2014-05-12T10:53:42-05:00 2013-06-30 911194016 CLARK NUBER PS 10900 NE 4TH STREET SUITE 1700 BELLEVUE WA 98004 990 2012-07-01 910961784 SEATTLE BIOMEDICAL RESEARCH INSTITUTE SEAT 2062567200 307 WESTLAKE AVENUE NORTH NO 500 SEATTLE WA 981095219 LOUIE COFFMAN 2062567200 2014-05-09 1 JANE M SEARING P00000565 4254544919 2012 2016-02-25 16:41:14Z SEATTLE BIOMED ALAN ADEREM 307 WESTLAKE AVENUE NORTH NO 500 SEATTLE WA 981095219 36672520 0 X WWW.SEATTLEBIOMED.ORG X 1976 WA TO ELIMINATE THE WORLD'S MOST DEVASTATING INFECTIOUS DISEASES. 23 22 360 24 146807 144107 44639249 33773274 448862 388612 133411 202092 2388474 2043605 47609996 36407583 0 0 0 0 22513121 20814023 0 0 675721 27584656 22801068 50097777 43615091 -2487781 -7207508 37339001 26369669 16062883 12236014 21276118 14133655 X SEATTLE BIOMED IS AN INDEPENDENT NON-PROFIT RESEARCH INSTITUTE FOCUSED SOLELY ON THE WORLD'S MOST DEVASTATING INFECTIOUS DISEASES. WE ARE DEDICATED TO REDUCING HUMAN SUFFERING AND SAVING LIVES BY CONVERTING KNOWLEDGE INTO SOLUTIONS. OUR RESEARCH IS THE FOUNDATION FOR NEW VACCINES, DRUGS AND DIAGNOSTICS THAT WILL BENEFIT THOSE WHO NEED IT MOST: THE 14 MILLION WHO WILL OTHERWISE DIE EACH YEAR FROM INFECTIOUS DISEASES. SEATTLE BIOMED IS ONE OF SEVERAL RESEARCH ORGANIZATIONS AROUND THE WORLD THAT ARE PIONEERING THE SYSTEMS BIOLOGY OF INFECTIOUS DISEASE RESEARCH. BECAUSE RESEARCH ON MULTIPLE DISEASES TAKES PLACE ALL UNDER ONE ROOF, SCIENTISTS AT SEATTLE BIOMED HAVE UNIQUE OPPORTUNITIES TO DISCUSS AND COLLABORATE ACROSS RESEARCH AREAS. EVERY DAY, THE SCIENTISTS AT SEATTLE BIOMED STRIVE TO END THE THREAT OF INFECTIOUS DISEASE BY INFLUENCING HOW WE THINK ABOUT THOSE DISEASES, INVENTING NEW SOLUTIONS, AND EDUCATING THE NEXT GENERATION OF SCIENTISTS AND OUR COMMUNITY. 0 0 37441213 286565 AT SEATTLE BIOMED WE SEEK TO CREATE A CLIMATE AND CULTURE THAT ATTRACTS, SUPPORTS AND RETAINS A COMMUNITY OF SCIENTISTS WHO AIM TO INFLUENCE, INVENT AND EDUCATE AT THE HIGHEST LEVEL. SEATTLE BIOMED'S SCIENTISTS SHARE COMMON INTERESTS TO (I) CREATE, USE AND SHARE NEW KNOWLEDGE; (II) APPLY THAT KNOWLEDGE TO DEVELOP NEW TOOLS, MATERIALS AND METHODS USEFUL TO ENABLE AND FACILITATE RESEARCH ON THE CRITICAL PATH, AS WELL AS THE MEANS TO PREVENT, DIAGNOSE AND TREAT DISEASE; AND (III) TRAIN THE NEXT GENERATION OF SCIENTISTS WHO WILL ADD SCIENTIFIC, RESEARCH AND CLINICAL CAPACITY IN THE DEVELOPING WORLD. THE INSTITUTE'S BIOMEDICAL RESEARCH PROGRAM IS FOCUSED ON THE DEVELOPMENT OF VACCINES TO PREVENT, AND DRUGS TO TREAT, VARIOUS INFECTIOUS DISEASES, INCLUDING MALARIA, TUBERCULOSIS, HIV AND OTHER EMERGING NEGLECTED DISEASES SUCH AS AFRICAN SLEEPING SICKNESS. RESEARCH IS FUNDED IN LARGE PART BY VARIOUS INSTITUTES OF THE NATIONAL INSTITUTES OF HEALTH, THE DEPARTMENT OF DEFENSE AND THE BILL AND MELINDA GATES FOUNDATION. MAJOR SCIENTIFIC ADVANCES INCLUDE: THE IDENTIFICATION OF THE INOSITOL PATHWAY AS A DRUG TARGET IN TRYPANOSOMES AND SOLVING THE THREE-DIMENSIONAL STRUCTURES OF OVER 560 PROTEINS FROM MORE THAN 40 BACTERIAL, PROTOZOAN, AND VIRAL STRUCTURES, THEREBY PROVIDING A VALUABLE RESOURCE FOR FUTURE DEVELOPMENT OF DRUGS, VACCINES, AND DIAGNOSTIC TOOLS; IDENTIFYING NEW CANDIDATE MALARIA VACCINES; ELUCIDATING HOW THE MALARIA PARASITE MANIPULATES LIVER CELLS, DISCOVERING HOW PARASITES CAUSE CEREBRAL MALARIA, USING COMPUTATIONAL ANALYSES TO LEARN MORE ABOUT HOW THE IMMUNE SYSTEM RESPONDS TO MALARIA; IDENTIFYING THE ROLE OF SPECIFIC TB PROTEINS IN BACTERIALS PERSISTENCE, DEVELOPING A STREAMLINED APPROACH TO IDENTIFY DRUG TARGETS, ESTABLISHING ASSAYS FOR NEW TB DRUGS, CHARACTERIZING THE HOST RESPONSE TO INFECTION AND VACCINATION, AND DEVELOPING A LOW-COST, POINT-OF-CARE DIAGNOSTIC TEST THAT CAN DETECT ACTIVE TB DISEASE; DISCOVERING WHY PREVIOUSLY TESTED HIV/AIDS VACCINES FAILED TO GENERATE A PROTECTIVE IMMUNE RESPONSE, DESIGNING NEW VACCINE CANDIDATES THAT HAVE BEEN SUCCESSFULLY TESTED IN THE LABORATORY, AND SHEDDING LIGHT ON HOW DIFFERENT VACCINE DESIGNS AFFECT THE CHARACTER OF THE IMMUNE RESPONSE PRODUCED TO A VACCINE. 482068 102047 BIOQUEST: THE PRIMARY GOAL OF SEATTLE BIOMED'S SCIENCE OUTREACH PROGRAM, BIOQUEST, IS TO PROVIDE A CURRICULUM-RELEVANT, CAREER-INSPIRING, TECHNOLOGY-RICH SCIENCE EDUCATION PROGRAM WITHIN THE CONTEXT OF INFECTIOUS DISEASE RESEARCH TO HIGH SCHOOL STUDENTS, TEACHERS, AND THE GENERAL PUBLIC. WE ARE THE ONLY ORGANIZATION IN THE NATION TO OFFER A 32-PERSON TEACHING LAB, WITHIN THE FOOTPRINT OF AN INFECTIOUS DISEASE RESEARCH INSTITUTE. 37923281 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 72 0 1 360 1 1 1 0 0 0 0 1 1 0 0 0 0 X 23 22 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 WA X X LOUIE COFFMAN - SR VP-STRATEGYBUSINESS DEV'T 2062567200 307 WESTLAKE AVE N 500 SEATTLE WA 981095219 KENNETH STUART PHD PRES 40.00 0.00 X 590335 0 31020 TREVOR MOODY 4.00 0.00 X X 0 0 0 TODD PATRICK 4.00 0.00 X X 0 0 0 MARK ASHIDA 2.00 0.00 X X 0 0 0 GREGG BLODGETT 3.00 0.00 X X 0 0 0 DARRYL JOHNSON 3.50 0.00 X X 0 0 0 ALAN LEVY PHD 1.00 0.00 X 0 0 0 ALEXANDRE PORTET 1.00 0.00 X 0 0 0 BRYAN WHITE 1.00 0.00 X 0 0 0 CHRISTOPHER H PORTER PHD 2.00 0.00 X 0 0 0 DAVID R STEWART JD 1.00 0.00 X 0 0 0 DEAN ALLEN 1.00 0.00 X 0 0 0 JANE A BIDDLE PHD 2.00 0.00 X 0 0 0 JANE HEDREEN 3.00 0.00 X 0 0 0 KEVIN KELLY JD 1.00 0.00 X 0 0 0 KRIS RICHEY CURTIS 3.00 0.00 X 0 0 0 MAUD DAUDON 1.00 0.00 X 0 0 0 MELISSA YEAGER 1.00 0.00 X 0 0 0 MIKE STULL 1.00 0.00 X 0 0 0 MOYA VAZQUEZ 4.00 0.00 X 0 0 0 NEIL MCDONNELL PHARMD 0.20 0.00 X 0 0 0 RICHARD BEAR 0.30 0.00 X 0 0 0 ROSEMARY BARKER ARAGON 2.00 0.00 X 0 0 0 STEVEN CLIFFORD 1.00 0.00 X 0 0 0 TERRENCE MEERSMAN 1.00 0.00 X 0 0 0 ALAN ADEREM 40.00 0.00 X 316548 0 37226 RANDALL HASSLER 40.00 0.00 X 208958 0 33667 LOUIS COFFMAN 40.00 0.00 X 149925 0 21862 KAREN BLOCHLINGER 40.00 0.00 X 150162 0 21448 DREW HOUSE 40.00 0.00 X 122746 0 13768 STEFAN KAPPE 40.00 0.00 X 181434 0 22464 LEONIDAS STAMATATOS 40.00 0.00 X 177083 0 25038 PETER MYLER 40.00 0.00 X 158458 0 27879 JOHN AITCHISON 24.00 0.00 X 143192 0 22494 THOMAS BLACKWELL 40.00 0.00 X 141939 0 17457 MALCOLM GARDNER 40.00 0.00 X 141149 0 21099 RUOBING WANG 40.00 0.00 X 139710 0 20835 2621639 0 316257 32 0 1 0 EMERALD BIOSTRUCTURES INC 75 REMITTANCE DRIVE BOX 6529 CHICAGO IL 60675 RESEARCH 1579017 UNIVERSITY OF WASHINGTON GRANTS & CONTRA 12455 COLLECTIONS DRIVE CHICAGO IL 60693 RESEARCH 1019956 SAGE BIONETWORKS 1100 FAIRVIEW AVE N M1-C108 SEATTLE WA 98109 RESEARCH 865606 FRED HUTCHINSON CANCER RESEARCH CENTER 1100 FAIRVIEW AVE N SEATTLE WA 98109 RESEARCH/STATISTICAL SERVICES 696710 THE SCRIPPS RESEARCH INSTITUTE 10550 N TORREY PINES ROAD LA JOLLA CA 92037 RESEARCH 586367 20 318542 25235664 8219068 2500 33773274 RESEARCH SUPPORT SRVCS 541900 279163 279163 EDUCATION PROGRAM 611600 102047 102047 PROGRAM SERVICE FEES 541900 7402 7402 388612 310079 310079 2141042 26402 2114640 2114640 146807 1967833 33150 141137 -107987 -107987 -107987 26250 318542 97398 -71148 -71148 HONORARIUM 900099 100 100 13 13 113 36407583 388612 146807 2098890 2259069 1015127 1243942 14682290 13925221 333619 423450 1189301 1050430 108144 30727 1562361 1497739 16653 47969 1121002 990630 101002 29370 351315 220572 114020 16723 31962 26832 4990 140 79806 68644 9300 1862 120000 120000 152252 105188 13410 33654 2000 2000 267182 232599 22342 12241 462701 418815 31269 12617 5958724 3445806 2478770 34148 272151 249760 16100 6291 122206 100591 21615 44477 32933 11238 306 1715701 1523087 179914 12700 235061 213560 17914 3587 SUBCONTRACTS 6384123 6384123 RESEARCH SUPPLIES 4606932 4598150 5409 3373 LAB/CLINICAL/TECH SVS 1101885 1065633 35561 691 UBI TAX 77574 77574 815016 757841 51303 5872 43615091 37923281 5016089 675721 5400 900 19862035 9808183 6150913 6527765 155259 115582 198850 103468 106716 0 24758 0 569012 348517 24328398 15203830 9488074 9124568 684672 270702 93312 69984 37339001 26369669 5932499 5548637 6989125 4266831 2059932 1465000 1081327 955546 16062883 12236014 X 14697212 11276235 6578906 2857420 21276118 14133655 37339001 26369669 X -7207508 65045 X 0 1 X 1 1 1 X UNIVERSITY OF WASHINGTON MEDICAL CENTER SEATTLE WA WALTER REED ARMY INSTITUTE OF RESEARCH SILVER SPRING MD SEATTLE CHILDREN'S HOSPITAL SEATTLE WA BOSTON CHILDREN'S HOSPITAL BOSTON MA SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: THESE HOSPITAL AFFILIATIONS ALLOW SEATTLE BIOMED TO QUALIFY AS A MEDICAL RESEARCH ORGANIZATION. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 120000 0 0 120000 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: SEATTLE BIOMED HIRED AN INDEPENDENT LOBBYIST TO LOBBY THE LEGISLATURE ON ISSUES INVOLVING THE ORGANIZATION'S MISSION. 11261461 5575759 5685702 12225483 8842724 3382759 841454 785347 56107 9124568 84261 FAIR VALUE OF INTEREST RATE SWAP 8916 DEFERRED RENT LIABILITY 862369 955546 36477098 35610 35610 36441488 -33905 -33905 36407583 43619561 18669 18669 43600892 14199 14199 43615091 PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN FAIR MARKET VALUE OF INTEREST RATE SWAP 35,610. PART XI, LINE 4B - OTHER ADJUSTMENTS: BOOK/TAX DIFFERENCE FROM INVESTMENT IN 307 WESTLAKE, LLC -21,703. RENTAL EXPENSE FROM 307 WESTLAKE, LLC -26,401. INDIRECT SPECIAL EVENT DEDUCTIONS 14,199. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON PLEDGES RECEIVABLE 18,669. PART XII, LINE 4B - OTHER ADJUSTMENTS: INDIRECT SPECIAL EVENT DEDUCTIONS 14,199. EAST ASIA AND THE PACIFIC 0 3 PROGRAM SERVICES EMERGING INFECTIONS 40681 EUROPE 0 21 PROGRAM SERVICES EMERGING INFECTIONS, MALARIA, TB, VIRAL VACCINES 55894 SUB-SAHARAN AFRICA 0 4 PROGRAM SERVICES MALARIA, VIRAL VACCINES 42443 NORTH AMERICA 0 0 PROGRAM SERVICES EMERGING INFECTIONS, MALARIA, TB, VIRAL VACCINES 27316 MIDDLE EAST AND NORTH AFRICA 0 3 PROGRAM SERVICES EMERGING INFECTIONS, VIRAL VACCINES 888 NORTH AMERICA 0 11 ADMINISTRATIVE SERVICES 36358 0 42 0 0 0 42 203580 0 203580 0 0 0 0 0 0 METHOD USED TO ACCCOUNT FOR EXPENDITURES: SCHEDULE F, PART I, LINE 3: SEATTLE BIOMED DOES NOT MAINTAIN ANY FOREIGN OFFICES. SEATTLE BIOMED'S SUB-CONTRACTORS ARE PERFORMING RESEARCH ON BEHALF OF THE ORGANIZATION AROUND THE WORLD. THE ACCRUAL METHOD OF ACCOUNTING IS USED TO ACCOUNT FOR EXPENDITURES. PASSPORT DINNER 333942 309717 24225 6411 31574 20000 35925 HARAMBEE-LUNCHEON 10850 8825 2025 3407 81 344792 318542 26250 6411 34981 20000 36006 97398 -71148 X X X X 1 0 0 0 0 0 0 0 0 KENNETH STUART PHD PRES 294455 0 295880 0 0 0 25000 0 6020 0 621355 0 0 0 ALAN ADEREM 316548 0 0 0 0 0 25000 0 12226 0 353774 0 0 0 RANDALL HASSLER 208958 0 0 0 0 0 21441 0 12226 0 242625 0 0 0 LOUIS COFFMAN 149925 0 0 0 0 0 14896 0 6966 0 171787 0 0 0 KAREN BLOCHLINGER 150162 0 0 0 0 0 15124 0 6324 0 171610 0 0 0 STEFAN KAPPE 181434 0 0 0 0 0 12984 0 9480 0 203898 0 0 0 LEONIDAS STAMATATOS 177083 0 0 0 0 0 17958 0 7080 0 202121 0 0 0 PETER MYLER 158458 0 0 0 0 0 16438 0 11441 0 186337 0 0 0 JOHN AITCHISON 143192 0 0 0 0 0 10500 0 11994 0 165686 0 0 0 THOMAS BLACKWELL 141939 0 0 0 0 0 11334 0 6123 0 159396 0 0 0 MALCOLM GARDNER 141149 0 0 0 0 0 14215 0 6884 0 162248 0 0 0 RUOBING WANG 139710 0 0 0 0 0 13968 0 6867 0 160545 0 0 0 PART I, LINE 4A ON JANUARY 1, 2012, DR. KEN STUART, FOUNDER AND FORMER PRESIDENT, TRANSITIONED TO THE POSITION OF PRESIDENT EMERITUS. ON THAT DATE, HE WAS PAID A LUMP SUM BONUS OF $295,880 IN LIEU OF DEFERRED COMPENSATION. THIS BONUS WAS INCLUDED AS TAXABLE INCOME IN DR. STUART'S 2012 W-2. DR. STUART ALSO RECEIVED COMPENSATION REPORTED ON HIS W-2 FOR CALENDAR YEAR 2012 FOR HIS SERVICES AND POSITION AS PRINCIPAL INVESTIGATOR. STEFAN KAPPE PRINCIPAL INVESTIGATOR UNRESTRICTED LOAN X 80000 103468 0 1 1 103468 FORM 990, PART I, LINE 6: VOLUNTEERS INCLUDE UNCOMPENSATED BOARD MEMBERS, WHOSE TIME REPRESENTS 100% OF THE VOLUNTEER HOURS FOR FISCAL YEAR 2013. THE NUMBER OF VOLUNTEERS AND CONTRIBUTED HOURS ARE TRACKED AT EACH MEETING AND EVENT; THE TOTAL HOURS FOR THE CURRENT YEAR WERE 1,846. FORM 990, PART VI, SECTION B, LINE 11 THE RETURN WILL BE REVIEWED IN DETAIL BY THE SENIOR VP OF STRATEGY/BUSINESS DEVELOPMENT. IN ADDITION, THE 990 WILL BE PRESENTED TO THE FINANCE AND AUDIT COMMITTEE. A FINAL DRAFT WILL BE ELECTRONICALLY SENT TO ALL TRUSTEES OF SEATTLE BIOMED. OUR BOARD LIAISON WILL MONITOR THE DISTRIBUTION OF THE RETURN AND WILL COLLECT COMMENTS AND RESPONSES AND REPORT THESE TO THE SENIOR VP OF STRATEGY/BUSINESS DEVELOPMENT PROMPTLY. ANY PERTINENT RESPONSES WILL BE ADDRESSED AND RESOLVED BEFORE THE FINAL TAX RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH TRUSTEE (AND ALL KEY EMPLOYEES) AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SAID PERSON HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY, AND AGREES TO COMPLY WITH THE POLICY. IF ANY KNOWN CONFLICTS ARISE, THEY ARE SENT TO THE EXECUTIVE COMMITTEE FOR RESOLUTION. A FOLLOWUP WITH THE LEADERSHIP TEAM THEN OCCURS, IF NEEDED. PROCEDURES: 1. DUTY TO DISCLOSE: IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS/HER FINANCIAL INTEREST TO THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES PRIOR TO CONSIDERATION OF THE PROPOSED TRANSACTION OR ARRANGEMENT AND MUST NOT ENTER INTO ANY ARRANGEMENT WHERE THERE IS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST WITHOUT EXECUTIVE COMMITTEE APPROVAL. 2. DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS: AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL RECUSE HIMSELF/HERSELF WHILE THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON. THE EXECUTIVE COMMITTEE SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. 3. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST: A. THE EXECUTIVE COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. B. AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER SEATTLE BIOMED CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. C. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED MEMBERS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN SEATTLE BIOMED'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SEATTLE BIOMED AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. 4. VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY: A. IF THE BOARD, A COMMITTEE, SEATTLE BIOMED STAFF, OR A TRUSTEE HAS REASONABLE CAUSE TO BELIEVE THAT A TRUSTEE OR A COMMITTEE MEMBER HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER THE OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. B. IF, AFTER HEARING THE RESPONSE FROM THE MEMBER AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE EXECUTIVE BOARD DETERMINES THAT THE MEMBER HAS, IN FACT, FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PLANNING AND REVIEW TAKES PLACE ANNUALLY. HUMAN RESOURCES PROVIDES MARKET DATA FOR EACH POSITION IN THE INSTITUTE. FOR SENIOR LEADERSHIP POSITIONS, SPECIFICALLY KEY EMPLOYEES, AN OUTSIDE COMPENSATION CONSULTANT BENCHMARKS THESE POSITIONS AND PROVIDES DATA AND ANALYSIS, WHICH ALLOWS THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT TO ESTABLISH A PAY RANGE FOR EACH OF THESE ROLES AT OUR INSTITUTE. THE HUMAN RESOURCES DEPARTMENT ALSO GATHERS INDUSTRY-SPECIFIC INFORMATION FROM OUR PEERS TO VALIDATE THE SURVEY INFORMATION AND TO ENSURE THAT WE REMAIN COMPETITIVE WITH OUR COMPENSATION. THIS INFORMATION IS GATHERED FROM LOCAL PEER ORGANIZATIONS IN OUR INDUSTRY AND/OR FROM PEER ORGANIZATIONS WHO ARE PART OF THE ASSOCIATION OF INDEPENDENT RESEARCH INSTITUTES (AIRI). THE MOST RECENT COMPENSATION REVIEW OF SENIOR POSITIONS (PRIOR TO JUNE 30, 2013) TOOK PLACE IN JANUARY 2012. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP AGREEMENT 35,610. RENTAL EXPENSE FROM 307 WESTLAKE, LLC 26,401. BOOK/TAX DIFFERENCE FROM INVESTMENT IN 307 WESTLAKE, LLC 21,703. LOSS ON PLEDGES RECEIVABLE -18,669.