2015-10-28T09:19:38-05:00 2014-12-31 271728945 O'CONNOR DAVIES LLP 665 FIFTH AVENUE NEW YORK NY 10022 990 2014-01-01 132905215 COUNCIL ON ACCREDITATION FOR CHILDREN AND FAMILY SERVICES INC COUN 2127973000 45 BROADWAY 29TH FLOOR NEW YORK NY 10006 RICHARD KLARBERG PRESIDENT & CEO 2127973000 2015-10-27 1 GARRETT M HIGGINS P00543209 2122862600 2014 2016-04-25 22:37:26Z RICHARD KLARBERG 45 BROADWAY 29TH FLOOR NEW YORK NY 10006 13123102 0 X WWW.COANET.ORG X 1977 NY SEE SCHEDULE O 19 19 66 385 0 0 1400 3450 9619641 9849248 206327 319800 0 10273 9827368 10182771 28650 6525 0 0 5031622 5392379 0 0 0 4126588 4415696 9186860 9814600 640508 368171 14633795 14539065 6700501 6311481 7933294 8227584 X COA'S MISSION AS DEVELOPED AND APPROVED BY ITS BOARD OF TRUSTEES IS TO PARTNER WITH HUMAN SERVICE ORGANIZATIONS WORLDWIDE TO IMPROVE SERVICE DELIVERY OUTCOMES BY DEVELOPING, APPLYING AND PROMOTING ACCREDITATION STANDARDS. 0 0 6158554 6525 8396937 COA'S MAIN PROGRAM IS THE ACCREDITATION OF HUMAN SERVICES AGENCIES. ALTHOUGH THE NATURE OF THE SERVICES PROVIDED BY THESE AGENCIES MAY VARY, EACH IS REQUIRED TO DEMONSTRATE IMPLEMENTATION OF A SERIES OF ADMINISTRATION AND MANAGEMENT STANDARDS. COA ACCREDITS SOME 1800 PUBLIC AND PRIVATE AGENCIES AND ESTIMATES THAT THESE AGENCIES IN TURN SERVE SOME 7 MILLION INDIVIDUALS AND FAMILIES EACH YEAR. THE IMPACT OF THE ACCREDITATION PROCESS CAN BE DEMONSTRATED IN THE HEIGHTENED QUALITY OF THE SERVICES THESE AGENCIES PROVIDE AS WELL AS IN THEIR ABILITY TO IMPLEMENT AND CONSISTENTLY ADHERE TO SOUND GOVERNANCE, FINANCIAL MANAGEMENT, RISK PREVENTION MANAGEMENT, PERFORMANCE QUALITY IMPROVEMENT AND HUMAN RESOURCE PROCESSES.COA ACCREDITED 301 ORGANIZATIONS UNDER ITS 8TH EDITION STANDARDS, 157 ORGANIZATIONS UNDER CHILD AND YOUTH DEVELOPMENT PROGRAMS AND 24 ADOPTION SERVICE PROVIDERS UNDER THE HAGUE STANDARDS. COA CONDUCTED 498 SITE VISITS INCLUDING 340 8TH EDITION REVIEWS, 128 CHILD AND YOUTH DEVELOPMENT REVIEWS, 20 HAGUE REVIEWS AND 10 MILITARY INSTALLATION REVIEWS UNDER DOD CONTRACT. IN 2014 COA MADE 360 UPDATES TO EXISTING STANDARD SECTIONS. 901883 STANDARD DEVELOPMENT & RESEARCH - COA MAKES AVAILABLE AT NO COST TO ANY ORGANIZATION ITS STANDARDS OF BEST PRACTICE. THESE STANDARDS REFLECT EVOLVING PRACTICES AND TRENDS AND SERVE AS A ROADMAP FOR ORGANIZATIONS TO USE TO BUILD CAPACITY. IN 2014 WE ISSUED 360 STANDARDS UPDATES. SUBSTANTIAL UPDATES WERE MADE TO STANDARDS FOR FINANCIAL MANAGEMENT (FIN), PERFORMANCE AND QUALITY IMPROVEMENT (PQI), GROUP LIVING SERVICES (GLS), RESIDENTIAL TREATMENT (RTX), AND SUPPORTED COMMUNITY LIVING (SCL). IN ADDITION, NEW STANDARDS WERE CREATED FOR INTEGRATED CARE; HEALTH HOMES (ICHH) AND SUPERVISED VISITATION AND EXCHANGE (SVE) SERVICES. THESE UPDATES WERE MADE TO ENABLE COA TO REVIEW, ANALYZE, AND IMPROVE ACCREDITATION REQUIREMENTS. DEVELOP NEW AREAS FOR ACCREDITATION AND ANALYZE AND EVALUATE PERFORMANCE. 681861 163525 TRAINING - COA'S TRAINING DEPARTMENT PROVIDES AN ARRAY OF TRAINING COURSES ACCESSIBLE THROUGH A VARIETY OF FORMATS SUCH AS FACE-TO-FACE, WEBINAR AND SELF-PACED TO STAFF FROM ORGANIZATIONS SEEKING ACCREDITATION AND HUMAN SERVICE PROFESSIONALS WHO SERVE AS COA SITE REVIEWERS. THE MAJORITY OF THESE TRAININGS ARE FREE. ORGANIZATIONS RECEIVE TRAINING FOCUSED ON PROCESS-RELATED TOPICS TO ASSIST THEM WITH GAINING CORE COMPETENCIES, SKILLS, AND KNOWLEDGE ASSOCIATED WITH COA'S ACCREDITATION PROCESS. SITE REVIEWERS RECEIVE TRAINING ON HOW TO REVIEW AND ASSESS AN ORGANIZATION'S DOCUMENTATION AND IMPLEMENTATION OF COA'S STANDARDS. COA TRAINING PROGRAMS SUPPORT AGENCIES SEEKING PRIVATE, PUBLIC, CANADIAN, MILITARY FAMILY READINESS PROGRAM, HAGUE AND CHILD YOUTH AND DEVELOPMENT PROGRAM ACCREDITATION. IN 2014, COA OFFERED OVER 45 FREE SELF-PACED TRAININGS AND APPROXIMATELY 45 WEBINARS TO ORGANIZATIONS WHICH WERE ALL FREE. COA ALSO OFFERED APPROXIMATELY 12 FACE-TO-FACE TRAININGS FOR A FEE IN VARIOUS U.S. LOCATIONS. COA ALSO CONDUCTED 4 TRAININGS UNDER OUR CONTRACT WITH THE STATE OF MISSISSIPPI. ALL TRAINING (3 SELF-PACED TRAININGS AND A 1 DAY FACE-TO-FACE TRAINING) FOR COA SITE REVIEWERS IS FREE. 835578 1288786 IN 2014, COA CONTINUED ITS WORK ON A CONTRACT WITH THE DEPARTMENT OF DEFENSE. THIS CONTRACT ORIGINATED IN 2008 AND WAS ENTERED INTO TO HELP STRENGTHEN THE QUALITY OF SOCIAL SERVICES PROVIDED TO MEN AND WOMEN IN THE MILITARY AND THEIR FAMILIES. IN 2014, 64 MILITARY AND FAMILY READINESS PROGRAMS BECAME ACCREDITED UNDER COA'S STANDARDS. THERE WERE 11 MILITARY AND FAMILY READINESS SITE VISITS CONDUCTED IN 2014. THIS WORK ALSO INCLUDES SUPPORTING FAMILY READINESS PROGRAMS AS THEY GO THROUGH THE ACCREDITATION PROCESS AND MAINTAINING THE EXISTING STANDARDS, GUIDELINES AND PROCEDURES, TRAININGS AND WEBSITE AND WEB PORTAL. 835578 1288786 8577876 1 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 20 0 66 1 0 0 0 0 0 0 0 0 0 0 X 19 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X X JAMES CARR CFO COUNCIL ON ACCREDITATION 2128711795 45 BROADWAY 29TH FLOOR NEW YORK NY 10006 TIMOTHY F NOELKER IMMEDIATE PAST CHAIR 1.00 X X 0 0 0 MARKUS TRICE CHAIR 1.00 X X 0 0 0 JOEL JOHNSON FIRST VICE-CHAIR 1.00 X X 0 0 0 VIVIANE NGWA SECOND VICE-CHAIR 1.00 X X 0 0 0 TURNER SMITH TREASURER 1.00 X X 0 0 0 PHILLIP REDMOND JR SECRETARY 1.00 X X 0 0 0 LESLYE A ARSHT TRUSTEE UNTIL 7/11/14 1.00 X 0 0 0 RALPH BAYARD TRUSTEE 1.00 X 0 0 0 ROBERT SHANKS TRUSTEE 1.00 X 0 0 0 CHUCK JOHNSON TRUSTEE 1.00 X 0 0 0 SUSAN C KEATING TRUSTEE 1.00 X 0 0 0 CHRISTOPHER LEUNG TRUSTEE 1.00 X 0 0 0 STEVEN LEVINE TRUSTEE UNTIL 11/14/14 1.00 X 0 0 0 PATTI J LYONS TRUSTEE 1.00 X 0 0 0 STEPHEN C MACK TRUSTEE 1.00 X 0 0 0 POLINA MAKIEVSKY TRUSTEE 1.00 X 0 0 0 SARA MANZANO-DIAZ TRUSTEE UNTIL 10/1/14 1.00 X 0 0 0 CUDORE SNELL TRUSTEE 1.00 X 0 0 0 JANE STENSON TRUSTEE 1.00 X 0 0 0 SUSAN STEPLETON TRUSTEE 1.00 X 0 0 0 SR LINDA YANKOSKI TRUSTEE 1.00 X 0 0 0 DRUANN WHITAKER TRUSTEE 1.00 X 0 0 0 RICHARD KLARBERG PRESIDENT AND CEO 40.00 X 366616 0 49030 CHRISTINA BYRNE SENIOR DIRECTOR 40.00 X 149823 0 27430 JAMES CARR CHIEF FINANCIAL OFFICER 40.00 X 146611 0 35610 663050 0 112070 3 0 1 0 EXPONENT PARTNERS 720 MARKET STREET STE 600 SAN FRANCISCO CA 94102 TECHNOLOGY CONSULT 219708 1 3450 3450 ACCREDITATION FEES 541900 5289805 5289805 PEER REVIEW SITE VISITS 541900 2309016 2309016 SPECIAL PROJECT GRANTS 541900 1288786 1288786 ANNUAL AGENCY FEES 541900 598377 598377 TRAINING SEMINARS 541900 163524 163524 199740 199740 9849248 253400 253400 3006731 2940331 66400 66400 66400 RECOVERY OF BAD DEBT 541900 10273 10273 10273 10182771 9849248 0 330073 5525 5525 1000 1000 775120 652872 122248 3418487 2891611 526876 241381 198150 43231 628096 515604 112492 329295 270271 59024 25000 16648 8352 20500 13651 6849 33916 18237 15679 520698 453766 66932 103083 99872 3211 348075 295895 52180 46936 40048 6888 566702 482448 84254 239274 220054 19220 339315 288308 51007 35413 31122 4291 PEER REVIEW 1813229 1813229 EQUIPMENT RENTAL/REPAIR 295668 250858 44810 SUBSCRIPTIONS/REFERENCE 23453 18707 4746 FOREIGN CURRENCY LOSS 3876 3876 558 558 9814600 8577876 1236724 0 836142 945138 418508 190016 936933 798217 119584 209258 1495988 653058 899037 842930 10463119 10678615 840582 755001 119890 119890 14633795 14539065 563095 502659 5594361 5173355 543045 635467 6700501 6311481 X 6562334 6866062 405953 396515 965007 965007 7933294 8227584 14633795 14539065 368171 -73881 0 X X 0 1 X 1 0 X 6050 6500 21350 1400 3450 38750 8570730 8363096 9212945 9619641 9849248 45615660 8576780 8369596 9234295 9621041 9852698 45654410 48000 49851 50939 39764 23947 212501 706301 597609 803502 1037437 1430365 4575214 754301 647460 854441 1077201 1454312 4787715 40866695 71917 66789 139479 245388 253400 776973 71917 66789 139479 245388 253400 776973 1324 10273 11597 8648697 8437709 9373774 9866429 10116371 46442980 0.87990 0.89130 0.01670 0.01390 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: FOREIGN EXCHANGE GAINS - 2011 AMOUNT: $ 1,324. RECOVERY OF BAD DEBT - 2014 AMOUNT: $ 10,273. 1592143 72693 67000 6530 1591306 1445690 220199 67658 6088 1592143 1344363 234587 122043 11217 1445690 1521114 -112008 50000 14743 1344363 1408349 126742 13977 1521114 0.15360 0.60640 0.24000 0 0 671436 155069 516367 474678 329598 145080 349874 168391 181483 842930 DEFERRED RENT PAYABLE 435467 CONTINGENT LIABILITY HAGUE 200000 635467 X 12826522 -73881 2738869 2664988 10161534 6530 14707 21237 10182771 12532232 2738869 2738869 9793363 6530 14707 21237 9814600 PART V, LINE 4: COA MAINTAINS DONOR-RESTRICTED AND BOARD-DESIGNATED ENDOWMENT FUNDS WHOSE PURPOSE IS TO SUPPORT CREATIVE, INNOVATIVE AND IMAGINATIVE SPECIAL PROJECTS THAT COULD OTHERWISE NOT BE ACCOMPLISHED. PART X, LINE 2: COA RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY IF THOSE POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. MANAGEMENT HAS DETERMINED THAT COA HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION. COA IS NO LONGER SUBJECT TO AUDITS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO 2011. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF SOFTWARE 558. RECOVERY OF BAD DEBT 10,273. FOREIGN CURRENCY TRANSACTION 3,876. PART XII, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF SOFTWARE 558. RECOVERY OF BAD DEBT 10,273. FOREIGN CURRENCY TRANSACTION 3,876. 1 NORTH AMERICA 0 27 PROGRAM SERVICES CANADIAN SITE VISITS 59358 NORTH AMERICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION 1000 EUROPE 0 6 PROGRAM SERVICES SITE VISITS TO GERMANY, ITALY AND ENGLAND 6033 SOUTH ASIA 0 7 PROGRAM SERVICES SITE VISIT TO JAPAN 19271 0 40 0 0 0 40 85662 0 85662 0 0 0 0 0 0 PART I, LINE 2: THE ORGANIZATION AWARDS STIPENDS TO EXPERIENCED PROFESSIONAL VOLUNTEERS, WHO WILL CONDUCT SITE VISITS AT REMOTE LOCATIONS, OR, DUE TO ACCREDITATION RENEWAL CYCLES, WILL PERFORM ADDITIONAL SITE VISITS BEYOND THE AVERAGE NUMBER EXPECTED IN A GIVEN YEAR. ADDITIONALLY, THE ORGANIZATION AWARDS STIPENDS TO SENIOR FELLOWS WHO ARE SELECTED FROM A POOL OF THE ORGANIZATION'S MOST EXPERIENCED REVIEWERS, COMMISSION MEMBERS, AND PRESENT AND FORMER LEADERS FROM ACCREDITED ORGANIZATIONS. SENIOR FELLOWS ARE EXPECTED TO BE "ON CALL" TO EXECUTE DIVERSE ACCREDITATION-RELATED TASKS, INCLUDING TRAINING, TECHNICAL ASSISTANCE, MENTORING, AND SUPPORTIVE EXPERTISE TO PEER REVIEWERS AND TEAM LEADERS. RESULTS OF THE SELECTION PROCESS ARE DOCUMENTED IN THE BOOKS AND RECORDS OF THE ORGANIZATION, AND ESTABLISHED AS AN OPERATING EXPENSE IN THE CURRENT BUDGET YEAR. ALL DISBURSEMENTS OF STIPENDS ARE RECORDED IN THE FINANCIAL RECORDS OF THE ORGANIZATION IN ACCORDANCE WITH ACCEPTED ACCOUNTING STANDARDS, AND REPORTED AS GRANT EXPENSES WITHIN THE ORGANIZATION'S FINANCIAL REPORTING AND TAX COMPLIANCE DOCUMENTS. PART I, LINE 3: THE ORGANIZATION USED ACCRUAL ACCOUNTING TO ACCOUNT FOR EXPENDITURES IN ACCORDANCE WITH THE ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA ("U.S. GAAP"). 1 STIPENDS FOR ACCREDITATION SERVICES 5 5525 PART I, LINE 2: THE ORGANIZATION AWARDS STIPENDS TO EXPERIENCED PROFESSIONAL VOLUNTEERS, WHO WILL CONDUCT SITE VISITS AT REMOTE LOCATIONS, OR, DUE TO ACCREDITATION RENEWAL CYCLES, WILL PERFORM ADDITIONAL SITE VISITS BEYOND THE AVERAGE NUMBER EXPECTED IN A GIVEN YEAR. ADDITIONALLY, THE ORGANIZATION AWARDS STIPENDS TO SENIOR FELLOWS WHO ARE SELECTED FROM A POOL OF THE ORGANIZATION'S MOST EXPERIENCED REVIEWERS, COMMISSION MEMBERS, AND PRESENT AND FORMER LEADERS FROM ACCREDITED ORGANIZATIONS. SENIOR FELLOWS ARE EXPECTED TO BE "ON CALL" TO EXECUTE DIVERSE ACCREDITATION-RELATED TASKS, INCLUDING TRAINING, TECHNICAL ASSISTANCE, MENTORING, AND SUPPORTIVE EXPERTISE TO PEER REVIEWERS AND TEAM LEADERS. RESULTS OF THE SELECTION PROCESS ARE DOCUMENTED IN THE BOOKS AND RECORDS OF THE ORGANIZATION, AND ESTABLISHED AS AN OPERATING EXPENSE IN THE CURRENT BUDGET YEAR. ALL DISBURSEMENTS OF STIPENDS ARE RECORDED IN THE FINANCIAL RECORDS OF THE ORGANIZATION IN ACCORDANCE WITH ACCEPTED ACCOUNTING STANDARDS, AND REPORTED AS GRANT EXPENSES WITHIN THE ORGANIZATION'S FINANCIAL REPORTING AND TAX COMPLIANCE DOCUMENTS. X X X 0 0 0 0 0 0 0 1 0 RICHARD KLARBERG PRESIDENT AND CEO 358940 0 0 0 7676 0 20400 0 28630 0 415646 0 0 0 CHRISTINA BYRNE SENIOR DIRECTOR 145970 0 3734 0 119 0 12235 0 15195 0 177253 0 0 0 JAMES CARR CHIEF FINANCIAL OFFICER 142400 0 3704 0 507 0 12496 0 23114 0 182221 0 0 0 PART I, LINE 7 THE BONUS PAYMENT FOR THE SENIOR DIRECTOR AND THE CHIEF FINANCIAL OFFICER OF THE ORGANIZATION WERE BASED UPON EMPLOYEE PERFORMANCE AND AWARDED AT THE DISCRETION OF THE CHIEF EXECUTIVE OFFICER. FORM 990, PART I, LINE 1 THE MISSION OF THE COUNCIL ON ACCREDITATION (COA) IS TO PARTNER WITH HUMAN SERVICE ORGANIZATIONS WORLDWIDE TO IMPROVE SERVICE DELIVERY OUTCOMES BY DEVELOPING, APPLYING AND PROMOTING ACCREDITATION STANDARDS. IN FULFILLING THIS MISSION, COA VALIDATES THE QUALITY OF MORE THAN 2000 PUBLIC AND PRIVATE ORGANIZATIONS SERVING MORE THAN 7 MILLION VULNERABLE INDIVIDUALS EACH YEAR. COA REVIEWS AN ENTIRE ORGANIZATION INCLUDING ITS GOVERNANCE, MANAGEMENT AND FINANCIAL CONTROLS. IN 2014, AS PART OF ITS ON-GOING EFFORT TO MAKE THE ACCREDIATION PROCESS MORE ACCESSIBLE TO ORGANIZATIONS OF EVERY SIZE AND CONFIGURATION, IT INVESTED IN THE DEVELOPMENT AND REFINEMENT OF ITS WEB PORTAL. ADDITIONALLY, IT CONTINUED TO MODIFY ITS ACCREDITATION STANDARDS TO REFLECT CHANGES IN THE WAY BEHAVIORAL HEALTH SERVICES ARE PROVIDED AND REIMBURSED. IT BEGAN THE PROCESS OF REVISING ITS PUBLIC AGENCY ACCREDITATION STANDARDS AND PROCESS AS PART OF A PRIORITY GOAL TO IMPACT THESE ENTITIES, THE ORGANIZAITONS WITH WHICH THEY CONTRACT, THEIR STAFF AND MOST IMPORTANTLY THE FAMILIES AND INDIVIDUALS THEY SERVE. ITS WORK WITH THE DEPARTMENT OF STATE UNDER THE INTERCOUNTRY ADOPTION ACT CONTINUED WITH AN INCREASED EMPHASIS OF MONITORING COMPLAINTS FILED IN THE HAGUE COMPLAINT REGISTRY, ESPECIALLY WITH REGARD TO ENSURING THE FINANCIAL STABILITY OF ADOPTION SERVICE PROVIDERS. UNDER A CONTRACT WITH THE DEPARTMENT OF DEFENSE, .IT INSTITUTED A SERIES OF ACCREDITIONS FOR HUMAN SERVICES PROVIDED TO MILITARY PERSONNEL AND THEIR FAMILIES ON INSTALLATIONS. IT ALSO ESTABLISHED A SUPPORTING ORGANIZATION RELATIONSHIP WITH THE SUPERVISED VISITATION NETWORK AND PUBLISHED SUPERVISED VISITATION STANDARDS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS DISTRIBUTED ELECTRONICALLY TO THE FINANCE COMMITTEE FOR REVIEW. THE CFO AND PRESIDENT MEET WITH THE FINANCE COMMITTEE TO PRESENT, REVIEW, AND DISCUSS THE FORM 990. FOLLOWING THE FINANCE COMMITTEE MEETING, A FINAL DRAFT OF THE FORM 990 IS DISTRIBUTED ELECTRONICALLY TO ALL MEMBERS OF THE BOARD. THE BOARD REVIEWS AND DISCUSSES THE FORM 990 AT THE NEXT SCHEDULED BOARD MEETING. FOLLOWING THE DISCUSSION PERIOD, THE FINANCE COMMITTEE RECOMMENDS BOARD APPROVAL OF THE FINAL DRAFT OF THE FORM 990. IT IS THEN FILED WITH THE IRS FOLLOWING BOARD APPROVAL. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART VI, SECTION B, LINE 12C ALL VOLUNTEERS, TRUSTEES AND STAFF MEMBERS ARE REQUIRED TO EXECUTE AN ACKNOWLEDGEMENT ATTESTING THAT THEY HAVE READ, UNDERSTOOD AND AGREE TO COMPLY WITH THE ORGANIZATION'S WRITTEN CONFLICT OF INTEREST POLICY. THE BOARD OF TRUSTEES, AS PART OF ITS OVERSIGHT RESPONSIBILITIES, REQUIRES THE CEO TO AFFIRM THAT THIS PRACTICE IS EMPLOYED. ANYONE BELIEVING THAT A CONFLICT OF INTEREST MAY EXIST MUST DISCLOSE THE POTENTIAL CONFLICT ORALLY OR IN WRITING TO THE BOARD MEMBERS OR BOARD COMMITTEE CONSIDERING A POTENTIAL TRANSACTION TO WHICH THE CONFLICT RELATES. FOLLOWING A PERIOD OF QUESTIONS FROM THE BOARD OR BOARD COMMITTEE, THE INTERESTED PERSON MUST LEAVE THE ROOM AND NOT PARTICIPATE IN DISCUSSIONS OR VOTING RELATED TO THE POTENTIAL CONFLICT. BY MAJORITY VOTE, THE BOARD OR BOARD COMMITTEE WILL DETERMINE IF A CONFLICT EXISTS, AND IF TO ENTER INTO THE PROPOSED TRANSACTION. A DISINTERESTED PERSON OR COMMITTEE MAY BE APPOINTED BY THE BOARD CHAIR TO INVESTIGATE ALTERNATIVES TO A PROPOSED TRANSACTION IF THE BOARD DEEMS THIS NECESSARY. THE MINUTES OF THE BOARD OR BOARD COMMITTEE WILL DOCUMENT THAT THE CONFLICT WAS DISCLOSED, THE VOTING RECORD REGARDING THE CONFLICT, AND THE DECISION MADE REGARDING THE TRANSACTION. IF THE BOARD HAS REASON TO BELIEVE THAT A CONFLICT WAS NOT DISCLOSED, THE INTERESTED PARTY WILL BE GIVEN AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO REPORT A POTENTIAL CONFLICT OF INTEREST. FOLLOWING A FORMAL BOARD HEARING, INVESTIGATION AND VOTE, THE BOARD DETERMINES THAT A FAILURE TO DISCLOSE A CONFLICT OF INTEREST EXISTED, THE BOARD WILL TAKE NECESSARY CORRECTIVE ACTION AGAINST THE INTERESTED PARTY INCLUDING REMOVAL FROM THE COMMITTEE OR FROM THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 COA'S COMPENSATION REVIEW PROCESS FOR THE CEO AND FOR ITS ENTIRE STAFF HAS BEEN CAREFULLY DEVELOPED TO MEET THE FOLLOWING OBJECTIVES: TO ENSURE THAT A PROPER RELATIONSHIP IS MAINTAINED BETWEEN THE SALARY FOR AN INDIVIDUAL JOB AND THE SALARIES OF OTHER POSITIONS. THIS IS ACCOMPLISHED THROUGH JOB DESCRIPTIONS AND COMPARISON OF RELATIVE CRITERIA AGAINST OTHER POSITIONS AT COA. TO ESTABLISH A SALARY FOR EACH JOB THAT COMPARES FAVORABLY WITH THE SALARY FOR SIMILAR JOBS AT SIMILAR ORGANIZATIONS WITHIN COA'S JOB MARKET AND GIVEN GEOGRAPHIC AREA. TO PROVIDE SALARY OPPORTUNITY TIED TO LEVEL OF PERFORMANCE. TO ASSIST THE EMPLOYEE IN ATTAINING HIS/HER BEST PERFORMANCE BY INVOLVING HIM/HER AND THE IMMEDIATE SUPERVISOR IN THE PERFORMANCE APPRAISAL PROCESS. IN FURTHERANCE OF THE ABOVE, THE COMPENSATION OF THE CEO IS DETERMINED BY THE BOARD OF TRUSTEES AS A RESULT OF CONSIDERING THE COMPENSATION PRACTICES OF OTHER NATIONAL ACCREDITING ORGANIZATIONS AND OTHER ORGANIZATIONS IN THE SOCIAL AND BEHAVIORAL HEALTH INDUSTRIES AND THE NOT-FOR-PROFIT COMMUNITY. THE SPECIFIC PROCESS IS AS FOLLOWS: A COMPENSATION COMMITTEE COMPRISED OF MEMBERS OF THE COA BOARD, ALL OF WHOM ARE INDEPENDENT, IS APPOINTED BY THE BOARD CHAIR TO NEGOTIATE A WRITTEN EMPLOYMENT CONTRACT WITH THE CEO. THIS COMMITTEE UNDERTAKES A REVIEW OF THE 990S OF COMPARABLE ORGANIZATIONS REGARDING CEOS WITH COMPARABLE EXPERIENCE, EDUCATION AND GEOGRAPHIC LOCALE. THE CEO COMPLETES A SELF-EVALUATION AND MEMBERS OF THE BOARD ARE ASKED TO COMPLETE A WRITTEN EVALUATION OF THE CEO. BASED ON ALL OF THE FOREGOING, THE COMPENSATION COMMITTEE MAKES A RECOMMENDATION TO THE FULL COA BOARD REGARDING THE COMPENSATION AND CONTINUED EMPLOYMENT OF THE CEO. THIS RECOMMENDATION IS VOTED ON BY THE ENTIRE BOARD OF TRUSTEES AND IS DOCUMENTED IN THE BOARD MINUTES. KEY EMPLOYEE COMPENSATION IS DETERMINED PURSUANT TO THE HR POLICIES GOVERNING ALL STAFF. COA'S SALARIES ARE ESTABLISHED AS A RESULT OF CONSIDERING THE COMPENSATION PRACTICES OF OTHER NATIONAL ACCREDITING ORGANIZATIONS AND OTHER ORGANIZATIONS IN THE SOCIAL AND BEHAVIORAL HEALTH INDUSTRIES AND THE NOT-FOR-PROFIT COMMUNITY. THESE INCLUDE PANO (PERSONNEL ASSOCIATION OF NONPROFIT ORGANIZATIONS) COMPENSATION & BENEFITS SURVEY FROM PRM CONSULTING, INC.; MANAGEMENT COMPENSATION REPORT: NOT-FOR-PROFIT ORGANIZATIONS; BLUEWATER'S NONPROFIT ORGANIZATIONS SALARY AND BENEFITS SURVEY; AND, THE CHILD WELFARE LEAGUE OF AMERICA SALARY STUDY. EVERY COA JOB POSITION HAS A RANGE OF SALARIES THAT AN EMPLOYEE WORKING IN SUCH POSITION MAY EARN. THE SALARY RANGES FOR EACH JOB POSITION ARE MAINTAINED AS PART OF THE JOB DESCRIPTIONS. SALARY RANGES ARE PERIODICALLY REVISED AND UPDATED BY THE COA'S PRESIDENT/CEO. AN EMPLOYEE'S COMPENSATION WILL GENERALLY BE REVIEWED ANNUALLY AT THE END OF THE CALENDAR YEAR IN THE CONTEXT OF THE EMPLOYEE'S PERFORMANCE IN ACHIEVING THE OBJECTIVES OF HIS OR HER POSITION AND IN FURTHERING THE GOALS OF COA, AS APPROPRIATE. COA HAS THE DISCRETION TO AWARD OR NOT TO AWARD AN EMPLOYEE AN INCREASE IN SALARY. COA'S DECISION TO AWARD AN EMPLOYEE AN INCREASE IN SALARY WILL BE BASED ON NUMEROUS FACTORS, INCLUDING BUT NOT LIMITED TO THE RECOMMENDATION OF THE IMMEDIATE SUPERVISOR, THE AVAILABILITY OF FUNDS AS DETERMINED BY COA'S BOARD OF TRUSTEES, THE EMPLOYEE'S PERFORMANCE ON THE JOB, THE EMPLOYEE'S LENGTH OF SERVICE WITH COA, THE CRITICAL NATURE OF THE EMPLOYEE'S FUNCTIONS, THE EMPLOYEE'S EDUCATIONAL AND PROFESSIONAL BACKGROUND, THE SALARY RANGE FOR THE POSITION AND THE COMPENSATION PRACTICES OF OTHER ACCREDITING BODIES, SOCIAL AND BEHAVIORAL HEALTH SERVICES AND THE NOT-FOR-PROFIT SECTOR. THE COMPENSATION POLICY WAS LAST REVIEWED BY HR COMMITTE OF THE BOARD IN OCTOBER 2013 AS PART OF THE CEO'S ANNUAL PERFORMANCE REVIEW. FORM 990, PART VI, SECTION C, LINE 19 COA MAKES ITS FORM 990 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE. THE RETURN IS POSTED ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, FORM 990, FORM 1023, AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST AT 45 BROADWAY, 29TH FLOOR, NEW YORK, NY 10006 OR BY CALLING THE ORGANIZATION DIRECTLY AT 212-797-2000 (X263). FORM 990, PART XII, LINE 2C THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR IS CONDUCTED BY THE AUDIT COMMITTEE AND APPROVED BY THE BOARD OF DIRECTORS. THIS PROCESS HAS NOT CHANGED FROM THE PROCESS FOLLOWED IN THE PRIOR YEAR. FORM 990, PART I, LINE 6 ACCREDITATION STUDIES ARE CONDUCTED BY PEER REVIEWERS WHO ARE SENIOR STAFF MEMBERS OF ACCREDITED AGENCIES. IN 2014 AND 2013, PEER REVIEWERS DONATED 2,747 DAYS AND 2,978 DAYS OF SERVICE TO THE COUNCIL ON ACCREDITATION ("COA"). THE VALUE OF SUCH SERVICES HAS BEEN ESTIMATED BY COA TO BE APPROXIMATELY $1,000 PER DAY FOR A TOTAL OF $2,732,314 AND $2,947,893.