2020-11-10T11:15:56-06:00 2019-12-31 383635706 REHMANN ROBSON LLC 555 BRIARWOOD CIRCLE STE 300 ANN ARBOR MI 48108 990 2019-01-01 381983442 ALTARUM INSTITUTE ALTA 7343024600 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 DAVID ROBERTSON CFO 7343024600 2020-11-09 1 ADAM P WILLIAMS CPA P00641847 7347612005 2020-11-09 96.80.202.145 2020-11-09 12:31:22 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 1850B0D69C1349F00D8F8300E454BAB5CB41AABC 2019 2021-01-29 14:40:06Z LINCOLN T SMITH 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 52253465 0 X WWW.ALTARUM.ORG X 1972 MI CREATE AND IMPLEMENT SOLUTIONS TO ADVANCE HEALTH AMONG VULNERABLE AND PUBLICLY INSURED POPULATIONS 9 8 300 0 94420 0 18906559 19677155 31289476 29910692 421146 268927 75071 185203 50692252 50041977 25000 10000 0 0 29762863 31165848 0 0 1801852 21088413 19582171 50876276 50758019 -184024 -716042 67414210 64267064 23548177 20232670 43866033 44034394 X ALTARUM INSTITUTE CREATES AND IMPLEMENTS SOLUTIONS TO ADVANCE HEALTH AMONG VULNERABLE AND PUBLICLY INSURED POPULATIONS. 1 0 29966771 10000 29904365 ALTARUM INSTITUTE DEVELOPS AND IMPLEMENTS SOLUTIONS TO ADVANCE HEALTH AMONG VULNERABLE POPULATIONS. FOUR OF ALTARUM'S 2019 MAJOR PROGRAMS INCLUDE:- MDHHS DATA HUB: PROVIDE TECHNICAL ASSISTANCE TO THE MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES (MDHHS) TO IMPROVE THE FLOW OF DATA FROM MICHIGAN'S HEALTHCARE PROVIDERS INTO STATE PUBLIC HEALTH SYSTEMS AND BETWEEN STATE PUBLIC HEALTH SYSTEMS AND THE FEDERAL GOVERNMENT. THESE SYSTEMS INCLUDE THE MICHIGAN DISEASE SURVEILLANCE SYSTEM, OUTBREAK MANAGEMENT SYSTEM, AND SYNDROMIC SURVEILLANCE SYSTEM (AMONG OTHERS). THIS PUBLIC HEALTH INFRASTRUCTURE EXISTS TO TRACK CHANGES IN POPULATION HEALTH AND DETECT AND RESPOND TO OUTBREAKS OF ILLNESS, POTENTIAL PUBLIC HEALTH THREATS AND EMERGENCIES.- COMPREHENSIVE OPIOID, STIMULANT AND SUBSTANCE ABUSE PROGRAM (COSSAP) NATIONAL TTA CENTER FOR PRSS (BUREAU OF JUSTICE ASSISTANCE (BJA): WITH FUNDING FROM THE U.S. DEPARTMENT OF JUSTICE, BUREAU OF JUSTICE ASSISTANCE, ALTARUM IS WORKING WITH A BROAD CROSS-SECTION OF COMMUNITY INSTITUTIONS TO INTEGRATE PEER RECOVERY SUPPORT SERVICES INTO A VARIETY OF CRIMINAL JUSTICE PROGRAMS AND SETTINGS. FOR THIS NATIONAL PROGRAM, WE WORK CLOSELY WITH ORGANIZATIONS AT THE STATE AND LOCAL LEVEL TO INTEGRATE AND DELIVER PEER RECOVERY SUPPORT SERVICES ACROSS AND THROUGHOUT THE CRIMINAL JUSTICE SYSTEM, FROM DEVELOPING PEER TRAINING AND SUPERVISION MATERIALS TO DEVISING STRATEGIES FOR PARTNERSHIPS TO ENSURE COMPREHENSIVE RECOVERY SUPPORTS ARE AVAILABLE IN COMMUNITIES ACROSS OUR NATION.- EHR TECHNICAL ASSISTANCE: ALTARUM DELIVERS ON THE GROUND PHYSICIAN EDUCATION AND TECHNICAL ASSISTANCE TO MEDICAID-ELIGIBLE PROFESSIONALS ACROSS THE STATE OF MICHIGAN. THIS SUPPORT FOCUSES ON ADOPTING AND USING HEALTH INFORMATION TECHNOLOGY TO IMPROVE CHRONIC DISEASE MANAGEMENT AND POPULATION HEALTH IN SUPPORT OF THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) PROMOTING INTEROPERABILITY PROGRAM.- QUALITY PAYMENT PROGRAM SMALL RURAL AND UNDERSERVED SUPPORT CONTRACTOR (QPP-SURS): ALTARUM PROVIDES TECHNICAL ASSISTANCE AND SUPPORT TO MERIT BASED INCENTIVE PAYMENT SYSTEM (MIPS) ELIGIBLE PROVIDERS IN SMALL, RURAL OR UNDERSERVED PRACTICES ACROSS A SEVEN-STATE MIDWESTERN REGION TO SUPPORT PARTICIPATION IN THE CMS QUALITY PAYMENT PROGRAM (QPP). ASSISTANCE INCLUDES PROGRAM EDUCATION, MIPS READINESS ASSESSMENTS, PROGRAM ELIGIBILITY, SUPPORT FOR USING CERTIFIED EHR TECHNOLOGY, ADVICE ON SELECTION OF MIPS MEASURES AND ACTIVITIES TO REPORT, AND HELP SUBMITTING DATA TO CMS. ASSISTANCE IS DELIVERED TO PRACTICES AND INDIVIDUAL PROVIDERS THROUGH AN INTERACTIVE WEB PORTAL, LIVE CHAT, PHONE SUPPORT, WEBINARS, AND EMAIL CORRESPONDENCE. 29966771 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 97 0 1 300 1 1 1 0 0 0 0 0 0 0 0 0 1 0 X 9 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X SANDRA ZIEBOLD 7343024600 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 KAREN ALDRIDGE-EASON TRUSTEE 4.00 1.00 X 31500 0 0 RONALD J GARDHOUSE VICE CHAIRMAN TRUSTEE 4.00 1.00 X 44500 0 0 GERALD CROAN TRUSTEE 4.00 1.00 X 44000 0 0 GUY FISH TRUSTEE 4.00 1.00 X 34000 0 0 ROSEMARY GIBSON CHAIRMAN TRUSTEE 4.00 1.00 X 57500 0 0 JENNIE CHIN HANSEN TRUSTEE 4.00 1.00 X 36000 0 0 JOSEPH FIFER TRUSTEE 4.00 1.00 X 38500 0 0 LINDA ELAM TRUSTEE 4.00 1.00 X 12000 0 0 LINCOLN SMITH PRESIDENT AND CEO 40.00 0.00 X X 1342036 0 415735 SHEENA GILL END 123119 SVP, CAO, GC 40.00 0.00 X 517245 0 25703 DANIEL ARMIJO SVP & COO 40.00 0.00 X 677055 0 302185 TRACY LAWYER ASST. SECRETARY 40.00 0.00 X 258509 0 126309 DAVID ROBERTSON SVP & CFO 40.00 0.00 X 343545 0 205406 ALICIA TORRES END 8618 FORMER OFFICER 40.00 0.00 X 256000 0 0 KATHERINE DIMEO END 51419 FORMER VP 40.00 0.00 X 296440 0 -6448 STEVEN TOWELL END 11518 CORPORATE DIRECTOR/ FORMER OFFICER 40.00 0.00 X 319863 0 129141 DORCAS LYNN CENTER DIRECTOR 40.00 0.00 X 220865 0 17321 RICHARD KELLER CENTER DIRECTOR 40.00 0.00 X 217877 0 81540 MATTHEW BEATTY DIRECTOR OF ANALYTICS 40.00 0.00 X 76313 117440 36590 SANDRA ZIEBOLD CORPORATE DIRECTOR 40.00 0.00 X 181034 0 94376 TARA FOWLER CENTER DIRECTOR 40.00 0.00 X 195432 0 64370 5200214 117440 1492228 97 1 1 0 FEDERAL ADVISORY PARTNERS 3100 CLARENDON BLVD SUITE 1400 ARLINGTON VA 22201 SCIENTIFIC/TECHNICAL SERVICES 5030972 IPSOS PUBLIC AFFAIRS 2020 K STREET NW SUITE 410 WASHINGTON DC 20006 SCIENTIFIC/TECHNICAL SERVICES 1768665 MICHIGAN MEDICAL ADVANTAGE 101 N MAIN STREET SUITE 430 ANN ARBOR MI 48104 SCIENTIFIC/TECHNICAL SERVICES 815360 MICHIGAN PUBLIC HEALTH INSTITUTE 2436 WOODLAKE CIRCLE SUITE 340 OKEMOS MI 48864 SCIENTIFIC/TECHNICAL SERVICES 435824 AMAZON WEB SERVICES PO BOX 84023 SEATTLE WA 98124 CLOUD HOSTING SERVICES 325437 24 16876525 2800630 19677155 CONTRACT REVENUE 541900 27552387 27546060 6327 LICENSE REVENUE 541900 2358305 2358305 29910692 292838 292838 1106515 921325 185190 185190 88093 97097 1266252 1290163 -23911 -23911 -23911 MISCELLANEOUS 541900 13 13 13 50041977 29904365 94420 366037 X 10000 10000 4511727 2698294 1651916 161517 21179567 12666703 7754649 758215 1047785 626641 383634 37510 2446225 1462995 895657 87573 1980544 1184489 725153 70902 99381 99381 124600 124600 820 820 11968436 7157872 4382102 428462 2838268 1697461 1039199 101608 1971240 1178925 721746 70569 582465 348350 213263 20852 53798 32174 19698 1926 199847 199847 993803 512856 450248 30699 114644 68564 41976 4104 OTHER 436105 202574 212731 20800 TRAINING & EDUCATION 189618 113403 69427 6788 TAXES 9146 5470 3349 327 50758019 29966771 18989396 1801852 301 300 5018379 7689608 9821607 9054075 1344089 1383194 28610516 16360680 12735710 12249836 5067698 4016768 27568394 26788494 1362744 1226469 4495288 1858320 67414210 64267064 10746473 10332958 3122380 2843932 7704208 4887782 1975116 2167998 23548177 20232670 X 43866033 44034394 0 0 43866033 44034394 67414210 64267064 X -716042 164302 720101 X 0 1 X 1 1 1 X 19433544 24298403 19457251 18906559 19677156 101772913 35587810 34170317 37360435 31276534 29904365 168299461 55021354 58468720 56817686 50183093 49581521 270072374 0 20357017 17435314 23584765 15635718 15004936 92017750 20357017 17435314 23584765 15635718 15004936 92017750 178054624 10638 6135 53208 394273 292838 757092 45907 58080 32177 51851 94420 282435 56545 64215 85385 446124 387258 1039527 18758 19 13 18790 55077899 58532935 56921829 50629236 49968792 271130691 0.65670 0.62310 0.00380 0.00240 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: ADMINISTRATIVE SERVICES - 2017 AMOUNT: $ 18,758. MISCELLANEOUS - 2018 AMOUNT: $ 19. 2019 AMOUNT: $ 13. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 820 0 0 820 0 SCHEDULE C, PART II, LINE 1B & 1G LOBBYING ACTIVITY DESCRIPTION ALTARUM MET WITH AND/OR SUBMITTED INFORMATION TO STAFF MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES AND/OR THE U.S. SENATE PERTAINING TO THE FOLLOWING TOPIC: LONG-TERM CARE AND AGING ISSUES. 1596660 1596660 16777228 8488005 8289223 1290667 731542 559125 8945961 7141133 1804828 12249836 INVESTMENT IN FCAM SUBSIDIARIES 26788494 C 26788494 INTERCOMPANY PAYABLE 12452 DEFERRED COMPENSATION LIABILITY 2155546 2167998 X PART X, LINE 2: ASC 740-10 (FKA FIN 48) FOOTNOTE THE INSTITUTE ANALYZES ITS INCOME TAX FILING POSITIONS IN THE FEDERAL, STATE, AND LOCAL JURISDICTIONS WHERE IT IS REQUIRED TO FILE INCOME TAX RETURNS, AS WELL AS ALL OPEN TAX YEARS IN THESE JURISDICTIONS, TO IDENTIFY POTENTIAL UNCERTAIN TAX POSITIONS. THE INSTITUTE TREATS INTEREST AND PENALTIES ATTRIBUTABLE TO INCOME TAXES, AND REFLECTS ANY CHARGES FOR SUCH, TO THE EXTENT THEY ARISE, AS A COMPONENT OF ITS INCOME TAX EXPENSE. THE INSTITUTE HAS EVALUATED ITS INCOME TAX FILING POSITIONS FOR FISCAL YEARS 2016 THROUGH 2019, THE YEARS WHICH REMAIN SUBJECT TO EXAMINATION AS OF DECEMBER 31, 2019. THE INSTITUTE CONCLUDED THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION IN THE INSTITUTE'S CONSOLIDATED FINANCIAL STATEMENTS. THE INSTITUTE DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS ("UTB") (E.G. TAX DEDUCTIONS, EXCLUSIONS, OR CREDITS CLAIMED OR EXPECTED TO BE CLAIMED) TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. THE INSTITUTE DOES NOT HAVE ANY AMOUNTS ACCRUED FOR INTEREST AND PENALTIES RELATED TO UTBS AT DECEMBER 31, 2019 OR 2018 AND IS NOT AWARE OF ANY CLAIMS FOR SUCH AMOUNTS BY FEDERAL, STATE OR LOCAL INCOME TAX AUTHORITIES. SCHEDULE D ALTARUM INSTITUTE ADOPTED THE PROVISIONS OF ASC 740 (FKA FIN 48) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007, AS REQUIRED. ALTARUM INSTITUTE'S SHARE OF THE CONSOLIDATED FINANCIAL STATEMENT PROVISION FOR ASC 740 (FKA FIN 48) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 WAS ZERO. NORTH AMERICA 0 1 PROGRAM SERVICES SCIENTIFIC RESEARCH 65427 0 1 0 0 0 1 65427 0 65427 0 0 0 0 0 0 PART III ACCOUNTING METHOD: 1 MICHIGAN THEATER FOUNDATION INC 603 EAST LIBERTY ST ANN ARBOR MI 48104 382269013 501(C)(3) 10000 CORPORATE SPONSORSHIP SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS ALTARUM INSTITUTE IS COMMITTED TO A PROGRAM OF PHILANTHROPY THAT SUPPORTS OUR LOCAL COMMUNITIES. THROUGH OUR CHARITABLE CONTRIBUTIONS PROGRAM, WE SUPPORT AND ENCOURAGE EMPLOYEE INVOLVEMENT IN THE LOCAL COMMUNITY IN ADDITION TO INSTITUTE SUPPORT THAT ALIGNS WITH OUR MISSION. AS EMPLOYEE PARTICIPATION IS PARAMOUNT TO THE SUCCESS OF THIS PROGRAM, A LOCAL CHARITABLE CONTRIBUTION COMMITTEE HAS BEEN ESTABLISHED AT EACH MAJOR OFFICE. WITH THE ASSISTANCE OF HUMAN RESOURCES, COMMITTEE MEMBERS DEVELOP TIMELINES, HOST QUARTERLY MEETINGS, REVIEW PROPOSALS, AND DISBURSE AWARDS BASED ON SPECIFIC CRITERIA. THE VISION IS TO EMPOWER AND ENCOURAGE EMPLOYEE PARTICIPANTS TO DEVELOP A GREATER SENSE OF MORALE THAT EXPANDS INTO COMMUNITY LEADERSHIP. X X X X X 1 1 0 0 0 0 0 0 0 LINCOLN SMITH PRESIDENT AND CEO 409122 0 670281 0 262633 0 391408 0 24326 0 1757770 0 935564 0 SHEENA GILL END 123119 SVP, CAO, GC 250000 0 234000 0 33245 0 6308 0 19396 0 542949 0 264769 0 DANIEL ARMIJO SVP & COO 256667 0 358708 0 61680 0 278859 0 23326 0 979240 0 345773 0 TRACY LAWYER ASST. SECRETARY 179228 0 70500 0 8781 0 117204 0 9105 0 384818 0 77609 0 DAVID ROBERTSON SVP & CFO 200000 0 130500 0 13045 0 178030 0 27376 0 548951 0 107710 0 ALICIA TORRES END 8618 FORMER OFFICER 0 0 0 0 256000 0 0 0 0 0 256000 0 0 0 KATHERINE DIMEO END 51419 FORMER VP 85417 0 119400 0 91623 0 -7992 0 1543 0 289991 0 119400 0 STEVEN TOWELL END 11518 CORPORATE DIRECTOR/ FORMER OFFICER 162133 0 160478 0 -2748 0 103981 0 25160 0 449004 0 160478 0 DORCAS LYNN CENTER DIRECTOR 198503 0 5000 0 17362 0 5248 0 12074 0 238187 0 21706 0 RICHARD KELLER CENTER DIRECTOR 168333 0 42286 0 7258 0 54513 0 27027 0 299417 0 55299 0 MATTHEW BEATTY DIRECTOR OF ANALYTICS 58227 117440 10000 0 8086 0 11143 0 25447 0 112903 117440 13378 0 SANDRA ZIEBOLD CORPORATE DIRECTOR 132500 0 52500 0 -3966 0 70574 0 23802 0 275410 0 52500 0 TARA FOWLER CENTER DIRECTOR 156667 0 38481 0 284 0 63588 0 783 0 259803 0 38481 0 SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENT ALTARUM INSTITUTE ISSUED THE FOLLOWING SEVERANCE PAYMENT IN 2019 AS A RESULT OF TERMINATION OF EMPLOYMENT: ALICIA TORRES $256,000 SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ALTARUM INSTITUTE ADMINISTERS A SUPPLEMENTAL NONQUALIFIED IRC SECTION 457(F) PLAN FOR ITS SENIOR EXECUTIVES AND ANOTHER SUCH PLAN FOR MIDDLE MANAGEMENT. THESE IRC SECTION 457(F) PLANS PROVIDE SPECIFIC TIME DEFERRALS OF INCENTIVE COMPENSATION FOR THESE EMPLOYEES. THE FOLLOWING INDIVIDUALS DEFERRED THE LISTED AMOUNTS OF 2019 INCENTIVE COMPENSATION UNDER THE PLANS IN WHICH THEY QUALIFIED: LINCOLN SMITH $737,127.00 DANIEL ARMIJO $379,316.00 DAVID ROBERTSON $202,500.00 SHEENA GILL $0.00 KATHY DIMEO $0.00 TRACY LAWYER $83,318.00 STEVE TOWELL $72,105.00 MATTHEW BEATTY $0.00 TARA FOWLER $45,417.00 SANDRA ZIEBOLD $49,093.00 DORCAS LYNN $0.00 RICK KELLER $50,709.00 ALICIA TORRES $0.00 FORM 990, PART III, LINE 2 PLEASE SEE THE DETAILED DESCRIPTION FOR FORM 990, PART III, LINE 4. FORM 990, PART VI, SECTION B, LINE 11B PROCESS USED TO REVIEW THE FORM 990 1. IRS FORM 990 IS PREPARED EXTERNALLY BY ALTARUM'S TAX ACCOUNTING FIRM. THE PROCESS IS MANAGED BY THE OFFICE OF THE CHIEF FINANCIAL OFFICER. WITH APPROPRIATE GUIDANCE FROM THE TAX ACCOUNTANTS, INFORMATION GATHERING AND REPORTING IS PRIMARILY CONDUCTED BY THE CHIEF FINANCIAL OFFICER AND FINANCIAL REPORTING & ANALYSIS MANAGER. AS PART OF THE INFORMATION GATHERING PROCESS, THE CHIEF FINANCIAL OFFICER AND FINANCIAL REPORTING & ANALYSIS MANAGER WORK WITH ALTARUM INSTITUTE OFFICERS AND OTHER MANAGERS AS NECESSARY. 2. THE CHIEF FINANCIAL OFFICER PRESENTS THE COMPLETED DRAFT FORM 990 TO THE AUDIT AND COMPENSATION WORKING GROUP OF THE ALTARUM INSTITUTE BOARD OF TRUSTEES. THIS WORKING GROUP HAS BEEN DESIGNATED BY THE BOARD TO REVIEW THE FORM 990 TO EITHER RECOMMEND TO THE BOARD FOR APPROVAL AS WRITTEN OR MAKE SUGGESTED MODIFICATIONS, DRAWING UPON OTHER INDIVIDUAL TRUSTEES IT DEEMS NECESSARY. 3. ONCE REVIEWED AND READY FOR BOARD REVIEW, THE WORKING GROUP PRESENTS THE FORM 990 TO EACH INDIVIDUAL TRUSTEE FOR REVIEW. 4. ONCE REVIEWED AND APPROVED BY THE BOARD OF TRUSTEES FOR SUBMISSION, THE CHIEF FINANCIAL OFFICER IS NOTIFIED THAT THE FORM IS READY FOR SUBMISSION TO THE IRS. 5. THE CHIEF FINANCIAL OFFICER INSTRUCTS THE EXTERNAL TAX ACCOUNTANTS TO FINALIZE THE IRS FORM 990 AND PRESENT IT FOR SIGNATURE AND FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY ANNUALLY, EACH MEMBER OF THE BOARD OF TRUSTEES AND EVERY EXECUTIVE MUST COMPLETE AND SUBMIT A DISCLOSURE FORM TO THE ASSISTANT SECRETARY (AND GENERAL COUNSEL). INCLUDED IN THE DISCLOSURE FORM IS ANY EMPLOYMENT, BOARD MEMBERSHIP, COMPENSATORY ARRANGEMENTS, MATERIAL INTERESTS, ETC. WITH OTHER ENTITIES. THE ASSISTANT SECRETARY INPUTS ALL OF THE INFORMATION INTO A DATABASE SO THAT MATERIAL TRANSACTIONS CAN BE CHECKED AGAINST ALL OF THE DATA PROVIDED IN THE DISCLOSURE FORMS. ALSO, PURSUANT TO POLICY, THE BOARD MEMBERS AND EXECUTIVES HAVE TO DISCLOSE ANY INTERESTS IN OR RELATIONSHIP WITH AN ENTITY THAT ALTARUM IS PURSUING A TRANSACTION WITH (AT THE TIME OF THE BOARD MEMBER OR EXECUTIVE BECOMING AWARE OF THE POTENTIAL ALTARUM RELATIONSHIP). UPON THE IDENTIFICATION OF A POTENTIAL CONFLICT OF INTEREST, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS, AND THE DISINTERESTED BOARD MEMBERS (IN THE ABSENCE OF THE INTERESTED PERSON) DISCUSS AND VOTE UPON WHETHER OR NOT AN ACTUAL CONFLICT OF INTEREST EXISTS. IF A CONFLICT OF INTEREST EXISTS, THEN ALTERNATIVE TRANSACTIONS OR ARRANGEMENTS WILL BE SOUGHT OUT AND CONSIDERED. IF NO ALTERNATIVE TRANSACTION IS SUITABLE, THE DISINTERESTED MEMBERS OF THE BOARD DETERMINE WHETHER OR NOT THE CONFLICTED TRANSACTION IS IN ALTARUM'S BEST INTERESTS AND DETERMINE IF THE TERMS OF THE TRANSACTION ARE FAIR AND REASONABLE, WITHOUT THE PARTICIPATION OR VOTE BY THE PARTY INVOLVED IN THE CONFLICT OF INTEREST. UPON A CONFLICT OF INTEREST OCCURRING THAT WAS NOT DISCLOSED, THE INTERESTED PERSON MUST EXPLAIN THE FAILURE TO DISCLOSE THE ALLEGED CONFLICT. AFTER CONSIDERING THE EXPLANATION AND CONDUCTING ANY NECESSARY FURTHER INVESTIGATION, THE BOARD WILL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION THE BOARD OF TRUSTEES MET IN THE FIRST QUARTER FOR THE PURPOSE OF REVIEWING, DETERMINING AND ENDORSING COMPENSATION FOR THE NON-PRESIDENT AND CEO EXECUTIVES OF ALTARUM INSTITUTE, ALL IN CONSULTATION WITH AN INDEPENDENT COMPENSATION CONSULTANT (AND THE PRESIDENT AND CEO). THE BOARD EVALUATED THE REASONABLENESS OF THE AMOUNT AND CONFORMITY WITH ALTARUM INSTITUTE POLICIES AND PRIOR APPROVALS. REVIEW OF PRIOR YEAR TOTAL COMPENSATION ALSO OCCURRED AT THE FIRST QUARTER MEETING. THE FOLLOWING INFORMATION IS CONSIDERED AS PART OF THE DETERMINATION OF COMPENSATION: 1. CURRENT SALARY SURVEY INFORMATION COMPILED BY INDEPENDENT FIRMS: MERCER, TOWERS WATSON, PRM AND GUIDESTAR. 2. INDEPENDENT MARKET COMPENSATION DATA REPORT PREPARED BY AN INDEPENDENT COMPENSATION CONSULTANT (FY18, PEARL MEYER). 3. 13-FIRM NON-PROFIT PEER GROUP SELECTED BY THE AUDIT AND COMPENSATION COMMITTEE. 4. REVIEW OF EMPLOYEE PERFORMANCE EVALUATION DATA SUMMARIZED BY THE PRESIDENT AND CEO, FOR ALL NON-PRESIDENT AND CEO EXECUTIVES. FOR THE NON-PRESIDENT AND CEO EXECUTIVES, AFTER DISCUSSION, ALL MEMBERS OF THE BOARD VOTE ON THE COMPENSATION RECOMMENDED AND PRESENTED. IF THE BOARD DETERMINES THE COMPENSATION PACKAGES PRESENTED ARE REASONABLE AND IN CONFORMITY WITH ALTARUM INSTITUTE POLICIES, THEN THE BOARD ENDORSES THE RECOMMENDATIONS. FOR THE PRESIDENT AND CEO, THE SAME INFORMATION IS CONSIDERED BY THE BOARD OF TRUSTEES FOR DETERMINATION OF COMPENSATION, AND IS DONE IN CONSULTATION WITH THE INDEPENDENT COMPENSATION CONSULTANT. THE BOARD REVIEWS AND EVALUATES THE PRESIDENT AND CEO'S PERFORMANCE, AND DETERMINES AND APPROVES THE COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 PROCESS FOR MAKING DOCUMENTS AVAILABLE TO THE PUBLIC: ALL AVAILABLE UPON REQUEST FORM 990, PART IX, LINE 11G SUBCONTRACT FEES: PROGRAM SERVICE EXPENSES 6,523,649. MANAGEMENT AND GENERAL EXPENSES 3,993,826. FUNDRAISING EXPENSES 390,499. TOTAL EXPENSES 10,907,974. CONSULTING: PROGRAM SERVICE EXPENSES 312,659. MANAGEMENT AND GENERAL EXPENSES 191,412. FUNDRAISING EXPENSES 18,715. TOTAL EXPENSES 522,786. WORK ORDER LABOR: PROGRAM SERVICE EXPENSES 317,371. MANAGEMENT AND GENERAL EXPENSES 194,297. FUNDRAISING EXPENSES 18,997. TOTAL EXPENSES 530,665. HONORARIA/ INCENTIVES: PROGRAM SERVICE EXPENSES 4,193. MANAGEMENT AND GENERAL EXPENSES 2,567. FUNDRAISING EXPENSES 251. TOTAL EXPENSES 7,011. FORM 990, PART XI, LINE 9: INCOME FROM SUBSIDIARIES 720,101. FORM 990, PART XII, LINE 3B REQUIRED AUDIT SINGLE AUDIT COMPLETED IN ACCORDANCE WITH UNIFORM GUIDANCE FORM 990, PART VII, SECTION A MR. FISH'S EMPLOYER, FLETCHER SPAGHT, INC., REQUIRED HIM TO FORGO THE TRUSTEE FEES REPORTED IN PART VII, SECTION A IN ORDER TO SERVE ON ALTARUM INSTITUTE'S BOARD. FLETCHER SPAGHT, INC. HAS DONE BUSINESS WITH ALTARUM INSTITUTE IN THE PAST, AND ITS CONFLICT OF INTEREST POLICY PROHIBITED MR. FISH FROM RECEIVING ANY TRUSTEE FEES DIRECTLY IF HE WANTED TO SERVE ON THE ALTARUM INSTITUTE BOARD. MR. FISH ENTERED INTO AN AGREEMENT WITH ALTARUM INSTITUTE WHEREBY HE DIRECTED THAT THE TRUSTEE FEES BE PAID DIRECTLY TO FLETCHER SPAGHT, INC. INSTEAD. MR. FISH CEASED EMPLOYMENT WITH FLETCHER SPAGHT IN FEBRUARY 2019, EFFECTIVELY ENDING THIS AGREEMENT; SUBSEQUENT TO HIS DEPARTURE, ANY TRUSTEE FEES EARNED WERE PAID DIRECTLY TO MR. FISH. FOR PURPOSES OF FULL DISCLOSURE, THE FEES ARE REPORTED IN PART VII, SECTION A AS IF PAID TO HIM DIRECTLY. FEDERAL CONSULTING ASSET MANAGEMENT INC 3520 GREEN COURT SUITE 300 ANN ARBOR MI 48105 383609582 HOLDING CO. MI N/A C 1156727 19508421 1.00000 1 KAI RESEARCH INC 11300 ROCKVILLE PIKE SUITE 500 ROCKVILLE MD 20852 521485172 HEALTH SERVICES MD FCAM C -436628 1 PALLADIAN PARTNERS INC 8484 GEORGIA AVENUE SUITE 400 SILVER SPRING MD 20910 521974660 HEALTH COMMUNICATION SERVICES MD FCAM C 425562 17750403 1.00000 1 PAYFORMANCE SOLUTIONS INC 330 NORTH WABASH AVENUE CHICAGO IL 60611 821173573 SOFTWARE TECHNOLOGY IL FCAM C -2140569 377406 1.00000 1 1 0 0 0 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 FEDERAL CONSULTING ASSET MANAGEMENT Q 1505093 COST FEDERAL CONSULTING ASSET MANAGEMENT L 207513 COST FEDERAL CONSULTING ASSET MANAGEMENT A 13079 COST FEDERAL CONSULTING ASSET MANAGEMENT F 1500000 COST KAI RESEARCH INC L 201201 COST KAI RESEARCH INC M 46 COST KAI RESEARCH INC P 7914 COST KAI RESEARCH INC Q 657278 COST PALLADIAN PARTNERS INC L 209907 COST PALLADIAN PARTNERS INC M 107135 COST PALLADIAN PARTNERS INC P 74641 COST PALLADIAN PARTNERS INC Q 2917688 COST PAYFORMANCE SOLUTIONS INC M 427237 COST PAYFORMANCE SOLUTIONS INC Q 766475 COST PAYFORMANCE SOLUTIONS INC A 25751 COST