2012-05-09T16:27:40-05:00 2011-06-30 PARENTEBEARD LLC 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2010-07-01 232216041 GOOD SHEPHERD REHABILITATION NETWORK GOOD 6107763303 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 DANIEL C CONFALONE 6107763303 2012-04-30 1 JULIUS GREEN CPA 2159720701 2010 2016-02-24 21:20:13Z DANIEL C CONFALONE GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 65640365 0 X WWW.GOODSHEPHERDREHAB.ORG X 1908 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 18 14 0 282 210599 209099 4688896 3468259 43167402 46120860 4583209 6279779 1178555 1322105 53618062 57191003 2166902 2058601 0 0 26362509 28910390 39000 39000 2280980 22802923 22251179 51371334 53259170 2246728 3931833 238885631 286837775 141629405 148960594 97256226 137877181 X GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION." 0 0 36425700 2058601 45804045 GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), BASED IN ALLENTOWN, PENNSYLVANIA, IS A NATIONALLY RECOGNIZED REHABILITATION LEADER, OFFERING A CONTINUUM OF CARE FOR PEOPLE WITH PHYSICAL AND COGNITIVE DISABILITIES AND SPECIALIZING IN ASSISTIVE AND REHABILITATION TECHNOLOGY.MORE THAN 46,000 PEOPLE CAME TO GOOD SHEPHERD'S LEHIGH VALLEY-BASED FACILITIES IN FISCAL YEAR 2011. SPECIALIZED INPATIENT AND OUTPATIENT POST-ACUTE CARE PROGRAMS OFFERED BY GSRN INCLUDE: STROKE, ORTHOPEDICS, BRAIN INJURY, SPINE AND JOINT PAIN, SPINAL CORD INJURY, PEDIATRICS, MULTIPLE SCLEROSIS AND AMPUTATION. GOOD SHEPHERD OPERATES: 21 OUTPATIENT SITES; 5 INPATIENT SITES; A LONG-TERM ACUTE CARE HOSPITAL; 2 LONG-TERM CARE HOMES FOR PEOPLE WITH SEVERE DISABILITIES; AN INDEPENDENT LIVING FACILITY; AND A WORK SERVICES DIVISION THAT PROVIDES EMPLOYMENT TRAINING AND JOB PLACEMENT.GOOD SHEPHERD ALSO IS THE MAJORITY OWNER OF A JOINT VENTURE WITH PENN MEDICINE IN PHILADELPHIA, PENNSYLVANIA. GOOD SHEPHERD PENN PARTNERS ("GSPP") PROVIDES THE PHILADELPHIA REGION WITH A CONTINUUM OF POST-ACUTE CARE THAT INCLUDES INPATIENT AND OUTPATIENT REHABILITATION AND LONG-TERM ACUTE CARE. TEN GSPP PENN THERAPY & FITNESS LOCATIONS PROVIDE OUTPATIENT REHABILITATION SERVICES THROUGHOUT THE GREATER PHILADELPHIA AREA, WHILE PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY SERVICES ARE PROVIDED WITHIN PENN MEDICINE'S THREE ACUTE-CARE HOSPITALS. APPROXIMATELY 16,000 PERSONS IN THE GREATER PHILADELPHIA AREA RECEIVED CARE IN FISCAL YEAR 2011.GSRN WAS FOUNDED IN 1908 WHEN THE REV. JOHN AND ESTELLA RAKER INVITED A DISABLED ORPHAN NAMED VIOLA INTO THEIR ALLENTOWN, PENNSYLVANIA HOME. GSRN IS AFFILIATED WITH THE EVANGELICAL LUTHERAN CHURCH IN AMERICA AND PROVIDES REHABILITATION SERVICES AT MORE THAN 30 LOCATIONS IN 8 EASTERN PENNSYLVANIA COUNTIES.GOOD SHEPHERD'S MISSION IS: "MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE AND COMPASSION."GSRN IS THE PARENT ORGANIZATION OF 6 TAX-EXEMPT AFFILIATES THAT OFFER MANY LEVELS OF REHABILITATION CARE. GSRN IS ALSO THE PARENT ORGANIZATION OF ONE TAXABLE AFFILIATE THAT IS A SELF-INSURANCE COMPANY. AS THE PARENT ORGANIZATION, GSRN OPERATES ALL CORPORATE ADMINISTRATIVE FUNCTIONS FOR THE GOOD SHEPHERD AFFILIATES, INCLUDING BUT NOT LIMITED TO ADMINISTRATION, DIETARY, FINANCE, FUNDRAISING, HUMAN RESOURCES, INFORMATION SYSTEMS, MAINTENANCE, MARKETING AND PASTORAL CARE. 36425700 1 1 0 0 0 0 0 0 1 1 1 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 X 202 0 1 0 1 1 0 0 0 0 0 0 0 0 0 X 18 14 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA FL MN X DANIEL C CONFALONE SVP FINANCECF 6107763303 GOOD SHEPHERD PLAZA 850 SOUTH 5TH ALLENTOWN PA 18103 X SCOTT A BAKER 0.30 X X 0 0 0 SANDRA L BODNYK 0.40 X X 0 0 0 PATRICK J BRENNAN MD 0.30 X 0 0 0 ADDIE J BUTLER EDD 0.30 X 0 0 0 DAVID G DECAMPLI 0.70 X X 0 0 0 RICHARD E DROBNICKI 0.70 X X 0 0 0 ROBERT E GADOMSKI 0.30 X 0 0 0 MICHAEL GOLDNER DO 0.20 X 0 0 0 ELSBETH G HAYMON 0.30 X 0 0 0 KATHERINE E HILGERT 0.20 X 0 0 0 SANDRA JARVA WEISS 0.20 X 0 0 0 JAAN PETER NAKTIN MD 0.20 X 0 0 0 GERALD A NAU 0.20 X 0 0 0 EDITH D RITTER 0.20 X 0 0 0 GARY R SCHMIDT 0.30 X 0 0 0 THE REV DAVID R STROBEL 0.20 X 0 0 0 DANIEL J WILSON PHD 0.30 X 0 0 0 SARA T GAMMON 30.00 X X 501846 0 192186 DANIEL C CONFALONE 22.00 X 280650 0 35311 PHILLIP R BRYANT 7.50 X 341079 0 46991 ANTHONY R BONGIOVANNI 22.00 X 217963 0 96197 SAMUEL A MIRANDA JR 10.00 X 205303 0 77371 HAROLD M TING 30.00 X 190527 0 27173 LEIGHTON B MCKEITHEN III 30.00 X 164186 0 21194 FRANK J HYLAND 30.00 X 150486 0 18553 DAVID F LYONS 30.00 X 150194 0 20931 RONALD J PETULA 22.00 X 133916 0 19672 2336150 0 555579 17 0 1 0 SODEXHO OPERATIONS LLC 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 DIETARY/FOOD SERVICES 1719796 EASTON COACH COMPANY 1200 CONROY PLACE EASTON PA 18040 TRANSPORTATION SERVICES 505057 HCSC LAUNDRY PO BOX 25092 LEHIGH VALLEY PA 18002 LAUNDRY SERVICES 365053 MILLER MILLER AND MCLACHLAN INC 1249 NEWPORT AVENUE NORTHAMPTON PA 18067 GENERAL CONTRACTOR 338332 FINANCIAL RECOVERIES 200 EAST PARK DRIVE SUITE 100 MOUNT LAUREL NJ 08054 COLLECTION SERVICES 310325 20 32788 3435471 5697 3468259 MANAGEMENT FEES 561000 45804045 45804045 HEALTH NETWORK LABS RE 621500 316815 316815 46120860 5506148 5506148 137585 243801 -106216 -106216 -106216 8978663 529 8205561 773102 529 773631 773631 EXPENSE REIMBURSEMENT 900099 1196828 1196828 PROFESSIONAL SERVICES 900099 179494 179494 MISCELLANEOUS REVENUE 900099 44466 44466 7533 7533 1428321 57191003 45804045 210599 7708100 2058601 2058601 1994898 670744 1324154 14078407 7446961 5914157 717289 3758217 3625261 83697 49259 8012420 7074819 839781 97820 1066448 576905 438723 50820 188376 182376 6000 140570 140570 39000 39000 603514 603514 7018953 4038295 2854023 126635 1492388 806004 414129 272255 1214943 1198494 16449 102602 33401 60923 8278 4721 4721 5695715 5695715 2355223 2284316 70907 1441353 13756 1427597 CORPORATE ALLOCATION 744525 19628 724897 REPAIRS & MAINTENANCE 660015 658278 1737 DUES & SUBSCRIPTIONS 172555 32563 137073 2919 FOOD 104445 74919 25525 4001 UBI TAX 90696 90696 220585 117040 -7355 110900 53259170 36425700 14552490 2280980 1046924 1934640 1852278 1349315 79761 147661 171901 224556 21882029 12357696 10257984 9524333 123823742 152029998 77034068 94222856 24618973 27404416 238885631 286837775 5605528 6147471 119756001 117007178 648000 972000 15619876 24833945 141629405 148960594 X 64119061 101432915 8315625 9906476 24821540 26537790 97256226 137877181 238885631 286837775 X 3931833 36689122 X X 0 1 1 X 1 1 X 6422146 7917385 3576315 4688896 3468259 26073001 6422146 7917385 3576315 4688896 3468259 26073001 26073001 4991806 7228768 6483150 4783360 5506148 28993232 277503 210099 487602 5405 4970 1280505 1428321 2719201 58273036 200429979 0.44740 0.48010 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS REVENUE CAFE REVENUE PROFESSIONAL SVC FEES EXPENSE REIMBURSEMENT MEDICAL RECORDS RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 18523874 229597 2262789 886817 20129443 17900332 643738 913701 933897 18523874 20587042 654587 -2583126 758171 17900332 0.14000 0.86000 0.00000 0 0 820014 820014 4656159 2089686 2566473 128622 76101 52521 15795493 9863694 5931799 481741 328215 153526 9524333 46078582 C ALTERNATIVE INVESTMENTS 28163045 F ALTERNATIVE INVESTMENTS 19981229 C 94222856 GUARANTEED INCOME INVESTMENT CONTRACT 2240558 BENEFICIAL INTEREST IN PERPETUAL TRUSTS 10657064 BENEFICIAL INTEREST IN CHARITABLE REMAINDER TRUSTS 11471487 DEFERRED FINANCING COSTS, NET 3035307 27404416 CHARITABLE GIFT ANNUITIES 4564929 WORKERS' COMPENSATION 1594928 ANNUITIES PAYABLE 208826 DEFINED CONTRIBUTION PLAN LIABILITY 635715 AMOUNTS DUE TO AFFILIATES 13857270 DERIVATIVE FINANCIAL INSTRUMENT 3972277 24833945 57191003 53259170 3931833 26408701 10280421 36689122 40620955 91461811 26408701 7935121 34343822 57117989 73014 73014 57191003 50840856 243801 243801 50597055 603514 2058601 2662115 53259170 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: GOOD SHEPHERD'S ENDOWMENTS PROVIDE INCOME IN PERPETUITY FOR PROGRAMS AND SERVICES, INCLUDING: RESEARCH, TECHNOLOGY, PEDIATRICS, LONG TERM CARE OPERATIONS AND RECREATION, EDUCATION, GENERAL AND NEUROREHABILITATION PROGRAMS, WORK SERVICES, AND FOR THE GENERAL SUPPORT OF GOOD SHEPHERD'S OPERATIONS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. GOOD SHEPHERD'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. PART XI, LINE 8 - OTHER ADJUSTMENTS: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 6,764,521. INEFFECTIVENESS OF DERIVATIVE FINANCIAL INSTRUMENT 616,905. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 93,257. PENSION LIABILITY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 369,660. OTHER CHANGES IN UNRESTRICTED NET ASSETS 541,782. OTHER CHANGES IN TEMPORARILY RESTRICTED NET ASSETS -195,361. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 952,373. VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS 1,454,099. REDUCTION IN EQUITY TO REPORT HEALTH NETWORK LABS REVENUE -316,815. PART XII, LINE 2D - OTHER ADJUSTMENTS: INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 6,764,521. INEFFECTIVENESS OF DERIVATIVE FINANCIAL INSTRUMENT 616,905. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 93,257. PENSION LIABILITIY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 369,660. OTHER CHANGES IN UNRESTRICTED NET ASSETS 541,782. OTHER CHANGES IN TEMPORARILY RESTRICTED NET ASSETS -195,361. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 952,373. VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS 1,454,099. TRANSFERS TO AFFILIATES -2,058,601. INVESTMENT EXPENSES -603,514. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -243,801. HEALTH NETWORK LABS REV 316,815. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 243,801. PART XIII, LINE 4B - OTHER ADJUSTMENTS: TRANSFERS TO AFFILIATES 2,058,601. X X X X 1 SCHULTZ AND WILLIAMS 325 CHESTNUT STREET SUITE 700 PHILADELPHIA PA 19106 DIRECT MAIL CONSULTING 0 0 39000 -39000 39000 -39000 PA FL MN EXPLANATION OF FUNDRAISING PAYMENTS SCHEDULE G, PART I, LINE 2B, COLUMN (V) THE TOTAL AMOUNT PAID TO SCHULTZ AND WILLIAMS FOR FISCAL YEAR JUNE 30, 2011 WAS $235,996. THE $39,000 REPORTED IN SCHEDULE G, PART I RELATES TO DIRECT MAIL CONSULTING. THE REMAINING PAYMENTS MADE TO SCHULTZ AND WILLIAMS WERE FOR OTHER SERVICES SUCH AS CREATIVE FEES, PRINTING, LETTERSHOP, LIST ACQUISITION AND MANAGEMENT, MERGE AND PURGE, SHIPPING AND POSTAGE. SCHULTZ AND WILLIAMS INVOICES ARE VERY SPECIFIC AND INDICATE THE AMOUNT BILLED FOR EACH ACTIVITY. THE AMOUNT OF CONTRIBUTIONS RECEIVED AS A RESULT OF THIS CONSULTING COULD NOT BE EASILY DETERMINED. 1 GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 232215800 501(C)(3) 393270 N/A N/A CHARITABLE ACTIVITIES GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH STREET ALLENTOWN PA 18103 231371947 501(C)(3) 1587587 N/A N/A CHARITABLE ACTIVITIES GOOD SHEPHERD WORKSHOPVOCATIONAL SERVICES INC 1901 LEHIGH STREET ALLENTOWN PA 18103 232215801 501(C)(3) 77744 N/A N/A CHARITABLE ACTIVITIES 3 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ALL RECIPIENTS ARE AFFILIATED TAX-EXEMPT ORGANIZATIONS. GSRN SERVES AS THE PARENT ENTITY AND IS AWARE OF THE OPERATIONS AND USE OF FUNDS RECEIVED. X 1 1 X X X X X X 1 0 0 1 1 1 1 0 0 SARA T GAMMON 501846 0 0 0 0 0 175460 0 16726 0 694032 0 0 0 DANIEL C CONFALONE 280650 0 0 0 0 0 19726 0 15585 0 315961 0 0 0 PHILLIP R BRYANT 341079 0 0 0 0 0 23974 0 23017 0 388070 0 0 0 ANTHONY R BONGIOVANNI 217963 0 0 0 0 0 69226 0 26971 0 314160 0 0 0 SAMUEL A MIRANDA JR 205303 0 0 0 0 0 45612 0 31759 0 282674 0 0 0 HAROLD M TING 190527 0 0 0 0 0 13392 0 13781 0 217700 0 0 0 LEIGHTON B MCKEITHEN III 47878 0 0 0 116308 0 11540 0 9654 0 185380 0 0 0 FRANK J HYLAND 150486 0 0 0 0 0 10577 0 7976 0 169039 0 0 0 DAVID F LYONS 150194 0 0 0 0 0 10557 0 10374 0 171125 0 0 0 RONALD J PETULA 133916 0 0 0 0 0 9413 0 10259 0 153588 0 0 0 PART I, LINE 1A GOOD SHEPHERD DOES NOT PAY ANY DUES ON BEHALF OF CEO, SARA GAMMON, DIRECTLY TO A SOCIAL CLUB. GOOD SHEPHERD REIMBURSES THE CEO FOR CERTAIN SOCIAL CLUB DUES RELEVANT IN PURSUING THE OVERALL MISSION OF GOOD SHEPHERD. THESE EXPENSES ARE ACCOUNTED FOR UNDER AN ACCOUNTABLE REIMBURSEMENT PLAN. THE AMOUNT OF THIS REIMBURSEMENT IS INCLUDED IN MS. GAMMON'S TAXABLE COMPENSATION. PART I, LINE 4A LEIGHTON B. MCKEITHEN, III, ONE OF THE TOP FIVE HIGHEST COMPENSATED EMPLOYEES, RECEIVED A SEVERANCE PAYMENT OF $116,308 IN CALENDAR YEAR 2010. PART I, LINE 5 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2011, A PERFORMANCE PAYMENT WAS ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR. PART I, LINE 6 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT ONLY WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FOR FISCAL YEAR 2011, A PERFORMANCE PAYMENT WAS ACHIEVED. THIS IS NOT GUARANTEED EACH YEAR. LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 5248053C0 2004-06-23 32011735 FINANCE CAPITAL PRJCTS; ESTABLISH DEBT SERV RESERVE; PAY COSTS OF BONDS 1 0 0 LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 5248058S0 2007-11-15 80762939 REFUND 1997 BONDS, FINANCE CAP INVSTMTS, ESTABLISH DEBT SERV RSRV; PAY COSTS 1 0 0 LEHIGH COUNTY GENERAL PURPOSE AUTHORITY 911886539 52480RAB6 2008-04-23 13015000 TO REFUND THE 2000 BONDS AND PAY COSTS OF 2008 BONDS 1 0 0 32011735 2237206 637720 29136809 2007 0 0 1 1 80762939 6083375 26349100 1276006 1295173 45712973 46312 2009 1 0 0 1 13015000 12760000 177306 52318 25376 2008 1 0 0 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 0 1 BANK OF NEW YORK MELLON 10.300000000000 1 0 0 0 1 1 MERRILL LYNCH CAPITAL SERVICES 20.900000000000 0 0 0 0 0 0 1 1 MERRILL LYNCH CAPITAL SERVICES 26.500000000000 0 0 0 0 0 FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE GOOD SHEPHERD REHABILITATION NETWORK'S ("GSRN") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSRN ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A TWO-THIRDS OF THE ORGANIZATION'S TRUSTEES SHALL BE ELECTED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S BYLAWS MAY BE ALTERED, AMENDED, OR REPEALED BY THE BOARD. IN ADDITION, THE AMENDMENT SHALL BE APPROVED BY THE SYNOD COUNCIL OF THE NORTHEASTERN PENNSYLVANIA SYNOD OF THE EVANGELICAL CHURCH IN AMERICA BEFORE TAKING EFFECT. FORM 990, PART VI, SECTION B, LINE 11 THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS IS PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE GOOD SHEPHERD REHABILITATION NETWORK BOARD DELEGATES RESPONSIBILITY FOR FOLLOWING ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES/EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD. THIS COMMITTEE IS CHARGED WITH ADMINISTRATION OF COMPENSATION PRACTICES FOR OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THIS COMMITTEE SELECTED AND USES AN INDEPENDENT CONSULTING FIRM SPECIALIZING IN HEALTHCARE EXECUTIVE COMPENSATION MATTERS AND USES COMPARABLE COMPETITIVE MARKET DATA IN THEIR ANALYSIS. THE SERVICES OF AN INDEPENDENT COMPENSATION CONSULTANT (IHS) WERE UTILIZED AND THEIR LATEST REPORT TO THE HUMAN RESOURCE COMPENSATION COMMITTEE WAS DATED AUGUST 30, 2011. COMMITTEE MEETINGS ARE HELD ON AN ONGOING BASIS AND ARE DOCUMENTED IN DETAIL. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE PUBLISHED TO THE ORGANIZATION'S WEBSITE AT LEAST ANNUALLY. THE GOVERNING DOCUMENTS AND POLICIES ARE AVAILABLE UPON REQUEST. FORM 990, PART VII, SECTION A: SARA T. GAMMON, DANIEL C. CONFALONE, PHILLIP R. BRYANT, ANTHONY R. BONGIOVANNI, AND SAMUEL A. MIRANDA, JR. ARE OFFICERS/KEY EMPLOYEES FOR ALL 7 ENTITIES WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK. THEY EACH DEVOTE APPROXIMATELY 60 HOURS PER WEEK TO THE ENTIRE GROUP OF ENTITIES. THE AVERAGE HOURS LISTED IN COLUMN (B) FOR EACH INDIVIDUAL REPRESENTS THE APPROXIMATE PORTION OF 60 HOURS DEVOTED TO THE GOOD SHEPHERD REHABILITATION NETWORK PER WEEK. THE COMPENSATION AND BENEFIT INFORMATION REPORTED IN COLUMNS (D) AND (F) REPRESENTS WHAT EACH INDIVIDUAL EARNS FOR THEIR TIME SPENT ON THE ENTIRE GROUP OF 7 ENTITIES. INFORMATION FOR THE TOP FIVE HIGHEST COMPENSATED EMPLOYEES IS REPORTED IN THE SAME MANNER, AS THESE INDIVIDUALS ALSO DEVOTE APPROXIMATELY 60 HOURS PER WEEK TO THE ENTIRE GROUP OF ENTITIES. THE BOARD MEMBERS ALSO DEVOTE TIME TO FIVE OTHER ORGANIZATIONS IN THE GROUP. TOTAL TIME SPENT BY BOARD MEMBERS RANGES FROM .75 HOURS PER WEEK TO 3.25 HOURS PER WEEK. THE AVERAGE HOURS LISTED IN COLUMN (B) FOR EACH BOARD MEMBER REPRESENTS THE APPROXIMATE PORTION OF HOURS DEVOTED TO THE GOOD SHEPHERD REHABILITATION NETWORK PER WEEK. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 26,408,701. INCOME ON INVESTMENT IN UNCONSOLIDATED SUBSIDIARY 6,764,521. INEFFECTIVENESS OF DERIVATIVE FINANCIAL INSTRUMENT 616,905. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 93,257. PENSION LIABILITY ADJUSTMENT - UNCONSOLIDATED SUBSIDIARY 369,660. OTHER CHANGES IN UNRESTRICTED NET ASSETS 541,782. OTHER CHANGES IN TEMPORARILY RESTRICTED NET ASSETS -195,361. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 952,373. VALUATION GAIN, BENEFICIAL INTEREST IN PERPETUAL TRUSTS 1,454,099. REDUCTION IN EQUITY TO REPORT HEALTH NETWORK LABS REVENUE -316,815. TOTAL TO FORM 990, PART XI, LINE 5: 36,689,122. FORM 990, PART XI, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. 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