2012-08-14T18:26:56-05:00 2011-09-30 ERNST & YOUNG US LLP 18111 VON KARMAN AVENUE SUITE 1000 IRVINE CA 92612 990 2010-10-01 953432210 Beckman Research Institute of the City of Hope BECK 6269305445 1450 East Duarte Road Duarte CA 91010 MICHAEL A FRIEDMAN 2012-07-23 9497942300 2010 2016-02-24 21:20:13Z Michael A Friedman MD 1500 EAST DUARTE ROAD DUARTE CA 91010 535951094 false X www.cityofhope.org X 1979 CA SHORTEN THE TIME FROM RESEARCH IDEA TO TREATMENT, QUICKLY BRINGING CURES TO PATIENTS WHO NEED THEM. MEDICAL & BIOMEDICAL RESEARCH & DISEASE INVESTIGATION, DNA SYNTHESIS AND CELL ANALYSIS. 6 5 950 5 95542 0 231881784 222732581 2358833 6092754 18280811 22087494 1071572 5063769 253593000 255976598 0 0 0 0 94729404 99899417 0 0 2708098 124186939 139800932 218916343 239700349 34676657 16276249 739833649 725117069 102893337 103792908 636940312 621324161 X SEE SCHEDULE O false false 209505748 11060981 BIOMEDICAL RESEARCH AND DISEASE INVESTIGATIONS, INCLUDING DNA SYNTHESIS AND CELL ANALYSIS. SEE SCHEDULE O. 209505748 true true false true false false false false true true true false false true true false true false false true false false false false false false false false true true false false false false false true false false true false false false false false false true true true false false true 333 0 true 950 true true true true VI CJ false false false false false false false false X 6 5 false false true false true true true true true false false false true true true true true true true false CA X WAEL FAKHRYCITY OF HOPE 6263018815 1500 EAST DUARTE ROAD DUARTE CA 91010 X Ben Horowitz 3.0 X 0 110000 0 Elliott Rosman 3.0 X 0 0 0 Ernie So 3.0 X 0 0 0 Gary E Freedman 3.0 X 0 0 0 Iris Rothstein 3.0 X 0 0 0 John J Rossi 60.0 X 316427 0 57905 Benham Badie MD 3.0 X 0 0 0 Dennis F Rusch 14.0 X 0 733178 195682 Gary Conner 14.0 X 0 0 0 Gregory Schetina 14.0 X 0 455243 50556 Michael A Friedman MD 24.0 X 0 1385958 48190 Richard Jove 60.0 X 767601 0 37978 Robert Stone 6.0 X 0 695787 46207 Valerie Bingham 14.0 X 0 219472 36126 Virginia Opipare 14.0 X 0 768395 32028 Larry A Couture 60.0 X 402898 0 33190 Robert Powell 60.0 X 493620 27360 34072 David Horne 60.0 X 387060 0 58890 Gerd Pfeifer 60.0 X 261133 0 51403 John Shively 60.0 X 260242 0 46631 Leslie Bernstein 60.0 X 320000 0 52868 Richard Ermel 60.0 X 290460 0 58728 Theodore G Krontiris PhD 60.0 X 266201 0 58825 Susan E Kane 60.0 X 239501 0 51544 4005143 4395393 950823 116 true true false DPR Construction Inc 101 East Green Street Suite 14 PASADENA CA 91105 Construction Mgmt 11646898 RMG Building Inc 20653 Lycoming Street Suite A-1 WALNUT CA 91789 Construction Mgmt 767404 Angeles Investment Advisors LLC 429 Santa Monica Blvd Suite 500 SANTA MONICA CA 904013424 Investment Advisors 831372 Sangamo Biosciences Inc Pnt Richmond Tech Ctr II501 Canal RICHMOND CA 94804 Research Services 760094 University of Southern California 3720 S Flower Street LOS ANGELES CA 900894019 Research Services 671992 18 156895786 61593974 4242821 222732581 OTHER RESEARCH ACTIVITIES 541900 5376458 5376458 ACADEMIC STAFF REVENUE 541900 582297 582297 RENTAL INCOME - PROGRAM SERVICE 541900 133999 133999 6092754 9307534 9307534 0 2855003 2855003 292754456 279974496 12779960 12779960 12779960 0 0 0 LEGAL SETTLEMENT 900099 2000000 2000000 INVESTMENT INCOME FROM K-1'S 525990 95542 95542 OTHER INCOME 900099 113224 113224 2208766 255976598 11060981 95542 22087494 0 0 0 0 2902679 997054 1732031 173594 0 79178063 67035247 10993834 1148982 4982020 4376096 528114 77810 7923045 5408078 2398696 116271 4913610 4069295 765326 78989 0 6523403 6155986 367417 0 260339 0 260339 0 0 0 1685526 0 1685526 0 19587646 15564451 3231882 791313 89065 7193 81872 0 24476959 22285614 2154383 36962 757469 7454 750015 0 0 3706271 2950343 702267 53661 1747271 1494306 252965 0 0 263018 125194 137570 254 2655592 2655592 0 0 0 12709878 11736850 753603 219425 600072 553866 36005 10201 ROYALTY REVENUE SHARING 61851820 61851820 0 0 DUES AND SUBSCRIPTIONS 1894053 1714157 179896 0 TAXES AND LICENSES 289179 35691 253206 282 OTHER MISCELLANEOUS 703371 481461 221556 354 239700349 209505748 27486503 2708098 40216 517393 79764811 9615848 3789047 4157632 55639 0 525294 366447 1296454 2016033 216557 261932 518947 756611 318666812 91194340 220808275 227472472 354134902 362631273 74873062 116884343 3810445 437085 739833649 725117069 22589567 20130529 7303550 7904505 52289063 50837944 8381269 8216431 12329888 16703499 102893337 103792908 X 622141429 607388223 1121980 259035 13676903 13676903 636940312 621324161 739833649 725117069 X 16276249 -31892400 X false true true X true true X City of Hope National Medical Center Duarte CA false false false RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 0 0 547607 0 547607 239700349 1082841172 239700349 1083388779 1000000 1000000 250000 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 420753 546691 543709 547607 2058760 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 LOBBYING ADDITIONAL DISCLOSURES SCHEDULE C, PART II-A, Line A ALTHOUGH THIS QUESTION WAS ANSWERED "YES", BECKMAN RESEARCH INSTITUTE OF THE CITY OF HOPE (BECKMAN RESEARCH INSTITUTE) HAS NOT MADE THE 501(H) ELECTION AND DOES NOT HAVE ANY DIRECT LOBBYING EXPENDITURES IN FISCAL YEAR 2011. BECKMAN RESEARCH INSTITUTE BELONGS TO AN AFFILIATED GROUP, WHERE THE CITY OF HOPE NATIONAL MEDICAL CENTER (MEDICAL CENTER) APPLIED FOR A SECTION 501 (H) ELECTION ON FORM 5768 IN THE YEAR ENDED SEPTEMBER 30, 1995. THIS ELECTION HAS NOT BEEN REVOKED SUBSEQUENT TO THIS APPLICATION. THE FOLLOWING ARE THE OTHER MEMBERS OF THE AFFILIATED GROUP: CITY OF HOPE (HAS NOT MADE THE 501(H) ELECTION) 1500 EAST DUARTE ROAD, DUARTE, CA 91010 EIN = 95-3435919 GRASSROOTS LOBBYING AMOUNT = NONE TOTAL LOBBYING EXPENDITURES = NONE OTHER EXEMPT PURPOSE EXPENDITURES = $210,863,010 TOTAL EXEMPT PURPOSE EXPENDITURES = $210,863,010 LOBBYING NONTAXABLE AMOUNT = NONE GRASSROOTS NONTAXABLE AMOUNT = NONE TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT = NONE TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT = NONE SHARE OF EXCESS LOBBYING EXPENDITURES = NONE MEDICAL CENTER (HAS MADE A 501(H) ELECTION) 1500 EAST DUARTE ROAD, DUARTE, CA 91010 EIN = 95-1683875 GRASSROOTS LOBBYING AMOUNT = NONE TOTAL LOBBYING EXPENDITURES = $547,607 OTHER EXEMPT PURPOSE EXPENDITURES = $595,151,810 TOTAL EXEMPT PURPOSE EXPENDITURES = $595,699,417 LOBBYING NONTAXABLE AMOUNT = NONE GRASSROOTS NONTAXABLE AMOUNT = NONE TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT = NONE TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT = NONE SHARE OF EXCESS LOBBYING EXPENDITURES = NONE CITY OF HOPE MEDICAL FOUNDATION (MEDICAL FOUNDATION)(HAS NOT MADE THE 501(H) ELECTION) 1500 EAST DUARTE ROAD, DUARTE, CA 91010 EIN = 27-4803222 GRASSROOTS LOBBYING AMOUNT = NONE TOTAL LOBBYING EXPENDITURES = NONE OTHER EXEMPT PURPOSE EXPENDITURES = $37,126,003 TOTAL EXEMPT PURPOSE EXPENDITURES = $37,126,003 LOBBYING NONTAXABLE AMOUNT = NONE GRASSROOTS NONTAXABLE AMOUNT = NONE TOTAL GRASSROOTS LESS NONTAXABLE AMOUNT = NONE TOTAL EXPENDITURES LESS NONTAXABLE AMOUNT = NONE SHARE OF EXCESS LOBBYING EXPENDITURES = NONE 405464661 0 -11243318 0 465791 0 393755552 377557199 50000 28270983 0 413521 0 405464661 306902876 53162500 19519043 0 2027220 0 377557199 0.96500 0.03500 0.00000 false false 2502340 6709243 9211583 228192663 49345414 178847249 71078175 41848926 29229249 10184391 10184391 227472472 ALTERNATIVE INVESTMENTS 116884343 F 116884343 0 DUE TO AFFILIATES 4928732 INTEREST RATE SWAP LIABILITY 10781250 WORKERS COMPENSATION LIABILITY 993517 16703499 ENDOWMENT FUNDS SCHEDULE D, PART V LINES 1B AND 1E "TWO YEARS BACK" COLUMN (C) - INCLUDED IN THESE FIGURES WAS AN ERRONEOUS GROSS UP OF $9,375,000 RELATED TO THE GENENTECH SETTLEMENT IN FISCAL YEAR 2009. SCHEDULE D, PART V, LINE 4 BECKMAN RESEARCH INSTITUTE HAS ENDOWMENT FUNDS THAT ARE AVAILABLE TO FUND FUTURE RESEARCH, CAPITAL AND EXPANSION NEEDS AS DETERMINED BY CERTAIN DONOR AGREEMENTS, MANAGEMENT AND THE BOARD OF DIRECTORS. FASB ASC 740 DISCLOSURE SCHEDULE D, PART X, LINE 2 THE FOLLOWING PARAGRAPH IS FROM THE CONSOLIDATED CITY OF HOPE AND AFFILIATES AUDITED FINANCIAL STATEMENTS, WHICH INCLUDES BECKMAN RESEARCH INSTITUTE: FINANCIAL ACCOUNTING STANDARDS BOARD, ACCOUNTING STANDARD CODIFICATION (FASB ASC) 740, INCOME TAXES, CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING A MINIMUM RECOGNITION THRESHOLD THAT A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. FASB ASC 740 ALSO PROVIDES GUIDANCE ON DERECOGNITION, MEASUREMENT, CLASSIFICATION, INTEREST AND PENALTIES, DISCLOSURE AND TRANSITION. THE GUIDANCE CONTAINED IN FASB ASC 740 IS APPLICABLE TO PASS-THROUGH ENTITIES AND TAX-EXEMPT ORGANIZATIONS. CITY OF HOPE HAS NO SIGNIFICANT UNCERTAIN TAX POSITION OR TAX LIABILITY FOR TAX BENEFITS, INTEREST OR PENALTIES ACCRUED AT SEPTEMBER 30, 2011 AND 2010. Central America and the Caribbean 0 0 Investments 88471330 East Asia and the Pacific 0 0 Program Services Research symposiums 61846 Europe (Including Iceland and Greenland) 0 0 Program Services Research symposiums 165829 Middle East and North Africa 0 0 Program Services Research symposiums 11327 North America 0 0 Program Services Research symposiums 61927 Sub-Saharan Africa 0 0 Program Services Research symposiums 23728 Central America and the Caribbean 0 0 Program Services Research symposiums 529 Russia and the Newly Independent States 0 0 Program Services Research symposiums 3153 South Asia 0 0 Program Services Research symposiums 1585 0 0 0 0 88801254 88801254 true false true true true false GRANTS FROM OUTSIDE USA SCHEDULE F, PART I, LINE 3 INVESTMENT ACTIVITIES OF THE BECKMAN RESEARCH INSTITUTE INCLUDE INVESTMENTS IN MULTIPLE VEHICLES THAT PROVIDE INVESTMENT INCOME AND RETURNS TO THE INSTITUTION TO FURTHER MISSION AND PROGRAMS. AS A RESULT, THERE ARE INVESTMENTS HELD IN OFFSHORE HEDGE FUNDS, MAINLY REGISTERED AS CAYMAN EXEMPTED CORPORATIONS. THESE INVESTMENTS REPRESENT APPROXIMATELY 23.5% OF THE BECKMAN RESEARCH INSTITUTE'S OVERALL INVESTMENT PORTFOLIO AND HELP MITIGATE PORTFOLIO RISK. THE BECKMAN RESEARCH INSTITUTE HAS HOLDINGS OF ALTERNATIVE INVESTMENTS THAT INCLUDE EQUITY CO-MINGLED FUNDS WHICH ARE INVESTMENT FUND VEHICLES THAT INVEST PRIMARILY IN MARKETABLE EQUITY SECURITIES AND CAN BE LIQUIDATED MONTHLY SUBJECT TO NOTICE REQUIREMENTS; THIS INCLUDES HEDGE FUNDS. ADDITIONALLY, ALTERNATIVE INVESTMENTS INCLUDE LIMITED PARTNERSHIP FUNDS INVESTED IN REAL ESTATE AND NATURAL RESOURCES, PRIVATE EQUITY FUNDS, AND OFFSHORE FUNDS. SCHEDULE F, PART 1, COLUMN F THE EXPENDITURES IN COLUMN F ARE DETERMINED USING THE ACCRUAL METHOD OF ACCOUNTING. X X false false true true false false false false false true false David Horne 278410 0 0 0 108650 0 36750 0 22140 0 445950 0 0 0 Dennis F Rusch 0 320805 0 143850 0 268523 0 175982 0 19700 0 928860 0 67748 Gerd Pfeifer 248214 0 0 0 12919 0 36663 0 14740 0 312536 0 0 0 Gregory Schetina 0 303697 0 126025 0 25521 0 20228 0 30328 0 505799 0 0 John J Rossi 300546 0 13854 0 2027 0 36750 0 21155 0 374332 0 0 0 John Shively 258571 0 0 0 1671 0 36750 0 9881 0 306873 0 0 0 Larry A Couture 281853 0 101278 0 19767 0 20228 0 12962 0 436088 0 0 0 Leslie Bernstein 311785 0 0 0 8215 0 36750 0 16118 0 372868 0 0 0 Michael A Friedman MD 0 717890 0 469740 0 198328 0 20228 0 27962 0 1434148 0 0 Richard Ermel 289196 0 0 0 1264 0 36750 0 21978 0 349188 0 0 0 Richard Jove 428230 0 206003 0 133368 0 12899 0 25079 0 805579 0 0 0 Robert Powell 239694 0 109186 0 144740 27360 0 6387 23544 4141 517164 37888 41268 0 Robert Stone 0 443820 0 216203 0 35764 0 20228 0 25979 0 741994 0 0 Susan E Kane 237009 0 0 0 2492 0 36005 0 15539 0 291045 0 0 0 Theodore G Krontiris PhD 264451 0 0 0 1750 0 36750 0 22075 0 325026 0 0 0 Valerie Bingham 0 185385 0 33696 0 391 0 14815 0 21311 0 255598 0 0 Virginia Opipare 0 467366 0 234699 0 66330 0 7664 0 24364 0 800423 0 0 QUESTIONS REGARDING COMPENSATION SCHEDULE J, PART I, LINE 1A RICHARD JOVE, PHD IS PROVIDED TAX GROSS UP ASSISTANCE, IN THE FORM OF A BONUS, ASSOCIATED WITH THE AMORTIZATION OF A MORTGAGE ASSISTANCE LOAN. BOTH THE AMORTIZATION OF THE MORTGAGE ASSISTANCE AND THE TAX GROSS UP ASSISTANCE ARE INCLUDED IN DR. JOVE'S TAXABLE INCOME IN COLUMNS B(II) AND B(III) ON SCHEDULE J. CERTAIN EXECUTIVES AND OTHER EMPLOYEES LISTED IN PART VII ARE PROVIDED WITH AN AUTOMOBILE ALLOWANCE WHICH HAS BEEN INCLUDED IN TAXABLE INCOME COLUMN B(III) OF SCHEDULE J TO THE EXTENT THE ALLOWANCE IS UNSUBSTANTIATED BY ASSOCIATED BUSINESS MILEAGE. SCHEDULE J, PART I, LINE 3 THE CEO OF THE ORGANIZATION, MICHAEL FRIEDMAN, M.D., IS NOT COMPENSATED BY BECKMAN RESEARCH INSTITUTE BUT BY THE MEDICAL CENTER. CEO COMPENSATION IS ESTABLISHED BY THE COMPENSATION COMMITTEE OF THE CITY OF HOPE BOARD OF DIRECTORS. ALL SOURCES INDICATED IN LINE 3 ARE UTILIZED BY THIS COMMITTEE TO SET CEO COMPENSATION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15A. SCHEDULE J, PART I, LINE 4A THE BECKMAN RESEARCH INSTITUTE'S OFFICERS AND KEY EMPLOYEES ARE ELIGIBLE TO RECEIVE FAIR COMPENSATION FOR A SPECIFIED PERIOD OF TIME IN THE EVENT OF A POSITION ELIMINATION OR OTHER NOT FOR CAUSE SEPARATION ("SEPARATION PAYMENT"). ANY TAXABLE AMOUNT RECEIVED BY THE OFFICER OR KEY EMPLOYEE DURING SUCH PERIOD FROM ANY OTHER SOURCE IS COUNTED IN THE AGGREGATE TO REDUCE DIRECTLY, ON A DOLLAR FOR DOLLAR BASIS, THE ORGANIZATION'S SEPARATION PAYMENT. THE BECKMAN RESEARCH INSTITUTE MADE SEPARATION PAYMENTS DURING 2010 TO ROBERT POWELL ($46,968). THE MEDICAL CENTER MADE SEPARATION PAYMENTS DURING 2010 TO DENNIS RUSCH ($77,088) AND ROBERT POWELL ($11,742). THESE PAYMENTS HAVE BEEN INCLUDED IN SCHEDULE J PART II OTHER REPORTABLE COMPENSATION COLUMN B(III). PARTICIPATION IN NON-QUALIFIED SECTION 457 (F) PLAN SCHEDULE J, PART I, LINE 4B BECKMAN RESEARCH INSTITUTE HAS AN EXECUTIVE SUPPLEMENTAL ACCUMULATION PLAN THAT IS A NON-QUALIFIED SECTION 457(F) PLAN. THE PLAN WAS AMENDED EFFECTIVE SEPTEMBER 30, 2007 AND IS DESIGNED TO PROVIDE EACH DESIGNATED PARTICIPANT WITH DEFERRED COMPENSATION. THE PLAN IS MAINTAINED FOR A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES. THE PLAN VESTS AFTER THREE (3) YEARS AND THE VESTED TOTALS ARE INCLUDED IN SCHEDULE J PART II, COLUMN "OTHER REPORTABLE COMPENSATION (B)(III)." PRIOR TO VESTING THE ANNUAL AMOUNTS ARE INCLUDED IN SCHEDULE J PART II COLUMN "DEFERRED COMPENSATION (C)." PURSUANT TO THE PLAN DOCUMENT, PARTICIPANTS ARE ENTITLED TO WITHDRAW FROM THEIR ACCOUNT AN AMOUNT EQUAL TO THE FEDERAL, STATE, LOCAL, AND FICA TAXES UPON SUCH VESTING. THESE AMOUNTS ARE REMITTED TO THE APPROPRIATE TAXING AUTHORITIES ON BEHALF OF THE PARTICIPANT BY BECKMAN RESEARCH INSTITUTE OR THE MEDICAL CENTER. THE FOLLOWING INDIVIDUALS WITHDREW THE REFERENCED AMOUNTS TO COVER SUCH TAXES DURING THE CALENDAR YEAR ENDING DECEMBER 31, 2010: LARRY COUTURE $2,398 RICHARD JOVE $10,725 VIRGINIA OPIPARE $9,603 GREGORY SCHETINA $4,005 ROBERT STONE $7,956 THESE AMOUNTS HAVE BEEN INCLUDED IN THE PARTICIPANTS INCOME ON SCHEDULE J PART II COLUMN B(III) OTHER REPORTABLE COMPENSATION. THE FOLLOWING INDIVIDUALS TERMINATED THEIR EMPLOYMENT WITH BECKMAN RESEARCH INSTITUTE AND THE MEDICAL CENTER DURING THE CALENDAR YEAR ENDING DECEMBER 31, 2010 AND RECEIVED DISTRIBUTIONS FROM THE PLAN IN THE FOLLOWING AMOUNTS: ROBERT POWELL $66,069 DENNIS RUSCH $109,371 THESE AMOUNTS HAVE BEEN REPORTED AS TAXABLE COMPENSATION TO THE INDIVIDUALS LISTED EITHER IN PRIOR YEARS OR IN THE CURRENT YEAR. NON-FIXED COMPENSATION PAYMENTS SCHEDULE J, PART I, LINE 7 BECKMAN RESEARCH INSTITUTE EXECUTIVES AND SOME KEY EMPLOYEES ARE ELIGIBLE TO RECEIVE INCENTIVE COMPENSATION TIED TO FIVE (5) KEY INDICATORS. THE KEY INDICATORS ARE BOTH FINANCIAL AND NON-FINANCIAL, AND THE POTENTIAL INCENTIVE COMPENSATION IS BASED ON A WEIGHTED AVERAGE AMONG ALL INDICATORS AND IS PAID AS A PERCENTAGE OF EACH INDIVIDUAL PARTICIPANT'S BASE COMPENSATION. BASED UPON AN INDIVIDUAL'S GOALS AND PERFORMANCE DURING THE YEAR, THE POTENTIAL PAYOUT FOR ANY PARTICIPANT CAN BE MODIFIED UP OR DOWN 20%. THE INCENTIVE COMPENSATION PAID DURING THIS TAX YEAR HAS BEEN REPORTED IN SCHEDULE J, COLUMN B(II). BEN HOROWITZ FORM 990, PART VII, SECTION A MR. BEN HOROWITZ IS A NON-VOTING, HONORARY MEMBER OF THE CITY OF HOPE BOARD OF DIRECTORS. HE IS ALSO A BOARD MEMBER OF THE MEDICAL CENTER AND BECKMAN RESEARCH INSTITUTE. MR. HOROWITZ WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CITY OF HOPE FROM 1953 TO 1986. UPON HIS RETIREMENT, THE BOARD VOTED HIM A MONTHLY RETIREMENT BENEFIT IN RECOGNITION OF HIS EXTRAORDINARY LONG-TERM CONTRIBUTIONS TO THE CITY OF HOPE. MR. HOROWITZ WAS PAID $110,000 IN CALENDAR YEAR 2010 IN CONNECTION WITH A GRANDFATHERED PRE-1986 DEFERRED COMPENSATION PLAN. THIS AMOUNT IS INCLUDED IN FORM 990, Part VII, REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS. THIS STIPEND IS UNRELATED TO THE FACT THAT SUBSEQUENT TO HIS RETIREMENT HE WAS ELECTED TO THE BOARD OF DIRECTORS OF THE MEDICAL CENTER AND THE BECKMAN RESEARCH INSTITUTE. JOHN J. ROSSI SCHEDULE J, PART II JOHN J. ROSSI IS A MEMBER OF THE BOARD OF DIRECTORS OF THE BECKMAN RESEARCH INSTITUTE. ADDITIONALLY, HE IS EMPLOYED BY THE BECKMAN RESEARCH INSTITUTE AS A RESEARCH SCIENTIST AND DIRECTOR OF MOLECULAR MEDICINE. HE ALSO SERVES AS THE DEAN OF THE CITY OF HOPE'S IRELL AND MANELLA GRADUATE SCHOOL OF BIOLOGICAL SCIENCES. HE IS COMPENSATED FOR HIS ROLE AS RESEARCH SCIENTIST AND DIRECTOR OF MOLECULAR MEDICINE. HE IS NOT COMPENSATED FOR HIS SERVICE AS A MEMBER OF THE BOARD OF BECKMAN RESEARCH INSTITUTE. HIS COMPENSATION IS LISTED ON SCHEDULE J, PART II, AND FORM 990, PART VII, SECTION A. California Enterprise Development Authority 352273601 2007-07-12 50000000 See Part V false false false 0 0 52520258 0 0 0 215460 0 0 52304798 0 0 2010 false false true true false false true true false 0.00000 0.00000 0.00000 true false true false false false false Description of Purpose Schedule K, Part I, Column F To construct a center for cancer immunotherapeutics and tumor immunology. Bond Counsel Engagement Schedule K, Part III, Line 3c The organization has inside counsel experienced with business use restrictions to review management or service contracts or research agreements relating to tax exempt financed property. RICHARD JOVE MORTGAGE SUBSIDY X 500000 186447 false true true DAVID HORNE MORTGAGE SUBSIDY X 540000 180000 false true true 366447 Hua Yu Spouse/Richard JoveOfficr 315760 Employee compensation false LOANS TO/FROM INTERESTED PERSONS SCHEDULE L, PART II RICHARD JOVE, PHD WAS NAMED THE DIRECTOR OF THE BECKMAN RESEARCH INSTITUTE DURING FISCAL YEAR 2008. PRIOR TO THAT HE WAS RECRUITED AS A PROFESSOR IN THE BECKMAN RESEARCH INSTITUTE. AS PART OF THE RECRUITMENT, BECKMAN RESEARCH INSTITUTE MADE A LOAN TO DR. JOVE TO ASSIST HIM WITH THE COST OF RELOCATING FROM FLORIDA. DR. JOVE CONTINUED TO MAKE INTEREST PAYMENTS ON THIS LOAN DURING FISCAL YEAR 2011, WHILE THE PRINCIPAL IS AMORTIZED AS COMPENSATION TO DR. JOVE. THE LOAN BEARS INTEREST AT 4.72 PERCENT PER ANNUM. THE LOAN IS SECURED BY REAL PROPERTY IN THE STATE OF CALIFORNIA AND IS DUE IN FULL THE EARLIER OF MAY 20, 2015 OR THE TERMINATION OF DR. JOVE'S EMPLOYMENT. THE AMORTIZATION OF THE LOAN IS INCLUDED IN TAXABLE INCOME, OTHER REPORTABLE COMPENSATION, ON SCHEDULE J. DAVID HORNE, PHD WAS PROVIDED A MORTGAGE ASSISTANCE LOAN AS PART OF HIS RECRUITMENT BY THE BECKMAN RESEARCH INSTITUTE. DR. HORNE CONTINUED TO MAKE INTEREST PAYMENTS ON THIS LOAN DURING FISCAL YEAR 2011, WHILE THE PRINCIPAL IS AMORTIZED AS COMPENSATION TO DR. HORNE. THE LOAN BEARS INTEREST AT 4.94 PERCENT PER ANNUM. THE LOAN IS SECURED BY REAL PROPERTY IN THE STATE OF CALIFORNIA AND IS DUE IN FULL THE EARLIER OF AUGUST 11, 2013 OR THE TERMINATION OF DR. HORNE'S EMPLOYMENT. THE AMORTIZATION OF THE LOAN IS INCLUDED IN TAXABLE INCOME, OTHER REPORTABLE COMPENSATION, ON SCHEDULE J. THE FOLLOWING IS PROVIDED AS AN INFORMATION DISCLOSURE ONLY: THEODORE KRONTIRIS, M.D., PHD, WAS THE EXECUTIVE VICE PRESIDENT FOR MEDICAL AND SCIENTIFIC AFFAIRS (EVPMSA) AND CANCER CENTER DIRECTOR. HE RESIGNED THIS POSITION DURING FISCAL YEAR 2008. PRIOR TO THIS, DR. KRONTIRIS WAS RECRUITED IN 1996 TO JOIN THE RESEARCH STAFF OF THE MEDICAL CENTER AS A CONSULTING PHYSICIAN IN THE DEPARTMENT OF HEMATOLOGY. AS PART OF THE RECRUITMENT, THE MEDICAL CENTER MADE A LOAN TO DR. KRONTIRIS TO ASSIST HIM WITH THE COST OF RELOCATING FROM MASSACHUSETTS. DR. KRONTIRIS CONTINUED TO MAKE INTEREST PAYMENTS ON THE LOAN DURING FISCAL YEAR 2011. THE INTEREST ONLY LOAN IN THE PRINCIPAL AMOUNT OF $100,000, IS CARRIED ON THE MEDICAL CENTER'S BOOKS (FEIN: 95-1683875) AND BEARS INTEREST AT THE RATE OF 6.68 PERCENT PER ANNUM. THE LOAN IS SECURED BY REAL PROPERTY IN THE STATE OF CALIFORNIA AND IS DUE THE EARLIER OF OCTOBER 2, 2012 OR THE TERMINATION OF DR. KRONTIRIS' EMPLOYMENT. DR. KRONTIRIS REMAINS EMPLOYED BY THE BECKMAN RESEARCH INSTITUTE. ORGANIZATION'S MISSION FORM 990, PART III LINE 1 CITY OF HOPE AND AFFILIATES [COLLECTIVELY REFERRING TO CITY OF HOPE, GENBASIX, INC., THE MEDICAL CENTER, ONCOLOGY MANAGEMENT SERVICES, INC., THE MEDICAL FOUNDATION, BECKMAN RESEARCH INSTITUTE, AND CITY OF HOPE AUXILIARIES (AUXILIARIES)], AN INNOVATIVE BIOMEDICAL RESEARCH, TREATMENT AND EDUCATIONAL INSTITUTION, IS DEDICATED TO THE PREVENTION AND CURE OF CANCER AND OTHER LIFE-THREATENING DISEASES, GUIDED BY A COMPASSIONATE, PATIENT-CENTERED PHILOSOPHY AND SUPPORTED BY A NATIONAL FOUNDATION OF HUMANITARIAN PHILANTHROPY. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A SINCE ITS FOUNDING IN 1913, CITY OF HOPE AND AFFILIATES - HAS DEVELOPED INTO AN INTERNATIONALLY RECOGNIZED INSTITUTION WHOSE RESEARCH AND TREATMENT ACHIEVEMENTS ADVANCE CARE THROUGHOUT THE NATION. THE MEDICAL CENTER IS DESIGNATED AS A COMPREHENSIVE CANCER CENTER, THE HIGHEST HONOR BESTOWED BY THE NATIONAL CANCER INSTITUTE, AND IS A FOUNDING MEMBER OF THE NATIONAL COMPREHENSIVE CANCER NETWORK, AN ALLIANCE OF 21 TOP CENTERS THAT DEVELOPS NATIONAL GUIDELINES FOR CANCER TREATMENT. THE BECKMAN RESEARCH INSTITUTE HAS PIONEERED SCIENTIFIC BREAKTHROUGHS RESULTING IN TREATMENTS THAT HAVE IMPROVED THE LIVES OF PATIENTS WORLDWIDE. NUMEROUS LIFE-SAVING DRUGS ARE BASED ON PATENTED RESEARCH PERFORMED AT THE BECKMAN RESEARCH INSTITUTE, INCLUDING SYNTHETIC HUMAN INSULIN (HUMULIN) FOR DIABETES, THE WIDELY USED CANCER DRUGS HERCEPTIN, RITUXAN AND AVASTIN, AND HUMIRA FOR ARTHRITIS. THE BECKMAN RESEARCH INSTITUTE'S MISSION IS TO SUPPORT INNOVATIVE AND CREATIVE RESEARCH AND TO EDUCATE FUTURE SCIENTISTS IN THE BIOLOGICAL SCIENCES. RESEARCH IS TO BE OF THE HIGHEST CALIBER AND DIRECTED TO AN UNDERSTANDING OF THE MOLECULES AND PROCESSES OF LIFE, INCLUDING THOSE PROCESSES IMPORTANT TO THE CAUSES, PREVENTION AND CURE OF HUMAN DISEASE. RESEARCHERS AT THE BECKMAN RESEARCH INSTITUTE UNDERTAKE FUNDAMENTAL INVESTIGATIONS IN MOLECULAR GENETICS AND CELLULAR BIOLOGY, STUDYING BIOLOGICAL PROCESSES, CELL DIFFERENTIATION AND EARLY DEVELOPMENT, CELLULAR SIGNALING, RNA PROCESSING AND GENOMIC STRUCTURE. THEY HAVE ACHIEVED MAJOR ADVANCES IN RECOMBINANT DNA TECHNOLOGY, MONOCLONAL ANTIBODIES, GENE THERAPY, EPIGENETICS, SI-RNA TECHNOLOGY AND CANCER IMMUNOTHERAPEUTICS. CLINICAL TRIALS ARE UNDERWAY AT THE BECKMAN RESEARCH INSTITUTE TO TEST THE USE OF SHORT-INTERFERING RNA TO BLOCK VIRUS GROWTH IN HIV-POSITIVE PATIENTS. A DEPARTMENT IN THE BECKMAN RESEARCH INSTITUTE IS DEDICATED TO UNDERSTANDING AND DEVELOPING TREATMENTS BASED ON CANCER'S INTERACTION WITH THE IMMUNE SYSTEM. OTHER RESEARCH HAS IDENTIFIED PROTEINS THAT MAY PLAY CRITICAL ROLES IN IMMUNE RESPONSE AND MAY LEAD TO NEW TREATMENT STRATEGIES. A MAJOR EMPHASIS FOR BECKMAN RESEARCH INSTITUTE SCIENTISTS IS PERSONALIZED RESEARCH AND MEDICINE - ANALYZING A PATIENT'S UNIQUE GENETIC PROFILE TO DEVELOP TAILORED THERAPIES TO TREAT THEIR SPECIFIC DISEASE. ALL OF THIS RESEARCH IS UNIQUELY SUPPORTED BY ONSITE MANUFACTURING FACILITIES THAT CAN TEST AND PRODUCE QUANTITIES OF CELL-BASED, GENE-BASED AND MOLECULAR THERAPIES. THESE FACILITIES FURTHER SERVE AS RESOURCES TO MEDICAL AND RESEARCH CENTERS NATIONWIDE. BECKMAN RESEARCH INSTITUTE SCIENTISTS SERVE AS FACULTY MEMBERS IN CITY OF HOPE'S IRELL & MANELLA GRADUATE SCHOOL OF BIOLOGICAL SCIENCES. THE GRADUATE SCHOOL'S MISSION IS TO TRAIN STUDENTS TO BE OUTSTANDING RESEARCH SCIENTISTS IN CHEMICAL, MOLECULAR AND CELLULAR BIOLOGY. THE SCHOOL IS ACCREDITED BY THE WESTERN ASSOCIATION OF SCHOOLS AND COLLEGES. GRADUATES OF THE PROGRAM, AWARDED A DOCTOR OF PHILOSOPHY IN BIOLOGICAL SCIENCES, ARE EQUIPPED TO ADDRESS FUNDAMENTAL QUESTIONS IN LIFE SCIENCES AND BIOMEDICINE FOR CAREERS IN ACADEMIA, INDUSTRY AND GOVERNMENT. SCHOOLS QUESTIONNAIRE FORM 990 PART IV QUESTION 13 AND SCHEDULE E THE BECKMAN RESEARCH INSTITUTE IS ENGAGED IN THE CONTINUOUS ACTIVE CONDUCT OF MEDICAL AND SCIENTIFIC RESEARCH. THE BECKMAN RESEARCH INSTITUTE OPERATES A GRADUATE SCHOOL AND COMPLIES WITH REV. PROC. 75-50 EVEN THOUGH THE OPERATIONS OF THE GRADUATE SCHOOL CONSTITUTES LESS THAN 2% OF THE ORGANIZATION'S TOTAL EXPENSES. DUE TO LIMITATIONS IN THE 990 RETURN SOFTWARE APPLICATION, WE ARE UNABLE TO ACCESS THE SCHEDULE E FOR THESE QUESTIONS, BUT RESPOND TO THEM BELOW. THE FOLLOWING RESPONDS TO THE QUESTIONS IN THE SCHEDULE E SCHOOLS QUESTIONNAIRE: 1. DOES THE ORGANIZATION HAVE A RACIALLY NONDISCRIMINATORY POLICY TOWARD STUDENTS BY STATEMENT IN ITS CHARTER, BYLAWS, OTHER GOVERNING INSTRUMENT, OR IN A RESOLUTION OF ITS GOVERNING BODY? "YES" 2. DOES THE ORGANIZATION INCLUDE A STATEMENT OF ITS RACIALLY NONDISCRIMINATORY POLICY TOWARD STUDENTS IN ALL ITS BROCHURES, CATALOGUES, AND OTHER WRITTEN COMMUNICATIONS WITH THE PUBLIC DEALING WITH STUDENT ADMISSIONS, PROGRAMS, AND SCHOLARSHIP? "YES" 3. HAS THE ORGANIZATION PUBLICIZED ITS RACIALLY NONDISCRIMINATORY POLICY THROUGH NEWSPAPER OR BROADCAST MEDIA DURING THE PERIOD OF SOLICITATION FOR STUDENTS, OR DURING THE REGISTRATION PERIOD IF IT HAS NO SOLICITATION PROGRAM, IN A WAY THAT MAKES THE POLICY KNOWN TO ALL PARTS OF THE GENERAL COMMUNITY IT SERVES? IF YES, PLEASE DESCRIBE: IF NO, PLEASE EXPLAIN. "NO." THE GRADUATE SCHOOL CUSTOMARILY DRAWS A SUBSTANTIAL PERCENTAGE OF ITS STUDENTS FROM LARGE GEOGRAPHIC SECTIONS OF THE UNITED STATES AND INTERNATIONALLY, AND FOLLOWS A RACIALLY NONDISCRIMINATORY POLICY AS DEMONSTRATED BY ITS CURRENT ENROLLMENT OF STUDENTS OF RACIAL MINORITY GROUPS IN MEANINGFUL NUMBERS. ACCORDINGLY, THE GRADUATE SCHOOL SATISFIES THE PUBLICITY REQUIREMENTS OF SECTION 4.03 BY COMPLYING WITH SECTION 4.02 IN THAT IT INCLUDES A STATEMENT OF ITS RACIALLY NONDISCRIMINATORY POLICY AS TO STUDENTS IN ITS CATALOGUES AND ON THE ORGANIZATION'S WEBSITE. 4. DOES THE ORGANIZATION MAINTAIN THE FOLLOWING: 4A. RECORDS INDICATING THE RACIAL COMPOSITION OF THE STUDENT BODY, FACULTY, AND ADMINISTRATIVE STAFF? "YES" 4B. RECORDS DOCUMENTING THAT SCHOLARSHIPS AND OTHER FINANCIAL ASSISTANCE ARE AWARDED ON A RACIALLY NONDISCRIMINATORY BASIS? "YES" 4C. COPIES OF ALL CATALOGUES, BROCHURES, ANNOUNCEMENTS, AND OTHER WRITTEN COMMUNICATIONS TO THE PUBLIC DEALING WITH STUDENT ADMISSIONS, PROGRAMS, AND SCHOLARSHIPS? "YES" 4D. COPIES OF ALL MATERIAL USED BY THE ORGANIZATION OR ON ITS BEHALF TO SOLICIT CONTRIBUTIONS? "YES" 5. DOES THE ORGANIZATION DISCRIMINATE BY RACE IN ANY WAY WITH RESPECT TO: 5A. STUDENT'S RIGHTS OR PRIVILEGES? "NO" 5B. ADMISSIONS POLICIES? "NO" 5C. EMPLOYMENT OF FACULTY OR ADMINISTRATIVE STAFF? "NO" 5D. SCHOLARSHIPS OR OTHER FINANCIAL ASSISTANCE? "NO" 5E. EDUCATIONAL POLICIES? "NO" 5F. USE OF FACILITIES? "NO" 5G. ATHLETIC PROGRAMS? "NO" 5H. OTHER EXTRACURRICULAR ACTIVITIES? "NO" 6A. DOES THE ORGANIZATION RECEIVE ANY FINANCIAL AID OR ASSISTANCE FROM A GOVERNMENTAL AGENCY? "NO" 6B. HAS THE ORGANIZATION'S RIGHT TO SUCH AID EVER BEEN REVOKED OR SUSPENDED? "NO" 7. DOES THE ORGANIZATION CERTIFY THAT IT HAS COMPLIED WITH THE APPLICABLE REQUIREMENTS OF SECTIONS 4.01 THROUGH 4.05 OF REV. PROC. 75-50, 1975-2 C.B. 587, COVERING RACIAL NONDISCRIMINATION? "YES" ADMISSION TO THE GRADUATE SCHOOL OF BIOLOGICAL STUDIES, WHICH ACCEPTS APPLICATIONS ON AN INTERNATIONAL BASIS, IS HIGHLY COMPETITIVE. CANDIDATES ARE EVALUATED ON THE BASIS OF THEIR TEST SCORES, GRADES FROM COLLEGE AND GRADUATE LEVEL COURSEWORK, LETTERS OF RECOMMENDATION, AND ON THE SCHOOL'S ASSESSMENT OF THE CANDIDATES' POTENTIAL TO CONDUCT MEANINGFUL AND SIGNIFICANT BIOLOGICAL, BIOMEDICAL AND/OR CHEMICAL RESEARCH. ALL STUDENTS ADMITTED TO THE GRADUATE SCHOOL RECEIVE A STIPEND. THE AMOUNT OF THE STIPEND IS DETERMINED BASED ON STIPEND LEVELS AT OTHER CALIFORNIA GRADUATE SCHOOLS WITH SIMILAR PROGRAMS AND IS THE SAME FOR ALL STUDENTS IN THE PROGRAM. GOVERNING BODY AND MANAGEMENT FORM 990, PART VI, SECTION A, LINE 4 SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS ON FEBRUARY 11, 2011, THE BOARD OF DIRECTORS OF CITY OF HOPE, THE SOLE CORPORATE MEMBER OF THE BECKMAN RESEARCH INSTITUTE, APPROVED CHANGES TO THE BYLAWS OF THE BECKMAN RESEARCH INSTITUTE. THE FIRST SUBSTANTIVE CHANGE CONFORMED THE BYLAWS TO CHANGES IN THE LAW REGARDING VACANCIES ON THE BOARD. IN THE PAST, THE BYLAWS PROVIDED THAT IF THE BOARD REDUCED THE NUMBER OF DIRECTORS, THE REDUCTION COULD NOT HAVE THE EFFECT OF REMOVING A DIRECTOR FROM OFFICE BEFORE THAT DIRECTOR'S TERM OF OFFICE EXPIRED. NOW, A REDUCTION IN THE AUTHORIZED NUMBER OF DIRECTORS MAY HAVE THE EFFECT OF REMOVING A DIRECTOR BEFORE HIS OR HER TERM EXPIRES IF THE REDUCTION PROVIDES FOR THE REMOVAL OF ONE OR MORE SPECIFIED DIRECTORS IMMEDIATELY. THE SECOND SUBSTANTIVE CHANGE INCREASED PHYSICIAN PARTICIPATION IN GOVERNANCE BY ADDING A DEDICATED SEAT FOR A PHYSICIAN-SCIENTIST ON THE BOARD OF DIRECTORS OF THE BECKMAN RESEARCH INSTITUTE AS PART OF, AND CONTINGENT ON THE CONSUMMATION OF, THE TRANSACTION IN WHICH THE CITY OF HOPE MEDICAL FOUNDATION WAS FORMED. THE PHYSICIAN IS NOMINATED BY THE BOARD OF DIRECTORS OF THE MEDICAL GROUP THAT EMPLOYS THE PHYSICIAN AND WHICH PROVIDES CLINICAL AND TEACHING, ADMINISTRATIVE AND RESEARCH SERVICES TO THE FOUNDATION PURSUANT TO A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE FOUNDATION AND THE MEDICAL GROUP. THE NOMINATION IS SUBJECT TO THE APPROVAL OF CITY OF HOPE'S BOARD OF DIRECTORS. ALL OTHER CHANGES TO THE BYLAWS WERE CLARIFYING AND MINOR IN NATURE. FORM 990, PART VI, LINE 6 CITY OF HOPE (95-3435919) IS THE SOLE CORPORATE MEMBER OF THE BECKMAN RESEARCH INSTITUTE. FORM 990, PART VI, LINE 7A THE SOLE CORPORATE MEMBER, CITY OF HOPE, ELECTS DIRECTORS TO THE BECKMAN RESEARCH INSTITUTE. FORM 990, PART VI, LINE 7B CERTAIN ACTIONS MAY NOT BE UNDERTAKEN WITHOUT THE PRIOR WRITTEN APPROVAL OF THE SOLE CORPORATE MEMBER, CITY OF HOPE, AS SPECIFIED IN THE GOVERNING DOCUMENTS OF THE BECKMAN RESEARCH INSTITUTE, INCLUDING: BORROWING MONEY IN THE NAME OF THE BECKMAN RESEARCH INSTITUTE OR UTILIZING PROPERTY OWNED BY THE BECKMAN RESEARCH INSTITUTE AS SECURITY FOR SUCH LOANS; ASSIGN, TRANSFER, PLEDGE, COMPROMISE OR RELEASE ANY OF THE CLAIMS OR DEBTS TO THE BECKMAN RESEARCH INSTITUTE EXCEPT ON PAYMENT IN FULL, OR ARBITRATE OR CONSENT TO THE ARBITRATION OF ANY DISPUTE OR CONTROVERSY OF THE BECKMAN RESEARCH INSTITUTE; MAKE, EXECUTE OR DELIVER ANY ASSIGNMENT FOR THE BENEFIT OF CREDITORS, OR ANY BOND, CONFESSION OF JUDGMENT, CHATTEL MORTGAGE, SECURITY AGREEMENT, DEED, GUARANTY, INDEMNITY BOND, SURETY BOND, OR CONTRACT TO SELL OR BILL OF SALE OF THE PROPERTY OF THE BECKMAN RESEARCH INSTITUTE; ACQUIRE, PURCHASE, DEVELOP, IMPROVE, SELL, LEASE, OR MORTGAGE ANY CORPORATE REAL ESTATE OR ANY INTEREST THEREIN OR ENTER INTO ANY CONTRACT FOR ANY SUCH PURPOSES; OR MAKE ANY LOAN, INVESTMENT, TRANSFER OR DISPOSITION OF ANY ASSETS OF BECKMAN RESEARCH INSTITUTE OR ENTER INTO ANY CONTRACT OR INCUR ANY LIABILITIES ON BEHALF OF THE BECKMAN RESEARCH INSTITUTE OTHER THAN FOR FAIR CONSIDERATION AND IN THE ORDINARY COURSE OF BUSINESS RELATING TO ITS NORMAL DAILY OPERATION; ESTABLISH CAPITAL AND OPERATING BUDGETS OR ADOPT MATERIAL CHANGES THERE. THE FOLLOWING REQUIRE GOVERNING BODY APPROVAL (AS WELL AS THE APPROVAL OF THE SOLE CORPORATE MEMBER): THE ADOPTION OF, OR MATERIAL CHANGE IN, THE MISSION OF THE BECKMAN RESEARCH INSTITUTE; SALE OR DISPOSITION OF ALL OR SUBSTANTIALLY ALL ASSETS; MERGER AND ITS PRINCIPAL TERMS (AND ANY AMENDMENT TO THOSE TERMS); DISSOLUTION OF THE CORPORATION; ADOPTION OF OPERATING AND CAPITAL BUDGETS; ACQUISITIONS AND CAPITAL EXPENDITURES MEETING A CERTAIN FINANCIAL THRESHOLD; BORROWINGS, GUARANTIES, LOANS, AND BOND ISSUANCE MEETING A CERTAIN FINANCIAL THRESHOLD; CREATION OF A NEW (OR ACQUISITION OF A CONTROLLING INTEREST IN AN EXISTING) CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY; ADOPTION OF OR AMENDMENTS TO INDIVIDUAL CORPORATE INVESTMENT GUIDELINES. POLICIES FORM 990, PART VI, SECTION B LINE 11B A COPY OF THE FORM 990 IS REVIEWED BY THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF CITY OF HOPE, WHICH ASSISTS THE BECKMAN RESEARCH INSTITUTE'S BOARD IN FULFILLING ITS RESPONSIBILITIES REGARDING THE FINANCIAL, ACCOUNTING, AND CORPORATE COMPLIANCE MATTERS OF THE BECKMAN RESEARCH INSTITUTE. CITY OF HOPE'S AUDIT COMMITTEE ALSO SERVES AS THE AUDIT COMMITTEE OF THE BECKMAN RESEARCH INSTITUTE. ADDITIONALLY, THE PREPARATION OF THE FORM 990 IS DONE INTERNALLY AND IS REVIEWED THOROUGHLY WITH INTERNAL LEADERSHIP AND EXTERNAL PARTICIPANTS, INCLUDING ERNST & YOUNG, RETAINED TAX COUNSEL AND OTHER TAX PREPARERS. PRIOR TO FILING, THE BECKMAN RESEARCH INSTITUTE FORM 990 IS MADE AVAILABLE TO VOTING MEMBERS OF THE CITY OF HOPE BOARD OF DIRECTORS FOR REVIEW ELECTRONICALLY ON-LINE THROUGH CITY OF HOPE'S SECURE WEB-BASED PORTAL. ADDITIONALLY CERTAIN MEMBERS OF THE CITY OF HOPE BOARD OF DIRECTORS ALSO SERVE AS BOARD MEMBERS OF THE MEDICAL CENTER, THE MEDICAL FOUNDATION OR THE BECKMAN RESEARCH INSTITUTE. FORM 990, PART VI, LINE 12C ALL EMPLOYEES OF CITY OF HOPE AND AFFILIATES, MEMBERS OF THE BOARDS OF DIRECTORS, BOARD COMMITTEE MEMBERS AND RESEARCH TEAM MEMBERS ARE COVERED BY CITY OF HOPE'S APPLICABLE CONFLICT OF INTEREST POLICIES. DETERMINATIONS AS TO WHETHER A CONFLICT OF INTEREST EXIST AND REVIEW OF CONFLICT DISCLOSURES ARE MADE BY THE CHIEF RISK OFFICER, GENERAL COUNSEL AND, AS APPLICABLE, THE CHAIR OF THE BOARD OR BOARD OF DIRECTORS OR THE CONFLICT OF INTEREST AND COMMITMENT COMMITTEE, BASED UPON THE CATEGORY OF PERSON MAKING THE DISCLOSURE. RESTRICTIONS IMPOSED ON PERSONS WITH A CONFLICT VARY, BASED UPON THE FACTS. RESTRICTIONS MAY INCLUDE: PROHIBITION FROM PARTICIPATING IN A GOVERNING BODY'S DELIBERATIONS AND VOTING ON A GIVEN TRANSACTION OR SET OF TRANSACTIONS; RECUSAL FROM THE DECISION-MAKING PROCESS RELATING TO BUSINESS TRANSACTIONS (E.G., PURCHASING DECISIONS); AND PROHIBITION FROM PARTICIPATING AS A PRINCIPAL INVESTIGATOR IN RESEARCH; DISCLOSURE OF FINANCIAL INTEREST IN RESEARCH STUDY INFORMED CONSENT FORMS AND PUBLICATIONS. MONITORING TRANSACTIONS FOR CONFLICTS OF INTEREST IS DONE THROUGH REQUIRED DISCLOSURES AND UPDATES BY PERSONS COVERED BY THE ORGANIZATION'S CONFLICT OF INTEREST POLICIES AND A CONCURRENT REVIEW OF SUCH DISCLOSURES AGAINST TRANSACTIONS. CITY OF HOPE POLICY PROVIDES FOR DISCIPLINARY ACTION AGAINST PERSONS COVERED BY THE CONFLICT OF INTEREST POLICIES WHO DO NOT COMPLY WITH POLICY REQUIREMENTS. FORM 990, PART VI, LINE 15A AND 15B THE EXECUTIVE COMPENSATION AND ORGANIZATIONAL DEVELOPMENT COMMITTEE OF THE CITY OF HOPE BOARD OF DIRECTORS ("COMMITTEE"), PURSUANT TO A DELEGATION OF AUTHORITY FROM THE CITY OF HOPE BOARD OF DIRECTORS, IS RESPONSIBLE FOR SETTING THE COMPENSATION OF THE CEO AND CERTAIN OTHER SENIOR EXECUTIVES OF CITY OF HOPE AND AFFILIATES. THE DIRECTORS ON THIS COMMITTEE ARE INDEPENDENT, AND DELIBERATION AND DECISION MAKING ARE SUBSTANTIATED IN THE MINUTES OF THE COMMITTEE'S MEETINGS. THE MINUTES ARE REVIEWED AND APPROVED AT THE NEXT MEETING OF THE COMMITTEE. AS PART OF THE DELIBERATION PROCESS, THE COMMITTEE RECEIVES ADVICE FROM AN INDEPENDENT, OUTSIDE COMPENSATION CONSULTANT WITH RESPECT TO EXECUTIVE COMPENSATION, COMPARABLE AND BENCHMARK DATA, COMPENSATION SURVEYS, AND CURRENT COMPENSATION PHILOSOPHY, STRUCTURE, AND ADMINISTRATION OF THE EXECUTIVE CASH COMPENSATION PROGRAMS AT CITY OF HOPE. THE COMMITTEE CARRIES OUT THE BOARD OF DIRECTORS' OVERALL RESPONSIBILITIES RELATING TO EXECUTIVE COMPENSATION. THE EXECUTIVE COMPENSATION PHILOSOPHY IS DESIGNED TO ASSIST IN ATTRACTING AND RETAINING THE CALIBER OF EXECUTIVES REQUIRED TO ENABLE ACHIEVEMENT OF THE HIGHEST LEVELS OF COMMUNITY BENEFIT, CLINCIAL CARE, QUALITY RESEARCH AND EFFICIENT PHILANTHROPIC DEVELOPMENT. THE EXECUTIVE COMPENSATION COMMITTEE TARGETS THE 50TH PERCENTILE OF BASE SALARY AND THE 75TH PERCENTILE OF TOTAL CASH OF THE MARKET IN WHICH CITY OF HOPE COMPETES FOR EXECUTIVES. A SUBSTANTIAL PORTION OF EXECUTIVE COMPENSATION IS LINKED DIRECTLY TO PERFORMANCE GOALS APPROVED IN ADVANCE BY THE EXECUTIVE COMPENSATION COMMITTEE. THESE GOALS ARE TIED TO THE PERFORMANCE OF CITY OF HOPE AND AFFILIATES, INCLUDING THE ATTAINMENT OF SPECIFIC BUSINESS OBJECTIVES FOR STRATEGIC AND FINANCIAL PERFORMANCE AS WELL AS NON-FINANCIAL MEASURES SUCH AS PATIENT SATISFACTION AND QUALITY OF PATIENT CARE. AS A CONSEQUENCE, PERFORMANCE COMPENSATION MAY VARY FROM YEAR TO YEAR. ADDITIONALLY, UNDER LIMITED CIRCUMSTANCES, THE BECKMAN RESEARCH INSTITUTE WILL PROVIDE QUALIFIED RELOCATION LOANS TO EMPLOYEES WHICH HAVE BEEN DISCLOSED IN THIS RETURN. THE COMMITTEE CONDUCTS COMPENSATION REVIEWS ANNUALLY AND THIS WAS LAST COMPLETED ON OCTOBER 5, 2011. THE COMPENSATION PROGRAMS AND RANGES FOR ALL OFFICERS AND KEY EMPLOYEES LISTED ON FORM 990, PART VII, SECTION A ARE REVIEWED BY THIS COMMITTEE. DISCLOSURES FORM 990, PART VI, SECTION C, LINE 19 BECKMAN RESEARCH INSTITUTE'S GOVERNING DOCUMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC, HOWEVER THE ORGANIZATION'S ARTICLES OF INCORPORATION ARE AVAILABLE FROM THE SECRETARY OF STATE. ITS AUDITED FINANCIAL STATEMENTS ARE AVAILABLE ON THE CITY OF HOPE WEBSITE, AND ITS CONFLICT OF INTEREST POLICIES ARE AVAILABLE BY WRITTEN REQUEST MADE TO THE CONFLICT OF INTEREST MANAGER. HOURS WORKED FORM 990, PART VII, COLUMN (B) FULL TIME EXEMPT EMPLOYEES GENERALLY WORK IN EXCESS OF 40 HOURS PER WEEK WHICH HAS BEEN REFLECTED IN PART VII OF FORM 990 WHICH REPORTS AN AVERAGE 60 HOURS PER WEEK. THE MEMBERS OF THE BOARD OF DIRECTORS ARE NOT COMPENSATED FOR SERVING ON THE BOARD. THE HOURS WORKED FOR EACH DIRECTOR IS AN ESTIMATE OF THE TIME SPENT PREPARING FOR AND ATTENDING MEETINGS OF THE BOARD OF DIRECTORS AND VARIOUS COMMITTEES OF THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS HELD 2 REGULARLY SCHEDULED MEETINGS DURING FISCAL YEAR 2011. THE COMMITTEES HAD VARYING NUMBERS OF MEETINGS DURING FISCAL YEAR 2011. THE FOLLOWING INDIVIDUALS HAVE SPLIT THEIR TIME BETWEEN ENTITIES AS INDICATED: MICHAEL A. FRIEDMAN, MD BECKMAN RESEARCH INSTITUTE 24 HOURS PER WEEK CITY OF HOPE 15 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 19 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK VIRGINIA OPIPARE BECKMAN RESEARCH INSTITUTE 14 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 41 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK ROBERT STONE BECKMAN RESEARCH INSTITUTE 6 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 15 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 36 HOURS PER WEEK DENNIS F. RUSCH BECKMAN RESEARCH INSTITUTE 14 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 41 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK GARY CONNER BECKMAN RESEARCH INSTITUTE 14 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 41 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK GREG SCHETINA BECKMAN RESEARCH INSTITUTE 14 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 41 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK VALERIE BINGHAM BECKMAN RESEARCH INSTITUTE 14 HOURS PER WEEK CITY OF HOPE 3 HOURS PER WEEK CITY OF HOPE NATIONAL MEDICAL CENTER 41 HOURS PER WEEK CITY OF HOPE MEDICAL FOUNDATION 2 HOURS PER WEEK WHILE ROBERT POWELL IS LISTED AS HAVING COMPENSATION FROM A RELATED ORGANIZATION THE COMPENSATION IS ASSOCIATED WITH A VACATION AND HOLIDAY PAYOUT AND OTHER TERMINATION BENEFITS. THE COMPENSATION IS NOT DUE TO HOURS WORKED FOR, OR DEVOTED TO, THE RELATED ORGANIZATION. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 5 OTHER CHANGES IN NET ASSETS ARE ATTRIBUTABLE TO: UNREALIZED LOSSES ON INVESTMENTS ($31,464,203) UNREALIZED LOSSES ON INTEREST RATE SWAP AGREEMENT ($428,197) TOTAL ($31,892,400) UNREALIZED GAINS AND LOSSES ARE NOT RECORDED FOR TAX PURPOSES, BUT ARE RECORDED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THE ORGANIZATION UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. AUDITED FINANCIAL STATEMENTS FORM 990, PART XII, LINE 2 AUDITED CONSOLIDATED FINANCIAL STATEMENTS ARE ISSUED FOR THE CITY OF HOPE AND AFFILIATES. NO STAND ALONE AUDITS ARE PERFORMED OR ISSUED FOR THE BECKMAN RESEARCH INSTITUTE. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS ARE REVIEWED ANNUALLY BY THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS BEFORE FINALIZATION AND ISSUANCE. 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