2011-11-11T13:06:57-06:00 2010-12-31 990 2010-01-01 411952989 SISTER KENNY FOUNDATION SIST 6122620660 P O BOX 43 INTERNAL ZIP 10890 MINNEAPOLIS MN 554400043 LAURIE LAFONTAINE 6122620660 2011-11-10 2010 2016-03-07 17:11:31Z SANDRA LANDBERG 2925 CHICAGO AVENUE MINNEAPOLIS MN 55407 5438057 0 X WWW.ALLINA.COM/AHS/SKI.NSF X 1999 MN TO RAISE, STEWARD AND DISTRIBUTE PHILANTHROPIC FUNDS TO SUPPORT THE SISTER KENNY REHAB. INSTITUTE. 13 12 0 27 0 0 807311 698063 0 0 -361718 255379 0 -38749 445593 914693 634909 443534 0 0 0 0 6686 3523 68684 321488 296628 963083 743685 -517490 171008 7517804 8022487 0 0 7517804 8022487 X THE SISTER KENNY FOUNDATION RAISES, STEWARDS AND DISTRIBUTES PHILANTHROPIC FUNDS TO SUPPORT THE QUALITY AND INNOVATIVE REHABILITATION SERVICES OF THE SISTER KENNY REHABILITATION INSTITUTE (SKRI). THE FOUNDATION SEEKS TO ENHANCE SKRI'S CAPACITY TO BUILD ON ITS TRADITION AS A LEADER AND INNOVATOR IN REHABILITATION MEDICINE RESEARCH.SKRI PROVIDED INPATIENT AND OUTPATIENT SERVICES TO MORE THAN 60,000 ADULTS AND CHILDREN IN 2010. SERVICES WERE PROVIDED AT 8 HOSPITALS IN THE GREATER MINNEAPOLIS AND ST. PAUL METROPOLITAN AREA (ABBOTT NORTHWESTERN, BUFFALO, CAMBRIDGE, NEW ULM, OWATONNA, UNITED, MERCY AND UNITY HOSPITALS), AT 19 SISTER KENNY SPORTS AND PHYSICAL THERAPY CENTERS, AND AT 3 SISTER KENNY SPINE CENTERS LOCATED THROUGHOUT THE GREATER METRO AREA. THE INSTITUTE IS DEDICATED TO RESTORING AND ENHANCING QUALITY OF LIFE FOR INDIVIDUALS WHO HAVE EXPERIENCED STROKE, SPINAL CORD OR BRAIN INJURY, OR FOR THOSE CHALLENGED BY A RANGE OF NEUROLOGICAL OR MUSCULOSKELETAL DISORDERS. 0 0 285720 285720 0 SISTER KENNY RESEARCH CENTEROF THE GRANTS AWARDED IN 2010, THE SISTER KENNY RESEARCH CENTER AND ITS RELATED RESEARCH PROJECTS WERE APPROVED FOR $285,720 IN FUNDING. THE RESEARCH CENTER, ESTABLISHED IN 2007, SERVES AS A LABORATORY FOR CLINICAL RESEARCH, INNOVATION AND EDUCATION WITH THE GOAL OF OPTIMIZING THE CARE AND QUALITY OF LIFE FOR ALL PERSONS, BUT IN PARTICULAR THOSE LIVING WITH DISABILITIES. THE RESEARCH CENTER HAS ACHIEVED SIGNIFICANT MILESTONES INCLUDING THE DEVELOPMENT OF PATENTABLE TECHNOLOGIES, AS WELL AS ESTABLISHING EDUCATIONAL AND ENTREPRENEURIAL COLLABORATIVE RELATIONSHIPS SKRC HAS AN ESTABLISHED FACULTY OF TWENTY ACTIVE RESEARCHERS & CLINICIANS INCLUDING THERAPISTS AND PHYSICIANS, WHO CONDUCT RESEARCH ON BRAIN INJURIES, SPINAL CORD INJURIES, STROKE REHABILITATION AND CANCER REHABILITATION, AS WELL AS INJURY AND FALL PREVENTION. THEIR RESEARCH HAS LED TO THE DEVELOPMENT OF COMMERCIALLY VIABLE TECHNOLOGIES AND TWENTY PEER-REVIEWED PAPERS. 119820 119820 0 PROGRAMS AND SERVICES FUNDS WERE APPROVED TO ENHANCE THE COMPONENTS OF THE INSTITUTE'S REHABILITATIVE PROGRAM: OPTIMIZING PHYSICAL FUNCTION, MAXIMIZING ABILITIES OF DAILY LIVING AND LESSENING DISADVANTAGES PEOPLE MAY FACE IN SOCIAL ROLES. THE RESULTS LEAD TO STRONGER OUTCOMES FOR THE INSTITUTE'S PATIENTS WITH THE ABILITY TO FUNCTION AS INDEPENDENTLY AS POSSIBLE AND ACTIVELY PARTICIPATE IN THEIR OWN COMMUNITY. PROFESSIONAL EDUCATIONSISTER KENNY REHABILITATION INSTITUTE ENSURES THAT PATIENTS RECEIVE THE HIGHEST QUALITY CARE BY ADHERING TO THE PRINCIPLES OF PATIENT CARE SET FORTH BY THE INSTITUTE OF MEDICINE: SAFE, EFFECTIVE, PATIENT-CENTERED, TIMELY, EFFICIENT AND EQUITABLE. THE FOUNDATION SUPPORTS THIS QUEST BY INVESTING IN PROFESSIONAL EDUCATION OF ITS CLINICIANS TO ACHIEVE THE HIGHEST LEVEL OF CLINICAL COMPETENCE. 37994 37994 0 DONATION OF ASSISTIVE DEVICES TO BE USED WITH THE PATIENTS OF SISTER KENNY REHABILITATION INSTITUTE. 443534 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 X 13 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN WI X TAX SERVICES MAIL ROUTE 10890 6122620660 2925 CHICAGO AVENUE MINNEAPOLIS MN 554071321 SCOTT APPLEWICK 2.00 X 0 0 0 PETER BIANCO 2.00 X 0 0 0 ROBIN CAHOW BORG 2.00 X 0 0 0 ANN DAYTON 2.00 X 0 0 0 TIMOTHY DELAPP 2.00 X 0 0 0 MARY DES ROCHES 2.00 X 0 0 0 ERIK EKSTROM MD 2.00 X 0 0 0 VALERIE RAATZ JOHNSON 2.00 X 0 0 0 SANDRA LANDBERG 40.00 X X 0 140662 28731 TODD LANGEVIN 2.00 X 0 0 0 MICHAEL MCDONNELL 2.00 X 0 0 0 J ROBERT PAULSON 2.00 X 0 0 0 ED PLUIMER 2.00 X 0 0 0 JOHN RYAN 2.00 X 0 0 0 AMANADA ABDO SHEAHAN 2.00 X 0 0 0 WINIFRED SMITH 2.00 X 0 0 0 0 140662 28731 0 0 1 0 0 1900 33675 368550 12000 281938 40628 698063 82723 82723 4642621 4469965 172656 172656 172656 14650 33675 53399 -38749 -38749 914693 0 0 216630 443534 443534 10920 10920 3523 3523 20638 7844 12794 2588 2023 565 12732 8044 4688 FOUNDATION STAFF SVCS 175432 137785 37647 OTHER PURCHASED SVCS 55346 52788 2558 PURCH SVCS - AFFILIATES 16190 12038 4152 MISCELLANEOUS EXPENSES 2782 25 2757 743685 443534 231467 68684 38967 17798 7070789 7917087 408048 87602 7517804 8022487 0 0 X 5727263 6109540 1294405 1397294 496136 515653 7517804 8022487 7517804 8022487 X 171008 333675 X X 0 1 1 X 0 X X X 0 0 0 ALLINA HEALTH SYS 363261413 3 1 1 1 442770 1 442770 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1066916 2055 92646 16251 1145366 939645 1500 149330 23559 1066916 1254928 1250 -316033 500 939645 0.00000 0.45020 0.54980 0 0 0 CASH EQUIVALENTS 619061 F EQUITY SECURITIES 2004796 F FIXED INCOME SECURITIES 1655727 F FUNDS OF HEDGE FUNDS 2826855 F COMMODITIES & OTHER 810648 F 7917087 914693 743685 171008 333675 333675 504683 1301767 333675 53399 387074 914693 0 914693 797084 53399 53399 743685 0 743685 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: CHARITY AND INDIGENT CARE. EDUCATION AND RESEARCH. BUILDINGS AND EQUIPMENT. PATIENT CARE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE FOLLOWING IS A COPY OF NOTE 1 TO THE AUDITED FINANCIAL STATEMENTS: "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INCOME TAX" "SISTER KENNY FOUNDATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IT IS CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. THEREFORE, CHARITABLE CONTRIBUTIONS ARE TAX DEDUCTIBLE. "THE FOUNDATION HAS ADOPTED GUIDANCE IN THE INCOME TAX STANDARD REGARDING THE RECOGNITION OF UNCERTAIN TAX POSITIONS. THE GUIDANCE PRESCRIBES RECOGNITION THRESHOLD PRINCIPLES FOR THE FINANCIAL STATEMENT RECOGNITION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX FILING THAT ARE NOT CERTAIN TO BE REALIZED. THE IMPLEMENTATION OF THIS GUIDANCE HAD NO IMPACT ON THE FOUNDATION'S FINANCIAL STATEMENTS. THE FOUNDATION'S TAX FILINGS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL AND STATE AUTHORITIES. THE FOUNDATION IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE ITS TAX EXEMPT STATUS. THE FOUNDATION IS NOT AWARE OF ANY ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINES INCOME, EXCISE OR OTHER TAXES. THE FILINGS FOR THE YEARS 2006 TO 2010 ARE OPEN TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES." PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 53,399. PART XIII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 53,399. CHILDREN'S GALA 46595 32245 14350 6000 9918 5000 32481 ART SHOW 1730 1430 300 48325 33675 14650 6000 9918 5000 32481 53399 -38749 1 ALLINA HEALTH SYSTEM DBA SISTER KENNY REHABILITATION SERVICES 800 E 28TH STREET MINNEAPOLIS MN 55407 363261413 170(B)(1)(A)(III) 285720 SISTER KENNY RESEARCH CENTER OPERATIONS AND VARIOUS RESEARCH STUDIES. ALLINA HEALTH SYSTEM DBA SISTER KENNY REHABILITATION SERVICES 800 E 28TH STREET MINNEAPOLIS MN 55407 363261413 170(B)(1)(A)(III) 119056 PROGRAM COSTS, PATIENT CARE EQUIPMENT AND EVENT EXPENSES. ALLINA HEALTH SYSTEM DBA SISTER KENNY REHABILITATION SERVICES 800 E 28TH STREET MINNEAPOLIS MN 55407 363261413 170(B)(1)(A)(III) 37994 DONATION OF ASSISTIVE DEVICES TO BE USED WITH PATIENTS OF SISTER KENNY REHABILITATION INSTITUTE. 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: SISTER KENNY FOUNDATION STRICTLY MONITORS GRANT FUNDS TO ENSURE THAT SUCH GRANTS ARE USED FOR PROPER AND INTENDED PURPOSES AND ARE NOT OTHERWISE DIVERTED FROM THE INTENDED USE. THE ORGANIZATION HAS PROCESS WHICH INCLUDES A WRITTEN APPLICATION WHICH REQUIRES SUPPORTING DOCUMENTATION AND SUBSTANTIATION PRIOR TO A GRANT BEING APPROVED AND DISBURSED. IN ADDITION AND DEPENDING ON THE FACTS AND CIRCUMSTANCE OF THE GRANT, THE ORGANIZATION EMPLOYS VARIOUS METHODS TO ENSURE PROPER AND INTENDED USE SUCH AS: PERIODIC REPORTING TO THE ORGANIZATION, FIELD INVESTIGATIONS, CONTRACTS WITH REPAYMENT CLAUSES, REQUIRING ADDITIONAL SUBSTANTIATION AND DOCUMENTATION NOT AVAILABLE AT THE TIME OF THE GRANT, PAYING THIRD PARTIES DIRECTLY ON BEHALF OF THE GRANTEE ORGANIZATION, AND OTHER METHODS AS APPROPRIATE AND WARRANTED. 0 1 0 0 0 1 1 0 1 1 SANDRA LANDBERG 0 123540 0 15357 0 1765 0 7547 0 21184 0 169393 0 0 PART I, LINE 6 MANAGEMENT INCENTIVE PLAN (MIP) ALLINA PROVIDES AN ANNUAL INCENTIVE COMPENSATION OPPORTUNITY TO MOST MANAGERS, SOME HIGH-LEVEL INDIVIDUAL EMPLOYEES AND EXECUTIVES. UNDER THIS PLAN, THE TARGET AWARD IS EXPRESSED AS A FUNCTION OF THE PARTICIPANT'S SALARY PAID DURING THE CALENDAR YEAR AND REQUIRES AT LEAST FOUR MONTHS OF SERVICE IN AN ELIGIBLE POSITION DURING THE YEAR. ACTUAL AWARDS CAN RANGE FROM 0% TO 150% OF THE TARGET AWARD, BASED ON ALLINA'S PERFORMANCE OVER THE CALENDAR YEAR. PERFORMANCE MEASURES INCLUDE FINANCIAL PERFORMANCE, SERVICE QUALITY, PATIENT SATISFACTION, PATIENT SAFETY AND COMMUNITY SERVICE. NO AWARDS ARE PROVIDED UNLESS THRESHOLD FINANCIAL PERFORMANCE IS ACHIEVED. PARTICIPANTS WHO HAVE LEFT EMPLOYMENT PRIOR TO THE END OF THE YEAR AS THE RESULT OF VOLUNTARY TERMINATION OR TERMINATION FOR POOR PERFORMANCE ARE NOT ELIGIBLE FOR AN AWARD. PART I, LINE 8 CERTAIN AMOUNTS REPORTED ON FORM 990, PART VII WERE PAID OR ACCRUED PURSUANT TO A CONTRACT THAT WAS SUBJECT TO THE INITIAL CONTRACT EXCEPTION DESCRIBED IN REGULATION SECTION 53.4958-4(A)(3). FROM TIME TO TIME, ALLINA HEALTH SYSTEM ENTERS INTO CONTRACTUAL ARRANGEMENTS THAT MAY QUALIFY FOR THE INITIAL CONTRACT EXCEPTION BASED ON THE TERMS AND UNDERSTANDINGS OF THE CONTRACTUAL AGREEMENTS. SUPPLEMENTAL INFORMATION PART III DEFERRED COMPENSATION PLANS TERMS AND CONDITIONS: ALLINA HOSPITALS & CLINICS EXECUTIVE BENEFIT PLAN ALLINA HOSPITALS & CLINICS PHYSICIANS BENEFIT PLAN MUTUAL FUND ACCOUNT THESE ACCOUNTS GIVE THE PARTICIPANT THE OPPORTUNITY FOR CAPITAL ACCUMULATION NOT FULLY AVAILABLE TO THEM THROUGH SOCIAL SECURITY OR THE GENERAL EMPLOYEE RETIREMENT PLANS BECAUSE OF MAXIMUMS PLACED ON COMPENSATION THAT CAN BE RECOGNIZED UNDER FEDERAL LAW FOR PURPOSES OF CONTRIBUTIONS. THEY ALSO SERVE AS AN IMPORTANT NON-COMPETE INCENTIVE TO PARTICIPANTS. PRIOR TO THE YEAR IN WHICH CONTRIBUTIONS ARE MADE, THE PARTICIPANT MUST DESIGNATE A VESTING/PAYOUT DATE CONSISTENT WITH THE CONSTRAINTS OF THE PLANS AND FEDERAL DEFERRED COMPENSATION REGULATIONS. AFTER THE CONTRIBUTIONS ARE MADE, THE PARTICIPANT HAS A ONE-TIME LIMITED OPPORTUNITY TO EXTEND THE ELECTED PAYMENT DATE FOR AT LEAST FIVE YEARS. ONCE THE VESTING/PAYOUT DATE HAS BEEN REACHED, ALLINA WILL WITHHOLD THE APPROPRIATE TAXES AND THE BALANCE WILL BE PAID TO THE PARTICIPANT ON THEIR PAYCHECK AS SOON AS ADMINISTRATIVELY FEASIBLE. IF THE PARTICIPANT TERMINATES EMPLOYMENT VOLUNTARILY BEFORE AN AMOUNT IS PAID, PAYMENT WILL BE SUBJECT TO THE PARTICIPANT'S COMPLIANCE WITH A NON-COMPETE AGREEMENT WITH ALLINA FOR TWO YEARS AFTER TERMINATION. THE PARTICIPANT MAY ELECT FROM AMONG INVESTMENT ALTERNATIVES THAT ARE SIMILAR TO THOSE AVAILABLE IN THE RETIREMENT SAVINGS PLAN. UNLIKE THE RETIREMENT SAVINGS PLAN, THE PARTICIPANT HAS THE STATUS AN UNSECURED CREDITOR OF ALLINA AND WILL NOT HAVE A PREFERRED CLAIM TO PAYMENT IN THE CASE OF THE COMPANY'S INABILITY TO PAY. HOWEVER, THE COMPANY DOES SET ASIDE ASSETS FOR ITS OBLIGATIONS BY ACTUALLY INVESTING THE PROMISED ASSETS CONSISTENT WITH PARTICIPANT ELECTIONS. ALLINA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) THIS PLAN WAS AMENDED EFFECTIVE DECEMBER 31, 2008, SUCH THAT NO FUTURE BENEFITS ACCRUE FOR SERVICE AFTER THAT DATE. ELIGIBLE ALLINA EXECUTIVES PARTICIPATED IN A DEFINED CONTRIBUTION SERP. EMPLOYER CREDITS WERE MADE EACH YEAR TO THEIR SERP BALANCE ACCORDING TO THE FOLLOWING SCHEDULE: EXECUTIVE YEARS OF SERVICE CONTRIBUTION AS A % OF PENSIONABLE EARNINGS 0-5 2.75% 6-10 3.50% 11+ 4.75% EXECUTIVES WERE ALSO CREDITED AN AMOUNT EQUAL TO THE EXCESS AMOUNT THAT WOULD HAVE BEEN CREDITED TO THE PENSION ACCOUNT PLAN WERE IT NOT FOR THE QUALIFIED PLAN COMPENSATION LIMITS. DEPOSITS EARN THE INVESTMENT RATE OF RETURN EQUAL TO THE PENSION ACCOUNT PLAN CREDITING RATE AS DECLARED BY ALLINA. THE CURRENT RATE IS 4%. THE PARTICIPANT VESTS AFTER THREE YEARS OF EXECUTIVE SERVICE PROVIDED THAT IF THE PARTICIPANT TERMINATES EMPLOYMENT WITH ALLINA PRIOR TO AGE 65 FOR ANY REASON OTHER THAN ELIMINATION OF POSITION, THE PARTICIPANT MUST FULFILL THE TERMS OF A COVENANT NOT TO COMPETE. BENEFITS ARE PAID AS A SINGLE LUMP-SUM AMOUNT UPON AGE 65 RETIREMENT OR JOB POSITION ELIMINATION. IN THE CASE OF OTHER VOLUNTARY TERMINATIONS, PAYMENT IS DELAYED UNTIL COMPLETION OF THE TWO-YEAR NON-COMPETE PERIOD. THE SERP IS PAYABLE FROM ALLINA'S GENERAL ASSETS. IF ALLINA BECOMES INSOLVENT, THE PARTICIPANT WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. ALLINA EXECUTIVE RETIREMENT BENEFIT RESTORATION PLAN ELIGIBLE ALLINA EXECUTIVES PARTICIPATE IN A DEFERRED COMPENSATION RETIREMENT PLAN. EXECUTIVES ARE CREDITED AN AMOUNT EQUAL TO THE EXCESS AMOUNT THAT WOULD HAVE BEEN CREDITED TO THE ALLINA RETIREMENT SAVINGS PLAN WERE IT NOT FOR THE QUALIFIED PLAN COMPENSATION LIMITS. EMPLOYER CREDITS ARE MADE EACH YEAR TO THEIR ACCOUNT BALANCE ACCORDING TO THE FOLLOWING SCHEDULE AS OF THE END OF THE PLAN YEAR: PARTICIPANT'S YEARS OF VESTING SERVICE APPLICABLE PERCENTAGE LESS THAN 1 0% 1-5 5.0% 6-10 5.5% 11-15 6.0% 16 OR MORE 6.5% DEPOSITS EARN THE INVESTMENT RATE OF RETURN EQUAL TO THE INVESTMENT OPTIONS SELECTED BY THE PARTICIPANT WHICH ARE THE SAME OPTIONS AVAILABLE UNDER THE QUALIFIED PLAN. A PARTICIPANT WHO HAS COMPLETED AT LEAST TWO YEARS OF SERVICE BECOMES VESTED IN THE PORTION OF HIS OR HER ACCOUNT ATTRIBUTABLE TO THE ANNUAL CREDIT FOR A PARTICULAR YEAR AS OF JANUARY 15 OF THE YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE ANNUAL CREDIT IS EARNED. IN THE EVENT OF TERMINATION (OTHER THAN BECAUSE OF DEATH) PRIOR TO AGE 67, THE DISTRIBUTION DATE SHALL BE AS SOON AS ADMINISTRATIVELY POSSIBLE AFTER TERMINATION IN THE FORM OF A LUMP SUM PAYMENT. THE PLAN IS PAYABLE FROM ALLINA'S GENERAL ASSETS. IF ALLINA BECOMES INSOLVENT, THE PARTICIPANT WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. THIS PLAN WAS EFFECTIVE JANUARY 1, 2009. EXECUTIVE SEVERANCE PLAN ALLINA PROVIDES SALARY CONTINUATION FOR EXECUTIVES WHOSE EMPLOYMENT HAS BEEN INVOLUNTARILY TERMINATED FOR REASONS OTHER THAN CAUSE OR POOR PERFORMANCE. THE LENGTH OF THE SEVERANCE PAY PERIOD IS DEFINED BY THE PLAN AND DEPENDS ON THE LEVEL OF THE EXECUTIVE POSITION. UNDER THE PLAN THE SEVERED EXECUTIVE ALSO COULD CONTINUE CERTAIN BENEFITS FOR A LIMITED PERIOD OF TIME. IN 2009 THE PLAN WAS AMENDED TO FURTHER RESTRICT SEVERANCE BENEFITS IN THE CASE THAT THE EXECUTIVE OBTAINS OTHER EMPLOYMENT DURING THE SEVERANCE PERIOD. X 3 2634 FAIR MARKET VALUE X EQUIPMENT 34 37994 FAIR MARKET VALUE 1 0 1 1 THIRD PARTY USE: PART I, LINE 32B: SISTER KENNY FOUNDATION MAY FROM TIME TO TIME AND IN THE ORDINARY COURSE OF ITS CHARITABLE ACTIVITIES ACCEPT NONCASH CONTRIBUTIONS OF PUBLICLY TRADED SECURITIES. SISTER KENNY FOUNDATION USES THIRD PARTIES SUCH AS SECURITIES BROKERAGE FIRMS TO LIQUIDATE THE PUBLICLY TRADED SECURITIES TO CASH ON THE OPEN SECURITIES MARKET. THE SALE OF PUBLICLY TRADED SECURITIES ARE GENERALLY SUBJECT TO MARKET RATE BROKERAGE COMMISSIONS AND FEES OF THE THIRD PARTY SECURITIES BROKER. SISTER KENNY FOUNDATION CASH AND INVESTMENTS ARE POOLED WITH ITS SOLE MEMBER ORGANIZATION, ALLINA HEALTH SYSTEM, AND ITS RELATED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 6 ALLINA HEALTH SYSTEM IS THE SOLE CORPORATE MEMBER ORGANIZATION OF SISTER KENNY FOUNDATION. SISTER KENNY FOUNDATION IS THE SUPPORTING ORGANIZATION AND ALLINA HEALTH SYSTEM IS THE SUPPORTED ORGANIZATION. SEE SCHEDULE A AND SCHEDULE R FOR FURTHER DETAILS. ALLINA HEALTH SYSTEM PROVIDES SISTER KENNY FOUNDATION WITH ADMINISTRATIVE AND STAFF SERVICES AT NO COST. THE VALUE OF THE SERVICES PROVIDED BY ALLINA HEALTH SYSTEM TO SISTER KENNY FOUNDATION DURING 2010 WERE ESTIMATED AT $353,550 AND HAVE BEEN RECORDED AS CONTRIBUTION REVENUE FROM A RELATED ORGANIZATION IN THE STATEMENT OF REVENUE AND AS ADMINISTRATIVE AND FUNDRAISING EXPENSES IN THE STATEMENT OF FUNCTIONAL EXPENSES. SISTER KENNY FOUNDATION HAS NO EMPLOYEES AND DOES NOT PAY COMPENSATION. COMPENSATION DISCLOSED AS PAID BY A RELATED ORGANIZATION IS DETERMINED SOLELY BY THE RELATED ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A AS THE SOLE CORPORATE MEMBER ORGANIZATION, ALLINA HEALTH SYSTEM HOLDS CERTAIN RESERVED POWERS OVER SISTER KENNY FOUNDATION. THE RESERVED POWERS ARE FULLY DESCRIBED IN SISTER KENNY FOUNDATION'S GOVERNING DOCUMENTS AND INCLUDE SUCH POWERS AS ELECTION AND APPROVAL OF DIRECTORS, FINAL APPROVAL OF AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS, APPROVAL OF STRATEGIC PLANS AND CAPITAL AND OPERATING BUDGETS, APPROVAL OF PLANS OF MERGER OR CONSOLIDATION, APPROVAL OF INCURRENCE OF DEBT OR EXPENDITURES IN EXCESS OF CERTAIN AMOUNTS, AND VARIOUS OTHER RESERVED POWERS AS DESCRIBED THEREIN. FORM 990, PART VI, SECTION A, LINE 7B SEE FORM 990, PART VI, SECTION A, LINE 7A AND THE DESCRIPTION ABOVE RELATED TO IT IN SCHEDULE O. FORM 990, PART VI, SECTION B, LINE 11 SISTER KENNY FOUNDATION'S FORM 990 WAS PREPARED BY THE TAX SERVICES FUNCTION OF ALLINA HEALTH SYSTEM, SISTER KENNY FOUNDATION'S SOLE CORPORATE MEMBER AND SUPPORTED ORGANIZATION. THE FORM 990 FILING WAS SUBJECTED TO A RIGOROUS REVIEW PROCESS BY ALLINA'S TAX MANAGER AND TAX DIRECTOR. ALLINA'S VICE PRESIDENT OF FINANCE & TREASURY ALSO PERFORMED AN EXECUTIVE REVIEW OF THE FORM 990. AFTER THE MANAGEMENT REVIEW PROCESS DESCRIBED ABOVE WAS COMPLETED, THE FINAL FORM 990, AS ULTIMATELY FILED WITH THE INTERNAL REVENUE SERVICE ["IRS"], WAS PROVIDED TO EACH VOTING MEMBER OF SISTER KENNY FOUNDATION'S BOARD OF DIRECTORS. A SISTER KENNY FOUNDATION BOARD OF DIRECTORS MEETING WAS HELD ON SEPTEMBER 22, 2011 TO REVIEW AND DISCUSS THE FORM 990 FILING. SISTER KENNY FOUNDATION'S BOARD OF DIRECTORS VOTED ON AND APPROVED A RESOLUTION APPROVING THE FORM 990, THE MINNESOTA CHARITABLE ORGANIZATION ANNUAL REPORT TO BE FILED WITH THE MINNESOTA ATTORNEY GENERAL, AND THE WISCONSIN CHARITABLE ORGANIZATION ANNUAL REPORT TO BE FILED WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. THE BOARD OF DIRECTORS RESOLUTION ALSO DIRECTED OFFICERS TO FILE THE FORM 990 WITH THE IRS, THE CHARITABLE ANNUAL REPORT WITH THE CHARITIES DIVISION OF THE OFFICE OF THE MINNESOTA ATTORNEY GENERAL, AND THE WISCONSIN CHARITABLE ORGANIZATION ANNUAL REPORT WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. THE ABOVE STATED REVIEW AND APPROVAL PROCESS OCCURRED PRIOR TO FILING SISTER KENNY FOUNDATION'S FORM 990 WITH THE IRS, MINNESOTA CHARITABLE ORGANIZATION ANNUAL REPORT WITH THE MINNESOTA ATTORNEY GENERAL, AND WISCONSIN CHARITABLE ORGANIZATION ANNUAL REPORT WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS SEVERAL METHODS OF MONITORING AND ENFORCING COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. FIRST, THE ORGANIZATION REGULARLY DISTRIBUTES CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRES TO ITS OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES. THESE INDIVIDUALS ARE REQUIRED TO DISCLOSE ANNUALLY ANY INTEREST THAT COULD GIVE RISE TO CONFLICTS, INCLUDING ANY FAMILY OR BUSINESS RELATIONSHIP. SECOND, THE GENERAL COUNSEL'S OFFICE ANNUALLY DELIVERS A REPORT TO ALLINA'S BOARD OF DIRECTORS WHICH INCLUDES, AMONG OTHER THINGS, THE RESULTS OF THE CONFLICT OF INTEREST QUESTIONNAIRE, AN ANALYSIS OF POTENTIAL CONFLICTS, AND GUIDANCE FOR SATISFACTORILY RESOLVING CONFLICTS. THIRD, THE ORGANIZATION UNDERTAKES MANDATORY COMPLIANCE TRAINING OF ALL ITS EMPLOYEES WHICH INCLUDES TRAINING ON CONFLICTS OF INTEREST. FOURTH, ALL EMPLOYEES RECEIVE, AND ARE EXPECTED TO CONDUCT THEMSELVES IN ACCORDANCE WITH ALLINA'S CODE OF CONDUCT. THE CODE OF CONDUCT CONTAINS EDUCATIONAL MATERIALS AND GUIDANCE TO RESOLVE POTENTIAL CONFLICTS OF INTEREST. FIFTH, ALLINA MAINTAINS A CORPORATE INTEGRITY HOTLINE, A CONFIDENTIAL 24 HOUR EXTERNAL RESOURCE TO HELP ANSWER QUESTIONS RELATED TO ETHICAL BUSINESS CONDUCT. ALL CALLS TO THE INTEGRITY LINE ARE KEPT CONFIDENTIAL. FORM 990, PART VI, SECTION B, LINE 15 SISTER KENNY FOUNDATION HAS NO EMPLOYEES AND DOES NOT PAY COMPENSATION. ANY COMPENSATION DISCLOSED AS PAID BY A RELATED ORGANIZATION IS DETERMINED SOLELY BY THE RELATED ORGANIZATION. THEREFORE, FORM 990, PART VI, SECTION B, LINES 15A AND 15B ARE NOT APPLICABLE TO SISTER KENNY FOUNDATION. FORM 990, PART VI, SECTION C, LINE 19 SISTER KENNY FOUNDATION MAKES ITS FORM 990, FORM 1023, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. TO ARRANGE AN INSPECTION OR RECEIVE A COPY, PLEASE CONTACT THE FOLLOWING: SISTER KENNY FOUNDATION TAX SERVICES MAIL ROUTE 10890 P.O. BOX 43 MINNEAPOLIS, MN 55407-0043 TELEPHONE: 612-262-0660 PHYSICAL ADDRESS: 2925 CHICAGO AVENUE MINNEAPOLIS, MN 55407-1321 THE FORM 990 AND FORM 1023 ARE ALSO AVAILABLE DIRECTLY FROM THE INTERNAL REVENUE SERVICE. THE FORM 990 AND FINANCIAL STATEMENTS ARE ALSO AVAILABLE FROM THE CHARITIES DIVISION OF THE OFFICE OF THE MINNESOTA ATTORNEY GENERAL. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 333,675. FORM 990, PART XII, LINE 2C: THIS PROCESS REMAINS UNCHANGED FROM THE PRIOR YEAR. ABBOTT NORTHWESTERN HOSPITAL FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 043643816 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 ALLINA ASSOCIATED FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 274116873 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 CENTER FOR HEALTHCARE INNOVATION FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 263553868 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 ALLINA HEALTH SYSTEM PO BOX 43 MINNEAPOLIS MN 55407 363261413 HEALTHCARE SERVICES MN 501(C)(3) LINE 3 N/A 0 ALLINA INTEGRATED MEDICAL NETWORK PO BOX 43 MINNEAPOLIS MN 55407 275129095 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 ALLINA MEDICAL CLINIC PO BOX 43 MINNEAPOLIS MN 55407 411781624 HEALTHCARE SERVICES MN 501(C)(3) LINE 3 ALLINA HEALTH SYSTEM 0 ASPEN ASSET CORPORATION PO BOX 43 MINNEAPOLIS MN 55407 411788674 HOLDING TITLE TO PROPERTY MN 501(C)(2) ALLINA HEALTH SYSTEM 0 ASPEN MEDICAL GROUP PO BOX 43 MINNEAPOLIS MN 55407 411452624 HEALTHCARE SERVICES MN 501(C)(4) ALLINA HEALTH SYSTEM 0 MERCY & UNITY HOSPITALS FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 300086426 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 PHILLIPS EYE INSTITUTE FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 411613017 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 UNITED HOSPITAL FOUNDATION PO BOX 43 MINNEAPOLIS MN 55407 237420998 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 UNITED & CHILDRENS AMBULATORY SURGERY CENTER ASSOCIATION 310 NORTH SMITH AVENUE ST PAUL MN 55102 411694626 SUPPORTING ORGANIZATION MN 501(C)(3) LINE 11A, I ALLINA HEALTH SYSTEM 0 ALEXANDRIA IMAGING LLC 920 EAST 28TH STREET SUITE 500 MINNEAPOLIS MN 55407 412000887 RADIOLOGY MN N/A APPLE VALLEY BUILDING ASSOCIATES LLC 14655 GALAXIE AVENUE S APPLE VALLEY MN 55124 411677072 RENTAL REAL ESTATE MN N/A ASPEN SLEEP CENTER LLC 1010 BANDANA BOULEVARD WEST ST PAUL MN 55108 261850227 HEALTHCARE SERVICES MN N/A MAGNETO LEASING LLC 225 SMITH AVE N SUITE 201 ST PAUL MN 55102 201582501 RENTALS EQUIPMENT MN N/A METROPOLITAN INTEGRATED CANCER CARE 16825 NORTHCHASE DR STE 1300 HOUSTON TX 77060 205068485 RADIOLOGY TX N/A SOUTHWEST SURGICAL CENTER LLC 920 EAST 28TH STREET SUITE 500 MINNEAPOLIS MN 55407 412013700 SURGICAL SERVICES MN N/A WEST SUBURBAN HEALTH CAMPUS 2855 CAMPUS DRIVE PLYMOUTH MN 55441 411730888 RENTAL REAL ESTATE MN N/A ALLINA CLINIC HOLDINGS LTD PO BOX 43 MINNEAPOLIS MN 55440 263954371 HOLDING COMPANY MN N/A C ALLINA HEALTH SYSTEM TRUST 500 GRANT STREET SUITE 0625 PITTSBURGH PA 15258 276712988 TRUST PA N/A T ALLINA SPECIALTY ASSOCIATES PO BOX 43 MINNEAPOLIS MN 55440 411802815 HEALTHCARE SERVICES MN N/A C HEALTHSPAN SERVICES CORPORATION PO BOX 43 MINNEAPOLIS MN 55440 411716415 DEBT COLLECTION MN N/A C QUELLO CLINIC LTD PO BOX 43 MINNEAPOLIS MN 55440 410874754 HEALTHCARE SERVICES MN N/A C 0 1 1 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1