2011-05-11T10:13:54-05:00 2010-06-30 Deloitte Tax LLP 250 East Fifth Street Suite 1900 Cincinnati OH 45202 990 2009-07-01 310537130 The Children's Hospital CHIL 5136368778 3333 BURNET AVENUE CINCINNATI OH 452293039 SCOTT J HAMLIN 5136368778 2011-05-06 1 5137847100 2009 2016-02-24 21:20:13Z ROBERT DH ANNING 3333 BURNET AVENUE CINCINNATI OH 452293039 322205186 0 X N/A X 1883 OH TO SUPPORT CHILDREN'S HOSPITAL MEDICAL CENTER 18 16 0 18 0 0 1029829 1992153 0 -50896662 56409707 0 -49866833 58401860 64185265 78544336 0 0 0 0 1031695 1101813 65216960 79646149 -115083793 -21244289 1062702930 1115874574 13059940 89000 1049642990 1115785574 TO PROVIDE FINANCIAL SUPPORT TO TAX-EXEMPT ORGANIZATIONS LOCATED IN HAMILTON COUNTY, OHIO THAT ARE DEDICATED TO THE TREATMENT AND RESEARCH OF DISEASES OR DISORDERS AFFECTING CHILDREN. 0 0 78544336 78544336 0 THE CHILDREN'S HOSPITAL (TCH) IS AN IRC SEC. 501(C)(3) TAX-EXEMPT ORGANIZATION WHOSE SOLE PURPOSE IS TO PROVIDE CHARITABLE FINANCIAL SUPPORT TO CHARITABLE ORGANIZATIONS IN HAMILTON COUNTY, OHIO THAT PARTICIPATE IN THE TREATMENT AND/OR RESEARCH OF DISEASES OR DISORDERS AFFECTING CHILDREN.SUCH CHARITABLE FINANCIAL SUPPORT IS PROVIDED PRIMARILY THROUGH EXPENDABLE INCOME GENERATED BY INVESTMENTS OF ENDOWMENT AND OTHER FUNDS RECEIVED BY TCH. IT IS THE POLICY OF TCH TO INVEST GIFTS AND BEQUESTS RECEIVED AND TO REINVEST FUNDS OBTAINED FROM THE SALES OF INVESTMENTS IN ORDER TO ENHANCE FUTURE EXPENDABLE INCOME.DURING THE TAX YEAR JULY 1, 2009 TO JUNE 30, 2010, IN FULFILLMENT OF THIS CHARITABLE MISSION, TCH PROVIDED FINANCIAL SUPPORT AMOUNTING TO $78,544,336 TO CHILDREN'S HOSPITAL MEDICAL CENTER (CHMC) TO SUPPORT ITS CHARITABLE EFFORTS IN PEDIATRIC PATIENT CARE AND RELATED RESEARCH. OF THE SUPPORT, $68,849,150 WENT TOWARD SUPPORTING THE RESEARCH EFFORTS OF CHMC, WHILE $9,695,186 WENT TOWARD FUNDING THE COSTS OF PROVIDING PATIENT CARE.BECAUSE OF THE DIRECT FINANCIAL SUPPORT OF TCH, CHMC HAS BEEN SUCCESSFUL IN REMAINING A LOWER COST OPTION IN THE COMMUNITY FOR SPECIALIZED PEDIATRIC HEALTH CARE WHILE MAINTAINING A NATIONAL REPUTATION AS A LEADER IN CLINICAL PEDIATRIC RESEARCH AND BASIC SCIENCE RESEARCH. 78544336 1 1 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 18 16 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X MICHAEL L BAUER 5136368778 3333 BURNET AVENUE CINCINNATI OH 452293039 X MR ROBERT DH ANNING 1.00 X X 0 0 0 MR LEE A CARTER 1.00 X X 0 0 0 MR THOMAS G CODY 1.00 X X 0 0 0 MR MICHAEL S CAMBRON 1.00 X X 0 0 0 MR SCOTT J HAMLIN 1.00 X X 0 779336 150718 MRS SHARRY ADDISON 1.00 X 0 0 0 MR LYNWOOD L BATTLE JR 1.00 X 0 0 0 MRS KATHARINE C DEWITT 1.00 X 0 0 0 MRS BARBARA FITCH 1.00 X 0 0 0 MR MICHAEL HIRSCHFELD ESQ 1.00 X 0 0 0 MS M DENISE KUPRIONIS 1.00 X 0 0 0 MRS PEGGY MATHILE 1.00 X 0 0 0 MR MANUEL D MAYERSON 1.00 X 0 0 0 MRS MARDIE OFF 1.00 X 0 0 0 MR GEOFFREY PLACE 1.00 X 0 0 0 WILLIAM K SCHUBERT MD 1.00 X 0 25000 0 JOHN STEINMAN 1.00 X 0 0 0 FELICIA WILLIAMS 1.00 X 0 0 0 0 804336 150718 0 0 1 0 FIFTH THIRD BANK 38 FOUNTAIN SQUARE PLAZA CINCINNATI OH 45263 INVESTMENT MANAGEMENT 641037 PNC BANK 201 EAST FIFTH STREET CINCINNATI OH 45202 INVESTMENT MANAGEMENT 279327 2 1992153 1992153 36116052 36116052 284096981 263803326 20293655 20293655 20293655 58401860 0 0 56409707 78544336 78544336 976159 976159 125654 125654 79646149 78544336 1101813 0 203435 6413278 1061415013 1105807568 1084482 3653728 1062702930 1115874574 13059940 89000 13059940 89000 X 429077743 439075101 620565247 676710473 1049642990 1115785574 1062702930 1115874574 X 0 1 1 X 0 X X X 0 0 0 CHMC 310833936 3 1 1 1 78544336 1 78544336 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 620565247 1805112 54390381 50267 676710473 819417841 1674366 -200483525 43435 620565247 1.00000 0 0 0 58401860 79646149 -21244289 77572859 9814014 87386873 66142584 135974719 77572859 77572859 58401860 0 58401860 79646149 0 79646149 0 79646149 Part V, Line 4: Description of Intended Use of Endowment Funds: THE CHILDREN'S HOSPITAL'S permanently restricted endowment funds are restricted by donors to be maintained by THE CHILDREN'S HOSPITAL in perpetuity. Temporarily restricted endowment funds consist of the expendable investment income earned on permanently restricted net assets. THE CHILDREN'S HOSPITAL's intended use of endowment funds is to provide financial support to tax-exempt organizations located in Hamilton County, Ohio that are dedicated to the treatment and research of diseases or disorders affecting children. Part X: Description of Uncertain Tax Positions Under FIN 48: IN JULY 2006, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ISSUED ACCOUNTING STANDARDS CODIFICATION TOPIC (ASC 740), "INCOME TAXES", WHICH CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAX POSITIONS. ASC 740 PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF AN INCOME TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. ASC 740 ALSO PROVIDES GUIDANCE ON DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, AND ADDITIONAL DISCLOSURES. THE CORPORATION ADOPTED THE PROVISIONS OF ASC 740 IN FISCAL 2010. THE ADOPTION OF ASC 740 DID NOT HAVE A MATERIAL IMPACT ON THE FINANCIAL STATEMENTS. THE FOLLOWING ARE THE TAX YEARS THAT REMAIN SUBJECT TO EXAMINATION BY MAJOR TAX JURISDICTION: FEDERAL 2007 TO 2010 STATE 2007 TO 2010 Part XI, Line 8 - Other Adjustments: trANSFER FROM CHILDREN'S HOSPITAL MEDICAL CENTER: 9814014. 1 CHILDREN'S HOSPITAL MEDICAL CENTER 3333 BURNET AVENUE CINCINNATI OH 45229 310833936 501(C)(3) 68849150 RESEARCH ACTIVITIES CHILDREN'S HOSPITAL MEDICAL CENTER 3333 BURNET AVENUE CINCINNATI OH 45229 310833936 501(C)(3) 9695186 PATIENT CARE AND FUNDRAISING 1 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: SCHEDULE I, PART I, LINE 2: CHMC SENIOR MANAGEMENT SUBMITS A PROPOSAL FOR FUNDING TO THE TCH BOARD OF TRUSTEES. THE TCH BOARD REVIEWS THE PROPOSAL AND THEN MAKES A DETERMINATION AS TO WHAT RESEARCH, PATIENT CARE, AND FUNDRAISING PROJECTS WILL BE SUPPORTED WITH TCH FUNDING. UPON TCH BOARD APPROVAL, FUNDS ARE DISTRIBUTED TO CHMC. CHMC SENIOR MANAGEMENT PROVIDES PERIODIC UPDATES TO THE TCH BOARD OF TRUSTEES THROUGHOUT THE YEAR INDICATING HOW DONATED FUNDS ARE UTILIZED IN FURTHERANCE OF CHMC'S CHARITABLE PURPOSES. 0 1 0 0 0 0 0 0 0 MR SCOTT J HAMLIN 0 506025 0 146538 0 126773 0 128518 0 22200 0 930054 0 81201 Part I, Line 4a CERTAIN OFFICERS AND KEY EMPLOYEES OF CHMC, A RELATED ORGANIZATION TO TCH, HAVE ARRANGEMENTS WHICH PROVIDE FOR SUPPLEMENTAL RETIREMENT BENEFITS AS DESCRIBED IN IRC SEC. 457(F). DUE TO THE SUBSTANTIAL RISK OF FORFEITURE PROVISION, THESE ARRANGEMENTS ARE NON-VESTED AND THERE IS NO GUARANTEE THAT THESE OFFICERS AND FACULTY MEMBERS WILL EVER RECEIVE THESE BENEFITS. THE FOLLOWING IS A LISTING OF OFFICERS THAT RECEIVED A DEFERRAL, SUBJECT TO THE SUBSTANTIAL RISK OF FORFEITURE PROVISION, UNDER CHMC'S IRC SEC. 457(F) PLAN DURING THE YEAR (THESE AMOUNTS ARE INCLUDED IN THE TOTALS FOR SCHEDULE J, PART II, COLUMN C, DEFERRED COMPENSATION): 1. SCOTT HAMLIN - $104,018 THE FOLLOWING IS A LISTING OF OFFICERS THAT RECEIVED A PAYMENT UNDER CHMC'S IRC SEC. 457(F) PLAN DURING THE YEAR (THESE AMOUNTS ARE INCLUDED IN THE TOTALS FOR SCHEDULE J, PART II, COLUMN B(III) AND COLUMN F): 1. SCOTT HAMLIN - $81,201 Supplemental Information Part III THE CHILDREN'S HOSPITAL RELIED ON CHILDREN'S HOSPITAL MEDICAL CENTER ("CHMC"), A RELATED ORGANZIATION, TO ESTABLISH THE COMPENSATION OF INDIVIDUALS LISTED ON FORM 990, PART VII. CHMC USED ONE OR MORE OF THE METHODS DESCRIBED BELOW TO ESTABLISH AN APPROPRIATE LEVEL OF COMPENSATION: COMPENSATION COMMITTEE INDEPENDENT COMPENSATION CONSULTANT FORM 990 OF OTHER ORGANIZATIONS WRITTEN EMPLOYMENT AGREEMENT COMPENSATION SURVEY OR STUDY APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE Explanation of Benefits: ALL COMPENSATION AND BENEFITS REPORTED ON FORM 990, PART VII AND SCHEDULE J, PART II ARE PROVIDED BY CHILDREN'S HOSPITAL MEDICAL CENTER, A RELATED ENTITY TO TCH. The employee benefit plan contribution amountS LISTED ON SCHEDULE J, PART II may include one or more of the following benefits: 1. Elective employee deferrals under IRC Sec. 403(b) 2. Discretionary employer contributions under IRC Sec. 403(b) 3. Elective employee deferrals under IRC Sec. 457(b) 4. Elective employee deferrals under IRC Sec. 457(f) In addition to the retirement plan contributions disclosed on FORM 9909, PART VII AND SCHEDULE J, PART II, the following non-taxable employee welfare benefits were made available to the employed, compensated officers AND KEY EMPLOYEES listed on FORM 990, PART VII AND SCHEDULE J, PART II: 1. Health and dental insurance benefits 2. Group life insurance (portions of which are taxed) 3. Unemployment benefits 4. Disability benefits The officers AND KEY EMPLOYEES listed on FORM 990, PART VII AND SCHEDULE J, PART II are also eligible for any other available employee benefits. The organization's executives incur various travel and entertainment expenses in the conduct of their official duties as representatives of the organization. The organization has a written travel and entertainment expense reimbursement policy that complies with published IRS guidance. All executives are required To substantiate each travel and entertainment expense to the extent as stated in the travel and entertainment expense reimbursement policy. Form 990, Part VI, Section A, line 2 TOM CODY AND FELICIA WILLIAMS HAVE A BUSINESS RELATIONSHIP OUTSIDE OF TCH. Form 990, Part VI, Section B, line 11 THE CHILDREN'S HOSPITAL ("TCH") FORM 990 IS PREPARED BY SENIOR MANAGEMENT FROM CHILDREN'S HOSPITAL MEDICAL CENTER ("CHMC"), A RELATED ORGANIZATION. EXTERNAL TAX CONSULTANTS THEN REVIEW THE FORM 990 FOR COMPLETENESS AND ACCURACY. THE FORM 990 IS THEN MADE AVAILABLE TO ALL TCH BOARD MEMBERS IN ADVANCE OF FILING. Form 990, Part VI, Section B, line 12c ALL OF TCH'S BOARD MEMBERS RECEIVE AN ANNUAL QUESTIONNAIRE REQUESTING INFORMATION REGARDING FAMILY AND BUSINESS RELATIONSHIPS THAT COULD POTENTIALLY RESULT IN A CONFLICT OF INTEREST UNDER TCH'S CONFLICT OF INTEREST POLICY. ONCE THE QUESTIONNAIRES HAVE BEEN COMPLETED BY ALL OF TCH'S BOARD MEMBERS, THE QUESTIONNAIRES ARE REVIEWED AND IF TCH DETERMINES THAT A CONFLICT OF INTEREST EXISTS, TCH FOLLOWS THE PROVISIONS SET FORTH IN TCH'S CONFLICT OF INTEREST POLICY TO RESOLVE THE CONFLICT AND DETERMINES THE APPROPRIATE REPORTING TO BOARD COMMITTEES AND, IF REQUIRED, FORM 990 DISCLOSURE. Form 990, Part VI, Section B, line 15 TCH DOES NOT HAVE ANY EMPLOYEES. HOWEVER, TCH DOES HAVE A BOARD MEMBER THAT IS EMPLOYED BY CHMC, A RELATED ORGANIZATION. CHMC HAS A COMPENSATION COMMITTEE THAT ANNUALLY REVIEWS THE RECOMMENDATIONS OF CHMC MANAGEMENT REGARDING EMPLOYEE PERFORMANCE EVALUATION AND COMPENSATION ADJUSTMENTS FOR DISQUALIFIED PERSONS TO ENSURE THAT CHMC HAS COMPLIED WITH THE PROVISIONS OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER IRC SEC. 4958. Form 990, Part VI, Section C, line 19 TCH'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MAINTAINED ON FILE BY CHMC SENIOR MANAGEMENT AND ARE AVAILABLE TO THE PUBLIC UPON REQUEST EITHER IN-PERSON, BY TELEPHONE, OR BY WRITTEN REQUEST. FORM 990, PART VII NUMBER OF HOURS WORKED SCOTT HAMLIN IS EMPLOYED BY CHILDREN'S HOSPITAL MEDICAL CENTER, A RELATED ORGANIZATION. SCOTT DEVOTES AN AVERAGE OF 40 HOURS/WEEK FOR HIS DUTIES TO CHMC AND AFFILIATED ENTITIES. form 990, PART VII COMPENSATION PAID WILLIAM SCHUBERT, MD RECEIVES COMPENSATION FROM CINCINNATI CHILDREN'S HOSPITAL MEDICAL CENTER, A RELATED ORGANIZATION OF THE CHILDREN'S HOSPITAL. DR. SCHUBERT'S COMPENSATION REPORTED ON FORM 990, PART VII IS RELATED TO HIS EMPLOYMENT AT CINCINATI CHILDREN'S AND NOT FOR HIS DUTIES AS A TRUSTEE OF THE CHILDREN'S HOSPITAL. FORM 990, SCHEDULE R TRANSACTIONS WITH RELATED ORGANIZATIONS DURING THE TIME PERIOD COVERED BY THIS RETURN, THE CHILDREN'S HOSPITAL RECEIVED CERTAIN ACCOUNTING AND ADMINISTRATIVE SERVICES FROM CHILDREN'S HOSPITAL MEDICAL CENTER AT NO COST. THE VALUE OF THESE SERVICES IS AN UNSPECIFIED AMOUNT. CHILDREN'S HOSPITAL MEDICAL CENTER 3333 BURNET AVENUE CINCINNATI OH 45229 310833936 PEDIATRIC HEALTH CARE OH 501(C)(3) 3 N/A THE CHILDREN'S HOSPITAL FOUNDATION 3333 BURNET AVENUE CINCINNATI OH 45229 311327089 FUNDRAISING TO SUPPORT CHMC OH 501(C)(3) 7 CHMC CHMC COMMUNITY HEALTH SERVICES NETWORK 3333 BURNET AVENUE CINCINNATI OH 45229 311459815 PEDIATRIC HEALTH CARE OH 501(C)(3) 9 CHMC CHILDREN'S MEDICAL SERVICES INC 3333 BURNET AVENUE CINCINNATI OH 45229 311454024 PEDIATRIC HEALTH CARE OH 501(C)(3) 11A CHMC 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 CHILDREN'S HOSPITAL MEDICAL CENTER B 78544336 CHILDREN'S HOSPITAL MEDICAL CENTER C 838478 chilDREN'S HOSPITAL MEDICAL CENTER R 9708610 the CHILDREN'S HOSPITAL FOUNDATION R 105404