2014-05-14T08:36:05-05:00 2013-06-30 232932984 PARENTEBEARD LLC 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2012-07-01 232216041 GOOD SHEPHERD REHABILITATION NETWORK GOOD 6107763228 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 RONALD J PETULA 6107763228 2014-05-13 1 JULIUS C GREEN CPA JD P00350393 2159720701 2012 2015-11-30 17:44:51Z RONALD J PETULA GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 76831606 0 X WWW.GOODSHEPHERDREHAB.ORG X 1909 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 18 13 258 205 217287 215788 5046851 4971002 45276786 46453509 3108258 8885525 1157987 1447670 54589882 61757706 1884894 1825893 0 0 27746002 30652209 39000 39000 2330817 26888128 24981567 56558024 57498669 -1968142 4259037 292454771 316871170 161762198 157213798 130692573 159657372 X GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION." 0 0 37230562 1825893 46453509 GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), BASED IN ALLENTOWN,PENNSYLVANIA IS A NATIONALLY RECOGNIZED REHABILITATION LEADER, OFFERING A CONTINUUM OF CARE FOR PEOPLE WITH PHYSICAL AND COGNITIVE DISABILITIES AND SPECIALIZING IN ASSISTIVE AND REHABILITATION TECHNOLOGY. FOR THE 2013 FISCAL YEAR, 59,842 PEOPLE RECEIVED CARE AT GOOD SHEPHERD REHABILITATION NETWORK. THIS INCLUDED 40,687 IN THE GREATER LEHIGH VALLEY AREA AND 19,155 IN THE GREATER PHILADELPHIA AREA. SPECIALIZED INPATIENT AND OUTPATIENT POST-ACUTE CARE PROGRAMS OFFERED BY GSRN INCLUDE: STROKE, ORTHOPEDICS, BRAIN INJURY, SPINE AND JOINT PAIN, SPINAL CORD INJURY, PEDIATRICS, MULTIPLE SCLEROSIS AND AMPUTATION. GOOD SHEPHERD OPERATES: 23 OUTPATIENT SITES; 5 INPATIENT SITES; A LONG-TERM ACUTE CARE HOSPITAL; 2 LONG-TERM CARE HOMES FOR PEOPLE WITH SEVERE DISABILITIES; AND AN INDEPENDENT LIVING FACILITY. GOOD SHEPHERD ALSO IS THE MAJORITY OWNER OF A JOINT VENTURE WITH PENN MEDICINE IN PHILADELPHIA, PENNSYLVANIA. GOOD SHEPHERD PENN PARTNERS ("GSPP") PROVIDES THE PHILADELPHIA REGION WITH A CONTINUUM OF POST-ACUTE CARE THAT INCLUDES INPATIENT AND OUTPATIENT REHABILITATION AND LONG-TERM ACUTE CARE. TWELVE GSPP PENN THERAPY & FITNESS LOCATIONS PROVIDE OUTPATIENT REHABILITATION SERVICES THROUGHOUT THE GREATER PHILADELPHIA AREA, WHILE PHYSICAL, OCCUPATIONAL, AND SPEECH THERAPY SERVICES ARE PROVIDED WITHIN PENN MEDICINE'S THREE ACUTE-CARE HOSPITALS. GSRN WAS FOUNDED IN 1908 WHEN THE REV. JOHN AND ESTELLA RAKER INVITED A DISABLED ORPHAN NAMED VIOLA INTO THEIR ALLENTOWN, PENNSYLVANIA HOME. GSRN IS AFFILIATED WITH THE EVANGELICAL LUTHERAN CHURCH IN AMERICA AND PROVIDES REHABILITATION SERVICES AT MORE THAN 30 LOCATIONS IN 8 EASTERN PENNSYLVANIA COUNTIES. GSRN PROVIDES MANAGEMENT SERVICES IN SUPPORT OF THE REHABILITATION HEALTH-CARE MISSION OF ITS TAX-EXEMPT AFFILIATES. GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GSRN IS THE PARENT ORGANIZATION OF 6 TAX-EXEMPT AFFILIATES THAT OFFER MANY LEVELS OF REHABILITATION CARE. GSRN IS ALSO THE PARENT ORGANIZATION OF ONE TAXABLE AFFILIATE THAT IS A SELF-INSURANCE COMPANY. AS THE PARENT ORGANIZATION, GSRN OPERATES ALL CORPORATE ADMINISTRATIVE FUNCTIONS FOR THE GOOD SHEPHERD AFFILIATES, INCLUDING BUT NOT LIMITED TO ADMINISTRATION, DIETARY, FINANCE, FUNDRAISING, HUMAN RESOURCES, INFORMATION SYSTEMS, MAINTENANCE, MARKETING, AND PASTORAL CARE. 37230562 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 X 304 0 1 258 0 1 1 0 0 0 0 0 0 0 0 0 X 18 13 0 0 1 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA FL MN X RONALD J PETULA VP FINANCE 6107763228 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 18103 X SCOTT A BAKER 0.30 1.00 X X 0 0 0 SANDRA L BODNYK 0.40 1.60 X X 0 0 0 PATRICK J BRENNAN MD 0.30 1.00 X 0 0 0 ALVARO DIAZ 0.30 1.00 X 0 0 0 DAVID G DECAMPLI 0.70 2.60 X X 0 0 0 ROBERT E GADOMSKI 0.30 1.00 X 0 0 0 MICHAEL GOLDNER DO 0.20 0.60 X 0 0 0 ELSBETH G HAYMON 0.30 1.00 X 0 0 0 KATHERINE E HILGERT 0.20 0.60 X 0 0 0 SANDRA JARVA WEISS 0.20 0.60 X X 0 0 0 F MARK GUMZ 0.30 1.00 X 0 0 0 GERALD A NAU 0.20 0.60 X 0 0 0 EDITH D RITTER 0.20 0.60 X 0 0 0 KAREN SENFT 0.20 0.60 X 0 0 0 LAURIE STEWART 0.30 1.00 X 0 0 0 THE REV DAVID R STROBEL 0.20 0.60 X 0 0 0 DANIEL J WILSON PHD 0.30 1.00 X 0 0 0 SARA T GAMMON 30.00 30.00 X X 560936 0 173748 SAMUEL A MIRANDA JR 10.00 50.00 X 212394 0 53302 DANIEL C CONFALONE 22.00 38.00 X 345276 0 32960 ALLEN M KHADEMI 30.00 30.00 X 322639 0 25104 HAROLD M TING 30.00 30.00 X 197289 0 21032 RONALD J PETULA 22.00 38.00 X 145281 0 21481 DAVID F LYONS 30.00 30.00 X 153458 0 20938 FRANK HYLAND 30.00 30.00 X 148199 0 18686 ANTHONY R BONGIOVANNI 0.00 X 142921 0 8021 2228393 0 375272 19 1 1 0 SODEXHO OPERATIONS LLC 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 DIETARY/FOOD SERVICES 1900708 EASTON COACH COMPANY 1200 CONROY PLACE EASTON PA 18040 TRANSPORTATION SERVICES 511352 ULTIMATE SOFTWARE GROUP 1485 NORTH PARK DRIVE WESTON FL 33326 PAYROLL SERVICES 402005 HCSC LAUNDRY PO BOX 25092 LEHIGH VALLEY PA 18002 LAUNDRY SERVICES 398151 HT LYONS 7165 AMBASSADOR DRIVE ALLENTOWN PA 18106 CONTRACTING SERVICES 374082 20 4971002 4971002 MANAGEMENT FEES 561000 46453509 46453509 46453509 6051339 6051339 146154 266857 -120703 -120703 -120703 17641229 14807043 2834186 2834186 2834186 EXPENSE REIMBURSEMENT 900099 1166948 1166948 HEALTH NETWORK LABS REV 621500 337990 337990 MEDICAL RECORDS 900099 1722 1722 61713 61713 1568373 61757706 46453509 217287 10115908 X 1825893 1825893 1378615 265695 1112920 150942 150942 14299795 7379324 6163228 757243 4502872 4220316 231671 50885 9254829 8234009 920899 99921 1065156 551467 460341 53348 165052 159390 5662 135558 135558 39000 39000 683509 683509 7679866 4288858 3230246 160762 453799 8474 445325 1709447 1036522 354537 318388 1194293 1194293 145543 30949 105814 8780 440 440 5362212 5362212 2130997 2056924 74073 -243162 -243162 UBI TAX 92760 92760 DEBT RESTRUCTURING 3684534 3684534 CORPORATE ALLOCATION 742004 19769 722235 REPAIRS & MAINTENANCE 558369 558369 486346 197488 248338 40520 57498669 37230562 17937290 2330817 1945312 1690044 1307208 1542690 5772526 292950 1342330 366411 238554 26046266 16694105 9465269 9352161 145833260 188844273 101785048 89874839 25979737 23693329 292454771 316871170 12815670 5626891 112088356 113911721 3558916 1844002 33299256 35831184 161762198 157213798 X 94443167 121258620 9469125 10481046 26780281 27917706 130692573 159657372 292454771 316871170 X 4259037 14769583 9936179 X X 0 1 X 1 0 X 3576315 4688896 3468259 5046851 4971002 21751323 3576315 4688896 3468259 5046851 4971002 21751323 21751323 6483150 4783360 5506148 4761968 6051339 27585965 277503 210099 119980 191092 798674 4970 1280505 1428321 1264842 1230383 5209021 55344983 219417905 0.39300 0.42550 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 20369987 843128 1601840 957376 21857579 20129443 754521 368887 882864 20369987 18523874 229597 2262789 886817 20129443 17900332 643738 913701 933897 18523874 20587042 654587 -2583126 758171 17900332 0.11000 0.89000 0 0 828589 828589 5380378 2545777 2834601 168169 120075 48094 19116000 13665194 5450806 553130 363059 190071 9352161 49096548 C ALTERNATIVE INVESTMENTS, AT COST 19439572 C ALTERNATIVE INVESTMENTS, ABSOLUTE RETURN 21338719 F 89874839 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 10477026 BENEFICIAL INTEREST IN CHARITABLE REMAINDER TRUSTS 10997513 DEFERRED FINANCING COSTS, NET 2218790 23693329 CHARITABLE GIFT ANNUITIES 4351583 WORKERS' COMPENSATION 2067372 ANNUITIES PAYABLE 111096 DEFINED CONTRIBUTION PLAN LIABILITY 1079325 AMOUNTS DUE TO AFFILIATES 23793962 DERIVATIVE FINANCIAL INSTRUMENT 4427846 35831184 X 86046816 14769583 10274169 25043752 61003064 683509 71133 754642 61757706 57082017 266857 266857 56815160 683509 683509 57498669 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: GOOD SHEPHERD'S ENDOWMENTS PROVIDE INCOME IN PERPETUITY FOR PROGRAMS AND SERVICES, INCLUDING: RESEARCH, TECHNOLOGY, PEDIATRICS, LONG TERM CARE OPERATIONS AND RECREATION, EDUCATION, GENERAL AND NEUROREHABILITATION PROGRAMS, AND FOR THE GENERAL SUPPORT OF GOOD SHEPHERD'S OPERATIONS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. GOOD SHEPHERD'S FEDERAL INCOME TAX RETURNS FOR THE YEARS ENDED PRIOR TO JUNE 30, 2010 NO LONGER REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 6,927,463. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 2,329,795. PENSION LIABILITIY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 625,404. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 16,023. VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS 257,701. TRANSFER OF NET ASSETS FROM FORMER WORK SERVICES ENTITY 117,783. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -266,857. HEALTH NETWORK LABS REV 337,990. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 266,857. X X X X 1 SCHULTZ AND WILLIAMS 325 CHESTNUT STREET SUITE 700 PHILADELPHIA PA 19106 DIRECT MAIL CONSULTING 0 0 39000 -39000 39000 -39000 PA FL MN EXPLANATION OF FUNDRAISING PAYMENTS SCHEDULE G, PART I, LINE 2B, COLUMN (V) THE TOTAL AMOUNT PAID TO SCHULTZ AND WILLIAMS FOR FISCAL YEAR JUNE 30, 2013 WAS $284,662. THE $39,000 REPORTED IN SCHEDULE G, PART I RELATES TO DIRECT MAIL CONSULTING. THE REMAINING PAYMENTS MADE TO SCHULTZ AND WILLIAMS WERE FOR OTHER SERVICES SUCH AS CREATIVE CONSULTING FEES, PRINTING, LETTERSHOP, LIST ACQUISITION AND MANAGEMENT, MERGE AND PURGE, SHIPPING AND POSTAGE. SCHULTZ AND WILLIAMS INVOICES ARE VERY SPECIFIC AND INDICATE THE AMOUNT BILLED FOR EACH ACTIVITY. THE AMOUNT OF CONTRIBUTIONS RECEIVED AS A RESULT OF THIS CONSULTING COULD NOT BE EASILY DETERMINED. 1 GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 232215800 501(C)(3) 399536 N/A N/A CHARITABLE ACTIVITIES GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 231371947 501(C)(3) 1426357 N/A N/A CHARITABLE ACTIVITIES 2 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ALL RECIPIENTS ARE AFFILIATED TAX-EXEMPT ORGANIZATIONS. GSRN SERVES AS THE PARENT ENTITY AND IS AWARE OF THE OPERATIONS AND USE OF FUNDS RECEIVED. X 1 1 X X X X X X 1 0 0 0 0 0 0 1 0 SARA T GAMMON 560936 0 0 0 0 0 168861 0 4887 0 734684 0 0 0 SAMUEL A MIRANDA JR 212394 0 0 0 0 0 41894 0 11408 0 265696 0 0 0 DANIEL C CONFALONE 345276 0 0 0 0 0 20733 0 12227 0 378236 0 0 0 ALLEN M KHADEMI 322639 0 0 0 0 0 11785 0 13319 0 347743 0 0 0 HAROLD M TING 197289 0 0 0 0 0 11847 0 9185 0 218321 0 0 0 RONALD J PETULA 145281 0 0 0 0 0 8724 0 12757 0 166762 0 0 0 DAVID F LYONS 153458 0 0 0 0 0 8120 0 12818 0 174396 0 0 0 FRANK HYLAND 148199 0 0 0 0 0 8899 0 9787 0 166885 0 0 0 ANTHONY R BONGIOVANNI 0 0 0 0 142921 0 2704 0 5317 0 150942 0 0 0 PART I, LINE 1A GOOD SHEPHERD DOES NOT PAY ANY DUES ON BEHALF OF CEO, SARA GAMMON, DIRECTLY TO A SOCIAL CLUB. GOOD SHEPHERD REIMBURSES THE CEO FOR CERTAIN SOCIAL CLUB DUES RELEVANT IN PURSUING THE OVERALL MISSION OF GOOD SHEPHERD. THESE EXPENSES ARE ACCOUNTED FOR UNDER AN ACCOUNTABLE REIMBURSEMENT PLAN. THE AMOUNT OF THIS REIMBURSEMENT IS INCLUDED IN MS. GAMMON'S TAXABLE COMPENSATION. PART I, LINE 4A ANTHONY BONGIOVANNI IS THE FORMER CPO (KEY EMPLOYEE) OF THE GOOD SHEPHERD REHABILITATION NETWORK AND AFFILIATES. HE RECEIVED $142,921 FOR 31.5 WEEKS OF SEVERANCE PAY, BEGINNING JULY 30, 2012. PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2013, A PERFORMANCE PAYMENT WAS NOT ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR. A LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RCE8 2012-12-20 32511568 FINANCE CAPITAL PRJCTS; ESTABLISH DEBT SERV RESERVE; PAY COSTS OF BONDS 0 0 0 B LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 5248058S0 2007-11-15 51367939 FINANCE CAP INVSTMTS 0 0 0 C LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RAZ3 2011-12-01 34840000 TO REFUND THE 2007B AND 2008A BONDS 0 0 0 A 160000 32511568 27968861 495514 915289 3131905 0 1 0 1 B 3175000 51367939 4014025 1597399 45756515 2009 1 0 1 1 C 6945000 34840000 34840000 2011 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 1 0 0 1 1 B 0 0 0 1 1 1 MERRILL LYNCH CAPITAL SERVICES 20.900000000000 0 0 0 0 1 C 0 0 1 0 1 1 MERRILL LYNCH CAPITAL SERVICES 26.500000000000 0 0 0 0 1 A 0 B 0 C 0 SCHEDULE K PART IV, ARBITRAGE, LINE 2C DATE REBATE COMPUTATION PERFORMED ISSUER NAME: LEHIGH COUNTY GENERAL PURPOSE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 10/02/2012 PART IV LINE 6A: THE ESCROW FUND HAS BEEN INVESTED BEYOND THE TEMPORARY PERIOD BUT AT A YIELD BELOW THE YIELD OF THE BONDS. PART V: PROCEDURES TO UNDERTAKE CORRECTIVE ACTION ALTHOUGH THE ORGANIZATION DID NOT HAVE SUCH PROCEDURES IN WRITING AS OF 6/30/13, A WRITTEN POLICY HAS SINCE BEEN ADOPTED. FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE GOOD SHEPHERD REHABILITATION NETWORK'S ("GSRN") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSRN ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 4 GSRN BYLAW REVISIONS PERTAIN TO THE REMOVAL OF THE GOOD SHEPHERD WORKSHOP/VOCATIONAL SERVICES, INC. AND THE ADDITION OF AN INVESTMENT SUB-COMMITTEE. THE COMPOSITION AND RESPONSIBILITIES OF THIS NEWLY FORMED GROUP WERE DEFINED. FORM 990, PART VI, SECTION A, LINE 7A TWO-THIRDS OF THE ORGANIZATION'S TRUSTEES SHALL BE ELECTED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S BYLAWS MAY BE ALTERED, AMENDED, OR REPEALED BY THE BOARD. IN ADDITION, THE AMENDMENT SHALL BE APPROVED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA BEFORE TAKING EFFECT. FORM 990, PART VI, SECTION B, LINE 11 THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS IS PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND THE SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) DELEGATES RESPONSIBILITY FOR FOLLOWING ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES/COMPENSATION COMMITTEE OF THE BOARD (THE COMMITTEE). THE BOARD DELEGATES RESPONSIBILITY TO ENGAGE EXTERNAL RESOURCES AS NECESSARY TO THE COMMITTEE TO SUPPORT DELIBERATIONS AND DECISION MAKING RELATED TO EXECUTIVE COMPENSATION. THE COMMITTEE SELECTED AND UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, MERCER - A MARSH & MCCLENNAN COMPANY, (THE CONSULTANT) AS A RESOURCE TO ASSIST WITH DECISIONS RELATED TO EXECUTIVE COMPENSATION. IN ACCORDANCE WITH THE COMMITTEE'S ANNUAL WORK PLAN, THE CONSULTANT PRESENTED A "TOTAL REMUNERATION REVIEW" ON OCTOBER 30, 2013 DURING EXECUTIVE SESSION (NO EMPLOYED STAFF OF GSRN IN ATTENDANCE) OF A REGULARLY SCHEDULED COMMITTEE MEETING. THE TOTAL REMUNERATION REVIEW WAS DEVELOPED USING COMPETITIVE MARKET AND PEER GROUP DATA RELATED TO ALL ASPECTS OF COMPENSATION INCLUDING BUT NOT LIMITED TO BASE SALARY, INCENTIVES, BENEFITS AND PERQUISITES. ALL OF THE COMPENSATION MEETINGS ARE FORMALLY DOCUMENTED CONSISTENT WITH BEST GOVERNANCE PRACTICES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE PUBLISHED TO THE ORGANIZATION'S WEBSITE AT LEAST ANNUALLY. THE GOVERNING DOCUMENTS AND POLICIES ARE AVAILABLE UPON REQUEST. FORM 990, PART VI, LINE 1: THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRS OF ALL THE BOARD COMMITTEES AS WELL AS THE CHAIR AND VICE CHAIR OF THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE CAN ACT ON BEHALF OF THE BOARD OF TRUSTEES IN MOST CASES. ANY FUNDAMENTAL CHANGES WILL GO TO THE FULL BOARD. OTHER FEES FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 8,280. MANAGEMENT AND GENERAL EXPENSES 514,107. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 522,387. PHARMACY SERVICES: PROGRAM SERVICE EXPENSES 19,215. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 19,215. LABORATORY SERVICES: PROGRAM SERVICE EXPENSES 38,884. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 38,884. OTHER CLINICAL SERVICES: PROGRAM SERVICE EXPENSES 6,571. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,571. DIETARY: PROGRAM SERVICE EXPENSES 1,723,364. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,723,364. LAUNDRY: PROGRAM SERVICE EXPENSES 378,242. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 378,242. INFORMATION SERVICES: PROGRAM SERVICE EXPENSES 98,929. MANAGEMENT AND GENERAL EXPENSES 172,937. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 271,866. TRANSPORTATION SERVICES: PROGRAM SERVICE EXPENSES 558,003. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 558,003. TRANSCRIPTION SERVICES: PROGRAM SERVICE EXPENSES 249,371. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 249,371. MAINTENANCE AGREEMENTS: PROGRAM SERVICE EXPENSES 862,168. MANAGEMENT AND GENERAL EXPENSES 1,677,178. FUNDRAISING EXPENSES 23,016. TOTAL EXPENSES 2,562,362. INSPECTIONS/LICENSES: PROGRAM SERVICE EXPENSES 18,754. MANAGEMENT AND GENERAL EXPENSES 12,590. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 31,344. OUTSIDE PAINTING: PROGRAM SERVICE EXPENSES 7,671. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 7,671. COLLECTION/COMMISSIONS: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 5,774. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,774. RECRUITMENT SERVICES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 348,964. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 348,964. OTHER PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 319,406. MANAGEMENT AND GENERAL EXPENSES 498,696. FUNDRAISING EXPENSES 137,746. TOTAL EXPENSES 955,848. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 6,927,463. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 2,329,795. PENSION LIABILITY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 625,404. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 16,023. VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS 257,701. REDUCTION IN EQUITY TO REPORT HEALTH NETWORK LABS REVENUE -337,990. TRANSFER OF NET ASSETS FROM FORMER WORK SERVICES ENTITY 117,783. FORM 990, PART XI, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. 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