDUCATION. DURING 2014 HSC HOME CARE PROVIDED HOME VISITS TO PRIMARILY MEDICAID PEDIATRIC PATIENTS IN THE DC METROPOLITAN AREA. THERE WERE 19,930 SKILLED NURSING VISITS AND 12,204 HOME HEALTH AIDE VISITS. HSC HOME CARE ALSO HAD 359 OT, PT, SPEECH THERAPY AND SOCIAL WORK VISITS. 18050 18050 PROVIDED GRANT SUPPORT FOR SIX SEPARATE THERAPEUTIC RECREATION PROGRAMS OFFERED BY HSCSN. THESE PROGRAMS PROVIDE CHILDREN/YOUTH WITH DISABILITIES AN OPPORTUNITY TO LEARN AND PARTICIPATE IN GROUP SPORTS AND THERAPEUTIC RECREATION ACTIVITIES. 5796311 1 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 1 0 0 1 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 29 0 1 232 1 1 1 0 0 0 0 1 1 0 0 0 0 X 15 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 DC X RAY VICKS 2028324400 2013 H STREET NW STE 300 WASHINGTON DC 20006 DIANE LEWIS BOARD MEMBER 1.00 X 0 0 0 ELAINE CRIDER BOARD MEMBER 1.00 X 0 0 0 JACK KASTIN VICE CHAIR 1.00 X X 0 0 0 WILLIAM CLYBURN JR SECRETARY 1.00 X 0 0 0 MEGAN MARIOTTI BOARD MEMBER 1.00 X 0 0 0 ROGER MEYER MD BOARD MEMBER 1.00 X 0 0 0 KENNETH SILVERBERG BOARD MEMBER 1.00 X 0 0 0 MICHAEL D WARD BOARD MEMBER 1.00 X 0 0 0 ROBERT KELLER TREASURER 1.00 X 0 0 0 THOMAS CHAPMAN PRESIDENT AND CEO 32.00 8.00 X X 679462 0 148559 MARIA IVONNE RIVERA BOARD MEMBER 1.00 X 0 0 0 LAUREN HALEY BOARD MEMBER 1.00 X 0 0 0 JENNIFER GEETTER BOARD MEMBER 1.00 X 0 0 0 CARLA LONGSHORE BOARD MEMBER 1.00 X 0 0 0 CURTIS RIDDLE CHAIR 1.00 X X 0 0 0 BRUCE GOLDMAN COO - HSCPC 3.00 37.00 X 257393 0 15796 NANCY SOUTHERS VP FINANCE 31.00 9.00 X 303385 0 41176 JESSIE MACKINNON CHIEF OPERATING OFFICER, HSCF 34.00 6.00 X 245492 0 40060 DANNY BELLAMY COO - HSCSN 4.00 36.00 X 252868 0 37891 JOHN MATHEWSON EXECUTIVE VP 21.00 19.00 X 320250 0 43559 GENE GREER CIO 8.00 32.00 X 241009 0 24673 LYNNE HOSTETTER VP HUMAN RESOURCES 27.00 13.00 X 174730 0 34082 PATRICIA AUSTIN VICE PRESIDENT 40.00 X 176997 0 16588 DAVID PATE AVP FINANCE 21.00 19.00 X 164224 0 16164 SON MCBRIDGE DIRECTOR 40.00 X 120940 0 12547 WANDA BURNS CLINICAL DIRECTOR 40.00 X 112179 0 13962 3048929 0 445057 13 0 1 0 0 29718 68675 98393 PATIENT SERVICE REVENUE 8910217 8910217 8910217 1170876 68432 1102444 7262288 0 7262288 7262288 7262288 6532 29718 53588 -47056 -47056 OTHER REVENUE 3433 3433 MED TRANSCRIPTS 2171 2171 5604 17400322 8915821 68432 8317676 X 719605 719605 2474589 1635228 839361 4614780 3049483 1565297 386651 386651 1242193 44953 1197240 551443 551443 2308428 94741 2213687 14904 1350 13554 73163 7063 66100 611042 611042 62908 14004 48904 70128 53455 16673 167 167 54716 54716 43945 43945 TELEPHONE 149045 82688 66357 TEMP LABOR 91876 47760 44116 DONATION 55067 31700 23367 OTHER 45022 45022 176064 14281 161783 13745736 5796311 7949425 0 2671082 2126536 27369436 7980568 1448392 1500903 24216 93296 781354 631213 154683 150141 62260906 24871155 46511520 87219984 43732322 31522592 427397 365062 184599954 155830237 2169753 1799127 60953824 44164808 63123577 45963935 X 121323426 109716776 152951 149526 121476377 109866302 184599954 155830237 X 3654586 -3015256 -12249405 X 0 1 X 1 0 X X 2 HEALTH SERVICES FOR CHILDREN WITH SPECIAL NEEDS INC 521862406 HOSPITAL 1 18050 0 HOSPITAL FOR SICK CHILDREN 530204670 HOSPITAL 1 2950 0 2 21000 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 PART IV, SECTION A, LINE 6 AS REPORTED IN SCHEDULE I, THE FOUNDATION PROVIDES A NUMBER OF GRANTS TO UNRELATED SECTION 501(C)(3) ORGANIZATIONS TO FURTHER SUPPORT THE FOUNDATION'S TAX-EXEMPT PURPOSE OF SUPPORTING INDIVIDUALS WITH SPECIAL HEALTH NEEDS AND THEIR FAMILIES. THE GRANTS WERE RELATED TO COALITION BUILDING AND COMMUNITY HEALTH IMPROVEMENT ACTIVITIES, INCLUDING PROVIDING SPONSORSHIPS FOR MORE THAN 10 DISABILITY EVENTS. PART IV, SECTION D, LINE 3 THE HSC FOUNDATION IS THE PARENT ENTITY OF ITS TWO SUPPORTED ORGANIZATIONS: THE HSC PEDIATRIC CENTER AND HEALTH SERVICES FOR CHILDREN WITH SPECIAL NEEDS (HSCSN). A MAJORITY OF THE HSCSN AND THE HSC PEDIATRIC CENTER BOARD MEMBERS ARE ALSO OFFICERS OR DIRECTORS OF THE HSC FOUNDATION. IN ADDITION, A MAJORITY OF THE HSCSN AND THE HSC PEDIATRIC CENTER OFFICERS ARE ALSO OFFICERS OR KEY EMPLOYEES OF THE HSC FOUNDATION. AS A RESULT, THE HSC PEDIATRIC CENTER AND HSCSN HAVE A SIGNIFICANT VOICE IN THE FOUNDATION'S INVESTMENT POLICIES AND IN DIRECTING THE USE OF THE ORGANIZATION'S INCOME OR ASSETS. IN PARTICULAR, THE OFFICERS AND DIRECTORS OF THE HSC PEDIATRIC CENTER AND HSCSN THAT ALSO SIT ON THE BOARD OF THE HSC FOUNDATION ENSURE THAT THE HSC FOUNDATION DIRECTS ITS RESOURCES IN A MANNER THAT DIRECTLY SUPPORTS THE TAX-EXEMPT PURPOSES OF THE HSC PEDIATRIC CENTER AND HSCSN. PART IV, SECTION E, LINE 3A PURSUANT TO THE ORGANIZING DOCUMENTS OF HSCSN AND THE HSC PEDIATRIC CENTER, THE HSC FOUNDATION HAS THE RIGHT TO APPOINT A MAJORITY OF THE BOARD MEMBERS OF HSCSN AND THE HSC PEDIATRIC CENTER. PART IV, SECTION E, LINE 3B THE HSC FOUNDATION IS THE PARENT ENTITY OF ITS TWO SUPPORTED ORGANIZATIONS: THE HSC PEDIATRIC CENTER AND HEALTH SERVICES FOR CHILDREN WITH SPECIAL NEEDS (HSCSN). A MAJORITY OF THE HSCSN AND THE HSC PEDIATRIC CENTER BOARD MEMBERS WERE APPOINTED BY THE HSC FOUNDATION. IN ADDITION, A MAJORITY OF THE HSCSN AND THE HSC PEDIATRIC CENTER OFFICERS ARE ALSO OFFICERS OR KEY EMPLOYEES OF THE HSC FOUNDATION. AS A RESULT, THE HSC FOUNDATION HAS A DIRECT ROLE IN GUIDING THE FINANCIAL, OPERATIONAL, AND STRATEGIC DECISION-MAKING OF HSCSN AND THE HSC PEDIATRIC CENTER. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 753389 615218 138171 27965 15995 11970 150141 MONEY MARKET AND CDS 1525721 F BONDS 16667433 F ALTERNATIVE INVESTMENTS 69026830 F 87219984 INVESTMENTS IN AFFILIATES 31522592 F 31522592 AMOUNT DUE AFFILIATES 44124772 OTHER LIABILITIES 40036 44164808 X PART X, LINE 2: THE SYSTEM WAS RECOGNIZED AS A PUBLIC CHARITY GENERALLY EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE PURSUANT TO A DETERMINATION LETTER ISSUED BY THE INTERNAL REVENUE SERVICE (IRS) IN JULY 1997. THE SYSTEM IS ENTITLED TO RELY ON THIS DETERMINATION AS LONG AS THERE ARE NO SUBSTANTIAL CHANGES IN ITS CHARACTER, PURPOSES, OR METHODS OF OPERATION. MANAGEMENT HAS CONCLUDED THAT THERE HAVE BEEN NO SUCH CHANGES AND THEREFORE THE SYSTEM'S STATUS AS A PUBLIC CHARITY EXEMPT FROM FEDERAL INCOME TAXATION REMAINS IN EFFECT. THE STATES IN WHICH THE SYSTEM OPERATES ALSO PROVIDE GENERAL EXEMPTION FROM STATE INCOME TAXATION FOR ORGANIZATIONS THAT ARE EXEMPT FROM FEDERAL INCOME TAXATION. HOWEVER, THE SYSTEM IS SUBJECT TO BOTH FEDERAL AND STATE INCOME TAXATION AT CORPORATE TAX RATES ON ITS UNRELATED BUSINESS INCOME. EXEMPTION FROM OTHER STATE TAXES, SUCH AS REAL AND PERSONAL PROPERTY TAXES, IS SEPARATELY DETERMINED. THE SYSTEM HAD NO UNRECOGNIZED TAX BENEFITS OR SUCH AMOUNTS WERE IMMATERIAL DURING THE PERIODS PRESENTED. FOR TAX PERIODS WITH RESPECT TO WHICH NO UNRELATED BUSINESS INCOME WAS RECOGNIZED, NO TAX RETURN WAS REQUIRED. TAX PERIODS FOR WHICH NO RETURN IS FILED REMAIN OPEN FOR EXAMINATION INDEFINITELY. INFORMATION RETURNS (FORM 990) AND TAX RETURNS (FORM 990-T) FOR THE YEAR ENDED DECEMBER 31, 2014 ARE DUE ON MAY 15, 2015 AND HAVE BEEN EXTENDED TO AUGUST 15, 2015. THE SYSTEM HAS FILED INFORMATION RETURNS AND TAX RETURNS FOR TAX YEAR 2013. CURRENT ACCOUNTING STANDARDS ADDRESS UNCERTAIN INCOME TAX POSITIONS IN FINANCIAL STATEMENTS BY PRESCRIBING THE MINIMUM RECOGNITION THRESHOLD A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. MANAGEMENT BELIEVES THERE IS NO IMPACT ON THE SYSTEM'S CONSOLIDATED FINANCIAL STATEMENTS RELATED TO UNCERTAIN INCOME TAX POSITIONS. CENTRAL AMERICA AND THE CARIBBEAN 14636902 NORTH AMERICA 5797774 0 0 0 0 0 0 20434676 0 20434676 0 0 1 1 0 0 LEAP EVENT 36250 29718 6532 53588 36250 29718 6532 53588 53588 -47056 1 STUDENT VETERANS OF AMERICA 1625 K ST NW SUITE 320 WASHINGTON DC 20037 261971279 501(C)(3) 158817 FUNDING FOR THE NATIONAL VETERANS CENTER NATIONAL HEALTH FOUNDATION 515 S FIGUEROA STREET SUITE 1300 LOS ANGELES CA 90071 237314808 501(C)(3) 30000 SUPPORT FOR JOINT FUND DEVELOPMENT FOR THE YOUTH TRANSITIONS COLLABORATIVE GEORGE WASHINGTON UNIVERSITY 2134 G STREET NW WASHINGTON DC 20052 530196584 501(C)(3) 60000 SUPPORT FOR GRADUATE RESEARCH ASSISTAN, 2015 HEATH RESOURCE SITE POLICYWORKS INC 4220 NATURAL BRIDGE RD TALLAHASSEE FL 32305 800637699 501(C)(3) 35875 GRANT SUPPORT FOR AN ELECTRONIC TOOLKIT THE WASHINGTON CENTER FOR INTERNSHIPS & ACADEMIC 1333 16TH STREET NW WASHINGTON DC 20036 520109820 501(C)(3) 15000 SUPPORT OF THE DISABILITY CURRICULUM, AND CIVIC ENGAGEMENT PROGRAM AUTISTIC SELF ADVOCACY NETWORK 1660 L STREET NW 301 WASHINGTON DC 20036 261278198 501(C)(3) 64500 ACI LEADERSHIP ACADEMY, ASAN 2014 GALA, GRANT SUPPORT FOR "REAL TALK" TASH 1001 CONNECTICUT AVE NW 235 WASHINGTON DC 20036 510160220 501(C)(3) 5000 SPONSORSHIP OF 2014 CONFERENCE SCHOOLTALK INC 1111 14TH ST NW SUITE 510 WASHINGTON DC 20005 753193473 501(C)(3) 27920 SUPPORT FOR YOUTH TRANSITIONS FAIRS IN 2015, AND OTHER FAIRS SMITHSONIAN INSTITUTION PO BOX 37012 WASHINGTON DC 20013 530206027 501(C)(3) 43830 SUPPORT FOR ACCESS TO OPPORTUNITIES INTERNSHIP PROGRAM,AND DISABILITY COMMUNITY/CULTURAL FESTIVAL SUNFLOWER BAKERY 8507 ZIGGY LN GAITHERSBURG MD 20877 262797556 501(C)(3) 18000 GRANT SUPPORT FOR INTERNSHIP STIPENDS THURGOOD MARSHALL COLLEGE FUND INC 901 F STREET NW SUITE 300 WASHINGTON DC 20004 411750692 501(C)(3) 10000 GRANT SUPPORT FOR THE INCLUSION SCHOLARS PROGRAM HEALTH SERVICES FOR CHILDREN WITH SPECIAL NEEDS 1101 VERMONT AVENUE NE WASHINGTON DC 20005 521862406 501(C)(3) 18050 THERAPEUTIC RECREATION GRANT FOR T-BALL PROGRAM, KIDS SOCCER PROJECT, AND ADAPTIVE FLAG FOOTBALL CLINIC AMERICAN ASSOCIATION OF PEOPLE WITH DISABILITIES 2013 H STREET NW WASHINGTON DC 20006 521930174 501(C)(3) 25880 SPONSORSHIP OF 2014 AAPD GALA, YTCEL PROGRAM, 2015 LEADERSHIP AWARDS GALA NATIONAL COUNCIL ON INDEPENDENT LIVING 1710 RHODE ISLAND AVENUE NW 5TH FLOOR WASHINGTON DC 20036 742291620 501(C)(3) 58250 YOUTH TRANSITIONS FELLOWSHIP, SPONSORSHIP OF 2014 NATIONAL CONFERENCE,WORKSHOP, AND SCHOLARSHIPS UNITED CEREBRAL PALSY 1825 K ST NW STE 600 WASHINGTON DC 20006 203568840 501(C)(3) 50000 SUPPORT FOR RENEWAL OF "ENGAGE SERIES" FOR 2015, AND SERIES OF EVENTS GEORGE MASON UNIVERSITY 4400 UNIVERSITY DRIVE MSIF 2 FAIRFAX VA 22030 540836354 501(C)(3) 6794 GRANT FOR CONGRESSIONAL INTERNSHIP PROGRAM, SPONSORSHIP OF STATE OF THE ART CONFERENCE GOODWILL OF GREATER WASHINGTON 2200 SOUTH DAKOTA AVENUE NE WASHINGTON DC 20018 530196588 501(C)(3) 14620 GRANT SUPPORT FOR CAREER NAVIGATION TRAINING PROGRAM PART I, LINE 2: THE HSC FOUNDATION IS A MEMBER OF THE WASHINGTON REGIONAL ASSOCIATION OF GRANTMAKERS AND UTILIZES THEIR COMMON GRANT APPLICATION AND REPORTING FORMAT; WHEN CONSIDERING A PROGRAM OR INITIATIVE FOR FUNDING SUPPORT, THE FOUNDATION EMPLOYS A GRANT REVIEW QUESTIONNAIRE TO MAKE AN INITIAL ASSESSMENT AND DETERMINE WHETHER A FULL PROPOSAL WILL BE REQUESTED. IF A FULL PROPOSAL IS REQUESTED IT WILL BE REVIEWED BY THE PROGRAM OFFICER AND ONE OTHER SYSTEM STAFF MEMBER UTILIZING A PROPOSAL REVIEW SHEET. AT THE DISCRETION OF THE PROGRAM OFFICER, A SITE VISIT MAY BE CONDUCTED BEFORE A RECOMMENDATION IS SUBMITED TO THE FOUNDATION'S CEO FOR APPROVAL. ALL GRANT AWARDS REQUIRE THE APPROVAL OF THE FOUNDATION'S CEO. X X X X X 0 1 0 0 0 0 0 0 0 THOMAS CHAPMAN PRESIDENT AND CEO 658444 0 6750 0 14268 0 133369 0 15190 0 828021 0 0 0 BRUCE GOLDMAN COO - HSCPC 253393 0 4000 0 0 0 4211 0 11585 0 273189 0 0 0 NANCY SOUTHERS VP FINANCE 296635 0 6750 0 0 0 29335 0 11841 0 344561 0 0 0 JESSIE MACKINNON CHIEF OPERATING OFFICER, HSCF 238742 0 6750 0 0 0 28729 0 11331 0 285552 0 0 0 DANNY BELLAMY COO - HSCSN 246118 0 6750 0 0 0 23850 0 14041 0 290759 0 0 0 JOHN MATHEWSON EXECUTIVE VP 307000 0 13250 0 0 0 30228 0 13331 0 363809 0 0 0 GENE GREER CIO 234259 0 6750 0 0 0 15615 0 9058 0 265682 0 0 0 LYNNE HOSTETTER VP HUMAN RESOURCES 167980 0 6750 0 0 0 27369 0 6713 0 208812 0 0 0 PATRICIA AUSTIN VICE PRESIDENT 176747 0 250 0 0 0 8556 0 8032 0 193585 0 0 0 DAVID PATE AVP FINANCE 161474 0 2750 0 0 0 8024 0 8140 0 180388 0 0 0 PART I, LINE 4B THE ORGANIZATION MAINTAINS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) AS PART OF THE TOTAL COMPENSATION ARRANGEMENT FOR THE ORGANIZATION'S CEO, THOMAS CHAPMAN. THE SERP PLAN IS MEANT TO PROVIDE THOMAS CHAPMAN WITH A RETIREMENT BENEFIT FOR OVER 15 YEARS OF SERVICE PROVIDED TO THE ORGANIZATION. THE ORGANIZATION'S COMPENSATION COMMITTEE HAS CAREFULLY REVIEWED AND APPROVED THE SERP PLAN FOR THOMAS CHAPMAN AND CONCLUDED THAT THOMAS CHAPMAN'S ENTIRE COMPENSATION PACKAGE, INCLUDING THE BENEFITS PROVIDED BY THE SERP PLAN, IS REASONABLE WHEN COMPARED TO MARKET DATA. THE AMOUNT OF THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN BENEFIT DURING THE 2014 TAX YEAR WAS $103,700. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN ACCOUNTING FIRM AND THEN REVIEWED BY THE VP FINANCE AND SENIOR VP FINANCE. ONCE COMMENTS FROM THE ASSISTANT VP FINANCE AND VP FINANCE HAVE BEEN INCORPORATED INTO THE FORM 990, THE FORM 990 IS MADE AVAILABLE TO THE FINANCE COMMITTEE FOR THEIR REVIEW, FOLLOWED BY A MEETING OF THE FINANCE COMMITTEE IN WHICH THE FORM 990 IS PRESENTED AND ANY QUESTIONS ARE ANSWERED. AFTER THE FINANCE COMMITTEE MEETING, THE FORM 990 IS MADE AVAILABLE TO ALL MEMBERS OF THE BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENTS. ANY COMMENTS OR QUESTIONS FROM BOARD MEMBERS ARE INCORPORATED INTO THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE HSC FOUNDATION HAS A WRITTEN CONFLICT OF INTEREST POLICY THAT COVERS ITSELF AND ALL OF ITS DIRECT AND INDIRECT SUBSIDIARIES. UNDER THAT POLICY, WHENEVER A POTENTIAL CONFLICT ARISES FOR THE HSC OUNDATION BOARD OF DIRECTORS AND OFFICERS, IT IS BROUGHT TO THE ATTENTION OF THE PRESIDENT AND EXECUTIVE COMMITTEE OF THE HSC FOUNDATION BOARD, WHICH ANALYZES THE SITUATION AND MAKES A DETERMINATION OF WHETHER OR NOT AN ACTUAL CONFLICT EXISTS. IF IT IS DETERMINED THAT AN ACTUAL CONFLICT EXISTS, THE PRESIDENT AND EXECUTIVE COMMITTEE REPORTS TO THE HSC FOUNDATION BOARD OF DIRECTORS REGARDING THE NATURE OF THE CONFLICT AND THAT PERSON IS THEREAFTER RECUSED FROM ANY DISCUSSION AND VOTE REGARDING THE MATTER. WHENEVER A POTENTIAL CONFLICT ARISES FOR EMPLOYEES OF THE HSC FOUNDATION MANAGEMENT TEAM, IT WILL BE BROUGHT TO THE BOARD CHAIR BY THE PRESIDENT WHICH ANALYZES THE SITUATION AND MAKES A DETERMINATION OF WHETHER OR NOT AN ACTUAL CONFLICT EXISTS. IF IT IS DETERMINED THAT AN ACTUAL CONFLICT EXISTS, STEPS WILL BE TAKEN TO ELIMINATE THE CONFLICT AND COMMUNICATED TO THE EMPLOYEE INVOLVED. THE BOARD CHAIR AND PRESIDENT WILL REPORT ALL COI TO THE EXECUTIVE COMMITTEE FOUNDATION. FORM 990, PART VI, SECTION B, LINE 15 THE HSC FOUNDATION USES A FOUR STEP APPROACH TO EXECUTIVE COMPENSATION: 1. THE EXECUTIVE COMMITTEE IS MADE UP OF INDEPENDENT BOARD MEMBERS WITHOUT A CONFLICT OF INTEREST, TO ESTABLISH AND DETERMINE THE REASONABLENESS OF TOTAL COMPENSATION FOR THE SYSTEM'S DISQUALIFIED EXECUTIVES AND FORWARDS TO THE FULL BOARD FOR APPROVAL. 2. PERIODICALLY, THE EXECUTIVE COMMITTEE WILL ENGAGE AN INDEPENDENT CONSULTANT TO PREPARE A DETAILED WRITTEN REPORT ON APPROPRIATE COMPARABILITY DATA FOR COMPARABLE POSITIONS. 3. THE EXECUTIVE COMMITTEE REVIEWS AND RELIES UPON THE REPORT OF THE INDEPENDENT CONSULTANT, ALONG WITH OTHER INDIVIDUAL AND MARKET DATA, THEN DEBATES AND FULLY DOCUMENTS ITS DECISION ABOUT WHAT IS REASONABLE COMPENSATION FOR DISQUALIFIED EXECUTIVES. 4. ONCE THE EXECUTIVE COMMITTEE DEVELOPS EXECUTIVE COMPENSATION RECOMMENDATIONS, THEY ARE PRESENTED TO THE SYSTEM'S FULL BOARD FOR RATIFICATION. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATMENTS ARE ALL AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 51,688. MANAGEMENT AND GENERAL EXPENSES 1,151,972. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,203,660. CONSULTANTS: PROGRAM SERVICE EXPENSES 43,053. MANAGEMENT AND GENERAL EXPENSES 941,432. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 984,485. AUDIT: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 87,278. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 87,278. LEGAL: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 33,005. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 33,005. FORM 990, PART XI, LINE 9: REDUCTION IN EQUITY VALUE OF SUBSIDIARIES -12,209,730. NET ASSETS RELEASED FROM RESTRICTION -39,675. HSC SERVICES LLC 1731 BUNKER HILL RD NE WASHINGTON DC 20017 263268864 HEALTHCARE DC HSC FOUNDATN HSC HOME CARE LLC 1731 BUNKER HILL RD NE WASHINGTON DC 20017 263268942 HEALTHCARE DC 8915348 3432761 HSC FOUNDATN HOSPITAL FOR SICK CHILDREN 1731 BUNKER HILL RD NE WASHINGTON DC 20017 530204670 HOSPITAL DC 501(C)(3) 170B1(A)III HSC FOUNDATN 1 HEALTH SERVICES FOR CHILDREN SPEC NEEDS 1101 VERMONT AVENUE NW STE 1200 WASHINGTON DC 20005 521862406 HEALTHCARE DC 501(C)(3) 509(A)(2) HSC FOUNDATN 1 2013 HOLDINGS INC 2013 H STREET NW WASHINGTON DC 20006 272882469 HOLDING DC 501(C)(2) HSC FOUNDATI 1 SPECIAL NEEDS CONSULTING SERVICES INC 1150 18TH STREET NW STE 775 WASHINGTON DC 20036 451143185 CONSULTING DC HSC FOUNDATION C 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0