2014-05-14T16:38:03-05:00 2013-06-30 861065772 DELOITTE 1111 BAGBY STREET SUITE 4500 HOUSTON TX 770022591 990 2012-07-01 741613878 BAYLOR COLLEGE OF MEDICINE BAYL 7137985627 ONE BAYLOR PLAZA No T100 HOUSTON TX 770303498 Robert Corrigan 7137985627 2014-05-14 DOUG ROBB P00780826 7139822000 2012 2015-11-30 17:44:51Z Paul E Klotman MD One Baylor Plaza Houston TX 77030 1481030697 0 X www.bcm.edu X 1900 TX Please see page 2, line 1. 48 48 11420 1950 571998 -436775 999783958 1002466598 265218565 306712565 63680230 44852494 18426122 23323228 1347108875 1377354885 81783252 84192867 0 0 790911268 849352797 0 0 4331330 466857880 424868056 1339552400 1358413720 7556475 18941165 2203755257 2328619821 1297744773 1309388816 906010484 1019231005 X Baylor College of Medicine is committed to advancing human health through the integration of patient care, research, education and community service. 0 0 645875825 61918742 291769247 Service - BCM affirms our covenant to serve the community. Foremost is our commitment to patients, both in our clinical practice and with affiliated hospitals. We strive to improve public health in all our endeavors and serve the community in all aspects of this process. BCM students and residents spend much of their education and training in the college's seven primary care affiliated teaching hospitals where Baylor faculty also provide patient care. 393810485 3571836 Research - BCM researchers and physicians are studying a variety of medical topics, including cancer cell function, fertility, child nutrition, influenza, heart and neurological disorders, and other basic and clinical research. 103686484 17705151 14562874 Instruction - BCM values academic pursuits and we commit our efforts to the scholarly pursuit of knowledge for our trainees, our patients, and our community. As a medical school, BCM's primary goal is to educate medical school students and train medical school graduates. BCM also places emphasis on the education of medical research and allied health personnel. 15163554 997138 1438941 Academic support - departmental teaching and research support funds from various donors and sources. Research and instruction efforts are included in academic support. Library expenses are also included in this category. 15163554 997138 1438941 1158536348 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 0 1 1 0 1 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 1 1 0 0 1 X 1329 0 1 11420 1 1 1 1 UK CJ WZ BC LT MI UG 0 0 0 1 1 0 0 0 0 X 48 48 1 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X Kimberly Cotner David 7137981543 ONE BAYLOR PLAZA 110C HOUSTON TX 77030 X Barbara B Allbritton 2.00 X 0 0 0 John F Anderson MD 2.00 X 0 0 0 Laura E Arnold 3.00 X 0 0 0 David C Baldwin 5.00 X 0 0 0 Gregory D Brenneman 4.00 X 0 0 0 Robert L Brewton 4.00 X 0 0 0 Philip J Burguieres 0.50 X 0 0 0 Pastor K H Caldwell 1.50 X 0 0 0 W Fred Cameron 2.00 X 0 0 0 James Y Chao 3.00 X 0 0 0 Sally Anderson Clark 4.00 X 0 0 0 Shauna J Clark 3.00 X 0 0 0 Milane Duncan-Frantz 3.00 X 0 0 0 James C Flores 2.00 X 0 0 0 James T Hackett 3.00 X 0 0 0 Gerald W Haddock 7.00 X 0 0 0 Larry P Heard 2.00 X 0 0 0 Paul W Hobby 2.00 X 0 0 0 Ned S Holmes 1.50 X 0 0 0 John R Huff 2.00 X 0 0 0 Jack Hunt 2.00 X 0 0 0 Jodie L Jiles 2.00 X 0 0 0 Elise Elkins Joseph 2.00 X 0 0 0 Carolyn Dineen King 8.00 X 0 0 0 Harold M Korell 1.50 X 0 0 0 C Berdon Lawrence 1.00 X 0 0 0 Jack E Little Ph D 1.00 1.00 X 0 0 0 Fred R Lummis 2.00 1.00 X 0 0 0 Jack L Martin 1.00 X 0 0 0 Drayton McLane Jr 0.50 X 0 0 0 Robert C McNair 2.00 X 0 0 0 Trinidad Mendenhall Sosa 0.50 X 0 0 0 John L Nau III 0.50 X 0 0 0 R Randall Onstead Jr 1.00 X 0 0 0 Thomas R Powers 5.00 X 0 0 0 Harry M Reasoner 5.00 X 0 0 0 William K Robbins Jr 3.50 X 0 0 0 Corbin J Robertson Jr 3.00 X 0 0 0 Ali A Saberioon 3.00 X 0 0 0 AR Tony Sanchez Jr 2.00 X 0 0 0 Marc J Shapiro 15.00 X 0 0 0 Glenn R Smith 1.00 X 0 0 0 Lester H Smith 1.00 X 0 0 0 Kenneth W Starr 5.00 X 0 0 0 H Ben Taub 2.00 1.00 X 0 0 0 Robert J Underbrink 1.50 X 0 0 0 Chuck Watson 5.00 X 0 0 0 Mark W White 3.00 X 0 0 0 Charles A Williams 1.00 X 0 0 0 Kimberly David 50.00 1.00 X 499712 0 22892 S Greenberg 50.00 X 523592 0 22892 J D Holcomb 50.00 X 219325 0 21092 Adam Kuspa 50.00 1.00 X 403702 0 22892 Stephen Sigworth 50.00 X 492626 0 22892 Paul Klotman 50.00 X 1396397 0 22892 Robert F Corrigan Jr 50.00 1.00 X 467182 0 22892 Peter J Hotez MDPhD 50.00 X 531265 0 22892 Lorie Tabak 50.00 X 431454 0 22892 Wayne E Keathley 50.00 X 1287160 0 23855 Thomas Michael Wheeler 50.00 X 973108 0 22892 Michael A Belfort 50.00 X 819420 0 22892 Michael Coburn 50.00 X 746672 0 22892 Mark W Kline 50.00 1.00 X 678142 0 22892 William D Walker 50.00 1.00 X 729999 0 22892 Maya S Suresh 50.00 X 609751 0 22892 Thomas R Hunt III 50.00 X 179888 0 6614 Todd Rosengart 50.00 X 169624 0 8185 Joseph Coselli 50.00 X 1994038 0 22892 Charles Fraser 50.00 X 1788954 0 22892 Larry Lipshultz 50.00 X 878095 0 22892 John A Goss 50.00 X 1042647 0 22892 Jeffrey S Heinle 50.00 X 823265 0 22892 Bobby Alford 50.00 X 453707 0 0 W Brinkley 0.00 X 142260 0 16261 William Butler MD 50.00 X 152420 0 16620 Susan Hamilton 50.00 X 448344 0 22892 Lisa Kennedy 0.00 X 330000 0 0 Stephen Spann 50.00 X 577090 0 22583 R Caillouet 0.00 X 313998 0 0 Hiram Gilbert PhD 50.00 X 286986 0 22892 Kristi Cooper 50.00 X 317439 0 22892 Tom Kleinworth 50.00 X 317399 0 22892 N Kathuria 50.00 X 419133 0 21661 David E Wesson 50.00 X 734821 0 22892 Peter Traber former 0.00 X 850000 0 0 23029615 0 686279 1897 1 1 0 LINBECK GROUP LLC 3900 ESSEX LANE SUITE 1200 HOUSTON TX 77027 CONSTRUCTION 11508428 WHR ARCHITECTS INC 1111 LOUISIANA HOUSTON TX 77002 ARCHITECTURE 2863775 W S BELLOWS CONSTRUCTION CORP 1018 ST AGNES HOUSTON TX 77030 CONSTRUCTION 2595011 FULBRIGHT & JAWORSKI LLP 1301 MCKINNEY SUITE 5100 HOUSTON TX 77010 LEGAL SERVICES 2103703 JOHN L WORTHAM & SONLLP 2727 ALLEN PARKWAY HOUSTON TX 77019 INSURANCE 1038425 24 1977816 -18946 510952431 489555297 41586125 1002466598 Educational programs 621110 292149691 291769247 380444 Tuition and fees 611600 14219506 14219506 Interest: student loan 525990 343368 343368 306712565 29915190 1134 29914056 274 274 16132210 16132210 78068 0 78068 78068 -9518 87586 94272864 24037530 79179564 24193800 15093300 -156270 14937030 148442 14788588 143102 1977816 302448 -159346 -159346 20452 0 20452 20452 Parking for employees 531190 3609980 3609980 Rental of facilities 531120 1501181 1501181 Expert witness fees 541900 995142 995142 1145541 443799 51496 650246 7251844 1377354885 307771062 571998 66545227 X 81615139 81615139 2577728 2577728 10596273 4167852 6428421 48982 48982 705077321 643280310 58796009 3001002 31092852 29280926 1673326 138600 63564157 59859975 3420836 283346 38973212 36702060 2097424 173728 3799041 120562 3677186 1293 1010517 436011 574506 3220596 3220596 199162460 158165581 40948659 48220 1577742 8092 1569650 10673604 6912308 3582300 178996 7260994 4974677 2214944 71373 27753501 12939180 14814321 9026620 8531235 467713 27672 2359816 2206043 153773 32401072 1930848 30470224 65348982 54045005 11001178 302799 22096129 2511662 19583989 478 Supplies & other 32192738 38479033 -6346175 59880 Retire bonds 17376421 2471406 14896164 8851 Employee recruiting 6019859 3711622 2302986 5251 Fees 4104082 3609093 465148 29841 -20516118 -20516118 1358413720 1158536348 195546042 4331330 44129893 109057817 155770232 111549468 166916816 156606668 440533682 476918457 4582706 4177237 11295278 10121661 1225188593 655369577 539936062 569819016 488080219 479855998 327807252 385471165 18743001 18768107 5960116 6274227 2203755257 2328619821 598024674 579764669 64957481 71903609 6090786 6009820 570666679 534743410 54569696 5946990 3435457 111020318 1297744773 1309388816 X 127499587 174980680 409362460 459128790 369148437 385121535 906010484 1019231005 2203755257 2328619821 X 18941165 102848827 -8569471 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 0 0 0 1 1206241 0 1 1206241 0 Explanation of Lobbying Activities: Part II-B, Line 1: Line 1(I), Other lobbying activities: Infrequently, college alumni and some board members are requested to contact their state representative to support the appropriate legislation to support the college. 797276599 18133483 98116751 38060758 875466075 839779347 21739638 -1574109 62668277 797276599 793303356 32598886 169899819 156022714 839779347 719348878 14371052 113514429 53931002 793303356 1092000749 18050529 -232873845 157828555 719348878 0.33170 0.66420 0.00410 1 0 2152455 12367733 14520188 717442170 290228242 427213928 117597701 82571529 35026172 372647629 280512178 92135451 2980905 2057628 923277 569819016 Abry Mezzanine Partners, L.P. 561535 F Abry Partners V, L.P. 3164261 F Abry Partners VI, L.P. 6074408 F Abry Partners VII, L.P. 5833017 F Abry Senior Equity II, L.P. 2631563 F Abry Senior Equity IV, LP 850229 F Auxeris Therapeutics, 946 shares 1 F Baylor Medical Foundation 33994611 F BCM Technologies, 1, L.P. 756368 F BCM Technologies, Inc. 10955752 F Bridgepoint Europe II A LP 1447640 F CSFP Global Opportunities Fund 4795 F DLJ Merchant Banking Partners III, L.P. 2910069 F Fairway Medical Tech, Inc. 1 F FHJ Scientific 1 F Finger 1% Limited partnership interest 138189 F Gene Excel, Inc. 1 F GMO & Co. LLC 60616253 F Hicks, Muse, Tate & Furst V, L.P. 566220 F Horsley Bridge III LP 21221187 F Horsley Bridge International V LP 6547273 F Horsley Bridge IV LP 21479991 F Horsley Bridge IX LP 16461878 F Horsley Bridge VII LP 17404082 F Horsley Bridge VIII LP 23720896 F Hudson Partnership, Ltd. 100000 F Ingenex, Inc. 1 F JPM Income & Growth Real Estate Fund, L.P. 31940138 F King Ranch Investment 8357265 F King Ranch Investments, L.P. 26006 F OCM Opportunities Fund VI L.P. 1248415 F OCM Opportunities Fund VII L.P. 2340991 F OCM Opportunities Fund VIIb L.P. 2893242 F Private equity fair value adjustment 4379083 F Progression Therapeutics, Inc. 1000 F RREEF America Real Estate Fund, L.P. 23135873 F Sasco Capital 51899681 F Sennes Drug Innovations, Inc. (AGIS) 1 C StepstoneMed, Inc. 1 C Thomas H. Lee Equity Fund V, L.P. 1540940 F TSG4 L.P. 6351415 F TSG5, L.P. 13697239 F USRC LP Bellaire & Scott 219653 F 385471165 Bonds payable college taxable series 2012 109121000 Other liabilities - Gift annuities 1899318 111020318 Description of Intended Use of Endowment Funds: Part V, Line 4: PART V, LINE 4 - INTENDED USE OF ENDOWMENT FUNDS: The endowment funds are used to fund medical research and medical education, including scholarships and student loan funds. FIN 48 FOOTNOTE - UNCERTAINTY IN INCOME TAXES - ASC 740: In the consolidated audited financial statements for the year ended June 30, 2013, the footnote to the financial statements addressing the reporting requirements of FIN 48 reads as follows: "ASC 740, Income Taxes, creates a single model to address uncertainty in tax positions and clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Under the requirements of ASC 740, tax-exempt organizations could now be required to record an obligation as the result of a tax position they have historically taken on various tax exposure items. Prior to ASC 740, tax liabilities were recorded as incurred. There are no material unrecorded tax liabilities as June 30, 2013 and 2012." 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Explanation of Nondiscriminatory Policy Publication Schedule E, Part I, Line 3 The college includes a statement of its racially nondiscriminatory policy as to students in all its brochures and catalogs dealing with admissions, programs and scholarships. Explanation of Government Financial Assistance Schedule E, Part I, Line 6 Baylor College of Medicine participates in the federal student loan programs, Perkins Primary Care Loans and Loans for Disadvantaged Students. The U.S. government provides the money that the college loans to students at 5% interest. The principal and interest collected from the students are used to reloan to other students. Baylor College of Medicine receives aid and assistance from government agencies, including medical research grants from NIH, NSF, DOD, USDA, NASA, DOJ, TITLE IV Funding, Perkins and Federal workstudy from the Department of Education. State agencies include the Texas Coordinating Board, the DSHS (Dept of State Health Services) and the Department of Transportation. Local agencies include the Harris County Hospital District and the City of Houston. 1 EUROPE GRANTS TO RECIPIENTS LOCATED IN REGION FOR HOSPITAL CONSTRUCTION Grants for pediatric aids prevention and care 465919 SUB-SAHARAN AFRICA GRANTS TO RECIPIENTS LOCATED IN REGION FOR HOSPITAL CONSTRUCTION Grants for pediatric aids prevention and care 2111809 UNITED KINGDOM Limited partnership investment 1447640 0 0 0 0 0 0 4025368 0 4025368 Europe Provide pediatric aids prevention and care 465919 Wire transfer to local bank account of the organization S-Sahara Africa Provide pediatric aids prevention and care 2111809 Wire transfer to local bank account of the organization 2 1 0 1 1 1 0 Procedure for Monitoring Grants Outside the U.S.: Schedule F, Part I, Line 2: The majority of the people on the board of the organizations are employees of Baylor College of Medicine, and employees of a related organization, Baylor International Pediatric Aids Initiative. These board members are therefore able to control the board and monitor the activities of the various non-governmental organizations through board oversight. X X X 0 TX Partnership Gala 1241502 1158502 83000 19263 45613 42427 Friends for the Prevention of Heart 648075 622515 25560 49093 500 31137 2 231341 196799 34542 4100 120 413 109782 2120918 1977816 143102 4100 68476 46526 183346 302448 -159346 1 Scholarships and Fellowships for students 3325 81615139 n/a n/a Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Grants and other assistance to individuals are provided in the form of Stipends to Residents, Post-doctoral, and Graduate Students. The Stipends are subject to all of the payroll system controls, time sheets, time and effort reporting and other payroll controls. The remaining grants use tuition scholarships which are applied directly to tuition and fees within the accounting system to which the student has no access. X 1 1 X X X X X 1 0 0 0 0 0 0 0 0 Kimberly David 416902 0 82000 0 810 0 15528 0 7364 0 522604 0 0 0 S Greenberg 506405 0 5796 0 11391 0 15528 0 7364 0 546484 0 0 0 J D Holcomb 208467 0 0 0 10858 0 13728 0 7364 0 240417 0 0 0 Adam Kuspa 359960 0 36000 0 7742 0 15528 0 7364 0 426594 0 0 0 Stephen Sigworth 446816 0 45000 0 810 0 15528 0 7364 0 515518 0 0 0 Paul Klotman 919393 0 450000 0 27004 0 15528 0 7364 0 1419289 0 0 0 Robert F Corrigan Jr 423440 0 42500 0 1242 0 15528 0 7364 0 490074 0 0 0 Peter J Hotez MDPhD 490523 0 39500 0 1242 0 15528 0 7364 0 554157 0 0 0 Lorie Tabak 390914 0 40000 0 540 0 15528 0 7364 0 454346 0 0 0 Wayne E Keathley 670811 0 613333 0 3016 0 17037 0 6818 0 1311015 0 0 0 Thomas Michael Wheeler 791840 0 164704 0 16564 0 15528 0 7364 0 996000 0 0 0 Michael A Belfort 754012 0 64166 0 1242 0 15528 0 7364 0 842312 0 0 0 Michael Coburn 666131 0 78219 0 2322 0 15528 0 7364 0 769564 0 0 0 Mark W Kline 663554 0 12266 0 2322 0 15528 0 7364 0 701034 0 0 0 William D Walker 478077 0 249600 0 2322 0 15528 0 7364 0 752891 0 0 0 Maya S Suresh 572833 0 32009 0 4909 0 15528 0 7364 0 632643 0 0 0 Thomas R Hunt III 94745 0 85000 0 143 0 5752 0 862 0 186502 0 0 0 Todd Rosengart 118985 0 50000 0 639 0 7261 0 924 0 177809 0 0 0 Joseph Coselli 1990474 0 0 0 3564 0 15528 0 7364 0 2016930 0 0 0 Charles Fraser 1765827 0 15385 0 7742 0 15528 0 7364 0 1811846 0 0 0 Larry Lipshultz 872818 0 0 0 5277 0 15528 0 7364 0 900987 0 0 0 John A Goss 1034905 0 0 0 7742 0 15528 0 7364 0 1065539 0 0 0 Jeffrey S Heinle 815523 0 0 0 7742 0 15528 0 7364 0 846157 0 0 0 Bobby Alford 580 0 452358 0 769 0 0 0 0 0 453707 0 0 0 W Brinkley 133729 0 0 0 8531 0 8897 0 7364 0 158521 0 0 0 William Butler MD 139011 0 0 0 13409 0 9256 0 7364 0 169040 0 0 0 Susan Hamilton 412636 0 32144 0 3564 0 15528 0 7364 0 471236 0 0 0 Lisa Kennedy 0 0 330000 0 0 0 0 0 0 0 330000 0 0 0 Stephen Spann 480715 0 52334 0 44041 0 15507 0 7076 0 599673 0 0 0 R Caillouet 0 0 0 0 313998 0 0 0 0 0 313998 0 0 0 Hiram Gilbert PhD 282795 0 0 0 4191 0 15528 0 7364 0 309878 0 0 0 Kristi Cooper 268943 0 47960 0 536 0 15528 0 7364 0 340331 0 0 0 Tom Kleinworth 313835 0 0 0 3564 0 15528 0 7364 0 340291 0 0 0 N Kathuria 373082 0 45000 0 1051 0 15447 0 6214 0 440794 0 0 0 David E Wesson 612434 0 118823 0 3564 0 15528 0 7364 0 757713 0 0 0 Peter Traber former 0 0 0 0 850000 0 0 0 0 0 850000 0 0 0 Part I, Line 1a Part I, Line 1A: BAYLOR COLLEGE OF MEDICINE OFFERS A FACULTY CHILDREN'S SCHOLARSHIP PROGRAM FOR DEPENDENT CHILDREN OF ELIGIBLE FACULTY AND DESIGNATED STAFF EMPLOYEES. THE COLLEGE PAYS UP TO A MAXIMUM OF $4,500 ANNUALLY PER CHILD. A CHILD CAN RECEIVE A MAXIMUM OF FOUR (4) ANNUAL SCHOLARSHIP AWARDS. THE TOTAL ANNUAL BENEFIT AMOUNT IS $6,500 AND THE ENTIRE AMOUNT OF THIS BENEFIT IS TAXABLE TO THE EMPLOYEE. THE TOTAL REPRESENTS THE $4,500 PAYMENT TO THE CHILD'S COLLEGE AND AN ADDITIONAL $2,000 TO OFFSET THE FEDERAL INCOME TAXES. THIS ASSUMES THE ENTIRE $6,500 IS THE PAYMENT. IF THE BENEFIT IS REDUCED, THE INCOME TAX OFFSET IS REDUCED AS WELL. IN OTHER WORDS, $6,500 IS ADDED TO THE EMPLOYEE'S TAXABLE INCOME; THEREFORE, THE BENEFIT MAY AFFECT THE EMPLOYEE'S TAX BRACKET. Part I, Line 4a Peter Traber, a former president of Baylor College of Medicine, received a severance payment of $850,000. A HARRIS COUNTY CULTURAL EDUCATION FACILITIES FINANCE CORP 760337885 414008AA0 2008-08-27 251893440 REFUND BONDS ISSUED 6/11/99 AND 8/3/05 0 0 0 B HARRIS COUNTY CULTURAL EDUCATION COUNTY HEALTH FACILITIES FIN CORP 760337885 414008BL5 2012-09-06 364304718 REFUND PRIOR BOND ISSUES, SEE PART VI 0 0 0 A 81545000 251893440 16445049 2955947 27500 232464944 2006 1 0 1 1 B 364304718 3150117 48500 361106101 1 0 1 1 A 0 1 1 1 0 0.00000 0.00000 0.00000 1 0 0 B 0 1 1 1 0 0.00000 0.00000 0.00000 1 0 0 A 0 0 0 1 0 0 0 0 0 B 0 0 0 1 1 1 BarclaysMerrill Lynch 34.000000000000 0 0 0 0 0 A 0 B 0 Part I, Line B Baylor College of Medicine restructured its debt in September 2012. The 2008E bonds were refunded by the new 2012 taxable College bond series. The 1999A bonds were refunded by the new 2012A series. The 2007B bonds were refunded by the 2012A and 2012B series. The 2008A, B, C series bonds were refunded by the new 2012A, B, C series bonds. The 2007A1 and A2 bonds were refunded by the new 2012A series bonds. The 2008D bonds remained unchanged. Part IV, line 2c The arbitrage report was completed June 2012 and the rebate computations showed there was no liability due to the IRS. The arbitrage report for FY13 was completed in April 2014 showing no rebate due. Part IV, line 4b The variable rate debt is hedged with interest rate swaps, $105M with Barclays and $45M with Bank of America/Merrill Lynch. Dr Raye Lynn Alford See below 86638 See Part V below 0 Nathalie Kim Roff See below 47686 See Part V below 0 FORM 990, SCHEDULE L, PART IV SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS LINE 1(A) NAME OF PERSON: Dr. Raye Lyn Alford(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: She is the daugher of former officer Bobby AlfordLINE 2(A) NAME OF PERSON: Nathalie Kim Roff(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: She is the daughter-in-law of former trustee J. Hugh Roff, Jr. X 33 5429598 average of high and low X 3 18246312 average of high and low X med. devices 856 17896623 cost X in kind donations to fund raising events 13592 cost 8 0 1 1 Third Party Use: Part I, Line 32b: The College receives donations in the form of common stock and other publicly traded securities and has hired licensed brokers to sell these securities for the College. Form 990, Part VI, Section A, line 2 Family Relationships: Trustee Sally Anderson Clark and Trustee John Anderson, M.D. Business Relationships: Trustee Marc Shapiro and Trustee Greg Brenneman Trustee Bob McNair and Trustee Robert Underbrink Trustee Robert Underbrink and Bill Walker (VP & Chief Investment Officer of Baylor College of Medicine) Form 990, Part VI, Section A, line 7a The trustees shall be divided into two groups, one of such groups to be comprised of at least one fourth of the maximum number of trustees. The other such group to be comprised of the remainder of the number of trustees. The first group of trustees (25%) shall be elected by the Baylor University board and such board shall also determine the terms of office for such group. Form 990, Part VI, Section A, line 7b Certain assets owned by Baylor University and conveyed to BCM when Baylor University transferred assets to BCM have certain limitations as to use and Baylor University retained certain other rights described below. In addition, certain corporate actions require the prior approval of Baylor University. Any dissolution, merger, or consolidation must be approved by both a majority of the trustees of the corporation and a majority of the members of the board of trustees of Baylor University. No such plan of merger, consolidation, or dissolution shall be adopted unless such plan requires the assets to be transferred to the new entity which is a private, non-profit scientific or educational corporation, trust or association, or to some governmental agency or organization engaged in charitable, scientific, or educational activities. Form 990, Part VI, Section B, line 11 Line 11a explanation - A copy of Form 990 is provided to the organization's governing Board of Trustees for review and questions before filing. The Audit Committee reviews Form 990 to make sure it is complete before submitting it to the trustees for their approval. Management then presents Form 990 to the trustees and makes itself available to answer their questions. Form 990, Part VI, Section B, line 12c The President of the College appoints a Conflict of Interest Committee that has responsibility for administering and interpreting the policy. The Conflict of Interest Committee meets as often as its Chairman shall determine, and it periodically reports on its activities to the President, to the Academic Council, and to the Audit Committee of the Board of Trustees of the College. Any disclosures mandated under the policy are reviewed and disposed of in advance by the Conflict of Interest Committee and are reported periodically to the Audit Committee of the College's Board of Trustees. Decisions of the Committee may be appealed to the President of the College through the electronic conflict of interest disclosure system. Each officer, director, and trustee is required to read the policy,answer a questionnaire and sign the questionnaire annually. There will be an appropriate follow up if all of the questionnaires are not returned. The committee makes a good faith effort to obtain all of the signed questionnaires. The Audit Committee of the Board of Trustees (or a Subcommittee appointed by the Audit Committee) is responsible for administering the trustee policy. The committee utilizes forms by which trustees periodically verify that they are in compliance with the policy. Such forms are distributed as determined by the Committee, which normally will be once a year. All communications regarding disclosures and determinations of conflict of interest are maintained in confidence. Form 990, Part VI, Section B, line 15 Annually, the College hires a qualified independent compensation consultant to review and assess current compensation, and any proposed modifications, for the president and chief executive officer, other senior officers, chairs, deans, vice presidents and those employees earning over a certain dollar threshold. The Management Development and Compensation Committee of the Board of Trustees (the "MD&C Committee") reviews and, in reliance on, the report from the independent compensation consultant, which includes an opinion on the "reasonableness" and "fair market value" of proposed compensation, may modify the compensation for the president and chief executive officer. The committee documents the basis for its determination on such compensation concurrently with making the determination. Annually, the president and chief executive officer, after consulting the report from the qualified independent compensation consultant, may recommend changes to compensation for other senior officers, chairs, deans, vice presidents and those employees earning over a certain dollar threshold. The MD&C Committee reviews the president's recommendation and, in reliance on the report from the independent compensation consultant, that includes an opinion on the "reasonableness" and "fair market value" of proposed compensation, may modify the compensation for other senior officers, chairs, deans, vice presidents and those employees earning over a certain dollar threshold. The committee documents the basis for its determination on such compensation concurrently with making the determination. The process for determining and modifying compensation for the president and chief executive officer, other senior officers, chairs, deans, vice presidents and those employees earning over a certain dollar threshold, includes a review and assessment by a qualified independent compensation consultant, which assessment includes comparability data, that the MD&C Committee considers and relies on before setting/modifying compensation for the president and chief executive officer, other senior officers, chairs, deans, vice presidents and those employees earning over a certain dollar threshold. The MD&C Committee documents the basis for its determination concurrently with making the determination. Form 990, Part VI, Section C, line 19 The governing documents and conflict of interest policy are made available upon request. The audited financials are on the college's web site that is available to the public. FORM 990, PART VI, SECTION A, LINE 6 The organization does not have members per its articles of incorporation. Certain corporate actions require the prior approval of Baylor University. In addition, 25% of BCM's trustees serve at the pleasure of Baylor University. FORM 990, PART VI, SECTION A, LINE 1 The members of the executive committee of the Board of Trustees are chosen by the board and must be trustees. They shall not number less than seven members and at least one third of the number of members of the executive committee shall be necessary to constitute a quorum. Exceptions provided in the bylaws of Baylor College of Medicine, Section 2.13. They shall have and may exercise the authority of the Board of Trustees in the management of the corporation including, but without limitation, the authority to execute legal instruments with or without the corporate seal. Officers and trustees and related organizations FORM 990, Part VII I. Officers and trustees of Baylor College of Medicine (BCM) who serve on the board of BCM Technologies, Inc. Jack Little, Ph.D. - BCM Trustee Fred Lummis - BCM Trustee Kim David - BCM Officer William Walker - BCM key employee Adam Kuspa - BCM officer Paul Klotman, M.D.- BCM officer Each devoted one hour each week to their duties. II. BCM employees and their positions at Baylor International Pediatric Aids Initiative (BIPAI) Mark Kline, M.D. - BCM employee is President and Chairman of the Board Doug Spade - BCM employee is VP and CFO of BIPAI Michael Mizwa - BCM employee and Secretary of BIPAI Joseph Kanewske - BCM employee and Treasurer of BIPAI Robert Corrigan, Jr. - BCM employee and member of the Board Claire Bassett - BCM employee and member of the Board Each devoted one hour each week to their duties. III. BCM trustee, H. Ben Taub, is the president and chairman of the board of the Baylor Medical Foundation. He devoted 1 hour per week to these duties. Other Fees Form 990, Part IX, line 11g Services/Answering: Program service expenses 456,953. Management and general expenses 115,274. Fundraising expenses 0. Total expenses 572,227. Services/ Architect: Program service expenses 18,641. Management and general expenses 0. Fundraising expenses 0. Total expenses 18,641. Services/ Banking: Program service expenses 511,879. Management and general expenses 619,973. Fundraising expenses 0. Total expenses 1,131,852. Services/ Building maintenance: Program service expenses 155,810. Management and general expenses 2,283. Fundraising expenses 0. Total expenses 158,093. Services/ Outside billing: Program service expenses 2,506,738. Management and general expenses 16,027. Fundraising expenses 0. Total expenses 2,522,765. Services/ Catering/food: Program service expenses 1,853,200. Management and general expenses 169,001. Fundraising expenses 64,120. Total expenses 2,086,321. Subcontracts: Program service expenses 2,037,740. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,037,740. Services/ Consultation: Program service expenses 2,618,623. Management and general expenses 6,220,540. Fundraising expenses 1,000. Total expenses 8,840,163. Services/Software maintenance: Program service expenses 464,300. Management and general expenses 4,816,175. Fundraising expenses 2,840. Total expenses 5,283,315. Services/ Maintenance Contracts: Program service expenses 7,647,925. Management and general expenses 6,263,115. Fundraising expenses 0. Total expenses 13,911,040. Services/ Custodial: Program service expenses 190,254. Management and general expenses 237,215. Fundraising expenses 119. Total expenses 427,588. CCM Charges: Program service expenses 9,126,883. Management and general expenses 151,967. Fundraising expenses 0. Total expenses 9,278,850. Services/Electronic: Program service expenses 17,846. Management and general expenses 5,051. Fundraising expenses 0. Total expenses 22,897. Services/Electrical: Program service expenses 267,979. Management and general expenses 7,523. Fundraising expenses 0. Total expenses 275,502. Services/honorariums: Program service expenses 352,812. Management and general expenses 11,500. Fundraising expenses 500. Total expenses 364,812. Services/Service awards: Program service expenses 5,542. Management and general expenses 68,216. Fundraising expenses 4,050. Total expenses 77,808. Services/Hospital costs: Program service expenses 110,739. Management and general expenses 0. Fundraising expenses 0. Total expenses 110,739. Services/ Spec Serv Fac: Program service expenses 33,522,103. Management and general expenses 0. Fundraising expenses 0. Total expenses 33,522,103. Services/Laboratory analysis: Program service expenses 8,649,985. Management and general expenses 22,863. Fundraising expenses 0. Total expenses 8,672,848. Services/ Laundry: Program service expenses 333,551. Management and general expenses 2,434. Fundraising expenses 0. Total expenses 335,985. Services/ Library: Program service expenses 2,533,881. Management and general expenses 179. Fundraising expenses 0. Total expenses 2,534,060. Clincl Rsrch Off Supp: Program service expenses 28. Management and general expenses -20. Fundraising expenses 0. Total expenses 8. Services/Patent costs: Program service expenses 3,390. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,390. Services/Photographic: Program service expenses 187,574. Management and general expenses 10,545. Fundraising expenses 4,489. Total expenses 202,608. Services/Print Shop: Program service expenses 2,901. Management and general expenses 0. Fundraising expenses 2,047. Total expenses 4,948. Record Storage/Retriv: Program service expenses 286,659. Management and general expenses 20,918. Fundraising expenses 1,248. Total expenses 308,825. Environmental safety charges: Program service expenses 302,753. Management and general expenses -216,018. Fundraising expenses 0. Total expenses 86,735. Reimbursement salary/fringe: Program service expenses 1,167,908. Management and general expenses 833,908. Fundraising expenses 0. Total expenses 2,001,816. Services/Repairs: Program service expenses 935,846. Management and general expenses 133,249. Fundraising expenses 501. Total expenses 1,069,596. Services/Work Order: Program service expenses 3,012. Management and general expenses 7,071,874. Fundraising expenses 0. Total expenses 7,074,886. Subcontracts: Program service expenses 46,582,542. Management and general expenses 0. Fundraising expenses 0. Total expenses 46,582,542. Services/Transportation: Program service expenses 51,912. Management and general expenses 3,357. Fundraising expenses 0. Total expenses 55,269. Services/Temporary Help: Program service expenses 1,282,314. Management and general expenses 341,446. Fundraising expenses 8,352. Total expenses 1,632,112. Services/Transcription: Program service expenses 101,343. Management and general expenses 0. Fundraising expenses 0. Total expenses 101,343. Services/ Other: Program service expenses 33,874,015. Management and general expenses 14,020,064. Fundraising expenses 155,061. Total expenses 48,049,140. Remove expenses of services for fundraising events: Program service expenses 0. Management and general expenses 0. Fundraising expenses -196,107. Total expenses -196,107. FORM 990, PART IX, LINE 24e The negative amount in all other expenses is a book adjustment to expenses to correct a write off of the hospital in a prior year. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Expenses from Schedule K-1s of partnerships Absorb loss carryforward 162,826. Book/tax difference in the gain on the sale -205. Tax gain on a distribution of cash from a partnership in excess of basis -1,009,891. Flowthrough from MarsMcLean Trust Book/tax difference in distributions from Mars/McLean trust -3,545. Book/tax difference in income and deductions from partnership investments -6,015,681. Book/tax difference in income and deductions from BCM Trust -1,702,975. Affiliated Medical Services 1502 Taub Loop NPC Building B067 Houston TX 77030 760259042 Healthcare Delivery TX 501(c)(3) 11 type 1 Baylor College of Medicine 1 Baylor Medical Foundation One Baylor Plaza Houston TX 77030 741490000 Support Baylor College of Medicine TX 501(c)(3) 11 type 2 N/A 0 Baylor International Pediatric Aids Init One Baylor Plaza Houston TX 77030 202951275 Care for children with aids TX 501(c)(3) 11 type 1 Baylor College of Medicine 1 National Space Biomedical Research Institute One Baylor Plaza Houston TX 77030 760548799 Biomedical Research TX 501(c)(3) Line 7 Baylor College of Medicine 1 BCM Healthcare One Baylor Plaza Houston TX 77030 760481211 Healthcare delivery TX 501(c)(3) Line 3 Baylor College of Medicine 1 Baylor College of Medicine Radiology One Baylor Plaza Houston TX 77030 204258051 INACTIVE TX 501(c)(3) Line 3 Baylor College of Medicine 1 Baylor College of Medicine Pathology One Baylor Plaza Houston TX 77030 320161879 INACTIVE TX 501(c)(3) Line 3 Baylor College of Medicine 1 Allbritton-Alford Endowment Fund 4400 Post Oak Parkway Houston TX 77027 526934320 Supports research of Baylor College of Medicine TX 501(c)(3) 11 Type 1 Baylor College of Medicine 1 BCM Tech I LP 1709 Dryden 1700 Houston TX 77030 205541490 Investment TX Baylor College of Medicine excluded 248646 864538 0 0 0.37270 BCM Ventures Management LP 1709 Dryden Rd Houston TX 77030 205541357 Investment TX BCM Techno excluded 7218 124122 0 0 0.28680 COMMUNITY PATHOLOGY PLLC ONE BAYLOR PLAZA HOUSTON TX 77030 320167640 Inactive TX N/A N/A 0 0 BCM Technologies Inc 1709 Dryden Suite 1790 Houston TX 77030 760112935 Investment DE Baylor College of Medicine C -2329717 5442730 1.00000 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 1 BAYLOR MEDICAL FOUNDATION C 755703 GENERAL LEDGER BAYLOR MEDICAL FOUNDATION O 558240 GENERAL LEDGER BCM TECHNOLOGIES INC D 2462362 BALANCE SHEET BCM TECHNOLOGIES INC L 50000 GENERAL LEDGER BAYLOR MEDICAL FOUNDATION S 73581 GENERAL LEDGER BAYLOR INTERNATIONAL PEDIATRIC AIDS INITIATIVE S 63577 BALANCE SHEET BCM HEALTHCARE D 819484 BALANCE SHEET ALLBRITTON-ALFORD ENDOWMENT FUND C 35000 BANK RECORDS NATIONAL SPACE BIOMEDICAL RESEARCH INSTITUTE C 17649633 GENERAL LEDGER NATIONAL SPACE BIOMEDICAL RESEARCH INSTITUTE O 2391052 RECORDS BCM TECHNOLOGIES I LP R 248646 RECORDS