2013-05-15T17:25:39-05:00 2012-06-30 271728945 O'CONNOR DAVIES LLP 500 MAMARONECK AVENUE HARRISON NY 105281633 990 2011-07-01 133665796 HEARTSONG INC HEAR 9148725227 ONE SUMMIT AVENUE WHITE PLAINS NY 10606 MARION ANDERSON 9148725227 2013-05-15 1 GARRETT HIGGINS P00543209 9143818900 2013-05-14 2011 2016-02-24 21:20:13Z MARY KOWARICK ONE SUMMIT AVENUE WHITE PLAINS NY 10606 500663 0 X WWW.HEARTSONG.ORG X 1992 NY SEE SCHEDULE O 8 8 44 38 0 0 332657 299400 156320 153653 120 8 -23019 11804 466078 464865 83434 110526 0 0 331445 273797 0 0 16819 174359 200453 589238 584776 -123160 -119911 162784 72410 98434 127971 64350 -55561 X HEARTSONG'S MISSION IS TO PROVIDE CLINICALLY-BASED MUSIC AND ART THERAPY PROGRAMS THAT SEEK TO ENHANCE THE FUNCTIONING LEVEL AND QUALITY OF LIFE FOR CHILDREN WITH SPECIAL NEEDS AND THEIR FAMILIES. LOCATED IN WESTCHESTER COUNTY, NEW YORK, BUT DRAWING CHILDREN FROM THROUGHOUT THE NEW YORK METROPOLITAN AREA, HEARTSONG PROVIDES ITS PROGRAM SERVICES ON SATURDAYS FROM SEPTEMBER TO JUNE AT WESTCHESTER SCHOOL 29 IN YONKERS AND AT GOOD COUNSEL ACADEMY ELEMENTARY SCHOOL IN WHITE PLAINS. OUR OUTREACH PROGRAMS, VOLUNTEER OPPORTUNITIES AND FAMILY SUPPORT SERVICES ARE AVAILABLE THROUGHOUT THE CALENDAR YEAR. THOSE WHO BENEFIT THE MOST FROM OUR PROGRAMS AND SERVICES ARE THOSE FAMILIES WHOSE CHILDREN HAVE BEEN DIAGNOSED WITH AUTISM, CEREBRAL PALSY, DOWN SYNDROME, DEVELOPMENTAL DELAYS, AND MULTIPLE DISABILITIES. HEARTSONG MEETS A CRITICAL NEED FOR COMMUNITY-BASED ART AND MUSIC THERAPY FOR THESE SPECIAL NEEDS CHILDREN. 0 0 207784 153653 HEARTSONG'S CORE PROGRAM OF ART AND MUSIC THERAPY IS OFFERED ON SATURDAYS, FROM SEPTEMBER THROUGH JUNE, AT TWO LOCATIONS, FAMILY SERVICES OF WESTCHESTER IN WHITE PLAINS AND WESTCHESTER HILLS SCHOOL P.S. 29 IN YONKERS. WE PROJECT SERVING 150 CHILDREN THIS YEAR, WITH TWELVE THERAPISTS AND THIRTY VOLUNTEERS. OUR CADRE OF VOLUNTEERS MAINTAINS THE QUALITY OF THE PROGRAM AND KEEPS CHILD-TO-STAFF RATIOS LOW. MUSIC AND ART THERAPY HAVE BEEN SHOWN TO ENHANCE FUNCTIONING LEVEL AND QUALITY OF LIFE FOR CHILDREN. WHEN DELIVERED IN A CLINICAL SETTING, UNDER THE DIRECTION OF A TEAM OF THERAPISTS, ART AND MUSIC THERAPY ARE KNOWN TO IMPROVE ATTENTION SPAN, SPEECH AND LANGUAGE DEVELOPMENT, FINE AND GROSS MOTOR SKILLS, SELF-ESTEEM AND SELF-CONFIDENCE. INDIVIDUALS ARE ENCOURAGED TO INCREASE:- USE OF VOCALIZED SOUNDS FOR THE PURPOSE OF COMMUNICATION- ABILITY TO MAINTAIN FOCUS ON A GIVEN TASK AND DISPLAY INTEREST IN PEER PARTICIPATION- ABILITY TO CHOOSE TO DEFER GRATIFICATION FOR THE GREATER GOOD- AWARENESS OF THE IMPACT OF ONE'S BEHAVIOR ON OTHERS- AWARENESS OF THE IMPACT OF ONE'S EMOTIONAL SELF-EXPRESSION ON OTHERS- ENGAGEMENT IN RECIPROCAL/COOPERATIVE INTERACTIONS WITH OTHERSBRIAN L. OF IRVINGTON (WESTCHESTER COUNTY), NY, HAS BEEN A HEARTSONG PARTICIPANT FOR 16 YEARS, SINCE HE WAS THREE. HE SUFFERS FROM PRADER-WILLI SYNDROME, A RARE, CONGENITAL DISORDER THAT RESULTS IN A NUMBER OF PHYSICAL, MENTAL AND BEHAVIORAL PROBLEMS. BRIAN EXPERIENCES A CONSTANT CRAVING FOR FOOD, A KEY FEATURE OF THE SYNDROME. OTHER SIGNS INCLUDE LEARNING DISABILITIES, DELAYED MOTOR DEVELOPMENT AND SPEECH PROBLEMS.ACCORDING TO BRIAN'S MOTHER, "HEARTSONG HAS EVOLVED INTO AN OASIS OF CALM AND ACCEPTANCE FOR HIM...A FRIENDLY, SAFE HAVEN WHERE HE CONNECTS WITH PEERS AND THERAPISTS WHO ARE KIND AND NURTURING. BRIAN HAS SHOWN US HOW MUSIC IS ANOTHER WAY TO REACH HIM...HEARTSONG MOTIVATES HIM TO BE SPONTANEOUS WITH VARIOUS FORMS OF MUSIC. BRIAN IS NOW 19, AND TO SEE HIM WALK ARM-IN-ARM WITH THE THERAPISTS CONFIRMS THAT HIS HEARTSONG TIES SUSTAIN HIM."PARENT SUPPORTPARENTS DO NOT DROP OFF THEIR CHILDREN FOR THE SATURDAY PROGRAM, BUT STAY AT THE SITES FOR WORKSHOPS AND MUTUAL SUPPORT. CAREGIVERS' CONCERNS ARE ADDRESSED IN AN ENVIRONMENT THAT PROMOTES LEARNING AND HELPS PARENTS WORK THROUGH THEIR CHILDREN'S VARIOUS DEVELOPMENTAL CHANGES AND OTHER CHALLENGES. SPECIFIC TOPICS SUCH AS MANAGING BEHAVIOR, PUBERTY AND STRESS MANAGEMENT HAVE BEEN COVERED IN THE PAST.HEARTSTARS FOR SIBLINGSHEARTSTARS IS A PROGRAM IN ITS THIRD YEAR FOR THE SIBLINGS OF HEARTSONG CHILDREN. THEY MEET EACH MONTH TO SHARE EXPERIENCES AND HAVE FUN. IT IS BASED ON SIB SHOPS, A NATIONAL EFFORT FOCUSED ON THE LIFE-LONG CONCERNS OF THE BROTHERS AND SISTERS OF PEOPLE WHO HAVE SPECIAL HEALTH, DEVELOPMENTAL OR MENTAL HEALTH NEEDS. SUMMER PROGRAMSIX WEEKS OF ART THERAPY WERE OFFERED IN SUMMER, 2012 TO 50 CHILDREN AT THE WHITE PLAINS SITE. THIS NEW PROGRAM WAS WELL-RECEIVED, AND WILL BE OFFERED AGAIN DURING SUMMER 2013.PROGRAM EVALUATIONMULTIPLE EVALUATION TOOLS TRACK THE SUCCESS OF HEARTSONG'S PROGRAMS. THESE INCLUDE 1) COMPREHENSIVE TREATMENT PLANS AND WEEKLY PROGRESS NOTES WITH FORMAL/INFORMAL REVIEWS BUILT INTO THE NINE-MONTH PROGRAM; 2) PARENT CONFERENCES TO REVIEW THE TREATMENT GOALS AND DISCUSS THE CHILD'S PROGRESS; 3) SURVEYS THAT PARENTS COMPLETE AT THE END EACH YEAR TO CAPTURE THEIR LEVEL OF SATISFACTION, THE CHANGES THEY HAVE SEEN IN THEIR CHILD AND THEIR INPUT FOR IMPROVING THE PROGRAM; AND 4) PERIODIC REVIEWS WITH THE BOARD OF DIRECTORS. 5604 HEARTSONG CURRENTLY PARTNERS WITH COMMUNITY-BASED AGENCIES IN THE TRI-STATE AREA TO PROVIDE THE BENEFITS OF MUSIC AND/OR ART THERAPY SERVICES TO CHILDREN WITH SPECIAL NEEDS. WE HAVE APPROACHED EACH OF THESE PARTNERSHIPS ACKNOWLEDGING IN EACH A UNIQUE SET OF CHALLENGES THAT DEMAND SENSITIVITY AND ACCOMMODATION TO DIFFERENCES OF CULTURE, PROTOCOL, STYLE, AND SOCIAL NORMS. SINCE ITS INCEPTION, HEARTSONG HAS RECOGNIZED THE NEED FOR THE AVAILABILITY OF CREATIVE ARTS THERAPY SERVICES BEYOND THE CONFINES OF THE HOSPITALS AND CLINICS WHERE THESE PIONEERING THERAPY MODELS WERE FIRST CONCEIVED AND DEVELOPED SOON AFTER THE SECOND WORLD WAR. TODAY, WITH THE CLOSING OF MORE LARGE HOSPITALS AND THE "MAINSTREAMING" OF A GREATER NUMBER CHILDREN WITH SPECIAL NEEDS, COMES A GREATER NEED FOR THE DELIVERY OF SERVICES TO PEOPLE WHERE THEY LIVE, IN THEIR SCHOOLS, AND AT AFTER-SCHOOL PROGRAMS WHERE THEY PLAY. 110526 110526 ART AND MUSIC THERAPY ARE NOT USUALLY COVERED BY PRIVATE OR PUBLIC INSURANCE IF PROVIDED OUTSIDE OF AN INSTITUTIONAL SETTING, SUCH AS A REHABILITATION HOSPITAL. HEARTSONG IS COMMITTED TO MAKING ITS PROGRAMS AVAILABLE REGARDLESS OF A FAMILY'S ABILITY TO PAY. THE FEE STRUCTURE ENSURES THAT ALL FAMILIES RECEIVE SOME FINANCIAL ASSISTANCE, FROM PARTIAL TO TOTAL AID. BASED ON INCOME, MORE THAN 40% OF THE CHILDREN SERVED RECEIVED THERAPY AT NO COST TO THEIR FAMILIES THIS PAST YEAR. 323914 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 5 0 44 1 0 0 0 0 0 1 1 0 0 0 0 X 8 8 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 0 0 NY X X GEOFF BARSKY FAMILY SERVICES OF WESTCHESTER 9149372320 ONE GATEWAY PLAZA PORTCHESTER NY 10573 MARY KOWARICK CHAIRPERSON 1.00 X X 0 0 0 ELIZABETH M BARNHARD 1.00 X X 0 0 0 SUSAN VARSAMES 1.00 X X 0 0 0 JUDITH MCNATT 1.00 X X 0 0 0 KIM BRENNAN 1.00 X 0 0 0 DAVID P KATZ 1.00 X 0 0 0 ELIZABETH MORSE LEVINE 1.00 X 0 0 0 LINDLEY THOMASSET 1.00 X X 0 0 0 MICHAEL J FORMISANO 1.00 X X 0 0 0 BRIAN ALLEN 1.00 X 0 0 0 CHARLENE COYNE 1.00 X 0 0 0 MARION ANDERSON 35.00 X 89085 0 0 89085 0 0 0 0 0 0 0 62494 52905 184001 299400 MUSIC AND ART THERAPY 900099 153653 153653 153653 8 8 47602 62494 35798 11804 11804 464865 153653 0 11812 110526 110526 78273 78273 167477 143301 24176 921 921 27126 8391 18735 1285 1285 8500 8500 88393 18450 60763 9180 1268 1268 18927 804 18123 47903 36626 11277 185 185 177 177 5816 5816 17138 17138 MISCELLANEOUS 7033 662 6371 BAD DEBT 3828 3828 584776 323914 244043 16819 64914 0 37309 46467 64148 2361 3039 45324 40872 10268 4452 1465 771 162784 72410 98434 70136 100 35000 0 22735 98434 127971 X 64350 -55561 64350 -55561 162784 72410 -119911 0 X X 0 1 1 X 0 X 220442 490915 352633 332657 299400 1696047 220442 490915 352633 332657 299400 1696047 139047 1557000 3909 1740 487 120 8 6264 8416 8416 1710727 753469 0.91010 0.88590 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 45324 40872 4452 4452 CASH OVERDRAFT 22735 22735 464865 584776 -119911 -119911 393164 38825 38825 354339 110526 110526 464865 513075 38825 38825 474250 110526 110526 584776 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: HEARTSONG RECOGNIZES THE EFFECT OF TAX POSITIONS ONLY WHEN THEY ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT HEARTSONG HAS NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. HEARTSONG IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO JUNE 30, 2009. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS NETTED AGAINST REVENUE 110,526. PART XIII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS NETTED AGAINST REVENUE 110,526. ART OF GIVING 110096 62494 47602 25435 1750 8613 110096 62494 47602 25435 1750 8613 35798 11804 1 SCHOLARSHIPS 228 110526 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: HEARTSONG IS COMMITTED TO MAKING ITS PROGRAMS AVAILABLE REGARDLESS OF A FAMILY'S ABILITY TO PAY. THE FEE STRUCTURE ENSURES THAT ALL FAMILIES RECEIVE SOME FINANCIAL ASSISTANCE, FROM PARTIAL TO TOTAL AID. IN ORDER TO RECEIVE AID, EACH FAMILY MUST SUBMIT THEIR MOST RECENT INCOME TAX. WE BASE OUR FEES ON THE CLIENTS ADJUSTED GROSS INCOME. FEE SCHEDULE AS BELOW: TIER INCOME YEARLY FEE SEMESTER FEE PER SESSION TIER 1 $0 - $39,999 NO FEE NO FEE NO FEE TIER 2 $40,000-$54,999 $336 $168 $12.00 TIER 3 $55,000-$74,999 $504 $252 $18.00 TIER 4 $75,000-$99,000 $672 $336 $24.00 TIER 5 $100,000-$149,999 $840 $420 $30.00 TIER 6 $150,000-$199,999 $504 $504 $36.00 TIER 7 $200,000 PLUS $1,344 $672 $48.00 WE ESTIMATE THE COST PER CHILD FOR 28 WEEKS OF MUSIC OR ART THERAPY TO BE ABOUT $2,000. BASED ON THE ABOVE SCALE, NO FAMILY PAYS MORE THAN $1,200. IN ORDER TO MONITOR THE USE OF THE FUNDS, THE ORGANIZATION OFFERS THE INDIVIDUALS WHO ARE ELIGIBLE FOR THE AID THE REDUCED FEE RATE. THIS ENSURES THAT THE AID IS USED FOR THE PROGRAMS THE CHILD IS ATTENDING AT HEARTSONG. MARION ANDERSON FUND ORGANIZATION'S OPERATIONS X 35000 35000 0 0 1 35000 ORGANIZATION MISSION STATEMENT FORM 990, PART I, LINE 1 HEARTSONG WAS ESTABLISHED IN 1992 BY THE PARENTS OF A CHILD WITH CEREBRAL PALSY AND HAS SERVED MORE THAN 1,200 CHILDREN SINCE ITS INCEPTION. OUR MISSION IS TO PROVIDE CLINICALLY-BASED MUSIC AND ART THERAPY PROGRAMS THAT SEEK TO ENHANCE THE FUNCTIONING LEVEL AND QUALITY OF LIFE FOR CHILDREN WITH SPECIAL NEEDS AND THEIR FAMILIES. HEARTSONG SERVES WESTCHESTER COUNTY, AS WELL AS NEIGHBORING COUNTIES AND THE BRONX. CLIENTS SERVED RANGE IN AGE FROM FOUR TO TWENTY-ONE YEARS OF AGE AND HAVE DISABILITIES SUCH AS AUTISM, CEREBRAL PALSY, MENTAL RETARDATION, MULTIPLE DEVELOPMENTAL DELAYS, AND DOWNS SYNDROME. FIFTY-TWO PERCENT OF THOSE ENROLLED IN HEARTSONG HAVE A DIAGNOSED AUTISM SPECTRUM DISORDER. HEARTSONG'S INNOVATIVE GROUP FORMAT IMPROVES EACH PARTICIPANT'S SOCIAL SKILLS WHILE REDUCING ISOLATION OFTEN FELT BY THESE CHILDREN. HEARTSONG ALSO SEEKS TO ADDRESS THE UNMET NEEDS OF SEGMENTS WITHIN THE POPULATION IT SERVES. PROGRAMS HAVE BEEN INITIATED OR ARE IN PLANNING STAGES FOR PRE-SCHOOLERS AND ADOLESCENT CLIENTS. THESE INCLUDE "MOMMY AND ME" SESSIONS FOR CHILDREN UNDER AGE FIVE, A COLLABORATION WITH THE SCHOOLHOUSE THEATER IN CROTON, NEW YORK, FOR OLDER ADOLESCENTS AND A PILOT DANCE THERAPY PROJECT WITH THE GRADUATE DANCE PROGRAM OF SARAH LAWRENCE COLLEGE IN BRONXVILLE. IN 2010, HEARTSONG REALIZED A PARTNERSHIP WITH FAMILY SERVICES OF WESTCHESTER, A NOT-FOR-PROFIT DEDICATED TO STRENGTHENING AND SUPPORTING FAMILIES, CHILDREN AND INDIVIDUALS THROUGH ALL STAGES OF THE LIFE CYCLE. THIS COLLABORATION ALLOWS HEARTSONG TO INCREASE ITS IMPACT BY ADDING WEEKDAY SESSIONS AND ADDRESSING THE NEEDS OF TEENS THAT "AGE OUT" OF ITS CORE SERVICES. NOW FAMILIES CAN FIND THE MULTIPLE SERVICES THEY NEED IN ONE, SHARED LOCATION. FORM 990, PART VI, SECTION A, LINE 3 HEARTSONG, INC. OUTSOURCES ITS ACCOUNTING SERVICES TO FAMILY SERVICES OF WESTCHESTER, INC. FORM 990, PART VI, SECTION B, LINE 11 HEARTSONG, INC. HAS ITS FORM 990 PREPARED BY AN OUTSIDE ACCOUNTING FIRM AND HAS ESTABLISHED THE FOLLOWING REVIEW PROCESS TO ENSURE THAT THE INFORMATION REPORTED IS COMPLETE AND ACCURATE. WHEN THE FORM 990 HAS BEEN PREPARED, REVIEWED BY MANAGEMENT AND IS READY TO BE FILED WITH THE INTERNAL REVENUE SERVICE, IT IS ELECTRONICALLY SENT TO THE BOARD MEMBERS OF THE ORGANIZATION FOR ANY COMMENTS. ANY COMMENTS ARE THEN GROUPED, SUMMARIZED AND PROVIDED TO THE OUTSIDE ACCOUNTANTS. EACH ISSUE IS DOCUMENTED AND ADDRESSED UNTIL THE RETURN IS FINALIZED AND APPROVED FOR FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS APPLICABLE TO EMPLOYEES, BOARD MEMBERS, AND OFFICERS OF THE ORGANIZATION. IF AN INTERESTED PERSON BECOMES AWARE OF A POTENTIAL OR ACTUAL CONFLICT, THEY MUST DICLOSE THIS IMMEDIATELY. AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE OR SHE SHALL LEAVE THE MEETING OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY OF HEARTSONG IN WHICH THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING MEMBERS OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. IF THE BOARD OF DIRECTORS TAKES ACTION CONCERNING A FINANCIAL TRANSACTION OR ARRANGEMENT PREVIOUSLY REVIEWED BY A COMMITTEE OR AUTHORIZED BODY, THE BOARD SHALL MAKE ITS OWN DETERMINATION OR AFFIRM THE DETERMINATION OF THE COMMITTEE OR AUTHORIZED BODY AS TO WHETHER A CONFLICT OF INTEREST EXISTS. A. INTERESTED PERSONS SHALL COUNT TOWARD THE PRESENCE OF A QUORUM AT MEETINGS OF BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY OF HEARTSONG NOTWITHSTANDING THAT INTERESTED PERSONS MAY NOT DELIBERATE OR VOTE ON A DETERMINATION OF WHETHER A CONFLICT OF INTEREST EXISTS OR ON A FINANCIAL TRANSACTION OR ARRANGEMENT IN WHICH THEY HAVE A FINANCIAL INTEREST. B. NOTWITHSTANDING ANY OTHER PROVISIONS OF HEARTSONG'S BY-LAWS, VOTES ON CONFLICTS OF INTEREST AND FINANCIAL TRANSACTIONS OR ARRANGEMENTS SHALL BE DETERMINED BY THE SAME PERCENTAGE OF THE DISINTERESTED PERSONS PRESENT AT A MEETING AS WOULD BE REQUIRED BY THE BY-LAWS OF HEARTSONG FOR ACTION BY THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY, UNLESS A DIFFERENT PERCENTAGE IS REQUIRED BY STATUTE. WHEN A CONFLICT OF INTEREST IS DETERMINED TO EXIST: A. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE MEETING OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY OF HEARTSONG, BUT AFTER SUCH PRESENTATION AND ANY DISCUSSION WITH THE INTERESTED PERSON, HE OR SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE FINANCIAL TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. B. THE CHAIRPERSON OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY SHALL, IF HE OR SHE DEEMS IT APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE OF DISINTERESTED PERSONS TO INVESTIGATE ALTERNATIVES TO THE PROPOSED FINANCIAL TRANSACTION OR ARRANGEMENT. C. ONLY DISINTERESTED PERSONS UNRELATED TO AND NOT SUBJECT TO THE CONTROL OF THE INTERESTED PERSON MAY VOTE ON THE FINANCIAL TRANSACTION OR ARRANGEMENT. D. PRIOR TO VOTING ON THE FINANCIAL TRANSACTION OR ARRANGEMENT, THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY SHALL OBTAIN APPROPRIATE DATA AS TO COMPARABILITY. E. THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY SHALL DOCUMENT THE BASIS FOR ITS DETERMINATION AS TO THE FINANCIAL TRANSACTION OR ARRANGEMENT CONCURRENTLY WITH MAKING THE DETERMINATION, AS SET FORTH IN SECTION 5 OF ARTICLE III OF THE POLICY AND PROCEDURES. F. IF A FINANCIAL TRANSACTION OR ARRANGEMENT INCLUDES A NON-FIXED PAYMENT (SUCH AS A DISCRETIONARY BONUS), THERE SHALL BE A SPECIFIED CAP ON THE AMOUNT OF THE NON-FIXED PAYMENT AND THE FINANCIAL TRANSACTION OR ARRANGEMENT AND ITS COMPARABILITY SHALL BE CONSIDERED ON THE BASIS OF THE MAXIMUM AMOUNT PAYABLE. FAILURE TO DISCLOSE CONFLICTS OF INTEREST: A. IF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY OF HEARTSONG OR AN ENTITY CONTROLLED BY HEARTSONG HAS REASONABLE CAUSE TO BELIEVE THAT A DISQUALIFIED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL INFORM THE DISQUALIFIED PERSON OF THE BASIS FOR SUCH BELIEF AND AFFORD THE DISQUALIFIED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. B. IF, AFTER HEARING THE RESPONSE OF THE DISQUALIFIED PERSON AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY DETERMINES THAT THE DISQUALIFIED PERSON HAS, IN FACT, FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. C. THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY SHALL MAKE A WRITTEN RECORD, IN ITS MINUTES OR OTHERWISE, OF ITS REASON TO BELIEVE THAT A DISQUALIFIED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, THE COMMUNICATIONS BETWEEN IT AND THE DISQUALIFIED PERSON CONCERNING THE ALLEGED FAILURE TO DISCLOSE, AND ITS DETERMINATION AND ANY ACTION TAKEN REGARDING THE ALLEGED FAILURE TO DISCLOSE. THE MINUTES OF THE BOARD OF DIRECTORS, EACH COMMITTEE WITH BOARD-DELEGATED POWERS, AND EACH AUTHORIZED BODY OF HEARTSONG OR AN ENTITY CONTROLLED BY HEARTSONG SHALL CONTAIN: (I) THE NAMES OF THE PERSONS WHO DISCLOSED OR OTHERWISE WERE FOUND TO HAVE A FINANCIAL INTEREST IN CONNECTION WITH AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, THE NATURE OF THE FINANCIAL INTEREST, ANY ACTION TAKEN TO DETERMINE WHETHER A CONFLICT OF INTEREST WAS PRESENT, AND THE DECISION OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY AS TO WHETHER A CONFLICT OF INTEREST, IN FACT, EXISTED; AND (II) THE NAMES OF THE PERSONS WHO WERE PRESENT FOR DISCUSSIONS AND VOTES RELATING TO THE FINANCIAL TRANSACTION OR ARRANGEMENT, A SUMMARY OF THE DISCUSSION, INCLUDING ANY ALTERNATIVES TO THE PROPOSED FINANCIAL TRANSACTION OR ARRANGEMENT, AND A RECORD OF ANY VOTES TAKEN IN CONNECTION THEREWITH. B. DOCUMENTATION OF THE BASIS FOR EACH DETERMINATION BY THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY CONCERNING THE FINANCIAL TRANSACTIONS OR ARRANGEMENTS WITH INTERESTED PERSONS SHALL INCLUDE THE FOLLOWING: (I) THE TERMS OF THE APPROVED FINANCIAL TRANSACTION OR ARRANGEMENT AND THE DATE APPROVED; (II) THE DIRECTORS OR THE OTHER MEMBERS OF AN AUTHORIZED BODY WHO WERE PRESENT DURING THE DEBATE ON THE FINANCIAL TRANSACTION OR ARRANGEMENT THAT WAS APPROVED AND THOSE WHO VOTED ON IT; AND (III) THE COMPARABILITY DATA OBTAINED AND RELIED UPON BY THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY AND HOW THE DATA WAS OBTAINED. C. DOCUMENTATION OF THE BASIS FOR THE DETERMINATION BY THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY CONCERNING THE FINANCIAL TRANSACTIONS OR ARRANGEMENTS WITH INTERESTED PERSONS SHALL BE COMPLETED NO LATER THAN THE NEXT MEETING OF THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY OR SIXTY (60) DAYS AFTER THE DETERMINATION, WHICHEVER IS SOONER. DOCUMENTATION OF THE BASIS FOR THE DETERMINATION BY THE BOARD OF DIRECTORS, COMMITTEE OR AUTHORIZED BODY CONCERNING THE FINANCIAL TRANSACTIONS OR ARRANGEMENTS WITH INTERESTED PERSONS MAY BE RECORDED BY COMPLETING A CHECKLIST FOR COMPENSATION OR A CHECKLIST FOR PROPERTY, AS APPLICABLE, IN SUBSTANTIALLY THE FORM INCLUDED IN APPENDIX A OF THE POLICY AND PROCEDURES. EACH DIRECTOR, OFFICER AND MANAGEMENT EMPLOYEE OF HEARTSONG, EACH MEMBER OF A COMMITTEE WITH POWERS DELEGATED BY THE BOARD OF DIRECTORS OF HEARTSONG OR AN ENTITY CONTROLLED BY HEARTSONG, AND EACH MEMBER OF AN AUTHORIZED BY HEARTSONG OR AN ENTITY CONTROLLED BY HEARTSONG SHALL SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON: (I) HAS RECEIVED A COPY OF HEARTSONG'S POLICY AND PROCEDURE ON CONFLICT OF INTEREST; (II) HAS READ AND UNDERSTANDS THE POLICY AND PROCEDURES; (III) HAS AGREED TO COMPLY WITH THE POLICY AND PROCEDURES; AND (IV) UNDERSTANDS THAT HEARTSONG IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION, IT MUST ENGAGE PRIMARILY IN ACTIVITIES THAT ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. B. EACH DIRECTOR, OFFICER AND MANAGEMENT EMPLOYEE OF HEARTSONG SHALL COMPLETE, SIGN AND SUBMIT ANNUALLY TO THE SECRETARY A CONFLICT OF INTEREST ANNUAL STATEMENT. FORM 990, PART VI, SECTION B, LINE 15A THE SALARY OF THE EXECUTIVE DIRECTOR WAS DETERMINED BY THE BOARD AT HER HIRE DATE IN FEBRUARY 2008. IN THE FALL OF 2008, THE EXECUTIVE DIRECTOR'S SALARY WAS CUT BY 15% DUE TO ECONOMIC CONDITIONS. IN HER EMPLOYMENT CONTRACT IT STATES THAT THERE COULD BE THE POSSIBILITY OF A BONUS PAID BASED ON PERFORMANCE, BUT IT WAS DEPENDENT ON THE FINANCIAL CONDITION OF THE ORGANIZATION AT THAT TIME. IN NOVEMBER 2010, THE BOARD VOTED TO AWARD THE DIRECTOR A BONUS OF $10,000 BASED ON HER PERFORMANCE. THE EXECUTIVE COMMITTEE CONSULTED WITH THE ADVISORY BOARD ON INCENTIVE BONUSES FOR EXECUTIVE DIRECTORS AT COMPARABLE ORGANIZATIONS. IN ADDITION, THE COMMITTEE REVIEWED OTHER FORM 990'S FROM SIMILAR ORGANIZATIONS, AND COMPENSATION STUDIES DONE BY OTHER ORGANIZATIONS (SUCH AS CHARITY NAVIGATOR, GUIDESTAR, ETC). BASED ON THE BOARD'S REVIEW, THE BOARD APPROVED A BONUS OF $10,000 IN ADDITION TO THE EXECUTIVE DIRECTOR'S ANNUAL SALARY. THE APPROVAL WAS DOCUMENTED IN THE MINUTES TO THE EXECUTIVE COMMITTEE MEETING. AT THE SUBSEQUENT BOARD MEETING, THE BONUS RECOMMENDATION WAS MADE TO THE FULL BOARD BY THE EXECUTIVE COMMITTEE. IT WAS APPROVED AND DOCUMENTED IN THE MINUTES TO THAT BOARD MEETING. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE BY POSTING IT ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST OR BY CALLING THE ORGANIZATION DIRECTLY. FORM 990, PART XII, LINE 2C THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS DID NOT CHANGE FROM THE PRIOR YEAR.